113 HR 1872 : Budget and Accounting Transparency Act of 2014
U.S. House of Representatives
2014-04-08
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Budget and Accounting Transparency Act of 2014
.<enum>I</enum><header display-inline="yes-display-inline">Fair value estimates</header><section commented="no" display-inline="no-display-inline" id="HACCBBE9B497C401D8F2AB0D840192D16" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Credit reform</header><subsection commented="no" display-inline="no-display-inline" id="H90842EB61D5E4F008928FF8D615CB8F1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Title V of the Congressional Budget Act of 1974 is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="H2517079DAD8E472A83456A36F064F370" style="OLC"><title commented="no" id="H3C70C904E3DC4E8DB67B819C8B346E08" level-type="subsequent"><enum>V</enum><header display-inline="yes-display-inline">Fair value</header><section commented="no" display-inline="no-display-inline" id="HF10AE8A843414E918D1BE69570B56A9E" section-type="subsequent-section"><enum>500.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Fair Value Accounting Act of 2014</short-title></quote>.</text></section><section commented="no" display-inline="no-display-inline" id="HB3E30850770F42FFB885805DB9275D73" section-type="subsequent-section"><enum>501.</enum><header display-inline="yes-display-inline">Purposes</header><text display-inline="no-display-inline">The purposes of this title are to—</text><paragraph commented="no" display-inline="no-display-inline" id="H2B72E5606BD04B6AA2248DFCB9489D04"><enum>(1)</enum><text display-inline="yes-display-inline">measure more accurately the costs of Federal credit programs by accounting for them on a fair value
basis;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFADEBD1BF97F438BB2FC286238A7DEAC"><enum>(2)</enum><text display-inline="yes-display-inline">place the cost of credit programs on a budgetary basis equivalent to other Federal spending;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF5BA7CDBAA4C4B05BEBB2D227F659580"><enum>(3)</enum><text display-inline="yes-display-inline">encourage the delivery of benefits in the form most appropriate to the needs of beneficiaries; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF288815368CA4AC692CFB0DB84980D6F"><enum>(4)</enum><text display-inline="yes-display-inline">improve the allocation of resources among Federal programs.</text></paragraph></section><section commented="no" display-inline="no-display-inline" id="HD83216339B5B4C8AA13F0930A92E9602" section-type="subsequent-section"><enum>502.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this title:</text><paragraph commented="no" display-inline="no-display-inline" id="HFACEBD0F6C0E41FD8766AC779DEE36BB"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>direct loan</term> means a disbursement of funds by the Government to a non-Federal borrower under a contract that
requires the repayment of such funds with or without interest. The term
includes the purchase of, or participation in, a loan made by another
lender and financing arrangements that defer payment for more than 90
days, including the sale of a Government asset on credit terms. The term
does not include the acquisition of a federally guaranteed loan in
satisfaction of default claims or the price support loans of the Commodity
Credit Corporation.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF075A1BF87894CBD98E44019D6A6784A"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>direct loan obligation</term> means a binding agreement by a Federal agency to make a direct loan when specified conditions are
fulfilled by the borrower.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC9C0130F23D1424FB3F911F28237CBC5"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>loan guarantee</term> means any guarantee, insurance, or other pledge with respect to the payment of all or a part of
the principal or interest on any debt obligation of a non-Federal borrower
to a non-Federal lender, but does not include the insurance of deposits,
shares, or other withdrawable accounts in financial institutions.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7FD6C522F1D148DCA0CC94D2B7B07928"><enum>(4)</enum><text display-inline="yes-display-inline">The term <term>loan guarantee commitment</term> means a binding agreement by a Federal agency to make a loan guarantee when specified conditions
are fulfilled by the borrower, the lender, or any other party to the
guarantee agreement.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3AA03EAA20FF453CAB1BD77431D9E1BB"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H87985EF961534DFBB1A8E34D88B7F542"><enum>(A)</enum><text display-inline="yes-display-inline">The term <term>cost</term> means the sum of the Treasury discounting component and the risk component of a direct loan or
loan guarantee, or a modification thereof.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H385CCB54DE284B1AA4067401C0036CA8" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The Treasury discounting component shall be the estimated long-term cost to the Government of a
direct loan or loan guarantee, or modification thereof, calculated on a
net present value basis, excluding administrative costs and any incidental
effects on governmental receipts or outlays.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H457B22BB67084A6E9E54B2C57AB35897" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">The risk component shall be an amount equal to the difference between—</text><clause commented="no" display-inline="no-display-inline" id="HB8B5EDABDF404F0FB77EDAE860CAA433"><enum>(i)</enum><text display-inline="yes-display-inline">the estimated long-term cost to the Government of a direct loan or loan guarantee, or modification
thereof, estimated on a fair value basis, applying the guidelines set
forth by the Financial Accounting Standards Board in Financial Accounting
Standards #157, or a successor thereto, excluding administrative costs and
any incidental effects on governmental receipts or outlays; and</text></clause><clause commented="no" display-inline="no-display-inline" id="H456A25AA57344495B5E822A519B76F84"><enum>(ii)</enum><text display-inline="yes-display-inline">the Treasury discounting component of such direct loan or loan guarantee, or modification thereof.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H771D67AC979A4081A37E81F7771241E0" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">The Treasury discounting component of a direct loan shall be the net present value, at the time
when the direct loan is disbursed, of the following estimated cash flows:</text><clause commented="no" display-inline="no-display-inline" id="H3BFA31E503A04C12AA509869CFAE9DC6"><enum>(i)</enum><text display-inline="yes-display-inline">Loan disbursements.</text></clause><clause commented="no" display-inline="no-display-inline" id="HD62653FD4D0449BD930C425075A69822"><enum>(ii)</enum><text display-inline="yes-display-inline">Repayments of principal.</text></clause><clause commented="no" display-inline="no-display-inline" id="HB373E508A82A4B138996B4A541CB50C9"><enum>(iii)</enum><text display-inline="yes-display-inline">Essential preservation expenses, payments of interest and other payments by or to the Government
over the life of the loan after adjusting for estimated defaults,
prepayments, fees, penalties, and other recoveries, including the effects
of changes in loan terms resulting from the exercise by the borrower of an
option included in the loan contract.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B7476B41F33424EABD3FCC23CA1A14A" indent="up1"><enum>(E)</enum><text display-inline="yes-display-inline">The Treasury discounting component of a loan guarantee shall be the net present value, at the time
when the guaranteed loan is disbursed, of the following estimated cash
flows:</text><clause commented="no" display-inline="no-display-inline" id="H0D0DAA04D0D94E30B49A00BF3E7D681B"><enum>(i)</enum><text display-inline="yes-display-inline">Payments by the Government to cover defaults and delinquencies, interest subsidies, essential
preservation expenses, or other payments.</text></clause><clause commented="no" display-inline="no-display-inline" id="H607EE14E58A048CCA4A6E212333734EE"><enum>(ii)</enum><text display-inline="yes-display-inline">Payments to the Government including origination and other fees, penalties, and recoveries,
including the effects of changes in loan terms resulting from the exercise
by the guaranteed lender of an option included in the loan guarantee
contract, or by the borrower of an option included in the guaranteed loan
contract.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBAD76479E9D04B84A914FCB65D61045C" indent="up1"><enum>(F)</enum><text display-inline="yes-display-inline">The cost of a modification is the sum of—</text><clause commented="no" display-inline="no-display-inline" id="H28B51BA2904147DDB428F8658AF9A328"><enum>(i)</enum><text display-inline="yes-display-inline">the difference between the current estimate of the Treasury discounting component of the remaining
cash flows under the terms of a direct loan or loan guarantee and the
current estimate of the Treasury discounting component of the remaining
cash flows under the terms of the contract, as modified; and</text></clause><clause commented="no" display-inline="no-display-inline" id="H67244B8DEAA448F883E5E44E03357D6C"><enum>(ii)</enum><text display-inline="yes-display-inline">the difference between the current estimate of the risk component of the remaining cash flows under
the terms of a direct loan or loan guarantee and the current estimate of
the risk component of the remaining cash flows under the terms of the
contract as modified.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4BF3513942FF479AB33D857D129CFFDE" indent="up1"><enum>(G)</enum><text display-inline="yes-display-inline">In estimating Treasury discounting components, the discount rate shall be the average interest rate
on marketable Treasury securities of similar duration to the cash flows of
the direct loan or loan guarantee for which the estimate is being made.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB5313267B3D24CBFB7DDA77B2C3CFF69" indent="up1"><enum>(H)</enum><text display-inline="yes-display-inline">When funds are obligated for a direct loan or loan guarantee, the estimated cost shall be based on
the current assumptions, adjusted to incorporate the terms of the loan
contract, for the fiscal year in which the funds are obligated.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72D1664A63ED4BB29488917C5344244D"><enum>(6)</enum><text display-inline="yes-display-inline">The term <term>program account</term> means the budget account into which an appropriation to cover the cost of a direct loan or loan
guarantee program is made and from which such cost is disbursed to the
financing account.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H546F000BA9B8493983B58170F770896E"><enum>(7)</enum><text display-inline="yes-display-inline">The term <term>financing account</term> means the nonbudget account or accounts associated with each program account which holds balances,
receives the cost payment from the program account, and also includes all
other cash flows to and from the Government resulting from direct loan
obligations or loan guarantee commitments made on or after October 1,
1991.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8CA97DFCD26F4ACCB013D0E0A5AA4C2E"><enum>(8)</enum><text display-inline="yes-display-inline">The term <term>liquidating account</term> means the budget account that includes all cash flows to and from the Government resulting from
direct loan obligations or loan guarantee commitments made prior to
October 1, 1991. These accounts shall be shown in the budget on a cash
basis.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD48D578BA8E5426AA0ACFFB4263E1845"><enum>(9)</enum><text display-inline="yes-display-inline">The term <term>modification</term> means any Government action that alters the estimated cost of an outstanding direct loan (or
direct loan obligation) or an outstanding loan guarantee (or loan
guarantee commitment) from the current estimate of cash flows. This
includes the sale of loan assets, with or without recourse, and the
purchase of guaranteed loans (or direct loan obligations) or loan
guarantees (or loan guarantee commitments) such as a change in collection
procedures.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H69E0141599A94D60B53A18FF4AC70B65"><enum>(10)</enum><text display-inline="yes-display-inline">The term <term>current</term> has the same meaning as in section 250(c)(9) of the Balanced Budget and Emergency Deficit Control
Act of 1985.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF30CFCF0EFE849AAAFF5874D0F51D0B1"><enum>(11)</enum><text display-inline="yes-display-inline">The term <term>Director</term> means the Director of the Office of Management and Budget.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9540D97CFFB648EBA6EED25CEE763FEA"><enum>(12)</enum><text display-inline="yes-display-inline">The term <term>administrative costs</term> means costs related to program management activities, but does not include essential preservation
expenses.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB746ED2B27A24B5CB3EC9DCB31113C31"><enum>(13)</enum><text display-inline="yes-display-inline">The term <term>essential preservation expenses</term> means servicing and other costs that are essential to preserve the value of loan assets or
collateral.</text></paragraph></section><section commented="no" display-inline="no-display-inline" id="HEE973BBC853940CC9124E32E507C5EA5" section-type="subsequent-section"><enum>503.</enum><header display-inline="yes-display-inline">OMB and CBO analysis, coordination, and review</header><subsection commented="no" display-inline="no-display-inline" id="H545B0B59798A47ECBE638ED090E46110"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For the executive branch, the Director shall be responsible for coordinating the estimates required
by this title. The Director shall consult with the agencies that
administer direct loan or loan guarantee programs.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H4ED368A3FB0B4A74A68CFAE0A259D5B0"><enum>(b)</enum><header display-inline="yes-display-inline">Delegation</header><text display-inline="yes-display-inline">The Director may delegate to agencies authority to make estimates of costs. The delegation of
authority shall be based upon written guidelines, regulations, or criteria
consistent with the definitions in this title.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H462FFC9FBEAB4BF583112DB48D1F98E9"><enum>(c)</enum><header display-inline="yes-display-inline">Coordination with the Congressional Budget Office</header><text display-inline="yes-display-inline">In developing estimation guidelines, regulations, or criteria to be used by Federal agencies, the
Director shall consult with the Director of the Congressional Budget
Office.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="HD12958D165B14DBAA4645F170E6A72B4"><enum>(d)</enum><header display-inline="yes-display-inline">Improving cost estimates</header><text display-inline="yes-display-inline">The Director and the Director of the Congressional Budget Office shall coordinate the development
of more accurate data on historical performance and prospective risk of
direct loan and loan guarantee programs. They shall annually review the
performance of outstanding direct loans and loan guarantees to improve
estimates of costs. The Office of Management and Budget and the
Congressional Budget Office shall have access to all agency data that may
facilitate the development and improvement of estimates of costs.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H1058580200A14CC5871C603037347EE5"><enum>(e)</enum><header display-inline="yes-display-inline">Historical credit programs costs</header><text display-inline="yes-display-inline">The Director shall review, to the extent possible, historical data and develop the best possible
estimates of adjustments that would convert aggregate historical budget
data to credit reform accounting.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H347F2EF1FF694181BF821AE672216B22" section-type="subsequent-section"><enum>504.</enum><header display-inline="yes-display-inline">Budgetary treatment</header><subsection commented="no" display-inline="no-display-inline" id="HDC7D39D7956A45DD95C5AF2B611C75AB"><enum>(a)</enum><header display-inline="yes-display-inline">President’s budget</header><text display-inline="yes-display-inline">Beginning with fiscal year 2017, the President’s budget shall reflect the costs of direct loan and
loan guarantee programs. The budget shall also include the planned level
of new direct loan obligations or loan guarantee commitments associated
with each appropriations request. For each fiscal year within the
five-fiscal year period beginning with fiscal year 2017, such budget shall
include, on an agency-by-agency basis, subsidy estimates and costs of
direct loan and loan guarantee programs with and without the risk
component.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="HF80223CDF086418B86FDA9F4FF10FDD0"><enum>(b)</enum><header display-inline="yes-display-inline">Appropriations required</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, new direct loan obligations may be incurred and new
loan guarantee commitments may be made for fiscal year 2017 and thereafter
only to the extent that—</text><paragraph commented="no" display-inline="no-display-inline" id="H642B6DDEAFB94EBC88190199ADF3B5E7"><enum>(1)</enum><text display-inline="yes-display-inline">new budget authority to cover their costs is provided in advance in an appropriation Act;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95A94C75799249B2B09049745270FFD3"><enum>(2)</enum><text display-inline="yes-display-inline">a limitation on the use of funds otherwise available for the cost of a direct loan or loan
guarantee program has been provided in advance in an appropriation Act; or</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAA4F916DC1FD4C84B5D0A00B8DB16700"><enum>(3)</enum><text display-inline="yes-display-inline">authority is otherwise provided in appropriation Acts.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD4CD0459FE0B4358B746DA814A738F5E"><enum>(c)</enum><header display-inline="yes-display-inline">Exemption for direct spending programs</header><text display-inline="yes-display-inline">Subsections (b) and (e) shall not apply to—</text><paragraph commented="no" display-inline="no-display-inline" id="HA1376DCC7A2F43359D1BFB42F20D94E0"><enum>(1)</enum><text display-inline="yes-display-inline">any direct loan or loan guarantee program that constitutes an entitlement (such as the guaranteed
student loan program or the veteran’s home loan guaranty program);</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCD34763621ED460D829FB3CEADCCAECB"><enum>(2)</enum><text display-inline="yes-display-inline">the credit programs of the Commodity Credit Corporation existing on the date of enactment of this
title; or</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H08202DAFE86C4AFA97CD2BD81B5CC5A9"><enum>(3)</enum><text display-inline="yes-display-inline">any direct loan (or direct loan obligation) or loan guarantee (or loan guarantee commitment) made
by the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE4729D0DF04D4287BB257476CCE98A89"><enum>(d)</enum><header display-inline="yes-display-inline">Budget accounting</header><paragraph commented="no" display-inline="no-display-inline" id="HDE24ED13CEB4455AA6913DEDAE8581F2"><enum>(1)</enum><text display-inline="yes-display-inline">The authority to incur new direct loan obligations, make new loan guarantee commitments, or modify
outstanding direct loans (or direct loan obligations) or loan guarantees
(or loan guarantee commitments) shall constitute new budget authority in
an amount equal to the cost of the direct loan or loan guarantee in the
fiscal year in which definite authority becomes available or indefinite
authority is used. Such budget authority shall constitute an obligation of
the program account to pay to the financing account.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H02C6D412288846DCA30375D96332226E"><enum>(2)</enum><text display-inline="yes-display-inline">The outlays resulting from new budget authority for the cost of direct loans or loan guarantees
described in paragraph (1) shall be paid from the program account into the
financing account and recorded in the fiscal year in which the direct loan
or the guaranteed loan is disbursed or its costs altered.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB770DB8C04D74F2B93C94EE1D90C06C3"><enum>(3)</enum><text display-inline="yes-display-inline">All collections and payments of the financing accounts shall be a means of financing.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB3FAC3EE60F24359815A866C35DDDE77"><enum>(e)</enum><header display-inline="yes-display-inline">Modifications</header><text display-inline="yes-display-inline">An outstanding direct loan (or direct loan obligation) or loan guarantee (or loan guarantee
commitment) shall not be modified in a manner that increases its costs
unless budget authority for the additional cost has been provided in
advance in an appropriation Act.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H56896AF14FC44E5A9DFBB37B94C82C5A"><enum>(f)</enum><header display-inline="yes-display-inline">Reestimates</header><text display-inline="yes-display-inline">When the estimated cost for a group of direct loans or loan guarantees for a given program made in
a single fiscal year is re-estimated in a subsequent year, the difference
between the reestimated cost and the previous cost estimate shall be
displayed as a distinct and separately identified subaccount in the
program account as a change in program costs and a change in net interest.
There is hereby provided permanent indefinite authority for these
re-estimates.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H172326FC0B18441A8C69C0E04D8F7B83"><enum>(g)</enum><header display-inline="yes-display-inline">Administrative expenses</header><text display-inline="yes-display-inline">All funding for an agency’s administrative costs associated with a direct loan or loan guarantee
program shall be displayed as distinct and separately identified
subaccounts within the same budget account as the program’s cost.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H8774A8E74DFF443DB3359E3801D074F7" section-type="subsequent-section"><enum>505.</enum><header display-inline="yes-display-inline">Authorizations</header><subsection commented="no" display-inline="no-display-inline" id="H1019D225A8C54718AB42A5F61E1BE783"><enum>(a)</enum><header display-inline="yes-display-inline">Authorization for financing accounts</header><text display-inline="yes-display-inline">In order to implement the accounting required by this title, the President is authorized to
establish such non-budgetary accounts as may be appropriate.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="HE8934BF4AE934169A8DCE745E11A5A08"><enum>(b)</enum><header display-inline="yes-display-inline">Treasury transactions with the financing accounts</header><paragraph commented="no" display-inline="no-display-inline" id="H472059FC1C584F11952ED9DC9FF8FD06"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall borrow from, receive from, lend to, or pay to the financing
accounts such amounts as may be appropriate. The Secretary of the Treasury
may prescribe forms and denominations, maturities, and terms and
conditions for the transactions described in the preceding sentence,
except that the rate of interest charged by the Secretary on lending to
financing accounts (including amounts treated as lending to financing
accounts by the Federal Financing Bank (hereinafter in this subsection
referred to as the <term>Bank</term>) pursuant to section 405(b)) and the rate of interest paid to financing accounts on uninvested
balances in financing accounts shall be the same as the rate determined
pursuant to section 502(5)(G).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3440DF9175E4E78B69BCEC89BDE0B83"><enum>(2)</enum><header display-inline="yes-display-inline">Loans</header><text display-inline="yes-display-inline">For guaranteed loans financed by the Bank and treated as direct loans by a Federal agency pursuant
to section 406(b)(1), any fee or interest surcharge (the amount by which
the interest rate charged exceeds the rate determined pursuant to section
502(5)(G) that the Bank charges to a private borrower pursuant to section
6(c) of the Federal Financing Bank Act of 1973 shall be considered a cash
flow to the Government for the purposes of determining the cost of the
direct loan pursuant to section 502(5). All such amounts shall be credited
to the appropriate financing account.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFFF36DD793934432B0754C9415D20EFF"><enum>(3)</enum><header display-inline="yes-display-inline">Reimbursement</header><text display-inline="yes-display-inline">The Bank is authorized to require reimbursement from a Federal agency to cover the administrative
expenses of the Bank that are attributable to the direct loans financed
for that agency. All such payments by an agency shall be considered
administrative expenses subject to section 504(g). This subsection shall
apply to transactions related to direct loan obligations or loan guarantee
commitments made on or after October 1, 1991.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H60079E240F6E4AFEAE5BBA0F19911947"><enum>(4)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">The authorities provided in this subsection shall not be construed to supersede or override the
authority of the head of a Federal agency to administer and operate a
direct loan or loan guarantee program.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D34A420D6F644869D79B217EDB417F3"><enum>(5)</enum><header display-inline="yes-display-inline">Title 31</header><text display-inline="yes-display-inline">All of the transactions provided in the subsection shall be subject to the provisions of subchapter
II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA19FB24074104982B9266E79EE6EAC0A"><enum>(6)</enum><header display-inline="yes-display-inline">Treatment of cash balances</header><text display-inline="yes-display-inline">Cash balances of the financing accounts in excess of current requirements shall be maintained in a
form of uninvested funds and the Secretary of the Treasury shall pay
interest on these funds. The Secretary of the Treasury shall charge (or
pay if the amount is negative) financing accounts an amount equal to the
risk component for a direct loan or loan guarantee, or modification
thereof. Such amount received by the Secretary of the Treasury shall be a
means of financing and shall not be considered a cash flow of the
Government for the purposes of section 502(5).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7528001BD04F4F88A72D37DD310AA474"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization for liquidating accounts</header><paragraph commented="no" display-inline="yes-display-inline" id="HBB86FA778E1A43969A301088DDD9EBA9"><enum>(1)</enum><text display-inline="yes-display-inline">Amounts in liquidating accounts shall be available only for payments resulting from direct loan
obligations or loan guarantee commitments made prior to October 1, 1991,
for—</text><subparagraph commented="no" display-inline="no-display-inline" id="H2DE639FA6F5F47D09F35B43F2BBB2B5E" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">interest payments and principal repayments to the Treasury or the Federal Financing Bank for
amounts borrowed;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0AB0116734B142F1B30588805AC54D41" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">disbursements of loans;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H321A955730914A749CB29007E6D9C1EF" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">default and other guarantee claim payments;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H05BDE0573DA542C294F832CDF627BEC0" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">interest supplement payments;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE9031B47A2C7458580CC2BF5DFA5BAB9" indent="up1"><enum>(E)</enum><text display-inline="yes-display-inline">payments for the costs of foreclosing, managing, and selling collateral that are capitalized or
routinely deducted from the proceeds of sales;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H05917B679D3C47FA8E3CC05128B3F166" indent="up1"><enum>(F)</enum><text display-inline="yes-display-inline">payments to financing accounts when required for modifications;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6C90F87D7A4248E8A625DFA41899278B" indent="up1"><enum>(G)</enum><text display-inline="yes-display-inline">administrative costs and essential preservation expenses, if—</text><clause commented="no" display-inline="no-display-inline" id="H5947D444CB524587B9614B49D6FE4C13"><enum>(i)</enum><text display-inline="yes-display-inline">amounts credited to the liquidating account would have been available for administrative costs and
essential preservation expenses under a provision of law in effect prior
to October 1, 1991; and</text></clause><clause commented="no" display-inline="no-display-inline" id="HE5914736893F42C8BC2A1DA95D3394AD"><enum>(ii)</enum><text display-inline="yes-display-inline">no direct loan obligation or loan guarantee commitment has been made, or any modification of a
direct loan or loan guarantee has been made, since September 30, 1991; or</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B114CA87284428183C0229896336736" indent="up1"><enum>(H)</enum><text display-inline="yes-display-inline">such other payments as are necessary for the liquidation of such direct loan obligations and loan
guarantee commitments.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC87CECEC70474223BFD463D20720ACDE" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Amounts credited to liquidating accounts in any year shall be available only for payments required
in that year. Any unobligated balances in liquidating accounts at the end
of a fiscal year shall be transferred to miscellaneous receipts as soon as
practicable after the end of the fiscal year.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD729626EF6CA4305BFC0809AA448859A" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">If funds in liquidating accounts are insufficient to satisfy obligations and commitments of such
accounts, there is hereby provided permanent, indefinite authority to make
any payments required to be made on such obligations and commitments.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6128B482F46B498FAD3424783359AEC7"><enum>(d)</enum><header display-inline="yes-display-inline">Reinsurance</header><text display-inline="yes-display-inline">Nothing in this title shall be construed as authorizing or requiring the purchase of insurance or
reinsurance on a direct loan or loan guarantee from private insurers. If
any such reinsurance for a direct loan or loan guarantee is authorized,
the cost of such insurance and any recoveries to the Government shall be
included in the calculation of the cost.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H7E07118AE8FD409DA4DCC2B80149B27B"><enum>(e)</enum><header display-inline="yes-display-inline">Eligibility and assistance</header><text display-inline="yes-display-inline">Nothing in this title shall be construed to change the authority or the responsibility of a Federal
agency to determine the terms and conditions of eligibility for, or the
amount of assistance provided by a direct loan or a loan guarantee.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H095F2AEA62D8457CA063F9558041166E" section-type="subsequent-section"><enum>506.</enum><header display-inline="yes-display-inline">Treatment of deposit insurance and agencies and other insurance programs</header><text display-inline="no-display-inline">This title shall not apply to the credit or insurance activities of the Federal Deposit Insurance
Corporation, National Credit Union Administration, Resolution Trust
Corporation, Pension Benefit Guaranty Corporation, National Flood
Insurance, National Insurance Development Fund, Crop Insurance, or
Tennessee Valley Authority.</text></section><section commented="no" display-inline="no-display-inline" id="HF3FBA535DC984F2B941A5E36816DB29D" section-type="subsequent-section"><enum>507.</enum><header display-inline="yes-display-inline">Effect on other laws</header><subsection commented="no" display-inline="no-display-inline" id="H5125DA3690214C0B9B3A498B14293DFA"><enum>(a)</enum><header display-inline="yes-display-inline">Effect on other laws</header><text display-inline="yes-display-inline">This title shall supersede, modify, or repeal any provision of law enacted prior to the date of
enactment of this title to the extent such provision is inconsistent with
this title. Nothing in this title shall be construed to establish a credit
limitation on any Federal loan or loan guarantee program.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="HEF5687580E6541509A82C30151ACC4B1"><enum>(b)</enum><header display-inline="yes-display-inline">Crediting of collections</header><text display-inline="yes-display-inline">Collections resulting from direct loans obligated or loan guarantees committed prior to October 1,
1991, shall be credited to the liquidating accounts of Federal agencies.
Amounts so credited shall be available, to the same extent that they were
available prior to the date of enactment of this title, to liquidate
obligations arising from such direct loans obligated or loan guarantees
committed prior to October 1, 1991, including repayment of any obligations
held by the Secretary of the Treasury or the Federal Financing Bank. The
unobligated balances of such accounts that are in excess of current needs
shall be transferred to the general fund of the Treasury. Such transfers
shall be made from time to time but, at least once each year.</text></subsection></section>.(b)The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control
Act of 1974 is amended by striking the items relating to title V and
inserting the following:Title V—Fair valueSec. 500. Short title.Sec. 501. Purposes.Sec. 502. Definitions.Sec. 503. OMB and CBO analysis, coordination, and review.Sec. 504. Budgetary treatment.Sec. 505. Authorizations.Sec. 506. Treatment of deposit insurance and agencies and other insurance programs.Sec. 507. Effect on other laws..102.(a)Section 251(b)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by
adding at the end the following new sentence: A change in discretionary spending solely as a result of the amendment to title V of the
Congressional Budget Act of 1974 made by the Budget and Accounting Transparency Act of 2014 shall be treated as a change of concept under this paragraph.
.(b)Before adjusting the discretionary caps pursuant to the authority provided in subsection (a), the
Office of Management and Budget shall report to the Committees on the
Budget of the House of Representatives and the Senate on the amount of
that adjustment, the methodology used in determining the size of that
adjustment, and a program-by-program itemization of the components of that
adjustment.(c)The Office of Management and Budget shall not make an adjustment pursuant to the authority provided
in subsection (a) sooner than 60 days after providing the report required
in subsection (b).103.The amendments made by section 101 shall take effect beginning with fiscal year 2017.<enum>II</enum><header display-inline="yes-display-inline">Budgetary treatment</header><section commented="no" display-inline="no-display-inline" id="H48CA8A279EE2496B94BF80773386C5EC" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">CBO and OMB studies respecting budgeting for costs of Federal insurance programs</header><text display-inline="no-display-inline">Not later than 1 year after the date of enactment of this Act, the Directors of the Congressional
Budget Office and of the Office of Management and Budget shall each
prepare a study and make recommendations to the Committees on the Budget
of the House of Representatives and the Senate as to the feasability of
applying fair value concepts to budgeting for the costs of Federal
insurance programs.</text></section><section commented="no" display-inline="no-display-inline" id="HE13A80CF5C44446597D52C327DBBBB61" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">On-budget status of Fannie Mae and Freddie Mac</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, the receipts and disbursements, including the
administrative expenses, of the Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation shall be counted as new budget
authority, outlays, receipts, or deficit or surplus for purposes of—</text><paragraph commented="no" display-inline="no-display-inline" id="H3F0E5CB0014E4365B1B1239558F482FD"><enum>(1)</enum><text display-inline="yes-display-inline">the budget of the United States Government as submitted by the President;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8EB878E86CE04CE8B20037D638860D25"><enum>(2)</enum><text display-inline="yes-display-inline">the congressional budget; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3C8C79712DC047FFA4FC5354CB9B56CC"><enum>(3)</enum><text display-inline="yes-display-inline">the Balanced Budget and Emergency Deficit Control Act of 1985.</text></paragraph></section><section commented="no" display-inline="no-display-inline" id="HE511FB1724844AF8899EBF8503BE6D18" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="no-display-inline">Section 202 shall not apply with respect to an enterprise (as such term is defined in section 1303
of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>)) after the date that all of the following have occurred:</text><paragraph commented="no" display-inline="no-display-inline" id="H0C1DC2A9754B4667A559E467A9F00402"><enum>(1)</enum><text display-inline="yes-display-inline">The conservatorship for such enterprise under section 1367 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) has been terminated.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H66B7FF350C6047B08C48C1E0B0B03506"><enum>(2)</enum><text display-inline="yes-display-inline">The Director of the Federal Housing Finance Agency has certified in writing that such enterprise
has repaid to the Federal Government the maximum amount consistent with
minimizing total cost to the Federal Government of the financial
assistance provided to the enterprise by the Federal Government pursuant
to the amendments made by section 1117 of the Housing and Economic
Recovery Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/289">Public Law 110–289</external-xref>; 122 Stat. 2683) or otherwise.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74DD00B714DB4132A1E658FE42F4E2DC"><enum>(3)</enum><text display-inline="yes-display-inline">The charter for the enterprise has been revoked, annulled, or terminated and the authorizing
statute (as such term is defined in such section 1303) with respect to the
enterprise has been repealed.</text></paragraph></section><enum>III</enum><header display-inline="yes-display-inline">Budget review and analysis</header><section commented="no" display-inline="no-display-inline" id="H0E7C762906B74F778573F38B746F1669" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">CBO and OMB review and recommendations respecting receipts and collections</header><text display-inline="no-display-inline">Not later than 1 year after the date of enactment of this Act, the Director of the Office of
Management and Budget shall prepare a study of the history of offsetting
collections against expenditures and the amount of receipts collected
annually, the historical application of the budgetary terms <quote>revenue</quote>, <quote>offsetting collections</quote>, and <quote>offsetting receipts</quote>, and review the application of those terms and make recommendations to the Committees on the
Budget of the House of Representatives and the Senate of whether such
usage should be continued or modified. The Director of the Congressional
Budget Office shall review the history and recommendations prepared by the
Director of the Office of Management and Budget and shall submit comments
and recommendations to such Committees.</text></section><section commented="no" display-inline="no-display-inline" id="H890F3448F11D4CE8B77D6F07193A94F1" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Agency budget justifications</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/1108">Section 1108</external-xref> of title 31, United States Code, is amended by inserting at the end the following new subsections:</text><quoted-block display-inline="no-display-inline" id="H9D78D2774CA842BC887A8AC8C48F25A2" style="USC"><subsection commented="no" display-inline="no-display-inline" id="H951F3BB1D915486B8B6B2D7D6957A382"><enum>(h)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HE7C5C3C0A90541AE96AA8E9B84578DF4"><enum>(1)</enum><text display-inline="yes-display-inline">Whenever any agency prepares and submits written budget justification materials for any committee
of the House of Representatives or the Senate, such agency shall post such
budget justification on the same day of such submission on the <term>open</term> page of the public website of the agency, and the Office of Management and Budget shall post such
budget justification in a centralized location on its website, in the
format developed under paragraph (2). Each agency shall include with its
written budget justification the process and methodology the agency is
using to comply with the <short-title>Fair Value Accounting Act of 2014</short-title>.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA920EB53C89943CDA13C8F1D4975856C" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Office of Management and Budget, in consultation with the Congressional Budget Office and the
Government Accountability Office, shall develop and notify each agency of
the format in which to post a budget justification under paragraph (1).
Such format shall be designed to ensure that posted budget justifications
for all agencies—</text><subparagraph commented="no" display-inline="no-display-inline" id="H730003DC993345538FD434C939068204"><enum>(A)</enum><text display-inline="yes-display-inline">are searchable, sortable, and downloadable by the public;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAF857832CEAF4216AB96FADBD679DFB7"><enum>(B)</enum><text display-inline="yes-display-inline">are consistent with generally accepted standards and practices for machine-discoverability;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H115BD1E784D34C5792C86CE26A231029"><enum>(C)</enum><text display-inline="yes-display-inline">are organized uniformly, in a logical manner that makes clear the contents of a budget
justification and relationships between data elements within the budget
justification and among similar documents; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H43366F5023B649A7BA79670E3B298B7D"><enum>(D)</enum><text display-inline="yes-display-inline">use uniform identifiers, including for agencies, bureaus, programs, and projects.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0687FD4339234562B1D1226006ABD793"><enum>(i)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H60A4AB46C2C94EFABB7B8CC1615E01C5"><enum>(1)</enum><text display-inline="yes-display-inline">Not later than the day that the Office of Management and Budget issues guidelines, regulations, or
criteria to agencies on how to calculate the risk component under the <short-title>Fair Value Accounting Act of 2014</short-title>, it shall submit a written report to the Committees on the Budget of the House of Representatives
and the Senate containing all such guidelines, regulations, or criteria.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F17F83D184F4C0B89F5CEB8E21B7D11" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">For fiscal year 2017 and each of the next four fiscal years thereafter, the Comptroller General
shall submit an annual report to the Committees on the Budget of the House
of Representatives and the Senate reviewing and evaluating the progress of
agencies in the implementation of the <short-title>Fair Value Accounting Act of 2014</short-title>.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9EBBFFFFF10D479FBAF7FE361B697885" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">Such guidelines, regulations, or criteria shall be deemed to be a rule for purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5 and shall be issued after notice and opportunity for public comment in accordance with
the procedures under such section.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>Passed the House of Representatives April 7, 2014.Karen L. Haas,Clerk.