[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2037 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2037

 To amend the Congressional Budget Act of 1974 and the Balanced Budget 
  and Emergency Deficit Control Act of 1985 to enforce the bipartisan 
                           budget agreement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 1997

   Mr. Smith of Michigan (for himself and Mr. Kasich) introduced the 
following bill; which was referred to the Committee on the Budget, and 
in addition to the Committee on Rules, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Congressional Budget Act of 1974 and the Balanced Budget 
  and Emergency Deficit Control Act of 1985 to enforce the bipartisan 
                           budget agreement.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Budget Enforcement 
Act of 1997''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
TITLE I--AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL 
                              ACT OF 1974

Sec. 101. Amendments to section 3.
Sec. 102. Amendments to section 201.
Sec. 103. Amendments to section 202.
Sec. 104. Amendment to section 300.
Sec. 105. Amendments to section 301.
Sec. 106. Amendments to section 302.
Sec. 107. Amendments to section 303.
Sec. 108. Amendment to section 305.
Sec. 109. Amendments to section 308.
Sec. 110. Amendments to section 310.
Sec. 111. Amendments to section 311.
Sec. 112. Amendment to section 312.
Sec. 113. Adjustments and Budget Committee determinations.
Sec. 114. Effect of self-executing amendments on points of order in the 
                            House of Representatives.
Sec. 115. Amendment of section 401 and repeal of section 402.
Sec. 116. Repeal of title VI.
Sec. 117. Amendments to section 904.
Sec. 118. Repeal of sections 905 and 906.
Sec. 119. Amendments to sections 1022 and 1024.
Sec. 120. Amendment to section 1026.
   TITLE II--AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT 
                          CONTROL ACT OF 1985

Sec. 201. Purpose.
Sec. 202. General statement and definitions.
Sec. 203. Enforcing discretionary spending limits.
Sec. 204. Violent crime reduction trust fund.
Sec. 205. Enforcing pay-as-you-go.
Sec. 206. Reports and orders.
Sec. 207. Exempt programs and activities.
Sec. 208. General and special sequestration rules.
Sec. 209. The baseline.
Sec. 210. Technical correction.
Sec. 211. Judicial review.
Sec. 212. Effective date.
Sec. 213. Reduction of preexisting balances and exclusion of effects of 
                            this Act from paygo scorecard.

TITLE I--AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL 
                              ACT OF 1974

SEC. 101. AMENDMENTS TO SECTION 3.

    Section 3 of the Congressional Budget and Impoundment Control Act 
of 1974 (2 U.S.C. 622) is amended--
            (1) in paragraph (2)(A), by striking ``and'' at the end of 
        clause (iii), by striking the period and inserting ``; and'' at 
        the end of clause (iv), and by adding at the end the following:
                            ``(v) entitlement authority and the food 
                        stamp program.''; and
            (2) in paragraph (9), by inserting ``, but such term does 
        not include salary or basic pay funded through an appropriation 
        Act'' before the period.

SEC. 102. AMENDMENTS TO SECTION 201.

    (a) Term of Office.--The first sentence of section 201(a)(3) of the 
Congressional Budget Act of 1974 is amended to read as follows: ``The 
term of office of the Director shall be four years and shall expire on 
January 3 of the year preceding a Presidential election.''.
    (b) Redesignation of Executed Provision.--Section 201 of the 
Congressional Budget Act of 1974 is amended by redesignating subsection 
(g) (relating to revenue estimates) as subsection (f).

SEC. 103. AMENDMENTS TO SECTION 202.

    (a) Assistance to Budget Committees.--The first sentence of section 
202(a) of the Congressional Budget Act of 1974 is amended by inserting 
``primary'' before ``duty''.
    (b) Elimination of Executed Provision.--Section 202 of the 
Congressional Budget Act of 1974 is amended by striking subsection (e) 
and by redesignating subsections (f), (g), and (h) as subsections (e), 
(f), and (g), respectively.

SEC. 104. AMENDMENT TO SECTION 300.

    The item relating to February 25 in the timetable set forth in 
section 300 of the Congressional Budget Act of 1974 is amended by 
striking ``February 25'' and inserting ``Within 6 weeks after President 
submits budget''.

SEC. 105. AMENDMENTS TO SECTION 301.

    (a) Terms of Budget Resolutions.--Section 301(a) of the 
Congressional Budget Act of 1974 is amended by striking ``, and 
planning levels for each of the two ensuing fiscal years,'' and 
inserting ``and for at least each of the 4 ensuing fiscal years''.
    (b) Contents of Budget Resolutions.--Paragraphs (1) and (4) of 
section 301(a) of the Congressional Budget Act of 1974 are amended by 
striking ``, budget outlays, direct loan obligations, and primary loan 
guarantee commitments'' each place it appears and inserting ``and 
budget outlays''.
    (c) Additional Matters.--Section 301(b) of the Congressional Budget 
Act of 1974 is amended by amending paragraph (7) to read as follows--
            ``(7) set forth pay-as-you-go procedures in the Senate 
        whereby committee allocations, aggregates, and other levels can 
        be revised for legislation within a committee's jurisdiction if 
        such legislation would not increase the deficit for the first 
        year covered by the resolution and will not increase the 
        deficit for the period of 5 fiscal years covered by the 
        resolution;''.
    (d) Views and Estimates.--The first sentence of section 301(d) of 
the Congressional Budget Act of 1974 is amended by inserting ``or at 
such time as may be requested by the Committee on the Budget,'' after 
``Code,''.
    (e) Hearings and Report.--Section 301(e)(2) of the Congressional 
Budget Act of 1974 is amended by striking ``total direct loan 
obligations, total primary loan guarantee commitments,''.
    (f) Social Security Corrections.--Section 301(i) of the 
Congressional Budget Act of 1974 is amended by--
            (1) inserting ``Social security point of order.--'' after 
        ``(i)''; and
            (2) striking ``as reported to the Senate'' and inserting 
        ``(or amendment, motion, or conference report on such a 
        resolution)''.

SEC. 106. AMENDMENTS TO SECTION 302.

    (a) Allocations and Suballocations.--Subsections (a) and (b) of 
section 302 of the Congressional Budget Act of 1974 are amended to read 
as follows:
    ``(a) Committee Spending Allocations.--
            ``(1) Allocation among committees.--The joint explanatory 
        statement accompanying a conference report on a budget 
        resolution shall include allocations, consistent with the 
        resolution recommended in the conference report, of the 
        appropriate levels (for each fiscal year covered by that 
        resolution and a total for all such years, except in the case 
        of the Committee on Appropriations only for the first such 
        fiscal year) of--
                    ``(A) total new budget authority;
                    ``(B) total outlays; and
                    ``(C) in the Senate, social security outlays;
        among each committee of the House of Representatives or the 
        Senate that has jurisdiction over legislation providing or 
        creating such amounts.
            ``(2) No double counting.--In the House of Representatives, 
        any item allocated to one committee may not be allocated to 
        another such committee.
            ``(3) Further division of amounts.--In the House of 
        Representatives, the amounts allocated to each committee for 
        each fiscal year, other than the Committee on Appropriations, 
        shall be further divided between amounts provided or required 
        by law on the date of filing of that conference report and 
        amounts not so provided or required. The amounts allocated to 
        the Committee on Appropriations for each fiscal year shall be 
        further divided between discretionary and mandatory amounts or 
        programs, as appropriate.
            ``(4) Amounts not allocated.--(A) In the House of 
        Representatives, if a committee receives no allocation of new 
        budget authority or outlays, that committee shall be deemed to 
        have received an allocation equal to zero for new budget 
        authority or outlays.
            ``(B) In the Senate, if a committee receives no allocation 
        of new budget authority, outlays, or social security outlays, 
        that committee shall be deemed to have received an allocation 
        equal to zero for new budget authority, outlays, or social 
        security outlays.
            ``(5) Social security levels in the senate.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(C), social security surpluses equal the excess of 
                social security revenues over social security outlays 
                in a fiscal year or years with such an excess and 
                social security deficits equal the excess of social 
                security outlays over social security revenues in a 
                fiscal year or years with such an excess.
                    ``(B) Tax treatment.--For purposes of paragraph 
                (1)(C), no provision of any legislation involving a 
                change in chapter 1 of the Internal Revenue Code of 
                1986 shall be treated as affecting the amount of social 
                security revenues or outlays unless such provision 
                changes the income tax treatment of social security 
                benefits.
            ``(6) Adjusting allocation of discretionary spending in the 
        house of representatives.--(A) If a concurrent resolution on 
        the budget is not adopted by April 15, the chairman of the 
        Committee on the Budget of the House of Representatives shall 
        submit to the House, as soon as practicable, an allocation 
        under paragraph (1) to the Committee on Appropriations 
        consistent with the discretionary spending limits contained in 
        the most recently agreed to concurrent resolution on the budget 
        for the second fiscal year covered by that resolution.
            ``(B) As soon as practicable after an allocation under 
        paragraph (1) is submitted under this section, the Committee on 
        Appropriations shall make suballocations and promptly report 
        those suballocations to the House of Representatives.
    ``(b) Suballocations by Appropriation Committees.--As soon as 
practicable after a concurrent resolution on the budget is agreed to, 
the Committee on Appropriations of each House (after consulting with 
the Committee on Appropriations of the other House) shall suballocate 
each amount allocated to it for the budget year under subsection (a) 
among its subcommittees. Each Committee on Appropriations shall 
promptly report to its House suballocations made or revised under this 
paragraph.''.
    (b) Point of Order.--Section 302(c) of the Congressional Budget Act 
of 1974 is amended to read as follows:
    ``(c) Point of Order.--After the Committee on Appropriations has 
received an allocation pursuant to subsection (a) for a fiscal year, it 
shall not be in order in the House of Representatives or the Senate to 
consider any bill, joint resolution, amendment, motion, or conference 
report providing new budget authority for that fiscal year within the 
jurisdiction of that committee, until such committee makes the 
suballocations required by subsection (b).''.
    (c) Enforcement of Point of Order.--(1) Section 302(f)(1) of the 
Congressional Budget Act of 1974 is amended by--
            (A) striking ``providing new budget authority for such 
        fiscal year or new entitlement authority effective during such 
        fiscal year'' and inserting ``providing new budget authority 
        for any fiscal year covered by the concurrent resolution'';
            (B) striking ``appropriate allocation made pursuant to 
        subsection (b) for such fiscal year'' and inserting 
        ``appropriate allocation made under subsection (a) or any 
        suballocation made under subsection (b), as applicable, for the 
        fiscal year of the concurrent resolution or for the total of 
        all fiscal years covered by the concurrent resolution''; and
            (C) striking ``of new discretionary budget authority or new 
        entitlement authority to be exceeded'' and inserting ``of new 
        discretionary budget authority to be exceeded''.
    (2) Section 302(f)(2) of the Congressional Budget Act of 1974 is 
amended to read as follows:
            ``(2) Enforcement of committee allocations and 
        suballocations in the Senate.--After a concurrent resolution on 
        the budget is agreed to, it shall not be in order in the Senate 
        to consider any bill, joint resolution, amendment, motion, or 
        conference report that would cause--
                    ``(A) in the case of any committee except the 
                Committee on Appropriations, the appropriate allocation 
                of new budget authority or outlays under subsection (a) 
                to be exceeded; or
                    ``(B) in the case of the Committee on 
                Appropriations, the appropriate suballocation of new 
                budget authority or outlays under subsection (b) to be 
                exceeded.''.
    (d) Separate Allocations.--Section 302(g) of the Congressional 
Budget Act of 1974 is amended to read as follows:
    ``(g) Separate Allocations.--The Committees on Appropriations and 
the Budget shall make separate allocations and suballocations under 
this section consistent with the categories in section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985.''

SEC. 107. AMENDMENTS TO SECTION 303.

    (a) In General.--Section 303 of the Congressional Budget Act of 
1974 is amended to read as follows:

     ``concurrent resolution on the budget must be adopted before 
legislation providing new budget authority, new spending authority, or 
       changes in revenues or the public debt limit is considered

    ``Sec. 303. (a) In General.--It shall not be in order in either the 
House of Representatives or the Senate to consider any bill, joint 
resolution, amendment, motion, or conference report as reported to the 
House or Senate which provides--
            ``(1) new budget authority for a fiscal year;
            ``(2) an increase or decrease in revenues to become 
        effective during a fiscal year;
            ``(3) an increase or decrease in the public debt limit to 
        become effective during a fiscal year;
            ``(4) in the Senate only, new spending authority (as 
        defined in section 401(c)(2)) for a fiscal year; or
            ``(5) in the Senate only, outlays,
until the concurrent resolution on the budget for such fiscal year (or, 
in the Senate, a concurrent resolution on the budget covering such 
fiscal year) has been agreed to pursuant to section 301.
    ``(b) Exceptions.--(1) In the House of Representatives, subsection 
(a) does not apply to any bill or resolution--
            ``(A) providing advance discretionary new budget authority 
        which first becomes available in a fiscal year following the 
        fiscal year to which the concurrent resolution applies; or
            ``(B) increasing or decreasing revenues which first become 
        effective in a fiscal year following the fiscal year to which 
        the concurrent resolution applies.
After May 15 of any calendar year, subsection (a) does not apply in the 
House of Representatives to any general appropriation bill, or 
amendment thereto, which provides new budget authority for the fiscal 
year beginning in such calendar year.
    ``(2) In the Senate, subsection (a) does not apply to any bill or 
resolution making advance appropriations for the fiscal year to which 
the concurrent resolution applies and the two succeeding fiscal 
years.''.
    (b) Conforming Amendment.--The item relating to section 303 in the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended by striking ``new credit 
authority,''.

SEC. 108. AMENDMENT TO SECTION 305.

    Section 305(a)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``when the House is not in session'' after 
``holidays'' each place it appears.

SEC. 109. AMENDMENTS TO SECTION 308.

    Section 308 of the Congressional Budget Act of 1974 is amended--
            (1)(A) in the side heading of subsection (a), by striking 
        ``OR NEW CREDIT AUTHORITY,'' and by striking the first comma 
        and inserting ``OR'';
            (B) in paragraphs (1) and (2) of subsection (a), by 
        striking ``or new credit authority,'' each place it appears and 
        by striking the comma before ``new spending authority'' each 
        place it appears and inserting ``or'';
            (2) in subsection (b)(1), by striking ``or new credit 
        authority,'' and by striking the comma before ``new spending 
        authority'' and inserting ``or'';
            (3) in subsection (c), by inserting ``and'' after the 
        semicolon at the end of paragraph (3), by striking ``; and'' at 
        the end of paragraph (4) and inserting a period; and by 
        striking paragraph (5); and
            (4) by inserting ``joint'' before ``resolution'' each place 
        it appears and, in subsection (b)(1), by inserting ``joint'' 
        before ``resolutions''.

SEC. 110. AMENDMENTS TO SECTION 310.

    Section 310 of the Congressional Budget Act of 1974 is amended by--
            (1) in subsection (a)(1), by inserting ``and'' after the 
        semicolon at the end of subparagraph (B), by striking 
        subparagraphs (C) and (D), and by inserting after subparagraph 
        (B) the following new subparagraph:
                    ``(C) direct spending (as defined in section 
                250(c)(8) of the Balanced Budget and Emergency Deficit 
                Control Act of 1985),''; and
            (2) in subsection (c)(1)(A), by inserting ``of the absolute 
        value'' after ``20 percent'' each place it appears.

SEC. 111. AMENDMENTS TO SECTION 311.

    Section 311 of the Congressional Budget Act of 1974 is amended to 
read as follows:

``new budget authority, new spending authority, and revenue legislation 
                   must be within appropriate levels

    ``Sec. 311. (a) Enforcement of Budget Aggregates.--
            ``(1) In the house of representatives.--Except as provided 
        by subsection (c), after the Congress has completed action on a 
        concurrent resolution on the budget for a fiscal year, it shall 
        not be in order in the House of Representatives to consider any 
        bill, joint resolution, amendment, motion, or conference report 
        providing new budget authority for such fiscal year or reducing 
        revenues for such fiscal year, if--
                    ``(A) the enactment of such bill or resolution as 
                reported;
                    ``(B) the adoption and enactment of such amendment; 
                or
                    ``(C) the enactment of such bill or resolution in 
                the form recommended in such conference report;
        would cause the appropriate level of total new budget authority 
        or total budget outlays set forth in the most recently agreed 
        to concurrent resolution on the budget for such fiscal year to 
        be exceeded, or would cause revenues to be less than the 
        appropriate level of total revenues set forth in such 
        concurrent resolution such fiscal year or for the total of all 
        fiscal years covered by the concurrent resolution, except in 
        the case that a declaration of war by the Congress is in 
        effect.
            ``(2) In the senate.--After a concurrent resolution on the 
        budget is agreed to, it shall not be in order in the Senate to 
        consider any bill, resolution, amendment, motion, or conference 
        report that--
                    ``(A) would cause the appropriate level of total 
                new budget authority or total outlays set forth for the 
                first fiscal year in such resolution to be exceeded; or
                    ``(B) would cause revenues to be less than the 
                appropriate level of total revenues set forth for the 
                first fiscal year covered by such resolution or for the 
                period including the first fiscal year plus the 
                following 4 fiscal years in such resolution.
            ``(3) Enforcement of social security levels in the 
        senate.--After a concurrent resolution on the budget is agreed 
        to, it shall not be in order in the Senate to consider any 
        bill, resolution, amendment, motion, or conference report that 
        would cause a decrease in social security surpluses or an 
        increase in social security deficits derived from the levels of 
        social security revenues and social security outlays set forth 
        for the first fiscal year covered by the resolution and for the 
        period including the first fiscal year plus the following 4 
        fiscal years in such resolution.
    ``(b) Social Security Levels.--
            ``(1) In general.--For the purposes of subsection (a)(3), 
        social security surpluses equal the excess of social security 
        revenues over social security outlays in a fiscal year or years 
        with such an excess and social security deficits equal the 
        excess of social security outlays over social security revenues 
        in a fiscal year or years with such an excess.
            ``(2) Tax treatment.--For the purposes of this section, no 
        provision of any legislation involving a change in chapter 1 of 
        the Internal Revenue Code of 1986 shall be treated as affecting 
        the amount of social security revenues or outlays unless such 
        provision changes the income tax treatment of social security 
        benefits.
    ``(c) Exception in the House of Representatives.--Subsection (a)(1) 
shall not apply in the House of Representatives to any bill, 
resolution, or amendment that provides new budget authority for a 
fiscal year or to any conference report on any such bill or resolution, 
if--
            ``(1) the enactment of such bill or resolution as reported;
            ``(2) the adoption and enactment of such amendment; or
            ``(3) the enactment of such bill or resolution in the form 
        recommended in such conference report;
would not cause the appropriate allocation of new budget authority made 
pursuant to section 302(a) for such fiscal year, for the committee 
within whose jurisdiction such bill, resolution, or amendment falls, to 
be exceeded.''.

SEC. 112. AMENDMENT TO SECTION 312.

    (a) In General.--Section 312 of the Congressional Budget Act of 
1974 is amended to read as follows:

                           ``points of order

    ``Sec. 312. (a) Budget Committee Determinations.--For purposes of 
this title and title IV, the levels of new budget authority, budget 
outlays, spending authority as described in section 401(c)(2), direct 
spending, new entitlement authority, and revenues for a fiscal year 
shall be determined on the basis of estimates made by the Committee on 
the Budget of the House of Representatives or the Senate, as the case 
may be.
    ``(b) Discretionary Spending Point of Order in the Senate.--
            ``(1) Except as otherwise provided in this subsection, it 
        shall not be in order in the Senate to consider any concurrent 
        resolution on the budget (or amendment, motion, or conference 
        report on such a resolution) that would exceed any of the 
        discretionary spending limits in section 251(c) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
            ``(2) This subsection shall not apply if a declaration of 
        war by the Congress is in effect or if a joint resolution 
        pursuant to section 258 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 has been enacted.
    ``(c) Maximum Deficit Amount Point of Order in the Senate.--It 
shall not be in order in the Senate to consider any concurrent 
resolution on the budget for a fiscal year under section 301, or to 
consider any amendment to that concurrent resolution, or to consider a 
conference report on that concurrent resolution--
            ``(1) if the level of total budget outlays for the first 
        fiscal year that is set forth in that concurrent resolution or 
        conference report exceeds the recommended level of Federal 
        revenues set forth for that year by an amount that is greater 
        than the maximum deficit amount, if any, specified in the 
        Balanced Budget and Emergency Deficit Control Act of 1985 for 
        such fiscal year; or
            ``(2) if the adoption of such amendment would result in a 
        level of total budget outlays for that fiscal year which 
        exceeds the recommended level of Federal revenues for that 
        fiscal year, by an amount that is greater than the maximum 
        deficit amount, if any, specified in the Balanced Budget and 
        Emergency Deficit Control Act of 1985 for such fiscal year.
    ``(d) Timing of Points of Order in the Senate.--A point of order 
under this Act may not be raised against a bill, resolution, amendment, 
motion, or conference report while an amendment or motion, the adoption 
of which would remedy the violation of this Act, is pending before the 
Senate.
    ``(e) Points of Order in the Senate Against Amendments Between the 
Houses.--Each provision of this Act that establishes a point of order 
against an amendment also establishes a point of order in the Senate 
against an amendment between the Houses. If a point of order under this 
Act is raised in the Senate against an amendment between the Houses, 
and the Presiding Officer sustains the point of order, the effect shall 
be the same as if the Senate had disagreed to the amendment.
    ``(f) Effect of a Point of Order on a Bill in the Senate.--In the 
Senate, if the Chair sustains a point of order under this Act against a 
bill, the Chair shall then send the bill to the committee of 
appropriate jurisdiction for further consideration.''.
    (b) Conforming Amendment.--The item relating to section 312 in the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended by striking ``Effect of 
point'' and inserting ``Point''.

SEC. 113. ADJUSTMENTS AND BUDGET COMMITTEE DETERMINATIONS.

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

                             ``adjustments

    ``Sec. 314. (a) Adjustments.--When--
            ``(1)(A) the Committee on Appropriations reports an 
        appropriation measure for fiscal year 1998, 1999, 2000, 2001, 
        or 2002 that specifies an amount for emergencies pursuant to 
        section 251(b)(2)(A) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 or for continuing disability 
        reviews pursuant to section 251(b)(2)(C) of that Act;
            ``(B) any other committee reports emergency legislation 
        described in section 252(e) of that Act;
            ``(C) the Committee on Appropriations reports an 
        appropriation measure for fiscal year 1998, 1999, 2000, 2001, 
        or 2002 that includes an appropriation with respect to clause 
        (i) or (ii), the adjustment shall be the amount of budget 
        authority in the measure that is the dollar equivalent, in 
        terms of Special Drawing Rights, of--
                    ``(i) increases the United States quota as part of 
                the International Monetary Fund Eleventh General Review 
                of Quotas (United States Quota); or
                    ``(ii) increases the maximum amount available to 
                the Secretary of the Treasury pursuant to section 17 of 
                the Bretton Woods Agreement Act, as amended from time 
                to time (New Arrangements to Borrow); or
            ``(D) the Committee on Appropriations reports an 
        appropriation measure for fiscal year 1998, 1999, or 2000 that 
        includes an appropriation for arrearages for international 
        organizations, international peacekeeping, and multilateral 
        development banks during that fiscal year, and the sum of the 
        appropriations for the period of fiscal years 1998 through 2000 
        do not exceed $1,884,000,000 in budget authority; or
            ``(2) a conference committee submits a conference report 
        thereon;
the chairman of the Committee on the Budget of the Senate or House of 
Representatives shall make the adjustments referred to in subsection 
(c) to reflect the additional new budget authority for such matter 
provided in that measure or conference report and the additional 
outlays flowing in all fiscal years from such amounts for such matter.
    ``(b) Application of Adjustments.--The adjustments and revisions to 
allocations, aggregates, and limits made by the Chairman of the 
Committee on the Budget pursuant to subsection (a) for legislation 
shall only apply while such legislation is under consideration and 
shall only permanently take effect upon the enactment of that 
legislation.
    ``(c) Content of Adjustments.--The adjustments referred to in 
subsection (a) shall consist of adjustments, as appropriate, to--
            ``(1) the discretionary spending limits as set forth in the 
        most recently agreed to concurrent resolution on the budget;
            ``(2) the allocations made pursuant to the most recently 
        adopted concurrent resolution on the budget pursuant to section 
        302(a); and
            ``(3) the budgetary aggregates as set forth in the most 
        recently adopted concurrent resolution on the budget.
    ``(d) Reporting Revised Suballocations.--Following the adjustments 
made under subsection (a), the Committees on Appropriations of the 
Senate and the House of Representatives may report appropriately 
revised suballocations pursuant to section 302(b) to carry out this 
subsection.
    ``(e) Definitions.--As used in subsection (a)(1)(A), when referring 
to continuing disability reviews, the terms `continuing disability 
reviews', `additional new budget authority', and `additional outlays' 
shall have the same meanings as provided in section 251(b)(2)(C)(ii) of 
the Balanced Budget and Emergency Deficit Control Act of 1985.''.
    (b) Conforming Amendments.--(1) Sections 302(g), 311(c), and 313(e) 
of the Congressional Budget Act of 1974 are repealed.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
adding after the item relating to section 313 the following new item:

``Sec. 314. Adjustments.''.

SEC. 114. EFFECT OF SELF-EXECUTING AMENDMENTS ON POINTS OF ORDER IN THE 
              HOUSE OF REPRESENTATIVES.

    (a) Effect of Points of Order.--Title III of the Congressional 
Budget Act of 1974 is amended by adding after section 314 the following 
new section:

 ``effect of self-executing amendments on points of order in the house 
                           of representatives

    ``Sec. 315. In the House of Representatives, if a provision of a 
bill, as reported, violates a section of this title or title IV and a 
self-executing rule providing for consideration of that bill modifies 
that provision to eliminate such violation, then such point of order 
shall not lie against consideration of that bill.''.
    (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 adding after the item relating to section 314 the 
following new item:

``Sec. 315. Effect of self-executing amendments on points of order in 
                            the House of Representatives.''.

SEC. 115. AMENDMENT OF SECTION 401 AND REPEAL OF SECTION 402.

    (a) Section 401.--Subsections (a) and (b) of section 401 of the 
Congressional Budget Act of 1974 are amended to read as follows:

    ``bills providing new spending authority or new credit authority

    ``Sec. 401. (a) Controls on Legislation Providing Spending 
Authority or Credit Authority.--It shall not be in order in either the 
House of Representatives or the Senate to consider any bill, joint 
resolution, amendment, motion, or conference report, as reported to its 
House which provides new spending authority described in subsection 
(c)(2) (A) or (B) or new credit authority, unless that bill, 
resolution, conference report, or amendment also provides that such new 
spending authority as described in subsection (c)(2) (A) or (B) or new 
credit authority is to be effective for any fiscal year only to such 
extent or in such amounts as are provided in appropriation Acts.
    ``(b) Legislation Providing Entitlement Authority.--It shall not be 
in order in either the House of Representatives or the Senate to 
consider any bill, joint resolution, amendment, motion, or conference 
report, as reported to its House which provides new spending authority 
described in subsection (c)(2)(C) which is to become effective before 
the first day of the fiscal year which begins during the calendar year 
in which such bill or resolution is reported.''.
    (b) Repealer of Section 402.--
            (1) Section 402 of the Congressional Budget Act of 1974 is 
        repealed.
            (2) Conforming amendments.--
                    (A) Sections 403 through 407 of the Congressional 
                Budget Act of 1974 are redesignated as sections 402 
                through 406, respectively.
                    (B) The table of contents set forth in section 1(b) 
                of the Congressional Budget and Impoundment Control Act 
                of 1974 is amended by deleting the item relating to 
                section 402 and by redesignating the items relating to 
                sections 403 through 407 as the items relating to 
                sections 402 through 406, respectively.

SEC. 116. REPEAL OF TITLE VI.

    (a) Repealer.--Title VI of the Congressional Budget Act of 1974 is 
repealed.
    (b) Conforming Amendments.--The items relating to title VI of the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 are repealed.

SEC. 117. AMENDMENTS TO SECTION 904.

    (a) Conforming Amendment.--Section 904(a) of the Congressional 
Budget Act of 1974 is amended by striking ``(except section 905)'' and 
by striking ``V, and VI (except section 601(a))'' and inserting ``and 
V''.
    (b) Waivers.--Section 904(c) of the Congressional Budget Act of 
1974 is amended to read as follows:
    ``(c) Waivers.--
            ``(1) Sections 305(b)(2), 305(c)(4), 306, 310(d)(2), 313, 
        904(c), and 904(d) of this Act may be waived or suspended in 
        the Senate only by the affirmative vote of three-fifths of the 
        Members, duly chosen and sworn.
            ``(2) Sections 301(i), 302(c), 302(f), 310(g), 311(a), and 
        315 of this Act and sections 258(a)(4)(C), 258(A)(b)(3)(C)(I), 
        258(B)(f)(1), 258B(h)(1), 258(h)(3), 258C(a)(5), and 
        258(C)(b)(1) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 may be waived or suspended in the Senate 
        only by the affirmative vote of three-fifths of the Members, 
        duly chosen and sworn.''.
    (c) Appeals.--Section 904(d) of the Congressional Budget Act of 
1974 is amended to read as follows:
    ``(d) Appeals.--
            ``(1) Appeals in the Senate from the decisions of the Chair 
        relating to any provision of title III or IV of section 1017 
        shall, except as otherwise provided therein, be limited to 1 
        hour, to be equally divided between, and controlled by, the 
        mover and the manager of the resolution, concurrent resolution, 
        reconciliation bill, or rescission bill, as the case may be.
            ``(2) An affirmative vote of three-fifths of the Members, 
        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 sections 305(b)(2), 305(c)(4), 306, 
        310(d)(2), 313, 904(c), and 904(d) of this Act.
            ``(3) An affirmative vote of three-fifths of the Members, 
        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 sections 301(i), 302(c), 302(f), 310(g), 
        311(a), and 315 of this Act and sections 258(a)(4)(C), 
        258(A)(b)(3)(C)(I), 258(B)(f)(1), 258B(h)(1), 258(h)(3), 
        258C(a)(5), and 258(C)(b)(1) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.
    (d) Expiration of Supermajority Voting Requirements.--Section 904 
of the Congressional Budget Act of 1974 is amended by adding at the end 
the following:
    ``(e) Expiration of Certain Supermajority Voting Requirements.--
Subsections (c)(2) and (d)(3) shall expire on September 30, 2002.''.

SEC. 118. REPEAL OF SECTIONS 905 AND 906.

    (a) Repealer.--Sections 905 and 906 of the Congressional Budget and 
Impoundment Control Act of 1974 are repealed.
    (b) Conforming Amendments.--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 sections 905 and 906.

SEC. 119. AMENDMENTS TO SECTIONS 1022 AND 1024.

    (a) Section 1022.--Section 1022(b)(1)(F) of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by striking 
``section 601'' and inserting ``section 251(c) the Balanced Budget and 
Emergency Deficit Control Act of 1985''.
    (b) Section 1024.--Section 1024(a)(1)(B) of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by striking 
``section 601(a)(2)'' and inserting ``section 251(c) the Balanced 
Budget and Emergency Deficit Control Act of 1985''.

SEC. 120. AMENDMENT TO SECTION 1026.

    Section 1026(7)(A)(iv) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by striking ``and'' and inserting 
``or''.

   TITLE II--AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT 
                          CONTROL ACT OF 1985

SEC. 201. PURPOSE.

    This title extends discretionary spending limits and pay-as-you-go 
requirements.

SEC. 202. GENERAL STATEMENT AND DEFINITIONS.

    (a) General Statement.--Section 250(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 900(b)) is amended by 
striking the first two sentences and inserting the following: ``This 
part provides for the enforcement of a balanced budget by fiscal year 
2002 as called for in House Concurrent Resolution 84 (105th Congress, 
1st session).''.
    (b) Definitions.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) The term `category' means defense, nondefense, and 
        violent crime reduction discretionary appropriations as 
        specified in the joint explanatory statement accompanying a 
        conference report on the Balanced Budget Act of 1997.'';
            (2) by striking paragraph (6) and inserting the following:
            ``(6) The term `budgetary resources' means new budget 
        authority, unobligated balances, direct spending authority, and 
        obligation limitations.'';
            (3) in paragraph (9), by striking ``submission of the 
        fiscal year 1992 budget that are not included with a budget 
        submission'' and inserting ``that budget submission that are 
        not included with it'';
            (4) in paragraph (14), by inserting ``first 4'' before 
        ``fiscal years'' and by striking ``1995'' and inserting 
        ``2006'';
            (5) by striking paragraphs (17) and (20) and by 
        redesignating paragraphs (18), (19), and (21) as paragraphs 
        (17), (18), and (19), respectively;
            (6) in paragraph (17) (as redesignated), by striking 
        ``Omnibus Budget Reconciliation Act of 1990'' and inserting 
        ``Balanced Budget Act of 1997'';
            (7) in paragraph (20) (as redesignated), by striking the 
        second sentence; and
            (8) by adding at the end the following new paragraph:
            ``(20) The term `consultation', when applied to the 
        Committee on the Budget of either the House of Representatives 
        or of the Senate, means written communication with that 
        committee that affords that committee an opportunity to comment 
        on the matter that is the subject of the consultation before 
        official action is taken on such matter.''.

SEC. 203. ENFORCING DISCRETIONARY SPENDING LIMITS.

    (a) Extension Through Fiscal Year 2002.--Section 251 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended--
            (1) in the side heading of subsection (a), by striking 
        ``1991-1998'' and inserting ``1997-2002'';
            (2) in subsection (a)(7) by inserting ``(excluding 
        Saturdays, Sundays, or legal holidays)'' after ``5 calendar 
        days'';
            (3) in the first sentence of subsection (b)(1), by striking 
        ``1992, 1993, 1994, 1995, 1996, 1997 or 1998'' and inserting 
        ``1997 or any fiscal year thereafter through 2002'' and by 
        striking ``through 1998'' and inserting ``through 2002'';
            (4) in subsection (b)(1), by striking ``the following:'' 
        and all that follows through ``in concepts and definitions'' 
        the first place it appears and inserting ``the following: the 
        adjustments'' and by striking subparagraphs (B) and (C);
            (5) in subsection (b)(2), by striking ``1991, 1992, 1993, 
        1994, 1995, 1996, 1997, or 1998'' and inserting ``1997 or any 
        fiscal year thereafter through 2002'', by striking ``through 
        1998'' and inserting ``through 2002'', and by striking 
        subparagraphs (A), (B), (C), (E), and (G), and by redesignating 
        subparagraphs (D), (F), and (H) as subparagraphs (A), (B), and 
        (C), respectively;
            (6) in subsection (b)(2)(A) (as redesignated), by striking 
        ``(i)'', by striking clause (ii), and by inserting ``fiscal'' 
        before ``years'';
            (7) in subsection (b)(2)(B) (as redesignated), by striking 
        everything after ``the adjustment in outlays'' and inserting 
        ``for a fiscal year is the amount of the excess but not to 
        exceed 0.5 percent of the adjusted discretionary spending limit 
        on outlays for that fiscal year in fiscal year 1997 or any 
        fiscal year thereafter through 2002; and
            (8) by adding at the end of subsection (b)(2) the following 
        new subparagraphs:
                    ``(D) Allowance for imf.--If an appropriations bill 
                or joint resolution is enacted for fiscal year 1998, 
                1999, 2000, 2001, or 2002 that includes an 
                appropriation with respect to clause (i) or (ii), the 
                adjustment shall be the amount of budget authority in 
                the measure that is the dollar equivalent, in terms of 
                Special Drawing Rights, of--
                            ``(i) an increase in the United States 
                        quota as part of the International Monetary 
                        Fund Eleventh General Review of Quotas (United 
                        States Quota); or
                            ``(ii) any increase in the maximum amount 
                        available to the Secretary of the Treasury 
                        pursuant to section 17 of the Bretton Woods 
                        Agreement Act, as amended from time to time 
                        (New Arrangements to Borrow).
                    ``(E) Allowance for international arrearages.--
                            ``(i) Adjustments.--If an appropriations 
                        bill or joint resolution is enacted for fiscal 
                        year 1998, 1999, or 2000 that includes an 
                        appropriation for arrearages for international 
                        organizations, international peacekeeping, and 
                        multilateral banks for that fiscal year, the 
                        adjustment shall be the amount of budget 
                        authority in such measure and the outlays 
                        flowing in all fiscal years from such budget 
                        authority.
                            ``(ii) Limitations.--The total amount of 
                        adjustments made pursuant to this subparagraph 
                        for the period of fiscal years 1998 through 
                        2000 shall not exceed $1,884,000,000 in budget 
                        authority.''.
    (b) Shifting of Discretionary Spending Limits Into the Balanced 
Budget and Emergency Deficit Control Act of 1985.--Section 251 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new subsection:
    ``(c) Discretionary Spending Limit.--As used in this part, the term 
`discretionary spending limit' means--
            ``(1) with respect to fiscal year 1997, for the 
        discretionary category, the current adjusted amount of new 
        budget authority and outlays;
            ``(2) with respect to fiscal year 1998--
                    ``(A) for the defense category: $269,000,000,000 in 
                new budget authority and $266,823,000,000 in outlays;
                    ``(B) for the nondefense category: $252,357,000,000 
                in new budget authority and $282,853,000,000 in 
                outlays; and
                    ``(C) for the violent crime reduction category: 
                $5,500,000,000 in new budget authority and 
                $3,592,000,000 in outlays;
            ``(3) with respect to fiscal year 1999--
                    ``(A) for the defense category: $271,500,000,000 in 
                new budget authority and $266,518,000,000 in outlays; 
                and
                    ``(B) for the nondefense category: $261,499,000,000 
                in new budget authority and $292,803,000,000 in 
                outlays;
            ``(4) with respect to fiscal year 2000, for the 
        discretionary category: $537,193,000,000 in new budget 
        authority and $564,265,000,000 in outlays;
            ``(5) with respect to fiscal year 2001, for the 
        discretionary category: $542,032,000,000 in new budget 
        authority and $564,396,000,000 in outlays; and
            ``(6) with respect to fiscal year 2002, for the 
        discretionary category: $551,074,000,000 in new budget 
        authority and $560,799,000,000 in outlays;
as adjusted in strict conformance with subsection (b).''.

SEC. 204. VIOLENT CRIME REDUCTION TRUST FUND.

    (a) Sequestration Regarding Violent Crime Reduction Trust Fund.--
Section 251A of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is repealed.
    (b) Conforming Amendment.--Section 310002 of Public Law 103-322 (42 
U.S.C. 14212) is repealed.

SEC. 205. ENFORCING PAY-AS-YOU-GO.

    (a) Extension.--Section 252 (2 U.S.C. 902) is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) Purpose.--The purpose of this section is to assure that any 
legislation enacted prior to September 30, 2002, affecting direct 
spending or receipts that increases the deficit will trigger an 
offsetting sequestration.
    ``(b) Sequestration.--
            ``(1) Timing.--Within 15 calendar days after Congress 
        adjourns to end a session and on the same day as a 
        sequestration (if any) under sections 251 and 253, there shall 
        be a sequestration to offset the amount of any net deficit 
        increase in the budget year caused by all direct spending and 
        receipts legislation (after adjusting for any prior 
        sequestration as provided by paragraph (2)) plus any net 
        deficit increase in the prior fiscal year caused by all direct 
        spending and receipts legislation not reflected in the final 
        OMB sequestration report for that year.
            ``(2) Calculation of deficit increase.--OMB shall calculate 
        the amount of deficit increase, if any, in the budget year by 
        adding--
                    ``(A) all applicable estimates of direct spending 
                and receipts legislation transmitted under subsection 
                (d) applicable to the budget year, other than any 
                amounts included in such estimates resulting from--
            ``(i) full funding of, and continuation of, the deposit 
        insurance guarantee commitment in effect on the date of 
        enactment of this section; and
            ``(ii) emergency provisions as designated under subsection 
        (e); and
                    ``(B) the estimated amount of savings in direct 
                spending programs applicable to the budget year 
                resulting from the prior year's sequestration under 
                this section or section 253, if any (except for any 
                amounts sequestered as a result of any deficit increase 
                in the fiscal year immediately preceding the prior 
                fiscal year), as published in OMB's final sequestration 
                report for that prior year; and
                    ``(C) all applicable estimates of direct spending 
                and receipts legislation transmitted under subsection 
                (d) for the current year that are not reflected in the 
                final OMB sequestration report for that year, other 
                than any amounts included in such estimates resulting 
                from emergency provisions as designated under 
                subsection (e).'';
            (2) by amending subsection (c)(1)(B), by inserting ``and 
        direct'' after ``guaranteed'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Estimates.--
            ``(1) CBO estimates.--As soon as practicable after Congress 
        completes action on any direct spending or receipts 
        legislation, CBO shall provide an estimate of the budgetary 
        effects of that legislation.
            ``(2) OMB estimates.--Not later than 5 calendar days 
        (excluding Saturdays, Sundays, or legal holidays) after the 
        enactment of any direct spending or receipts legislation, OMB 
        shall transmit a report to the House of Representatives and to 
        the Senate containing--
                    ``(A) the CBO estimate of the budgetary effects of 
                that legislation;
                    ``(B) an OMB estimate of the budgetary effects of 
                that legislation using current economic and technical 
                assumptions; and
                    ``(C) an explanation of any difference between the 
                two estimates.
            ``(3) Scope of estimates.--The estimates under this section 
        shall include the amount of change in outlays or receipts, as 
        the case may be, for the current year (if applicable), the 
        budget year, and each outyear.
            ``(4) 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.''; and
            (4) in subsection (e), by striking ``, for any fiscal year 
        from 1991 through 1998,'' and by striking ``through 1995''.

SEC. 206. REPORTS AND ORDERS.

    Section 254 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) by striking subsection (c) and redesignating 
        subsections (d) through (k) as (c) through (j), respectively;
            (2) in subsection (c)(2) (as redesignated), by striking 
        ``1998'' and inserting ``2002''; and
            (3)(A) in subsection (f)(2)(A) (as redesignated), by 
        striking ``1998'' and inserting ``2002''; and
            (B) in subsection (f)(3) (as redesignated), by striking 
        ``through 1998''.

SEC. 207. EXEMPT PROGRAMS AND ACTIVITIES.

    (a) Veterans Programs.--Section 255(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended as follows:
            (1) In the item relating to Veterans Insurance and 
        Indemnity, strike ``Indemnity'' and insert ``Indemnities''.
            (2) In the item relating to Veterans' Canteen Service 
        Revolving Fund, strike ``Veterans'''.
            (3) In the item relating to Benefits under chapter 21 of 
        title 38, strike ``(36-0137-0-1-702)'' and insert ``(36-0120-0-
        1-701)''.
            (4) In the item relating to Veterans' compensation, strike 
        ``Veterans' compensation'' and insert ``Compensation''.
            (5) In the item relating to Veterans' pensions, strike 
        ``Veterans' pensions'' and insert ``Pensions''.
            (6) After the last item, insert the following new items:
                    ``Benefits under chapter 35 of title 38, United 
                States Code, related to educational assistance for 
                survivors and dependents of certain veterans with 
                service-connected disabilities (36-0137-0-1-702);
                    ``Assistance and services under chapter 31 of title 
                38, United States Code, relating to training and 
                rehabilitation for certain veterans with service-
                connected disabilities (36-0137-0-1-702);
                    ``Benefits under subchapters I, II, and III of 
                chapter 37 of title 38, United States Code, relating to 
                housing loans for certain veterans and for the spouses 
                and surviving spouses of certain veterans Guaranty and 
                Indemnity Program Account (36-1119-0-1-704);
                    ``Loan Guaranty Program Account (36-1025-0-1-704); 
                and
                    ``Direct Loan Program Account (36-1024-0-1-704).''.
    (b) Certain Program Bases.--Section 255(f) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended to read as 
follows:
    ``(f) Optional Exemption of Military Personnel.--
            ``(1) The President may, with respect to any military 
        personnel account, exempt that account from sequestration or 
        provide for a lower uniform percentage reduction than would 
        otherwise apply.
            ``(2) The President may not use the authority provided by 
        paragraph (1) unless he notifies the Congress of the manner in 
        which such authority will be exercised on or before the date 
        specified in section 254(a) for the budget year.''.
    (c) Other Programs and Activities.--(1) Section 255(g)(1)(A) of the 
Balanced Budget Emergency Deficit Control Act of 1985 is amended as 
follows:
            (A) After the first item, insert the following new item:
                    ``Activities financed by voluntary payments to the 
                Government for goods or services to be provided for 
                such payments;''.
            (B) Strike ``Thrift Savings Fund (26-8141-0-7-602);''.
            (C) In the first item relating to the Bureau of Indian 
        Affairs, insert ``Indian land and water claims settlements 
        and'' after the comma.
            (D) In the second item relating to the Bureau of Indian 
        Affairs, strike ``miscellaneous'' and insert ``Miscellaneous'' 
        and strike ``, tribal trust funds''.
            (E) Strike ``Claims, defense (97-0102-0-1-051);''.
            (F) In the item relating to Claims, judgments, and relief 
        acts, strike ``806'' and insert ``808''.
            (G) Strike ``Coinage profit fund (20-5811-0-2-803)''.
            (H) Insert ``Compact of Free Association (14-0415-0-1-
        808);'' after the item relating to the Claims, judgments, and 
        relief acts.
            (I) Insert ``Conservation Reserve Program (12-2319-0-1-
        302);'' after the item relating to the Compensation of the 
        President.
            (J) In the item relating to the Customs Service, strike 
        ``852'' and insert ``806''.
            (K) In the item relating to the Comptroller of the 
        Currency, insert ``, Assessment funds (20-8413-0-8-373)'' 
        before the semicolon.
            (L) Strike ``Director of the Office of Thrift 
        Supervision;''.
            (M) Strike ``Eastern Indian land claims settlement fund 
        (14-2202-0-1-806);''.
            (N) After the item relating to the Exchange stabilization 
        fund, insert the following new items:
                    ``Farm Credit Administration, Limitation on 
                Administrative Expenses (78-4131-0-3-351);
                    ``Farm Credit System Financial Assistance 
                Corporation, interest payment (20-1850-0-1-908);''.
            (O) Strike ``Federal Deposit Insurance Corporation;''.
            (P) In the first item relating to the Federal Deposit 
        Insurance Corporation, insert ``(51-4064-0-3-373)'' before the 
        semicolon.
            (Q) In the second item relating to the Federal Deposit 
        Insurance Corporation, insert ``(51-4065-0-3-373)'' before the 
        semicolon.
            (R) In the third item relating to the Federal Deposit 
        Insurance Corporation, insert ``(51-4066-0-3-373)'' before the 
        semicolon.
            (S) In the item relating to the Federal Housing Finance 
        Board, insert ``(95-4039-0-3-371)'' before the semicolon.
            (T) In the item relating to the Federal payment to the 
        railroad retirement account, strike ``account'' and insert 
        ``accounts''.
            (U) In the item relating to the health professions graduate 
        student loan insurance fund, insert ``program account'' after 
        ``fund'' and strike ``(Health Education Assistance Loan 
        Program) (75-4305-0-3-553)'' and insert ``(75-0340-0-1-552)''.
            (V) In the item relating to Higher education facilities, 
        strike ``and insurance''.
            (W) In the item relating to Internal Revenue collections 
        for Puerto Rico, strike ``852'' and insert ``806''.
            (X) Amend the item relating to the Panama Canal Commission 
        to read as follows:
                    ``Panama Canal Commission, Panama Canal Revolving 
                Fund (95-4061-0-3-403);''.
            (Y) In the item relating to the Medical facilities 
        guarantee and loan fund, strike ``(75-4430-0-3-551)'' and 
        insert ``(75-9931-0-3-550)''.
            (Z) In the first item relating to the National Credit Union 
        Administration, insert ``operating fund (25-4056-0-3-373)'' 
        before the semicolon.
            (AA) In the second item relating to the National Credit 
        Union Administration, strike ``central'' and insert ``Central'' 
        and insert ``(25-4470-0-3-373)'' before the semicolon.
            (BB) In the third item relating to the National Credit 
        Union Administration, strike ``credit'' and insert ``Credit'' 
        and insert ``(25-4468-0-3-373)'' before the semicolon.
            (CC) After the third item relating to the National Credit 
        Union Administration, insert the following new item:
                    ``Office of Thrift Supervision (20-4108-0-3-
                373);''.
            (DD) In the item relating to Payments to health care trust 
        funds, strike ``572'' and insert ``571''.
            (EE) Strike ``Compact of Free Association, economic 
        assistance pursuant to Public Law 99-658 (14-0415-0-1-806);''.
            (FF) In the item relating to Payments to social security 
        trust funds, strike ``571'' and insert ``651''.
            (GG) Strike ``Payments to state and local government fiscal 
        assistance trust fund (20-2111-0-1-851);''.
            (HH) In the item relating to Payments to the United States 
        territories, strike ``852'' and insert ``806''.
            (II) Strike ``Resolution Funding Corporation;''.
            (JJ) In the item relating to the Resolution Trust 
        Corporation, insert ``Revolving Fund (22-4055-0-3-373)'' before 
        the semicolon.
            (KK) After the item relating to the Tennessee Valley 
        Authority funds, insert the following new items:
                    ``Thrift Savings Fund;
                    ``United States Enrichment Corporation (95-4054-0-
                3-271);
                    ``Vaccine Injury Compensation (75-0320-0-1-551);
                    ``Vaccine Injury Compensation Program Trust Fund 
                (20-8175-0-7-551);''.
    (2) Section 255(g)(1)(B) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended as follows:
            (A) Strike ``The following budget'' and insert ``The 
        following Federal retirement and disability''.
            (B) In the item relating to Black lung benefits, strike 
        ``lung benefits'' and insert ``Lung Disability Trust Fund''.
            (C) In the item relating to the Court of Federal Claims 
        Court Judges' Retirement Fund, strike ``Court of Federal''.
            (D) In the item relating to Longshoremen's compensation 
        benefits, insert ``Special workers compensation expenses,'' 
        before ``Longshoremen's''.
            (E) In the item relating to Railroad retirement tier II, 
        strike ``retirement tier II'' and insert ``Industry Pension 
        Fund''.
    (3) Section 255(g)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended as follows:
            (A) Strike the following items:
                    ``Agency for International Development, Housing, 
                and other credit guarantee programs (72-4340-0-3-151);
                    ``Agricultural credit insurance fund (12-4140-0-1-
                351);''.
            (B) In the item relating to Check forgery, strike ``Check'' 
        and insert ``United States Treasury check''.
            (C) Strike ``Community development grant loan guarantees 
        (86-0162-0-1-451);''.
            (D) After the item relating to the United States Treasury 
        Check forgery insurance fund, insert the following new item:
                    ``Credit liquidating accounts;''.
            (E) Strike the following items:
                    ``Credit union share insurance fund (25-4468-0-3-
                371);
                    ``Economic development revolving fund (13-4406-0-
                3);
                    ``Export-Import Bank of the United States, 
                Limitation of program activity (83-4027-0-1-155);
                    ``Federal deposit Insurance Corporation (51-8419-0-
                8-371);
                    ``Federal Housing Administration fund (86-4070-0-3-
                371);
                    ``Federal ship financing fund (69-4301-0-3-403);
                    ``Federal ship financing fund, fishing vessels (13-
                4417-0-3-376);
                    ``Government National Mortgage Association, 
                Guarantees of mortgage-backed securities (86-4238-0-3-
                371);
                    ``Health education loans (75-4307-0-3-553);
                    ``Indian loan guarantee and insurance fund (14-
                4410-0-3-452);
                    ``Railroad rehabilitation and improvement financing 
                fund (69-4411-0-3-401);
                    ``Rural development insurance fund (12-4155-0-3-
                452);
                    ``Rural electric and telephone revolving fund (12-
                4230-8-3-271);
                    ``Rural housing insurance fund (12-4141-0-3-371);
                    ``Small Business Administration, Business loan and 
                investment fund (73-4154-0-3-376);
                    ``Small Business Administration, Lease guarantees 
                revolving fund (73-4157-0-3-376);
                    ``Small Business Administration, Pollution control 
                equipment contract guarantee revolving fund (73-4147-0-
                3-376);
                    ``Small Business Administration, Surety bond 
                guarantees revolving fund (73-4156-0-3-376);
                    ``Department of Veterans Affairs Loan guaranty 
                revolving fund (36-4025-0-3-704);''.
    (d) Low-Income Programs.--Section 255(h) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended as follows:
            (1) Amend the item relating to Child nutrition to read as 
        follows:
                    ``State child nutrition programs (with the 
                exception of special milk programs) (12-3539-0-1-
                605);''.
            (2) Amend the item relating to the Women, infants, and 
        children program to read as follows:
                    ``Special supplemental nutrition program for women, 
                infants, and children (WIC) (12-3510-0-1-605).''.
    (e) Identification of Programs.--Section 255(i) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended to read as 
follows:
    ``(i) Identification of Programs.--For purposes of subsections (b), 
(g), and (h), each account is identified by the designated budget 
account identification code number set forth in the Budget of the 
United States Government 1996-Appendix, and an activity within an 
account is designated by the name of the activity and the 
identification code number of the account.''.
    (f) Optional Exemption of Military Personnel.--Section 255(h) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 (relating 
to optional exemption of military personnel) is repealed.

SEC. 208. GENERAL AND SPECIAL SEQUESTRATION RULES.

    (a) Section Heading.--(1) The section heading of section 256 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
striking ``exceptions, limitations, and special rules'' and inserting 
``general and special sequestration rules''.
    (2) The item relating to section 256 in the table contents set 
forth in section 250(a) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended to read as follows:

``Sec. 256. General and special sequestration rules.''.
    (b) Automatic Spending Increases.--Section 256(a) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by striking 
paragraph (1) and redesignating paragraphs (2) and (3) as paragraphs 
(1) and (2), respectively.
    (c) Guaranteed and Direct Student Loan Programs.--Section 256(b) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended to read as follows:
    ``(b) Student Loans.--(1) For all student loans under part B or D 
of title IV of the Higher Education Act of 1965 made during the period 
when a sequestration order under section 254 is in effect, origination 
fees under sections 438(c)(2) and 455(c) of that Act shall be increased 
by a uniform percentage sufficient to produce the dollar savings in 
student loan programs (as a result of that sequestration order) 
required by section 252 or 253, as applicable.
    ``(2) For any loan made during the period beginning on the date 
that an order issued under section 254 takes effect with respect to a 
fiscal year and ending at the close of such fiscal year, the 
origination fees which are authorized to be collected pursuant to 
sections 438(c)(2) and 455(c) of such Act shall be increased by 0.50 
percent.''.
    (d) Health Centers.--Section 256(e)(1) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking the dash 
and all that follows thereafter and inserting ``2 percent.''.
    (e) Federal Pay.--Section 256(g)(1) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by inserting 
``(including any amount payable under section 5303 or 5304 of title 5, 
United States Code)'' after ``such statutory pay system''.
    (f) Treatment of Federal Administrative Expenses.--Section 
256(h)(4) of the Balanced Budget and Emergency Deficit Control Act of 
1985 is amended by striking subparagraphs (D) and (H), by redesignating 
subparagraphs (E), (F), (G), and (I), as subparagraphs (D), (E), (F), 
and (G), respectively, and by adding at the end the following new 
subparagraph:
                    ``(H) Farm Credit Administration.''.
    (g) Commodity Credit Corporation.--Section 256(j)(5) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended to 
read as follows:
            ``(5) Dairy program.--Notwithstanding other provisions of 
        this subsection, as the sole means of achieving any reduction 
        in outlays under the milk price support program, the Secretary 
        of Agriculture shall provide for a reduction to be made in the 
        price received by producers for all milk produced in the United 
        States and marketed by producers for commercial use. That price 
        reduction (measured in cents per hundred weight of milk 
        marketed) shall occur under section 201(d)(2)(A) of the 
        Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin 
        on the day any sequestration order is issued under section 254, 
        and shall not exceed the aggregate amount of the reduction in 
        outlays under the milk price support program that otherwise 
        would have been achieved by reducing payments for the purchase 
        of milk or the products of milk under this subsection during 
        the applicable fiscal year.''.
    (h) Effects of Sequestration.--Section 256(k) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
            (1) In paragraph (1), strike ``other than a trust or 
        special fund account'' and insert ``, except as provided in 
        paragraph (5)'' before the period.
            (2) Strike paragraph (4), redesignate paragraphs (5) and 
        (6) as paragraphs (4) and (5), respectively, and amend 
        paragraph (5) (as redesignated) to read as follows:
            ``(5) Budgetary resources sequestered in revolving, trust, 
        and special fund accounts, and offsetting collections 
        sequestered in appropriation accounts shall not be available 
        for obligation during the fiscal year in which the 
        sequestration occurs, but shall be available in subsequent 
        years to the extent otherwise provided in law.''.

SEC. 209. THE BASELINE.

    Section 257 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
    (1) in subsection (b)(2) by amending subparagraph (A) to read as 
follows:
            ``(A)(i) Except as provided in clause (ii), no program with 
        estimated current year outlays greater than $50,000,000 shall 
        be assumed to expire in the budget year or the outyears.
            ``(ii) Clause (i) shall not apply to a program if 
        legislation establishing or modifying that program contains a 
        provision stating `Section 257(b)(2) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 shall not apply to the 
        program specified in ____ of this Act.', the blank space being 
        filled in with the appropriate section or sections of that 
        legislation.
            ``(iii) No bill, resolution, amendment, motion, or 
        conference report shall be subject to a point of order under 
        section 306 of the Congressional Budget Act of 1974 solely 
        because it includes the provision specified in clause (ii).
            ``(iv) Upon the expiration of the suspensions contained in 
        section 171 of Public Law 104-193 with regard to a program in 
        such Act with estimated fiscal year outlays greater than 
        $50,000,000, that program shall be assumed to operate under 
        that Act as in effect immediately before reversion to the laws 
        suspended by such Act.''
            (2) by adding at the end of subsection (b)(2) the following 
        new subparagraph:
            ``(D) If any law expires before the budget year or any 
        outyear, then any program with estimated current year outlays 
        greater than $50 million which operates under that law shall be 
        assumed to continue to operate under that law as in effect 
        immediately before its expiration.'';
            (3) in the second sentence of subsection (c)(5), by 
        striking ``national product fixed-weight price index'' and 
        inserting ``domestic product chain-type price index''; and
            (4) by striking subsection (e) and inserting the following:
    ``(e) Asset Sales.--Amounts realized from the sale of an asset 
other than a loan asset shall not be counted against legislation if 
that sale would result in a financial cost to the Federal 
Government.''.

SEC. 210. TECHNICAL CORRECTION.

    Section 258 of the Balanced Budget and Emergency Deficit Control 
Act of 1985, entitled ``Modification of Presidential Order'', is 
repealed.

SEC. 211. JUDICIAL REVIEW.

    Section 274 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended as follows:
            (1) Strike ``252'' or ``252(b)'' each place it occurs and 
        insert ``254''.
            (2) In subsection (d)(1)(A), strike ``257(l) to the extent 
        that'' and insert ``256(a) if'', strike the parenthetical 
        phrase, and at the end insert ``or''.
            (3) In subsection (d)(1)(B), strike ``new budget'' and all 
        that follows through ``spending authority'' and insert 
        ``budgetary resources'' and strike ``or'' after the comma.
            (4) Strike subsection (d)(1)(C).
            (5) Strike subsection (f) and redesignate subsections (g) 
        and (h) as subsections (f) and (g), respectively.
            (6) In subsection (g) (as redesignated), strike ``base 
        levels of total revenues and total budget outlays, as'' and 
        insert ``figures'', and ``251 (a)(2)(B) or (c)(2),'' and insert 
        ``254''.

SEC. 212. EFFECTIVE DATE.

    (a) Expiration.--Section 275(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended--
            (1) by striking ``Part C of this title, section'' and 
        inserting ``Sections 251, 253, 258B, and'';
            (2) by striking ``1995'' and inserting ``2002''; and
            (3) by adding at the end the following new sentence: ``The 
        remaining sections of part C of this title shall expire 
        September 30, 2006.''.
    (b) Expiration.--Section 14002(c)(3) of the Omnibus Budget 
Reconciliation Act of 1993 (2 U.S.C. 900 note) is repealed.

SEC. 213. REDUCTION OF PREEXISTING BALANCES AND EXCLUSION OF EFFECTS OF 
              THIS ACT FROM PAYGO SCORECARD.

    Upon the enactment of this Act, the Director of the Office of 
Management and Budget shall--
            (1) reduce any balances of direct spending and receipts 
        legislation for any fiscal year under section 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 to 
        zero; and
            (2) not make any estimates of changes in direct spending 
        outlays and receipts under subsection (d) of such section 252 
        for any fiscal year resulting from the enactment of this Act or 
        the Revenue Reconciliation Act of 1997.
                                 <all>