To amend part C of the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending limits and pay-as-you-go through fiscal year 2009.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Spending Control Act of 2004''.

SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.

    (a) Discretionary Spending Limits.--(1) Section 251(c)(2) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
inserting a dash after ``2005'', by redesignating the remaining portion 
of such paragraph as subparagraph (B) and by moving it two ems to the 
right, and by inserting after the dash the following new subparagraph:
                    ``(A) for the general purpose discretionary 
                category: $____ in new budget authority and $____ in 
                outlays; and''.
    (2) Section 251(c)(3) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by inserting a dash after ``2006'', by 
redesignating the remaining portion of such paragraph as subparagraph 
(B) and by moving it two ems to the right, and by inserting after the 
dash the following new subparagraph:
                    ``(A) for the general purpose discretionary 
                category: $____ in new budget authority and $____ in 
                outlays; and''.
    (3) Section 251(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by redesignating paragraphs (4) through 
(9) as paragraphs (7) through (12) and inserting after paragraph (3) 
the following new paragraphs:
            ``(4) with respect to fiscal year 2007 for the general 
        purpose discretionary category: $____ in new budget authority 
        and $____ in outlays;
            ``(5) with respect to fiscal year 2008 for the general 
        purpose discretionary category: $____ in new budget authority 
        and $____ in outlays; and
            ``(6) with respect to fiscal year 2009 for the general 
        purpose discretionary category: $____ in new budget authority 
        and $____ in outlays;''.
    (b) Advance Appropriations.--Section 251 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by adding at the end 
the following new subsection:
    ``(d) Advance Appropriations.--In any of fiscal years 2005 through 
2009, discretionary advance appropriations provided in appropriation 
Acts in excess of $____ shall be counted against the discretionary 
spending limits for the fiscal year for which the appropriation Act 
containing the advance appropriation is enacted.''.

SEC. 3. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.

    (a) Purpose.--Section 252(a) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended to read as follows:
    ``(a) Purpose.--The purpose of this section is to assure that any 
legislation that is enacted before October 1, 2009, that causes a net 
increase in direct spending will trigger an offsetting 
sequestration.''.
    (b) Timing.--Section 252(b)(1) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by striking ``any net deficit 
increase'' and all that follows through ``2002,'' and by inserting 
``any net increase in direct spending enacted before October 1, 
2009,''.
    (c) Calculation of Direct Spending Increase.--Section 252(b)(2) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended--
            (1) by striking ``deficit'' the first place it appears and 
        inserting ``direct spending'';
            (2) in subparagraph (A) by striking ``and receipts'';
            (3) in subparagraph (C) by striking ``and receipts''; and
            (4) by amending the heading to read as follows: 
        ``Calculation of direct spending increase.--''.
    (d) Conforming Amendments.--(1) The heading of section 252(c) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended to read as follows: ``Eliminating a Direct Spending Increase.--
''.
    (2) Paragraphs (1), (2), and (4) of section 252(d) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 are amended by 
striking ``or receipts'' each place it appears.
    (3) Section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by striking ``or receipts'' and by 
striking ``, outlays, and receipts'' and inserting ``and outlays''.
    (4) Section 254(c)(3) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended--
            (A) in subparagraph (A) by striking ``net deficit increase 
        or decrease'' and by inserting ``net increase or decrease in 
        direct spending'';
            (B) in subparagraph (B) by striking ``amount of deficit 
        increase or decrease'' and by inserting ``increase or decrease 
        in direct spending''; and
            (C) in subparagraph (C) by striking ``a deficit increase'' 
        and by inserting ``an increase in direct spending''.

SEC. 4. DEFINITIONS.

    (a) In General.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by adding at the end 
the following new paragraphs:
            ``(20) The term `advance appropriation' means 
        appropriations that first become available one fiscal year or 
        more beyond the fiscal year for which an appropriation Act 
        making such funds available is enacted.
            ``(21)(A) Except as provided by subparagraph (B), the term 
        `emergency requirement' means any provision that provides new 
        budget authority and resulting outlays for a situation that 
        poses a threat to life, property, or national security and is--
                    ``(i) sudden, quickly coming into being, and not 
                building up over time;
                    ``(ii) an urgent, pressing, and compelling need 
                requiring immediate action;
                    ``(iii) subject to subparagraph (B), unforeseen, 
                unpredictable, and unanticipated; and
                    ``(iv) not permanent, temporary in nature.
            ``(B) An emergency that is part of an aggregate level of 
        anticipated emergencies, particularly when normally estimated 
        in advance, is not unforeseen.''.
    (b) Contingency Operations Related to Global War on Terrorism.--
Section 251(b)(2) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by adding at the end the following new 
subparagraph:
                    ``(I) Contingency operations related to global war 
                on terrorism.--If supplemental appropriations for 
                discretionary accounts are enacted for contingency 
                operations related to the global war on terrorism that, 
                pursuant to this subparagraph, the President designates 
                as a contingency operation related to the global war on 
                terrorism and the Congress so designates in statute, 
                the adjustment shall be the total of such 
                appropriations in discretionary accounts so designated 
                and the outlays flowing in all fiscal years from such 
                appropriations.''.
    (c) Conforming Amendment.--The second sentence of section 
250(c)(4)(A) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended to read as follows: ``The general purpose 
discretionary category shall consist of accounts designated in the 
joint explanatory statement of managers accompanying the conference 
report on the Spending Control Act of 2004.''.

SEC. 5. PROJECTIONS UNDER SECTION 257.

    Section 257(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by inserting after paragraph (6) the following 
new paragraph:
            ``(7) Emergencies.--New budgetary resources designated 
        under section 251(b)(2)(A) or 251(b)(2)(I) shall not be assumed 
        beyond the fiscal year for which they have been enacted.''.

SEC. 6. EXCEPTION FOR OUTLAY COMPONENTS OF EXPIRING RECEIPTS 
              LEGISLATION.

    Section 252(d)(4) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by striking ``and'' at the end of 
subparagraph (A), by striking the period and inserting ``; and'' at the 
end of subparagraph (B), and by adding at the end the following new 
subparagraph:
                    ``(C) extending provisions in the Economic Growth 
                and Tax Relief Reconciliation Act of 2001 or provisions 
                in sections 101 through 104, section 202, or sections 
                301 and 302 of the Jobs and Growth Tax Relief 
                Reconciliation Act of 2003.''.

SEC. 7. REPORTS.

    Subsections (c)(2) and (f)(2)(A) of section 254 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 are amended by 
striking ``2002'' and inserting ``2009''.

SEC. 8. EXPIRATION.

    Section 275(b) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by striking ``2002'' and inserting ``2009'' and 
by striking ``2006'' and inserting ``2013''.

SEC. 9. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND EMERGENCY 
              DEFICIT CONTROL ACT OF 1985.

    Part C of the Balanced Budget and Emergency Deficit Control Act of 
1985 is amended as follows:
            (1) In section 250(a), strike ``SEC. 256. GENERAL AND 
        SPECIAL SEQUESTRATION RULES'' and insert ``Sec. 256. General 
        and special sequestration rules'' in the item relating to 
        section 256.
            (2) In subparagraphs (F), (G), (H), (I), (J), and (K) of 
        section 250(c)(4), insert ``subparagraph'' after ``described 
        in'' each place it appears.
            (3) In section 250(c)(18), insert ``of'' after 
        ``expenses''.
            (4) In section 251(b)(1)(A), strike ``committees'' the 
        first place it appears and insert ``Committees''.
            (5) In section 251(b)(1)(C)(i), strike ``fiscal years'' and 
        insert ``fiscal year''.
            (6) In section 251(b)(1)(D)(ii), strike ``fiscal years'' 
        and insert ``fiscal year''.
            (7) In section 252(b)(2)(B), insert ``the'' before ``budget 
        year''.
            (8) In section 252(c)(1)(C)(i), strike ``paragraph (1)'' 
        and insert ``subsection (b)''.
            (9) In section 254(c)(3)(A), strike ``subsection'' and 
        insert ``section''.
            (10) In section 254(f)(4), strike ``subsection'' and insert 
        ``section'' and strike ``sequesterable'' and insert 
        ``sequestrable''.
            (11) In section 255(g)(1)(B), move the fourteenth 
        undesignated clause 2 ems to the right.
            (12) In section 255(g)(2), insert ``and'' after the 
        semicolon at the end of the next-to-last undesignated clause.
            (13) In section 255(h)--
                    (A) strike ``and'' after the semicolon in the ninth 
                undesignated clause;
                    (B) insert ``and'' after the semicolon at the end 
                of the tenth undesignated clause; and
                    (C) strike the semicolon at the end and insert a 
                period.
            (14) In section 256(k)(1), strike ``paragraph (5)'' and 
        insert ``paragraph (6)''.
            (15) In section 257(b)(2)(A)(i), strike ``differenes'' and 
        insert ``differences''.

Summary: Spending Control Act of 2004 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to establish for FY 2005 through 2009 unspecified discretionary spending limits (spending caps) for the general purpose discretionary category in new budget authority and outlays.

Provides that, in any of such fiscal years, discretionary advance appropriations provided in appropriation Acts in excess of an unspecified amount shall be counted against the discretionary spending limits for the fiscal year for which the appropriation Act containing the advance appropriation is enacted.

Extends PAY-AS-YOU-GO requirements through FY 2009 to provide for an offsetting sequestration for direct spending (currently, direct spending and receipts) legislation that is enacted before October 1, 2009, that causes a net increase in direct spending (currently, net deficit increase).

Modifies the formula used to calculate the amount of direct spending (currently, deficit) increase to exclude receipts.

Provides that, if supplemental appropriations for discretionary accounts are enacted for contingency operations related to the global war on terrorism that the President designates and Congress so designates in statute, the adjustment shall be the total of such appropriations in discretionary accounts so designated and the outlays flowing in all fiscal years from them.

States that the general purpose discretionary category shall consist of accounts designated in the joint explanatory statement of managers accompanying the conference report on this Act.

Makes revisions to the baseline calculation for discretionary appropriations to prohibit the assumption beyond the fiscal year for which they have been enacted of any new budget resources designated by the President and by Congress in statute for emergency appropriations or for supplemental appropriations for contingency operations related to global war on terrorism.

Requires the Office of Management and Budget (OMB) cost estimates on direct spending or receipts legislation to exclude any amount resulting from extending provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 or in the Growth Tax Relief Reconciliation Act of 2003 relating to certain individual tax rate reductions, tax benefits to children, and marriage penalty relief.

Requires the estimates set forth in the discretionary sequestration preview reports and such final reports issued by OMB and the Congressional Budget Office to include the current year and each subsequent year through FY 2009.

Extends: (1) certain budget enforcement requirements through FY 2009; and (2) PAY-AS-YOU-GO requirements through FY 2013.