TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Security and Freedom Through 
Encryption (SAFE) Act''.

SEC. 2. SALE AND USE OF ENCRYPTION.

    (a) In General.--Part I of title 18, United States Code, is amended 
by inserting after chapter 121 the following new chapter:

        ``CHAPTER 122--ENCRYPTED WIRE AND ELECTRONIC INFORMATION

``2801. Definitions.
``2802. Freedom to use encryption.
``2803. Freedom to sell encryption.
``2804. Prohibition on mandatory key escrow.
``2805. Unlawful use of encryption in furtherance of a criminal act.
``Sec. 2801. Definitions
    ``As used in this chapter--
            ``(1) the terms `person', `State', `wire communication', 
        `electronic communication', `investigative or law enforcement 
        officer', `judge of competent jurisdiction', and `electronic 
        storage' have the meanings given those terms in section 2510 of 
        this title;
            ``(2) the terms `encrypt' and `encryption' refer to the 
        scrambling of wire or electronic information using mathematical 
        formulas or algorithms in order to preserve the 
        confidentiality, integrity, or authenticity of, and prevent 
        unauthorized recipients from accessing or altering, such 
        information;
            ``(3) the term `key' means the variable information used in 
        a mathematical formula, code, or algorithm, or any component 
        thereof, used to decrypt wire or electronic information that 
        has been encrypted; and
            ``(4) the term `United States person' means--
                    ``(A) any United States citizen;
                    ``(B) any other person organized under the laws of 
                any State, the District of Columbia, or any 
                commonwealth, territory, or possession of the United 
                States; and
                    ``(C) any person organized under the laws of any 
                foreign country who is owned or controlled by 
                individuals or persons described in subparagraphs (A) 
                and (B).
``Sec. 2802. Freedom to use encryption
    ``Subject to section 2805, it shall be lawful for any person within 
any State, and for any United States person in a foreign country, to 
use any encryption, regardless of the encryption algorithm selected, 
encryption key length chosen, or implementation technique or medium 
used.
``Sec. 2803. Freedom to sell encryption
    ``Subject to section 2805, it shall be lawful for any person within 
any State to sell in interstate commerce any encryption, regardless of 
the encryption algorithm selected, encryption key length chosen, or 
implementation technique or medium used.
``Sec. 2804. Prohibition on mandatory key escrow
    ``(a) Prohibition.--No person in lawful possession of a key to 
encrypted information may be required by Federal or State law to 
relinquish to another person control of that key.
    ``(b) Exception for Access for Law Enforcement Purposes.--
Subsection (a) shall not affect the authority of any investigative or 
law enforcement officer, acting under any law in effect on the 
effective date of this chapter, to gain access to encrypted 
information.
``Sec. 2805. Unlawful use of encryption in furtherance of a criminal 
              act
    ``Any person who willfully uses encryption in furtherance of the 
commission of a criminal offense for which the person may be prosecuted 
in a court of competent jurisdiction--
            ``(1) in the case of a first offense under this section, 
        shall be imprisoned for not more than 5 years, or fined in the 
        amount set forth in this title, or both; and
            ``(2) in the case of a second or subsequent offense under 
        this section, shall be imprisoned for not more than 10 years, 
        or fined in the amount set forth in this title, or both.''.
    (b) Conforming Amendment.--The table of chapters for part I of 
title 18, United States Code, is amended by inserting after the item 
relating to chapter 33 the following new item:

``122. Encrypted wire and electronic information............    2801''.

SEC. 3. EXPORTS OF ENCRYPTION.

    (a) Amendment to Export Administration Act of 1979.--Section 17 of 
the Export Administration Act of 1979 (50 U.S.C. App. 2416) is amended 
by adding at the end thereof the following new subsection:
    ``(g) Computers and Related Equipment.--
            ``(1) General rule.--Subject to paragraphs (2), (3), and 
        (4), the Secretary shall have exclusive authority to control 
        exports of all computer hardware, software, and technology for 
        information security (including encryption), except that which 
        is specifically designed or modified for military use, 
        including command, control, and intelligence applications.
            ``(2) Items not requiring licenses.--No validated license 
        may be required, except pursuant to the Trading With The Enemy 
        Act or the International Emergency Economic Powers Act (but 
        only to the estent that the authority of such Act is not 
        exercised to extend controls imposed under this Act), for the 
        export or reexport of--
                    ``(A) any software, including software with 
                encryption capabilities--
                            ``(i) that is generally available, as is, 
                        and is designed for installation by the 
                        purchaser; or
                            ``(ii) that is in the public domain for 
                        which copyright or other protection is not 
                        available under title 17, United States Code, 
                        or that is available to the public because it 
                        is generally accessible to the interested 
                        public in any form; or
                    ``(B) any computing device solely because it 
                incorporates or employs in any form software (including 
                software with encryption capabilities) exempted from 
                any requirement for a validated license under 
                subparagraph (A).
            ``(3) Software with encryption capabilities.--The Secretary 
        shall authorize the export or reexport of software with 
        encryption capabilities for nonmilitary end-uses in any country 
        to which exports of software of similar capability are 
        permitted for use by financial institutions not controlled in 
        fact by United States persons, unless there is substantial 
        evidence that such software will be--
                    ``(A) diverted to a military end-use or an end-use 
                supporting international terrorism;
                    ``(B) modified for military or terrorist end-use; 
                or
                    ``(C) reexported without any authorization by the 
                United States that may be required under this Act.
            ``(4) Hardware with encryption capabilities.--The Secretary 
        shall authorize the export or reexport of computer hardware 
        with encryption capabilities if the Secretary determines that a 
        product offering comparable security is commercially available 
        outside the United States from a foreign supplier, without 
        effective restrictions.
            ``(5) Definitions.--As used in this subsection--
                    ``(A) the term `encryption' means the scrambling of 
                wire or electronic information using mathematical 
                formulas or algorithms in order to preserve the 
                confidentiality, integrity, or authenticity of, and 
                prevent unauthorized recipients from accessing or 
                altering, such information;
                    ``(B) the term `generally available' means, in the 
                case of software (including software with encryption 
                capabilities), software that is offered for sale, 
                license, or transfer to any person without restriction, 
                whether or not for consideration, including, but not 
                limited to, over-the-counter retail sales, mail order 
                transactions, phone order transactions, electronic 
                distribution, or sale on approval;
                    ``(C) the term `as is' means, in the case of 
                software (including software with encryption 
                capabilities), a software program that is not designed, 
                developed, or tailored by the software publisher for 
                specific purchasers, except that such purchasers may 
                supply certain installation parameters needed by the 
                software program to function properly with the 
                purchaser's system and may customize the software 
                program by choosing among options contained in the 
                software program;
                    ``(D) the term `is designed for installation by the 
                purchaser' means, in the case of software (including 
                software with encryption capabilities) that--
                            ``(i) the software publisher intends for 
                        the purchaser (including any licensee or 
                        transferee), who may not be the actual program 
                        user, to install the software program on a 
                        computing device and has supplied the necessary 
                        instructions to do so, except that the 
                        publisher may also provide telephone help line 
                        services for software installation, electronic 
                        transmission, or basic operations; and
                            ``(ii) the software program is designed for 
                        installation by the purchaser without further 
                        substantial support by the supplier;
                    ``(E) the term `computing device' means a device 
                which incorporates one or more microprocessor-based 
                central processing units that can accept, store, 
                process, or provide output of data; and
                    ``(F) the term `computer hardware', when used in 
                conjunction with information security, includes, but is 
                not limited to, computer systems, equipment, 
                application-specific assemblies, modules, and 
                integrated circuits.''.
    (b) Continuation of Export Administration Act.--For purposes of 
carrying out the amendment made by subsection (a), the Export 
Administration Act of 1979 shall be deemed to be in effect.

SOLUTION: Security and Freedom Through Encryption (SAFE) Act - Amends the Federal criminal code to permit any person within any State, and any U.S. person in a foreign country, to use any encryption regardless of the encryption algorithm selected, encryption key length chosen, or implementation technique or medium used, with an exception for the unlawful use of encryption in furtherance of a criminal act. 
Allows any person within any State to sell in interstate commerce any encryption. 
Specifies that no person in lawful possession of a key to encrypted information may be required by Federal or State law to relinquish to another person control of that key, with an exception for access for law enforcement purposes. 
Sets penalties for the willful use of encryption in furtherance of the commission of a criminal offense. 
(Sec. 3) Amends the Export Administration Act of 1979 to grant the Secretary of Commerce exclusive authority to control exports of all hardware, software, and technology for information security (including encryption), except that which is specifically designed or modified for military use. 
Prohibits requiring any validated license (with limited exceptions pursuant to the Trading With The Enemy Act or the International Emergency Economic Powers Act) for the export or reexport of any:  (1) software, including software with encryption capabilities that is generally available as is and that is designed for installation by the purchaser, or that is in the public domain for which copyright or other protection is not available or is available to the public because it is generally accessible to the public in any form; or (2) computing device solely because it incorporates or employs in any form software (including software with encryption capabilities) exempted from any requirement for a validated license under this section. 
Directs the Secretary to authorize the export or reexport of:  (1) software with encryption capabilities for nonmilitary end-uses in any country to which exports of software of similar capability are permitted for use by financial institutions not controlled in fact by U.S. persons, unless there is substantial evidence that such software will be diverted to a military end-use or an end-use supporting international terrorism, modified for military or terrorist end-use, or reexported without any U.S. authorization that may be required under the Act; and (2) computer hardware with encryption capabilities if the Secretary determines that a product offering comparable security is commercially available outside the United States from a foreign supplier without effective restrictions.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``International Insurance Capital 
Standards Accountability Act of 2015''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Secretary of the Treasury, Board of Governors of 
        the Federal Reserve System, and Director of the Federal 
        Insurance Office shall support increasing transparency at any 
        global insurance or international standard-setting regulatory 
        or supervisory forum in which they participate, including 
        supporting and advocating for greater public observer access to 
        working groups and committee meetings of the International 
        Association of Insurance Supervisors; and
            (2) to the extent that the Secretary of the Treasury, Board 
        of Governors of the Federal Reserve System, and Director of the 
        Federal Insurance Office take a position or reasonably intend 
        to take a position on an insurance proposal by a global 
        insurance regulatory or supervisory forum, the Secretary of the 
        Treasury, Board of Governors of the Federal Reserve System, and 
        Director of the Federal Insurance Office shall achieve 
        consensus positions with State insurance regulators through the 
        National Association of Insurance Commissioners, when they are 
        United States participants in negotiations on insurance issues 
        before the International Association of Insurance Supervisors, 
        Financial Stability Board, or any other international forum of 
        financial regulators or supervisors that considers such issues.

SEC. 3. INSURANCE POLICY ADVISORY COMMITTEE.

    (a) Establishment.--There is established the Insurance Policy 
Advisory Committee on International Capital Standards and Other 
Insurance Issues at the Board of Governors of the Federal Reserve 
System.
    (b) Membership.--The Commission shall be composed of not more than 
21 members, all of whom represent a diverse set of expert perspectives 
from the various sectors of the United States insurance industry, 
including life insurance, property and casualty insurance and 
reinsurance, agents and brokers, academics, consumer advocates, or 
experts on issues facing underserved insurance communities and 
consumers.

SEC. 4. REPORTS.

    (a) In General.--
            (1) Reports and testimony by secretary of the treasury and 
        chairman of the federal reserve.--
                    (A) In general.--The Secretary of the Treasury and 
                the Chairman of the Federal Reserve, or their designee, 
                shall submit to the Banking, Housing, and Urban Affairs 
                Committee of the Senate, and the Financial Services 
                Committee of the House of Representatives, an annual 
                report and provide annual testimony to the Banking, 
                Housing, and Urban Affairs Committee of the Senate, and 
                the Financial Services Committee of the House of 
                Representatives on the efforts of the Secretary and the 
                Chairman with the National Association of Insurance 
                Commissioners with respect to global insurance 
                regulatory or supervisory forums, including--
                            (i) a description of the insurance 
                        regulatory or supervisory standard-setting 
                        issues under discussion at international 
                        standard-setting bodies, including the 
                        Financial Stability Board and the International 
                        Association of Insurance Supervisors;
                            (ii) a description of the effects that 
                        proposals discussed at international insurance 
                        regulatory or supervisory forums of insurance 
                        could have on consumer and insurance markets in 
                        the United States;
                            (iii) a description of any position taken 
                        by the Secretary of the Treasury, Board of 
                        Governors of the Federal Reserve System, and 
                        Director of the Federal Insurance Office in 
                        international insurance discussions; and
                            (iv) a description of the efforts by the 
                        Secretary of the Treasury, Director of the 
                        Federal Insurance Office, and the Board of 
                        Governors of the Federal Reserve System to 
                        increase transparency at the Financial 
                        Stability Board with respect to insurance 
                        proposals and the International Association of 
                        Insurance Supervisors, including efforts to 
                        provide additional public access to working 
                        groups and committees of the International 
                        Association of Insurance Supervisors.
                    (B) Termination.--This paragraph shall terminate on 
                December 31, 2018.
            (2) Reports and testimony by national association of 
        insurance commissioners.--The National Association of Insurance 
        Commissioners may provide testimony to Congress on the issues 
        described in paragraph (1)(A).
            (3) Joint report by the chairman of the federal reserve and 
        the director of the federal insurance office.--
                    (A) In general.--The Secretary of the Treasury, 
                Chairman of the Federal Reserve, and the Director of 
                the Federal Insurance Office shall, in consultation 
                with the National Association of Insurance 
                Commissioners, complete a study on, and submit to 
                Congress a report on the results of the study, the 
                impact on consumers and markets in the United States 
                before supporting or consenting to the adoption of any 
                key elements in any international insurance proposal or 
                international insurance capital standard.
                    (B) Notice and comment.--
                            (i) Notice.--The Secretary of the Treasury, 
                        Chairman of the Federal Reserve, and the 
                        Director of the Federal Insurance Office shall 
                        provide notice before the date on which 
                        drafting the report is commenced and after the 
                        date on which the draft of the report is 
                        completed.
                            (ii) Opportunity for comment.--There shall 
                        be an opportunity for public comment for a 
                        period beginning on the date on which the 
                        report is submitted under subparagraph (A) and 
                        ending on the date that is 60 days after the 
                        date on which the report is submitted.
                    (C) Review by comptroller general.--The Secretary 
                of the Treasury, Chairman of the Federal Reserve, and 
                the Director of the Federal Insurance Office shall 
                submit to the Comptroller General of the United States 
                the report described in subparagraph (A) for review.
            (4) Report on reduction in transparency.--Not later than 
        180 days after the date of enactment of this Act, the Chairman 
        of the Federal Reserve and the Secretary of the Treasury, or 
        their designees, shall submit to Congress a report and provide 
        testimony to Congress on the efforts of the Chairman and the 
        Secretary to increase transparency at meetings of the 
        International Association of Insurance Supervisors.

SOLUTION: International Insurance Capital Standards Accountability Act of 2015 This bill establishes at the Board of Governors of the Federal Reserve System the Insurance Policy Advisory Committee on International Capital Standards and Other Insurance Issues, a 21-member committee representing diverse expert perspectives from the U.S. insurance industry (including life insurance, property and casualty insurance and reinsurance, agents and brokers, academics, consumer advocates, or experts on issues facing underserved insurance communities and consumers).  The Secretary of the Treasury and the Board Chairman shall report annually to certain congressional committees on their efforts with the National Association of Insurance Commissioners regarding global insurance regulatory or supervisory forums. The Secretary, the Board Chairman, and the Director of the Federal Insurance Office, before supporting or consenting to the adoption of any key element in any international insurance proposal or international insurance capital standard, must study its impact upon U.S. markets and consumers.  The Secretary and the Board Chairman must also report, as well as testify to Congress on their efforts to increase transparency at meetings of the International Association of Insurance Supervisors.

PROBLEM: SECTION 1. SHORT TITLE.

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

SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.

    (a) Adjustments to Discretionary Spending Limits.--In the matter 
that precedes subparagraph (A) of section 251(b)(2) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, strike ``through 
2002''.
    (b) Discretionary Spending Limit.--Section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
            (1) Strike paragraphs (1) through (16) and insert the 
        following new paragraphs:
            ``(1) with respect to fiscal year 2005, for the 
        discretionary category: $816,404,000,000 in total new budget 
        authority of which not less than $420,676,000,000 shall be for 
        the defense category and of which not less than $28,144,000,000 
        shall be for homeland security activities outside of the 
        defense category and $912,992,000,000 in total outlays of which 
        not less than $448,197,000,000 shall be for the defense 
        category and of which not less than $28,738,000,000 in total 
        outlays shall be for the homeland security category outside of 
        the defense category;
            ``(2) with respect to fiscal year 2006, for the 
        discretionary category: an amount of new budget authority equal 
        to the amount of total new budget authority specified in 
        paragraph (1) adjusted to reflect the change in Consumer Price 
        Index over the previous 12 months prior to October 1, 2004;
            ``(3) with respect to fiscal year 2007, for the 
        discretionary category: an amount of new budget authority equal 
        to the amount of total new budget authority provided under 
        paragraph (2) adjusted to reflect the change in Consumer Price 
        Index over the previous 12 months prior to October 1, 2005;
            ``(4) with respect to fiscal year 2008, for the 
        discretionary category: an amount of new budget authority equal 
        to the amount of total new budget authority specified in 
        paragraph (3) adjusted to reflect the change in Consumer Price 
        Index over the previous 12 months prior to October 1, 2006; and
            ``(5) with respect to fiscal year 2009, for the 
        discretionary category: an amount of new budget authority equal 
        to the amount of total new budget authority specified in 
        paragraph (4) adjusted to reflect the change in Consumer Price 
        Index over the previous 12 months prior to October 1, 2007;''.
    (c) Adjustments to Discretionary Spending Limits.--
            (1) Section 251(b)(2) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 is amended by striking 
        subparagraphs (C) through (H) and by inserting after 
        subparagraph (B) the following new subparagraph:
                    ``(C) Accrual accounting.--If a bill or joint 
                resolution is enacted that charges Federal agencies for 
                the full cost of accrued Federal retirement and health 
                benefits and a bill or joint resolution making 
                appropriations is enacted that provides new budget 
                authority to carry out the legislation charging Federal 
                agencies for such accrued costs, the adjustment shall 
                be equal to the reduction in mandatory budget authority 
                and the outlays flowing therefrom estimated to result 
                from the legislation charging Federal agencies for such 
                accrued costs.''.
            (2) Section 251(b)(2)(A) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 is amended by striking 
        the last sentence.
    (d) Definition of Consumer Price Index.--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 `Consumer Price Index' refers to the 
        Consumer Price Index for All Urban Consumers (all items; United 
        States city average), published by the Bureau of Labor 
        Statistics.''.

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

    Section 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows:

``SEC. 252. ENFORCING PAY-AS-YOU-GO.

    ``(a) Purpose.--The purpose of this section is to assure that any 
legislation enacted before October 1, 2009, affecting direct spending 
that increases the deficit will trigger an offsetting sequestration.
    ``(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 the amount of any net deficit increase 
        caused by all direct spending legislation enacted before 
        October 1, 2009, as calculated under paragraph (2).
            ``(2) Calculation of deficit increase.--OMB shall calculate 
        the amount of deficit increase or decrease by adding--
                    ``(A) all OMB estimates for the budget year of 
                direct spending legislation transmitted under 
                subsection (d);
                    ``(B) the estimated amount of savings in direct 
                spending programs applicable to budget year resulting 
                from the prior year's sequestration under this section 
                or, if any, as published in OMB's final sequestration 
                report for that prior year; and
                    ``(C) any net deficit increase or decrease in the 
                current year resulting from all OMB estimates for the 
                current year of direct spending legislation transmitted 
                under subsection (d) of this section that were not 
                reflected in the final OMB sequestration report for the 
                current year; and
                    ``(D) for fiscal year 2005, before making the 
                calculations required in subparagraphs (A) through (C), 
                OMB shall assume an automatic deficit increase of 
                $7,400,000,000.
    ``(c) Eliminating a Deficit Increase.--(1) The amount required to 
be sequestered in a fiscal year under subsection (b) shall be obtained 
from non-exempt direct spending accounts from actions taken in the 
following order:
            ``(A) First.--All reductions in automatic spending 
        increases specified in section 256(a) shall be made.
            ``(B) Second.--If additional reductions in direct spending 
        accounts are required to be made, the maximum reductions 
        permissible under sections 256(b) (guaranteed and direct 
        student loans) and 256(c) (foster care and adoption assistance) 
        shall be made.
            ``(C) Third.--(i) If additional reductions in direct 
        spending accounts are required to be made, each remaining non-
        exempt direct spending account shall be reduced by the uniform 
        percentage necessary to make the reductions in direct spending 
        required by paragraph (1); except that the medicare programs 
        specified in section 256(d) shall not be reduced by more than 4 
        percent and the uniform percentage applicable to all other 
        direct spending programs under this paragraph shall be 
        increased (if necessary) to a level sufficient to achieve the 
        required reduction in direct spending.
            ``(ii) For purposes of determining reductions under clause 
        (i), outlay reductions (as a result of sequestration of 
        Commodity Credit Corporation commodity price support contracts 
        in the fiscal year of a sequestration) that would occur in the 
        following fiscal year shall be credited as outlay reductions in 
        the fiscal year of the sequestration.
    ``(2) For purposes of this subsection, accounts shall be assumed to 
be at the level in the baseline for fiscal year 2005 and for fiscal 
years 2006 through 2009 at the baseline after adjusting for any 
sequester in fiscal year 2005.
    ``(d) Estimates.--
            ``(1) CBO estimates.--As soon as practicable after Congress 
        completes action on any direct spending, CBO shall provide an 
        estimate to OMB of that legislation.
            ``(2) OMB estimates.--Not later than 7 calendar days 
        (excluding Saturdays, Sundays, and legal holidays) after the 
        date of enactment of any direct spending, OMB shall transmit a 
        report to the House of Representatives and to the Senate 
        containing--
                    ``(A) the CBO estimate of that legislation;
                    ``(B) an OMB estimate of that legislation using 
                current economic and technical assumptions; and
                    ``(C) an explanation of any difference between the 
                2 estimates.
            ``(3) Significant differences.--If during the preparation 
        of the report under paragraph (2) OMB determines that there is 
        a significant difference between the OMB and CBO estimates, OMB 
        shall consult with the Committees on the Budget of the House of 
        Representatives and the Senate regarding that difference and 
        that consultation, to the extent practicable, shall include 
        written communication to such committees that affords such 
        committees the opportunity to comment before the issuance of 
        that report.
            ``(4) Scope of estimates.--The estimates under this section 
        shall include the amount of change in outlays for the current 
        year (if applicable), the budget year, and each outyear 
        excluding any amounts resulting from--
                    ``(A) full funding of, and continuation of, the 
                deposit insurance guarantee commitment in effect under 
                current estimates; and
                    ``(B) emergency provisions as designated under 
                subsection (e).
            ``(5) Scorekeeping guidelines.--OMB and CBO, after 
        consultation with each other and the Committees on the Budget 
        of the House of Representatives and the Senate, shall--
                    ``(A) determine common scorekeeping guidelines; and
                    ``(B) in conformance with such guidelines, prepare 
                estimates under this section.
    ``(e) Emergency Legislation.--If a provision of direct spending 
legislation is enacted that the President designates as an emergency 
requirement and that the Congress so designates in statute, the amounts 
of new budget authority, outlays, and receipts in all fiscal years 
resulting from that provision shall be designated as an emergency 
requirement in the reports required under subsection (d) of this 
section.''.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Expiration.--(1) Section 254(c)(2) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking ``2002'' 
and inserting ``2009''.
    (2) Section 254(f)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by striking ``2002'' and 
inserting ``2009''.
    (b) Expiration.--Section 275(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking ``2002'' 
and inserting ``2009''.

SEC. 5. EMERGENCY SPENDING LEGISLATION AND THE BASELINE.

    (a) In General.--Section 257(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by inserting ``, 
except for emergency appropriations covered by section 251(b)(2)(A) and 
emergency legislation covered by section 252(e)'' before the period.
    (b) Direct Spending and Receipts.--Section 257(b)(2) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new subparagraph:
                    ``(E) Emergency legislation covered by section 
                252(e) shall not be extended in the baseline.''.
    (c) Discretionary Appropriations.--Section 257(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by adding 
at the end the following new paragraph:
            ``(7) Emergency appropriations covered by section 
        251(b)(2)(A) shall not be extended in the baseline.''.

SEC. 6. OMB EMERGENCY CRITERIA.

    (a) Definition of Emergency.--Section 3 of the Congressional Budget 
and Impoundment Control Act of 1974 (as amended by section 2(d) is 
further amended by adding at the end the following new paragraph:
            ``(12)(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 underlying situation 
                is--
                            ``(i) sudden, which means quickly coming 
                        into being or not building up over time;
                            ``(ii) urgent, which means a pressing and 
                        compelling need requiring immediate action;
                            ``(iii) unforeseen, which means not 
                        predicted or anticipated as an emerging need; 
                        and
                            ``(iv) temporary, which means not of a 
                        permanent duration.''.
    (b) Conforming Amendment.--Section 250(c) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended by adding at the 
end the following new paragraph:
            ``(20) The term `emergency' has the meaning given to such 
        term in section 3 of the Congressional Budget and Impoundment 
        Control Act of 1974.''.

SEC. 7. RULE RESPECTING DESIGNATION OF LEGISLATIVE PROVISION AS AN 
              EMERGENCY.

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

 ``rule respecting designation of legislative provision as an emergency

    ``Sec. 316. (a) Guidance.--In making a designation of a provision 
of legislation as an emergency requirement under section 251(b)(2)(A) 
or 252(e) of the Balanced Budget and Emergency Deficit Control Act of 
1985, the committee report and any statement of managers accompanying 
that legislation shall analyze whether a proposed emergency requirement 
meets the definition of an `emergency' set out in section 3 of the 
Congressional Budget and Impoundment Control Act of 1974.
    ``(b) In General.--It shall not be in order in the Senate or the 
House of Representatives to consider any bill, joint resolution, or 
conference report that contains an emergency designation under section 
251(b)(2)(A) or 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 unless the proposed emergency requirement meets the 
definition of an `emergency' set out in section 3 of the Congressional 
Budget and Impoundment Control Act of 1974.
    ``(c) Waiver and Appeal in the Senate.--This section may be waived 
or suspended in the Senate only by an affirmative vote of three-fifths 
of the Members, duly chosen and sworn. An affirmative vote of three-
fifths of the Members of the Senate, duly chosen and sworn, shall be 
required in the Senate to sustain an appeal of the ruling of the Chair 
on a point of order raised under this section.
    ``(d) Enforcement in the House of Representatives.--It shall not be 
in order in the House of Representatives to consider a rule or order 
that waives the application of subsection (b).
    ``(e) Disposition of Points of Order in the House.--As disposition 
of a point of order under subsection (b) or subsection (d), the Chair 
shall put the question of consideration with respect to the proposition 
that is the subject of the point of order. A question of consideration 
under this section shall be debatable for 10 minutes by the Member 
initiating the point of order and for 10 minutes by an opponent of the 
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.
    ``(f) Effect on Amendment in Order as Original Text in the House.--
The disposition of the question of consideration under this section 
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) 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 315 the 
following new item:

``Sec. 316. Rule respecting designation of legislative provision as an 
                            emergency.''.

SOLUTION:
Common Sense Spending Act of 2004 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to extend the discretionary spending limits through FY 2009, with adjustments for inflation each year starting FY 2006.

Provides that if a bill or joint resolution is enacted that charges Federal agencies for the full cost of accrued Federal retirement and health benefits, and a bill or joint resolution making appropriations is enacted that provides new budget authority to carry out such legislation, the adjustment shall be equal to the reduction in mandatory budget authority and the outlays flowing therefrom estimated to result from the legislation.

Repeals the exemption of appropriations to cover agricultural crop disaster assistance from the application of mandatory adjustments in discretionary spending limits in a sequestration report and subsequent budgets for emergency appropriations for discretionary accounts. (Thus applies such mandatory adjustments in the total amount of emergency appropriations to appropriations covering agricultural crop disaster assistance.)

Revises PAYGO requirements to remove receipts from the requirement that any legislation enacted before FY 2009 affecting direct spending (currently, direct spending and receipts) that increases the deficit will trigger an offsetting sequestration. Revises the formula for calculating the amount of deficit increase or decrease by the Office of Management and Budget (OMB) to require OMB, before making such calculations for FY 2005, to assume an automatic deficit increase of $7.4 billion.

States that, with respect to eliminating a deficit increase, accounts shall be assumed to be at the level in the baseline for FY 2005 and for FY 2006 through 2009 at the baseline after adjusting for any sequester in FY 2005.

Revises the definition of baseline to exclude emergency appropriations and legislation.

Prohibits such emergency appropriations from being extended in the baseline.

Amends the Congressional Budget and Impoundment Control Act of 1974 to define: (1) "emergency" as an unanticipated situation that 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 (2) "unanticipated" as an underlying situation that is sudden, which means quickly coming into being or not building up over time, urgent, which means a pressing and compelling need requiring immediate action, unforeseen, which means not predicted or anticipated as an emerging need, and temporary, which means not of a permanent duration.

Outlines the rule for designation of a legislative provision as an emergency.