[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 853 Reported in House (RH)]





                                                 Union Calendar No. 178

106th CONGRESS

  1st Session

                               H. R. 853

               [Report No. 106-198, Parts I, II, and III]

_______________________________________________________________________

                                 A BILL

  To amend the Congressional Budget Act of 1974 to provide for joint 
   resolutions on the budget, reserve funds for emergency spending, 
      strengthened enforcement of budgetary decisions, increased 
  accountability for Federal spending, accrual budgeting for Federal 
insurance programs, mitigation of the bias in the budget process toward 
 higher spending, modifications in paygo requirements when there is an 
               on-budget surplus, and for other purposes.

_______________________________________________________________________

                             August 5, 1999

      Reported from the Committee on the Budget with an amendment

                             August 5, 1999

 Reported from the Committee on Rules with an amendment, committed to 
the Committee of the Whole House on the State of the Union, and ordered 
                             to be printed





                                                 Union Calendar No. 178
106th CONGRESS
  1st Session
                                H. R. 853

               [Report No. 106-198, Parts I, II, and III]

  To amend the Congressional Budget Act of 1974 to provide for joint 
   resolutions on the budget, reserve funds for emergency spending, 
      strengthened enforcement of budgetary decisions, increased 
  accountability for Federal spending, accrual budgeting for Federal 
insurance programs, mitigation of the bias in the budget process toward 
 higher spending, modifications in paygo requirements when there is an 
               on-budget surplus, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 1999

Mr. Nussle (for himself, Mr. Cardin, Mr. Kasich, Mr. Dreier, Mr. Goss, 
Mr. Minge, Mr. Sununu, Mr. Radanovich, and Mr. Stenholm) introduced the 
following bill; which was referred to the Committee on the Budget, and 
   in addition to the Committees on Rules, and Appropriations, 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

                             June 24, 1999

     Reported with an amendment, adversely, from the Committee on 
                             Appropriations
          [Omit the part in bold brackets and struck through]

                             August 5, 1999

      Reported from the Committee on the Budget with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             August 5, 1999

Additional sponsors: Mr. Barton of Texas, Mr. Castle, Mr. English, Mr. 
Greenwood, Mr. Hastings of Washington, Mrs. Johnson of Connecticut, Ms. 
 Pryce of Ohio, Mr. Ramstad, Mr. Sessions, Mr. Shays, Mrs. Myrick, Mr. 
  Reynolds, Mr. Gutknecht, Mr. Upton, Mr. Campbell, Mr. Burr of North 
   Carolina, Mr. Linder, Mr. Barr of Georgia, Mr. Royce, Mr. Hall of 
  Texas, Mr. Condit, Mr. Gekas, Mr. Ryan of Wisconsin, and Mr. Toomey
  Deleted sponsors: Mr. Regula (added March 3, 1999; deleted May 27, 
  1999), and Mr. Hobson (added April 26, 1999; deleted June 18, 1999)

                             August 5, 1999

 Reported from the Committee on Rules with an amendment, committed to 
the Committee of the Whole House on the State of the Union, and ordered 
                             to be printed
 [Strike out all after the enacting clause and insert the part printed 
                           in boldface roman]

_______________________________________________________________________

                                 A BILL


 
  To amend the Congressional Budget Act of 1974 to provide for joint 
   resolutions on the budget, reserve funds for emergency spending, 
      strengthened enforcement of budgetary decisions, increased 
  accountability for Federal spending, accrual budgeting for Federal 
insurance programs, mitigation of the bias in the budget process toward 
 higher spending, modifications in paygo requirements when there is an 
               on-budget surplus, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the 
``Comprehensive Budget Process Reform Act of 1999''.</DELETED>
<DELETED>    (b) Table of Contents.--</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Purpose.
<DELETED>Sec. 3. Effective date.
<DELETED>Sec. 4. Declaration of purposes for the Budget Act.
               <DELETED>TITLE I--BUDGET WITH FORCE OF LAW

<DELETED>Sec. 101. Purposes.
<DELETED>Sec. 102. The timetable.
<DELETED>Sec. 103. Annual joint resolutions on the budget.
<DELETED>Sec. 104. Budget required before spending bills may be 
                            considered; fall-back procedures if 
                            President vetoes joint budget resolution.
<DELETED>Sec. 105. Reaffirming special budgetary status of social 
                            security.
<DELETED>Sec. 106. Conforming amendments to effectuate joint 
                            resolutions on the budget.
            <DELETED>TITLE II--RESERVE FUNDS FOR EMERGENCIES

<DELETED>Sec. 201. Purpose.
<DELETED>Sec. 202. Repeal of adjustments for emergencies.
<DELETED>Sec. 203. OMB emergency criteria.
<DELETED>Sec. 204. Development of guidelines for application of 
                            emergency definition.
<DELETED>Sec. 205. Reserve funds for emergencies in President's budget.
<DELETED>Sec. 206. Adjustments and reserve funds for emergencies in 
                            joint budget resolutions.
<DELETED>Sec. 207. Committee notification of emergency legislation.
<DELETED>Sec. 208. Application of section 306 to emergencies in excess 
                            of amounts in reserve funds.
<DELETED>Sec. 209. Up-to-date tabulations.
<DELETED>Sec. 210. Report of Committees on the Budget.
<DELETED>Sec. 211. Prohibition on amendments to emergency reserve 
                            funds.
<DELETED>Sec. 312. Effective active date.
         <DELETED>TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

<DELETED>Sec. 301. Purposes.
   <DELETED>Subtitle A--Application of Points of Order to Unreported 
                              Legislation

<DELETED>Sec. 311. Application of Budget Act points of order to 
                            unreported legislation.
         <DELETED>Subtitle B--Compliance with Budget Resolution

<DELETED>Sec. 321. Budget compliance statements.
       <DELETED>Subtitle C--Justification for Budget Act Waivers

<DELETED>Sec. 331. Justification for Budget Act waivers in the House of 
                            Representatives.
         <DELETED>Subtitle D--CBO Scoring of Conference Reports

<DELETED>Sec. 341. CBO scoring of conference reports.
         <DELETED>TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

<DELETED>Sec. 401. Purposes.
        <DELETED>Subtitle A--Prohibitions on Indefinite Spending

<DELETED>Sec. 411. Fixed-year authorizations required for new programs.
<DELETED>Sec. 412. Amendments to subject new entitlements to annual 
                            appropriations.
 <DELETED>Subtitle B--Enhanced Congressional Oversight Responsibilities

<DELETED>Sec. 421. Ten-year congressional review requirement of 
                            permanent budget authority.
<DELETED>Sec. 422. Justifications of direct spending.
<DELETED>Sec. 423. Survey of activity reports of House committees.
<DELETED>Sec. 424. Continuing study of additional budget process 
                            reforms.
<DELETED>Sec. 425. GAO reports.
            <DELETED>Subtitle C--Strengthened Accountability

<DELETED>Sec. 431. Ten-year CBO estimates.
<DELETED>Sec. 432. Repeal of rule XXIII of the Rules of the House of 
                            Representatives.
  <DELETED>TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-
                            TERM OBLIGATIONS

<DELETED>Sec. 501. Purposes.
 <DELETED>Subtitle A--Budgetary Treatment of Federal Insurance Programs

<DELETED>Sec. 511. Federal insurance programs.
       <DELETED>Subtitle B--Reports on Long-Term Budgetary Trends

<DELETED>Sec. 521. Reports on long-term budgetary trends.
    <DELETED>TITLE VI--BASELINE, BYRD RULE, LOCK-BOX, AND AUTOMATIC 
                         CONTINUING RESOLUTION

<DELETED>Sec. 601. Purpose.
                   <DELETED>Subtitle A--The Baseline

<DELETED>Sec. 611. The President's budget.
<DELETED>Sec. 612. The congressional budget.
<DELETED>Sec. 613. Congressional Budget Office reports to committees.
<DELETED>Sec. 614. Outyear assumptions for discretionary spending.
                   <DELETED>Subtitle B--The Byrd Rule

<DELETED>Sec. 621. Limitation on Byrd rule.
         <DELETED>Subtitle C--Spending Accountability Lock-Box

<DELETED>Sec. 631. Short title.
<DELETED>Sec. 632. Spending accountability lock-box ledger.
<DELETED>Sec. 633. Downward adjustment of section 302(a) allocations 
                            and section 302(b) suballocations.
<DELETED>Sec. 634. Periodic reporting of ledger statements.
<DELETED>Sec. 635. Downward adjustment of discretionary spending 
                            limits.
          <DELETED>Subtitle D--Automatic Continuing Resolution

<DELETED>Sec. 641. Automatic continuing resolution.
          <DELETED>TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

<DELETED>Sec. 701. Paygo requirements and the on-budget surplus.

<DELETED>SEC. 2. PURPOSE.</DELETED>

<DELETED>    The purposes of this Act are to--</DELETED>
        <DELETED>    (1) give the budget the force of law;</DELETED>
        <DELETED>    (2) budget for emergencies;</DELETED>
        <DELETED>    (3) display the unfunded liabilities of Federal 
        insurance programs;</DELETED>
        <DELETED>    (4) strengthen enforcement of budgetary 
        decisions;</DELETED>
        <DELETED>    (5) increase accountability for Federal 
        spending;</DELETED>
        <DELETED>    (6) mitigate the bias in the budget process toward 
        higher spending; and</DELETED>
        <DELETED>    (7) modify paygo requirements when there is an on-
        budget surplus.</DELETED>

<DELETED>SEC. 3. EFFECTIVE DATE.</DELETED>

<DELETED>    Except as otherwise specifically provided, this Act and 
the amendments made by this Act shall become effective on the date of 
enactment of this Act and shall apply with respect to fiscal years 
beginning after September 30, 2000.</DELETED>

<DELETED>SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET ACT.</DELETED>

<DELETED>    Paragraphs (1) and (2) of section 2 of the Congressional 
Budget and Impoundment Control Act of 1974 are amended to read as 
follows:</DELETED>
        <DELETED>    ``(1) to assure effective control over the 
        budgetary process;</DELETED>
        <DELETED>    ``(2) to facilitate the determination each year of 
        the appropriate level of Federal revenues and expenditures by 
        the Congress and the President;''.</DELETED>

          <DELETED>TITLE I--BUDGET WITH FORCE OF LAW</DELETED>

<DELETED>SEC. 101. PURPOSES.</DELETED>

<DELETED>    The purposes of this title are to--</DELETED>
        <DELETED>    (1) focus initial budgetary deliberations on 
        aggregate levels of Federal spending and taxation;</DELETED>
        <DELETED>    (2) encourage cooperation between Congress and the 
        President in developing overall budgetary priorities; 
        and</DELETED>
        <DELETED>    (3) reach budgetary decisions early in the 
        legislative cycle.</DELETED>

<DELETED>SEC. 102. THE TIMETABLE.</DELETED>

<DELETED>    Section 300 of the Congressional Budget Act of 1974 is 
amended to read as follows:</DELETED>

                     <DELETED>``timetable</DELETED>

<DELETED>    ``Sec. 300. The timetable with respect to the 
congressional budget process for any fiscal year is as 
follows:</DELETED>

<DELETED>``On or before:            Action to be completed:
    <DELETED>First Monday in 
        February.
                                        <DELETED>President submits his 
                                                budget.
    <DELETED>February 15...........
                                        <DELETED>Congressional Budget 
                                                Office submits report 
                                                to Budget Committees.
    <DELETED>Not later than 6 weeks 
        after President submits 
        budget.
                                        <DELETED>Committees submit 
                                                views and estimates to 
                                                Budget Committees.
    <DELETED>April 1...............
                                        <DELETED>Senate Budget 
                                                Committee reports joint 
                                                resolution on the 
                                                budget.
    <DELETED>April 15..............
                                        <DELETED>Congress completes 
                                                action on joint 
                                                resolution on the 
                                                budget.
    <DELETED>June 10...............
                                        <DELETED>House Appropriations 
                                                Committee reports last 
                                                annual appropriation 
                                                bill.
    <DELETED>June 15...............
                                        <DELETED>Congress completes 
                                                action on 
                                                reconciliation 
                                                legislation.
    <DELETED>June 30...............
                                        <DELETED>House completes action 
                                                on annual appropriation 
                                                bills.
    <DELETED>October 1.............
                                        <DELETED>Fiscal year begins.''.

<DELETED>SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.</DELETED>

<DELETED>    (a) Annual Joint Resolutions on the Budget.--(1) Section 
301 of the Congressional Budget Act of 1974 is amended to read as 
follows:</DELETED>

      <DELETED>``annual joint resolutions on the budget</DELETED>

<DELETED>    ``Sec. 301. (a) Content of Joint Resolution on the 
Budget.--On or before April 15 of each year, the Congress shall 
complete action on a joint resolution on the budget for the fiscal year 
beginning on October 1 of such year. The joint resolution shall set 
forth appropriate levels for the fiscal year beginning on October 1 of 
such year and for at least each of the 4 ensuing fiscal years for the 
following--</DELETED>
        <DELETED>    ``(1) totals of new budget authority and 
        outlays;</DELETED>
        <DELETED>    ``(2) total Federal revenues and the amount, if 
        any, by which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;</DELETED>
        <DELETED>    ``(3) the surplus or deficit in the 
        budget;</DELETED>
        <DELETED>    ``(4) subtotals of new budget authority and 
        outlays for nondefense discretionary spending, defense 
        discretionary spending, and direct spending, and, if deemed 
        necessary, other subsets of discretionary spending and of 
        direct spending;</DELETED>
        <DELETED>    ``(5) the level of the statutory limit on the 
        public debt;</DELETED>
        <DELETED>    ``(6) for fiscal years to which the amendments 
        made by title II of the Comprehensive Budget Process Reform Act 
        of 1999 apply, subtotals of new budget authority and outlays 
        for emergencies, including subtotals for direct spending and 
        discretionary spending;</DELETED>
        <DELETED>    ``(7) For purposes of Senate enforcement under 
        this title, outlays of the old-age, survivors, and disability 
        insurance program established under title II of the Social 
        Security Act for the fiscal year of the resolution and for each 
        of the 4 succeeding fiscal years; and</DELETED>
        <DELETED>    ``(8) For purposes of Senate enforcement under 
        this title, revenues of the old-age, survivors, and disability 
        insurance program established under title II of the Social 
        Security Act (and the related provisions of the Internal 
        Revenue Code of 1986) for the fiscal year of the resolution and 
        for each of the 4 succeeding fiscal years.</DELETED>
<DELETED>    ``(b) Additional Matters in Joint Resolution.--The joint 
resolution on the budget may--</DELETED>
        <DELETED>    ``(1) include a heading entitled `Debt Increase as 
        Measure of Deficit' in which the joint resolution shall set 
        forth the amounts by which the debt subject to limit (in 
        section 3101 of title 31, United States Code) has increased or 
        would increase in each of the relevant fiscal years;</DELETED>
        <DELETED>    ``(2) if submitted by the Committee on Ways and 
        Means of the House of Representatives or the Committee on 
        Finance of the Senate to the Committee on the Budget of that 
        House of Congress, amend section 3101 of title 31, United 
        States Code, to change the statutory limit on the public 
        debt;</DELETED>
        <DELETED>    ``(3) require a procedure under which all or 
        certain bills or resolutions providing new budget authority or 
        new entitlement authority for such fiscal year shall not be 
        enrolled until the Congress has completed action on any 
        reconciliation bill or reconciliation resolution or both 
        required by such concurrent resolution to be reported in 
        accordance with section 310(b);</DELETED>
        <DELETED>    ``(4) require such other congressional procedures, 
        relating to the budget, as may be appropriate to carry out the 
        purposes of this Act; and</DELETED>
        <DELETED>    ``(5) set forth procedures in the Senate whereby 
        committee allocations, aggregates, and other levels can be 
        revised for legislation if that legislation would not increase 
        the deficit, or would not increase the deficit when taken with 
        other legislation enacted after the adoption of the resolution, 
        for the first fiscal year or the total period of fiscal years 
        covered by the resolution.</DELETED>
<DELETED>    ``(c) Consideration of Procedures or Matters Which Have 
the Effect of Changing any Rule of the House of Representatives.--If 
the Committee on the Budget of the House of Representatives reports any 
joint resolution on the budget which includes any procedure or matter 
which has the effect of changing any rule of the House of 
Representatives, such joint resolution shall then be referred to the 
Committee on Rules with instructions to report it within five calendar 
days (not counting any day on which the House is not in session). The 
Committee on Rules shall have jurisdiction to report any joint 
resolution referred to it under this paragraph with an amendment or 
amendments changing or striking any such procedure or matter.</DELETED>
<DELETED>    ``(d) Views and Estimates of Other Committees.--Within 6 
weeks after the President submits a budget under section 1105(a) of 
title 31, United States Code, or at such time as may be requested by 
the chairman of the Committee on the Budget, each committee of the 
House of Representatives having legislative jurisdiction shall submit 
to the Committee on the Budget of the House and each committee of the 
Senate having legislative jurisdiction shall submit to the Committee on 
the Budget of the Senate its views and estimates (as determined by the 
committee making such submission) with respect to all matters set forth 
in subsections (a) and (b) which relate to matters within the 
jurisdiction or functions of such committee. The Joint Economic 
Committee shall submit to the Committees on the Budget of both Houses 
its recommendations as to the fiscal policy appropriate to the goals of 
the Employment Act of 1946. Any other committee of the House of 
Representatives or the Senate may submit to the Committee on the Budget 
of its House, and any joint committee of the Congress may submit to the 
Committees on the Budget of both Houses, its views and estimates with 
respect to all matters set forth in subsections (a) and (b) which 
relate to matters within its jurisdiction or functions. Any other 
committee of the House of Representatives or the Senate that 
anticipates that the committee will consider legislation establishing, 
amending, or reauthorizing any Federal program likely to have a 
significant budgetary impact on any State, local, or tribal government, 
or likely to have a significant financial impact on the private sector, 
including any legislative proposal submitted by the executive branch 
likely to have such a budgetary or financial impact, shall include its 
views and estimates on that proposal to the Committee on the Budget of 
the applicable House.</DELETED>
<DELETED>    ``(e) Hearings and Report.--</DELETED>
        <DELETED>    ``(1) In general.--In developing the joint 
        resolution on the budget referred to in subsection (a) for each 
        fiscal year, the Committee on the Budget of each House shall 
        hold hearings and shall receive testimony from Members of 
        Congress and such appropriate representatives of Federal 
        departments and agencies, the general public, and national 
        organizations as the committee deems desirable. Each of the 
        recommendations as to short-term and medium-term goal set forth 
        in the report submitted by the members of the Joint Economic 
        Committee under subsection (d) may be considered by the 
        Committee on the Budget of each House as part of its 
        consideration of such concurrent resolution, and its report may 
        reflect its views thereon, including its views on how the 
        estimates of revenues and levels of budget authority and 
        outlays set forth in such concurrent resolution are designed to 
        achieve any goals it is recommending.</DELETED>
        <DELETED>    ``(2) Required contents of report.--The report 
        accompanying the resolution shall include--</DELETED>
                <DELETED>    ``(A) new budget authority and outlays for 
                each major functional category, based on allocations of 
                the total levels set forth pursuant to subsection 
                (a)(1);</DELETED>
                <DELETED>    ``(B) a comparison of the levels of total 
                new budget authority, total outlays, total revenues, 
                and the surplus or deficit for each fiscal year set 
                forth in the resolution with those requested in the 
                budget submitted by the President;</DELETED>
                <DELETED>    ``(C) with respect to each major 
                functional category, an estimate of total new budget 
                authority and total outlays, with the estimates divided 
                between discretionary and direct spending 
                amounts;</DELETED>
                <DELETED>    ``(D) a measure, as a percentage of gross 
                domestic product, of total outlays, total Federal 
                revenues, the surplus or deficit, and new outlays for 
                nondefense discretionary spending, defense spending, 
                and direct spending as set forth in such 
                resolution;</DELETED>
                <DELETED>    ``(E) the economic assumptions that 
                underlie each of the matters set forth in the 
                resolution and any alternative economic assumptions and 
                objectives the committee considered;</DELETED>
                <DELETED>    ``(F) information, data, and comparisons 
                indicating the manner in which, and the basis on which, 
                the committee determined each of the matters set forth 
                in the resolution;</DELETED>
                <DELETED>    ``(G) a justification for allocating any 
                new budget authority and outlays for any new program, 
                project, or activity to a committee for which such new 
                budget authority and outlays would not be subject to 
                discretionary appropriations;</DELETED>
                <DELETED>    ``(H) allocations described in section 
                302(a);</DELETED>
                <DELETED>    ``(I) the estimated levels of tax 
                expenditures (the tax expenditures budget) by major 
                items and functional categories for the President's 
                budget and in the resolution; and</DELETED>
                <DELETED>    ``(J) if the joint resolution on the 
                budget includes any allocation to a committee (other 
                than the Committee on Appropriations) of levels in 
                excess of current law levels, a justification for not 
                subjecting any program, project, or activity (for which 
                the allocation is made) to annual discretionary 
                appropriation.''.</DELETED>
        <DELETED>    ``(3) Additional contents of report.--The report 
        accompanying the resolution may include--</DELETED>
                <DELETED>    ``(A) reconciliation directives described 
                in section 310;</DELETED>
                <DELETED>    ``(B) a statement of any significant 
                changes in the proposed levels of Federal assistance to 
                State and local governments;</DELETED>
                <DELETED>    ``(C) an allocation of the level of 
                Federal revenues recommended in the resolution among 
                the major sources of such revenues; and</DELETED>
                <DELETED>    ``(D) other matters, relating to the 
                budget and to fiscal policy, that the committee deems 
                appropriate.</DELETED>
<DELETED>    ``(f) Achievement of Goals for Reducing Unemployment.--
</DELETED>
        <DELETED>    (1) If, pursuant to section 4(c) of the Employment 
        Act of 1946, the President recommends in the Economic Report 
        that the goals for reducing unemployment set forth in section 
        4(b) of such Act be achieved in a year after the close of the 
        five-year period prescribed by such subsection, the concurrent 
        resolution on the budget for the fiscal year beginning after 
        the date on which such Economic Report is received by the 
        Congress may set forth the year in which, in the opinion of the 
        Congress, such goals can be achieved.</DELETED>
        <DELETED>    ``(2) After the Congress has expressed its opinion 
        pursuant to paragraph (1) as to the year in which the goals for 
        reducing unemployment set forth in section 4(b) of the 
        Employment Act of 1946 can be achieved, if, pursuant to section 
        4(e) of such Act, the President recommends in the Economic 
        Report that such goals be achieved in a year which is different 
        from the year in which the Congress has expressed its opinion 
        that such goals should be achieved, either in its action 
        pursuant to paragraph (1) or in its most recent action pursuant 
        to this paragraph, the concurrent resolution on the budget for 
        the fiscal year beginning after the date on which such Economic 
        Report is received by the Congress may set forth the year in 
        which, in the opinion of the Congress, such goals can be 
        achieved.</DELETED>
        <DELETED>    ``(3) It shall be in order to amend the provision 
        of such resolution setting forth such year only if the 
        amendment thereto also proposes to alter the estimates, 
        amounts, and levels (as described in subsection (a)) set forth 
        in such resolution in germane fashion in order to be consistent 
        with the economic goals (as described in sections 3(a)(2) and 
        (4)(b) of the Employment Act of 1946) which such amendment 
        proposes can be achieved by the year specified in such 
        amendment.</DELETED>
<DELETED>    ``(g) Economic Assumptions.--</DELETED>
        <DELETED>    ``(1) It shall not be in order in the Senate to 
        consider any joint resolution on the budget for a fiscal year, 
        or any amendment thereto, or any conference report thereon, 
        that sets forth amounts and levels that are determined on the 
        basis of more than one set of economic and technical 
        assumptions.</DELETED>
        <DELETED>    ``(2) The joint explanatory statement accompanying 
        a conference report on a joint resolution on the budget shall 
        set forth the common economic assumptions upon which such joint 
        statement and conference report are based, or upon which any 
        amendment contained in the joint explanatory statement to be 
        proposed by the conferees in the case of technical 
        disagreement, is based.</DELETED>
        <DELETED>    ``(3) Subject to periodic reestimation based on 
        changed economic conditions or technical estimates, 
        determinations under titles III and IV of the Congressional 
        Budget Act of 1974 shall be based upon such common economic and 
        technical assumptions.</DELETED>
<DELETED>    ``(h) Budget Committees Consultation With Committees.--The 
Committee on the Budget of the House of Representatives shall consult 
with the committees of its House having legislative jurisdiction during 
the preparation, consideration, and enforcement of the joint resolution 
on the budget with respect to all matters which relate to the 
jurisdiction or functions of such committees.</DELETED>
<DELETED>    ``(i) Social Security Point of Order.--It shall not be in 
order in the Senate to consider any concurrent resolution on the budget 
(or amendment, motion, or conference report on the resolution) that 
would decrease the excess of social security revenues over social 
security outlays in any of the fiscal years covered by the concurrent 
resolution. No change in chapter 1 of the Internal Revenue Code of 1986 
shall be treated as affecting the amount of social security revenues 
unless such provision changes the income tax treatment of social 
security benefits.''.</DELETED>
<DELETED>    (b) President's Budget Submission to the Congress.--(1) 
The first two sentences of section 1105(a) of title 31, United States 
Code, are amended to read as follows:</DELETED>
<DELETED>``On or after the first Monday in January but not later than 
the first Monday in February of each year the President shall submit a 
budget of the United States Government for the following fiscal year 
which shall set forth the following levels:</DELETED>
        <DELETED>    ``(A) totals of new budget authority and 
        outlays;</DELETED>
        <DELETED>    ``(B) total Federal revenues and the amount, if 
        any, by which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;</DELETED>
        <DELETED>    ``(C) the surplus or deficit in the 
        budget;</DELETED>
        <DELETED>    ``(D) subtotals of new budget authority and 
        outlays for nondefense discretionary spending, defense 
        discretionary spending, and direct spending, and, if deemed 
        necessary, other subsets of discretionary spending and of 
        direct spending;</DELETED>
        <DELETED>    ``(E) the level of the statutory limit on the 
        public debt; and</DELETED>
        <DELETED>    ``(F) for fiscal years to which the amendments 
        made by title II of the Comprehensive Budget Process Reform Act 
        of 1999 apply, subtotals of new budget authority and outlays 
        for emergencies, including subtotals for direct spending and 
        discretionary spending.</DELETED>
<DELETED>Each budget submission shall include a budget message and 
summary and supporting information and, as a separately delineated 
statement, the levels required in the preceding sentence for at least 
each of the 4 ensuing fiscal years.''.</DELETED>
<DELETED>    (2) The third sentence of section 1105(a) of title 31, 
United States Code, is amended by inserting ``submission'' after 
``budget''.</DELETED>
<DELETED>    (c) Limitation on Contents of Budget Resolutions.--Section 
305 of the Congressional Budget Act of 1974 is amended by adding at the 
end the following new subsection:</DELETED>
<DELETED>    ``(e) Limitation on Contents.--(1) Any joint resolution on 
the budget or any amendment thereto or conference report thereon that 
contains any matter not specified in section 301(a) or (b) shall not be 
treated in the House of Representatives or the Senate as a budget 
resolution under subsection (a) or (b) or as a conference report on a 
budget resolution under subsection (c) of this section.</DELETED>
<DELETED>    ``(2) It shall not be in order in the House of 
Representatives or in the Senate to consider any joint resolution on 
the budget or any amendment thereto or conference report thereon that 
contains any matter referred to in paragraph (1).''.</DELETED>

<DELETED>SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE 
              CONSIDERED; FALL-BACK PROCEDURES IF PRESIDENT VETOES 
              JOINT BUDGET RESOLUTION.</DELETED>

<DELETED>    (a) Amendments to Section 303 and Conforming Amendments.--
(1) Section 303 of the Congressional Budget Act of 1974 is amended--
</DELETED>
        <DELETED>    (A) in subsection (b), by striking paragraph (2), 
        by inserting ``or'' at the end of paragraph (1), and by 
        redesignating paragraph (3) as paragraph (2); and</DELETED>
        <DELETED>    (B) by striking its section heading and inserting 
        the following new section heading: ``consideration of budget-
        related legislation before budget becomes law''.</DELETED>
<DELETED>    (2) Section 302(g)(1) of the Congressional Budget Act of 
1974 is amended by striking ``April 15'' and inserting the following: 
``the date upon which a joint resolution on the budget for a fiscal 
year is enacted''.</DELETED>
<DELETED>    (3) Section 3 of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(11) The term `vetoes' means, when referring to 
        a joint resolution on the budget for a fiscal year, whenever 
        the President returns such resolution with his objections to 
        the House in which it originated within ten days after 
        receiving the resolution or does not sign the resolution and 
        cannot return it due to a congressional adjournment that occurs 
        before the ten-day time limit.''.</DELETED>
<DELETED>    (4)(A) Section 904(c)(1) of the Congressional Budget Act 
of 1974 is amended by inserting ``303(a),'' before 
``305(b)(2),''.</DELETED>
<DELETED>    (B) Section 904(d)(2) of the Congressional Budget Act of 
1974 is amended by inserting ``303(a),'' before 
``305(b)(2),''.</DELETED>
<DELETED>    (b) Expedited Procedures Upon Veto of Joint Resolution on 
the Budget.--(1) Title III of the Congressional Budget Act of 1974 is 
amended by adding at the end the following new section:</DELETED>

 <DELETED>``expedited procedures upon veto of joint resolution on the 
                            budget</DELETED>

<DELETED>    ``Sec. 316. (a) Special Rule.--If the President vetoes a 
joint resolution on the budget for a fiscal year, the chairman of the 
Committee on Budget of the House of Representatives or Senate may 
introduce a concurrent resolution on the budget or joint resolution on 
the budget for such fiscal year. If the Committee on the Budget of 
either House fails to report such concurrent or joint resolution 
referred to it within three legislative days after the date of such 
referral, the committee shall be automatically discharged from further 
consideration of such resolution and such resolution shall be placed on 
the appropriate calendar.</DELETED>
<DELETED>    ``(b) Procedure in the House of Representatives and the 
Senate.--</DELETED>
        <DELETED>    ``(1) Except as provided in paragraph (2), the 
        provisions of section 305 for the consideration in the House of 
        Representatives and in the Senate of joint resolutions on the 
        budget and conference reports thereon shall also apply to the 
        consideration of concurrent resolutions on the budget 
        introduced under subsection (a) and conference reports 
        thereon.</DELETED>
        <DELETED>    ``(2) Debate in the Senate on any concurrent 
        resolution on the budget or joint resolution on the budget 
        introduced under subsection (a), and all amendments thereto and 
        debatable motions and appeals in connection therewith, shall be 
        limited to not more than 10 hours and in the House such debate 
        shall be limited to not more than 3 hours.</DELETED>
<DELETED>    ``(c) Contents of Concurrent Resolutions.--The contents of 
any concurrent resolution on the budget introduced under subsection (a) 
shall be in compliance with sections 301 and 305.</DELETED>
<DELETED>    ``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a 
concurrent resolution on the budget described in subsection (a) is 
agreed to, then the aggregates, allocations, and reconciliation 
directives (if any) contained in the accompanying report to such 
concurrent resolution shall be considered to be the aggregates, 
allocations, and reconciliation directives for all purposes of this 
title for the applicable fiscal years and such concurrent resolution 
shall be deemed to be a joint resolution for all purposes of this title 
and the Rules of the House of Representatives and any reference to the 
date of enactment of a joint resolution on the budget shall be deemed 
to be a reference to the date agreed to when applied to such concurrent 
resolution.''.</DELETED>
<DELETED>    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 315 the following new 
item:</DELETED>

<DELETED>``Sec. 316. Expedited procedures upon veto of joint resolution 
                            on the budget.''.

<DELETED>SEC. 105. REAFFIRMING SPECIAL BUDGETARY STATUS OF SOCIAL 
              SECURITY.</DELETED>

<DELETED>    (a) In General.--Title III of the Congressional Budget Act 
of 1974 (as amended by section 104(b)) is further amended by adding at 
the end the following new section:</DELETED>

                  <DELETED>``social security</DELETED>

<DELETED>    ``Sec. 317. (a) In General.--The joint resolution on the 
budget shall not include the outlays and revenue totals of the old age, 
survivors, and disability insurance program established under title II 
of the Social Security Act or the related provisions of the Internal 
Revenue Code of 1986 in the surplus or deficit totals required by 
section 301(a), in any other surplus or deficit totals required by this 
Act, or in any other surplus or deficit totals required by chapter 11 
of title 31, United States Code.</DELETED>
<DELETED>    ``(b) Limitation on Changes to the Social Security Act.--
Notwithstanding any other provision of law, it shall not be in order in 
the Senate or the House of Representatives to consider any 
reconciliation bill or reconciliation resolution reported pursuant to a 
joint resolution on the budget agreed to under section 301 or 304, or a 
joint resolution pursuant to section 258C of the Balanced Budget and 
Emergency Deficit Control Act of 1985, or any amendment thereto or 
conference report thereon, that contains recommendations with respect 
to the old-age, survivors, and disability insurance program established 
under title II of the Social Security Act.</DELETED>
<DELETED>    ``(c) Exclusion of Social Security From All Budgets.--
Notwithstanding any other provision of law, the receipts and 
disbursements of the Federal Old-Age and Survivors Insurance Trust Fund 
and the Federal Disability Insurance Trust Fund shall not be counted as 
new budget authority, outlays, receipts, or deficit or surplus for 
purposes of--</DELETED>
        <DELETED>    ``(1) the budget of the United States Government 
        as submitted by the President,</DELETED>
        <DELETED>    ``(2) the congressional budget, or</DELETED>
        <DELETED>    ``(3) the Balanced Budget and Emergency Deficit 
        Control Act of 1985.</DELETED>
<DELETED>    ``(d) Protection of OASDI Trust Funds in the House of 
Representatives.--(1) It shall not be in order in the House of 
Representatives to consider any bill or joint resolution, as reported, 
or any amendment thereto or conference report thereon, if, upon 
enactment--</DELETED>
        <DELETED>    ``(A)(i) such legislation under consideration 
        would provide for a net increase in OASDI benefits of at least 
        0.02 percent of the present value of future taxable payroll for 
        the 75-year period utilized in the most recent annual report of 
        the Board of Trustees provided pursuant to section 201(c)(2) of 
        the Social Security Act, and (ii) such legislation under 
        consideration does not provide at least a net increase, for 
        such 75-year period, in OASDI taxes of the amount by which the 
        net increase in such benefits exceeds 0.02 percent of the 
        present value of future taxable payroll for such 75-year 
        period,</DELETED>
        <DELETED>    ``(B)(i) such legislation under consideration 
        would provide for a net increase in OASDI benefits (for the 5-
        year estimating period for such legislation under 
        consideration), (ii) such net increase, together with the net 
        increases in OASDI benefits resulting from previous legislation 
        enacted during that fiscal year or any of the previous 4 fiscal 
        years (as estimated at the time of enactment) which are 
        attributable to those portions of the 5-year estimating periods 
        for such previous legislation that fall within the 5-year 
        estimating period for such legislation under consideration, 
        exceeds $250,000,000, and (iii) such legislation under 
        consideration does not provide at least a net increase, for the 
        5-year estimating period for such legislation under 
        consideration, in OASDI taxes which, together with net 
        increases in OASDI taxes resulting from such previous 
        legislation which are attributable to those portions of the 5-
        year estimating periods for such previous legislation that fall 
        within the 5-year estimating period for such legislation under 
        consideration, equals the amount by which the net increase 
        derived under clause (ii) exceeds $250,000,000;</DELETED>
        <DELETED>    ``(C)(i) such legislation under consideration 
        would provide for a net decrease in OASDI taxes of at least 
        0.02 percent of the present value of future taxable payroll for 
        the 75-year period utilized in the most recent annual report of 
        the Board of Trustees provided pursuant to section 201(c)(2) of 
        the Social Security Act, and (ii) such legislation under 
        consideration does not provide at least a net decrease, for 
        such 75-year period, in OASDI benefits of the amount by which 
        the net decrease in such taxes exceeds 0.02 percent of the 
        present value of future taxable payroll for such 75-year 
        period, or</DELETED>
        <DELETED>    ``(D)(i) such legislation under consideration 
        would provide for a net decrease in OASDI taxes (for the 5-year 
        estimating period for such legislation under consideration), 
        (ii) such net decrease, together with the net decreases in 
        OASDI taxes resulting from previous legislation enacted during 
        that fiscal year or any of the previous 4 fiscal years (as 
        estimated at the time of enactment) which are attributable to 
        those portions of the 5-year estimating periods for such 
        previous legislation that fall within the 5-year estimating 
        period for such legislation under consideration, exceeds 
        $250,000,000, and (iii) such legislation under consideration 
        does not provide at least a net decrease, for the 5-year 
        estimating period for such legislation under consideration, in 
        OASDI benefits which, together with net decreases in OASDI 
        benefits resulting from such previous legislation which are 
        attributable to those portions of the 5-year estimating periods 
        for such previous legislation that fall within the 5-year 
        estimating period for such legislation under consideration, 
        equals the amount by which the net decrease derived under 
        clause (ii) exceeds $250,000,000.</DELETED>
<DELETED>    ``(2) Application.--In applying subparagraph (C) or (D) of 
paragraph (1), any provision of any bill or joint resolution, as 
reported, or any amendment thereto, or conference report thereon, the 
effect of which is to provide for a net decrease for any period in 
taxes described in paragraph (3)(B)(i) shall be disregarded if such 
bill, joint resolution, amendment, or conference report also includes a 
provision the effect of which is to provide for a net increase of at 
least an equivalent amount for such period in medicare taxes.</DELETED>
<DELETED>    ``(3) Definitions.--For purposes of this 
subsection:</DELETED>
        <DELETED>    ``(A) The term `OASDI benefits' means the benefits 
        under the old-age, survivors, and disability insurance programs 
        under title II of the Social Security Act.</DELETED>
        <DELETED>    ``(B) The term `OASDI taxes' means--</DELETED>
                <DELETED>    ``(i) the taxes imposed under sections 
                1401(a), 3101(a), and 3111(a) of the Internal Revenue 
                Code of 1986, and</DELETED>
                <DELETED>    ``(ii) the taxes imposed under chapter 1 
                of such Code (to the extent attributable to section 86 
                of such Code).</DELETED>
        <DELETED>    ``(C) The term `medicare taxes' means the taxes 
        imposed under sections 1401(b), 3101(b), and 3111(b) of the 
        Internal Revenue Code of 1986.</DELETED>
        <DELETED>    ``(D) The term `previous legislation' shall not 
        include legislation enacted before fiscal year 1991.</DELETED>
        <DELETED>    ``(E) The term `5-year estimating period' means, 
        with respect to any legislation, the fiscal year in which such 
        legislation becomes or would become effective and the next 4 
        fiscal years.</DELETED>
        <DELETED>    ``(F) No provision of any bill or resolution, or 
        any amendment thereto or conference report thereon, involving a 
        change in chapter 1 of the Internal Revenue Code of 1986 shall 
        be treated as affecting the amount of OASDI taxes referred to 
        in subparagraph (B)(ii) unless such provision changes the 
        income tax treatment of OASDI benefits.</DELETED>
<DELETED>    ``(e) Presentation of Budgetary Aggregates.--For purposes 
of chapter 11 of title 31, United States Code, or this Act, tables and 
other displays of budgetary aggregates for the United States Government 
of the Director of the Office of Management and Budget or the Director 
of the Congressional Budget Office shall not include social security 
revenues or outlays.''.</DELETED>
<DELETED>    (b) Amendment to Table of Contents.--The table of contents 
set forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by inserting after the item relating to 
section 316 the following new item:</DELETED>

<DELETED>``Sec. 317. Social security.''.

<DELETED>SEC. 106. CONFORMING AMENDMENTS TO EFFECTUATE JOINT 
              RESOLUTIONS ON THE BUDGET.</DELETED>

<DELETED>    (a) Conforming Amendments to the Congressional Budget and 
Impoundment Control Act of 1974.--(1)(A) Sections 300, 302, 303, 304, 
305, 308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget 
Act of 1974 (2 U.S.C. 621 et seq.) are amended by striking 
``concurrent'' each place it appears and by inserting 
``joint''.</DELETED>
<DELETED>    (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 
310(d)(1) of the Congressional Budget Act of 1974 are amended by 
striking ``most recently agreed to concurrent resolution on the 
budget'' each place it occurs and inserting ``most recently enacted 
joint resolution on the budget or agreed to concurrent resolution on 
the budget (as applicable)''.</DELETED>
<DELETED>    (ii) Section 304 of such Act is amended by striking 
``concurrent resolution on the budget for such fiscal year most 
recently agreed to'' and inserting ``most recently enacted joint 
resolution on the budget or agreed to concurrent resolution on the 
budget (as applicable) for such year''.</DELETED>
<DELETED>    (C) Sections 302, 303, 304, 308, 310, 311, and 401 of such 
Act are amended by striking ``agreed to'' each place it appears and by 
inserting ``enacted''.</DELETED>
<DELETED>    (2)(A) Paragraph (4) of section 3 of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by striking 
``concurrent'' each place it appears and by inserting 
``joint''.</DELETED>
<DELETED>    (B) The table of contents set forth in section 1(b) of 
such Act is amended--</DELETED>
        <DELETED>    (i) in the item relating to section 301 by 
        striking ``Adoption of Concurrent Resolution'' and inserting 
        ``Joint Resolutions'';</DELETED>
        <DELETED>    (ii) by striking the item relating to section 303 
        and inserting the following:</DELETED>

<DELETED>``Sec. 303. Consideration of budget-related legislation before 
                            budget becomes law.''; and
        <DELETED>    (iii) by striking ``concurrent'' and inserting 
        ``joint'' in the items relating to sections 304 and 
        305.</DELETED>
<DELETED>    (b) Conforming Amendments to the Rules of the House of 
Representatives.--(1) Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), 
and 4(f)(2) of rule X, clause 10 of rule XVIII, and clause 10 of rule 
XX of the Rules of the House of Representatives are amended by striking 
``concurrent'' each place it appears and by inserting 
``joint''.</DELETED>
<DELETED>    (2) Clause 10 of rule XVIII of the Rules of the House of 
Representatives is amended--</DELETED>
        <DELETED>    (A) in paragraph (b)(2), by striking ``(5)'' and 
        inserting ``(6)''; and</DELETED>
        <DELETED>    (B) by striking paragraph (c).</DELETED>
<DELETED>    (c) Conforming Amendments to the Balanced Budget and 
Emergency Deficit Control Act of 1985.--Section 258C(b)(1) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
907d(b)(1)) is amended by striking ``concurrent'' and by inserting 
``joint''.</DELETED>
<DELETED>    (d) Conforming Amendments to Section 310 Regarding 
Reconciliation Directives.--(1) The side heading of section 310(a) of 
the Congressional Budget Act of 1974 (as amended by section 106(a)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.</DELETED>
<DELETED>    (2) Section 310(a) of such Act is amended by striking 
``A'' and inserting ``The joint explanatory statement accompanying the 
conference report on a''.</DELETED>
<DELETED>    (3) The first sentence of section 310(b) of such Act is 
amended by striking ``If'' and inserting ``If the joint explanatory 
statement accompanying the conference report on''.</DELETED>
<DELETED>    (4) Section 310(c)(1) of such Act is amended by inserting 
``the joint explanatory statement accompanying the conference report 
on'' after ``pursuant to''.</DELETED>
<DELETED>    (5) Subsection (g) of section 310 of such Act is 
repealed.</DELETED>
<DELETED>    (e) Conforming Amendments to Section 3 Regarding Direct 
Spending.--Section 3 of the Congressional Budget and Impoundment 
Control Act of 1974 (as amended by section 104(a)(3)) is further 
amended by adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(12) The term `direct spending' has the meaning 
        given to such term in section 250(c)(8) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985.''.</DELETED>
<DELETED>    (f) Technical Amendment Regarding Revised 
Suballocations.--Section 314(d) of the Congressional Budget Act of 1974 
is amended by--</DELETED>
        <DELETED>    (1) striking ``Reporting'' in the side heading, by 
        inserting ``the chairmen of'' before ``the Committees'', and by 
        striking ``may report'' and inserting ``shall make and have 
        published in the Congressional Record''; and</DELETED>
        <DELETED>    (2) adding at the end the following new sentence: 
        ``For purposes of considering amendments (other than for 
        amounts for emergencies covered by subsection (b)(1)), 
        suballocations shall be deemed to be so adjusted.''.</DELETED>

       <DELETED>TITLE II--RESERVE FUNDS FOR EMERGENCIES</DELETED>

<DELETED>SEC. 201. PURPOSE.</DELETED>

<DELETED>    The purposes of this title are to--</DELETED>
        <DELETED>    (1) develop budgetary and fiscal procedures for 
        emergencies;</DELETED>
        <DELETED>    (2) subject spending for emergencies to budgetary 
        procedures and controls; and</DELETED>
        <DELETED>    (3) establish criteria for determining compliance 
        with emergency requirements.</DELETED>

<DELETED>SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.</DELETED>

<DELETED>    (a) Discretionary Spending Limits.--Section 251(b)(2)(A) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 is 
repealed.</DELETED>
<DELETED>    (b) Direct Spending.--Sections 252(e) and 252(d)(4)(B) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 are 
repealed.</DELETED>
<DELETED>    (c) Emergency Designation.--Clause 2 of rule XXI of the 
Rules of the House of Representatives is amended by repealing paragraph 
(e) and by redesignating paragraph (f) as paragraph (e).</DELETED>

<DELETED>SEC. 203. OMB EMERGENCY CRITERIA.</DELETED>

<DELETED>    Section 3 of the Congressional Budget and Impoundment 
Control Act of 1974 (as amended by sections 104(a)(3) and 106(e)) is 
further amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(13)(A) The term `emergency' means a situation 
        that--</DELETED>
                <DELETED>    ``(i) requires new budget authority and 
                outlays (or new budget authority and the outlays 
                flowing therefrom) for the prevention or mitigation of, 
                or response to, loss of life or property, or a threat 
                to national security; and</DELETED>
                <DELETED>    ``(ii) is unanticipated.</DELETED>
        <DELETED>    ``(B) As used in subparagraph (A), the term 
        `unanticipated' means that the underlying situation is--
        </DELETED>
                <DELETED>    ``(i) sudden, which means quickly coming 
                into being or not building up over time;</DELETED>
                <DELETED>    ``(ii) urgent, which means a pressing and 
                compelling need requiring immediate action;</DELETED>
                <DELETED>    ``(iii) unforeseen, which means not 
                predicted or anticipated as an emerging need; 
                and</DELETED>
                <DELETED>    ``(iv) temporary, which means not of a 
                permanent duration.''.</DELETED>

<DELETED>SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF 
              EMERGENCY DEFINITION.</DELETED>

<DELETED>    Not later than 5 months after the date of enactment of 
this Act, the chairmen of the Committees on the Budget (in consultation 
with the President) shall, after consulting with the chairmen of the 
Committees on Appropriations and applicable authorizing committees of 
their respective Houses and the Directors of the Congressional Budget 
Office and the Office of Management and Budget, jointly publish in the 
Congressional Record guidelines for application of the definition of 
emergency set forth in section 3(13) of the Congressional Budget and 
Impoundment Control Act of 1974.</DELETED>

<DELETED>SEC. 205. RESERVE FUNDS FOR EMERGENCIES IN PRESIDENT'S 
              BUDGET.</DELETED>

<DELETED>    Section 1105(f) of title 31, United States Code is amended 
by adding at the end the following new sentence: ``Such budget shall 
also comply with the requirements of section 314(f) of the 
Congressional Budget Act of 1974.''.</DELETED>

<DELETED>SEC. 206. ADJUSTMENTS AND RESERVE FUNDS FOR EMERGENCIES IN 
              JOINT BUDGET RESOLUTIONS.</DELETED>

<DELETED>    (a) Adjustments for Emergencies.--(1) Section 314(a) of 
the Congressional Budget Act of 1974 is amended to read as 
follows:</DELETED>
<DELETED>    ``(a) Adjustments.--</DELETED>
        <DELETED>    ``(1) In general.--After the reporting of a bill 
        or joint resolution, the offering of an amendment thereto, or 
        the submission of a conference report thereon, the chairman of 
        the Committee on the Budget of the House of Representatives or 
        the Senate shall make the adjustments set forth in paragraph 
        (2) for the amount of new budget authority (or outlays) in that 
        measure (if that measure meets the requirements set forth in 
        subsection (b)) and the outlays flowing from that budget 
        authority.</DELETED>
        <DELETED>    ``(2) Matters to be adjusted.--The adjustments 
        referred to in paragraph (1) are to be made to--</DELETED>
                <DELETED>    ``(A) the discretionary spending limits in 
                the Senate, if any, set forth in the appropriate joint 
                resolution on the budget;</DELETED>
                <DELETED>    ``(B) the allocations made pursuant to the 
                appropriate joint resolution on the budget pursuant to 
                section 302(a); and</DELETED>
                <DELETED>    ``(C) the budgetary aggregates as set 
                forth in the appropriate joint resolution on the 
                budget;</DELETED>
        <DELETED>but in the case of subsection (b)(1), the adjustments 
        shall only be made to the allocations.''.</DELETED>
<DELETED>    (2) Section 314(b)(1) of the Congressional Budget Act of 
1974 is amended to read as follows:</DELETED>
        <DELETED>    ``(1) an amount not to exceed the amount reserved 
        for emergencies pursuant to the requirements of subsection 
        (f);''.</DELETED>
<DELETED>    (b) Establishment of Reserve Funds.--Section 314 of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new subsections:</DELETED>
<DELETED>    ``(f) Reserve Funds for Emergencies.--</DELETED>
        <DELETED>    ``(1) Reserve fund for discretionary budget 
        authority and outlays.--</DELETED>
                <DELETED>    ``(A) Amounts.--The amount set forth in 
                the reserve fund for emergencies for discretionary 
                budget authority and outlays for a fiscal year pursuant 
                to section 301(a)(6) shall equal--</DELETED>
                        <DELETED>    ``(i) the average of the enacted 
                        levels of discretionary budget authority for 
                        emergencies in the 5 fiscal years preceding the 
                        current year; and</DELETED>
                        <DELETED>    ``(ii) the average of the levels 
                        of outlays in such 5 preceding fiscal years for 
                        emergencies flowing from enacted levels of 
                        discretionary budget authority.</DELETED>
                <DELETED>    ``(B) Average discretionary levels.--For 
                purposes of subparagraph (A), the amount used for a 
                fiscal year to calculate the average of the enacted 
                levels when one or more of such 5 preceding fiscal 
                years is any of fiscal years 1994 through 1998 is as 
                follows: the amount of enacted levels of discretionary 
                budget authority and the amount of outlays flowing 
                therefrom for emergencies, which shall be determined by 
                the Committees on the Budget of the House of 
                Representatives and the Senate after receipt of a 
                report on such matter transmitted to such committees by 
                the Director of the Congressional Budget Office 6 
                months after the date of enactment of this subsection 
                and thereafter in February of each calendar 
                year.</DELETED>
        <DELETED>    ``(2) Reserve fund for direct spending budget 
        authority and outlays.--</DELETED>
                <DELETED>    ``(A) Amounts.--The amount set forth in 
                the reserve fund for emergencies for direct spending 
                for a fiscal year pursuant to section 301(a)(6) shall 
                equal--</DELETED>
                        <DELETED>    ``(i) the average annual enacted 
                        levels of direct spending budget authority for 
                        emergencies in the 5 fiscal years preceding the 
                        current year; and</DELETED>
                        <DELETED>    ``(ii) the average annual level of 
                        outlays in such 5 preceding fiscal years for 
                        emergencies flowing from enacted levels of 
                        direct spending.</DELETED>
                <DELETED>    ``(B) Average direct spending levels.--For 
                purposes of subparagraph (A), the amount used for a 
                fiscal year to calculate the average of the enacted 
                levels when one or more of such 5 preceding fiscal 
                years is any of fiscal years 1994 through 1998 is as 
                follows: the amount of enacted levels of direct 
                spending budget authority and the amount of outlays 
                flowing therefrom for emergencies, which shall be 
                determined by the Committees on the Budget of the House 
                of Representatives and the Senate after receipt of a 
                report on such matter transmitted to such committees by 
                the Director of the Congressional Budget Office 6 
                months after the date of enactment of this subsection 
                and thereafter in February of each calendar 
                year.</DELETED>
        <DELETED>    ``(3) Increased allocations.--In the case of 
        legislation that provides budget authority for any emergency 
        pursuant to subsection (h), the chairman of the Committee on 
        the Budget shall make an adjustment under subsection (a)(1) 
        only to the applicable allocation if the chairman determines 
        and certifies that such outlays or budget authority and the 
        resulting outlays are for an emergency within the meaning of 
        section 3(13).</DELETED>
<DELETED>    ``(g) Emergencies in Excess of Amounts in Reserve Funds.--
Whenever the Committee on Appropriations or any other committee reports 
any bill or joint resolution that provides budget authority for any 
emergency and the report accompanying that bill or joint resolution, 
pursuant to subsection (h), identifies any provision that increases 
outlays or provides budget authority (and the outlays flowing 
therefrom) for such emergency, the enactment of which would cause the 
total amount provided for emergencies in the joint resolution on the 
budget (pursuant to section 301(a)(6)) to be exceeded and that 
emergency is certified as an emergency pursuant to section 
(f)(3):</DELETED>
        <DELETED>    ``(1) Such bill or joint resolution shall be 
        referred to the Committee on the Budget of the House or the 
        Senate, as the case may be, with instructions to report it 
        without amendment, other than that specified in paragraph (2), 
        within 3 legislative days of the day in which it is reported 
        from the originating committee. If the Committee on the Budget 
        of either House fails to report a bill or joint resolution 
        referred to it under this paragraph within such 3-day period, 
        the committee shall be automatically discharged from further 
        consideration of such bill or joint resolution and such bill or 
        joint resolution shall be placed on the appropriate 
        calendar.</DELETED>
        <DELETED>    ``(2) An amendment to such a bill or joint 
        resolution referred to in this subsection shall only consist of 
        an exemption from section 251 or 252 (as applicable) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 of 
        all or any part of the provisions that provide budget authority 
        (and the outlays flowing therefrom) for such emergency if the 
        committee determines that such emergency meets the criteria set 
        forth in subsection (f).</DELETED>
        <DELETED>    ``(3) If such a bill or joint resolution is 
        reported with an amendment specified in paragraph (2) by the 
        Committee on the Budget of the House of Representatives or the 
        Senate, then the budget authority and resulting outlays that 
        are the subject of such amendment shall not be included in any 
        determinations under section 302(f) or 311(a) for any bill, 
        joint resolution, amendment, motion, or conference 
        report.''.</DELETED>
<DELETED>    (c) Conforming Amendments.--(1) The section heading of 
section 314 of the Congressional Budget Act of 1974 is amended to read 
as follows:</DELETED>

   <DELETED>``adjustments; reserve funds for emergencies''.</DELETED>

<DELETED>    (2) The item relating to section 314 in the table of 
contents set forth in section 1(b) of the Congressional Budget and 
Impoundment Control Act of 1974 is amended to read as 
follows:</DELETED>

<DELETED>``Sec. 314. Adjustments; reserve funds for emergencies.''.

<DELETED>SEC. 207. COMMITTEE NOTIFICATION OF EMERGENCY 
              LEGISLATION.</DELETED>

<DELETED>    Section 314 of the Congressional Budget Act of 1974 (as 
amended by section 206) is further amended by adding at the end the 
following new subsection:</DELETED>
<DELETED>    ``(h) Committee Notification of Emergency Legislation.--
Whenever the Committee on Appropriations or any other committee of 
either House (including a committee of conference) reports any bill or 
joint resolution that provides budget authority for any emergency, the 
report accompanying that bill or joint resolution (or the joint 
explanatory statement of managers in the case of a conference report on 
any such bill or joint resolution) shall identify all provisions that 
provide budget authority and the outlays flowing therefrom for such 
emergency.''.</DELETED>

<DELETED>SEC. 208. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS 
              OF AMOUNTS IN RESERVE FUNDS.</DELETED>

<DELETED>    Section 306 of the Congressional Budget Act of 1974 is 
amended by inserting at the end the following new sentence: ``No 
amendment reported by the Committee on the Budget (or from the 
consideration of which such committee has been discharged) pursuant to 
section 314(g) may be amended.''.</DELETED>

<DELETED>SEC. 209. UP-TO-DATE TABULATIONS.</DELETED>

<DELETED>    Section 308(b)(2) of the Congressional Budget Act of 1974 
is amended by striking ``and'' at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) and inserting ``; 
and'', and by adding at the end the following new 
subparagraph:</DELETED>
                <DELETED>    ``(D) shall include an up-to-date 
                tabulation of amounts remaining in the reserve funds 
                for emergencies.''.</DELETED>

<DELETED>SEC. 210. REPORT OF COMMITTEES ON THE BUDGET.</DELETED>

<DELETED>    Section 301(e)(2) of the Congressional Budget Act of 1974 
(as amended by section 103(b)) is further amended by striking ``and'' 
after subparagraph (F), by striking the period at the end of 
subparagraph (G) and inserting ``; and'', and by adding at the end the 
following new subparagraph:</DELETED>
                <DELETED>    ``(H) the average annual enacted levels 
                of--</DELETED>
                        <DELETED>    ``(i) discretionary budget 
                        authority and the resulting outlays for 
                        emergencies; and</DELETED>
                        <DELETED>    ``(ii) direct spending budget 
                        authority and the resulting outlays for 
                        emergencies;</DELETED>
                <DELETED>for the 5 fiscal years preceding the fiscal 
                year of such resolution.''.</DELETED>

<DELETED>SEC. 211. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE 
              FUNDS.</DELETED>

<DELETED>    (a) Point of Order.--Section 305 of the Congressional 
Budget Act of 1974 (as amended by section 103(c)) is further amended by 
adding at the end the following new subsection:</DELETED>
<DELETED>    ``(f) It shall not be in order in the House of 
Representatives or in the Senate to consider an amendment to a joint 
resolution on the budget which changes the amount of budget authority 
and outlays set forth in section 301(a)(6) for emergency reserve 
funds.''.</DELETED>
<DELETED>    (b) Technical Amendment.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``section 
305(e), section 305(f),'' after ``section 305(c)(4),''.</DELETED>
<DELETED>    (2) Section 904(d)(2) of the Congressional Budget Act of 
1974 is amended by inserting ``section 305(e), section 305(f),'' after 
``section 305(c)(4),''.</DELETED>

<DELETED>SEC. 212. EFFECTIVE DATE.</DELETED>

<DELETED>    The amendments made by this title shall take effect only 
after the enactment of legislation changing or extending for any fiscal 
year any of the discretionary spending limits set forth in section 251 
of the Balanced Budget and Emergency Deficit Control Act of 1985 and 
such amendments shall apply to fiscal years determined as 
follows:</DELETED>
        <DELETED>    (1) Fiscal years beginning after the fiscal year 
        in which such effective date occurs if such effective date 
        occurs on or before April 15 of such fiscal year.</DELETED>
        <DELETED>    (2) Fiscal years beginning after the first fiscal 
        year after the fiscal year in which such effective date occurs 
        if such effective date occurs after April 15 of the fiscal year 
        in which such effective date occurs.</DELETED>

    <DELETED>TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS</DELETED>

<DELETED>SEC. 301. PURPOSES.</DELETED>

<DELETED>    The purposes of this title are to--</DELETED>
        <DELETED>    (1) close loopholes in the enforcement of budget 
        resolutions;</DELETED>
        <DELETED>    (2) require committees of the House of 
        Representatives to include budget compliance statements in 
        reports accompanying all legislation;</DELETED>
        <DELETED>    (3) require committees of the House of 
        Representatives to justify the need for waivers of the 
        Congressional Budget Act of 1974; and</DELETED>
        <DELETED>    (4) provide cost estimates of conference 
        reports.</DELETED>

   <DELETED>Subtitle A--Application of Points of Order to Unreported 
                         Legislation</DELETED>

<DELETED>SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER TO 
              UNREPORTED LEGISLATION.</DELETED>

<DELETED>    (a) Section 315 of the Congressional Budget Act of 1974 is 
amended by striking ``reported'' the first place it appears.</DELETED>
<DELETED>    (b) Section 303(b) of the Congressional Budget Act of 1974 
(as amended by section 104(a)(1)) is further amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``(A)'' and by 
        redesignating subparagraph (B) as paragraph (2) and by striking 
        the semicolon at the end of such new paragraph (2) and 
        inserting a period; and</DELETED>
        <DELETED>    (2) by striking paragraph (2) (as redesignated by 
        such section 104(a)(1)).</DELETED>

    <DELETED>Subtitle B--Compliance with Budget Resolution</DELETED>

<DELETED>SEC. 321. BUDGET COMPLIANCE STATEMENTS.</DELETED>

<DELETED>    Clause 3(d) of rule XIII of the Rules of the House of 
Representatives is amended by adding at the end the following new 
subparagraph:</DELETED>
        <DELETED>    ``(4) A budget compliance statement prepared by 
        the chairman of the Committee on the Budget, if timely 
        submitted prior to the filing of the report, which shall be 
        comprised of an assessment by such chairman as to whether the 
        bill or joint resolution complies with the requirements of 
        sections 302, 303, 311, and 401 of the Congressional Budget Act 
        of 1974 and may include the budgetary implications of that bill 
        or joint resolution under section 251 or 252 of the Balanced 
        Budget and Emergency Deficit Control Act of 1985, as 
        applicable.''.</DELETED>

  <DELETED>Subtitle C--Justification for Budget Act Waivers</DELETED>

<DELETED>SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN THE HOUSE OF 
              REPRESENTATIVES.</DELETED>

<DELETED>    Clause 6 of rule XIII of the Rules of the House of 
Representatives is amended by adding at the end the following new 
paragraph:</DELETED>
<DELETED>    ``(h) It shall not be in order to consider any resolution 
from the Committee on Rules for the consideration of any reported bill 
or joint resolution which waives section 302, 303, 311, or 401 of the 
Congressional Budget Act of 1974, unless the report accompanying such 
resolution includes a description of the provision proposed to be 
waived, an identification of the section being waived, the reasons why 
such waiver should be granted, and an estimated cost of the provisions 
to which the waiver applies.''.</DELETED>

    <DELETED>Subtitle D--CBO Scoring of Conference Reports</DELETED>

<DELETED>SEC. 341. CBO SCORING OF CONFERENCE REPORTS.</DELETED>

<DELETED>    (a) The first sentence of section 402 of the Congressional 
Budget Act of 1974 is amended as follows:</DELETED>
        <DELETED>    (1) Insert ``or conference report thereon,'' 
        before ``and submit''.</DELETED>
        <DELETED>    (2) In paragraph (1), strike ``bill or 
        resolution'' and insert ``bill, resolution, or conference 
        report''.</DELETED>
        <DELETED>    (3) At the end of paragraph (2) strike ``and'', at 
        the end of paragraph (3) strike the period and insert ``; 
        and'', and after such paragraph (3) add the following new 
        paragraph:</DELETED>
        <DELETED>    ``(4) A determination of whether such bill, joint 
        resolution, or conference report provides indefinite spending 
        authority.''.</DELETED>
<DELETED>    (b) The second sentence of section 402 of the 
Congressional Budget Act of 1974 is amended by inserting before the 
period the following: ``, or in the case of a conference report, shall 
be included in the joint explanatory statement of managers accompanying 
such conference report if timely submitted before such report is 
filed''.</DELETED>

    <DELETED>TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING</DELETED>

<DELETED>SEC. 401. PURPOSES.</DELETED>

<DELETED>    The purposes of this title are to--</DELETED>
        <DELETED>    (1) require committees to develop a schedule for 
        reauthorizing all programs within their 
        jurisdictions;</DELETED>
        <DELETED>    (2) facilitate amendments to subject new 
        entitlement programs to annual discretionary 
        appropriations;</DELETED>
        <DELETED>    (3) require the Committee on the Budget to justify 
        any allocation to an authorizing committee for legislation that 
        would not be subject to annual discretionary 
        appropriation;</DELETED>
        <DELETED>    (4) provide estimates of the long-term impact of 
        spending and tax legislation;</DELETED>
        <DELETED>    (5) provide a point of order for legislation 
        creating a new entitlement program that does not expire within 
        10 years; and</DELETED>
        <DELETED>    (6) require a vote in the House of Representatives 
        on any measure that increases the statutory limit on the public 
        debt.</DELETED>

   <DELETED>Subtitle A--Prohibitions on Indefinite Spending</DELETED>

<DELETED>SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR NEW 
              PROGRAMS.</DELETED>

<DELETED>    (a) In General.--Section 401 of the Congressional Budget 
Act of 1974 is amended--</DELETED>
        <DELETED>    (1) by striking subsections (a) and (b) and 
        inserting the following new subsection:</DELETED>
<DELETED>    ``(a) Prohibition on Indefinite Authorizations.--It shall 
not be in order in the House of Representatives or in the Senate to 
consider a bill or joint resolution, or an amendment, motion, or 
conference report that provides direct spending for a new program, 
unless such spending is limited to a period of 10 or fewer fiscal 
years.'';</DELETED>
        <DELETED>    (2) by redesignating subsection (c) as subsection 
        (b) and by striking ``Subsections (a) and (b) each place it 
        appears and inserting ``Subsection (a)'' in such redesignated 
        subsection (b); and</DELETED>
        <DELETED>    (3) by amending the section heading to read as 
        follows:</DELETED>

       <DELETED>``fixed-year authorizations required for direct 
                         spending''.</DELETED>

<DELETED>    (b) Conforming Amendment.--The item relating to section 
401 in the table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended to 
read as follows:</DELETED>

<DELETED>``Sec. 401. Fixed-year authorizations required for direct 
                            spending.''.
<DELETED>    (c) Prohibition on Indefinite Authorization of 
Discretionary Appropriations.--Rule XXI of the Rules of the House of 
Representatives is amended by adding at the end the following new 
clause:</DELETED>
<DELETED>    ``6. It shall not be in order to consider any bill, joint 
resolution, amendment, or conference report that authorizes the 
appropriation of new budget authority, as defined in section 3(2)(C) of 
the Congressional Budget and Impoundment Control Act of 1974, unless 
such authorization is specifically provided for a period of 10 or fewer 
fiscal years.''.</DELETED>

<DELETED>SEC. 412. AMENDMENTS TO SUBJECT NEW ENTITLEMENTS TO ANNUAL 
              APPROPRIATIONS.</DELETED>

<DELETED>    (a) House Procedures.--Clause 5 of rule XVIII of the Rules 
of the House of Representatives is amended by adding at the end the 
following new paragraph:</DELETED>
<DELETED>    ``(c)(1) In the Committee of the Whole, an amendment to 
subject a new program providing direct spending to discretionary 
appropriations, if offered by the chairman of the Committee on the 
Budget (or his designee) or the chairman of the Committee of 
Appropriations (or his designee), may be precluded from consideration 
only by the specific terms of a special order of the House. Any such 
amendment, if offered, shall be debatable for twenty minutes equally 
divided and controlled by the proponent of the amendment and a Member 
opposed and shall not be subject to amendment.</DELETED>
<DELETED>    ``(2) As used in subparagraph (1), the term `direct 
spending' has the meaning given such term in section 3(12) of the 
Congressional Budget and Impoundment Control Act of 1974.''.</DELETED>
<DELETED>    (b) Adjustment of Discretionary Spending Limits for 
Discretionary Appropriations Offset by Mandatory Savings.--</DELETED>
        <DELETED>    (1) Purpose.--The purpose of the amendments made 
        by this subsection is to hold the discretionary spending limits 
        and the allocations made to the Committee on Appropriations 
        under section 302(a) of the Congressional Budget Act of 1974 
        harmless for legislation that offsets a new discretionary 
        program with a designated reduction in direct 
        spending.</DELETED>
        <DELETED>    (2) Designating entitlement savings in 
        authorization legislation for new discretionary programs.--
        Section 252 of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 (as amended by section 202) is further 
        amended by adding at the end the following new 
        subsection:</DELETED>
<DELETED>    ``(e) Offsets.--If a provision of direct spending 
legislation is enacted that--</DELETED>
        <DELETED>    ``(1) decreases direct spending for any fiscal 
        year; and</DELETED>
        <DELETED>    ``(2) is designated as an offset pursuant to this 
        subsection and such designation specifically identifies an 
        authorization of discretionary appropriations (contained in 
        such legislation) for a new program,</DELETED>
<DELETED>then the reductions in new budget authority and outlays in all 
fiscal years resulting from that provision shall be designated as an 
offset in the reports required under subsection (d).''.</DELETED>
        <DELETED>    (3) Exempting such designated entitlement savings 
        from paygo scorecard.--Section 252(d)(4) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 (as amended by 
        section 202(b)) is further amended by adding at the end the 
        following new subparagraph:</DELETED>
                <DELETED>    ``(B) offset provisions as designated 
                under subsection (e).''.</DELETED>
        <DELETED>    (4) Adjustment in discretionary spending limits.--
        Section 251(b)(2) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 is amended by adding at the end the 
        following new subparagraph:</DELETED>
                <DELETED>    ``(H) Discretionary authorization 
                offsets.--If an authorization Act includes one or more 
                provisions reducing direct spending and specifically 
                identifies those provisions as offsets pursuant to 
                section 252(e), the adjustments shall be an increase in 
                the budget authority and outlay caps in each fiscal 
                year equal to the amount of the budget authority and 
                outlay reductions, respectively, achieved by the 
                specified offsets in that fiscal year, except that the 
                adjustments for the first fiscal year in which the 
                offsetting provisions take effect shall not exceed the 
                amount of discretionary new budget authority enacted 
                for the new program (authorized in that Act) in an Act 
                making discretionary appropriations, and the outlays 
                flowing therefrom.''.</DELETED>
        <DELETED>    (5) Adjustment in appropriation committee's 
        allocations.--Section 314(b) of the Congressional Budget Act of 
        1974 is amended by striking ``; or'' at the end of paragraph 
        (5), by striking the period and inserting ``; or'' at the end 
        of paragraph (6), and by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(7) the amount appropriated for the program for 
        which an offset was designated pursuant to section 252(e) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985 
        and any outlays flowing therefrom, but not to exceed the amount 
        of the designated decrease in direct spending for that year for 
        that program in a prior law.''.</DELETED>
        <DELETED>    (6) Adjustment in authorizing committee's 
        allocations.--Section 314 of the Congressional Budget Act of 
        1974 (as amended by sections 206 and 207) is further amended by 
        adding at the end the following new subsection:</DELETED>
<DELETED>    ``(i) Adjustment in Authorizing Committee's Allocations by 
Amount of Direct Spending Offset.--After the reporting of a bill or 
joint resolution (by a committee other than the Committee on 
Appropriations), or the offering of an amendment thereto or the 
submission of a conference report thereon, that contains a provision 
that decreases direct spending for any fiscal year and that is 
designated as an offset pursuant to section 252(e) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, the chairman of the 
Committee on the Budget shall reduce the allocations of new budget 
authority and outlays made to such committee under section 302(a)(1) by 
the amount so designated.''.</DELETED>

         <DELETED>Subtitle B--Enhanced Congressional Oversight 
                       Responsibilities</DELETED>

<DELETED>SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIREMENT OF 
              PERMANENT BUDGET AUTHORITY.</DELETED>

<DELETED>    (a) Timetable for Review.--Clause 2(d)(1) of rule X of the 
Rules of the House of Representatives is amended by striking 
subdivisions (B) and (C) and inserting the following new 
subdivision:</DELETED>
        <DELETED>    ``(B) provide in its plans a specific timetable 
        for its review of those laws, programs, or agencies within its 
        jurisdiction, including those that operate under permanent 
        budget authority or permanent statutory authority. Such 
        timetable shall demonstrate that each law, program, or agency 
        within the committee's jurisdiction will be reauthorized at 
        least once every ten years.''.</DELETED>
<DELETED>    (b) Review of Permanent Budget Authority by the Committee 
on Appropriations.--Clause 4(a) of rule X of the Rules of the House of 
Representatives is amended--</DELETED>
        <DELETED>    (1) by striking subparagraph (2); and</DELETED>
        <DELETED>    (2) by redesignating subparagraph (3) as 
        subparagraph (2) and by striking ``from time to time'' and 
        inserting ``at least once each Congress'' in subparagraph (2) 
        (as redesignated).</DELETED>
<DELETED>    (c) Conforming Amendment.--Clause 4(e)(2) of rule X of the 
Rules of the House of Representatives is amended by striking ``from 
time to time'' and inserting ``at least once every ten 
years''.</DELETED>

<DELETED>SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.</DELETED>

<DELETED>    (a) Section 302 Allocations.--Section 302(a) of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new paragraph:</DELETED>
        <DELETED>    ``(6) Justification of certain spending 
        allocations.--The joint explanatory statement accompanying a 
        conference report on a joint resolution on the budget that 
        includes any allocation to a committee (other than the 
        Committee on Appropriations) of levels in excess of current law 
        levels shall set forth a justification for not subjecting any 
        program, project, or activity (for which the allocation is 
        made) to annual discretionary appropriation.''.</DELETED>
<DELETED>    (b) Presidents' Budget Submissions.--Section 1105(a) of 
title 31, United States Code, is amended by adding at the end the 
following new paragraph:</DELETED>
        <DELETED>    ``(33) a justification for not subjecting each new 
        program to discretionary appropriations.''.</DELETED>
<DELETED>    (c) Committee Justification for Direct Spending.--The 
first sentence of clause 4(e)(1) of rule X of the Rules of the House of 
Representatives is amended by inserting before the period the 
following: ``, and will provide specific information in any report 
accompanying such bills and joint resolutions to justify why the 
programs and activities involved would not be subject to annual 
appropriation''.</DELETED>

<DELETED>SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE 
              COMMITTEES.</DELETED>

<DELETED>    Clause 1(d) of rule XI of the Rules of the House of 
Representatives is amended by redesignating paragraph (4) as paragraph 
(5) and by inserting after paragraph (3) the following new 
paragraph:</DELETED>
<DELETED>    ``(4) Such report shall include a summary of and 
justifications for all bills and joint resolutions reported by such 
committee that--</DELETED>
        <DELETED>    ``(A) were considered before the adoption of the 
        appropriate budget resolution and did not fall within an 
        exception set forth in section 303(b) of the Congressional 
        Budget Act of 1974;</DELETED>
        <DELETED>    ``(B) exceeded its allocation under section 302(a) 
        of such Act or breached an aggregate level in violation of 
        section 311 of such Act; or</DELETED>
        <DELETED>    ``(C) contained provisions in violation of section 
        401(a) of such Act pertaining to indefinite direct spending 
        authority.</DELETED>
<DELETED>Such report shall also specify the total amount by which 
legislation reported by that committee exceeded its allocation under 
section 302(a) or breached the revenue floor under section 311(a) of 
such Act for each fiscal year during that Congress.''.</DELETED>

<DELETED>SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET PROCESS 
              REFORMS.</DELETED>

<DELETED>    Section 703 of the Congressional Budget Act of 1974 is 
amended as follows:</DELETED>
        <DELETED>    (1) In subsection (a), strike ``and'' at the end 
        of paragraph (3), strike the period at the end of paragraph (4) 
        and insert ``; and'', and at the end add the following new 
        paragraph:</DELETED>
        <DELETED>    ``(5) evaluating whether existing programs should 
        be subject to discretionary appropriations and establishing 
        guidelines for subjecting new or expanded programs to annual 
        appropriation and recommend any necessary changes in statutory 
        enforcement mechanisms and scoring conventions to effectuate 
        such changes.''.</DELETED>
        <DELETED>    (2) In subsection (b), strike ``from time to 
        time'' and insert ``during the One Hundred Sixth 
        Congress''.</DELETED>

<DELETED>SEC. 425. GAO REPORTS.</DELETED>

<DELETED>      The last sentence of section 404 of the Congressional 
Budget Act of 1974 is amended to read as follows: ``Such report shall 
be revised at least once every five years.''.</DELETED>

       <DELETED>Subtitle C--Strengthened Accountability</DELETED>

<DELETED>SEC. 431. TEN-YEAR CBO ESTIMATES.</DELETED>

<DELETED>    (a) CBO Reports on Legislation.--Section 308(a)(1)(B) of 
the Congressional Budget Act of 1974 is amended by striking ``four'' 
and inserting ``nine''.</DELETED>
<DELETED>    (b) Analysis by CBO.--Section 402(1) of the Congressional 
Budget Act of 1974 is amended by striking ``4'' and inserting 
``nine''.</DELETED>
<DELETED>    (c) Cost Estimates.--Clause 3(d)(2)(A) of rule XIII of the 
Rules of the House of Representatives is amended by striking ``five'' 
each place it appears and inserting ``10''.</DELETED>

<DELETED>SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE HOUSE OF 
              REPRESENTATIVES.</DELETED>

<DELETED>    Rule XXIII of the Rules of the House of Representatives 
(relating to the establishment of the statutory limit on the public 
debt) is repealed.</DELETED>

  <DELETED>TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-
                       TERM OBLIGATIONS</DELETED>

<DELETED>SEC. 501. PURPOSES.</DELETED>

<DELETED>    The purposes of this title are to--</DELETED>
        <DELETED>    (1) budget for the long-term costs of Federal 
        insurance programs;</DELETED>
        <DELETED>    (2) improve congressional control of those costs; 
        and</DELETED>
        <DELETED>    (3) periodically report on long-term budgetary 
        trends.</DELETED>

     <DELETED>Subtitle A--Budgetary Treatment of Federal Insurance 
                           Programs</DELETED>

<DELETED>SEC. 511. FEDERAL INSURANCE PROGRAMS.</DELETED>

<DELETED>    (a) In General.--The Congressional Budget Act of 1974 is 
amended by adding after title V the following new title:</DELETED>

     <DELETED>``title vi--budgetary treatment of federal insurance 
                           programs</DELETED>

<DELETED>``SEC. 601. SHORT TITLE.</DELETED>

<DELETED>    ``This title may be cited as the `Federal Insurance 
Budgeting Act of 1999'.</DELETED>

<DELETED>``SEC. 602. BUDGETARY TREATMENT.</DELETED>

<DELETED>    ``(a) President's Budget.--Beginning with fiscal year 
2006, the budget of the Government pursuant to section 1105(a) of title 
31, United States Code, shall be based on the risk-assumed cost of 
Federal insurance programs.</DELETED>
<DELETED>    ``(b) Budget Accounting.--For any Federal insurance 
program--</DELETED>
        <DELETED>    ``(1) the program account shall--</DELETED>
                <DELETED>    ``(A) pay the risk-assumed cost borne by 
                the taxpayer to the financing account, and</DELETED>
                <DELETED>    ``(B) pay actual insurance program 
                administrative costs;</DELETED>
        <DELETED>    ``(2) the financing account shall--</DELETED>
                <DELETED>    ``(A) receive premiums and other 
                income,</DELETED>
                <DELETED>    ``(B) pay all claims for insurance and 
                receive all recoveries,</DELETED>
                <DELETED>    ``(C) transfer to the program account on 
                not less than an annual basis amounts necessary to pay 
                insurance program administrative costs;</DELETED>
        <DELETED>    ``(3) a negative risk-assumed cost shall be 
        transferred from the financing account to the program account, 
        and shall be transferred from the program account as a 
        nonexpenditure transfer to the general fund; and</DELETED>
        <DELETED>    ``(4) all payments by or receipts of the financing 
        accounts shall be treated in the budget as a means of 
        financing.</DELETED>
<DELETED>    ``(c) Appropriations Required.--(1) Notwithstanding any 
other provision of law, insurance commitments may be made for fiscal 
year 2006 and thereafter only to the extent that new budget authority 
to cover their risk-assumed cost is provided in advance in an 
appropriation Act.</DELETED>
<DELETED>    ``(2) An outstanding insurance commitment shall not be 
modified in a manner that increases its risk-assumed cost unless budget 
authority for the additional cost has been provided in advance in an 
appropriation Act.</DELETED>
<DELETED>    ``(3) Paragraphs (1) and (2) shall not apply to Federal 
insurance programs that constitute entitlements.</DELETED>
<DELETED>    ``(d) Reestimates.--The risk-assumed cost for a fiscal 
year shall be reestimated in each subsequent year. Such reestimate can 
equal zero. In the case of a positive reestimate, the amount of the 
reestimate shall be paid from the program account to the financing 
account. In the case of a negative reestimate, the amount of the 
reestimate shall be paid from the financing account to the program 
account, and shall be transferred from the program account to the 
general fund as a nonexpenditure transfer. Reestimates shall be 
displayed as a distinct and separately identified subaccount in the 
program account.</DELETED>
<DELETED>    ``(e) Administrative Expenses.--All funding for an 
agency's administration of a Federal insurance program shall be 
displayed as a distinct and separately identified subaccount in the 
program account.</DELETED>

<DELETED>``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING 
              FOR FEDERAL INSURANCE PROGRAMS.</DELETED>

<DELETED>    ``(a) Agency Requirements.--Agencies with responsibility 
for Federal insurance programs shall develop models to estimate their 
risk-assumed cost by year through the budget horizon and shall submit 
those models, all relevant data, a justification for critical 
assumptions, and the annual projected risk-assumed costs to OMB with 
their budget requests each year starting with the request for fiscal 
year 2002. Agencies will likewise provide OMB with annual estimates of 
modifications, if any, and reestimates of program costs.</DELETED>
<DELETED>    ``(b) Disclosure.--When the President submits a budget of 
the Government pursuant to section 1105(a) of title 31, United States 
Code, for fiscal year 2002, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it or other executive branch entities would use to estimate the 
risk-assumed cost of Federal insurance programs and giving such persons 
an opportunity to submit comments. At the same time, the chairman of 
the Committee on the Budget shall publish a notice for CBO in the 
Federal Register advising interested persons of the availability of 
information describing the models, data (including sources), and 
critical assumptions (including explicit or implicit discount rate 
assumptions) that it would use to estimate the risk-assumed cost of 
Federal insurance programs and giving such interested persons an 
opportunity to submit comments.</DELETED>
<DELETED>    ``(c) Revision.--(1) After consideration of comments 
pursuant to subsection (b), and in consultation with the Committees on 
the Budget of the House of Representatives and the Senate, OMB and CBO 
shall revise the models, data, and major assumptions they would use to 
estimate the risk-assumed cost of Federal insurance programs.</DELETED>
<DELETED>    ``(2) When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2003, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it or other executive branch entities used to estimate the risk-
assumed cost of Federal insurance programs.</DELETED>
<DELETED>    ``(d) Display.--</DELETED>
        <DELETED>    ``(1) In general.--For fiscal years 2003, 2004, 
        and 2005 the budget submissions of the President pursuant to 
        section 1105(a) of title 31, United States Code, and CBO's 
        reports on the economic and budget outlook pursuant to section 
        202(e)(1) and the President's budgets, shall for display 
        purposes only, estimate the risk-assumed cost of existing or 
        proposed Federal insurance programs.</DELETED>
        <DELETED>    ``(2) OMB.--The display in the budget submissions 
        of the President for fiscal years 2003, 2004, and 2005 shall 
        include--</DELETED>
                <DELETED>    ``(A) a presentation for each Federal 
                insurance program in budget-account level detail of 
                estimates of risk-assumed cost;</DELETED>
                <DELETED>    ``(B) a summary table of the risk-assumed 
                costs of Federal insurance programs; and</DELETED>
                <DELETED>    ``(C) an alternate summary table of budget 
                functions and aggregates using risk-assumed rather than 
                cash-based cost estimates for Federal insurance 
                programs.</DELETED>
        <DELETED>    ``(3) CBO.--In the second session of the 108th 
        Congress and the 109th Congress, CBO shall include in its 
        estimates under section 308, for display purposes only, the 
        risk-assumed cost of existing Federal programs, or legislation 
        that CBO, in consultation with the Committees on the Budget of 
        the House of Representatives and the Senate, determines would 
        create a new Federal insurance program.</DELETED>
<DELETED>    ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 
months after the budget submission of the President pursuant to section 
1105(a) of title 31, United States Code, for fiscal year 2005, OMB, 
CBO, and GAO shall each submit to the Committees on the Budget of the 
House of Representatives and the Senate a report that evaluates the 
advisability and appropriate implementation of this title.</DELETED>
<DELETED>    ``(2) Each report made pursuant to paragraph (1) shall 
address the following:</DELETED>
        <DELETED>    ``(A) The adequacy of risk-assumed estimation 
        models used and alternative modeling methods.</DELETED>
        <DELETED>    ``(B) The availability and reliability of data or 
        information necessary to carry out this title.</DELETED>
        <DELETED>    ``(C) The appropriateness of the explicit or 
        implicit discount rate used in the various risk-assumed 
        estimation models.</DELETED>
        <DELETED>    ``(D) The advisability of specifying a statutory 
        discount rate (such as the Treasury rate) for use in risk-
        assumed estimation models.</DELETED>
        <DELETED>    ``(E) The ability of OMB, CBO, or GAO, as 
        applicable, to secure any data or information directly from any 
        Federal agency necessary to enable it to carry out this 
        title.</DELETED>
        <DELETED>    ``(F) The relationship between risk-assumed 
        accrual budgeting for Federal insurance programs and the 
        specific requirements of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.</DELETED>
        <DELETED>    ``(G) Whether Federal budgeting is improved by the 
        inclusion of risk-assumed cost estimates for Federal insurance 
        programs.</DELETED>
        <DELETED>    ``(H) The advisability of including each of the 
        programs currently estimated on a risk-assumed cost basis in 
        the Federal budget on that basis.</DELETED>

<DELETED>``SEC. 604. DEFINITIONS.</DELETED>

<DELETED>    ``For purposes of this title:</DELETED>
        <DELETED>    ``(1) The term `Federal insurance program' means a 
        program that makes insurance commitments and includes the list 
        of such programs included in the joint explanatory statement of 
        managers accompanying the conference report on the 
        Comprehensive Budget Process Reform Act of 1999.</DELETED>
        <DELETED>    ``(2) The term `insurance commitment' means an 
        agreement in advance by a Federal agency to indemnify a 
        nonfederal entity against specified losses. This term does not 
        include loan guarantees as defined in title V or benefit 
        programs such as social security, medicare, and similar 
        existing social insurance programs.</DELETED>
        <DELETED>    ``(3)(A) The term `risk-assumed cost' means the 
        net present value of the estimated cash flows to and from the 
        Government resulting from an insurance commitment or 
        modification thereof.</DELETED>
        <DELETED>    ``(B) The cash flows associated with an insurance 
        commitment include--</DELETED>
                <DELETED>    ``(i) expected claims payments inherent in 
                the Government's commitment;</DELETED>
                <DELETED>    ``(ii) net premiums (expected premium 
                collections received from or on behalf of the insured 
                less expected administrative expenses);</DELETED>
                <DELETED>    ``(iii) expected recoveries; and</DELETED>
                <DELETED>    ``(iv) expected changes in claims, 
                premiums, or recoveries resulting from the exercise by 
                the insured of any option included in the insurance 
                commitment.</DELETED>
        <DELETED>    ``(C) The cost of a modification is the difference 
        between the current estimate of the net present value of the 
        remaining cash flows under the terms of the insurance 
        commitment, and the current estimate of the net present value 
        of the remaining cash flows under the terms of the insurance 
        commitment as modified.</DELETED>
        <DELETED>    ``(D) The cost of a reestimate is the difference 
        between the net present value of the amount currently required 
        by the financing account to pay estimated claims and other 
        expenditures and the amount currently available (whether in 
        cash or other marketable asset) in the financing account. The 
        cost of a reestimate shall be accounted for in the current year 
        in the budget of the Government pursuant to section 1105(a) of 
        title 31, United States Code.</DELETED>
        <DELETED>    ``(E) For purposes of this definition, expected 
        administrative expenses shall be construed as the amount 
        estimated to be necessary for the proper administration of the 
        insurance program. This amount may differ from amounts actually 
        appropriated or otherwise made available for the administration 
        of the program.</DELETED>
        <DELETED>    ``(4) The term `program account' means the budget 
        account for the risk-assumed cost, and for all costs of 
        administering the insurance program, and is the account from 
        which the risk-assumed cost is disbursed to the financing 
        account.</DELETED>
        <DELETED>    ``(5) The term `financing account' means the 
        nonbudget account that is associated with each program account 
        which receives payments from or makes payments to the program 
        account, receives premiums and other payments from the public, 
        pays insurance claims, and holds balances.</DELETED>
        <DELETED>    ``(6) The term `modification' means any Government 
        action that alters the risk-assumed cost of an existing 
        insurance commitment from the current estimate of cash flows. 
        This includes any action resulting from new legislation, or 
        from the exercise of administrative discretion under existing 
        law, that directly or indirectly alters the estimated cost of 
        existing insurance commitments.</DELETED>
        <DELETED>    ``(7) The term `model' means any actuarial, 
        financial, econometric, probabilistic, or other methodology 
        used to estimate the expected frequency and magnitude of loss-
        producing events, expected premiums or collections from or on 
        behalf of the insured, expected recoveries, and administrative 
        expenses.</DELETED>
        <DELETED>    ``(8) The term `current' has the same meaning as 
        in section 250(c)(9) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.</DELETED>
        <DELETED>    ``(9) The term `OMB' means the Director of the 
        Office of Management and Budget.</DELETED>
        <DELETED>    ``(10) The term `CBO' means the Director of the 
        Congressional Budget Office.</DELETED>
        <DELETED>    ``(11) The term `GAO' means the Comptroller 
        General of the United States.</DELETED>

<DELETED>``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL 
              COST ACCOUNT.</DELETED>

<DELETED>    ``(a) Authorization of Appropriations.--There is 
authorized to be appropriated $600,000 for each of fiscal years 2000 
through 2005 to the Director of the Office of Management and Budget and 
each agency responsible for administering a Federal program to carry 
out this title.</DELETED>
<DELETED>    ``(b) Treasury Transactions With the Financing Accounts.--
The Secretary of the Treasury shall borrow from, receive from, lend to, 
or pay the insurance 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 above. The authorities described above shall not 
be construed to supersede or override the authority of the head of a 
Federal agency to administer and operate an insurance program. All the 
transactions provided in this subsection shall be subject to the 
provisions of subchapter II of chapter 15 of title 31, United States 
Code. 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.</DELETED>
<DELETED>    ``(c) Appropriation of Amount Necessary To Cover Risk-
Assumed Cost of Insurance Commitments at Transition Date.--(1) A 
financing account is established on September 30, 2005, for each 
Federal insurance program.</DELETED>
<DELETED>    ``(2) There is appropriated to each financing account the 
amount of the unfunded risk-assumed cost of Federal insurance 
commitments outstanding for that program as of the close of September 
30, 2005.</DELETED>
<DELETED>    ``(3) These financing accounts shall be used in 
implementing the budget accounting required by this title.</DELETED>

<DELETED>``SEC. 606. EFFECTIVE DATE.</DELETED>

<DELETED>    ``This title shall take effect immediately and shall 
expire on September 30, 2007.''.</DELETED>
<DELETED>    (b)  Conforming Amendment.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by inserting after the item relating to 
section 507 the following new items:</DELETED>

 <DELETED>``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

<DELETED>``Sec. 601. Short title.
<DELETED>``Sec. 602. Budgetary treatment.
<DELETED>``Sec. 603. Timetable for implementation of accrual budgeting 
                            for Federal insurance programs.
<DELETED>``Sec. 604. Definitions.
<DELETED>``Sec. 605. Authorizations to enter into contracts; actuarial 
                            cost account.
<DELETED>``Sec. 606. Effective date.''.

  <DELETED>Subtitle B--Reports on Long-Term Budgetary Trends</DELETED>

<DELETED>SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.</DELETED>

<DELETED>    (a) The President's Budget.--Section 1105(a) of title 31, 
United States Code (as amended by section 404), is further amended by 
adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(34) an analysis based upon current law and an 
        analysis based upon the policy assumptions underlying the 
        budget submission for every fifth year of the period of 75 
        fiscal years beginning with such fiscal year, of the estimated 
        levels of total new budget authority and total budget outlays, 
        estimated revenues, estimated surpluses and deficits, and, for 
        each major Federal entitlement program, estimated levels of 
        total new budget authority and total budget outlays; and a 
        specification of its underlying assumptions and a sensitivity 
        analysis of factors that have a significant effect on the 
        projections made in each analysis; and a comparison of the 
        effects of each of the two analyses on the economy, including 
        such factors as inflation, foreign investment, interest rates, 
        and economic growth.''.</DELETED>
<DELETED>    (b) CBO Reports.--Section 202(e)(1) of the Congressional 
Budget Act of 1974 is amended by adding at the end the following new 
sentences: ``Such report shall also include an analysis based upon 
current law for every fifth year of the period of 75 fiscal years 
beginning with such fiscal year, of the estimated levels of total new 
budget authority and total budget outlays, estimated revenues, 
estimated surpluses and deficits, and, for each major Federal 
entitlement program, estimated levels of total new budget authority and 
total budget outlays. The report described in the preceding sentence 
shall also specify its underlying assumptions and set forth a 
sensitivity analysis of factors that have a significant effect on the 
projections made in the report.''.1</DELETED>

    <DELETED>TITLE VI--BASELINES, BYRD RULE, AND LOCK-BOX</DELETED>

<DELETED>SEC. 601. PURPOSE.</DELETED>

<DELETED>The purposes of this title are to--</DELETED>
        <DELETED>    (1) require budgetary comparisons to prior year 
        levels;</DELETED>
        <DELETED>    (2) restrict the application of the Byrd rule to 
        measures other than conference reports; and</DELETED>
        <DELETED>    (3) establish a procedure to allow savings from 
        spending cuts in appropriation measures to be locked-in to 
        increase the surplus or reduce the deficit.</DELETED>

              <DELETED>Subtitle A--The Baseline</DELETED>

<DELETED>SEC. 611. THE PRESIDENT'S BUDGET.</DELETED>

<DELETED>    (a) Paragraph (5) of section 1105(a) of title 31, United 
States Code, is amended to read as follows:</DELETED>
        <DELETED>    ``(5) except as provided in subsection (b) of this 
        section, estimated expenditures and appropriations for the 
        current year and estimated expenditures and proposed 
        appropriations the President decides are necessary to support 
        the Government in the fiscal year for which the budget is 
        submitted and the 4 fiscal years following that year, and, 
        except for detailed budget estimates, the percentage change 
        from the current year to the fiscal year for which the budget 
        is submitted for estimated expenditures and for 
        appropriations.''.</DELETED>
<DELETED>    (b) Section 1105(a)(6) of title 31, United States Code, is 
amended to read as follows:</DELETED>
        <DELETED>    ``(6) estimated receipts of the Government in the 
        current year and the fiscal year for which the budget is 
        submitted and the 4 fiscal years after that year under--
        </DELETED>
                <DELETED>    ``(A) laws in effect when the budget is 
                submitted; and</DELETED>
                <DELETED>    ``(B) proposals in the budget to increase 
                revenues,</DELETED>
        <DELETED>and the percentage change (in the case of each 
        category referred to in subparagraphs (A) and (B)) between the 
        current year and the fiscal year for which the budget is 
        submitted and between the current year and each of the 4 fiscal 
        years after the fiscal year for which the budget is 
        submitted.''.</DELETED>
<DELETED>    (c) Section 1105(a)(12) of title 31, United States Code, 
is amended to read as follows:</DELETED>
        <DELETED>    ``(12) for each proposal in the budget for 
        legislation that would establish or expand a Government 
        activity or function, a table showing--</DELETED>
                <DELETED>    ``(A) the amount proposed in the budget 
                for appropriation and for expenditure because of the 
                proposal in the fiscal year for which the budget is 
                submitted;</DELETED>
                <DELETED>    ``(B) the estimated appropriation required 
                because of the proposal for each of the 4 fiscal years 
                after that year that the proposal will be in effect; 
                and</DELETED>
                <DELETED>    ``(C) the estimated amount for the same 
                activity or function, if any, in the current fiscal 
                year,</DELETED>
        <DELETED>and, except for detailed budget estimates, the 
        percentage change (in the case of each category referred to in 
        subparagraphs (A), (B), and (C)) between the current year and 
        the fiscal year for which the budget is submitted.''.</DELETED>
<DELETED>    (d) Section 1105(a)(18) of title 31, United States Code, 
is amended by inserting ``new budget authority and'' before ``budget 
outlays''.</DELETED>
<DELETED>    (e) Section 1105(a) of title 31, United States Code, (as 
amended by sections 412(b) and 521(a)) is further amended by adding at 
the end the following new paragraphs:</DELETED>
        <DELETED>    ``(35) a comparison of levels of estimated 
        expenditures and proposed appropriations for each function and 
        subfunction in the current fiscal year and the fiscal year for 
        which the budget is submitted, along with the proposed increase 
        or decrease of spending in percentage terms for each function 
        and subfunction.</DELETED>
        <DELETED>    ``(36) a table on sources of growth in total 
        direct spending under current law and as proposed in this 
        budget submission for the budget year and the ensuing 4 fiscal 
        years, which shall include changes in outlays attributable to 
        the following: cost-of-living adjustments; changes in the 
        number of program recipients; increases in medical care prices, 
        utilization and intensity of medical care; and residual 
        factors.''.</DELETED>
<DELETED>    (f) Section 1109(a) of title 31, United States Code, is 
amended by inserting after the first sentence the following new 
sentence: ``For discretionary spending, these estimates shall assume 
the levels set forth in the discretionary spending limits under section 
251(c) of the Balanced Budget and Emergency Deficit Control Act of 
1985, as adjusted, for the appropriate fiscal years (and if no such 
limits are in effect, these estimates shall assume the adjusted levels 
for the most recent fiscal year for which such levels were in 
effect).''.</DELETED>

<DELETED>SEC. 612. THE CONGRESSIONAL BUDGET.</DELETED>

<DELETED>    Section 301(e) of the Congressional Budget Act of 1974 (as 
amended by section 103) is further amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by inserting at the end the 
        following: ``The basis of deliberations in developing such 
        joint resolution shall be the estimated budgetary levels for 
        the preceding fiscal year. Any budgetary levels pending before 
        the committee and the text of the joint resolution shall be 
        accompanied by a document comparing such levels or such text to 
        the estimated levels of the prior fiscal year. Any amendment 
        offered in the committee that changes a budgetary level and is 
        based upon a specific policy assumption for a program, project, 
        or activity shall be accompanied by a document indicating the 
        estimated amount for such program, project, or activity in the 
        current year.''; and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``and'' at the 
        end of subparagraph (H), by striking the period and inserting 
        ``; and'' at the end of subparagraph (I), and by adding at the 
        end the following new subparagraph:</DELETED>
                <DELETED>    ``(J) a comparison of levels for the 
                current fiscal year with proposed spending and revenue 
                levels for the subsequent fiscal years along with the 
                proposed increase or decrease of spending in percentage 
                terms for each function.''.</DELETED>

<DELETED>SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO 
              COMMITTEES.</DELETED>

<DELETED>    (a) The first sentence of section 202(e)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``compared to 
comparable levels for the current year'' before the comma at the end of 
subparagraph (A) and before the comma at the end of subparagraph 
(B).</DELETED>
<DELETED>    (b) Section 202(e)(1) of the Congressional Budget Act of 
1974 is amended by inserting after the first sentence the following new 
sentence: ``Such report shall also include a table on sources of 
spending growth in total direct spending for the budget year and the 
ensuing 4 fiscal years, which shall include changes in outlays 
attributable to the following: cost-of-living adjustments; changes in 
the number of program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual 
factors.''.</DELETED>
<DELETED>    (c) Section 308(a)(1)(B) of the Congressional Budget Act 
of 1974 is amended by inserting ``and shall include a comparison of 
those levels to comparable levels for the current fiscal year'' before 
``if timely submitted''.</DELETED>

<DELETED>SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY 
              SPENDING.</DELETED>

<DELETED>    For purposes of chapter 11 of title 31 of the United 
States Code, or the Congressional Budget Act of 1974, unless otherwise 
expressly provided, in making budgetary projections for years for which 
there are no discretionary spending limits, the Director of the Office 
of Management and Budget and the Director of the Congressional Budget 
Office shall assume discretionary spending levels at the levels for the 
last fiscal year for which such levels were in effect.</DELETED>

              <DELETED>Subtitle B--The Byrd Rule</DELETED>

<DELETED>SEC. 621. LIMITATION ON BYRD RULE.</DELETED>

<DELETED>    (a) Protection of Conference Reports.--Section 313 of the 
Congressional Budget Act of 1974 is amended--</DELETED>
        <DELETED>    (1) in subsection (c), by striking ``and again 
        upon the submission of a conference report on such a 
        reconciliation bill or resolution,'';</DELETED>
        <DELETED>    (2) by striking subsection (d);</DELETED>
        <DELETED>    (3) by redesignating subsection (e) as subsection 
        (d); and</DELETED>
        <DELETED>    (4) in subsection (e), as redesignated--</DELETED>
                <DELETED>    (A) by striking ``, motion, or conference 
                report'' the first place it appears and inserting ``, 
                or motion''; and</DELETED>
                <DELETED>    (B) by striking ``, motion, or conference 
                report'' the second and third places it appears and 
                inserting ``or motion''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The first sentence of section 
312(e) of the Congressional Budget Act of 1974 is amended by inserting 
``, except for section 313,'' after ``Act''.</DELETED>

    <DELETED>Subtitle C--Spending Accountability Lock-box</DELETED>

<DELETED>SEC. 631. SHORT TITLE.</DELETED>

<DELETED>    This subtitle may be cited as the ``Spending 
Accountability Lock-box Act of 1999''.</DELETED>

<DELETED>SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.</DELETED>

<DELETED>    (a) Establishment of Ledger.--Title III of the 
Congressional Budget Act of 1974 (as amended by sections 104(b) and 
105(a)) is further amended by adding after section 317 the following 
new section:</DELETED>

      <DELETED>``spending accountability lock-box ledger</DELETED>

<DELETED>    ``Sec. 318. (a) Establishment of Ledger.--The chairman of 
the Committee on the Budget of the House of Representatives and the 
chairman of the Committee on the Budget of the Senate shall each 
maintain a ledger to be known as the `Spending Accountability Lock-box 
Ledger'. The Ledger shall be divided into entries corresponding to the 
subcommittees of the Committees on Appropriations. Each entry shall 
consist of three components: the `House Lock-box Balance'; the `Senate 
Lock-box Balance'; and the `Joint House-Senate Lock-box 
Balance'.</DELETED>
<DELETED>    ``(b) Components of Ledger.--Each component in an entry 
shall consist only of amounts credited to it under subsection (c). No 
entry of a negative amount shall be made.</DELETED>
<DELETED>    ``(c) Credit of Amounts to Ledger.--(1) In the House of 
Representatives or the Senate, whenever a Member offers an amendment to 
an appropriation bill to reduce new budget authority in any account, 
that Member may state the portion of such reduction that shall be--
</DELETED>
        <DELETED>    ``(A) credited to the House or Senate Lock-box 
        Balance, as applicable; or</DELETED>
        <DELETED>    ``(B) used to offset an increase in new budget 
        authority in any other account;</DELETED>
        <DELETED>    ``(C) allowed to remain within the applicable 
        section 302(b) suballocation.</DELETED>
<DELETED>If no such statement is made, the amount of reduction in new 
budget authority resulting from the amendment shall be credited to the 
House or Senate Lock-box Balance, as applicable, if the amendment is 
agreed to.</DELETED>
<DELETED>    ``(2)(A) Except as provided by subparagraph (B), the 
chairmen of the Committees on the Budget shall, upon the engrossment of 
any appropriation bill by the House of Representatives and upon the 
engrossment of that bill by the Senate, credit to the applicable entry 
balance of that House amounts of new budget authority and outlays equal 
to the net amounts of reductions in new budget authority and in outlays 
resulting from amendments agreed to by that House to that 
bill.</DELETED>
<DELETED>    ``(B) When computing the net amounts of reductions in new 
budget authority and in outlays resulting from amendments agreed to by 
the House of Representatives or the Senate to an appropriation bill, 
the chairmen of the Committees on the Budget shall only count those 
portions of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to the House 
or Senate Lock-box Balance, as applicable, or that fall within the last 
sentence of paragraph (1).</DELETED>
<DELETED>    ``(3) The chairmen of the Committees on the Budget shall, 
upon the engrossment of Senate amendments to any appropriation bill, 
credit to the applicable Joint House-Senate Lock-box Balance the 
amounts of new budget authority and outlays equal to--</DELETED>
        <DELETED>    ``(A) an amount equal to one-half of the sum of 
        (i) the amount of new budget authority in the House Lock-box 
        Balance plus (ii) the amount of new budget authority in the 
        Senate Lock-box Balance for that bill; and</DELETED>
        <DELETED>    ``(B) an amount equal to one-half of the sum of 
        (i) the amount of outlays in the House Lock-box Balance plus 
        (ii) the amount of outlays in the Senate Lock-box Balance for 
        that bill.</DELETED>
<DELETED>    ``(4) Calculation of Lock-Box Savings in Senate.--For 
purposes of calculating under this section the net amounts of 
reductions in new budget authority and in outlays resulting from 
amendments agreed to by the Senate on an appropriation bill, the 
amendments reported to the Senate by its Committee on Appropriations 
shall be considered to be part of the original text of the 
bill.</DELETED>
<DELETED>    ``(d) Definition.--As used in this section, the term 
`appropriation bill' means any general or special appropriation bill, 
and any bill or joint resolution making supplemental, deficiency, or 
continuing appropriations through the end of a fiscal year.</DELETED>
<DELETED>    ``(e) Tally During House Consideration.--The chairman of 
the Committee on the Budget of the House of Representatives shall 
maintain a running tally of the amendments adopted reflecting increases 
and decreases of budget authority in the bill as reported. This tally 
shall be available to Members in the House of Representatives during 
consideration of any appropriations bill by the House.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents set forth 
in section 1(b) of the Congressional Budget and Impoundment Control Act 
of 1974 is amended by inserting after the item relating to section 317 
the following new item:</DELETED>

<DELETED>``Sec. 318. Spending accountability lock-box ledger.''.

<DELETED>SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(A) ALLOCATIONS 
              AND SECTION 302(B) SUBALLOCATIONS.</DELETED>

<DELETED>    (a) Allocations.--Section 302(a) of the Congressional 
Budget Act of 1974 (as amended by section 422) is further amended by 
adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(7) Adjustment of allocations.--Upon the 
        engrossment of Senate amendments to any appropriation bill (as 
        defined in section 318(d)) for a fiscal year, the amounts 
        allocated under paragraph (1) or (2) to the Committee on 
        Appropriations of each House upon the adoption of the most 
        recent joint resolution on the budget for that fiscal year 
        shall be adjusted downward by the amounts credited to the 
        applicable Joint House-Senate Lock-box Balance under section 
        318(c)(2). The revised levels of new budget authority and 
        outlays shall be submitted to each House by the chairman of the 
        Committee on the Budget of that House and shall be printed in 
        the Congressional Record.''.</DELETED>
<DELETED>    (b) Suballocations.--Section 302(b) of the Congressional 
Budget Act of 1974 is amended by adding at the end the following new 
sentence: ``Whenever an adjustment is made under subsection (a)(7) to 
an allocation under that subsection, the Committee on Appropriations of 
each House shall make downward adjustments in the most recent 
suballocations of new budget authority and outlays under this 
subparagraph to the appropriate subcommittees of that committee in the 
total amounts of those adjustments under section 318(c)(2). The revised 
suballocations shall be submitted to each House by the chairman of the 
Committee on Appropriations of that House and shall be printed in the 
Congressional Record.''.</DELETED>

<DELETED>SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.</DELETED>

<DELETED>    Section 308(b)(1) of the Congressional Budget Act of 1974 
is amended by adding at the end the following new sentence: ``Such 
reports shall also include an up-to-date tabulation of the amounts 
contained in the ledger and each entry established by section 
318(a).''.</DELETED>

<DELETED>SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING 
              LIMITS.</DELETED>

<DELETED>    The discretionary spending limits for new budget authority 
and outlays for any fiscal year set forth in section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, shall be 
reduced by the amounts set forth in the final regular appropriation 
bill for that fiscal year or joint resolution making continuing 
appropriations through the end of that fiscal year. Those amounts shall 
be the sums of the Joint House-Senate Lock-box Balances for that fiscal 
year, as calculated under section 302(a)(7) of the Congressional Budget 
Act of 1974. That bill or joint resolution shall contain the following 
statement of law: ``As required by section 636 of the Spending 
Accountability Lock-box Act of 1999, for fiscal year [insert 
appropriate fiscal year] and each outyear, the adjusted discretionary 
spending limit for new budget authority shall be reduced by $ [insert 
appropriate amount of reduction] and the adjusted discretionary limit 
for outlays shall be reduced by $ [insert appropriate amount of 
reduction] for the fiscal year and each outyear.''. Notwithstanding 
section 904(c) of the Congressional Budget Act of 1974, section 306 as 
it applies to this statement shall not apply. This adjustment shall be 
reflected in reports under sections 254(f) and 254(g) of the Balanced 
Budget and Emergency Deficit Control Act of 1985.</DELETED>

    <DELETED>[Subtitle D--Automatic Continuing Resolution</DELETED>

<DELETED>[SEC. 641. AUTOMATIC CONTINUING RESOLUTION.</DELETED>

<DELETED>    [(a) Amendment to Title 31.--Chapter 13 of title 31, 
United States Code, is amended by inserting after section 1310 the 
following new section:</DELETED>
<DELETED>[``Sec. 1311. Continuing appropriations</DELETED>
<DELETED>    [``(a)(1) If any regular appropriation bill for a fiscal 
year does not become law prior to the beginning of such fiscal year or 
a joint resolution making continuing appropriations is not in effect, 
there is appropriated, out of any moneys in the Treasury not otherwise 
appropriated, and out of applicable corporate or other revenues, 
receipts, and funds, such sums as may be necessary to continue any 
project or activity for which funds were provided in the preceding 
fiscal year--</DELETED>
        <DELETED>    [``(A) in the corresponding regular appropriation 
        Act for such preceding fiscal year; or</DELETED>
        <DELETED>    [``(B) if the corresponding regular appropriation 
        bill for such preceding fiscal year did not become law, then in 
        a joint resolution making continuing appropriations for such 
        preceding fiscal year.</DELETED>
<DELETED>    [``(2) Appropriations and funds made available, and 
authority granted, for a project or activity for any fiscal year 
pursuant to this section shall be at a rate of operations not in excess 
of the rate of operations provided for in the regular appropriation Act 
providing for such project or activity for the preceding fiscal year, 
or in the absence of such an Act, the rate of operations provided for 
such project or activity pursuant to a joint resolution making 
continuing appropriations for such preceding fiscal year.</DELETED>
<DELETED>    [``(3) Appropriations and funds made available, and 
authority granted, for any fiscal year pursuant to this section for a 
project or activity shall be available for the period beginning with 
the first day of a lapse in appropriations and ending with the earlier 
of--</DELETED>
        <DELETED>    [``(A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law (whether or 
        not such law provides for such project or activity) or a 
        continuing resolution making appropriations becomes law, as the 
        case may be, or</DELETED>
        <DELETED>    [``(B) the last day of such fiscal year.</DELETED>
<DELETED>    [``(b) An appropriation or funds made available, or 
authority granted, for a project or activity for any fiscal year 
pursuant to this section shall be subject to the terms and conditions 
imposed with respect to the appropriation made or funds made available 
for the preceding fiscal year, or authority granted for such project or 
activity under current law.</DELETED>
<DELETED>    [``(c) Appropriations and funds made available, and 
authority granted, for any project or activity for any fiscal year 
pursuant to this section shall cover all obligations or expenditures 
incurred for such project or activity during the portion of such fiscal 
year for which this section applies to such project or 
activity.</DELETED>
<DELETED>    [``(d) Expenditures made for a project or activity for any 
fiscal year pursuant to this section shall be charged to the applicable 
appropriation, fund, or authorization whenever a regular appropriation 
bill or a joint resolution making continuing appropriations until the 
end of a fiscal year providing for such project or activity for such 
period becomes law.</DELETED>
<DELETED>    [``(e) This section shall not apply to a project or 
activity during a fiscal year if any other provision of law (other than 
an authorization of appropriations)--</DELETED>
        <DELETED>    [``(1) makes an appropriation, makes funds 
        available, or grants authority for such project or activity to 
        continue for such period, or</DELETED>
        <DELETED>    [``(2) specifically provides that no appropriation 
        shall be made, no funds shall be made available, or no 
        authority shall be granted for such project or activity to 
        continue for such period; or</DELETED>
<DELETED>    [``(f) For purposes of this section, the term `regular 
appropriation bill' means any annual appropriation bill making 
appropriations, otherwise making funds available, or granting 
authority, for any of the following categories of projects and 
activities:</DELETED>
        <DELETED>    [``(1) Agriculture, rural development, and related 
        agencies programs.</DELETED>
        <DELETED>    [``(2) The Departments of Commerce, Justice, and 
        State, the judiciary, and related agencies.</DELETED>
        <DELETED>    [``(3) The Department of Defense.</DELETED>
        <DELETED>    [``(4) The government of the District of Columbia 
        and other activities chargeable in whole or in part against the 
        revenues of the District.</DELETED>
        <DELETED>    [``(5) The Departments of Labor, Health and Human 
        Services, and Education, and related agencies.</DELETED>
        <DELETED>    [``(6) The Department of Housing and Urban 
        Development, and sundry independent agencies, boards, 
        commissions, corporations, and offices.</DELETED>
        <DELETED>    [``(7) Energy and water development.</DELETED>
        <DELETED>    [``(8) Foreign assistance and related 
        programs.</DELETED>
        <DELETED>    [``(9) The Department of the Interior and related 
        agencies.</DELETED>
        <DELETED>    [``(10) Military construction.</DELETED>
        <DELETED>    [``(11) The Department of Transportation and 
        related agencies.</DELETED>
        <DELETED>    [``(12) The Treasury Department, the U.S. Postal 
        Service, the Executive Office of the President, and certain 
        independent agencies.</DELETED>
        <DELETED>    [``(13) The legislative branch.''.</DELETED>
<DELETED>    [(b) Conforming Amendment.--Section 202(e)(3) of the 
Congressional Budget Act of 1974 is amended by inserting ``and on or 
before September 30'' before ``of each year''.</DELETED>
<DELETED>    [(c) Chapter Analysis.--The analysis of chapter 13 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 1310 the following new item:</DELETED>

<DELETED>[``1311. Continuing appropriations.''.
<DELETED>    [(d) Effect of Amendments.--Nothing in the amendments made 
by this subsection shall be construed to affect Government obligations 
mandated by other law, including obligations with respect to social 
security, medicare, and medicaid.]</DELETED>

     <DELETED>TITLE VII--BUDGETING IN AN ERA OF SURPLUSES</DELETED>

<DELETED>SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET 
              SURPLUS.</DELETED>

<DELETED>    (a) Section 252(a) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended to read as follows:</DELETED>
<DELETED>    ``(a) Purpose.--The purpose of this section is to assure 
that direct spending or receipts legislation does not increase the 
deficit or exceed the on-budget surplus.''.</DELETED>
<DELETED>    (b) Sequestration.--(1) Section 252(b)(1) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by 
inserting ``minus the amount for the budget year, if any, estimated 
under paragraph (3)'' after ``as calculated under paragraph 
(2)''.</DELETED>
<DELETED>    (2) Section 252(b) of such Act is amended by adding at the 
end the following new paragraph:</DELETED>
        <DELETED>    ``(3) Estimate of On-Budget Surplus.--OMB 
        estimates for the budget year of the excess of receipts over 
        outlays (if any) as set forth in the OMB sequestration update 
        report as calculated pursuant to section 254(c)(3). These 
        estimates shall not include outlays and receipts of the Federal 
        Old-Age and Survivors Insurance Trust Fund, the Federal 
        Disability Insurance Trust Fund, or any other off-budget 
        entity.''.</DELETED>
<DELETED>    (c) Clarification of Existing Law.--Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (as amended 
by section 412(b)) is further amended by adding at the end the 
following new subsection:</DELETED>
<DELETED>    ``(f) Meaning of Net Deficit Increase.--For purposes of 
this section, a net deficit is the amount by which decreases in 
revenues plus increases in outlays exceeds increases in revenues plus 
decreases in outlays.''.</DELETED>
<DELETED>    (d) Reports.--</DELETED>
        <DELETED>    (1) Preview.--Section 254(c)(3) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 is amended by 
        adding at the end the following new subparagraph:</DELETED>
                <DELETED>    ``(D) The estimated excess of receipts 
                over outlays for the budget year (if any) (assuming the 
                levels appropriated if all regular appropriations (or a 
                continuing appropriation) are enacted minus any amounts 
                sequestered for that year under section 251, but if 
                that is not the case, then assuming compliance with the 
                adjusted discretionary spending limits set forth in 
                section 251(c)) (but if no such limits are in effect 
                for such year, then assume compliance with such limits 
                for the last fiscal year for which such limits were in 
                effect) without taking into account the effect of 
                direct spending and receipts legislation for such year 
                calculated under section 252(d) enacted after the date 
                of enactment of this subparagraph.''.</DELETED>
        <DELETED>    (2) Final.--Section 254(f)(3) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 is amended by 
        adding at the end the following new sentence: ``Notwithstanding 
        subsection (j), actual levels of enacted discretionary 
        appropriations or up-to-date adjusted discretionary spending 
        limits (but if no such limits are in effect for such year, then 
        assume such limits for the last fiscal year for which such 
        limits were in effect), as applicable, shall be used in the 
        final pay-as-you go report regarding information required by 
        subsection (c)(3)(D) to be included in the pay-as-you-go 
        sequestration preview report.''.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Comprehensive 
Budget Process Reform Act of 1999''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Effective date.
Sec. 4. Declaration of purposes for the Budget Act.

                   TITLE I--BUDGET WITH FORCE OF LAW

Sec. 101. Purposes.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered; 
                            fall-back procedures if President vetoes 
                            joint budget resolution.
Sec. 105. Conforming amendments to effectuate joint resolutions on the 
                            budget.

                 TITLE II--RESERVE FUND FOR EMERGENCIES

Sec. 201. Purpose.
Sec. 202. Repeal of adjustments for emergencies.
Sec. 203. OMB emergency criteria.
Sec. 204. Development of guidelines for application of emergency 
                            definition.
Sec. 205. Reserve fund for emergencies in President's budget.
Sec. 206. Adjustments and reserve fund for emergencies in joint budget 
                            resolutions.
Sec. 207. Application of section 306 to emergencies in excess of 
                            amounts in reserve fund.
Sec. 208. Up-to-date tabulations.
Sec. 209. Prohibition on amendments to emergency reserve fund.
Sec. 210. Effective date.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes.

  Subtitle A--Application of Points of Order to Unreported Legislation

Sec. 311. Application of Budget Act points of order to unreported 
                            legislation.

             Subtitle B--Compliance with Budget Resolution

Sec. 321. Budget compliance statements.

            Subtitle C--Justification for Budget Act Waivers

Sec. 331. Justification for Budget Act waivers in the House of 
                            Representatives.

             Subtitle D--CBO Scoring of Conference Reports

Sec. 341. CBO scoring of conference reports.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes.

               Subtitle A--Limitations on Direct Spending

Sec. 411. Fixed-year authorizations required for new programs.
Sec. 412. Amendments to subject new direct spending to annual 
                            appropriations.

     Subtitle B--Enhanced Congressional Oversight Responsibilities

Sec. 421. Ten-year congressional review requirement of permanent budget 
                            authority.
Sec. 422. Justifications of direct spending.
Sec. 423. Survey of activity reports of House committees.
Sec. 424. Continuing study of additional budget process reforms.
Sec. 425. GAO reports.

                Subtitle C--Strengthened Accountability

Sec. 431. Ten-year CBO estimates.
Sec. 432. Repeal of rule XXIII of the Rules of the House of 
                            Representatives.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

Sec. 501. Purposes.

     Subtitle A--Budgetary Treatment of Federal Insurance Programs

Sec. 511. Federal insurance programs.

           Subtitle B--Reports on Long-Term Budgetary Trends

Sec. 521. Reports on long-term budgetary trends.

   TITLE VI--BASELINE, BYRD RULE, LOCK-BOX, AND AUTOMATIC CONTINUING 
                               RESOLUTION

Sec. 601. Purpose.

                        Subtitle A--The Baseline

Sec. 611. The President's budget.
Sec. 612. The congressional budget.
Sec. 613. Congressional Budget Office reports to committees.
Sec. 614. Outyear assumptions for discretionary spending.

                       Subtitle B--The Byrd Rule

Sec. 621. Limitation on Byrd rule.

              Subtitle C--Spending Accountability Lock-Box

Sec. 631. Short title.
Sec. 632. Spending accountability lock-box ledger.
Sec. 633. Downward adjustment of section 302(a) allocations and section 
                            302(b) suballocations.
Sec. 634. Periodic reporting of ledger statements.
Sec. 635. Downward adjustment of discretionary spending limits.

              Subtitle D--Automatic Continuing Resolution

Sec. 641. Automatic continuing resolution.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus.

SEC. 2. PURPOSE.

    The purposes of this Act are to--
            (1) give the budget the force of law;
            (2) budget for emergencies;
            (3) strengthen enforcement of budgetary decisions;
            (4) increase accountability for Federal spending;
            (5) display the unfunded liabilities of Federal insurance 
        programs;
            (6) mitigate the bias in the budget process toward higher 
        spending; and
            (7) modify paygo requirements when there is an on-budget 
        surplus.

SEC. 3. EFFECTIVE DATE.

    Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall become effective on the date of 
enactment of this Act and shall apply with respect to fiscal years 
beginning after September 30, 2000.

SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET ACT.

    Paragraphs (1) and (2) of section 2 of the Congressional Budget and 
Impoundment Control Act of 1974 are amended to read as follows:
            ``(1) to assure effective control over the budgetary 
        process;
            ``(2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures by the 
        Congress and the President;''.

                   TITLE I--BUDGET WITH FORCE OF LAW

SEC. 101. PURPOSES.

    The purposes of this title are to--
            (1) focus initial budgetary deliberations on aggregate 
        levels of Federal spending and taxation;
            (2) encourage cooperation between Congress and the 
        President in developing overall budgetary priorities; and
            (3) reach budgetary decisions early in the legislative 
        cycle.

SEC. 102. THE TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 is amended to 
read as follows:

                              ``timetable

    ``Sec. 300. The timetable with respect to the congressional budget 
process for any fiscal year is as follows:

``On or before:                     Action to be completed:
    First Monday in February.......
                                        President submits his budget.
    February 15....................
                                        Congressional Budget Office 
                                                submits report to 
                                                Budget Committees.
    Not later than 6 weeks after 
        President submits budget.
                                        Committees submit views and 
                                                estimates to Budget 
                                                Committees.
    April 1........................
                                        Senate Budget Committee reports 
                                                joint resolution on the 
                                                budget.
    April 15.......................
                                        Congress completes action on 
                                                joint resolution on the 
                                                budget.
    June 10........................
                                        House Appropriations Committee 
                                                reports last annual 
                                                appropriation bill.
    June 15........................
                                        Congress completes action on 
                                                reconciliation 
                                                legislation.
    June 30........................
                                        House completes action on 
                                                annual appropriation 
                                                bills.
    October 1......................
                                        Fiscal year begins.''.

SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

    (a) Content of Annual Joint Resolutions on the Budget.--Section 
301(a) of the Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraph (4) and insert the following new 
        paragraph:
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending (excluding interest), and interest; 
        and for fiscal years to which the amendments made by title II 
        of the Comprehensive Budget Process Reform Act of 1999 apply, 
        subtotals of new budget authority and outlays for 
        emergencies;''.
            (2) Strike the last sentence of such subsection.
    (b) Additional Matters in Joint Resolution.--Section 301(b) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraphs (2), (4), and (6) through (9).
            (2) After paragraph (1), insert the following new 
        paragraph:
            ``(2) if submitted by the Committee on Ways and Means of 
        the House of Representatives or the Committee on Finance of the 
        Senate to the Committee on the Budget of that House of 
        Congress, amend section 3101 of title 31, United States Code, 
        to change the statutory limit on the public debt;''.
            (3) After paragraph (3), insert the following new 
        paragraph:
            ``(4) require such other congressional procedures, relating 
        to the budget, as may be appropriate to carry out the purposes 
        of this Act;''; and
            (4) After paragraph (5), insert the following new 
        paragraph:
            ``(6) set forth procedures in the Senate whereby committee 
        allocations, aggregates, and other levels can be revised for 
        legislation if that legislation would not increase the deficit, 
        or would not increase the deficit when taken with other 
        legislation enacted after the adoption of the resolution, for 
        the first fiscal year or the total period of fiscal years 
        covered by the resolution.''.
    (c) Required Contents of Report.--Section 301(e)(2) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A), (B), (C), (D), (E), and 
        (F) as subparagraphs (B), (C), (E), (F), (H), and (I), 
        respectively.
            (2) Before subparagraph (B) (as redesignated), insert the 
        following new subparagraph:
                    ``(A) new budget authority and outlays for each 
                major functional category, based on allocations of the 
                total levels set forth pursuant to subsection 
                (a)(1);''.
            (3) In subparagraph (C) (as redesignated), strike 
        ``mandatory'' and insert ``direct spending''.
            (4) After subparagraph (C) (as redesignated), insert the 
        following new subparagraph:
                    ``(D) a measure, as a percentage of gross domestic 
                product, of total outlays, total Federal revenues, the 
                surplus or deficit, and new outlays for nondefense 
                discretionary spending, defense spending, and direct 
                spending as set forth in such resolution;''.
            (5) After subparagraph (F) (as redesignated), insert the 
        following new subparagraph:
                    ``(G) if the joint resolution on the budget 
                includes any allocation to a committee (other than the 
                Committee on Appropriations) of levels in excess of 
                current law levels, a justification for not subjecting 
                any program, project, or activity (for which the 
                allocation is made) to annual discretionary 
                appropriations;''.
    (d) Additional Contents of Report.--Section 301(e)(3) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A) and (B) as subparagraphs 
        (B) and (C), respectively, strike subparagraphs (C) and (D), 
        and redesignate subparagraph (E) as subparagraph (D).
            (2) Before subparagraph (B), insert the following new 
        subparagraph:
                    ``(A) reconciliation directives described in 
                section 310;''.
    (e) President's Budget Submission to the Congress.--(1) The first 
two sentences of section 1105(a) of title 31, United States Code, are 
amended to read as follows:
``On or after the first Monday in January but not later than the first 
Monday in February of each year the President shall submit a budget of 
the United States Government for the following fiscal year which shall 
set forth the following levels:
            ``(A) totals of new budget authority and outlays;
            ``(B) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;
            ``(C) the surplus or deficit in the budget;
            ``(D) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending, and interest; and for fiscal years 
        to which the amendments made by title II of the Comprehensive 
        Budget Process Reform Act of 1999 apply, subtotals of new 
        budget authority and outlays for emergencies; and
            ``(E) the public debt.
Each budget submission shall include a budget message and summary and 
supporting information and, as a separately delineated statement, the 
levels required in the preceding sentence for at least each of the 9 
ensuing fiscal years.''.
    (2) The third sentence of section 1105(a) of title 31, United 
States Code, is amended by inserting ``submission'' after ``budget''.
    (f) Limitation on Contents of Budget Resolutions.--Section 305 of 
the Congressional Budget Act of 1974 is amended by adding at the end 
the following new subsection:
    ``(e) Limitation on Contents.--(1) It shall not be in order in the 
House of Representatives or in the Senate to consider any joint 
resolution on the budget or any amendment thereto or conference report 
thereon that contains any matter referred to in paragraph (2).
    ``(2) Any joint resolution on the budget or any amendment thereto 
or conference report thereon that contains any matter not permitted in 
section 301(a) or (b) shall not be treated in the House of 
Representatives or the Senate as a budget resolution under subsection 
(a) or (b) or as a conference report on a budget resolution under 
subsection (c) of this section.''.

SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED; 
              FALL-BACK PROCEDURES IF PRESIDENT VETOES JOINT BUDGET 
              RESOLUTION.

    (a) Amendments to Section 302.--Section 302(a) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (5).
    (b) Amendments to Section 303 and Conforming Amendments.--(1) 
Section 303 of the Congressional Budget Act of 1974 is amended--
            (A) in subsection (b), by striking paragraph (2), by 
        inserting ``or'' at the end of paragraph (1), and by 
        redesignating paragraph (3) as paragraph (2); and
            (B) by striking its section heading and inserting the 
        following new section heading: ``consideration of budget-
        related legislation before budget becomes law''.
    (2) Section 302(g)(1) of the Congressional Budget Act of 1974 is 
amended by striking ``and, after April 15, section 303(a)''.
    (3)(A) Section 904(c)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (B) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (c) Expedited Procedures Upon Veto of Joint Resolution on the 
Budget.--(1) Title III of the Congressional Budget Act of 1974 is 
amended by adding after section 315 the following new section:

   ``expedited procedures upon veto of joint resolution on the budget

    ``Sec. 316. (a) Special Rule.--If the President vetoes a joint 
resolution on the budget for a fiscal year, the majority leader of the 
House of Representatives or Senate (or his designee) may introduce a 
concurrent resolution on the budget or joint resolution on the budget 
for such fiscal year. If the Committee on the Budget of either House 
fails to report such concurrent or joint resolution referred to it 
within five calendar days (excluding Saturdays, Sundays, or legal 
holidays except when that House of Congress is in session) after the 
date of such referral, the committee shall be automatically discharged 
from further consideration of such resolution and such resolution shall 
be placed on the appropriate calendar.
    ``(b) Procedure in the House of Representatives and the Senate.--
            ``(1) Except as provided in paragraph (2), the provisions 
        of section 305 for the consideration in the House of 
        Representatives and in the Senate of joint resolutions on the 
        budget and conference reports thereon shall also apply to the 
        consideration of concurrent resolutions on the budget 
        introduced under subsection (a) and conference reports thereon.
            ``(2) Debate in the Senate on any concurrent resolution on 
        the budget or joint resolution on the budget introduced under 
        subsection (a), and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 10 hours and in the House such debate shall be 
        limited to not more than 3 hours.
    ``(c) Contents of Concurrent Resolutions.--Any concurrent 
resolution on the budget introduced under subsection (a) shall be in 
compliance with section 301.
    ``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a 
concurrent resolution on the budget described in subsection (a) is 
agreed to, then the aggregates, allocations, and reconciliation 
directives (if any) contained in the report accompanying such 
concurrent resolution or in such concurrent resolution shall be 
considered to be the aggregates, allocations, and reconciliation 
directives for all purposes of sections 302, 303, and 311 for the 
applicable fiscal years and such concurrent resolution shall be deemed 
to be a joint resolution for all purposes of this title and the Rules 
of the House of Representatives and any reference to the date of 
enactment of a joint resolution on the budget shall be deemed to be a 
reference to the date agreed to when applied to such concurrent 
resolution.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 315 the following new 
item:

``Sec. 316. Expedited procedures upon veto of joint resolution on the 
                            budget.''.

SEC. 105. CONFORMING AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE 
              BUDGET.

    (a) Conforming Amendments to the Congressional Budget and 
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302, 303, 305, 
308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget Act 
of 1974 (2 U.S.C. 621 et seq.) are amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 are amended by striking ``most 
recently agreed to concurrent resolution on the budget'' each place it 
occurs and inserting ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable)''.
    (ii) The section heading of section 301 is amended by striking 
``adoption of concurrent resolution'' and inserting ``joint 
resolutions'';
    (iii) Section 304 of such Act is amended to read as follows:

             ``permissible revisions of budget resolutions

    ``Sec. 304. At any time after the joint resolution on the budget 
for a fiscal year has been enacted pursuant to section 301, and before 
the end of such fiscal year, the two Houses and the President may enact 
a joint resolution on the budget which revises or reaffirms the joint 
resolution on the budget for such fiscal year most recently enacted. If 
a concurrent resolution on the budget has been agreed to pursuant to 
section 316, then before the end of such fiscal year, the two Houses 
may adopt a concurrent resolution on the budget which revises or 
reaffirms the concurrent resolution on the budget for such fiscal year 
most recently agreed to.''.
    (C) Sections 302, 303, 310, and 311, of such Act are amended by 
striking ``agreed to'' each place it appears and by inserting 
``enacted''.
    (2)(A) Paragraph (4) of section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B) The table of contents set forth in section 1(b) of such Act is 
amended--
            (i) in the item relating to section 301, by striking 
        ``adoption of concurrent resolution'' and inserting ``joint 
        resolutions'';
            (ii) by striking the item relating to section 303 and 
        inserting the following:

``Sec. 303. Consideration of budget-related legislation before budget 
                            becomes law.'';
            (iii) in the item relating to section 304, by striking 
        ``concurrent'' and inserting ``budget'' the first place it 
        appears and by striking ``on the budget''; and
            (iv) by striking ``concurrent'' and inserting ``joint'' in 
        the item relating to section 305.
    (b) Conforming Amendments to the Rules of the House of 
Representatives.--(1) Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), 
and 4(f)(2) of rule X, clause 10 of rule XVIII, and clause 10 of rule 
XX of the Rules of the House of Representatives are amended by striking 
``concurrent'' each place it appears and inserting ``joint''.
    (2) Clause 10 of rule XVIII of the Rules of the House of 
Representatives is amended--
            (A) in paragraph (b)(2), by striking ``(5)'' and inserting 
        ``(6)''; and
            (B) by striking paragraph (c).
    (c) Conforming Amendments to the Balanced Budget and Emergency 
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is 
amended by striking ``concurrent'' and inserting ``joint''.
    (d) Conforming Amendments to Section 310 Regarding Reconciliation 
Directives.--(1) The side heading of section 310(a) of the 
Congressional Budget Act of 1974 (as amended by section 105(a)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.
    (2) Section 310(a) of such Act is amended by striking ``A'' and 
inserting ``The joint explanatory statement accompanying the conference 
report on a''.
    (3) The first sentence of section 310(b) of such Act is amended by 
striking ``If'' and inserting ``If the joint explanatory statement 
accompanying the conference report on''.
    (4) Section 310(c)(1) of such Act is amended by inserting ``the 
joint explanatory statement accompanying the conference report on'' 
after ``pursuant to''.
    (5) Subsection (g) of section 310 of such Act is repealed.
    (e) Conforming Amendments to Section 3 Regarding Direct Spending.--
Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end the following new paragraph:
            ``(11) The term `direct spending' has the meaning given to 
        such term in section 250(c)(8) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.
    (f) Technical Amendment Regarding Revised Suballocations.--Section 
314(d) of the Congressional Budget Act of 1974 is amended by--
            (1) striking ``Reporting'' in the side heading, by 
        inserting ``the chairmen of'' before ``the Committees'', and by 
        striking ``may report'' and inserting ``shall make and have 
        published in the Congressional Record''; and
            (2) adding at the end the following new sentence: ``For 
        purposes of considering amendments (other than for amounts for 
        emergencies covered by subsection (b)(1)), suballocations shall 
        be deemed to be so adjusted.''.

                 TITLE II--RESERVE FUND FOR EMERGENCIES

SEC. 201. PURPOSE.

    The purposes of this title are to--
            (1) develop budgetary and fiscal procedures for 
        emergencies;
            (2) subject spending for emergencies to budgetary 
        procedures and controls; and
            (3) establish criteria for determining compliance with 
        emergency requirements.

SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

    (a) Discretionary Spending Limits.--(1) Section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.
    (2) Such section 251(b)(2) is further amended by redesignating 
subparagraphs (B) through (G) as subparagraphs (A) through (F).
    (b) Direct Spending.--Sections 252(e) and 252(d)(4)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 are repealed.
    (c) Emergency Designation.--Clause 2 of rule XXI of the Rules of 
the House of Representatives is amended by repealing paragraph (e) and 
by redesignating paragraph (f) as paragraph (e).
    (d) Amount of Adjustments.--Section 314(b) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (1) and by 
redesignating paragraphs (2) through (6) as paragraphs (1) through (5), 
respectively.

SEC. 203. OMB EMERGENCY CRITERIA.

    Section 3 of the Congressional Budget and Impoundment Control Act 
of 1974 (as amended by section 105(e)) is further amended by adding at 
the end the following new paragraph:
            ``(12)(A) The term `emergency' means a situation that--
                    ``(i) requires new budget authority and outlays (or 
                new budget authority and the outlays flowing therefrom) 
                for the prevention or mitigation of, or response to, 
                loss of life or property, or a threat to national 
                security; and
                    ``(ii) is unanticipated.
            ``(B) As used in subparagraph (A), the term `unanticipated' 
        means that the situation is--
                    ``(i) sudden, which means quickly coming into being 
                or not building up over time;
                    ``(ii) urgent, which means a pressing and 
                compelling need requiring immediate action;
                    ``(iii) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                    ``(iv) temporary, which means not of a permanent 
                duration.''.

SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY 
              DEFINITION.

    Not later than 5 months after the date of enactment of this Act, 
the chairmen of the Committees on the Budget (in consultation with the 
President) shall, after consulting with the chairmen of the Committees 
on Appropriations and applicable authorizing committees of their 
respective Houses and the Directors of the Congressional Budget Office 
and the Office of Management and Budget, jointly publish in the 
Congressional Record guidelines for application of the definition of 
emergency set forth in section 3(12) of the Congressional Budget and 
Impoundment Control Act of 1974.

SEC. 205. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.

    Section 1105(f) of title 31, United States Code is amended by 
adding at the end the following new sentences: ``Such budget submission 
shall also comply with the requirements of section 317(b) of the 
Congressional Budget Act of 1974 and, in the case of any budget 
authority requested for an emergency, such submission shall include a 
detailed justification of why such emergency is an emergency within the 
meaning of section 3(12) of the Congressional Budget Act of 1974.''.

SEC. 206. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN JOINT BUDGET 
              RESOLUTIONS.

    (a) Emergencies.--Title III of the Congressional Budget Act of 1974 
(as amended by section 104(c)) is further amended by adding at the end 
the following new section:

                             ``emergencies

    ``Sec. 317. (a) Adjustments.--
            ``(1) In general.--After the reporting of a bill or joint 
        resolution or the submission of a conference report thereon 
        that provides budget authority for any emergency as identified 
        pursuant to subsection (d)--
                    ``(A) the chairman of the Committee on the Budget 
                of the House of Representatives or the Senate shall 
                determine and certify, pursuant to the guidelines 
                referred to in section 204 of the Comprehensive Budget 
                Process Reform Act of 1999, the portion (if any) of the 
                amount so specified that is for an emergency within the 
                meaning of section 3(12); and
                    ``(B) such chairman shall make the adjustment set 
                forth in paragraph (2) for the amount of new budget 
                authority (or outlays) in that measure and the outlays 
                flowing from that budget authority.
            ``(2) Matters to be adjusted.--The adjustments referred to 
        in paragraph (1) are to be made to the allocations made 
        pursuant to the appropriate joint resolution on the budget 
        pursuant to section 302(a) and shall be in an amount not to 
        exceed the amount reserved for emergencies pursuant to the 
        requirements of subsection (b).
    ``(b) Reserve Fund for Emergencies.--
            ``(1) Amounts.--The amount set forth in the reserve fund 
        for emergencies for budget authority and outlays for a fiscal 
        year pursuant to section 301(a)(4) shall equal--
                    ``(A) the average of the enacted levels of budget 
                authority for emergencies in the 5 fiscal years 
                preceding the current year; and
                    ``(B) the average of the levels of outlays for 
                emergencies in the 5 fiscal years preceding the current 
                year flowing from the budget authority referred to in 
                subparagraph (A), but only in the fiscal year for which 
                such budget authority first becomes available for 
                obligation.
            ``(2) Average levels.--For purposes of paragraph (1), the 
        amount used for a fiscal year to calculate the average of the 
        enacted levels when one or more of such 5 preceding fiscal 
        years is any of fiscal years 1994 through 1998 is as follows: 
        the amount of enacted levels of budget authority and the amount 
        of new outlays flowing therefrom for emergencies, but only in 
        the fiscal year for which such budget authority first becomes 
        available for obligation for each of such 5 fiscal years, which 
        shall be determined by the Committees on the Budget of the 
        House of Representatives and the Senate after receipt of a 
        report on such matter transmitted to such committees by the 
        Director of the Congressional Budget Office 6 months after the 
        date of enactment of this section and thereafter in February of 
        each calendar year.
    ``(c) Emergencies in Excess of Amounts in Reserve Fund.--Whenever 
the Committee on Appropriations or any other committee reports any bill 
or joint resolution that provides budget authority for any emergency 
and the report accompanying that bill or joint resolution, pursuant to 
subsection (d), identifies any provision that increases outlays or 
provides budget authority (and the outlays flowing therefrom) for such 
emergency, the enactment of which would cause--
            ``(1) in the case of the Committee on Approrpiations, the 
        total amount of budget authority or outlays provided for 
        emergencies for the budget year; or
            ``(2) in the case of any other committee, the total amount 
        of budget authority or outlays provided for emergencies for the 
        budget year or the total of the fiscal years;
in the joint resolution on the budget (pursuant to section 301(a)(4)) 
to be exceeded:
            ``(A) Such bill or joint resolution shall be referred to 
        the Committee on the Budget of the House or the Senate, as the 
        case may be, with instructions to report it without amendment, 
        other than that specified in subparagraph (B), within 5 
        legislative days of the day in which it is reported from the 
        originating committee. If the Committee on the Budget of either 
        House fails to report a bill or joint resolution referred to it 
        under this subparagraph within such 5-day period, the committee 
        shall be automatically discharged from further consideration of 
        such bill or joint resolution and such bill or joint resolution 
        shall be placed on the appropriate calendar.
            ``(B) An amendment to such a bill or joint resolution 
        referred to in this subsection shall only consist of an 
        exemption from section 251 or 252 (as applicable) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 of 
        all or any part of the provisions that provide budget authority 
        (and the outlays flowing therefrom) for such emergency if the 
        committee determines, pursuant to the guidelines referred to in 
        section 204 of the Comprehensive Budget Process Reform Act of 
1999, that such budget authority is for an emergency within the meaning 
of section 3(12).
            ``(C) If such a bill or joint resolution is reported with 
        an amendment specified in subaragraph (B) by the Committee on 
        the Budget of the House of Representatives or the Senate, then 
        the budget authority and resulting outlays that are the subject 
        of such amendment shall not be included in any determinations 
        under section 302(f) or 311(a) for any bill, joint resolution, 
        amendment, motion, or conference report.
    ``(d) Committee Notification of Emergency Legislation.--Whenever 
the Committee on Appropriations or any other committee of either House 
(including a committee of conference) reports any bill or joint 
resolution that provides budget authority for any emergency, the report 
accompanying that bill or joint resolution (or the joint explanatory 
statement of managers in the case of a conference report on any such 
bill or joint resolution) shall identify all provisions that provide 
budget authority and the outlays flowing therefrom for such emergency 
and include a statement of the reasons why such budget authority meets 
the definition of an emergency pursuant to the guidelines referred to 
in section 204 of the Comprehensive Budget Process Reform Act of 
1999.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 316 the 
following new item:

``Sec. 317. Emergencies.''.

SEC. 207. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS OF 
              AMOUNTS IN RESERVE FUND.

    Section 306 of the Congressional Budget Act of 1974 is amended by 
inserting at the end the following new sentence: ``No amendment 
reported by the Committee on the Budget (or from the consideration of 
which such committee has been discharged) pursuant to section 317(c) 
may be amended.''.

SEC. 208. UP-TO-DATE TABULATIONS.

    Section 308(b)(2) of the Congressional Budget Act of 1974 is 
amended by striking ``and'' at the end of subparagraph (B), by striking 
the period at the end of subparagraph (C) and inserting ``; and'', and 
by adding at the end the following new subparagraph:
                    ``(D) shall include an up-to-date tabulation of 
                amounts remaining in the reserve fund for 
                emergencies.''.

SEC. 209. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.

    (a) Point of Order.--Section 305 of the Congressional Budget Act of 
1974 (as amended by section 103(c)) is further amended by adding at the 
end the following new subsection:
    ``(f) Point of Order Regarding Emergency Reserve Fund.--It shall 
not be in order in the House of Representatives or in the Senate to 
consider an amendment to a joint resolution on the budget which changes 
the amount of budget authority and outlays set forth in section 
301(a)(4) for emergency reserve fund.''.
    (b) Technical Amendment.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``305(e), 
305(f),'' after ``305(c)(4),''.
    (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``305(e), 305(f),'' after ``305(c)(4),''.

SEC. 210. EFFECTIVE DATE.

    The amendments made by this title shall apply to fiscal year 2001 
and subsequent fiscal years, but such amendments shall take effect only 
after the enactment of legislation changing or extending for any fiscal 
year the discretionary spending limits set forth in section 251 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 or 
legislation reducing the amount of any sequestration under section 252 
of such Act by the amount of any reserve for any emergencies.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

SEC. 301. PURPOSES.

    The purposes of this title are to--
            (1) close loopholes in the enforcement of budget 
        resolutions;
            (2) require committees of the House of Representatives to 
        include budget compliance statements in reports accompanying 
        all legislation; and
            (3) require committees of the House of Representatives to 
        justify the need for waivers of the Congressional Budget Act of 
        1974;
            (4) provide cost estimates of conference reports.

  Subtitle A--Application of Points of Order to Unreported Legislation

SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER TO UNREPORTED 
              LEGISLATION.

    (a) Section 315 of the Congressional Budget Act of 1974 is amended 
by striking ``reported'' the first place it appears.
    (b) Section 303(b) of the Congressional Budget Act of 1974 (as 
amended by section 104(b)(1)) is further amended--
            (1) in paragraph (1), by striking ``(A)'' and by 
        redesignating subparagraph (B) as paragraph (2) and by striking 
        the semicolon at the end of such new paragraph (2) and 
        inserting a period; and
            (2) by striking paragraph (2) (as redesignated by such 
        section 104(b)(1)).

             Subtitle B--Compliance with Budget Resolution

SEC. 321. BUDGET COMPLIANCE STATEMENTS.

    Clause 3(d) of rule XIII of the Rules of the House of 
Representatives is amended by adding at the end the following new 
subparagraph:
            ``(4) A budget compliance statement prepared by the 
        chairman of the Committee on the Budget, if timely submitted 
        prior to the filing of the report, which shall include 
        assessment by such chairman as to whether the bill or joint 
        resolution complies with the requirements of sections 302, 303, 
        306, 311, and 401 of the Congressional Budget Act of 1974 and 
        may include the budgetary implications of that bill or joint 
        resolution under section 251 or 252 of the Balanced Budget and 
        Emergency Deficit Control Act of 1985, as applicable.''.

            Subtitle C--Justification for Budget Act Waivers

SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN THE HOUSE OF 
              REPRESENTATIVES.

    Clause 6 of rule XIII of the Rules of the House of Representatives 
is amended by adding at the end the following new paragraph:
    ``(h) It shall not be in order to consider any resolution from the 
Committee on Rules for the consideration of any reported bill or joint 
resolution which waives section 302, 303, 311, or 401 of the 
Congressional Budget Act of 1974, unless the report accompanying such 
resolution includes a description of the provision proposed to be 
waived, an identification of the section being waived, the reasons why 
such waiver should be granted, and an estimated cost of the provisions 
to which the waiver applies.''.

             Subtitle D--CBO Scoring of Conference Reports

SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

    (a) The first sentence of section 402 of the Congressional Budget 
Act of 1974 is amended as follows:
            (1) Insert ``or conference report thereon,'' before ``and 
        submit''.
            (2) In paragraph (1), strike ``bill or resolution'' and 
        insert ``bill, joint resolution, or conference report''.
            (3) At the end of paragraph (2) strike ``and'', at the end 
        of paragraph (3) strike the period and insert ``; and'', and 
        after such paragraph (3) add the following new paragraph:
            ``(4) A determination of whether such bill, joint 
        resolution, or conference report provides direct spending.''.
    (b) The second sentence of section 402 of the Congressional Budget 
Act of 1974 is amended by inserting before the period the following: 
``, or in the case of a conference report, shall be included in the 
joint explanatory statement of managers accompanying such conference 
report if timely submitted before such report is filed''.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

SEC. 401. PURPOSES.

    The purposes of this title are to--
            (1) require committees to develop a schedule for 
        reauthorizing all programs within their jurisdictions;
            (2) facilitate amendments to subject new entitlement 
        programs to annual discretionary appropriations;
            (3) require the Committee on the Budget to justify any 
        allocation to an authorizing committee for legislation that 
        would not be subject to annual discretionary appropriation;
            (4) provide estimates of the long-term impact of spending 
        and tax legislation;
            (5) provide a point of order for legislation creating a new 
        direct spending program that does not expire within 10 years; 
        and
            (6) require a vote in the House of Representatives on any 
        measure that increases the statutory limit on the public debt.

               Subtitle A--Limitations on Direct Spending

SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR NEW PROGRAMS.

    (a) In General.--Section 401 of the Congressional Budget Act of 
1974 is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following new subsection:
    ``(a) Limitation on Direct Spending.--It shall not be in order in 
the House of Representatives or in the Senate to consider a bill or 
joint resolution, or an amendment, motion, or conference report that 
provides direct spending for a new program, unless such spending is 
limited to a period of 10 or fewer fiscal years.'';
            (2) by redesignating subsection (c) as subsection (b) and 
        by striking ``Subsections (a) and (b) each place it appears and 
        inserting ``Subsection (a)'' in such redesignated subsection 
        (b); and
            (3) by amending the section heading to read as follows:

      ``fixed-year authorizations required for direct spending''.

    (b) Conforming Amendment.--The item relating to section 401 in the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended to read as follows:

``Sec. 401. Fixed-year authorizations required for direct spending.''.
    (c) Limitation on Authorization of Discretionary Appropriations.--
Rule XXI of the Rules of the House of Representatives is amended by 
adding at the end the following new clause:
    ``6. It shall not be in order to consider any bill, joint 
resolution, amendment, or conference report that authorizes the 
appropriation of new budget authority (as defined in section 3(2)(C) of 
the Congressional Budget and Impoundment Control Act of 1974) for a new 
program, unless such authorization is specifically provided for a 
period of 10 or fewer fiscal years.''.

SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPENDING TO ANNUAL 
              APPROPRIATIONS.

    (a) House Procedures.--Clause 5 of rule XVIII of the Rules of the 
House of Representatives is amended by adding at the end the following 
new paragraph:
    ``(c)(1) In the Committee of the Whole, an amendment only to 
subject a new program which provides direct spending to discretionary 
appropriations, if offered by the chairman of the Committee on the 
Budget (or his designee) or the chairman of the Committee of 
Appropriations (or his designee), may be precluded from consideration 
only by the specific terms of a special order of the House. Any such 
amendment, if offered, shall be debatable for twenty minutes equally 
divided and controlled by the proponent of the amendment and a Member 
opposed and shall not be subject to amendment.
    ``(2) As used in subparagraph (1), the term `direct spending' has 
the meaning given such term in section 3(11) of the Congressional 
Budget and Impoundment Control Act of 1974.''.
    (b) Adjustment of Discretionary Spending Limits for Discretionary 
Appropriations Offset by Direct Spending Savings.--
            (1) Purpose.--The purpose of the amendments made by this 
        subsection is to hold the discretionary spending limits and the 
        allocations made to the Committee on Appropriations under 
        section 302(a) of the Congressional Budget Act of 1974 harmless 
        for legislation that offsets a new discretionary program with a 
        designated reduction in direct spending.
            (2) Designating direct spending savings in authorization 
        legislation for new discretionary programs.--Section 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (as 
        amended by section 202) is further amended by adding at the end 
        the following new subsection:
    ``(e) Offsets.--If a provision of direct spending legislation is 
enacted that--
            ``(1) decreases direct spending for any fiscal year; and
            ``(2) is designated as an offset pursuant to this 
        subsection and such designation specifically identifies an 
        authorization of discretionary appropriations (contained in 
        such legislation) for a new program,
then the reductions in new budget authority and outlays in all fiscal 
years resulting from that provision shall be designated as an offset in 
the reports required under subsection (d).''.
            (3) Exempting such designated direct spending savings from 
        paygo scorecard.--Section 252(d)(4) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (as amended by section 
        202(b)) is further amended by adding at the end the following 
        new subparagraph:
                    ``(B) offset provisions as designated under 
                subsection (e).''.
            (4) Adjustment in discretionary spending limits.--Section 
        251(b)(2) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985 (as amended by section 202(a)(2)) is further 
        amended by adding at the end the following new subparagraph:
                    ``(G) Discretionary authorization offsets.--If an 
                Act other than an appropriation Act includes any 
                provision reducing direct spending and specifically 
                identifies any such provision as an offset pursuant to 
                section 252(e), the adjustments shall be an increase in 
                the discretionary spending limits for budget authority 
                and outlays in each fiscal year equal to the amount of 
                the budget authority and outlay reductions, 
                respectively, achieved by the specified offset in that 
                fiscal year, except that the adjustments for the budget 
                year in which the offsetting provision takes effect 
                shall not exceed the amount of discretionary new budget 
                authority provided for the new program (authorized in 
                that Act) in an Act making discretionary appropriations 
                and the outlays flowing therefrom.''.
            (5) Adjustment in appropriation committee's allocations.--
        Section 314(b) of the Congressional Budget Act of 1974 (as 
        amended by section 202(d)) is further amended by striking ``; 
        or'' at the end of paragraph (4), by striking the period and 
        inserting ``; or'' at the end of paragraph (5), and by adding 
        at the end the following new paragraph:
            ``(6) the amount provided in an Act making discretionary 
        appropriations for the program for which an offset was 
        designated pursuant to section 252(e) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 and any outlays 
        flowing therefrom, but not to exceed the amount of the 
        designated decrease in direct spending for that year for that 
        program in a prior law.''.
            (6) Adjustment in authorizing committee's allocations.--
        Section 314 of the Congressional Budget Act of 1974 is amended 
        by adding at the end the following new subsection:
    ``(f) Adjustment in Authorizing Committee's Allocations by Amount 
of Direct Spending Offset.--After the reporting of a bill or joint 
resolution (by a committee other than the Committee on Appropriations), 
or the offering of an amendment thereto or the submission of a 
conference report thereon, that contains a provision that decreases 
direct spending for any fiscal year and that is designated as an offset 
pursuant to section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the chairman of the Committee on the Budget shall 
reduce the allocations of new budget authority and outlays made to such 
committee under section 302(a)(1) by the amount so designated.''.

     Subtitle B--Enhanced Congressional Oversight Responsibilities

SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIREMENT OF PERMANENT BUDGET 
              AUTHORITY.

    (a) Timetable for Review.--Clause 2(d)(1) of rule X of the Rules of 
the House of Representatives is amended by striking subdivisions (B) 
and (C) and inserting the following new subdivision:
            ``(B) provide in its plans a specific timetable for its 
        review of those laws, programs, or agencies within its 
        jurisdiction, including those that operate under permanent 
        budget authority or permanent statutory authority.''.
    (b) Review of Permanent Budget Authority by the Committee on 
Appropriations.--Clause 4(a) of rule X of the Rules of the House of 
Representatives is amended--
            (1) by striking subparagraph (2); and
            (2) by redesignating subparagraphs (3) and (4) as 
        subparagraphs (2) and (3) and by striking ``from time to time'' 
        and inserting ``at least once each Congress'' in subparagraph 
        (2) (as redesignated).
    (c) Conforming Amendment.--Clause 4(e)(2) of rule X of the Rules of 
the House of Representatives is amended by striking ``from time to 
time'' and inserting ``at least once every ten years''.

SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

    (a) Section 302 Allocations.--Section 302(a) of the Congressional 
Budget Act of 1974 (as amended by section 104(a)) is further amended by 
adding at the end the following new paragraph:
            ``(5) Justification of certain spending allocations.--The 
        joint explanatory statement accompanying a conference report on 
        a joint resolution on the budget that includes any allocation 
        to a committee (other than the Committee on Appropriations) of 
        levels in excess of current law levels shall set forth a 
        justification for not subjecting any program, project, or 
        activity (for which the allocation is made) to annual 
        discretionary appropriation.''.
    (b) Presidents' Budget Submissions.--Section 1105(a) of title 31, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(33) a justification for not subjecting each proposed new 
        direct spending program, project, or activity to discretionary 
        appropriations.''.
    (c) Committee Justification for Direct Spending.--Clause 4(e)(2) of 
rule X of the Rules of the House of Representatives is amended by 
inserting before the period the following: ``, and will provide 
specific information in any report accompanying such bills and joint 
resolutions to the greatest extent practicable to justify why the 
programs, projects, and activities involved would not be subject to 
annual appropriation''.

SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COMMITTEES.

    Clause 1(d) of rule XI of the Rules of the House of Representatives 
is amended by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph:
    ``(4) Such report shall include a summary of and justifications for 
all bills and joint resolutions reported by such committee that--
            ``(A) were considered before the adoption of the 
        appropriate budget resolution and did not fall within an 
        exception set forth in section 303(b) of the Congressional 
        Budget Act of 1974;
            ``(B) exceeded its allocation under section 302(a) of such 
        Act or breached an aggregate level in violation of section 311 
        of such Act; or
            ``(C) contained provisions in violation of section 401(a) 
        of such Act pertaining to indefinite direct spending authority.
Such report shall also specify the total amount by which legislation 
reported by that committee exceeded its allocation under section 302(a) 
or breached the revenue floor under section 311(a) of such Act for each 
fiscal year during that Congress.''.

SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET PROCESS REFORMS.

    Section 703 of the Congressional Budget Act of 1974 is amended as 
follows:
            (1) In subsection (a), strike ``and'' at the end of 
        paragraph (3), strike the period at the end of paragraph (4) 
        and insert ``; and'', and at the end add the following new 
        paragraph:
            ``(5) evaluating whether existing programs, projects, and 
        activities should be subject to discretionary 
        appropriations.''.
            (2) In subsection (b), strike ``from time to time'' and 
        insert ``during the One Hundred Sixth Congress''.
            (3) Add at the end the following new subsection:
    ``(d) The Committee on the Budget of each House shall establish 
guidelines for subjecting new or expanded programs, projects, and 
activities to annual appropriation and recommend any necessary changes 
in statutory enforcement mechanisms and scoring conventions to 
effectuate such changes.''.

SEC. 425. GAO REPORTS.

      The last sentence of section 404 of the Congressional Budget Act 
of 1974 is amended to read as follows: ``Such report shall be revised 
at least once every five years and shall be transmitted to the chairman 
and ranking minority member of each committee of the House of 
Representatives and the Senate.''.

                Subtitle C--Strengthened Accountability

SEC. 431. TEN-YEAR CBO ESTIMATES.

    (a) CBO Reports on Legislation.--Section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 is amended by striking ``four'' and 
inserting ``nine''.
    (b) Analysis by CBO.--Section 402(1) of the Congressional Budget 
Act of 1974 is amended by striking ``4'' and inserting ``nine''.
    (c) Cost Estimates.--Clause 3(d)(2)(A) of rule XIII of the Rules of 
the House of Representatives is amended by striking ``five'' each place 
it appears and inserting ``10''.

SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE HOUSE OF 
              REPRESENTATIVES.

    Rule XXIII of the Rules of the House of Representatives (relating 
to the establishment of the statutory limit on the public debt) is 
repealed.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

SEC. 501. PURPOSES.

    The purposes of this title are to--
            (1) budget for the long-term costs of Federal insurance 
        programs;
            (2) improve congressional control of those costs; and
            (3) periodically report on long-term budgetary trends.

     Subtitle A--Budgetary Treatment of Federal Insurance Programs

SEC. 511. FEDERAL INSURANCE PROGRAMS.

    (a) In General.--The Congressional Budget Act of 1974 is amended by 
adding after title V the following new title:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``SEC. 601. SHORT TITLE.

    ``This title may be cited as the `Federal Insurance Budgeting Act 
of 1999'.

``SEC. 602. BUDGETARY TREATMENT.

    ``(a) President's Budget.--Beginning with fiscal year 2006, the 
budget of the Government pursuant to section 1105(a) of title 31, 
United States Code, shall be based on the risk-assumed cost of Federal 
insurance programs.
    ``(b) Budget Accounting.--For any Federal insurance program--
            ``(1) the program account shall--
                    ``(A) pay the risk-assumed cost borne by the 
                taxpayer to the financing account, and
                    ``(B) pay actual insurance program administrative 
                costs;
            ``(2) the financing account shall--
                    ``(A) receive premiums and other income,
                    ``(B) pay all claims for insurance and receive all 
                recoveries,
                    ``(C) transfer to the program account on not less 
                than an annual basis amounts necessary to pay insurance 
                program administrative costs;
            ``(3) a negative risk-assumed cost shall be transferred 
        from the financing account to the program account, and shall be 
        transferred from the program account to the general fund; and
            ``(4) all payments by or receipts of the financing accounts 
        shall be treated in the budget as a means of financing.
    ``(c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal year 
2006 and thereafter only to the extent that new budget authority to 
cover their risk-assumed cost is provided in advance in an 
appropriation Act.
    ``(2) An outstanding insurance commitment shall not be modified in 
a manner that increases its risk-assumed cost unless budget authority 
for the additional cost has been provided in advance.
    ``(3) Paragraph (1) shall not apply to Federal insurance programs 
that constitute entitlements.
    ``(d) Reestimates.--The risk-assumed cost for a fiscal year shall 
be reestimated in each subsequent year. Such reestimate can equal zero. 
In the case of a positive reestimate, the amount of the reestimate 
shall be paid from the program account to the financing account. In the 
case of a negative reestimate, the amount of the reestimate shall be 
paid from the financing account to the program account, and shall be 
transferred from the program account to the general fund. Reestimates 
shall be displayed as a distinct and separately identified subaccount 
in the program account.
    ``(e) Administrative Expenses.--All funding for an agency's 
administration of a Federal insurance program shall be displayed as a 
distinct and separately identified subaccount in the program account.

``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR 
              FEDERAL INSURANCE PROGRAMS.

    ``(a) Agency Requirements.--Agencies with responsibility for 
Federal insurance programs shall develop models to estimate their risk-
assumed cost by year through the budget horizon and shall submit those 
models, all relevant data, a justification for critical assumptions, 
and the annual projected risk-assumed costs to OMB with their budget 
requests each year starting with the request for fiscal year 2002. 
Agencies will likewise provide OMB with annual estimates of 
modifications, if any, and reestimates of program costs.
    ``(b) Disclosure.--When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2002, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it or other executive branch entities would use to estimate the 
risk-assumed cost of Federal insurance programs and giving such persons 
an opportunity to submit comments. At the same time, the chairman of 
the Committee on the Budget shall publish a notice for CBO in the 
Federal Register advising interested persons of the availability of 
information describing the models, data (including sources), and 
critical assumptions (including explicit or implicit discount rate 
assumptions) that it would use to estimate the risk-assumed cost of 
Federal insurance programs and giving such interested persons an 
opportunity to submit comments.
    ``(c) Revision.--(1) After consideration of comments pursuant to 
subsection (b), and in consultation with the Committees on the Budget 
of the House of Representatives and the Senate, OMB and CBO shall 
revise the models, data, and major assumptions they would use to 
estimate the risk-assumed cost of Federal insurance programs.
    ``(2) When the President submits a budget of the Government 
pursuant to section 1105(a) of title 31, United States Code, for fiscal 
year 2003, OMB shall publish a notice in the Federal Register advising 
interested persons of the availability of information describing the 
models, data (including sources), and critical assumptions (including 
explicit or implicit discount rate assumptions) that it or other 
executive branch entities used to estimate the risk-assumed cost of 
Federal insurance programs.
    ``(d) Display.--
            ``(1) In general.--For fiscal years 2003, 2004, and 2005 
        the budget submissions of the President pursuant to section 
        1105(a) of title 31, United States Code, and CBO's reports on 
        the economic and budget outlook pursuant to section 202(e)(1) 
        and the President's budgets, shall for display purposes only, 
        estimate the risk-assumed cost of existing or proposed Federal 
        insurance programs.
            ``(2) OMB.--The display in the budget submissions of the 
        President for fiscal years 2003, 2004, and 2005 shall include--
                    ``(A) a presentation for each Federal insurance 
                program in budget-account level detail of estimates of 
                risk-assumed cost;
                    ``(B) a summary table of the risk-assumed costs of 
                Federal insurance programs; and
                    ``(C) an alternate summary table of budget 
                functions and aggregates using risk-assumed rather than 
                cash-based cost estimates for Federal insurance 
                programs.
            ``(3) CBO.--In the second session of the 107th Congress and 
        the 108th Congress, CBO shall include in its estimates under 
        section 308, for display purposes only, the risk-assumed cost 
        of existing Federal insurance programs, or legislation that 
        CBO, in consultation with the Committees on the Budget of the 
        House of Representatives and the Senate, determines would 
        create a new Federal insurance program.
    ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months 
after the budget submission of the President pursuant to section 
1105(a) of title 31, United States Code, for fiscal year 2005, OMB, 
CBO, and GAO shall each submit to the Committees on the Budget of the 
House of Representatives and the Senate a report that evaluates the 
advisability and appropriate implementation of this title.
    ``(2) Each report made pursuant to paragraph (1) shall address the 
following:
            ``(A) The adequacy of risk-assumed estimation models used 
        and alternative modeling methods.
            ``(B) The availability and reliability of data or 
        information necessary to carry out this title.
            ``(C) The appropriateness of the explicit or implicit 
        discount rate used in the various risk-assumed estimation 
        models.
            ``(D) The advisability of specifying a statutory discount 
        rate (such as the Treasury rate) for use in risk-assumed 
        estimation models.
            ``(E) The ability of OMB, CBO, or GAO, as applicable, to 
        secure any data or information directly from any Federal agency 
        necessary to enable it to carry out this title.
            ``(F) The relationship between risk-assumed accrual 
        budgeting for Federal insurance programs and the specific 
        requirements of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            ``(G) Whether Federal budgeting is improved by the 
        inclusion of risk-assumed cost estimates for Federal insurance 
        programs.
            ``(H) The advisability of including each of the programs 
        currently estimated on a risk-assumed cost basis in the Federal 
        budget on that basis.

``SEC. 604. DEFINITIONS.

    ``For purposes of this title:
            ``(1) The term `Federal insurance program' means a program 
        that makes insurance commitments and includes the list of such 
        programs included in the joint explanatory statement of 
        managers accompanying the conference report on the 
        Comprehensive Budget Process Reform Act of 1999.
            ``(2) The term `insurance commitment' means an agreement in 
        advance by a Federal agency to indemnify a nonfederal entity 
        against specified losses. This term does not include loan 
        guarantees as defined in title V or benefit programs such as 
        social security, medicare, and similar existing social 
        insurance programs.
            ``(3)(A) The term `risk-assumed cost' means the net present 
        value of the estimated cash flows to and from the Government 
        resulting from an insurance commitment or modification thereof.
            ``(B) The cash flows associated with an insurance 
        commitment include--
                    ``(i) expected claims payments inherent in the 
                Government's commitment;
                    ``(ii) net premiums (expected premium collections 
                received from or on behalf of the insured less expected 
                administrative expenses);
                    ``(iii) expected recoveries; and
                    ``(iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the insured 
                of any option included in the insurance commitment.
            ``(C) The cost of a modification is the difference between 
        the current estimate of the net present value of the remaining 
        cash flows under the terms of the insurance commitment, and the 
        current estimate of the net present value of the remaining cash 
        flows under the terms of the insurance commitment as modified.
            ``(D) The cost of a reestimate is the difference between 
        the net present value of the amount currently required by the 
        financing account to pay estimated claims and other 
        expenditures and the amount currently available in the 
        financing account. The cost of a reestimate shall be accounted 
        for in the current year in the budget of the Government 
        pursuant to section 1105(a) of title 31, United States Code.
            ``(E) For purposes of this definition, expected 
        administrative expenses shall be construed as the amount 
        estimated to be necessary for the proper administration of the 
        insurance program. This amount may differ from amounts actually 
        appropriated or otherwise made available for the administration 
        of the program.
            ``(4) The term `program account' means the budget account 
        for the risk-assumed cost, and for paying all costs of 
        administering the insurance program, and is the account from 
        which the risk-assumed cost is disbursed to the financing 
        account.
            ``(5) The term `financing account' means the nonbudget 
        account that is associated with each program account which 
        receives payments from or makes payments to the program 
        account, receives premiums and other payments from the public, 
        pays insurance claims, and holds balances.
            ``(6) The term `modification' means any Government action 
        that alters the risk-assumed cost of an existing insurance 
        commitment from the current estimate of cash flows. This 
        includes any action resulting from new legislation, or from the 
        exercise of administrative discretion under existing law, that 
        directly or indirectly alters the estimated cost of existing 
insurance commitments.
            ``(7) The term `model' means any actuarial, financial, 
        econometric, probabilistic, or other methodology used to 
        estimate the expected frequency and magnitude of loss-producing 
        events, expected premiums or collections from or on behalf of 
        the insured, expected recoveries, and administrative expenses.
            ``(8) The term `current' has the same meaning as in section 
        250(c)(9) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
            ``(9) The term `OMB' means the Director of the Office of 
        Management and Budget.
            ``(10) The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(11) The term `GAO' means the Comptroller General of the 
        United States.

``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST 
              ACCOUNT.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated $600,000 for each of fiscal years 2000 through 2005 to the 
Director of the Office of Management and Budget and each agency 
responsible for administering a Federal program to carry out this 
title.
    ``(b) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend to, or 
pay the insurance 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 above. The authorities described above shall not 
be construed to supersede or override the authority of the head of a 
Federal agency to administer and operate an insurance program. All the 
transactions provided in this subsection shall be subject to the 
provisions of subchapter II of chapter 15 of title 31, United States 
Code. 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.
    ``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost 
of Insurance Commitments at Transition Date.--(1) A financing account 
is established on September 30, 2005, for each Federal insurance 
program.
    ``(2) There is appropriated to each financing account the amount of 
the risk-assumed cost of Federal insurance commitments outstanding for 
that program as of the close of September 30, 2005.
    ``(3) These financing accounts shall be used in implementing the 
budget accounting required by this title.

``SEC. 606. EFFECTIVE DATE.

    ``(a) In General.--This title shall take effect immediately and 
shall expire on September 30, 2007.
    ``(b) Special Rule.--If this title is not reauthorized by September 
30, 2007, then the accounting structure and budgetary treatment of 
Federal insurance programs shall revert to the accounting structure and 
budgetary treatment in effect immediately before the date of enactment 
of this title.''.
    (b)  Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 507 the 
following new items:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for 
                            Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost 
                            account.
``Sec. 606. Effective date.''.

           Subtitle B--Reports on Long-Term Budgetary Trends

SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.

    (a) The President's Budget.--Section 1105(a) of title 31, United 
States Code (as amended by section 404), is further amended by adding 
at the end the following new paragraph:
            ``(34) an analysis based upon current law and an analysis 
        based upon the policy assumptions underlying the budget 
        submission for every fifth year of the period of 75 fiscal 
        years beginning with such fiscal year, of the estimated levels 
        of total new budget authority and total budget outlays, 
        estimated revenues, estimated surpluses and deficits, and, for 
        social security, medicare, medicaid, and all other direct 
        spending, estimated levels of total new budget authority and 
        total budget outlays; and a specification of its underlying 
        assumptions and a sensitivity analysis of factors that have a 
        significant effect on the projections made in each analysis; 
        and a comparison of the effects of each of the two analyses on 
        the economy, including such factors as inflation, foreign 
        investment, interest rates, and economic growth.''.
    (b) CBO Reports.--Section 202(e)(1) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentences: 
``Such report shall also include an analysis based upon current law for 
every fifth year of the period of 75 fiscal years beginning with such 
fiscal year, of the estimated levels of total new budget authority and 
total budget outlays, estimated revenues, estimated surpluses and 
deficits, and, for social security, medicare, medicaid, and all other 
direct spending, estimated levels of total new budget authority and 
total budget outlays. The report described in the preceding sentence 
shall also specify its underlying assumptions and set forth a 
sensitivity analysis of factors that have a significant effect on the 
projections made in the report.''.

              TITLE VI--BASELINES, BYRD RULE, AND LOCK-BOX

SEC. 601. PURPOSE.

The purposes of this title are to--
            (1) require budgetary comparisons to prior year levels;
            (2) restrict the application of the Byrd rule to measures 
        other than conference reports; and
            (3) establish a procedure to allow savings from spending 
        cuts in appropriation measures to be locked-in to increase the 
        surplus or reduce the deficit.

                        Subtitle A--The Baseline

SEC. 611. THE PRESIDENT'S BUDGET.

    (a) Paragraph (5) of section 1105(a) of title 31, United States 
Code, is amended to read as follows:
            ``(5) except as provided in subsection (b) of this section, 
        estimated expenditures and appropriations for the current year 
        and estimated expenditures and proposed appropriations the 
President decides are necessary to support the Government in the fiscal 
year for which the budget is submitted and the 4 fiscal years following 
that year, and, except for detailed budget estimates, the percentage 
change from the current year to the fiscal year for which the budget is 
submitted for estimated expenditures and for appropriations.''.
    (b) Section 1105(a)(6) of title 31, United States Code, is amended 
to read as follows:
            ``(6) estimated receipts of the Government in the current 
        year and the fiscal year for which the budget is submitted and 
        the 4 fiscal years after that year under--
                    ``(A) laws in effect when the budget is submitted; 
                and
                    ``(B) proposals in the budget to increase revenues,
        and the percentage change (in the case of each category 
        referred to in subparagraphs (A) and (B)) between the current 
        year and the fiscal year for which the budget is submitted and 
        between the current year and each of the 9 fiscal years after 
        the fiscal year for which the budget is submitted.''.
    (c) Section 1105(a)(12) of title 31, United States Code, is amended 
to read as follows:
            ``(12) for each proposal in the budget for legislation that 
        would establish or expand a Government activity or function, a 
        table showing--
                    ``(A) the amount proposed in the budget for 
                appropriation and for expenditure because of the 
                proposal in the fiscal year for which the budget is 
                submitted;
                    ``(B) the estimated appropriation required because 
                of the proposal for each of the 4 fiscal years after 
                that year that the proposal will be in effect; and
                    ``(C) the estimated amount for the same activity or 
                function, if any, in the current fiscal year,
        and, except for detailed budget estimates, the percentage 
        change (in the case of each category referred to in 
        subparagraphs (A), (B), and (C)) between the current year and 
        the fiscal year for which the budget is submitted.''.
    (d) Section 1105(a)(18) of title 31, United States Code, is amended 
by inserting ``new budget authority and'' before ``budget outlays''.
    (e) Section 1105(a) of title 31, United States Code, (as amended by 
sections 412(b) and 521(a)) is further amended by adding at the end the 
following new paragraphs:
            ``(35) a comparison of levels of estimated expenditures and 
        proposed appropriations for each function and subfunction in 
        the current fiscal year and the fiscal year for which the 
        budget is submitted, along with the proposed increase or 
        decrease of spending in percentage terms for each function and 
        subfunction.
            ``(36) a table on sources of growth in total direct 
        spending under current law and as proposed in this budget 
        submission for the budget year and the ensuing 9 fiscal years, 
        which shall include changes in outlays attributable to the 
        following: cost-of-living adjustments; changes in the number of 
        program recipients; increases in medical care prices, 
        utilization and intensity of medical care; and residual 
        factors.''.
    (f) Section 1109(a) of title 31, United States Code, is amended by 
inserting after the first sentence the following new sentence: ``For 
discretionary spending, these estimates shall assume the levels set 
forth in the discretionary spending limits under section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as adjusted, 
for the appropriate fiscal years (and if no such limits are in effect, 
these estimates shall assume the adjusted levels for the most recent 
fiscal year for which such levels were in effect).''.

SEC. 612. THE CONGRESSIONAL BUDGET.

    Section 301(e) of the Congressional Budget Act of 1974 (as amended 
by section 103) is further amended--
            (1) in paragraph (1), by inserting at the end the 
        following: ``The basis of deliberations in developing such 
        joint resolution shall be the estimated budgetary levels for 
        the preceding fiscal year. Any budgetary levels pending before 
        the committee and the text of the joint resolution shall be 
        accompanied by a document comparing such levels or such text to 
        the estimated levels of the prior fiscal year. Any amendment 
        offered in the committee that changes a budgetary level and is 
        based upon a specific policy assumption for a program, project, 
        or activity shall be accompanied by a document indicating the 
        estimated amount for such program, project, or activity in the 
        current year.''; and
            (2) in paragraph (2), by striking ``and'' at the end of 
        subparagraph (H) (as redesignated), by striking the period and 
        inserting ``; and'' at the end of subparagraph (I) (as 
        redesignated), and by adding at the end the following new 
        subparagraph:
                    ``(J) a comparison of levels for the current fiscal 
                year with proposed spending and revenue levels for the 
                subsequent fiscal years along with the proposed 
                increase or decrease of spending in percentage terms 
                for each function.''.

SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.

    (a) The first sentence of section 202(e)(1) of the Congressional 
Budget Act of 1974 is amended by inserting ``compared to comparable 
levels for the current year'' before the comma at the end of 
subparagraph (A) and before the comma at the end of subparagraph (B).
    (b) Section 202(e)(1) of the Congressional Budget Act of 1974 is 
amended by inserting after the first sentence the following new 
sentence: ``Such report shall also include a table on sources of 
spending growth in total direct spending for the budget year and the 
ensuing 4 fiscal years, which shall include changes in outlays 
attributable to the following: cost-of-living adjustments; changes in 
the number of program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual factors.''.
    (c) Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is 
amended by inserting ``and shall include a comparison of those levels 
to comparable levels for the current fiscal year'' before ``if timely 
submitted''.

SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY SPENDING.

    For purposes of chapter 11 of title 31 of the United States Code, 
or the Congressional Budget Act of 1974, unless otherwise expressly 
provided, in making budgetary projections for years for which there are 
no discretionary spending limits, the Director of the Office of 
Management and Budget and the Director of the Congressional Budget 
Office shall assume discretionary spending levels at the levels for the 
last fiscal year for which such levels were in effect.

                       Subtitle B--The Byrd Rule

SEC. 621. LIMITATION ON BYRD RULE.

    (a) Protection of Conference Reports.--Section 313 of the 
Congressional Budget Act of 1974 is amended--
            (1) in subsection (c), by striking ``and again upon the 
        submission of a conference report on such a reconciliation bill 
        or resolution,'';
            (2) by striking subsection (d);
            (3) by redesignating subsection (e) as subsection (d); and
            (4) in subsection (e), as redesignated--
                    (A) by striking ``, motion, or conference report'' 
                the first place it appears and inserting ``, or 
                motion''; and
                    (B) by striking ``, motion, or conference report'' 
                the second and third places it appears and inserting 
                ``or motion''.
    (b) Conforming Amendment.--The first sentence of section 312(e) of 
the Congressional Budget Act of 1974 is amended by inserting ``, except 
for section 313,'' after ``Act''.

              Subtitle C--Spending Accountability Lock-box

SEC. 631. SHORT TITLE.

    This subtitle may be cited as the ``Spending Accountability Lock-
box Act of 1999''.

SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

    (a) Establishment of Ledger.--Title III of the Congressional Budget 
Act of 1974 (as amended by sections 104(c) and 206(a)) is further 
amended by adding after section 317 the following new section:

               ``spending accountability lock-box ledger

    ``Sec. 318. (a) Establishment of Ledger.--The chairman of the 
Committee on the Budget of the House of Representatives and the 
chairman on the Committee on the Budget of the Senate shall each 
maintain a ledger to be known as the `Spending Accountability Lock-box 
Ledger'. The Ledger shall be divided into entries corresponding to the 
subcommittees of the Committees on Appropriations. Each entry shall 
consist of three components: the `House Lock-box Balance'; the `Senate 
Lock-box Balance'; and the `Joint House-Senate Lock-box Balance'.
    ``(b) Components of Ledger.--Each component in an entry shall 
consist only of amounts credited to it under subsection (c). No entry 
of a negative amount shall be made.
    ``(c) Credit of Amounts to Ledger.--(1) In the House of 
Representatives or the Senate, whenever a Member offers an amendment to 
an appropriation bill to reduce new budget authority in any account, 
that Member may state the portion of such reduction that shall be--
            ``(A) credited to the House or Senate Lock-box Balance, as 
        applicable; or
            ``(B) used to offset an increase in new budget authority in 
        any other account;
            ``(C) allowed to remain within the applicable section 
        302(b) suballocation.
If no such statement is made, the amount of reduction in new budget 
authority resulting from the amendment shall be credited to the House 
or Senate Lock-box Balance, as applicable, if the amendment is agreed 
to.
    ``(2)(A) Except as provided by subparagraph (B), the chairmen of 
the Committees on the Budget shall, upon the engrossment of any 
appropriation bill by the House of Representatives and upon the 
engrossment of Senate amendments to that bill, credit to the applicable 
entry balance of that House amounts of new budget authority and outlays 
equal to the net amounts of reductions in new budget authority and in 
outlays resulting from amendments agreed to by that House to that bill.
    ``(B) When computing the net amounts of reductions in new budget 
authority and in outlays resulting from amendments agreed to by the 
House of Representatives or the Senate to an appropriation bill, the 
chairmen of the Committees on the Budget shall only count those 
portions of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to the House 
or Senate Lock-box Balance, as applicable, or that fall within the last 
sentence of paragraph (1).
    ``(3) The chairmen of the Committees on the Budget shall, upon the 
engrossment of Senate amendments to any appropriation bill, credit to 
the applicable Joint House-Senate Lock-box Balance the amounts of new 
budget authority and outlays equal to--
            ``(A) an amount equal to one-half of the sum of (i) the 
        amount of new budget authority in the House Lock-box Balance 
        plus (ii) the amount of new budget authority in the Senate 
        Lock-box Balance for that subcommittee; and
            ``(B) an amount equal to one-half of the sum of (i) the 
        amount of outlays in the House Lock-box Balance plus (ii) the 
        amount of outlays in the Senate Lock-box Balance for that 
        subcommittee.
    ``(4) Calculation of Lock-Box Savings in Senate.--For purposes of 
calculating under this section the net amounts of reductions in new 
budget authority and in outlays resulting from amendments agreed to by 
the Senate on an appropriation bill, the amendments reported to the 
Senate by its Committee on Appropriations shall be considered to be 
part of the original text of the bill.
    ``(d) Definition.--As used in this section, the term `appropriation 
bill' means any general or special appropriation bill, and any bill or 
joint resolution making supplemental, deficiency, or continuing 
appropriations through the end of a fiscal year.
    ``(e) Tally During House Consideration.--The chairman of the 
Committee on the Budget of the House of Representatives shall maintain 
a running tally of the amendments adopted reflecting increases and 
decreases of budget authority in the bill as reported. This tally shall 
be available to Members in the House of Representatives during 
consideration of any appropriations bill by the House.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 317 the 
following new item:

``Sec. 318. Spending accountability lock-box ledger.''.

SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(A) ALLOCATIONS AND SECTION 
              302(B) SUBALLOCATIONS.

    (a) Allocations.--Section 302(a) of the Congressional Budget Act of 
1974 (as amended by section 422) is further amended by adding at the 
end the following new paragraph:
            ``(6) Adjustment of allocations.--Upon the engrossment of 
        Senate amendments to any appropriation bill (as defined in 
        section 318(d)) for a fiscal year, the amounts allocated under 
        paragraph (1) to the Committee on Appropriations of each House 
        upon the adoption of the most recent joint resolution on the 
        budget for that fiscal year shall be adjusted downward by the 
        amounts credited to the applicable Joint House-Senate Lock-box 
        Balance under section 318(c)(2). The revised levels of new 
        budget authority and outlays shall be submitted to each House 
        by the chairman of the Committee on the Budget of that House 
        and shall be printed in the Congressional Record.''.
    (b) Suballocations.--Section 302(b) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentence: 
``Whenever an adjustment is made under subsection (a)(6) to an 
allocation under that subsection, the Committee on Appropriations of 
each House shall make downward adjustments in the most recent 
suballocations of new budget authority and outlays under this 
subparagraph to the appropriate subcommittees of that committee in the 
total amounts of those adjustments under section 318(c)(2). The revised 
suballocations shall be submitted to each House by the chairman of the 
Committee on Appropriations of that House and shall be printed in the 
Congressional Record.''.

SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

    Section 308(b)(1) of the Congressional Budget Act of 1974 is 
amended by adding at the end the following new sentence: ``Such reports 
shall also include an up-to-date tabulation of the amounts contained in 
the ledger and each entry established by section 318(a).''.

SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING LIMITS.

    The discretionary spending limits for new budget authority and 
outlays for any fiscal year set forth in section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, shall be reduced by 
the amounts set forth in the final regular appropriation bill for that 
fiscal year or joint resolution making continuing appropriations 
through the end of that fiscal year. Those amounts shall be the sums of 
the Joint House-Senate Lock-box Balances for that fiscal year, as 
calculated under section 302(a)(6) of the Congressional Budget Act of 
1974. That bill or joint resolution shall contain the following 
statement of law: ``As required by section 635 of the Spending 
Accountability Lock-box Act of 1999, for fiscal year [insert 
appropriate fiscal year] and each outyear, the adjusted discretionary 
spending limit for new budget authority is reduced by $ [insert 
appropriate amount of reduction] and the adjusted discretionary limit 
for outlays is reduced by $ [insert appropriate amount of reduction] 
for the fiscal year and each outyear.''. Section 306 shall not apply to 
any bill or joint resolution because of such statement. This adjustment 
shall be reflected in reports under sections 254(f) and 254(g) of the 
Balanced Budget and Emergency Deficit Control Act of 1985.

              Subtitle D--Automatic Continuing Resolution

SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

    (a) Amendment to Title 31.--Chapter 13 of title 31, United States 
Code, is amended by inserting after section 1310 the following new 
section:
``Sec. 1311. Continuing appropriations
    ``(a)(1) If any regular appropriation bill for a fiscal year does 
not become law prior to the beginning of such fiscal year and a joint 
resolution making continuing appropriations (other than pursuant to 
this subsection) is not in effect, there is appropriated, out of any 
moneys in the Treasury not otherwise appropriated, and out of 
applicable corporate or other revenues, receipts, and funds, such sums 
as may be necessary to continue any program, project, or activity for 
which funds were provided in the preceding fiscal year--
            ``(A) in the corresponding regular appropriation Act for 
        such preceding fiscal year; or
            ``(B) if the corresponding regular appropriation bill for 
        such preceding fiscal year did not become law, then in a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year.
    ``(2)(A) Except as provided by subparagraphs (B), (C), and (D), 
appropriations and funds made available, and authority granted, for a 
program, project, or activity for any fiscal year pursuant to this 
section shall be at a rate of operations not in excess of the rate of 
operations provided for in the regular appropriation Act providing for 
such program, project, or activity for the preceding fiscal year, or in 
the absence of such an Act, the rate of operations provided for such 
program, project, or activity pursuant to a joint resolution making 
continuing appropriations for such preceding fiscal year.
    ``(B) The applicable rate of operations for a program, project, or 
activity for any fiscal year pursuant to this section shall exclude 
amounts--
            ``(i) for which any adjustment was made under section 
        251(b)(2)(A) or section 252(e) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 before the date of 
        enactment of this section;
            ``(ii) provided for emergencies for which an exemption from 
        section 251 or 252 of such Act is granted under section 317(c) 
        of the Congressional Budget Act of 1974; or
            ``(iii) for which any adjustment is made under section 
        251(b)(2) (C) or (D) of such Act.
    ``(C) The applicable rate of operations for a program, project, or 
activity for any fiscal year pursuant to this section shall include 
amounts provided and rescinded for such program, project, or activity 
in any supplemental or special appropriations Act and in any rescission 
bill for that year that is enacted into law.
    ``(D) The applicable rate of operations for a program, project, or 
activity for any fiscal year pursuant to this section shall be reduced 
by the amount of budgetary resources cancelled in any such program, 
project, or activity resulting from the prior year's sequestration 
under section 251 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 as published in OMB's final sequestration report for the 
prior fiscal year.
    ``(3) Appropriations and funds made available, and authority 
granted, for any fiscal year pursuant to this section for a program, 
project, or activity shall be available for the period beginning with 
the first day of a lapse in appropriations and ending with the earlier 
of--
            ``(A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law (whether or 
        not such law provides for such program, project, or activity) 
        or a continuing resolution making appropriations becomes law, 
        as the case may be, or
            ``(B) the last day of such fiscal year.
    ``(b) An appropriation or funds made available, or authority 
granted, for a program, project, or activity for any fiscal year 
pursuant to this section shall be subject to the terms and conditions 
imposed with respect to the appropriation made or funds made available 
for the preceding fiscal year, or authority granted for such program, 
project, or activity under current law.
    ``(c) Appropriations and funds made available, and authority 
granted, for any program, project, or activity for any fiscal year 
pursuant to this section shall cover all obligations or expenditures 
incurred for such program, project, or activity during the portion of 
such fiscal year for which this section applies to such program, 
project, or activity.
    ``(d) Expenditures made for a program, project, or activity for any 
fiscal year pursuant to this section shall be charged to the applicable 
appropriation, fund, or authorization whenever a regular appropriation 
bill or a joint resolution making continuing appropriations until the 
end of a fiscal year providing for such program, project, or activity 
for such period becomes law.
    ``(e) This section shall not apply to a program, project, or 
activity during a fiscal year if any other provision of law (other than 
an authorization of appropriations)--
            ``(1) makes an appropriation, makes funds available, or 
        grants authority for such program, project, or activity to 
        continue for such period, or
            ``(2) specifically provides that no appropriation shall be 
        made, no funds shall be made available, or no authority shall 
        be granted for such program, project, or activity to continue 
        for such period; or
    ``(f) For purposes of this section, the term `regular appropriation 
bill' means any annual appropriation bill making appropriations, 
otherwise making funds available, or granting authority, for any of the 
following categories of programs, projects, and activities:
            ``(1) Agriculture, rural development, and related agencies 
        programs.
            ``(2) The Departments of Commerce, Justice, and State, the 
        judiciary, and related agencies.
            ``(3) The Department of Defense.
            ``(4) The government of the District of Columbia and other 
        activities chargeable in whole or in part against the revenues 
        of the District.
            ``(5) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(6) The Department of Housing and Urban Development, and 
        sundry independent agencies, boards, commissions, corporations, 
        and offices.
            ``(7) Energy and water development.
            ``(8) Foreign assistance and related programs.
            ``(9) The Department of the Interior and related agencies.
            ``(10) Military construction.
            ``(11) The Department of Transportation and related 
        agencies.
            ``(12) The Treasury Department, the U.S. Postal Service, 
        the Executive Office of the President, and certain independent 
        agencies.
            ``(13) The legislative branch.''.
    (b) Conforming Amendment.--Section 202(e)(3) of the Congressional 
Budget Act of 1974 is amended by inserting ``and on or before September 
30'' before ``of each year''.
    (c) Chapter Analysis.--The analysis of chapter 13 of title 31, 
United States Code, is amended by inserting after the item relating to 
section 1310 the following new item:

``1311. Continuing appropriations.''.
    (d) Effect of Amendments.--Nothing in the amendments made by this 
section shall be construed to affect Government obligations mandated by 
other law, including obligations with respect to social security, 
medicare, and medicaid.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET SURPLUS.

    (a) Section 252(a) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended to read as follows:
    ``(a) Purpose.--The purpose of this section is to trigger an 
offsetting sequestration in the amount by which any excess of decreases 
in receipts and increases in direct spending over increases in receipts 
and decreases in direct spending, caused by all direct spending and 
receipts legislation enacted prior to October 1, 2002, exceeds 
estimates of the on-budget surplus.''.
    (b) Timing and Calculation of Sequestration.--Section 252(b) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended to 
read as follows:
    ``(b) Sequestration.--
            ``(1) Timing.--Not later than 15 calendar days after the 
        date Congress adjourns to end a session and on the same day as 
        a sequestration (if any) under section 251, there shall be a 
        sequestration to offset an amount equal to--
                    ``(A) any excess of decreases in receipts and 
                increases in direct spending over increases in receipts 
                and decreases in direct spending for legislation 
                enacted prior to October 1, 2002; minus
                    ``(B) the estimated on-budget surplus (which shall 
                not be less than zero),
        as calculated under paragraph (2).
            ``(2) Calculation of sequestration.--OMB shall calculate 
        the amount of the sequestration by adding--
                    ``(A) all OMB estimates for the budget year of 
                direct spending and receipts legislation transmitted 
                under subsection (d) for legislation enacted prior to 
                October 1, 2002;
                    ``(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, if any, as published in OMB's final 
                sequestration report for that prior year; and
                    ``(C) all OMB estimates for the current year that 
                were not reflected in the final OMB sequestration 
                report for that year; and
        then by subtracting from such sum the OMB estimate for the 
        budget year of the on-budget surplus (if any) as set forth in 
        the OMB final sequestration report increased by the amount of 
        budgetary resources cancelled in any such program, project, or 
        activity resulting from a sequestration for the budget year on 
        the same day under section 251 as published in OMB's final 
        sequestration report.''.
    (c) Preview Reports.--Section 254(c)(3) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by redesignating 
subparagraph (C) as subparagraph (D) and by adding after subparagraph 
(B) the following new subparagraph:
                    ``(C)(i) Mandatory.--In projecting the on-budget 
                surplus (if any) for the budget year, direct spending 
                and receipts shall be calculated consistent with the 
                assumptions under section 257(b) but shall exclude all 
                estimates of direct spending and receipts legislation 
                for such year enacted after the date of enactment of 
                this subparagraph (as estimated by OMB when such 
                legislation was originally enacted).
                    ``(ii) Discretionary.--Except as provided by the 
                preceding sentence, the following assumptions shall 
                apply to the calculation of such estimated surplus:
                            ``(I) For programs, projects, and 
                        activities for which a regular appropriation 
                        Act or a joint resolution (other than pursuant 
                        to section 1311 of title 31, United States 
                        Code) continuing appropriations through the end 
                        of the budget year is enacted, budgetary 
                        resources other than unobligated balances shall 
                        be at the level provided by that Act with the 
                        following adjustments:
                                    ``(aa) Include amounts of budget 
                                authority provided and rescinded for 
                                such year in any supplemental or 
                                special appropriation Act or rescission 
                                bill that is enacted into law.
                                    ``(bb) Reduce the level by the 
                                amount of budgetary resources canceled 
                                in any such program, project, or 
                                activity by a sequestration under 
                                section 251 as published in OMB's final 
                                sequestration report for such year.
                        Substantive changes to or restrictions on 
                        entitlement law or other mandatory spending law 
                        in an appropriation Act shall be counted in 
                        determining the level of direct spending and 
                        receipts for purposes of calculating the on-
                        budget surplus under this section.
                            ``(II) For programs, projects, and 
                        activities for which a regular appropriation 
                        Act or a joint resolution (other than pursuant 
                        to section 1311 of title 31, United States 
                        Code) continuing appropriations through the end 
                        of the budget year is not enacted, budgetary 
                        resources other than unobligated balances shall 
                        be at the level provided for the current year 
                        in regular appropriation Acts or a joint 
                        resolution (other than pursuant to section 1311 
                        of title 31, United States Code) continuing 
                        appropriations through the end of the current 
                        year with the following adjustments:
                                    ``(aa) Include amounts of budget 
                                authority provided and rescinded for 
                                such year in any supplemental or 
                                special appropriation Act or rescission 
                                bill that is enacted into law.
                                    ``(bb) Reduce the level by the 
                                amount of budgetary resources canceled 
                                in any such program, project, or 
                                activity by a sequestration under 
                                section 251 as published in OMB's final 
                                sequestration report for such year.
                        Substantive changes to or restrictions on 
                        entitlement law or other mandatory spending law 
                        in an appropriation Act shall be counted in 
                        determining the level of direct spending and 
                        receipts for purposes of calculating the on-
                        budget surplus under this section. After making 
                        such adjustments, further adjust such amount 
                        using the assumptions set forth in section 
                        257(c) (1)-(5).''.
    (d) Definition of On-Budget Surplus.--Section 250(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new paragraph:
            ``(20) The term `on-budget surplus' means, with respect to 
        a fiscal year, the amount by which receipts exceed outlays for 
        all spending and receipt accounts of the United States 
        Government that are designated as on-budget. Such term does not 
        include outlays and receipts of the Federal Old-Age and 
        Survivors Insurance Trust Fund, the Federal Disability 
        Insurance Trust Fund, or any other off-budget entity.''.
    (e) Expedited Reconciliation Process.--Section 258C of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
            (1) The side heading of subsection (a) is amended by 
        inserting ``or in the House of Representatives'' after 
        ``Senate''.
            (2) In paragraphs (1), (2), (3), and (4) of subsection (a), 
        insert ``or House'' after ``Senate'' each place it appears.
            (3) In subsection (a)(7), strike ``For'' and insert ``In 
        the Senate, for''.
            (4) In subsection (b)(1), insert ``or House'' after 
        ``Senate''.
            (5) In the side heading of subsection (b)(4), insert 
        ``other'' after ``the''.
            (6) In subsection (b)(4), strike ``in the Senate from the 
        House'' and insert ``in the Senate or House of Representatives 
        from the other House'', strike ``Senate'' the second place it 
        appears and insert ``Senate or House of Representatives, as the 
        case may be,'', and strike ``Senate'' the third place it 
        appears and insert ``in the applicable House''.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Comprehensive 
Budget Process Reform Act of 1999''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Effective date.
Sec. 4. Declaration of purposes for the Budget Act.
                   TITLE I--BUDGET WITH FORCE OF LAW

Sec. 101. Purposes.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered; 
                            fall-back procedures if President vetoes 
                            joint budget resolution.
Sec. 105. Conforming amendments to effectuate joint resolutions on the 
                            budget.
                 TITLE II--RESERVE FUND FOR EMERGENCIES

Sec. 201. Purpose.
Sec. 202. Repeal of adjustments for emergencies.
Sec. 203. OMB emergency criteria.
Sec. 204. Development of guidelines for application of emergency 
                            definition.
Sec. 205. Reserve fund for emergencies in President's budget.
Sec. 206. Adjustments and reserve fund for emergencies in joint budget 
                            resolutions.
Sec. 207. Up-to-date tabulations.
Sec. 208. Prohibition on amendments to emergency reserve fund.
Sec. 209. Effective date.
             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes.
  Subtitle A--Application of Points of Order to Unreported Legislation

Sec. 311. Application of Budget Act points of order to unreported 
                            legislation.
             Subtitle B--Compliance with Budget Resolution

Sec. 321. Budget compliance statements.
            Subtitle C--Justification for Budget Act Waivers

Sec. 331. Justification for Budget Act waivers in the House of 
                            Representatives.
             Subtitle D--CBO Scoring of Conference Reports

Sec. 341. CBO scoring of conference reports.
             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes.
               Subtitle A--Limitations on Direct Spending

Sec. 411. Fixed-year authorizations required for new programs.
Sec. 412. Amendments to subject new direct spending to annual 
                            appropriations.
     Subtitle B--Enhanced Congressional Oversight Responsibilities

Sec. 421. Ten-year congressional review requirement of permanent budget 
                            authority.
Sec. 422. Justifications of direct spending.
Sec. 423. Survey of activity reports of House committees.
Sec. 424. Continuing study of additional budget process reforms.
Sec. 425. GAO reports.
                Subtitle C--Strengthened Accountability

Sec. 431. Ten-year CBO estimates.
Sec. 432. Repeal of rule XXIII of the Rules of the House of 
                            Representatives.
    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

Sec. 501. Purposes.
     Subtitle A--Budgetary Treatment of Federal Insurance Programs

Sec. 511. Federal insurance programs.
           Subtitle B--Reports on Long-Term Budgetary Trends

Sec. 521. Reports on long-term budgetary trends.
   TITLE VI--BASELINE, BYRD RULE, LOCK-BOX, AND AUTOMATIC CONTINUING 
                               RESOLUTION

Sec. 601. Purpose.
                        Subtitle A--The Baseline

Sec. 611. The President's budget.
Sec. 612. The congressional budget.
Sec. 613. Congressional Budget Office reports to committees.
Sec. 614. Outyear assumptions for discretionary spending.
                       Subtitle B--The Byrd Rule

Sec. 621. Limitation on Byrd rule.
              Subtitle C--Spending Accountability Lock-Box

Sec. 631. Short title.
Sec. 632. Spending accountability lock-box ledger.
Sec. 633. Downward adjustment of section 302(a) allocations and section 
                            302(b) suballocations.
Sec. 634. Periodic reporting of ledger statements.
Sec. 635. Downward adjustment of discretionary spending limits.
              Subtitle D--Automatic Continuing Resolution

Sec. 641. Automatic continuing resolution.
              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus.

SEC. 2. PURPOSE.

    The purposes of this Act are to--
            (1) give the budget the force of law;
            (2) budget for emergencies;
            (3) display the unfunded liabilities of Federal insurance 
        programs;
            (4) strengthen enforcement of budgetary decisions;
            (5) increase accountability for Federal spending;
            (6) mitigate the bias in the budget process toward higher 
        spending; and
            (7) modify paygo requirements when there is an on-budget 
        surplus.

SEC. 3. EFFECTIVE DATE.

    Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall become effective on the date of 
enactment of this Act and shall apply with respect to fiscal years 
beginning after September 30, 2000.

SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET ACT.

    Paragraphs (1) and (2) of section 2 of the Congressional Budget and 
Impoundment Control Act of 1974 are amended to read as follows:
            ``(1) to assure effective control over the budgetary 
        process;
            ``(2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures by the 
        Congress and the President;''.

                   TITLE I--BUDGET WITH FORCE OF LAW

SEC. 101. PURPOSES.

    The purposes of this title are to--
            (1) focus initial budgetary deliberations on aggregate 
        levels of Federal spending and taxation;
            (2) encourage cooperation between Congress and the 
        President in developing overall budgetary priorities; and
            (3) reach budgetary decisions early in the legislative 
        cycle.

SEC. 102. THE TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 is amended to 
read as follows:

                              ``timetable

    ``Sec. 300. The timetable with respect to the congressional budget 
process for any fiscal year is as follows:

``On or before:                     Action to be completed:
    First Monday in February.......
                                        President submits his budget.
    February 15....................
                                        Congressional Budget Office 
                                                submits report to 
                                                Budget Committees.
    Not later than 6 weeks after 
        President submits budget.
                                        Committees submit views and 
                                                estimates to Budget 
                                                Committees.
    April 1........................
                                        Senate Budget Committee reports 
                                                joint resolution on the 
                                                budget.
    April 15.......................
                                        Congress completes action on 
                                                joint resolution on the 
                                                budget.
    June 10........................
                                        House Appropriations Committee 
                                                reports last annual 
                                                appropriation bill.
    June 15........................
                                        Congress completes action on 
                                                reconciliation 
                                                legislation.
    June 30........................
                                        House completes action on 
                                                annual appropriation 
                                                bills.
    October 1......................
                                        Fiscal year begins.''.

SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

    (a) Content of Annual Joint Resolutions on the Budget.--Section 
301(a) of the Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraph (4) and insert the following new 
        paragraph:
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending (excluding interest), and interest; 
        and for fiscal years to which the amendments made by title II 
        of the Comprehensive Budget Process Reform Act of 1999 apply, 
        subtotals of new budget authority and outlays for 
        emergencies;''.
            (2) Strike the last sentence of such subsection.
    (b) Additional Matters in Joint Resolution.--Section 301(b) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraphs (2), (4), (6), (8), and (9) and 
        redesignate paragraph (7) as paragraph (6).
            (2) After paragraph (1), insert the following new 
        paragraph:
            ``(2) if submitted by the Committee on Ways and Means of 
        the House of Representatives or the Committee on Finance of the 
        Senate to the Committee on the Budget of that House of 
        Congress, amend section 3101 of title 31, United States Code, 
        to change the statutory limit on the public debt;''.
            (3) After paragraph (3), insert the following new 
        paragraph:
            ``(4) require such other congressional procedures, relating 
        to the budget, as may be appropriate to carry out the purposes 
        of this Act;''.
    (c) Required Contents of Report.--Section 301(e)(2) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A), (B), (C), (D), (E), and 
        (F) as subparagraphs (B), (C), (E), (F), (H), and (I), 
        respectively.
            (2) Before subparagraph (B) (as redesignated), insert the 
        following new subparagraph:
                    ``(A) new budget authority and outlays for each 
                major functional category, based on allocations of the 
                total levels set forth pursuant to subsection 
                (a)(1);''.
            (3) In subparagraph (C) (as redesignated), strike 
        ``mandatory'' and insert ``direct spending''.
            (4) After subparagraph (C) (as redesignated), insert the 
        following new subparagraph:
                    ``(D) a measure, as a percentage of gross domestic 
                product, of total outlays, total Federal revenues, the 
                surplus or deficit, and new outlays for nondefense 
                discretionary spending, defense spending, and direct 
                spending as set forth in such resolution;''.
            (5) After subparagraph (F) (as redesignated), insert the 
        following new subparagraph:
                    ``(G) if the joint resolution on the budget 
                includes any allocation to a committee (other than the 
                Committee on Appropriations) of levels in excess of 
                current law levels, a justification for not subjecting 
                any program, project, or activity (for which the 
                allocation is made) to annual discretionary 
                appropriations;''.
    (d) Additional Contents of Report.--Section 301(e)(3) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A) and (B) as subparagraphs 
        (B) and (C), respectively, strike subparagraphs (C) and (D), 
        and redesignate subparagraph (E) as subparagraph (D).
            (2) Before subparagraph (B), insert the following new 
        subparagraph:
                    ``(A) reconciliation directives described in 
                section 310;''.
    (e) President's Budget Submission to the Congress.--(1) The first 
two sentences of section 1105(a) of title 31, United States Code, are 
amended to read as follows:
``On or after the first Monday in January but not later than the first 
Monday in February of each year the President shall submit a budget of 
the United States Government for the following fiscal year which shall 
set forth the following levels:
            ``(A) totals of new budget authority and outlays;
            ``(B) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;
            ``(C) the surplus or deficit in the budget;
            ``(D) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending, and interest; and for fiscal years 
        to which the amendments made by title II of the Comprehensive 
        Budget Process Reform Act of 1999 apply, subtotals of new 
        budget authority and outlays for emergencies; and
            ``(E) the public debt.
Each budget submission shall include a budget message and summary and 
supporting information and, as a separately delineated statement, the 
levels required in the preceding sentence for at least each of the 9 
ensuing fiscal years.''.
    (2) The third sentence of section 1105(a) of title 31, United 
States Code, is amended by inserting ``submission'' after ``budget''.
    (f) Limitation on Contents of Budget Resolutions.--Section 305 of 
the Congressional Budget Act of 1974 is amended by adding at the end 
the following new subsection:
    ``(e) Limitation on Contents.--(1) It shall not be in order in the 
House of Representatives or in the Senate to consider any joint 
resolution on the budget or any amendment thereto or conference report 
thereon that contains any matter referred to in paragraph (2).
    ``(2) Any joint resolution on the budget or any amendment thereto 
or conference report thereon that contains any matter not permitted in 
section 301(a) or (b) shall not be treated in the House of 
Representatives or the Senate as a budget resolution under subsection 
(a) or (b) or as a conference report on a budget resolution under 
subsection (c) of this section.''.

SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED; 
              FALL-BACK PROCEDURES IF PRESIDENT VETOES JOINT BUDGET 
              RESOLUTION.

    (a) Amendments to Section 302.--Section 302(a) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (5).
    (b) Amendments to Section 303 and Conforming Amendments.--(1) 
Section 303 of the Congressional Budget Act of 1974 is amended--
            (A) in subsection (b), by striking paragraph (2), by 
        inserting ``or'' at the end of paragraph (1), and by 
        redesignating paragraph (3) as paragraph (2); and
            (B) by striking its section heading and inserting the 
        following new section heading: ``consideration of budget-
        related legislation before budget becomes law''.
    (2) Section 302(g)(1) of the Congressional Budget Act of 1974 is 
amended by striking ``and, after April 15, section 303(a)''.
    (3)(A) Section 904(c)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (B) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (c) Expedited Procedures Upon Veto of Joint Resolution on the 
Budget.--(1) Title III of the Congressional Budget Act of 1974 is 
amended by adding after section 315 the following new section:

   ``expedited procedures upon veto of joint resolution on the budget

    ``Sec. 316. (a) Special Rule.--If the President vetoes a joint 
resolution on the budget for a fiscal year, the majority leader of the 
House of Representatives or Senate (or his designee) may introduce a 
concurrent resolution on the budget or joint resolution on the budget 
for such fiscal year. If the Committee on the Budget of either House 
fails to report such concurrent or joint resolution referred to it 
within five calendar days (excluding Saturdays, Sundays, or legal 
holidays except when that House of Congress is in session) after the 
date of such referral, the committee shall be automatically discharged 
from further consideration of such resolution and such resolution shall 
be placed on the appropriate calendar.
    ``(b) Procedure in the House of Representatives and the Senate.--
            ``(1) Except as provided in paragraph (2), the provisions 
        of section 305 for the consideration in the House of 
        Representatives and in the Senate of joint resolutions on the 
        budget and conference reports thereon shall also apply to the 
        consideration of concurrent resolutions on the budget 
        introduced under subsection (a) and conference reports thereon.
            ``(2) Debate in the Senate on any concurrent resolution on 
        the budget or joint resolution on the budget introduced under 
        subsection (a), and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 10 hours and in the House such debate shall be 
        limited to not more than 3 hours.
    ``(c) Contents of Concurrent Resolutions.--Any concurrent 
resolution on the budget introduced under subsection (a) shall be in 
compliance with section 301.
    ``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a 
concurrent resolution on the budget described in subsection (a) is 
agreed to, then the aggregates, allocations, and reconciliation 
directives (if any) contained in the report accompanying such 
concurrent resolution or in such concurrent resolution shall be 
considered to be the aggregates, allocations, and reconciliation 
directives for all purposes of sections 302, 303, and 311 for the 
applicable fiscal years and such concurrent resolution shall be deemed 
to be a joint resolution for all purposes of this title and the Rules 
of the House of Representatives and any reference to the date of 
enactment of a joint resolution on the budget shall be deemed to be a 
reference to the date agreed to when applied to such concurrent 
resolution.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 315 the following new 
item:

``Sec. 316. Expedited procedures upon veto of joint resolution on the 
                            budget.''.

SEC. 105. CONFORMING AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE 
              BUDGET.

    (a) Conforming Amendments to the Congressional Budget and 
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302, 303, 305, 
308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget Act 
of 1974 (2 U.S.C. 621 et seq.) are amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 are amended by striking ``most 
recently agreed to concurrent resolution on the budget'' each place it 
occurs and inserting ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable)''.
    (ii) The section heading of section 301 is amended by striking 
``adoption of concurrent resolution'' and inserting ``joint 
resolutions'';
    (iii) Section 304 of such Act is amended to read as follows:

             ``permissible revisions of budget resolutions

    ``Sec. 304. At any time after the joint resolution on the budget 
for a fiscal year has been enacted pursuant to section 301, and before 
the end of such fiscal year, the two Houses and the President may enact 
a joint resolution on the budget which revises or reaffirms the joint 
resolution on the budget for such fiscal year most recently enacted. If 
a concurrent resolution on the budget has been agreed to pursuant to 
section 316, then before the end of such fiscal year, the two Houses 
may adopt a concurrent resolution on the budget which revises or 
reaffirms the concurrent resolution on the budget for such fiscal year 
most recently agreed to.''.
    (C) Sections 302, 303, 310, and 311, of such Act are amended by 
striking ``agreed to'' each place it appears and by inserting 
``enacted''.
    (2)(A) Paragraph (4) of section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B) The table of contents set forth in section 1(b) of such Act is 
amended--
            (i) in the item relating to section 301, by striking 
        ``adoption of concurrent resolution'' and inserting ``joint 
        resolutions'';
            (ii) by striking the item relating to section 303 and 
        inserting the following:

``Sec. 303. Consideration of budget-related legislation before budget 
                            becomes law.'';
            (iii) in the item relating to section 304, by striking 
        ``concurrent'' and inserting ``budget'' the first place it 
        appears and by striking ``on the budget''; and
            (iv) by striking ``concurrent'' and inserting ``joint'' in 
        the item relating to section 305.
    (b) Conforming Amendments to the Rules of the House of 
Representatives.--(1) Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), 
and 4(f)(2) of rule X, clause 10 of rule XVIII, and clause 10 of rule 
XX of the Rules of the House of Representatives are amended by striking 
``concurrent'' each place it appears and inserting ``joint''.
    (2) Clause 10 of rule XVIII of the Rules of the House of 
Representatives is amended--
            (A) in paragraph (b)(2), by striking ``(5)'' and inserting 
        ``(6)''; and
            (B) by striking paragraph (c).
    (c) Conforming Amendments to the Balanced Budget and Emergency 
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is 
amended by striking ``concurrent'' and inserting ``joint''.
    (d) Conforming Amendments to Section 310 Regarding Reconciliation 
Directives.--(1) The side heading of section 310(a) of the 
Congressional Budget Act of 1974 (as amended by section 105(a)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.
    (2) Section 310(a) of such Act is amended by striking ``A'' and 
inserting ``The joint explanatory statement accompanying the conference 
report on a''.
    (3) The first sentence of section 310(b) of such Act is amended by 
striking ``If'' and inserting ``If the joint explanatory statement 
accompanying the conference report on''.
    (4) Section 310(c)(1) of such Act is amended by inserting ``the 
joint explanatory statement accompanying the conference report on'' 
after ``pursuant to''.
    (5) Subsection (g) of section 310 of such Act is repealed.
    (e) Conforming Amendments to Section 3 Regarding Direct Spending.--
Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end the following new paragraph:
            ``(11) The term `direct spending' has the meaning given to 
        such term in section 250(c)(8) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.
    (f) Technical Amendment Regarding Revised Suballocations.--Section 
314(d) of the Congressional Budget Act of 1974 is amended by--
            (1) striking ``Reporting'' in the side heading, by 
        inserting ``the chairmen of'' before ``the Committees'', and by 
        striking ``may report'' and inserting ``shall make and have 
        published in the Congressional Record''; and
            (2) adding at the end the following new sentence: ``For 
        purposes of considering amendments (other than for amounts for 
        emergencies covered by subsection (b)(1)), suballocations shall 
        be deemed to be so adjusted.''.

                 TITLE II--RESERVE FUND FOR EMERGENCIES

SEC. 201. PURPOSE.

    The purposes of this title are to--
            (1) develop budgetary and fiscal procedures for 
        emergencies;
            (2) subject spending for emergencies to budgetary 
        procedures and controls; and
            (3) establish criteria for determining compliance with 
        emergency requirements.

SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

    (a) Discretionary Spending Limits.--(1) Section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.
    (2) Such section 251(b)(2) is further amended by redesignating 
subparagraphs (B) through (G) as subparagraphs (A) through (F).
    (b) Direct Spending.--Sections 252(e) and 252(d)(4)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 are repealed.
    (c) Emergency Designation.--Clause 2 of rule XXI of the Rules of 
the House of Representatives is amended by repealing paragraph (e) and 
by redesignating paragraph (f) as paragraph (e).
    (d) Amount of Adjustments.--Section 314(b) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (1) and by 
redesignating paragraphs (2) through (6) as paragraphs (1) through (5), 
respectively.

SEC. 203. OMB EMERGENCY CRITERIA.

    Section 3 of the Congressional Budget and Impoundment Control Act 
of 1974 (as amended by section 105(e)) is further amended by adding at 
the end the following new paragraph:
            ``(12)(A) The term `emergency' means a situation that--
                    ``(i) requires new budget authority and outlays (or 
                new budget authority and the outlays flowing therefrom) 
                for the prevention or mitigation of, or response to, 
                loss of life or property, or a threat to national 
                security; and
                    ``(ii) is unanticipated.
            ``(B) As used in subparagraph (A), the term `unanticipated' 
        means that the situation is--
                    ``(i) sudden, which means quickly coming into being 
                or not building up over time;
                    ``(ii) urgent, which means a pressing and 
                compelling need requiring immediate action;
                    ``(iii) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                    ``(iv) temporary, which means not of a permanent 
                duration.''.

SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY 
              DEFINITION.

    Not later than 5 months after the date of enactment of this Act, 
the chairmen of the Committees on the Budget (in consultation with the 
President) shall, after consulting with the chairmen of the Committees 
on Appropriations and applicable authorizing committees of their 
respective Houses and the Directors of the Congressional Budget Office 
and the Office of Management and Budget, jointly publish in the 
Congressional Record guidelines for application of the definition of 
emergency set forth in section 3(12) of the Congressional Budget and 
Impoundment Control Act of 1974.

SEC. 205. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.

    Section 1105(f) of title 31, United States Code is amended by 
adding at the end the following new sentences: ``Such budget submission 
shall also comply with the requirements of section 317(b) of the 
Congressional Budget Act of 1974 and, in the case of any budget 
authority requested for an emergency, such submission shall include a 
detailed justification of why such emergency is an emergency within the 
meaning of section 3(12) of the Congressional Budget Act of 1974.''.

SEC. 206. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN JOINT BUDGET 
              RESOLUTIONS.

    (a) Emergencies.--Title III of the Congressional Budget Act of 1974 
(as amended by section 104(c)) is further amended by adding at the end 
the following new section:

                             ``emergencies

    ``Sec. 317. (a) Adjustments.--
            ``(1) In general.--After the reporting of a bill or joint 
        resolution or the submission of a conference report thereon 
        that provides budget authority for any emergency as identified 
        pursuant to subsection (c), the Committee on the Budget of the 
        House of Representatives or the Senate shall--
                    ``(A) determine and certify, pursuant to the 
                guidelines referred to in section 204 of the 
                Comprehensive Budget Process Reform Act of 1999, the 
                portion (if any) of the amount so specified that is for 
                an emergency within the meaning of section 3(12); and
                    ``(B) make the adjustment set forth in paragraph 
                (2) for the amount of new budget authority (or outlays) 
                in that measure and the outlays flowing from that 
                budget authority.
            ``(2) Matters to be adjusted.--The adjustments referred to 
        in paragraph (1) are to be made to the allocations made 
        pursuant to the appropriate joint resolution on the budget (or 
        concurrent resolution on the budget, as the case may be) 
        pursuant to section 302(a) and shall be in an amount not to 
        exceed the amount reserved for emergencies pursuant to the 
        requirements of subsection (b).
    ``(b) Reserve Fund for Emergencies.--
            ``(1) Amounts.--The amount set forth in the reserve fund 
        for emergencies for budget authority and outlays for a fiscal 
        year pursuant to section 301(a)(4) shall equal--
                    ``(A) the average of the enacted levels of budget 
                authority for emergencies in the 5 fiscal years 
                preceding the current year; and
                    ``(B) the average of the levels of outlays for 
                emergencies in the 5 fiscal years preceding the current 
                year flowing from the budget authority referred to in 
                subparagraph (A), but only in the fiscal year for which 
                such budget authority first becomes available for 
                obligation.
            ``(2) Average levels.--For purposes of paragraph (1), the 
        amount used for a fiscal year to calculate the average of the 
        enacted levels when one or more of such 5 preceding fiscal 
        years is any of fiscal years 1994 through 1998 is as follows: 
        the amount of enacted levels of budget authority and the amount 
        of new outlays flowing therefrom for emergencies, but only in 
        the fiscal year for which such budget authority first becomes 
        available for obligation for each of such 5 fiscal years, which 
        shall be determined by the Committees on the Budget of the 
        House of Representatives and the Senate after receipt of a 
report on such matter transmitted to such committees by the Director of 
the Congressional Budget Office 6 months after the date of enactment of 
this section and thereafter in February of each calendar year.
    ``(c) Committee Notification of Emergency Legislation.--Whenever 
any committee of either House (including a committee of conference) 
reports any bill or joint resolution that provides budget authority for 
any emergency, the report accompanying that bill or joint resolution 
(or the joint explanatory statement of managers in the case of a 
conference report on any such bill or joint resolution) shall identify 
all provisions that provide budget authority and the outlays flowing 
therefrom for such emergency and include a statement of the reasons why 
such budget authority meets the definition of an emergency pursuant to 
the guidelines referred to in section 204 of the Comprehensive Budget 
Process Reform Act of 1999.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 316 the 
following new item:

``Sec. 317. Emergencies.''.

SEC. 207. UP-TO-DATE TABULATIONS.

    Section 308(b)(2) of the Congressional Budget Act of 1974 is 
amended by striking ``and'' at the end of subparagraph (B), by striking 
the period at the end of subparagraph (C) and inserting ``; and'', and 
by adding at the end the following new subparagraph:
                    ``(D) shall include an up-to-date tabulation of 
                amounts remaining in the reserve fund for 
                emergencies.''.

SEC. 208. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.

    (a) Point of Order.--Section 305 of the Congressional Budget Act of 
1974 (as amended by section 103(c)) is further amended by adding at the 
end the following new subsection:
    ``(f) Point of Order Regarding Emergency Reserve Fund.--It shall 
not be in order in the House of Representatives or in the Senate to 
consider an amendment to a joint resolution on the budget (or 
concurrent resolution on the budget, as the case may be) which changes 
the amount of budget authority and outlays set forth in section 
301(a)(4) for emergency reserve fund.''.
    (b) Technical Amendment.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``305(e), 
305(f),'' after ``305(c)(4),''.
    (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``305(e), 305(f),'' after ``305(c)(4),''.

SEC. 209. EFFECTIVE DATE.

    The amendments made by this title shall apply to fiscal year 2001 
and subsequent fiscal years, but such amendments shall take effect only 
after the enactment of legislation changing or extending for any fiscal 
year the budgetary procedures set forth in sections 251 and 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

SEC. 301. PURPOSES.

    The purposes of this title are to--
            (1) close loopholes in the enforcement of budget 
        resolutions;
            (2) require committees of the House of Representatives to 
        include budget compliance statements in reports accompanying 
        all legislation; and
            (3) require committees of the House of Representatives to 
        justify the need for waivers of the Congressional Budget Act of 
        1974;
            (4) provide cost estimates of conference reports.

  Subtitle A--Application of Points of Order to Unreported Legislation

SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER TO UNREPORTED 
              LEGISLATION.

    (a) Section 315 of the Congressional Budget Act of 1974 is amended 
by striking ``reported'' the first place it appears.
    (b) Section 303(b) of the Congressional Budget Act of 1974 (as 
amended by section 104(b)(1)) is further amended--
            (1) in paragraph (1), by striking ``(A)'' and by 
        redesignating subparagraph (B) as paragraph (2) and by striking 
        the semicolon at the end of such new paragraph (2) and 
        inserting a period; and
            (2) by striking paragraph (2) (as redesignated by such 
        section 104(b)(1)).

             Subtitle B--Compliance with Budget Resolution

SEC. 321. BUDGET COMPLIANCE STATEMENTS.

    Clause 3(d) of rule XIII of the Rules of the House of 
Representatives is amended by adding at the end the following new 
subparagraph:
            ``(4) A budget compliance statement prepared by the 
        chairman of the Committee on the Budget, if timely submitted 
        prior to the filing of the report, which shall include 
        assessment by such chairman as to whether the bill or joint 
        resolution complies with the requirements of sections 302, 303, 
        306, 311, and 401 of the Congressional Budget Act of 1974 and 
        may include the budgetary implications of that bill or joint 
        resolution under section 251 or 252 of the Balanced Budget and 
        Emergency Deficit Control Act of 1985, as applicable.''.

            Subtitle C--Justification for Budget Act Waivers

SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN THE HOUSE OF 
              REPRESENTATIVES.

    Clause 6 of rule XIII of the Rules of the House of Representatives 
is amended by adding at the end the following new paragraph:
    ``(h) It shall not be in order to consider any resolution from the 
Committee on Rules for the consideration of any reported bill or joint 
resolution which waives section 302, 303, 311, or 401 of the 
Congressional Budget Act of 1974, unless the report accompanying such 
resolution includes a description of the provision proposed to be 
waived, an identification of the section being waived, the reasons why 
such waiver should be granted, and an estimated cost of the provisions 
to which the waiver applies.''.

             Subtitle D--CBO Scoring of Conference Reports

SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

    (a) The first sentence of section 402 of the Congressional Budget 
Act of 1974 is amended as follows:
            (1) Insert ``or conference report thereon,'' before ``and 
        submit''.
            (2) In paragraph (1), strike ``bill or resolution'' and 
        insert ``bill, joint resolution, or conference report''.
            (3) At the end of paragraph (2) strike ``and'', at the end 
        of paragraph (3) strike the period and insert ``; and'', and 
        after such paragraph (3) add the following new paragraph:
            ``(4) A determination of whether such bill, joint 
        resolution, or conference report provides direct spending.''.
    (b) The second sentence of section 402 of the Congressional Budget 
Act of 1974 is amended by inserting before the period the following: 
``, or in the case of a conference report, shall be included in the 
joint explanatory statement of managers accompanying such conference 
report if timely submitted before such report is filed''.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

SEC. 401. PURPOSES.

    The purposes of this title are to--
            (1) require committees to develop a schedule for 
        reauthorizing all programs within their jurisdictions;
            (2) facilitate amendments to subject new entitlement 
        programs to annual discretionary appropriations;
            (3) require the Committee on the Budget to justify any 
        allocation to an authorizing committee for legislation that 
        would not be subject to annual discretionary appropriation;
            (4) provide estimates of the long-term impact of spending 
        and tax legislation;
            (5) provide a point of order for legislation creating a new 
        direct spending program that does not expire within 10 years; 
        and
            (6) require a vote in the House of Representatives on any 
        measure that increases the statutory limit on the public debt.

               Subtitle A--Limitations on Direct Spending

SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR NEW PROGRAMS.

    (a) In General.--Section 401 of the Congressional Budget Act of 
1974 is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following new subsection:
    ``(a) Limitation on Direct Spending.--It shall not be in order in 
the House of Representatives or in the Senate to consider a bill or 
joint resolution, or an amendment, motion, or conference report that 
provides direct spending for a new program, unless such spending is 
limited to a period of 10 or fewer fiscal years.'';
            (2) by redesignating subsection (c) as subsection (b) and 
        by striking ``Subsections (a) and (b) each place it appears and 
        inserting ``Subsection (a)'' in such redesignated subsection 
        (b); and
            (3) by amending the section heading to read as follows:

      ``fixed-year authorizations required for direct spending''.

    (b) Conforming Amendment.--The item relating to section 401 in the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended to read as follows:

``Sec. 401. Fixed-year authorizations required for direct spending.''.
    (c) Limitation on Authorization of Discretionary Appropriations.--
Rule XXI of the Rules of the House of Representatives is amended by 
adding at the end the following new clause:
    ``6. It shall not be in order to consider any bill, joint 
resolution, amendment, or conference report that authorizes the 
appropriation of new budget authority (as defined in section 3(2)(C) of 
the Congressional Budget and Impoundment Control Act of 1974) for a new 
program, unless such authorization is specifically provided for a 
period of 10 or fewer fiscal years.''.

SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPENDING TO ANNUAL 
              APPROPRIATIONS.

    (a) House Procedures.--Clause 5 of rule XVIII of the Rules of the 
House of Representatives is amended by adding at the end the following 
new paragraph:
    ``(c)(1) In the Committee of the Whole, an amendment only to 
subject a new program which provides direct spending to discretionary 
appropriations, if offered by the chairman of the Committee on the 
Budget (or his designee) or the chairman of the Committee of 
Appropriations (or his designee), may be precluded from consideration 
only by the specific terms of a special order of the House. Any such 
amendment, if offered, shall be debatable for twenty minutes equally 
divided and controlled by the proponent of the amendment and a Member 
opposed and shall not be subject to amendment.
    ``(2) As used in subparagraph (1), the term `direct spending' has 
the meaning given such term in section 3(11) of the Congressional 
Budget and Impoundment Control Act of 1974.''.
    (b) Adjustment of Discretionary Spending Limits for Discretionary 
Appropriations Offset by Direct Spending Savings.--
            (1) Purpose.--The purpose of the amendments made by this 
        subsection is to hold the discretionary spending limits and the 
        allocations made to the Committee on Appropriations under 
        section 302(a) of the Congressional Budget Act of 1974 harmless 
        for legislation that offsets a new discretionary program with a 
        designated reduction in direct spending.
            (2) Designating direct spending savings in authorization 
        legislation for new discretionary programs.--Section 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (as 
        amended by section 202) is further amended by adding at the end 
        the following new subsection:
    ``(e) Offsets.--If a provision of direct spending legislation is 
enacted that--
            ``(1) decreases direct spending for any fiscal year; and
            ``(2) is designated as an offset pursuant to this 
        subsection and such designation specifically identifies an 
        authorization of discretionary appropriations (contained in 
        such legislation) for a new program,
then the reductions in new budget authority and outlays in all fiscal 
years resulting from that provision shall be designated as an offset in 
the reports required under subsection (d).''.
            (3) Exempting such designated direct spending savings from 
        paygo scorecard.--Section 252(d)(4) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (as amended by section 
        202(b)) is further amended by adding at the end the following 
        new subparagraph:
                    ``(B) offset provisions as designated under 
                subsection (e).''.
            (4) Adjustment in discretionary spending limits.--Section 
        251(b)(2) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985 (as amended by section 202(a)(2)) is further 
        amended by adding at the end the following new subparagraph:
                    ``(G) Discretionary authorization offsets.--If an 
                Act other than an appropriation Act includes any 
                provision reducing direct spending and specifically 
                identifies any such provision as an offset pursuant to 
                section 252(e), the adjustments shall be an increase in 
                the discretionary spending limits for budget authority 
                and outlays in each fiscal year equal to the amount of 
                the budget authority and outlay reductions, 
                respectively, achieved by the specified offset in that 
                fiscal year, except that the adjustments for the budget 
                year in which the offsetting provision takes effect 
                shall not exceed the amount of discretionary new budget 
                authority provided for the new program (authorized in 
                that Act) in an Act making discretionary appropriations 
                and the outlays flowing therefrom.''.
            (5) Adjustment in appropriation committee's allocations.--
        Section 314(b) of the Congressional Budget Act of 1974 (as 
        amended by section 202(d)) is further amended by striking ``; 
        or'' at the end of paragraph (4), by striking the period and 
        inserting ``; or'' at the end of paragraph (5), and by adding 
        at the end the following new paragraph:
            ``(6) the amount provided in an Act making discretionary 
        appropriations for the program for which an offset was 
        designated pursuant to section 252(e) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 and any outlays 
        flowing therefrom, but not to exceed the amount of the 
        designated decrease in direct spending for that year for that 
        program in a prior law.''.
            (6) Adjustment in authorizing committee's allocations.--
        Section 314 of the Congressional Budget Act of 1974 is amended 
        by adding at the end the following new subsection:
    ``(f) Adjustment in Authorizing Committee's Allocations by Amount 
of Direct Spending Offset.--After the reporting of a bill or joint 
resolution (by a committee other than the Committee on Appropriations), 
or the offering of an amendment thereto or the submission of a 
conference report thereon, that contains a provision that decreases 
direct spending for any fiscal year and that is designated as an offset 
pursuant to section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the chairman of the Committee on the Budget shall 
reduce the allocations of new budget authority and outlays made to such 
committee under section 302(a)(1) by the amount so designated.''.

     Subtitle B--Enhanced Congressional Oversight Responsibilities

SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIREMENT OF PERMANENT BUDGET 
              AUTHORITY.

    (a) Timetable for Review.--Clause 2(d)(1) of rule X of the Rules of 
the House of Representatives is amended by striking subdivisions (B) 
and (C) and inserting the following new subdivision:
            ``(B) provide in its plans a specific timetable for its 
        review of those laws, programs, or agencies within its 
        jurisdiction, including those that operate under permanent 
        budget authority or permanent statutory authority and such 
        timetable shall demonstrate that each law, program, or agency 
        within the committee's jurisdiction will be reauthorized at 
        least once every ten years.''.
    (b) Review of Permanent Budget Authority by the Committee on 
Appropriations.--Clause 4(a) of rule X of the Rules of the House of 
Representatives is amended--
            (1) by striking subparagraph (2); and
            (2) by redesignating subparagraphs (3) and (4) as 
        subparagraphs (2) and (3) and by striking ``from time to time'' 
        and inserting ``at least once each Congress'' in subparagraph 
        (2) (as redesignated).
    (c) Conforming Amendment.--Clause 4(e)(2) of rule X of the Rules of 
the House of Representatives is amended by striking ``from time to 
time'' and inserting ``at least once every ten years''.

SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

    (a) Section 302 Allocations.--Section 302(a) of the Congressional 
Budget Act of 1974 (as amended by section 104(a)) is further amended by 
adding at the end the following new paragraph:
            ``(5) Justification of certain spending allocations.--The 
        joint explanatory statement accompanying a conference report on 
        a joint resolution on the budget that includes any allocation 
        to a committee (other than the Committee on Appropriations) of 
        levels in excess of current law levels shall set forth a 
        justification for not subjecting any program, project, or 
        activity (for which the allocation is made) to annual 
        discretionary appropriation.''.
    (b) Presidents' Budget Submissions.--Section 1105(a) of title 31, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(33) a justification for not subjecting each new program, 
        project, or activity to discretionary appropriations.''.
    (c) Committee Justification for Direct Spending.--Clause 4(e)(2) of 
rule X of the Rules of the House of Representatives is amended by 
inserting before the period the following: ``, and will provide 
specific information in any report accompanying such bills and joint 
resolutions to the greatest extent practicable to justify why the 
programs, projects, and activities involved would not be subject to 
annual appropriation''.

SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COMMITTEES.

    Clause 1(d) of rule XI of the Rules of the House of Representatives 
is amended by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph:
    ``(4) Such report shall include a summary of and justifications for 
all bills and joint resolutions reported by such committee that--
            ``(A) were considered before the adoption of the 
        appropriate budget resolution and did not fall within an 
        exception set forth in section 303(b) of the Congressional 
        Budget Act of 1974;
            ``(B) exceeded its allocation under section 302(a) of such 
        Act or breached an aggregate level in violation of section 311 
        of such Act; or
            ``(C) contained provisions in violation of section 401(a) 
        of such Act pertaining to indefinite direct spending authority.
Such report shall also specify the total amount by which legislation 
reported by that committee exceeded its allocation under section 302(a) 
or breached the revenue floor under section 311(a) of such Act for each 
fiscal year during that Congress.''.

SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET PROCESS REFORMS.

    Section 703 of the Congressional Budget Act of 1974 is amended as 
follows:
            (1) In subsection (a), strike ``and'' at the end of 
        paragraph (3), strike the period at the end of paragraph (4) 
        and insert ``; and'', and at the end add the following new 
        paragraph:
            ``(5) evaluating whether existing programs, projects, and 
        activities should be subject to discretionary appropriations 
        and establishing guidelines for subjecting new or expanded 
        programs, projects, and activities to annual appropriation and 
        recommend any necessary changes in statutory enforcement 
        mechanisms and scoring conventions to effectuate such 
        changes.''.
            (2) In subsection (b), strike ``from time to time'' and 
        insert ``during the One Hundred Sixth Congress''.

SEC. 425. GAO REPORTS.

      The last sentence of section 404 of the Congressional Budget Act 
of 1974 is amended to read as follows: ``Such report shall be revised 
at least once every five years and shall be transmitted to the chairman 
and ranking minority member of each committee of the House of 
Representatives and the Senate.''.

                Subtitle C--Strengthened Accountability

SEC. 431. TEN-YEAR CBO ESTIMATES.

    (a) CBO Reports on Legislation.--Section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 is amended by striking ``four'' and 
inserting ``nine''.
    (b) Analysis by CBO.--Section 402(1) of the Congressional Budget 
Act of 1974 is amended by striking ``4'' and inserting ``nine''.
    (c) Cost Estimates.--Clause 3(d)(2)(A) of rule XIII of the Rules of 
the House of Representatives is amended by striking ``five'' each place 
it appears and inserting ``10''.

SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE HOUSE OF 
              REPRESENTATIVES.

    Rule XXIII of the Rules of the House of Representatives (relating 
to the establishment of the statutory limit on the public debt) is 
repealed.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

SEC. 501. PURPOSES.

    The purposes of this title are to--
            (1) budget for the long-term costs of Federal insurance 
        programs;
            (2) improve congressional control of those costs; and
            (3) periodically report on long-term budgetary trends.

     Subtitle A--Budgetary Treatment of Federal Insurance Programs

SEC. 511. FEDERAL INSURANCE PROGRAMS.

    (a) In General.--The Congressional Budget Act of 1974 is amended by 
adding after title V the following new title:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``SEC. 601. SHORT TITLE.

    ``This title may be cited as the `Federal Insurance Budgeting Act 
of 1999'.

``SEC. 602. BUDGETARY TREATMENT.

    ``(a) President's Budget.--Beginning with fiscal year 2006, the 
budget of the Government pursuant to section 1105(a) of title 31, 
United States Code, shall be based on the risk-assumed cost of Federal 
insurance programs.
    ``(b) Budget Accounting.--For any Federal insurance program--
            ``(1) the program account shall--
                    ``(A) pay the risk-assumed cost borne by the 
                taxpayer to the financing account, and
                    ``(B) pay actual insurance program administrative 
                costs;
            ``(2) the financing account shall--
                    ``(A) receive premiums and other income,
                    ``(B) pay all claims for insurance and receive all 
                recoveries,
                    ``(C) transfer to the program account on not less 
                than an annual basis amounts necessary to pay insurance 
                program administrative costs;
            ``(3) a negative risk-assumed cost shall be transferred 
        from the financing account to the program account, and shall be 
        transferred from the program account to the general fund; and
            ``(4) all payments by or receipts of the financing accounts 
        shall be treated in the budget as a means of financing.
    ``(c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal year 
2006 and thereafter only to the extent that new budget authority to 
cover their risk-assumed cost is provided in advance in an 
appropriation Act.
    ``(2) An outstanding insurance commitment shall not be modified in 
a manner that increases its risk-assumed cost unless budget authority 
for the additional cost has been provided in advance.
    ``(3) Paragraph (1) shall not apply to Federal insurance programs 
that constitute entitlements.
    ``(d) Reestimates.--The risk-assumed cost for a fiscal year shall 
be reestimated in each subsequent year. Such reestimate can equal zero. 
In the case of a positive reestimate, the amount of the reestimate 
shall be paid from the program account to the financing account. In the 
case of a negative reestimate, the amount of the reestimate shall be 
paid from the financing account to the program account, and shall be 
transferred from the program account to the general fund. Reestimates 
shall be displayed as a distinct and separately identified subaccount 
in the program account.
    ``(e) Administrative Expenses.--All funding for an agency's 
administration of a Federal insurance program shall be displayed as a 
distinct and separately identified subaccount in the program account.

``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR 
              FEDERAL INSURANCE PROGRAMS.

    ``(a) Agency Requirements.--Agencies with responsibility for 
Federal insurance programs shall develop models to estimate their risk-
assumed cost by year through the budget horizon and shall submit those 
models, all relevant data, a justification for critical assumptions, 
and the annual projected risk-assumed costs to OMB with their budget 
requests each year starting with the request for fiscal year 2002. 
Agencies will likewise provide OMB with annual estimates of 
modifications, if any, and reestimates of program costs.
    ``(b) Disclosure.--When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2002, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it or other executive branch entities would use to estimate the 
risk-assumed cost of Federal insurance programs and giving such persons 
an opportunity to submit comments. At the same time, the chairman of 
the Committee on the Budget shall publish a notice for CBO in the 
Federal Register advising interested persons of the availability of 
information describing the models, data (including sources), and 
critical assumptions (including explicit or implicit discount rate 
assumptions) that it would use to estimate the risk-assumed cost of 
Federal insurance programs and giving such interested persons an 
opportunity to submit comments.
    ``(c) Revision.--(1) After consideration of comments pursuant to 
subsection (b), and in consultation with the Committees on the Budget 
of the House of Representatives and the Senate, OMB and CBO shall 
revise the models, data, and major assumptions they would use to 
estimate the risk-assumed cost of Federal insurance programs.
    ``(2) When the President submits a budget of the Government 
pursuant to section 1105(a) of title 31, United States Code, for fiscal 
year 2003, OMB shall publish a notice in the Federal Register advising 
interested persons of the availability of information describing the 
models, data (including sources), and critical assumptions (including 
explicit or implicit discount rate assumptions) that it or other 
executive branch entities used to estimate the risk-assumed cost of 
Federal insurance programs.
    ``(d) Display.--
            ``(1) In general.--For fiscal years 2003, 2004, and 2005 
        the budget submissions of the President pursuant to section 
        1105(a) of title 31, United States Code, and CBO's reports on 
        the economic and budget outlook pursuant to section 202(e)(1) 
        and the President's budgets, shall for display purposes only, 
        estimate the risk-assumed cost of existing or proposed Federal 
        insurance programs.
            ``(2) OMB.--The display in the budget submissions of the 
        President for fiscal years 2003, 2004, and 2005 shall include--
                    ``(A) a presentation for each Federal insurance 
                program in budget-account level detail of estimates of 
                risk-assumed cost;
                    ``(B) a summary table of the risk-assumed costs of 
                Federal insurance programs; and
                    ``(C) an alternate summary table of budget 
                functions and aggregates using risk-assumed rather than 
                cash-based cost estimates for Federal insurance 
                programs.
            ``(3) CBO.--In the second session of the 107th Congress and 
        the 108th Congress, CBO shall include in its estimates under 
        section 308, for display purposes only, the risk-assumed cost 
        of existing Federal insurance programs, or legislation that 
        CBO, in consultation with the Committees on the Budget of the 
        House of Representatives and the Senate, determines would 
        create a new Federal insurance program.
    ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months 
after the budget submission of the President pursuant to section 
1105(a) of title 31, United States Code, for fiscal year 2005, OMB, 
CBO, and GAO shall each submit to the Committees on the Budget of the 
House of Representatives and the Senate a report that evaluates the 
advisability and appropriate implementation of this title.
    ``(2) Each report made pursuant to paragraph (1) shall address the 
following:
            ``(A) The adequacy of risk-assumed estimation models used 
        and alternative modeling methods.
            ``(B) The availability and reliability of data or 
        information necessary to carry out this title.
            ``(C) The appropriateness of the explicit or implicit 
        discount rate used in the various risk-assumed estimation 
        models.
            ``(D) The advisability of specifying a statutory discount 
        rate (such as the Treasury rate) for use in risk-assumed 
        estimation models.
            ``(E) The ability of OMB, CBO, or GAO, as applicable, to 
        secure any data or information directly from any Federal agency 
        necessary to enable it to carry out this title.
            ``(F) The relationship between risk-assumed accrual 
        budgeting for Federal insurance programs and the specific 
        requirements of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            ``(G) Whether Federal budgeting is improved by the 
        inclusion of risk-assumed cost estimates for Federal insurance 
        programs.
            ``(H) The advisability of including each of the programs 
        currently estimated on a risk-assumed cost basis in the Federal 
        budget on that basis.

``SEC. 604. DEFINITIONS.

    ``For purposes of this title:
            ``(1) The term `Federal insurance program' means a program 
        that makes insurance commitments and includes the list of such 
        programs included in the joint explanatory statement of 
        managers accompanying the conference report on the 
        Comprehensive Budget Process Reform Act of 1999.
            ``(2) The term `insurance commitment' means an agreement in 
        advance by a Federal agency to indemnify a nonfederal entity 
        against specified losses. This term does not include loan 
        guarantees as defined in title V or benefit programs such as 
        social security, medicare, and similar existing social 
        insurance programs.
            ``(3)(A) The term `risk-assumed cost' means the net present 
        value of the estimated cash flows to and from the Government 
        resulting from an insurance commitment or modification thereof.
            ``(B) The cash flows associated with an insurance 
        commitment include--
                    ``(i) expected claims payments inherent in the 
                Government's commitment;
                    ``(ii) net premiums (expected premium collections 
                received from or on behalf of the insured less expected 
                administrative expenses);
                    ``(iii) expected recoveries; and
                    ``(iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the insured 
                of any option included in the insurance commitment.
            ``(C) The cost of a modification is the difference between 
        the current estimate of the net present value of the remaining 
        cash flows under the terms of the insurance commitment, and the 
        current estimate of the net present value of the remaining cash 
        flows under the terms of the insurance commitment as modified.
            ``(D) The cost of a reestimate is the difference between 
        the net present value of the amount currently required by the 
        financing account to pay estimated claims and other 
        expenditures and the amount currently available in the 
        financing account. The cost of a reestimate shall be accounted 
        for in the current year in the budget of the Government 
        pursuant to section 1105(a) of title 31, United States Code.
            ``(E) For purposes of this definition, expected 
        administrative expenses shall be construed as the amount 
        estimated to be necessary for the proper administration of the 
        insurance program. This amount may differ from amounts actually 
        appropriated or otherwise made available for the administration 
        of the program.
            ``(4) The term `program account' means the budget account 
        for the risk-assumed cost, and for paying all costs of 
        administering the insurance program, and is the account from 
        which the risk-assumed cost is disbursed to the financing 
        account.
            ``(5) The term `financing account' means the nonbudget 
        account that is associated with each program account which 
        receives payments from or makes payments to the program 
        account, receives premiums and other payments from the public, 
        pays insurance claims, and holds balances.
            ``(6) The term `modification' means any Government action 
        that alters the risk-assumed cost of an existing insurance 
        commitment from the current estimate of cash flows. This 
        includes any action resulting from new legislation, or from the 
        exercise of administrative discretion under existing law, that 
        directly or indirectly alters the estimated cost of existing 
        insurance commitments.
            ``(7) The term `model' means any actuarial, financial, 
        econometric, probabilistic, or other methodology used to 
        estimate the expected frequency and magnitude of loss-producing 
        events, expected premiums or collections from or on behalf of 
        the insured, expected recoveries, and administrative expenses.
            ``(8) The term `current' has the same meaning as in section 
        250(c)(9) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
            ``(9) The term `OMB' means the Director of the Office of 
        Management and Budget.
            ``(10) The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(11) The term `GAO' means the Comptroller General of the 
        United States.

``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST 
              ACCOUNT.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated $600,000 for each of fiscal years 2000 through 2005 to the 
Director of the Office of Management and Budget and each agency 
responsible for administering a Federal program to carry out this 
title.
    ``(b) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend to, or 
pay the insurance 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 above. The authorities described above shall not 
be construed to supersede or override the authority of the head of a 
Federal agency to administer and operate an insurance program. All the 
transactions provided in this subsection shall be subject to the 
provisions of subchapter II of chapter 15 of title 31, United States 
Code. 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.
    ``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost 
of Insurance Commitments at Transition Date.--(1) A financing account 
is established on September 30, 2005, for each Federal insurance 
program.
    ``(2) There is appropriated to each financing account the amount of 
the risk-assumed cost of Federal insurance commitments outstanding for 
that program as of the close of September 30, 2005.
    ``(3) These financing accounts shall be used in implementing the 
budget accounting required by this title.

``SEC. 606. EFFECTIVE DATE.

    ``(a) In General.--This title shall take effect immediately and 
shall expire on September 30, 2007.
    ``(b) Special Rule.--If this title is not reauthorized by September 
30, 2007, then the accounting structure and budgetary treatment of 
Federal insurance programs shall revert to the accounting structure and 
budgetary treatment in effect immediately before the date of enactment 
of this title.''.
    (b)  Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 507 the 
following new items:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for 
                            Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost 
                            account.
``Sec. 606. Effective date.''.

           Subtitle B--Reports on Long-Term Budgetary Trends

SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.

    (a) The President's Budget.--Section 1105(a) of title 31, United 
States Code (as amended by section 404), is further amended by adding 
at the end the following new paragraph:
            ``(34) an analysis based upon current law and an analysis 
        based upon the policy assumptions underlying the budget 
        submission for every fifth year of the period of 75 fiscal 
        years beginning with such fiscal year, of the estimated levels 
        of total new budget authority and total budget outlays, 
        estimated revenues, estimated surpluses and deficits, and, for 
        social security, medicare, medicaid, and all other direct 
        spending, estimated levels of total new budget authority and 
        total budget outlays; and a specification of its underlying 
        assumptions and a sensitivity analysis of factors that have a 
significant effect on the projections made in each analysis; and a 
comparison of the effects of each of the two analyses on the economy, 
including such factors as inflation, foreign investment, interest 
rates, and economic growth.''.
    (b) CBO Reports.--Section 202(e)(1) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentences: 
``Such report shall also include an analysis based upon current law for 
every fifth year of the period of 75 fiscal years beginning with such 
fiscal year, of the estimated levels of total new budget authority and 
total budget outlays, estimated revenues, estimated surpluses and 
deficits, and, for social security, medicare, medicaid, and all other 
direct spending, estimated levels of total new budget authority and 
total budget outlays. The report described in the preceding sentence 
shall also specify its underlying assumptions and set forth a 
sensitivity analysis of factors that have a significant effect on the 
projections made in the report.''.

              TITLE VI--BASELINES, BYRD RULE, AND LOCK-BOX

SEC. 601. PURPOSE.

The purposes of this title are to--
            (1) require budgetary comparisons to prior year levels;
            (2) restrict the application of the Byrd rule to measures 
        other than conference reports; and
            (3) establish a procedure to allow savings from spending 
        cuts in appropriation measures to be locked-in to increase the 
        surplus or reduce the deficit.

                        Subtitle A--The Baseline

SEC. 611. THE PRESIDENT'S BUDGET.

    (a) Paragraph (5) of section 1105(a) of title 31, United States 
Code, is amended to read as follows:
            ``(5) except as provided in subsection (b) of this section, 
        estimated expenditures and appropriations for the current year 
        and estimated expenditures and proposed appropriations the 
        President decides are necessary to support the Government in 
        the fiscal year for which the budget is submitted and the 4 
        fiscal years following that year, and, except for detailed 
        budget estimates, the percentage change from the current year 
        to the fiscal year for which the budget is submitted for 
        estimated expenditures and for appropriations.''.
    (b) Section 1105(a)(6) of title 31, United States Code, is amended 
to read as follows:
            ``(6) estimated receipts of the Government in the current 
        year and the fiscal year for which the budget is submitted and 
        the 4 fiscal years after that year under--
                    ``(A) laws in effect when the budget is submitted; 
                and
                    ``(B) proposals in the budget to increase revenues,
        and the percentage change (in the case of each category 
        referred to in subparagraphs (A) and (B)) between the current 
        year and the fiscal year for which the budget is submitted and 
        between the current year and each of the 9 fiscal years after 
        the fiscal year for which the budget is submitted.''.
    (c) Section 1105(a)(12) of title 31, United States Code, is amended 
to read as follows:
            ``(12) for each proposal in the budget for legislation that 
        would establish or expand a Government activity or function, a 
        table showing--
                    ``(A) the amount proposed in the budget for 
                appropriation and for expenditure because of the 
                proposal in the fiscal year for which the budget is 
                submitted;
                    ``(B) the estimated appropriation required because 
                of the proposal for each of the 4 fiscal years after 
                that year that the proposal will be in effect; and
                    ``(C) the estimated amount for the same activity or 
                function, if any, in the current fiscal year,
        and, except for detailed budget estimates, the percentage 
        change (in the case of each category referred to in 
        subparagraphs (A), (B), and (C)) between the current year and 
        the fiscal year for which the budget is submitted.''.
    (d) Section 1105(a)(18) of title 31, United States Code, is amended 
by inserting ``new budget authority and'' before ``budget outlays''.
    (e) Section 1105(a) of title 31, United States Code, (as amended by 
sections 412(b) and 521(a)) is further amended by adding at the end the 
following new paragraphs:
            ``(35) a comparison of levels of estimated expenditures and 
        proposed appropriations for each function and subfunction in 
        the current fiscal year and the fiscal year for which the 
        budget is submitted, along with the proposed increase or 
        decrease of spending in percentage terms for each function and 
        subfunction.
            ``(36) a table on sources of growth in total direct 
        spending under current law and as proposed in this budget 
        submission for the budget year and the ensuing 9 fiscal years, 
        which shall include changes in outlays attributable to the 
        following: cost-of-living adjustments; changes in the number of 
program recipients; increases in medical care prices, utilization and 
intensity of medical care; and residual factors.''.
    (f) Section 1109(a) of title 31, United States Code, is amended by 
inserting after the first sentence the following new sentence: ``For 
discretionary spending, these estimates shall assume the levels set 
forth in the discretionary spending limits under section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as adjusted, 
for the appropriate fiscal years (and if no such limits are in effect, 
these estimates shall assume the adjusted levels for the most recent 
fiscal year for which such levels were in effect).''.

SEC. 612. THE CONGRESSIONAL BUDGET.

    Section 301(e) of the Congressional Budget Act of 1974 (as amended 
by section 103) is further amended--
            (1) in paragraph (1), by inserting at the end the 
        following: ``The basis of deliberations in developing such 
        joint resolution shall be the estimated budgetary levels for 
        the preceding fiscal year. Any budgetary levels pending before 
        the committee and the text of the joint resolution shall be 
        accompanied by a document comparing such levels or such text to 
        the estimated levels of the prior fiscal year. Any amendment 
        offered in the committee that changes a budgetary level and is 
        based upon a specific policy assumption for a program, project, 
        or activity shall be accompanied by a document indicating the 
        estimated amount for such program, project, or activity in the 
        current year.''; and
            (2) in paragraph (2), by striking ``and'' at the end of 
        subparagraph (H) (as redesignated), by striking the period and 
        inserting ``; and'' at the end of subparagraph (I) (as 
        redesignated), and by adding at the end the following new 
        subparagraph:
                    ``(J) a comparison of levels for the current fiscal 
                year with proposed spending and revenue levels for the 
                subsequent fiscal years along with the proposed 
                increase or decrease of spending in percentage terms 
                for each function.''.

SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.

    (a) The first sentence of section 202(e)(1) of the Congressional 
Budget Act of 1974 is amended by inserting ``compared to comparable 
levels for the current year'' before the comma at the end of 
subparagraph (A) and before the comma at the end of subparagraph (B).
    (b) Section 202(e)(1) of the Congressional Budget Act of 1974 is 
amended by inserting after the first sentence the following new 
sentence: ``Such report shall also include a table on sources of 
spending growth in total direct spending for the budget year and the 
ensuing 9 fiscal years, which shall include changes in outlays 
attributable to the following: cost-of-living adjustments; changes in 
the number of program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual factors.''.
    (c) Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is 
amended by inserting ``and shall include a comparison of those levels 
to comparable levels for the current fiscal year'' before ``if timely 
submitted''.

SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY SPENDING.

    For purposes of chapter 11 of title 31 of the United States Code, 
or the Congressional Budget Act of 1974, unless otherwise expressly 
provided, in making budgetary projections for years for which there are 
no discretionary spending limits, the Director of the Office of 
Management and Budget and the Director of the Congressional Budget 
Office shall assume discretionary spending levels at the levels for the 
last fiscal year for which such levels were in effect.

                       Subtitle B--The Byrd Rule

SEC. 621. LIMITATION ON BYRD RULE.

    (a) Protection of Conference Reports.--Section 313 of the 
Congressional Budget Act of 1974 is amended--
            (1) in subsection (c), by striking ``and again upon the 
        submission of a conference report on such a reconciliation bill 
        or resolution,'';
            (2) by striking subsection (d);
            (3) by redesignating subsection (e) as subsection (d); and
            (4) in subsection (e), as redesignated--
                    (A) by striking ``, motion, or conference report'' 
                the first place it appears and inserting ``, or 
                motion''; and
                    (B) by striking ``, motion, or conference report'' 
                the second and third places it appears and inserting 
                ``or motion''.
    (b) Conforming Amendment.--The first sentence of section 312(e) of 
the Congressional Budget Act of 1974 is amended by inserting ``, except 
for section 313,'' after ``Act''.

              Subtitle C--Spending Accountability Lock-box

SEC. 631. SHORT TITLE.

    This subtitle may be cited as the ``Spending Accountability Lock-
box Act of 1999''.

SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

    (a) Establishment of Ledger.--Title III of the Congressional Budget 
Act of 1974 (as amended by sections 104(c) and 206(a)) is further 
amended by adding after section 317 the following new section:

               ``spending accountability lock-box ledger

    ``Sec. 318. (a) Establishment of Ledger.--The chairman of the 
Committee on the Budget of the House of Representatives and the 
chairman on the Committee on the Budget of the Senate shall each 
maintain a ledger to be known as the `Spending Accountability Lock-box 
Ledger'. The Ledger shall be divided into entries corresponding to the 
subcommittees of the Committees on Appropriations. Each entry shall 
consist of three components: the `House Lock-box Balance'; the `Senate 
Lock-box Balance'; and the `Joint House-Senate Lock-box Balance'.
    ``(b) Components of Ledger.--Each component in an entry shall 
consist only of amounts credited to it under subsection (c). No entry 
of a negative amount shall be made.
    ``(c) Credit of Amounts to Ledger.--(1) In the House of 
Representatives or the Senate, whenever a Member offers an amendment to 
an appropriation bill to reduce new budget authority in any account, 
that Member may state the portion of such reduction that shall be--
            ``(A) credited to the House or Senate Lock-box Balance, as 
        applicable; or
            ``(B) used to offset an increase in new budget authority in 
        any other account;
            ``(C) allowed to remain within the applicable section 
        302(b) suballocation.
If no such statement is made, the amount of reduction in new budget 
authority resulting from the amendment shall be credited to the House 
or Senate Lock-box Balance, as applicable, if the amendment is agreed 
to.
    ``(2)(A) Except as provided by subparagraph (B), the chairmen of 
the Committees on the Budget shall, upon the engrossment of any 
appropriation bill by the House of Representatives and upon the 
engrossment of Senate amendments to that bill, credit to the applicable 
entry balance of that House amounts of new budget authority and outlays 
equal to the net amounts of reductions in new budget authority and in 
outlays resulting from amendments agreed to by that House to that bill.
    ``(B) When computing the net amounts of reductions in new budget 
authority and in outlays resulting from amendments agreed to by the 
House of Representatives or the Senate to an appropriation bill, the 
chairmen of the Committees on the Budget shall only count those 
portions of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to the House 
or Senate Lock-box Balance, as applicable, or that fall within the last 
sentence of paragraph (1).
    ``(3) The chairmen of the Committees on the Budget shall, upon the 
engrossment of Senate amendments to any appropriation bill, credit to 
the applicable Joint House-Senate Lock-box Balance the amounts of new 
budget authority and outlays equal to--
            ``(A) an amount equal to one-half of the sum of (i) the 
        amount of new budget authority in the House Lock-box Balance 
        plus (ii) the amount of new budget authority in the Senate 
        Lock-box Balance for that subcommittee; and
            ``(B) an amount equal to one-half of the sum of (i) the 
        amount of outlays in the House Lock-box Balance plus (ii) the 
        amount of outlays in the Senate Lock-box Balance for that 
        subcommittee.
    ``(4) Calculation of Lock-Box Savings in Senate.--For purposes of 
calculating under this section the net amounts of reductions in new 
budget authority and in outlays resulting from amendments agreed to by 
the Senate on an appropriation bill, the amendments reported to the 
Senate by its Committee on Appropriations shall be considered to be 
part of the original text of the bill.
    ``(d) Definition.--As used in this section, the term `appropriation 
bill' means any general or special appropriation bill, and any bill or 
joint resolution making supplemental, deficiency, or continuing 
appropriations through the end of a fiscal year.
    ``(e) Tally During House Consideration.--The chairman of the 
Committee on the Budget of the House of Representatives shall maintain 
a running tally of the amendments adopted reflecting increases and 
decreases of budget authority in the bill as reported. This tally shall 
be available to Members in the House of Representatives during 
consideration of any appropriations bill by the House.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 317 the 
following new item:

``Sec. 318. Spending accountability lock-box ledger.''.

SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(A) ALLOCATIONS AND SECTION 
              302(B) SUBALLOCATIONS.

    (a) Allocations.--Section 302(a) of the Congressional Budget Act of 
1974 (as amended by section 422) is further amended by adding at the 
end the following new paragraph:
            ``(6) Adjustment of allocations.--Upon the engrossment of 
        Senate amendments to any appropriation bill (as defined in 
        section 318(d)) for a fiscal year, the amounts allocated under 
        paragraph (1) or (2) to the Committee on Appropriations of each 
        House upon the adoption of the most recent joint resolution on 
        the budget for that fiscal year shall be adjusted downward by 
        the amounts credited to the applicable Joint House-Senate Lock-
        box Balance under section 318(c)(2). The revised levels of new 
        budget authority and outlays shall be submitted to each House 
        by the chairman of the Committee on the Budget of that House 
        and shall be printed in the Congressional Record.''.
    (b) Suballocations.--Section 302(b) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentence: 
``Whenever an adjustment is made under subsection (a)(7) to an 
allocation under that subsection, the Committee on Appropriations of 
each House shall make downward adjustments in the most recent 
suballocations of new budget authority and outlays under this 
subparagraph to the appropriate subcommittees of that committee in the 
total amounts of those adjustments under section 318(c)(2). The revised 
suballocations shall be submitted to each House by the chairman of the 
Committee on Appropriations of that House and shall be printed in the 
Congressional Record.''.

SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

    Section 308(b)(1) of the Congressional Budget Act of 1974 is 
amended by adding at the end the following new sentence: ``Such reports 
shall also include an up-to-date tabulation of the amounts contained in 
the ledger and each entry established by section 318(a).''.

SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING LIMITS.

    The discretionary spending limits for new budget authority and 
outlays for any fiscal year set forth in section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, shall be reduced by 
the amounts set forth in the final regular appropriation bill for that 
fiscal year or joint resolution making continuing appropriations 
through the end of that fiscal year. Those amounts shall be the sums of 
the Joint House-Senate Lock-box Balances for that fiscal year, as 
calculated under section 302(a)(6) of the Congressional Budget Act of 
1974. That bill or joint resolution shall contain the following 
statement of law: ``As required by section 636 of the Spending 
Accountability Lock-box Act of 1999, for fiscal year [insert 
appropriate fiscal year] and each outyear, the adjusted discretionary 
spending limit for new budget authority shall be reduced by $ [insert 
appropriate amount of reduction] and the adjusted discretionary limit 
for outlays shall be reduced by $ [insert appropriate amount of 
reduction] for the fiscal year and each outyear.''. Notwithstanding 
section 904(c) of the Congressional Budget Act of 1974, section 306 as 
it applies to this statement shall not apply. This adjustment shall be 
reflected in reports under sections 254(f) and 254(g) of the Balanced 
Budget and Emergency Deficit Control Act of 1985.

              Subtitle D--Automatic Continuing Resolution

SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

    (a) Amendment to Title 31.--Chapter 13 of title 31, United States 
Code, is amended by inserting after section 1310 the following new 
section:
``Sec. 1311. Continuing appropriations
    ``(a)(1) If any regular appropriation bill for a fiscal year does 
not become law prior to the beginning of such fiscal year or a joint 
resolution making continuing appropriations is not in effect, there is 
appropriated, out of any moneys in the Treasury not otherwise 
appropriated, and out of applicable corporate or other revenues, 
receipts, and funds, such sums as may be necessary to continue any 
program, project, or activity for which funds were provided in the 
preceding fiscal year--
            ``(A) in the corresponding regular appropriation Act for 
        such preceding fiscal year; or
            ``(B) if the corresponding regular appropriation bill for 
        such preceding fiscal year did not become law, then in a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year.
    ``(2)(A) Except as provided by subparagraph (B), appropriations and 
funds made available, and authority granted, for a program, project, or 
activity for any fiscal year pursuant to this section shall be at a 
rate of operations not in excess of the rate of operations provided for 
in the regular appropriation Act providing for such program, project, 
or activity for the preceding fiscal year, or in the absence of such an 
Act, the rate of operations provided for such program, project, or 
activity pursuant to a joint resolution making continuing 
appropriations for such preceding fiscal year (but not including 
amounts for such program, project, or activity designated as an 
emergency for that fiscal year before the date of enactment of this 
section).
    ``(B) The applicable rate of operations for a program, project, or 
activity pursuant to this section shall exclude amounts--
            ``(i) for which any adjustment was made under section 
        251(b)(2)(A) or section 252(e) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 before the date of 
        enactment of this section; or
            ``(ii) for which any adjustment is made under section 
        251(b)(2) (D) or (E) of such Act.
    ``(3) Appropriations and funds made available, and authority 
granted, for any fiscal year pursuant to this section for a program, 
project, or activity shall be available for the period beginning with 
the first day of a lapse in appropriations and ending with the earlier 
of--
            ``(A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law (whether or 
        not such law provides for such program, project, or activity) 
        or a continuing resolution making appropriations becomes law, 
        as the case may be, or
            ``(B) the last day of such fiscal year.
    ``(b) An appropriation or funds made available, or authority 
granted, for a program, project, or activity for any fiscal year 
pursuant to this section shall be subject to the terms and conditions 
imposed with respect to the appropriation made or funds made available 
for the preceding fiscal year, or authority granted for such program, 
project, or activity under current law.
    ``(c) Appropriations and funds made available, and authority 
granted, for any program, project, or activity for any fiscal year 
pursuant to this section shall cover all obligations or expenditures 
incurred for such program, project, or activity during the portion of 
such fiscal year for which this section applies to such program, 
project, or activity.
    ``(d) Expenditures made for a program, project, or activity for any 
fiscal year pursuant to this section shall be charged to the applicable 
appropriation, fund, or authorization whenever a regular appropriation 
bill or a joint resolution making continuing appropriations until the 
end of a fiscal year providing for such program, project, or activity 
for such period becomes law.
    ``(e) This section shall not apply to a program, project, or 
activity during a fiscal year if any other provision of law (other than 
an authorization of appropriations)--
            ``(1) makes an appropriation, makes funds available, or 
        grants authority for such program, project, or activity to 
        continue for such period, or
            ``(2) specifically provides that no appropriation shall be 
        made, no funds shall be made available, or no authority 
shall be granted for such program, project, or activity to continue for 
such period; or
    ``(f) For purposes of this section, the term `regular appropriation 
bill' means any annual appropriation bill making appropriations, 
otherwise making funds available, or granting authority, for any of the 
following categories of programs, projects, and activities:
            ``(1) Agriculture, rural development, and related agencies 
        programs.
            ``(2) The Departments of Commerce, Justice, and State, the 
        judiciary, and related agencies.
            ``(3) The Department of Defense.
            ``(4) The government of the District of Columbia and other 
        activities chargeable in whole or in part against the revenues 
        of the District.
            ``(5) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(6) The Department of Housing and Urban Development, and 
        sundry independent agencies, boards, commissions, corporations, 
        and offices.
            ``(7) Energy and water development.
            ``(8) Foreign assistance and related programs.
            ``(9) The Department of the Interior and related agencies.
            ``(10) Military construction.
            ``(11) The Department of Transportation and related 
        agencies.
            ``(12) The Treasury Department, the U.S. Postal Service, 
        the Executive Office of the President, and certain independent 
        agencies.
            ``(13) The legislative branch.''.
    (b) Conforming Amendment.--Section 202(e)(3) of the Congressional 
Budget Act of 1974 is amended by inserting ``and on or before September 
30'' before ``of each year''.
    (c) Chapter Analysis.--The analysis of chapter 13 of title 31, 
United States Code, is amended by inserting after the item relating to 
section 1310 the following new item:

``1311. Continuing appropriations.''.
    (d) Effect of Amendments.--Nothing in the amendments made by this 
section shall be construed to affect Government obligations mandated by 
other law, including obligations with respect to social security, 
medicare, and medicaid.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET SURPLUS.

    (a) Section 252(a) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended to read as follows:
    ``(a) Purpose.--The purpose of this section is to trigger an 
offsetting sequestration in the amount by which any excess of decreases 
in receipts and increases in direct spending over increases in receipts 
and decreases in direct spending, caused by all direct spending and 
receipts legislation enacted prior to October 1, 2002, exceeds 
estimates of the on-budget surplus.''.
    (b) Timing and Calculation of Sequestration.--Section 252(b) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended to 
read as follows:
    ``(b) Sequestration.--
            ``(1) Timing.--Not later than 15 calendar days after the 
        date Congress adjourns to end a session and on the same day as 
        a sequestration (if any) under section 251, there shall be a 
        sequestration to offset an amount equal to--
                    ``(A) any excess of decreases in receipts and 
                increases in direct spending over increases in receipts 
                and decreases in direct spending for legislation 
                enacted prior to October 1, 2002; minus
                    ``(B) the estimated on-budget surplus,
        as calculated under paragraph (2).
            ``(2) Calculation of sequestration.--OMB shall calculate 
        the amount of the sequestration by adding--
                    ``(A) all OMB estimates for the budget year of 
                direct spending and receipts legislation transmitted 
                under subsection (d) for legislation enacted prior to 
                October 1, 2002;
                    ``(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, if any, as published in OMB's final 
                sequestration report for that prior year; and
                    ``(C) all OMB estimates for the current year that 
                were not reflected in the final OMB sequestration 
                report for that year; and
        then by subtracting from such sum the OMB estimate for the 
        budget year of the on-budget surplus (if any) as set forth in 
        the OMB sequestration update report.''.
    (c) Preview Reports.--Section 254(c)(3) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by redesignating 
subparagraph (C) as subparagraph (D) and by adding after subparagraph 
(B) the following new subparagraph:
                    ``(C) The estimated on-budget surplus for the 
                budget year (if any) shall exclude all estimates of 
                direct spending and receipts legislation for such year 
                enacted after the date of enactment of this 
                subparagraph (as estimated by OMB when such legislation 
                was originally enacted). Except as provided by the 
preceding sentence, the following assumptions shall apply to the 
calculation of such estimated surplus: Budgetary resources other than 
unobligated balances shall be at the level provided for the budget year 
in a regular appropriation Act or a joint resolution (other than 
pursuant to section 1311 of title 31, United States Code) continuing 
appropriations through the end of the budget year, but if for any 
account a full-year appropriation has not yet been enacted, budgetary 
resources other than unobligated balances shall be at the level 
available in the current year, adjusted using the assumptions set forth 
in section 257(c).''.
    (d) Final Sequestration Report.--Section 254(f)(3) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by adding 
at the end the following new sentence: ``In calculating the estimated 
on-budget surplus pursuant to section 252(b)(2), notwithstanding 
section 254(j), OMB shall use economic and technical assumptions that 
are up-to-date as of the date of issuance of the sequestration preview 
reports.''.
    (e) Definition of On-Budget Surplus.--Section 250(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new paragraph:
            ``(20) The term `on-budget surplus' means, with respect to 
        a fiscal year, the amount by which receipts exceed outlays for 
        all spending and receipt accounts of the United States 
        Government that are designated as on-budget. Such term does not 
        include outlays and receipts of the Federal Old-Age and 
        Survivors Insurance Trust Fund, the Federal Disability 
        Insurance Trust Fund, or any other off-budget entity.''.
    (f) Expedited Reconciliation Process.--Section 258C of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
            (1) The side heading of subsection (a) is amended by 
        inserting ``or in the House of Representatives'' after 
        ``Senate''.
            (2) In paragraphs (1), (2), (3), and (4) of subsection (a), 
        insert ``or House'' after ``Senate'' each place it appears.
            (3) In subsection (a)(7), strike ``For'' and insert ``In 
        the Senate, for''.
            (4) In subsection (b)(1), insert ``or House'' after 
        ``Senate''.
            (5) In the side heading of subsection (b)(4), insert 
        ``other'' after ``the''.
            (6) In subsection (b)(4), strike ``in the Senate from the 
        House'' and insert ``in the Senate or House of Representatives 
        from the other House'', strike ``Senate'' the second place it 
        appears and insert ``Senate or House of Representatives, as the 
        case may be,'', and strike ``Senate'' the third place it 
        appears and insert ``in the applicable House''.