[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4178 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 4178
To amend the Federal Credit Reform Act of 1990 to include
administrative costs in the estimated long-term costs to the Government
of direct loans and loan guarantees and to systematically reduce the
Federal credit subsidy rate, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
April 12, 1994
Mr. Smith of Texas (for himself, Mr. Kasich, Mr. Cox, and Mr. Franks of
New Jersey) introduced the following bill; which was referred jointly
to the Committees on Government Operations and Rules
_______________________________________________________________________
A BILL
To amend the Federal Credit Reform Act of 1990 to include
administrative costs in the estimated long-term costs to the Government
of direct loans and loan guarantees and to systematically reduce the
Federal credit subsidy rate, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Credit Cost Reduction Act of
1994''.
SEC. 2. TREATMENT OF ADMINISTRATIVE COSTS REGARDING DIRECT AND
GUARANTEED LOANS.
Paragraph (5)(A) of section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a(5)(A)) is amended by striking ``excluding'' and
inserting ``including''.
SEC. 3. TREATMENT OF ADMINISTRATIVE COSTS IN THE PRESIDENT'S ANNUAL
BUDGET SUBMISSION.
Section 1105(a) of title 31, United States Code, is amended by
adding at the end the following new paragraphs:
``(29) a separate listing of administrative costs for
direct loans and loan guarantees computed on a cash accounting
basis for any such loans and guarantees originating before
enactment of this paragraph.
``(30) an appendix setting forth on a cash accounting basis
the administrative costs of all loans and loan guarantees by
program, by agency, and for the Government.''.
SEC. 4. FEDERAL CREDIT SUBSIDY RATES.
(a) Definition of Subsidy Rate.--Section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a) is amended by adding at the end the
following new paragraph:
``(10) The term `subsidy rate' for a fiscal year means--
``(A) in the case of a direct loan, the cost of all
loans made for a covered program during that year
divided by the total direct loan obligations for that
same covered program; and
``(B) in the case of a loan guarantee commitment,
the cost of all loan guarantees incurred for a covered
program during that year divided by the total amount of
the loan guarantee commitments for that same covered
program.''.
(b) Maximum Subsidy Rates.--(1) The Federal Credit Reform Act of
1990 is amended by adding at the end the following new section:
``SEC. 508. MAXIMUM FEDERAL CREDIT SUBSIDY RATES.
``(a) Maximum Subsidy Rates.--The maximum permissible subsidy rate
for each covered program for a fiscal year is the following: 40 percent
for fiscal year 1995, 30 percent for fiscal year 1996, 20 percent for
fiscal year 1997, 10 percent for fiscal year 1998, and 5 percent for
fiscal year 1999.
``(b) Covered Programs.--The covered programs to which subsection
(a) applies are the credit reform program accounts covered by the
Federal Credit Reform Act of 1990.
``(c) Estimates.--The subsidy rates for a fiscal year shall be
determined on the basis of estimates made by the Director of the
Congressional Budget Office.''.
(2) Section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item relating to
section 507 the following new item:
``Sec. 508. Maximum Federal credit subsidy rates.''.
(c) Point of Order.--Section 301 of the Congressional Budget Act of
1974 is amended by adding at the end the following new subsection:
``(j) It shall not be in order in the House of Representatives or
the Senate to consider any concurrent resolution on the budget for any
fiscal year that would allow the maximum permissible subsidy rate (as
set forth in section 508) for any covered program for that fiscal year
to be breached.''.
(d) Allocations.--(1) Section 602(a)(1)(A) of the Congressional
Budget Act of 1974 is amended by striking ``and'' at the end of clause
(ii), by striking the comma and inserting ``; and'' at the end of
clause (iii), and by inserting after clause (iii) the following new
clause:
``(iv) total credit authority (that does
not cause the maximum permissible subsidy rate
(as set forth in section 508) for any covered
program to be breached);''.
(2) Section 602(a)(2) of the Congressional Budget Act of 1974 is
amended by striking ``and'' at the end of subparagraph (B), by
inserting ``and'' at the end of subparagraph (C), and by inserting
after subparagraph (C) the following new subparagraph:
``(D) total credit authority (that does not cause
the maximum permissible subsidy rate (as set forth in
section 508) for any program to be breached);''.
(e) Contents of Budget Resolutions.--Section 301(a) of the
Congressional Budget Act of 1974 is amended by striking ``and'' at the
end of paragraph (6), by striking the period and inserting ``; and'' at
the end of paragraph (7), and by inserting after paragraph (7) the
following new paragraph:
``(8) for purposes of enforcement of section 508, the total
credit authority for each covered program, but which total
shall not cause the maximum permissible subsidy rate (as set
forth in that section) for that program to be breached.''.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by it shall apply with respect to
fiscal years beginning after the date of enactment of this Act.
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