To amend the Balanced Budget and Emergency Deficit Control Act of 1985 and the Congressional Budget Act of 1974 to extend the discretionary spending caps and the pay-as-you-go requirement, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assuring Fiscal Honesty and 
Accountability Act of 2004''.

SEC. 2. EXTENSION OF THE DISCRETIONARY SPENDING CAPS.

    (a) In General.--Section 251(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended--
            (1) in paragraph (2), by inserting a dash after ``2005'', 
        by redesignating the remaining matter as subparagraph (B) and 
        moving it two ems to the right, and by inserting before such 
        redesignated matter the following:
                    ``(A) for the discretionary category: 
                $822,903,000,000 in new budget authority and 
                $902,920,000,000 in outlays; and'';
            (2) in paragraph (3), by inserting a dash after ``2006'', 
        by redesignating the remaining matter as subparagraph (B) and 
        moving it two ems to the right, and by inserting before such 
        redesignated matter the following:
                    ``(A) for the discretionary category: 
                $845,042,000,000 in new budget authority and 
                $894,031,000,000 in outlays; and'';
            (3) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10), respectively, and inserting after 
        paragraph (3) the following new paragraphs:
            ``(4) with respect to fiscal year 2007 for the 
        discretionary category: $870,003,000,000 in new budget 
        authority and $900,651,000,000 in outlays; and''.
    (b) Expiration.--Section 275 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 900 note) is amended by striking 
subsection (b).

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 by striking ``2002'' and 
inserting ``2009''.
    (b) Sequestration.--Section 252(b)(1) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking ``2002'' 
and inserting ``2009''.

SEC. 4. AUTOMATIC BUDGET ENFORCEMENT FOR MEASURES CONSIDERED ON THE 
              FLOOR.

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

                    ``budget evasion points of order

    ``Sec. 316. (a) Discretionary Spending Caps.--It shall not be in 
order in the House of Representatives or the Senate to consider any 
bill or resolution (or amendment, motion, or conference report on that 
bill or resolution) that waives or suspends the enforcement of section 
251 of the Balanced Budget and Emergency Deficit Control Act of 1985 or 
otherwise would alter the spending limits set forth in that section.
    ``(b) Pay-As-You-Go.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill or resolution (or 
amendment, motion, or conference report on that bill or resolution) 
that waives or suspends the enforcement of section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 or otherwise would 
alter the balances of the pay-as-you-go scorecard pursuant to that 
section.
    ``(c) Directed Scoring.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill or resolution (or 
amendment, motion, or conference report on that bill or resolution) 
that directs the scorekeeping of any bill or resolution.
    ``(d) Far-Outyears.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill or resolution (or 
amendment, motion, or conference report on that bill or resolution) 
that contains a provision providing new budget authority or which 
reduces revenues which first takes effect after the first five fiscal 
years covered in the most recently adopted concurrent resolution on the 
budget and would have the effect of reducing the surplus or increasing 
the deficit in any fiscal year.
    ``(e)  Enforcement in the House of Representatives.--(1) It shall 
not be in order in the House of Representatives to consider a rule or 
order that waives the application of this section.
    ``(2)(A) This subsection shall apply only to the House of 
Representatives.
    ``(B) In order to be cognizable by the Chair, a point of order 
under this section must specify the precise language on which it is 
premised.
    ``(C) As disposition of points of order under this section, the 
Chair shall put the question of consideration with respect to the 
proposition that is the subject of the points of order.
    ``(D) A question of consideration under this section shall be 
debatable for 10 minutes by each Member initiating a point of order and 
for 10 minutes by an opponent on each point of order, but shall 
otherwise be decided without intervening motion except one that the 
House adjourn or that the Committee of the Whole rise, as the case may 
be.
    ``(E) The disposition of the question of consideration under this 
subsection with respect to a bill or joint resolution shall be 
considered also to determine the question of consideration under this 
subsection with respect to an amendment made in order as original 
text.''.
    (b) Waiver and Appeal in the Senate.--Section 904 of the 
Congressional Budget Act of 1974 is amended--
            (1) in subsection (c)(1), by inserting ``316,'' after 
        ``313,''; and
            (2) in subsection (d)(2), by inserting ``316,'' after 
        ``313,''.
    (c) Table of Contents.--The table of contents for the Congressional 
Budget Act of 1974 is amended by inserting after the item for section 
315 the following:

``Sec. 316. Budget evasion points of order.''.

SEC. 5. DISCLOSURE OF INTEREST COSTS.

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

SEC. 6. ACCOUNTABILITY IN EMERGENCY SPENDING.

    (a) OMB Emergency Criteria.--Section 3 of the Congressional Budget 
and Impoundment Control Act of 1974 is amended by adding at the end the 
following new paragraph:
            ``(11)(A) The term `emergency' means a situation that--
                            ``(i) requires new budget authority and 
                        outlays (or new budget authority and the 
                        outlays flowing therefrom) for the prevention 
                        or mitigation of, or response to, loss of life 
                        or property, or a threat to national security; 
                        and
                            ``(ii) is unanticipated.
                    ``(B) As used in subparagraph (A), the term 
                `unanticipated' means that the situation is--
                            ``(i) sudden, which means quickly coming 
                        into being or not building up over time;
                            ``(ii) urgent, which means a pressing and 
                        compelling need requiring immediate action;
                            ``(iii) unforeseen, which means not 
                        predicted or anticipated as an emerging need; 
                        and
                            ``(iv) temporary, which means not of a 
                        permanent duration.''.
    (b) Development of Guidelines for Application of Emergency 
Definition.--Not later than five months after the date of enactment of 
this Act, the chairmen of the Committees on the Budget (in consultation 
with the President) shall, after consulting with the chairmen of the 
Committees on Appropriations and applicable authorizing committees of 
their respective Houses and the Directors of the Congressional Budget 
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(11) of the Congressional Budget and 
Impoundment Control Act of 1974.
    (c) Separate House Vote on Emergency Designation.--(1) Rule XXII of 
the Rules of the House of Representatives is amended by adding at the 
end the following new clause:
    ``13. In the consideration of any measure for amendment in the 
Committee of the Whole containing any emergency spending designation, 
it shall always be in order unless specifically waived by terms of a 
rule governing consideration of that measure, to move to strike such 
emergency spending designation from the portion of the bill then open 
to amendment.''.
    (2) The Committee on Rules shall include in the report required by 
clause 1(d) of rule XI (relating to its activities during the Congress) 
of the Rules of the House of Representatives a separate item 
identifying all waivers of points of order relating to emergency 
spending designations, listed by bill or joint resolution number and 
the subject matter of that measure.
    (d) Committee Notification of Emergency Legislation.--Whenever the 
Committee on Appropriations or any other committee of either House 
(including a committee of conference) reports any bill or joint 
resolution that provides budget authority for any emergency, the report 
accompanying that bill or joint resolution (or the joint explanatory 
statement of managers in the case of a conference report on any such 
bill or joint resolution) shall identify all provisions that provide 
budget authority and the outlays flowing therefrom for such emergency 
and include a statement of the reasons why such budget authority meets 
the definition of an emergency pursuant to the guidelines described in 
subsection (b).

SEC. 7. 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 is 
amended--
            (1) in paragraph (1), by striking ``(A)'' and by 
        redesignating subparagraph (B) as paragraph (2) and by striking 
        the semicolon at the end of such new paragraph (2) and 
        inserting a period; and
            (2) by striking paragraph (3).

SEC. 8. 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 following 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 or 
        any other requirements set forth in a concurrent resolution on 
        the budget and may include the budgetary implications of that 
        bill or joint resolution under section 251 or 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985, as 
        applicable.''.

SEC. 9. REQUIREMENTS FOR BUDGET ACT WAIVERS IN THE HOUSE OF 
              REPRESENTATIVES.

    (a) Justification for Budget Act Waivers.--Clause 6 of rule XIII of 
the Rules of the House of Representatives 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 identification of the section being waived, the reasons why 
such waiver should be granted, and an estimated cost of the provisions 
to which the waiver applies.''.
    (b) Separate Vote to Waive Major Budget Act Point of Order.--(1) 
Section 905 of the Congressional Budget Act of 1974 is amended by 
adding at the end the following new subsection:
    ``(h)(1) It shall not be in order in the House of Representatives 
to consider a rule or order that waives the application of a major 
budget act point of order as defined in paragraph (2).
    ``(2) For the purposes of this subsection, the term `major budget 
point of order' means any point of order arising under any section 
listed in section 904.
    ``(3)(A) In order to be cognizable by the Chair, a point of order 
under the sections referenced in paragraph (2) must specify the precise 
language on which it is premised.
    ``(B) As disposition of points of order under the sections 
referenced in paragraph (2), the Chair shall put the question of 
consideration with respect to the proposition that is the subject of 
the points of order.
    ``(C) A question of consideration under the sections referenced in 
paragraph (2) shall be debatable for 10 minutes by each Member 
initiating a point of order and for 10 minutes by an opponent on each 
point of order, but shall otherwise be decided without intervening 
motion except one that the House adjourn or that the Committee of the 
Whole rise, as the case may be.
    ``(D) The disposition of the question of consideration under this 
subsection with respect to a bill or joint resolution shall be 
considered also to determine the question of consideration under this 
subsection with respect to an amendment made in order as original 
text.''.

SEC. 10. CBO SCORING OF CONFERENCE REPORTS.

    (a) The first sentence of section 402 of the Congressional Budget 
Act of 1974 is amended as follows:
            (1) Insert ``or conference report thereon,'' before ``and 
        submit''.
            (2) In paragraph (1), strike ``bill or resolution'' and 
        insert ``bill, joint resolution, 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 report, shall be included in the 
joint explanatory statement of managers accompanying such conference 
report if timely submitted before such report is filed''.

Summary: Assuring Honesty and Accountability Act of 2004 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to extend through FY 2007 the spending limits (spending caps) for the discretionary categories in new budget authority and outlays. Extends pay-as-you-go requirements through FY 2009. Extends specified budget enforcement mechanisms through FY 2009. Amends the Congressional Budget Act of 1974 concerning legislation which: (1) evades specified budget enforcement mechanisms; (2) provides direct spending (to be included in the Congressional Budget Office (CBO) analysis (scoring)); and (3) is unreported by committee (for purposes of budget point of order rules). Requires reports on legislation which provide new budget, spending, or credit authority or otherwise provide an increase or decrease in revenues or tax expenditures to include a projection by CBO of the cost of debt servicing (interest). Amends the Congressional Budget and Impoundment Control Act of 1974 to address issues of emergency spending through: (1) establishing criteria and guidelines; and (2) requiring a separate House vote on an emergency designation. Amends the Rules of the House of Representatives concerning: (1) budget compliance statements (permitting inclusion of budgetary implications); (2) requirements for budget act waivers (inclusion mandatory for bill consideration); and (3) a separate vote to waive a major budget act point of order.