126
is further amended by adding at the end the following new
subsection:
‘‘(f) POINT OF ORDER REGARDING EMERGENCY RE-
SERVE FUND.—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 section
301(a)(4) for emergency reserve fund.’’.
(b) TECHNICAL AMENDMENT.—(1) Section 904(c)(1) of
the Congressional Budget Act of 1974 is amended by insert-
ing ‘‘305(e), 305(f),’’ after ‘‘305(c)(4),’’.
(2) Section 904(d)(2) of the Congressional Budget Act
of 1974 is amended by inserting ‘‘305(e), 305(f),’’ after
‘‘305(c)(4),’’.
SEC. 210. EFFECTIVE DATE.
The amendments made by this title shall apply to fis-
cal year 2001 and subsequent fiscal years, but such amend-
ments shall take effect only after the enactment of legislation
changing or extending for any fiscal year the discretionary
spending limits set forth in section 251 of the Balanced
Budget and Emergency Deficit Control Act of 1985 or legis-
lation reducing the amount of any sequestration under sec-
tion 252 of such Act by the amount of any reserve for any
emergencies.
127
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 Represent-
atives to include budget compliance statements in re-
ports accompanying all legislation; and
(3) require committees of the House of Represent-
atives to justify the need for waivers of the Congres-
sional 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(b)(1)) is further
amended—
(1) in paragraph (1), by striking ‘‘(A)’’ and by
redesignating subparagraph (B) as paragraph (2)
128
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(b)(1)).
Subtitle B—Compliance with
Budget Resolution
SEC. 321. BUDGET COMPLIANCE STATEMENTS.
Clause 3(d) of rule XIII of the Rules of the House of
Representatives is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(4) 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 include assessment by such chairman as
to whether the bill or joint resolution complies with
the requirements of sections 302, 303, 306, 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 Bal-
anced Budget and Emergency Deficit Control Act of
1985, as applicable.’’.
129
Subtitle C—Justification for Budget
Act Waivers
SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN
THE HOUSE OF REPRESENTATIVES.
Clause 6 of rule XIII of the Rules of the House of Rep-
resentatives is amended by adding at the end the following
new paragraph:
‘‘(h) It shall not be in order to consider any resolution
from the Committee on Rules for the consideration of any
reported bill or joint resolution which waives section 302,
303, 311, or 401 of the Congressional Budget Act of 1974,
unless the report accompanying such resolution includes a
description of the provision proposed to be waived, an iden-
tification of the section being waived, the reasons why such
waiver should be granted, and an estimated cost of the pro-
visions 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,’’ before
‘‘and submit’’.
130
(2) In paragraph (1), strike ‘‘bill or resolution’’
and insert ‘‘bill, joint resolution, or conference re-
port’’.
(3) At the end of paragraph (2) strike ‘‘and’’, at
the end of paragraph (3) strike the period and insert
‘‘; and’’, and after such paragraph (3) add the fol-
lowing new paragraph:
‘‘(4) A determination of whether such bill, joint
resolution, or conference report provides direct spend-
ing.’’.
(b) The second sentence of section 402 of the Congres-
sional Budget Act of 1974 is amended by inserting before
the period the following: ‘‘, or in the case of a conference
report, shall be included in the joint explanatory statement
of managers accompanying such conference report if timely
submitted before such report is filed’’.
TITLE IV—ACCOUNTABILITY FOR
FEDERAL SPENDING
SEC. 401. PURPOSES.
The purposes of this title are to—
(1) require committees to develop a schedule for
reauthorizing all programs within their jurisdictions;
(2) facilitate amendments to subject new entitle-
ment programs to annual discretionary appropria-
tions;
131
(3) require the Committee on the Budget to jus-
tify any allocation to an authorizing committee for
legislation that would not be subject to annual discre-
tionary 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 direct spending program that does not
expire 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—Limitations on Direct
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) LIMITATION ON DIRECT SPENDING.—It shall not
be in order in the House of Representatives or in the Senate
to consider a bill or joint resolution, or an amendment, mo-
tion, or conference report that provides direct spending for
132
a new program, unless such spending is limited to a period
of 10 or fewer fiscal years.’’;
(2) by redesignating subsection (c) as subsection
(b) and by striking ‘‘Subsections (a) and (b) each
place it appears and inserting ‘‘Subsection (a)’’ in
such redesignated subsection (b); and
(3) by amending the section heading to read as
follows:
‘‘FIXED-YEAR AUTHORIZATIONS REQUIRED FOR DIRECT
SPENDING’’.
(b) CONFORMING AMENDMENT.—The item relating to
section 401 in the table of contents set forth in section 1(b)
of the Congressional Budget and Impoundment Control Act
of 1974 is amended to read as follows:
‘‘Sec. 401. Fixed-year authorizations required for direct spending.’’.
(c) LIMITATION
ON
AUTHORIZATION
OF
DISCRE-
TIONARY APPROPRIATIONS.—Rule XXI of the Rules of the
House of Representatives is amended by adding at the end
the following new clause:
‘‘6. It shall not be in order to consider any bill, joint
resolution, amendment, or conference report that authorizes
the appropriation of new budget authority (as defined in
section 3(2)(C) of the Congressional Budget and Impound-
ment Control Act of 1974) for a new program, unless such
authorization is specifically provided for a period of 10 or
fewer fiscal years.’’.
133
SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPEND-
ING TO ANNUAL APPROPRIATIONS.
(a) HOUSE PROCEDURES.—Clause 5 of rule XVIII of
the Rules of the House of Representatives is amended by
adding at the end the following new paragraph:
‘‘(c)(1) In the Committee of the Whole, an amendment
only to subject a new program which provides direct spend-
ing to discretionary appropriations, if offered by the chair-
man of the Committee on the Budget (or his designee) or
the chairman of the Committee of Appropriations (or his
designee), may be precluded from consideration only by the
specific terms of a special order of the House. Any such
amendment, if offered, shall be debatable for twenty minutes
equally divided and controlled by the proponent of the
amendment and a Member opposed and shall not be subject
to amendment.
‘‘(2) As used in subparagraph (1), the term ‘direct
spending’ has the meaning given such term in section 3(11)
of the Congressional Budget and Impoundment Control Act
of 1974.’’.
(b) ADJUSTMENT OF DISCRETIONARY SPENDING LIM-
ITS FOR DISCRETIONARY APPROPRIATIONS OFFSET BY DI-
RECT SPENDING SAVINGS.—
(1) PURPOSE.—The purpose of the amendments
made by this subsection is to hold the discretionary
spending limits and the allocations made to the Com-
134
mittee on Appropriations under section 302(a) of the
Congressional Budget Act of 1974 harmless for legis-
lation that offsets a new discretionary program with
a designated reduction in direct spending.
(2) DESIGNATING DIRECT SPENDING 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 legis-
lation is enacted that—
‘‘(1) decreases direct spending for any fiscal
year; and
‘‘(2) is designated as an offset pursuant to this
subsection and such designation specifically identifies
an authorization of discretionary appropriations
(contained in such legislation) for a new program,
then the reductions in new budget authority and outlays
in all fiscal years resulting from that provision shall be des-
ignated as an offset in the reports required under subsection
(d).’’.
(3) EXEMPTING
SUCH
DESIGNATED
DIRECT
SPENDING SAVINGS FROM PAYGO SCORECARD.—Sec-
tion 252(d)(4) of the Balanced Budget and Emer-
135
gency Deficit Control Act of 1985 (as amended by sec-
tion 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 (as
amended by section 202(a)(2)) is further amended by
adding at the end the following new subparagraph:
‘‘(G) DISCRETIONARY AUTHORIZATION OFF-
SETS.—If an Act other than an appropriation
Act includes any provision reducing direct
spending and specifically identifies any such
provision as an offset pursuant to section 252(e),
the adjustments shall be an increase in the dis-
cretionary spending limits for budget authority
and outlays in each fiscal year equal to the
amount of the budget authority and outlay re-
ductions, respectively, achieved by the specified
offset in that fiscal year, except that the adjust-
ments for the budget year in which the offsetting
provision takes effect shall not exceed the amount
of discretionary new budget authority provided
for the new program (authorized in that Act) in
136
an Act making discretionary appropriations and
the outlays flowing therefrom.’’.
(5) ADJUSTMENT
IN
APPROPRIATION
COMMIT-
TEE’S ALLOCATIONS.—Section 314(b) of the Congres-
sional Budget Act of 1974 (as amended by section
202(d)) is further amended by striking ‘‘; or’’ at the
end of paragraph (4), by striking the period and in-
serting ‘‘; or’’ at the end of paragraph (5), and by
adding at the end the following new paragraph:
‘‘(6) the amount provided in an Act making dis-
cretionary appropriations for the program for which
an offset was designated pursuant to section 252(e) of
the Balanced Budget and Emergency Deficit Control
Act of 1985 and any outlays flowing therefrom, but
not to exceed the amount of the designated decrease in
direct spending for that year for that program in a
prior law.’’.
(6) ADJUSTMENT IN AUTHORIZING COMMITTEE’S
ALLOCATIONS.—Section 314 of the Congressional
Budget Act of 1974 is amended by adding at the end
the following new subsection:
‘‘(f) ADJUSTMENT IN AUTHORIZING COMMITTEE’S AL-
LOCATIONS BY AMOUNT OF DIRECT SPENDING OFFSET.—
After the reporting of a bill or joint resolution (by a com-
mittee other than the Committee on Appropriations), or the
137
offering of an amendment thereto or the submission of a
conference report thereon, that contains a provision that de-
creases direct spending for any fiscal year and that is des-
ignated as an offset pursuant to section 252(e) of the Bal-
anced 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 Responsibilities
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 inserting the fol-
lowing new subdivision:
‘‘(B) provide in its plans a specific timetable for
its review of those laws, programs, or agencies within
its jurisdiction, including those that operate under
permanent budget authority or permanent statutory
authority.’’.
(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—
138
(1) by striking subparagraph (2); and
(2) by redesignating subparagraphs (3) and (4)
as subparagraphs (2) and (3) and by striking ‘‘from
time to time’’ and inserting ‘‘at least once each Con-
gress’’ in subparagraph (2) (as redesignated).
(c) CONFORMING AMENDMENT.—Clause 4(e)(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 (as amended by section
104(a)) is further amended by adding at the end the fol-
lowing new paragraph:
‘‘(5) JUSTIFICATION OF CERTAIN SPENDING AL-
LOCATIONS.—The joint explanatory statement accom-
panying a conference report on a joint resolution on
the budget that includes any allocation to a com-
mittee (other than the Committee on Appropriations)
of levels in excess of current law levels shall set forth
a justification for not subjecting any program,
project, or activity (for which the allocation is made)
to annual discretionary appropriation.’’.
139
(b) PRESIDENTS’ BUDGET
SUBMISSIONS.—Section
1105(a) of title 31, United States Code, is amended by add-
ing at the end the following new paragraph:
‘‘(33) a justification for not subjecting each pro-
posed new direct spending program, project, or activ-
ity to discretionary appropriations.’’.
(c) COMMITTEE JUSTIFICATION FOR DIRECT SPEND-
ING.—Clause 4(e)(2) of rule X of the Rules of the House
of Representatives is amended by inserting before the period
the following: ‘‘, and will provide specific information in
any report accompanying such bills and joint resolutions
to the greatest extent practicable to justify why the pro-
grams, projects, and activities involved would not be subject
to annual appropriation’’.
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
140
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 during
that Congress.’’.
SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET
PROCESS REFORMS.
Section 703 of the Congressional Budget Act of 1974
is amended as follows:
(1) In subsection (a), strike ‘‘and’’ at the end of
paragraph (3), strike the period at the end of para-
graph (4) and insert ‘‘; and’’, and at the end add the
following new paragraph:
‘‘(5) evaluating whether existing programs,
projects, and activities should be subject to discre-
tionary appropriations.’’.
141
(2) In subsection (b), strike ‘‘from time to time’’
and insert ‘‘during the One Hundred Sixth Con-
gress’’.
(3) Add at the end the following new subsection:
‘‘(d) The Committee on the Budget of each House shall
establish guidelines for subjecting new or expanded pro-
grams, projects, and activities to annual appropriation and
recommend any necessary changes in statutory enforcement
mechanisms and scoring conventions to effectuate such
changes.’’.
SEC. 425. GAO REPORTS.
The last sentence of section 404 of the Congressional
Budget Act of 1974 is amended to read as follows: ‘‘Such
report shall be revised at least once every five years and
shall be transmitted to the chairman and ranking minority
member of each committee of the House of Representatives
and the Senate.’’.
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’’.
142
(b) ANALYSIS BY CBO.—Section 402(1) of the Congres-
sional Budget Act of 1974 is amended by striking ‘‘4’’ and
inserting ‘‘nine’’.
(c) COST ESTIMATES.—Clause 3(d)(2)(A) 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 XXIII OF THE RULES OF THE
HOUSE OF REPRESENTATIVES.
Rule XXIII 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 in-
surance programs;
(2) improve congressional control of those costs;
and
(3) periodically report on long-term budgetary
trends.
143
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 TREAT-
MENT OF FEDERAL INSUR-
ANCE PROGRAMS
‘‘SEC. 601. SHORT TITLE.
‘‘This title may be cited as the ‘Federal Insurance
Budgeting Act of 1999’.
‘‘SEC. 602. BUDGETARY TREATMENT.
‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal
year 2006, the budget of the Government pursuant to section
1105(a) of title 31, United States Code, shall be based on
the risk-assumed cost of Federal insurance programs.
‘‘(b) BUDGET ACCOUNTING.—For any Federal 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—
144
‘‘(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 necessary to
pay insurance program administrative costs;
‘‘(3) a negative risk-assumed cost shall be trans-
ferred from the financing account to the program ac-
count, and shall be transferred from the program ac-
count to the general fund; and
‘‘(4) all payments by or receipts of the financing
accounts shall be treated in the budget as a means of
financing.
‘‘(c) 
APPROPRIATIONS
REQUIRED.—(1) 
Notwith-
standing any other provision of law, insurance commit-
ments may be made for fiscal year 2006 and thereafter only
to the extent that new budget authority to cover their risk-
assumed cost is provided in advance in an appropriation
Act.
‘‘(2) An outstanding insurance commitment shall not
be modified in a manner that increases its risk-assumed
cost unless budget authority for the additional cost has been
provided in advance.
‘‘(3) Paragraph (1) shall not apply to Federal insur-
ance programs that constitute entitlements.
145
‘‘(d) REESTIMATES.—The risk-assumed cost for a fis-
cal year shall be reestimated in each subsequent year. Such
reestimate can equal zero. In the case of a positive reesti-
mate, the amount of the reestimate shall be paid from the
program account to the financing account. In the case of
a negative reestimate, the amount of the reestimate shall
be paid from the financing account to the program account,
and shall be transferred from the program account to the
general fund. Reestimates shall be displayed as a distinct
and separately identified subaccount in the program ac-
count.
‘‘(e) ADMINISTRATIVE EXPENSES.—All funding for an
agency’s administration of a Federal insurance program
shall be displayed as a distinct and separately identified
subaccount in the program account.
‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL
BUDGETING FOR FEDERAL INSURANCE PRO-
GRAMS.
‘‘(a) AGENCY REQUIREMENTS.—Agencies with respon-
sibility for Federal insurance programs shall develop mod-
els 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 an-
nual projected risk-assumed costs to OMB with their budget
requests each year starting with the request for fiscal year
146
2002. Agencies will likewise provide OMB with annual esti-
mates of modifications, if any, and reestimates of program
costs.
‘‘(b) DISCLOSURE.—When the President submits a
budget of the Government pursuant to section 1105(a) of
title 31, United States Code, for fiscal year 2002, OMB shall
publish a notice in the Federal Register advising interested
persons of the availability of information describing the
models, data (including sources), and critical assumptions
(including explicit or implicit discount rate assumptions)
that it or other executive branch entities would use to esti-
mate the risk-assumed cost of Federal insurance programs
and giving such persons an opportunity to submit com-
ments. At the same time, the chairman of the Committee
on the Budget shall publish a notice for CBO in the Federal
Register advising interested persons of the availability of
information describing the models, data (including sources),
and critical assumptions (including explicit or implicit dis-
count rate assumptions) that it would use to estimate the
risk-assumed cost of Federal insurance programs and giv-
ing such interested persons an opportunity to submit com-
ments.
‘‘(c) REVISION.—(1) After consideration of comments
pursuant to subsection (b), and in consultation with the
Committees on the Budget of the House of Representatives
147
and the Senate, OMB and CBO shall revise the models,
data, and major assumptions they would use to estimate
the risk-assumed cost of Federal insurance programs.
‘‘(2) When the President submits a budget of the Gov-
ernment pursuant to section 1105(a) of title 31, United
States Code, for fiscal year 2003, OMB shall publish a no-
tice in the Federal Register advising interested persons of
the availability of information describing the models, data
(including sources), and critical assumptions (including ex-
plicit or implicit discount rate assumptions) that it or other
executive branch entities used to estimate the risk-assumed
cost of Federal insurance programs.
‘‘(d) DISPLAY.—
‘‘(1) IN GENERAL.—For fiscal years 2003, 2004,
and 2005 the budget submissions of the President pur-
suant to section 1105(a) of title 31, United States
Code, and CBO’s reports on the economic and budget
outlook pursuant to section 202(e)(1) and the Presi-
dent’s budgets, shall for display purposes only, esti-
mate the risk-assumed cost of existing or proposed
Federal insurance programs.
‘‘(2) OMB.—The display in the budget submis-
sions of the President for fiscal years 2003, 2004, and
2005 shall include—
148
‘‘(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 Federal
insurance programs.
‘‘(3) CBO.—In the second session of the 107th
Congress and the 108th Congress, CBO shall include
in its estimates under section 308, for display pur-
poses only, the risk-assumed cost of existing Federal
insurance programs, or legislation that CBO, in con-
sultation with the Committees on the Budget of the
House of Representatives and the Senate, determines
would create a new Federal insurance program.
‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—(1) Not
later than 6 months after the budget submission of the
President pursuant to section 1105(a) of title 31, United
States Code, for fiscal year 2005, OMB, CBO, and GAO
shall each submit to the Committees on the Budget of the
House of Representatives and the Senate a report that eval-
uates the advisability and appropriate implementation of
this title.
149
‘‘(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.
150
‘‘(H) The advisability of including each of the
programs currently estimated on a risk-assumed cost
basis in the Federal budget on that basis.
‘‘SEC. 604. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1) The term ‘Federal insurance program’
means a program that makes insurance commitments
and includes the list of such programs included in the
joint explanatory statement of managers accom-
panying the conference report on the Comprehensive
Budget Process Reform Act of 1999.
‘‘(2) The term ‘insurance commitment’ means an
agreement in advance by a Federal agency to indem-
nify a nonfederal entity against specified losses. This
term does not include loan guarantees as defined in
title V or benefit programs such as social security,
medicare, and similar existing social insurance pro-
grams.
‘‘(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—
151
‘‘(i) expected claims payments inherent in
the Government’s commitment;
‘‘(ii) net premiums (expected premium col-
lections received from or on behalf of the insured
less expected administrative expenses);
‘‘(iii) expected recoveries; and
‘‘(iv) expected changes in claims, premiums,
or recoveries resulting from the exercise by the
insured of any option included in the insurance
commitment.
‘‘(C) The cost of a modification is the difference
between the current estimate of the net present value
of the remaining cash flows under the terms of the in-
surance commitment, and the current estimate of the
net present value of the remaining cash flows under
the terms of the insurance commitment as modified.
‘‘(D) The cost of a reestimate is the difference be-
tween the net present value of the amount currently
required by the financing account to pay estimated
claims and other expenditures and the amount cur-
rently available 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.
152
‘‘(E) For purposes of this definition, expected ad-
ministrative 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 pay-
ing all costs of administering the insurance program,
and is the account from which the risk-assumed cost
is disbursed to the financing account.
‘‘(5) The term ‘financing account’ means the
nonbudget account that is associated with each 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 Govern-
ment action that alters the risk-assumed cost of an ex-
isting insurance commitment from the current esti-
mate of cash flows. This includes any action resulting
from new legislation, or from the exercise of adminis-
trative discretion under existing law, that directly or
153
indirectly alters the estimated cost of existing insur-
ance commitments.
‘‘(7) The term ‘model’ means any actuarial, fi-
nancial, econometric, probabilistic, or other method-
ology used to estimate the expected frequency and
magnitude of loss-producing events, expected pre-
miums or collections from or on behalf of the insured,
expected recoveries, and administrative expenses.
‘‘(8) The term ‘current’ has the same meaning as
in section 250(c)(9) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
‘‘(9) The term ‘OMB’ means the Director of the
Office of Management and Budget.
‘‘(10) The term ‘CBO’ means the Director of the
Congressional Budget Office.
‘‘(11) The term ‘GAO’ means the Comptroller
General of the United States.
‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS;
ACTUARIAL COST ACCOUNT.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated $600,000 for each of fiscal
years 2000 through 2005 to the Director of the Office of
Management and Budget and each agency responsible for
administering a Federal program to carry out this title.
154
‘‘(b) TREASURY TRANSACTIONS WITH THE FINANCING
ACCOUNTS.—The Secretary of the Treasury shall borrow
from, receive from, lend to, or pay the insurance financing
accounts such amounts as may be appropriate. The Sec-
retary of the Treasury may prescribe forms and denomina-
tions, maturities, and terms and conditions for the trans-
actions described above. The authorities described above
shall not be construed to supersede or override the authority
of the head of a Federal agency to administer and operate
an insurance program. All the transactions provided in this
subsection shall be subject to the provisions of subchapter
II of chapter 15 of title 31, United States Code. Cash bal-
ances of the financing accounts in excess of current require-
ments shall be maintained in a form of uninvested funds,
and the Secretary of the Treasury shall pay interest on these
funds.
‘‘(c) APPROPRIATION
OF AMOUNT NECESSARY TO
COVER RISK-ASSUMED COST OF INSURANCE COMMITMENTS
AT TRANSITION DATE.—(1) A financing account is estab-
lished on September 30, 2005, for each Federal insurance
program.
‘‘(2) There is appropriated to each financing account
the amount of the risk-assumed cost of Federal insurance
commitments outstanding for that program as of the close
of September 30, 2005.
155
‘‘(3) These financing accounts shall be used in imple-
menting the budget accounting required by this title.
‘‘SEC. 606. EFFECTIVE DATE.
‘‘(a) IN GENERAL.—This title shall take effect imme-
diately and shall expire on September 30, 2007.
‘‘(b) SPECIAL RULE.—If this title is not reauthorized
by September 30, 2007, then the accounting structure and
budgetary treatment of Federal insurance programs shall
revert to the accounting structure and budgetary treatment
in effect immediately before the date of enactment of this
title.’’.
(b) CONFORMING AMENDMENT.—The table of contents
set forth in section 1(b) of the Congressional Budget and
Impoundment Control Act of 1974 is amended by inserting
after the item relating to section 507 the following new
items:
‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL INSURANCE
PROGRAMS
‘‘Sec. 601. Short title.
‘‘Sec. 602. Budgetary treatment.
‘‘Sec. 603. Timetable for implementation of accrual budgeting for Federal 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),
156
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 fis-
cal year, of the estimated levels of total new budget
authority and total budget outlays, estimated reve-
nues, estimated surpluses and deficits, and, for social
security, medicare, medicaid, and all other direct
spending, estimated levels of total new budget author-
ity and total budget outlays; and a specification of its
underlying assumptions and a sensitivity analysis of
factors that have a significant effect on the projections
made in each analysis; and a comparison of the ef-
fects of each of the two analyses on the economy, in-
cluding such factors as inflation, foreign investment,
interest rates, and economic growth.’’.
(b) CBO REPORTS.—Section 202(e)(1) of the Congres-
sional Budget Act of 1974 is amended by adding at the
end the following new sentences: ‘‘Such report shall also in-
clude 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 au-
thority and total budget outlays, estimated revenues, esti-
157
mated surpluses and deficits, and, for social security, medi-
care, medicaid, and all other direct spending, estimated lev-
els of total new budget authority and total budget outlays.
The report described in the preceding sentence shall also
specify its underlying assumptions and set forth a sensi-
tivity analysis of factors that have a significant effect on
the projections made in the report.’’.
TITLE VI—BASELINES, BYRD
RULE, AND LOCK-BOX
SEC. 601. PURPOSE.
The purposes of this title are to—
(1) require budgetary comparisons to prior year
levels;
(2) restrict the application of the Byrd rule to
measures other than conference reports; and
(3) establish a procedure to allow savings from
spending cuts in appropriation measures to be locked-
in to increase the surplus or reduce the deficit.
Subtitle A—The Baseline
SEC. 611. THE PRESIDENT’S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31, United
States Code, is amended to read as follows:
‘‘(5) except as provided in subsection (b) of this
section, estimated expenditures and appropriations
for the current year and estimated expenditures and
158
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 cur-
rent year to the fiscal year for which the budget is
submitted for estimated expenditures and for appro-
priations.’’.
(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 9 fiscal years after the fiscal year for
which the budget is submitted.’’.
159
(c) Section 1105(a)(12) of title 31, United States Code,
is amended to read as follows:
‘‘(12) for each proposal in the budget for legisla-
tion that would establish or expand a Government ac-
tivity or function, a table showing—
‘‘(A) the amount proposed in the budget for
appropriation and for expenditure because of the
proposal in the fiscal year for which the budget
is submitted;
‘‘(B) the estimated appropriation required
because of the proposal for each of the 4 fiscal
years after that year that the proposal will be in
effect; and
‘‘(C) the estimated amount for the same ac-
tivity or function, if any, in the current fiscal
year,
and, except for detailed budget estimates, the percent-
age change (in the case of each category referred to in
subparagraphs (A), (B), and (C)) between the current
year and the fiscal year for which the budget is sub-
mitted.’’.
(d) Section 1105(a)(18) of title 31, United States Code,
is amended by inserting ‘‘new budget authority and’’ before
‘‘budget outlays’’.
160
(e) Section 1105(a) of title 31, United States Code, (as
amended by sections 412(b) and 521(a)) is further amended
by adding at the end the following new paragraphs:
‘‘(35) a comparison of levels of estimated expend-
itures and proposed appropriations for each function
and subfunction in the current fiscal year and the fis-
cal year for which the budget is submitted, along with
the proposed increase or decrease of spending in per-
centage terms for each function and subfunction.
‘‘(36) a table on sources of growth in total direct
spending under current law and as proposed in this
budget submission for the budget year and the ensuing
9 fiscal years, which shall include changes in outlays
attributable to the following: cost-of-living adjust-
ments; changes in the number of program recipients;
increases in medical care prices, utilization and in-
tensity of medical care; and residual factors.’’.
(f) Section 1109(a) of title 31, United States Code, is
amended by inserting after the first sentence the following
new sentence: ‘‘For discretionary spending, these estimates
shall assume the levels set forth in the discretionary spend-
ing limits under section 251(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as adjusted, for the
appropriate fiscal years (and if no such limits are in effect,
161
these estimates shall assume the adjusted levels for the most
recent fiscal year for which such levels were in effect).’’.
SEC. 612. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budget Act of 1974
(as amended by section 103) is further amended—
(1) in paragraph (1), by inserting at the end the
following: ‘‘The basis of deliberations in developing
such joint resolution shall be the estimated budgetary
levels for the preceding fiscal year. Any budgetary lev-
els pending before the committee and the text of the
joint resolution shall be accompanied by a document
comparing such levels or such text to the estimated
levels of the prior fiscal year. Any amendment offered
in the committee that changes a budgetary level and
is based upon a specific policy assumption for a pro-
gram, project, or activity shall be accompanied by a
document indicating the estimated amount for such
program, project, or activity in the current year.’’;
and
(2) in paragraph (2), by striking ‘‘and’’ at the
end of subparagraph (H) (as redesignated), by strik-
ing the period and inserting ‘‘; and’’ at the end of
subparagraph (I) (as redesignated), and by adding at
the end the following new subparagraph:
162
‘‘(J) a comparison of levels for the current
fiscal year with proposed spending and revenue
levels for the subsequent fiscal years along with
the proposed increase or decrease of spending in
percentage terms for each function.’’.
SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO
COMMITTEES.
(a) The first sentence of section 202(e)(1) of the Con-
gressional Budget Act of 1974 is amended by inserting
‘‘compared to comparable levels for the current year’’ before
the comma at the end of subparagraph (A) and before the
comma at the end of subparagraph (B).
(b) Section 202(e)(1) of the Congressional Budget Act
of 1974 is amended by inserting after the first sentence the
following new sentence: ‘‘Such report shall also include a
table on sources of spending growth in total direct spending
for the budget year and the ensuing 4 fiscal years, which
shall include changes in outlays attributable to the fol-
lowing: cost-of-living adjustments; changes in the number
of program recipients; increases in medical care prices, uti-
lization and intensity of medical care; and residual fac-
tors.’’.
(c) Section 308(a)(1)(B) of the Congressional Budget
Act of 1974 is amended by inserting ‘‘and shall include a
163
comparison of those levels to comparable levels for the cur-
rent fiscal year’’ before ‘‘if timely submitted’’.
SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY
SPENDING.
For purposes of chapter 11 of title 31 of the United
States Code, or the Congressional Budget Act of 1974, unless
otherwise expressly provided, in making budgetary projec-
tions for years for which there are no discretionary spend-
ing limits, the Director of the Office of Management and
Budget and the Director of the Congressional Budget Office
shall assume discretionary spending levels at the levels for
the last fiscal year for which such levels were in effect.
Subtitle B—The Byrd Rule
SEC. 621. LIMITATION ON BYRD RULE.
(a) PROTECTION OF CONFERENCE REPORTS.—Section
313 of the Congressional Budget Act of 1974 is amended—
(1) in subsection (c), by striking ‘‘and again
upon the submission of a conference report on such a
reconciliation bill or resolution,’’;
(2) by striking subsection (d);
(3) by redesignating subsection (e) as subsection
(d); and
(4) in subsection (e), as redesignated—
164
(A) by striking ‘‘, motion, or conference re-
port’’ the first place it appears and inserting ‘‘,
or motion’’; and
(B) by striking ‘‘, motion, or conference re-
port’’ the second and third places it appears and
inserting ‘‘or motion’’.
(b) CONFORMING AMENDMENT.—The first sentence of
section 312(e) of the Congressional Budget Act of 1974 is
amended by inserting ‘‘, except for section 313,’’ after
‘‘Act’’.
Subtitle C—Spending
Accountability Lock-box
SEC. 631. SHORT TITLE.
This subtitle may be cited as the ‘‘Spending Account-
ability Lock-box Act of 1999’’.
SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.
(a) ESTABLISHMENT OF LEDGER.—Title III of the
Congressional Budget Act of 1974 (as amended by sections
104(c) and 206(a)) is further amended by adding after sec-
tion 317 the following new section:
‘‘SPENDING ACCOUNTABILITY LOCK-BOX LEDGER
‘‘SEC. 318. (a) ESTABLISHMENT OF LEDGER.—The
chairman of the Committee on the Budget of the House of
Representatives and the chairman on the Committee on the
Budget of the Senate shall each maintain a ledger to be
known as the ‘Spending Accountability Lock-box Ledger’.
165
The Ledger shall be divided into entries corresponding to
the subcommittees of the Committees on Appropriations.
Each entry shall consist of three components: the ‘House
Lock-box Balance’; the ‘Senate Lock-box Balance’; and the
‘Joint House-Senate Lock-box Balance’.
‘‘(b) COMPONENTS OF LEDGER.—Each component in
an entry shall consist only of amounts credited to it under
subsection (c). No entry of a negative amount shall be made.
‘‘(c) CREDIT OF AMOUNTS TO LEDGER.—(1) In the
House of Representatives or the Senate, whenever a Member
offers an amendment to an appropriation bill to reduce new
budget authority in any account, that Member may state
the portion of such reduction that shall be—
‘‘(A) credited to the House or Senate Lock-box
Balance, as applicable; or
‘‘(B) used to offset an increase in new budget au-
thority in any other account;
‘‘(C) allowed to remain within the applicable
section 302(b) suballocation.
If no such statement is made, the amount of reduction in
new budget authority resulting from the amendment shall
be credited to the House or Senate Lock-box Balance, as
applicable, if the amendment is agreed to.
‘‘(2)(A) Except as provided by subparagraph (B), the
chairmen of the Committees on the Budget shall, upon the
166
engrossment of any appropriation bill by the House of Rep-
resentatives and upon the engrossment of Senate amend-
ments to that bill, credit to the applicable entry balance
of that House amounts of new budget authority and outlays
equal to the net amounts of reductions in new budget au-
thority and in outlays resulting from amendments agreed
to by that House to that bill.
‘‘(B) When computing the net amounts of reductions
in new budget authority and in outlays resulting from
amendments agreed to by the House of Representatives or
the Senate to an appropriation bill, the chairmen of the
Committees on the Budget shall only count those portions
of such amendments agreed to that were so designated by
the Members offering such amendments as amounts to be
credited to the House or Senate Lock-box Balance, as appli-
cable, or that fall within the last sentence of paragraph (1).
‘‘(3) The chairmen of the Committees on the Budget
shall, upon the engrossment of Senate amendments to any
appropriation bill, credit to the applicable Joint House-
Senate Lock-box Balance the amounts of new budget author-
ity and outlays equal to—
‘‘(A) an amount equal to one-half of the sum of
(i) the amount of new budget authority in the House
Lock-box Balance plus (ii) the amount of new budget
167
authority in the Senate Lock-box Balance for that
subcommittee; and
‘‘(B) an amount equal to one-half of the sum of
(i) the amount of outlays in the House Lock-box Bal-
ance plus (ii) the amount of outlays in the Senate
Lock-box Balance for that subcommittee.
‘‘(4) CALCULATION OF LOCK-BOX SAVINGS IN SEN-
ATE.—For purposes of calculating under this section the net
amounts of reductions in new budget authority and in out-
lays resulting from amendments agreed to by the Senate
on an appropriation bill, the amendments reported to the
Senate by its Committee on Appropriations shall be consid-
ered to be part of the original text of the bill.
‘‘(d) DEFINITION.—As used in this section, the term
‘appropriation bill’ means any general or special appro-
priation bill, and any bill or joint resolution making sup-
plemental, 
deficiency, 
or 
continuing 
appropriations
through the end of a fiscal year.
‘‘(e) TALLY DURING HOUSE CONSIDERATION.—The
chairman of the Committee on the Budget of the House of
Representatives shall maintain a running tally of the
amendments adopted reflecting increases and decreases of
budget authority in the bill as reported. This tally shall
be available to Members in the House of Representatives
168
during consideration of any appropriations bill by the
House.’’.
(b) CONFORMING AMENDMENT.—The table of contents
set forth in section 1(b) of the Congressional Budget and
Impoundment Control Act of 1974 is amended by inserting
after the item relating to section 317 the following new item:
‘‘Sec. 318. Spending accountability lock-box ledger.’’.
SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(a) AL-
LOCATIONS AND SECTION 302(b) SUBALLOCA-
TIONS.
(a) ALLOCATIONS.—Section 302(a) of the Congres-
sional Budget Act of 1974 (as amended by section 422) is
further amended by adding at the end the following new
paragraph:
‘‘(6) ADJUSTMENT OF ALLOCATIONS.—Upon the
engrossment of Senate amendments to any appropria-
tion bill (as defined in section 318(d)) for a fiscal
year, the amounts allocated under paragraph (1) to
the Committee on Appropriations of each House upon
the adoption of the most recent joint resolution on the
budget for that fiscal year shall be adjusted downward
by the amounts credited to the applicable Joint
House-Senate 
Lock-box 
Balance 
under 
section
318(c)(2). The revised levels of new budget authority
and outlays shall be submitted to each House by the
chairman of the Committee on the Budget of that
169
House and shall be printed in the Congressional
Record.’’.
(b) SUBALLOCATIONS.—Section 302(b) of the Congres-
sional Budget Act of 1974 is amended by adding at the
end the following new sentence: ‘‘Whenever an adjustment
is made under subsection (a)(6) to an allocation under that
subsection, the Committee on Appropriations of each House
shall make downward adjustments in the most recent sub-
allocations of new budget authority and outlays under this
subparagraph to the appropriate subcommittees of that
committee in the total amounts of those adjustments under
section 318(c)(2). The revised suballocations shall be sub-
mitted to each House by the chairman of the Committee
on Appropriations of that House and shall be printed in
the Congressional Record.’’.
SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.
Section 308(b)(1) of the Congressional Budget Act of
1974 is amended by adding at the end the following new
sentence: ‘‘Such reports shall also include an up-to-date tab-
ulation of the amounts contained in the ledger and each
entry established by section 318(a).’’.
SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY
SPENDING LIMITS.
The discretionary spending limits for new budget au-
thority and outlays for any fiscal year set forth in section
170
251(c) of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985, shall be reduced by the amounts set forth
in the final regular appropriation bill for that fiscal year
or joint resolution making continuing appropriations
through the end of that fiscal year. Those amounts shall
be the sums of the Joint House-Senate Lock-box Balances
for that fiscal year, as calculated under section 302(a)(6)
of the Congressional Budget Act of 1974. That bill or joint
resolution shall contain the following statement of law: ‘‘As
required by section 635 of the Spending Accountability
Lock-box Act of 1999, for fiscal year [insert appropriate
fiscal year] and each outyear, the adjusted discretionary
spending limit for new budget authority is reduced by $
[insert appropriate amount of reduction] and the adjusted
discretionary limit for outlays is reduced by $ [insert ap-
propriate amount of reduction] for the fiscal year and each
outyear.’’. Section 306 shall not apply to any bill or joint
resolution because of such statement. This adjustment shall
be reflected in reports under sections 254(f) and 254(g) of
the Balanced Budget and Emergency Deficit Control Act
of 1985.
171
Subtitle D—Automatic Continuing
Resolution
SEC. 641. AUTOMATIC CONTINUING RESOLUTION.
(a) AMENDMENT TO TITLE 31.—Chapter 13 of title 31,
United States Code, is amended by inserting after section
1310 the following new section:
‘‘§ 1311. Continuing appropriations
‘‘(a)(1) If any regular appropriation bill for a fiscal
year does not become law prior to the beginning of such
fiscal year and a joint resolution making continuing appro-
priations (other than pursuant to this subsection) is not
in effect, there is appropriated, out of any moneys in the
Treasury not otherwise appropriated, and out of applicable
corporate or other revenues, receipts, and funds, such sums
as may be necessary to continue any program, project, or
activity for which funds were provided in the preceding fis-
cal year—
‘‘(A) in the corresponding regular appropriation
Act for such preceding fiscal year; or
‘‘(B) if the corresponding regular appropriation
bill for such preceding fiscal year did not become law,
then in a joint resolution making continuing appro-
priations for such preceding fiscal year.
‘‘(2)(A) Except as provided by subparagraphs (B), (C),
and (D), appropriations and funds made available, and au-
172
thority granted, for a program, project, or activity for any
fiscal year pursuant to this section shall be at a rate of
operations not in excess of the rate of operations provided
for in the regular appropriation Act providing for such pro-
gram, project, or activity for the preceding fiscal year, or
in the absence of such an Act, the rate of operations pro-
vided for such program, project, or activity pursuant to a
joint resolution making continuing appropriations for such
preceding fiscal year.
‘‘(B) The applicable rate of operations for a program,
project, or activity for any fiscal year pursuant to this sec-
tion shall exclude amounts—
‘‘(i) for which any adjustment was made under
section 251(b)(2)(A) or section 252(e) of the Balanced
Budget and Emergency Deficit Control Act of 1985
before the date of enactment of this section;
‘‘(ii) provided for emergencies for which an ex-
emption from section 251 or 252 of such Act is grant-
ed under section 317(c) of the Congressional Budget
Act of 1974; or
‘‘(iii) for which any adjustment is made under
section 251(b)(2) (C) or (D) of such Act.
‘‘(C) The applicable rate of operations for a program,
project, or activity for any fiscal year pursuant to this sec-
tion shall include amounts provided and rescinded for such
173
program, project, or activity in any supplemental or special
appropriations Act and in any rescission bill for that year
that is enacted into law.
‘‘(D) The applicable rate of operations for a program,
project, or activity for any fiscal year pursuant to this sec-
tion shall be reduced by the amount of budgetary resources
cancelled in any such program, project, or activity resulting
from the prior year’s sequestration under section 251 of the
Balanced Budget and Emergency Deficit Control Act of
1985 as published in OMB’s final sequestration report for
the prior fiscal year.
‘‘(3) Appropriations and funds made available, and
authority granted, for any fiscal year pursuant to this sec-
tion for a program, project, or activity shall be available
for the period beginning with the first day of a lapse in
appropriations and ending with the earlier of—
‘‘(A) the date on which the applicable regular
appropriation bill for such fiscal year becomes law
(whether or not such law provides for such program,
project, or activity) or a continuing resolution mak-
ing appropriations becomes law, as the case may be,
or
‘‘(B) the last day of such fiscal year.
‘‘(b) An appropriation or funds made available, or au-
thority granted, for a program, project, or activity for any
174
fiscal year pursuant to this section shall be subject to the
terms and conditions imposed with respect to the appro-
priation made or funds made available for the preceding
fiscal year, or authority granted for such program, project,
or activity under current law.
‘‘(c) Appropriations and funds made available, and
authority granted, for any program, project, or activity for
any fiscal year pursuant to this section shall cover all obli-
gations or expenditures incurred for such program, project,
or activity during the portion of such fiscal year for which
this section applies to such program, project, or activity.
‘‘(d) Expenditures made for a program, project, or ac-
tivity for any fiscal year pursuant to this section shall be
charged to the applicable appropriation, fund, or authoriza-
tion whenever a regular appropriation bill or a joint resolu-
tion making continuing appropriations until the end of a
fiscal year providing for such program, project, or activity
for such period becomes law.
‘‘(e) This section shall not apply to a program, project,
or activity during a fiscal year if any other provision of
law (other than an authorization of appropriations)—
‘‘(1) makes an appropriation, makes funds avail-
able, or grants authority for such program, project, or
activity to continue for such period, or
175
‘‘(2) specifically provides that no appropriation
shall be made, no funds shall be made available, or
no authority shall be granted for such program,
project, or activity to continue for such period; or
‘‘(f) For purposes of this section, the term ‘regular ap-
propriation bill’ means any annual appropriation bill
making appropriations, otherwise making funds available,
or granting authority, for any of the following categories
of programs, projects, and activities:
‘‘(1) Agriculture, rural development, and related
agencies programs.
‘‘(2) The Departments of Commerce, Justice, and
State, the judiciary, and related agencies.
‘‘(3) The Department of Defense.
‘‘(4) The government of the District of Columbia
and other activities chargeable in whole or in part
against the revenues of the District.
‘‘(5) The Departments of Labor, Health and
Human Services, and Education, and related agen-
cies.
‘‘(6) The Department of Housing and Urban De-
velopment, and sundry independent agencies, boards,
commissions, corporations, and offices.
‘‘(7) Energy and water development.
‘‘(8) Foreign assistance and related programs.
176
‘‘(9) The Department of the Interior and related
agencies.
‘‘(10) Military construction.
‘‘(11) The Department of Transportation and re-
lated agencies.
‘‘(12) The Treasury Department, the U.S. Postal
Service, the Executive Office of the President, and cer-
tain independent agencies.
‘‘(13) The legislative branch.’’.
(b) CONFORMING AMENDMENT.—Section 202(e)(3) of
the Congressional Budget Act of 1974 is amended by insert-
ing ‘‘and on or before September 30’’ before ‘‘of each year’’.
(c) CHAPTER ANALYSIS.—The analysis of chapter 13
of title 31, United States Code, is amended by inserting
after the item relating to section 1310 the following new
item:
‘‘1311. Continuing appropriations.’’.
(d) EFFECT
OF
AMENDMENTS.—Nothing in the
amendments made by this section shall be construed to af-
fect Government obligations mandated by other law, includ-
ing obligations with respect to social security, medicare,
and medicaid.
177
TITLE VII—BUDGETING IN AN
ERA OF SURPLUSES
SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET
SURPLUS.
(a) Section 252(a) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended to read as
follows:
‘‘(a) PURPOSE.—The purpose of this section is to trig-
ger an offsetting sequestration in the amount by which any
excess of decreases in receipts and increases in direct spend-
ing over increases in receipts and decreases in direct spend-
ing, caused by all direct spending and receipts legislation
enacted prior to October 1, 2002, exceeds estimates of the
on-budget surplus.’’.
(b) TIMING AND CALCULATION OF SEQUESTRATION.—
Section 252(b) of the Balanced Budget and Emergency Def-
icit Control Act of 1985 is amended to read as follows:
‘‘(b) SEQUESTRATION.—
‘‘(1) TIMING.—Not later than 15 calendar days
after the date Congress adjourns to end a session and
on the same day as a sequestration (if any) under
section 251, there shall be a sequestration to offset an
amount equal to—
‘‘(A) any excess of decreases in receipts and
increases in direct spending over increases in re-
178
ceipts and decreases in direct spending for legis-
lation enacted prior to October 1, 2002; minus
‘‘(B) the estimated on-budget surplus (which
shall not be less than zero),
as calculated under paragraph (2).
‘‘(2) CALCULATION OF SEQUESTRATION.—OMB
shall calculate the amount of the sequestration by
adding—
‘‘(A) all OMB estimates for the budget year
of direct spending and receipts legislation trans-
mitted under subsection (d) for legislation en-
acted prior to October 1, 2002;
‘‘(B) the estimated amount of savings in di-
rect spending programs applicable to the budget
year resulting from the prior year’s sequestration
under this section, if any, as published in OMB’s
final sequestration report for that prior year;
and
‘‘(C) all OMB estimates for the current year
that were not reflected in the final OMB seques-
tration report for that year; and
then by subtracting from such sum the OMB estimate
for the budget year of the on-budget surplus (if any)
as set forth in the OMB final sequestration report in-
creased by the amount of budgetary resources can-
179
celled in any such program, project, or activity result-
ing from a sequestration for the budget year on the
same day under section 251 as published in OMB’s
final sequestration report.’’.
(c) PREVIEW REPORTS.—Section 254(c)(3) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is amended by redesignating subparagraph (C) as subpara-
graph (D) and by adding after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C)(i) MANDATORY.—In projecting the on-
budget surplus (if any) for the budget year, di-
rect spending and receipts shall be calculated
consistent with the assumptions under section
257(b) but shall exclude all estimates of direct
spending and receipts legislation for such year
enacted after the date of enactment of this sub-
paragraph (as estimated by OMB when such leg-
islation was originally enacted).
‘‘(ii) DISCRETIONARY.—Except as provided
by the preceding sentence, the following assump-
tions shall apply to the calculation of such esti-
mated surplus:
‘‘(I) For programs, projects, and ac-
tivities for which a regular appropriation
Act or a joint resolution (other than pursu-
180
ant to section 1311 of title 31, United
States Code) continuing appropriations
through the end of the budget year is en-
acted, budgetary resources other than unob-
ligated balances shall be at the level pro-
vided by that Act with the following adjust-
ments:
‘‘(aa) Include amounts of budget
authority provided and rescinded for
such year in any supplemental or spe-
cial appropriation Act or rescission
bill that is enacted into law.
‘‘(bb) Reduce the level by the
amount of budgetary resources canceled
in any such program, project, or activ-
ity by a sequestration under section
251 as published in OMB’s final se-
questration report for such year.
Substantive changes to or restrictions on en-
titlement law or other mandatory spending
law in an appropriation Act shall be count-
ed in determining the level of direct spend-
ing and receipts for purposes of calculating
the on-budget surplus under this section.
181
‘‘(II) For programs, projects, and ac-
tivities for which a regular appropriation
Act or a joint resolution (other than pursu-
ant to section 1311 of title 31, United
States Code) continuing appropriations
through the end of the budget year is not en-
acted, budgetary resources other than unob-
ligated balances shall be at the level pro-
vided for the current year in regular appro-
priation Acts or a joint resolution (other
than pursuant to section 1311 of title 31,
United States Code) continuing appropria-
tions through the end of the current year
with the following adjustments:
‘‘(aa) Include amounts of budget
authority provided and rescinded for
such year in any supplemental or spe-
cial appropriation Act or rescission
bill that is enacted into law.
‘‘(bb) Reduce the level by the
amount of budgetary resources canceled
in any such program, project, or activ-
ity by a sequestration under section
251 as published in OMB’s final se-
questration report for such year.
182
Substantive changes to or restrictions on en-
titlement law or other mandatory spending
law in an appropriation Act shall be count-
ed in determining the level of direct spend-
ing and receipts for purposes of calculating
the on-budget surplus under this section.
After making such adjustments, further ad-
just such amount using the assumptions set
forth in section 257(c) (1)–(5).’’.
(d) DEFINITION OF ON-BUDGET SURPLUS.—Section
250(c) of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 is amended by adding at the end the fol-
lowing new paragraph:
‘‘(20) The term ‘on-budget surplus’ means, with
respect to a fiscal year, the amount by which receipts
exceed outlays for all spending and receipt accounts
of the United States Government that are designated
as on-budget. Such term does not include outlays and
receipts of the Federal Old-Age and Survivors Insur-
ance Trust Fund, the Federal Disability Insurance
Trust Fund, or any other off-budget entity.’’.
(e) EXPEDITED RECONCILIATION PROCESS.—Section
258C of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 is amended as follows:
183
(1) The side heading of subsection (a) is amend-
ed by inserting ‘‘OR IN THE HOUSE OF REPRESENTA-
TIVES’’ after ‘‘SENATE’’.
(2) In paragraphs (1), (2), (3), and (4) of sub-
section (a), insert ‘‘or House’’ after ‘‘Senate’’ each
place it appears.
(3) In subsection (a)(7), strike ‘‘For’’ and insert
‘‘In the Senate, for’’.
(4) In subsection (b)(1), insert ‘‘or House’’ after
‘‘Senate’’.
(5) In the side heading of subsection (b)(4), in-
sert ‘‘OTHER’’ after ‘‘THE’’.
(6) In subsection (b)(4), strike ‘‘in the Senate
from the House’’ and insert ‘‘in the Senate or House
of Representatives from the other House’’, strike ‘‘Sen-
ate’’ the second place it appears and insert ‘‘Senate
or House of Representatives, as the case may be,’’,
and strike ‘‘Senate’’ the third place it appears and
insert ‘‘in the applicable House’’.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as
the ‘‘Comprehensive Budget Process Reform
Act of 1999’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Effective date.
184
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 consid-
ered; fall-back procedures if President vetoes
joint budget resolution.
Sec. 105. Conforming amendments to effectuate joint resolu-
tions on the budget.
TITLE II—RESERVE FUND 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 emer-
gency definition.
Sec. 205. Reserve fund for emergencies in President’s budget.
Sec. 206. Adjustments and reserve fund for emergencies in
joint budget resolutions.
Sec. 207. Up-to-date tabulations.
Sec. 208. Prohibition on amendments to emergency reserve
fund.
Sec. 209. Effective date.
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 unre-
ported 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—Limitations on Direct Spending
Sec. 411. Fixed-year authorizations required for new pro-
grams.
185
Sec. 412. Amendments to subject new direct spending to an-
nual appropriations.
Subtitle B—Enhanced Congressional Oversight
Responsibilities
Sec. 421. Ten-year congressional review requirement of perma-
nent budget authority.
Sec. 422. Justifications of direct spending.
Sec. 423. Survey of activity reports of House committees.
Sec. 424. Continuing study of additional budget process re-
forms.
Sec. 425. GAO reports.
Subtitle C—Strengthened Accountability
Sec. 431. Ten-year CBO estimates.
Sec. 432. Repeal of rule XXIII of the Rules of the House of Rep-
resentatives.
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—BASELINE, BYRD RULE, LOCK-BOX, AND
AUTOMATIC CONTINUING RESOLUTION
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 lim-
its.
186
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 budg-
etary decisions;
(5) increase accountability for Fed-
eral spending;
(6) mitigate the bias in the budget
process toward higher spending; and
(7) modify paygo requirements when
there is an on-budget surplus.
SEC. 3. EFFECTIVE DATE.
Except as otherwise specifically provided,
this Act and the amendments made by this
Act shall become effective on the date of en-
actment of this Act and shall apply with re-
spect to fiscal years beginning after Sep-
tember 30, 2000.
187
SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET
ACT.
Paragraphs (1) and (2) of section 2 of the
Congressional Budget and Impoundment Con-
trol Act of 1974 are amended to read as fol-
lows:
‘‘(1) to assure effective control over
the budgetary process;
‘‘(2) to facilitate the determination
each year of the appropriate level of Fed-
eral revenues and expenditures by the
Congress and the President;’’.
TITLE I—BUDGET WITH FORCE
OF LAW
SEC. 101. PURPOSES.
The purposes of this title are to—
(1) focus initial budgetary delibera-
tions on aggregate levels of Federal
spending and taxation;
(2) encourage cooperation between
Congress and the President in developing
overall budgetary priorities; and
(3) reach budgetary decisions early in
the legislative cycle.
188
SEC. 102. THE TIMETABLE.
Section 300 of the Congressional Budget
Act of 1974 is amended to read as follows:
‘‘TIMETABLE
‘‘SEC. 300. The timetable with respect to
the congressional budget process for any fis-
cal year is as follows:
‘‘On or before:
Action to be completed:
First Monday in February ..
President submits his budget.
February 15 ............................
Congressional Budget Office
submits report to Budget
Committees.
Not later than 6 weeks
after President submits
budget.
Committees submit views and
estimates to Budget Com-
mittees.
April 1 ......................................
Senate Budget Committee re-
ports joint resolution on the
budget.
April 15 ....................................
Congress completes action on
joint 
resolution 
on 
the
budget.
June 10 ....................................
House Appropriations Com-
mittee reports last annual
appropriation bill.
June 15 ....................................
Congress completes action on
reconciliation legislation.
June 30 ....................................
House completes action on
annual appropriation bills.
October 1 .................................
Fiscal year begins.’’.
SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.
(a) CONTENT
OF ANNUAL JOINT RESOLU-
TIONS ON THE BUDGET.—Section 301(a) of the
Congressional Budget Act of 1974 is amended
as follows:
(1) Strike paragraph (4) and insert
the following new paragraph:
189
‘‘(4) subtotals of new budget authority
and outlays for nondefense discretionary
spending, defense discretionary spend-
ing, direct spending (excluding interest),
and interest; and for fiscal years to which
the amendments made by title II of the
Comprehensive Budget Process Reform
Act of 1999 apply, subtotals of new budg-
et 
authority 
and 
outlays 
for 
emer-
gencies;’’.
(2) Strike the last sentence of such
subsection.
(b) ADDITIONAL MATTERS IN JOINT RESOLU-
TION.—Section 301(b) of the Congressional
Budget Act of 1974 is amended as follows:
(1) Strike paragraphs (2), (4), (6), (8),
and (9) and redesignate paragraph (7) as
paragraph (6).
(2) After paragraph (1), insert the fol-
lowing new paragraph:
‘‘(2) if submitted by the Committee on
Ways and Means of the House of Rep-
resentatives or the Committee on Fi-
nance of the Senate to the Committee on
the Budget of that House of Congress,
190
amend section 3101 of title 31, United
States Code, to change the statutory limit
on the public debt;’’.
(3) After paragraph (3), insert the fol-
lowing new paragraph:
‘‘(4) require such other congressional
procedures, relating to the budget, as
may be appropriate to carry out the pur-
poses of this Act;’’.
(c) REQUIRED CONTENTS OF REPORT.—Sec-
tion 301(e)(2) of the Congressional Budget Act
of 1974 is amended as follows:
(1) Redesignate subparagraphs (A),
(B), (C), (D), (E), and (F) as subpara-
graphs (B), (C), (E), (F), (H), and (I), re-
spectively.
(2) Before subparagraph (B) (as re-
designated), insert the following new sub-
paragraph:
‘‘(A) new budget authority and
outlays for each major functional cat-
egory, based on allocations of the
total levels set forth pursuant to sub-
section (a)(1);’’.
191
(3) In subparagraph (C) (as redesig-
nated), strike ‘‘mandatory’’ and insert ‘‘di-
rect spending’’.
(4) After subparagraph (C) (as redes-
ignated), insert the following new sub-
paragraph:
‘‘(D) a measure, as a percentage of
gross domestic product, of total out-
lays, total Federal revenues, the sur-
plus or deficit, and new outlays for
nondefense discretionary spending,
defense spending, and direct spend-
ing as set forth in such resolution;’’.
(5) After subparagraph (F) (as redes-
ignated), insert the following new sub-
paragraph:
‘‘(G) if the joint resolution on the
budget includes any allocation to a
committee (other than the Committee
on Appropriations) of levels in excess
of current law levels, a justification
for 
not 
subjecting 
any 
program,
project, or activity (for which the al-
location is made) to annual discre-
tionary appropriations;’’.
192
(d) ADDITIONAL CONTENTS
OF REPORT.—
Section 301(e)(3) of the Congressional Budget
Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A)
and (B) as subparagraphs (B) and (C), re-
spectively, strike subparagraphs (C) and
(D), and redesignate subparagraph (E) as
subparagraph (D).
(2) Before subparagraph (B), insert
the following new subparagraph:
‘‘(A) reconciliation directives de-
scribed in section 310;’’.
(e) PRESIDENT’S BUDGET SUBMISSION TO THE
CONGRESS.—(1) The first two sentences of sec-
tion 1105(a) of title 31, United States Code, are
amended to read as follows:
‘‘On or after the first Monday in January but
not later than the first Monday in February
of each year the President shall submit a
budget of the United States Government for
the following fiscal year which shall set forth
the following levels:
‘‘(A) totals of new budget authority
and outlays;
193
‘‘(B) total Federal revenues and the
amount, if any, by which the aggregate
level of Federal revenues should be in-
creased or decreased by bills and resolu-
tions to be reported by the appropriate
committees;
‘‘(C) the surplus or deficit in the
budget;
‘‘(D) subtotals of new budget author-
ity and outlays for nondefense discre-
tionary spending, defense discretionary
spending, direct spending, and interest;
and for fiscal years to which the amend-
ments made by title II of the Comprehen-
sive Budget Process Reform Act of 1999
apply, subtotals of new budget authority
and outlays for emergencies; and
‘‘(E) the public debt.
Each budget submission shall include a budg-
et message and summary and supporting in-
formation and, as a separately delineated
statement, the levels required in the pre-
ceding sentence for at least each of the 9 ensu-
ing fiscal years.’’.
194
(2) The third sentence of section 1105(a) of
title 31, United States Code, is amended by in-
serting ‘‘submission’’ after ‘‘budget’’.
(f) LIMITATION
ON CONTENTS
OF BUDGET
RESOLUTIONS.—Section 305 of the Congres-
sional Budget Act of 1974 is amended by add-
ing at the end the following new subsection:
‘‘(e) LIMITATION ON CONTENTS.—(1) It shall
not be in order in the House of Representa-
tives or in the Senate to consider any joint
resolution on the budget or any amendment
thereto or conference report thereon that
contains any matter referred to in paragraph
(2).
‘‘(2) Any joint resolution on the budget or
any amendment thereto or conference report
thereon that contains any matter not per-
mitted in section 301(a) or (b) shall not be
treated in the House of Representatives or the
Senate as a budget resolution under sub-
section (a) or (b) or as a conference report on
a budget resolution under subsection (c) of
this section.’’.
195
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 302.—Section
302(a) of the Congressional Budget Act of 1974
is amended by striking paragraph (5).
(b) AMENDMENTS TO SECTION 303 AND CON-
FORMING AMENDMENTS.—(1) Section 303 of the
Congressional 
Budget 
Act 
of 
1974 
is
amended—
(A) in subsection (b), by striking para-
graph (2), by inserting ‘‘or’’ at the end of
paragraph (1), and by redesignating para-
graph (3) as paragraph (2); and
(B) by striking its section heading
and inserting the following new section
heading: ‘‘CONSIDERATION
OF
BUDGET-RE-
LATED
LEGISLATION
BEFORE
BUDGET
BE-
COMES LAW’’.
(2) Section 302(g)(1) of the Congressional
Budget Act of 1974 is amended by striking
‘‘and, after April 15, section 303(a)’’.
(3)(A) Section 904(c)(1) of the Congres-
sional Budget Act of 1974 is amended by in-
serting ‘‘303(a),’’ before ‘‘305(b)(2),’’.
196
(B) Section 904(d)(2) of the Congressional
Budget Act of 1974 is amended by inserting
‘‘303(a),’’ before ‘‘305(b)(2),’’.
(c) EXPEDITED PROCEDURES UPON VETO OF
JOINT RESOLUTION ON THE BUDGET.—(1) Title
III of the Congressional Budget Act of 1974 is
amended by adding after section 315 the fol-
lowing new section:
‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT
RESOLUTION ON THE BUDGET
‘‘SEC. 316. (a) SPECIAL RULE.—If the Presi-
dent vetoes a joint resolution on the budget
for a fiscal year, the majority leader of the
House of Representatives or Senate (or his
designee) may introduce a concurrent resolu-
tion on the budget or joint resolution on the
budget for such fiscal year. If the Committee
on the Budget of either House fails to report
such concurrent or joint resolution referred
to it within five calendar days (excluding Sat-
urdays, Sundays, or legal holidays except
when that House of Congress is in session)
after the date of such referral, the committee
shall be automatically discharged from fur-
ther consideration of such resolution and
197
such resolution shall be placed on the appro-
priate calendar.
‘‘(b) PROCEDURE
IN
THE HOUSE
OF REP-
RESENTATIVES AND THE SENATE.—
‘‘(1) Except as provided in paragraph
(2), the provisions of section 305 for the
consideration in the House of Represent-
atives and in the Senate of joint resolu-
tions on the budget and conference re-
ports thereon shall also apply to the con-
sideration of concurrent resolutions on
the budget introduced under subsection
(a) and conference reports thereon.
‘‘(2) Debate in the Senate on any con-
current 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 RESOLU-
TIONS.—Any concurrent resolution on the
198
budget introduced under subsection (a) shall
be in compliance with section 301.
‘‘(d) EFFECT OF CONCURRENT RESOLUTION
ON THE BUDGET.—Notwithstanding any other
provision of this title, whenever a concurrent
resolution on the budget described in sub-
section (a) is agreed to, then the aggregates,
allocations, and reconciliation directives (if
any) contained in the report accompanying
such concurrent resolution or in such concur-
rent resolution shall be considered to be the
aggregates, allocations, and reconciliation di-
rectives for all purposes of sections 302, 303,
and 311 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 Represent-
atives and any reference to the date of enact-
ment of a joint resolution on the budget shall
be deemed to be a reference to the date
agreed to when applied to such concurrent
resolution.’’.
(2) The table of contents set forth in sec-
tion 1(b) of the Congressional Budget and Im-
poundment Control Act of 1974 is amended by
199
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. CONFORMING AMENDMENTS TO EFFECTUATE
JOINT RESOLUTIONS ON THE BUDGET.
(a) CONFORMING AMENDMENTS TO THE CON-
GRESSIONAL BUDGET
AND IMPOUNDMENT CON-
TROL ACT OF 1974.—(1)(A) Sections 301, 302,
303, 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 re-
cently agreed to concurrent resolution on the
budget’’ each place it occurs and inserting
‘‘most recently enacted joint resolution on the
budget or agreed to concurrent resolution on
the budget (as applicable)’’.
(ii) The section heading of section 301 is
amended by striking ‘‘adoption of concurrent
resolution’’ and inserting ‘‘joint resolutions’’;
200
(iii) Section 304 of such Act is amended to
read as follows:
‘‘PERMISSIBLE REVISIONS OF BUDGET
RESOLUTIONS
‘‘SEC. 304. At any time after the joint reso-
lution on the budget for a fiscal year has been
enacted pursuant to section 301, and before
the end of such fiscal year, the two Houses
and the President may enact a joint resolu-
tion on the budget which revises or reaffirms
the joint resolution on the budget for such fis-
cal year most recently enacted. If a concur-
rent resolution on the budget has been agreed
to pursuant to section 316, then before the
end of such fiscal year, the two Houses may
adopt a concurrent resolution on the budget
which revises or reaffirms the concurrent res-
olution on the budget for such fiscal year
most recently agreed to.’’.
(C) Sections 302, 303, 310, and 311, of such
Act are amended by striking ‘‘agreed to’’ each
place it appears and by inserting ‘‘enacted’’.
(2)(A) Paragraph (4) of section 3 of the
Congressional Budget and Impoundment Con-
trol Act of 1974 is amended by striking ‘‘con-
201
current’’ each place it appears and by insert-
ing ‘‘joint’’.
(B) The table of contents set forth in sec-
tion 1(b) of such Act is amended—
(i) in the item relating to section 301,
by striking ‘‘adoption of concurrent reso-
lution’’ and inserting ‘‘joint resolutions’’;
(ii) by striking the item relating to
section 303 and inserting the following:
‘‘Sec. 303. Consideration of budget-related legislation before
budget becomes law.’’;
(iii) in the item relating to section
304, by striking ‘‘concurrent’’ and insert-
ing ‘‘budget’’ the first place it appears
and by striking ‘‘on the budget’’; and
(iv) by striking ‘‘concurrent’’ and in-
serting ‘‘joint’’ in the item relating to sec-
tion 305.
(b) CONFORMING
AMENDMENTS
TO
THE
RULES OF THE HOUSE OF REPRESENTATIVES.—(1)
Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), and
4(f)(2) of rule X, clause 10 of rule XVIII, and
clause 10 of rule XX of the Rules of the House
of Representatives are amended by striking
‘‘concurrent’’ each place it appears and insert-
ing ‘‘joint’’.
202
(2) Clause 10 of rule XVIII of the Rules of
the House of Representatives is amended—
(A) in paragraph (b)(2), by striking
‘‘(5)’’ and inserting ‘‘(6)’’; and
(B) by striking paragraph (c).
(c) CONFORMING AMENDMENTS TO THE BAL-
ANCED BUDGET AND EMERGENCY DEFICIT CON-
TROL ACT OF 1985.—Section 258C(b)(1) of the
Balanced Budget and Emergency Deficit Con-
trol Act of 1985 (2 U.S.C. 907d(b)(1)) is amend-
ed by striking ‘‘concurrent’’ and inserting
‘‘joint’’.
(d) CONFORMING AMENDMENTS TO SECTION
310 REGARDING RECONCILIATION DIRECTIVES.—
(1) The side heading of section 310(a) of the
Congressional Budget Act of 1974 (as amend-
ed by section 105(a)) is further amended by in-
serting ‘‘JOINT EXPLANATORY STATEMENT AC-
COMPANYING CONFERENCE REPORT ON’’ before
‘‘JOINT’’.
(2) Section 310(a) of such Act is amended
by striking ‘‘A’’ and inserting ‘‘The joint ex-
planatory statement accompanying the con-
ference report on a’’.
203
(3) The first sentence of section 310(b) of
such Act is amended by striking ‘‘If’’ and in-
serting ‘‘If the joint explanatory statement ac-
companying the conference report on’’.
(4) Section 310(c)(1) of such Act is amend-
ed by inserting ‘‘the joint explanatory state-
ment accompanying the conference report
on’’ after ‘‘pursuant to’’.
(5) Subsection (g) of section 310 of such
Act is repealed.
(e) CONFORMING AMENDMENTS TO SECTION 3
REGARDING DIRECT SPENDING.—Section 3 of
the Congressional Budget and Impoundment
Control Act of 1974 is amended by adding at
the end the following new paragraph:
‘‘(11) The term ‘direct spending’ has
the meaning given to such term in sec-
tion 250(c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985.’’.
(f) TECHNICAL AMENDMENT REGARDING RE-
VISED 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’’
204
before ‘‘the Committees’’, and by striking
‘‘may report’’ and inserting ‘‘shall make
and have published in the Congressional
Record’’; and
(2) adding at the end the following
new sentence: ‘‘For purposes of consid-
ering 
amendments 
(other 
than 
for
amounts for emergencies covered by sub-
section (b)(1)), suballocations shall be
deemed to be so adjusted.’’.
TITLE II—RESERVE FUND FOR
EMERGENCIES
SEC. 201. PURPOSE.
The purposes of this title are to—
(1) develop budgetary and fiscal pro-
cedures for emergencies;
(2) subject spending for emergencies
to budgetary procedures and controls;
and
(3) establish criteria for determining
compliance 
with 
emergency 
require-
ments.
SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) DISCRETIONARY SPENDING LIMITS.—(1)
Section 251(b)(2)(A) of the Balanced Budget
205
and Emergency Deficit Control Act of 1985 is
repealed.
(2) Such section 251(b)(2) is further
amended by redesignating subparagraphs (B)
through (G) as subparagraphs (A) through (F).
(b) DIRECT SPENDING.—Sections 252(e) and
252(d)(4)(B) of the Balanced Budget and
Emergency Deficit Control Act of 1985 are re-
pealed.
(c) EMERGENCY DESIGNATION.—Clause 2 of
rule XXI of the Rules of the House of Rep-
resentatives is amended by repealing para-
graph (e) and by redesignating paragraph (f)
as paragraph (e).
(d) AMOUNT
OF
ADJUSTMENTS.—Section
314(b) of the Congressional Budget Act of 1974
is amended by striking paragraph (1) and by
redesignating paragraphs (2) through (6) as
paragraphs (1) through (5), respectively.
SEC. 203. OMB EMERGENCY CRITERIA.
Section 3 of the Congressional Budget and
Impoundment Control Act of 1974 (as amend-
ed by section 105(e)) is further amended by
adding at the end the following new para-
graph:
206
‘‘(12)(A) The term ‘emergency’ means
a situation that—
‘‘(i) requires new budget author-
ity and outlays (or new budget au-
thority and the outlays flowing there-
from) for the prevention or mitiga-
tion of, or response to, loss of life or
property, or a threat to national secu-
rity; and
‘‘(ii) is unanticipated.
‘‘(B) As used in subparagraph (A), the
term ‘unanticipated’ means that the situ-
ation is—
‘‘(i) sudden, which means quickly
coming into being or not building up
over time;
‘‘(ii) urgent, which means a press-
ing and compelling need requiring
immediate action;
‘‘(iii) unforeseen, which means
not predicted or anticipated as an
emerging need; and
‘‘(iv) temporary, which means not
of a permanent duration.’’.
207
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 Ap-
propriations and applicable authorizing com-
mittees of their respective Houses and the Di-
rectors of the Congressional Budget Office
and the Office of Management and Budget,
jointly publish in the Congressional Record
guidelines for application of the definition of
emergency set forth in section 3(12) of the
Congressional Budget and Impoundment Con-
trol Act of 1974.
SEC. 205. RESERVE FUND FOR EMERGENCIES IN PRESI-
DENT’S BUDGET.
Section 1105(f) of title 31, United States
Code is amended by adding at the end the fol-
lowing new sentences: ‘‘Such budget submis-
sion shall also comply with the requirements
of section 317(b) of the Congressional Budget
Act of 1974 and, in the case of any budget au-
thority requested for an emergency, such sub-
mission shall include a detailed justification
208
of why such emergency is an emergency with-
in the meaning of section 3(12) of the Congres-
sional Budget Act of 1974.’’.
SEC. 206. ADJUSTMENTS AND RESERVE FUND FOR EMER-
GENCIES IN JOINT BUDGET RESOLUTIONS.
(a) EMERGENCIES.—Title III of the Congres-
sional Budget Act of 1974 (as amended by sec-
tion 104(c)) is further amended by adding at
the end the following new section:
‘‘EMERGENCIES
‘‘SEC. 317. (a) ADJUSTMENTS.—
‘‘(1) IN GENERAL.—After the reporting
of a bill or joint resolution or the submis-
sion of a conference report thereon that
provides budget authority for any emer-
gency as identified pursuant to sub-
section (c), the Committee on the Budget
of the House of Representatives or the
Senate shall—
‘‘(A) determine and certify, pursu-
ant to the guidelines referred to in
section 204 of the Comprehensive
Budget Process Reform Act of 1999,
the portion (if any) of the amount so
specified that is for an emergency
209
within the meaning of section 3(12);
and
‘‘(B) make the adjustment set
forth in paragraph (2) for the amount
of new budget authority (or outlays)
in that measure and the outlays flow-
ing from that budget authority.
‘‘(2) MATTERS
TO
BE
ADJUSTED.—The
adjustments referred to in paragraph (1)
are to be made to the allocations made
pursuant to the appropriate joint resolu-
tion on the budget (or concurrent resolu-
tion on the budget, as the case may be)
pursuant to section 302(a) and shall be in
an amount not to exceed the amount re-
served for emergencies pursuant to the
requirements of subsection (b).
‘‘(b) RESERVE FUND FOR EMERGENCIES.—
‘‘(1) AMOUNTS.—The amount set forth
in the reserve fund for emergencies for
budget authority and outlays for a fiscal
year pursuant to section 301(a)(4) shall
equal—
‘‘(A) the average of the enacted
levels of budget authority for emer-
210
gencies in the 5 fiscal years preceding
the current year; and
‘‘(B) the average of the levels of
outlays for emergencies in the 5 fiscal
years preceding the current year
flowing from the budget authority re-
ferred to in subparagraph (A), but
only in the fiscal year for which such
budget authority first becomes avail-
able for obligation.
‘‘(2) AVERAGE
LEVELS.—For purposes
of paragraph (1), 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 budget au-
thority and the amount of new outlays
flowing therefrom for emergencies, but
only in the fiscal year for which such
budget authority first becomes available
for obligation for each of such 5 fiscal
years, which shall be determined by the
Committees on the Budget of the House
of Representatives and the Senate after
211
receipt of a report on such matter trans-
mitted to such committees by the Direc-
tor of the Congressional Budget Office 6
months after the date of enactment of
this section and thereafter in February of
each calendar year.
‘‘(c) COMMITTEE
NOTIFICATION
OF
EMER-
GENCY
LEGISLATION.—Whenever 
any 
com-
mittee 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 con-
ference report on any such bill or joint resolu-
tion) shall identify all provisions that provide
budget authority and the outlays flowing
therefrom for such emergency and include a
statement of the reasons why such budget au-
thority meets the definition of an emergency
pursuant to the guidelines referred to in sec-
tion 204 of the Comprehensive Budget Proc-
ess Reform Act of 1999.’’.
(b) CONFORMING AMENDMENT.—The table of
contents set forth in section 1(b) of the Con-
213
lution on the budget (or concurrent resolu-
tion on the budget, as the case may be) which
changes the amount of budget authority and
outlays set forth in section 301(a)(4) for emer-
gency reserve fund.’’.
(b) TECHNICAL
AMENDMENT.—(1) Section
904(c)(1) of the Congressional Budget Act of
1974 is amended by inserting ‘‘305(e), 305(f),’’
after ‘‘305(c)(4),’’.
(2) Section 904(d)(2) of the Congressional
Budget Act of 1974 is amended by inserting
‘‘305(e), 305(f),’’ after ‘‘305(c)(4),’’.
SEC. 209. EFFECTIVE DATE.
The amendments made by this title shall
apply to fiscal year 2001 and subsequent fiscal
years, but such amendments shall take effect
only after the enactment of legislation chang-
ing or extending for any fiscal year the budg-
etary procedures set forth in sections 251 and
252 of the Balanced Budget and Emergency
Deficit Control Act of 1985.
TITLE III—ENFORCEMENT OF
BUDGETARY DECISIONS
SEC. 301. PURPOSES.
The purposes of this title are to—
214
(1) close loopholes in the enforcement
of budget resolutions;
(2) require committees of the House
of Representatives to include budget
compliance statements in reports accom-
panying all legislation; and
(3) require committees of the House
of Representatives to justify the need for
waivers of the Congressional Budget Act
of 1974;
(4) provide cost estimates of con-
ference 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 Budg-
et Act of 1974 is amended by striking ‘‘re-
ported’’ the first place it appears.
(b) Section 303(b) of the Congressional
Budget Act of 1974 (as amended by section
104(b)(1)) is further amended—
(1) in paragraph (1), by striking ‘‘(A)’’
and by redesignating subparagraph (B)
as paragraph (2) and by striking the
215
semicolon at the end of such new para-
graph (2) and inserting a period; and
(2) by striking paragraph (2) (as re-
designated by such section 104(b)(1)).
Subtitle B—Compliance with
Budget Resolution
SEC. 321. BUDGET COMPLIANCE STATEMENTS.
Clause 3(d) of rule XIII of the Rules of the
House of Representatives is amended by add-
ing at the end the following new subpara-
graph:
‘‘(4) A budget compliance statement
prepared by the chairman of the Com-
mittee on the Budget, if timely submitted
prior to the filing of the report, which
shall include assessment by such chair-
man as to whether the bill or joint resolu-
tion complies with the requirements of
sections 302, 303, 306, 311, and 401 of the
Congressional Budget Act of 1974 and
may include the budgetary implications
of that bill or joint resolution under sec-
tion 251 or 252 of the Balanced Budget
and Emergency Deficit Control Act of
1985, as applicable.’’.
216
Subtitle C—Justification for
Budget Act Waivers
SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN
THE HOUSE OF REPRESENTATIVES.
Clause 6 of rule XIII of the Rules of the
House of Representatives is amended by add-
ing at the end the following new paragraph:
‘‘(h) It shall not be in order to consider
any resolution from the Committee on Rules
for the consideration of any reported bill or
joint resolution which waives section 302, 303,
311, or 401 of the Congressional Budget Act of
1974, unless the report accompanying such
resolution includes a description of the provi-
sion 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
Congressional Budget Act of 1974 is amended
as follows:
217
(1) Insert ‘‘or conference report there-
on,’’ before ‘‘and submit’’.
(2) In paragraph (1), strike ‘‘bill or
resolution’’ and insert ‘‘bill, joint resolu-
tion, or conference report’’.
(3) At the end of paragraph (2) strike
‘‘and’’, at the end of paragraph (3) strike
the period and insert ‘‘; and’’, and after
such paragraph (3) add the following new
paragraph:
‘‘(4) A determination of whether such
bill, joint resolution, or conference report
provides direct spending.’’.
(b) The second sentence of section 402 of
the Congressional Budget Act of 1974 is
amended by inserting before the period the
following: ‘‘, or in the case of a conference re-
port, shall be included in the joint explana-
tory statement of managers accompanying
such conference report if timely submitted be-
fore such report is filed’’.
TITLE IV—ACCOUNTABILITY
FOR FEDERAL SPENDING
SEC. 401. PURPOSES.
The purposes of this title are to—
218
(1) require committees to develop a
schedule for reauthorizing all programs
within their jurisdictions;
(2) facilitate amendments to subject
new entitlement programs to annual dis-
cretionary appropriations;
(3) require the Committee on the
Budget to justify any allocation to an au-
thorizing committee for legislation that
would not be subject to annual discre-
tionary appropriation;
(4) provide estimates of the long-term
impact of spending and tax legislation;
(5) provide a point of order for legis-
lation creating a new direct spending
program that does not expire within 10
years; and
(6) require a vote in the House of
Representatives on any measure that in-
creases the statutory limit on the public
debt.
219
Subtitle A—Limitations on Direct
Spending
SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR
NEW PROGRAMS.
(a) IN GENERAL.—Section 401 of the Con-
gressional Budget Act of 1974 is amended—
(1) by striking subsections (a) and (b)
and inserting the following new sub-
section:
‘‘(a) LIMITATION ON DIRECT SPENDING.—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
subsection (b) and by striking ‘‘Sub-
sections (a) and (b) each place it appears
and inserting ‘‘Subsection (a)’’ in such re-
designated subsection (b); and
(3) by amending the section heading
to read as follows: