[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3964 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3964

  To reform Federal budget procedures, to impose spending and deficit 
   limits, to provide for a sustainable fiscal future, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 29, 2009

Mr. Hensarling (for himself, Mr. Ryan of Wisconsin, Mr. Garrett of New 
 Jersey, Mr. Campbell, Mr. Jordan of Ohio, Mrs. Lummis, Mr. Latta, Mr. 
   Barton of Texas, Mr. Bishop of Utah, Mrs. Blackburn, Mr. Brady of 
   Texas, Mr. Broun of Georgia, Mr. Cole, Mr. Franks of Arizona, Mr. 
Herger, Mr. Lamborn, Mr. Luetkemeyer, Mr. Marchant, Mr. Neugebauer, Mr. 
   Pitts, and Mr. Shadegg) introduced the following bill; which was 
    referred to the Committee on the Budget, and in addition to the 
 Committees on Rules, Appropriations, Oversight and Government Reform, 
 and Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To reform Federal budget procedures, to impose spending and deficit 
   limits, to provide for a sustainable fiscal future, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Spending, Deficit, 
and Debt Control Act of 2009''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Effective date.
                   TITLE I--A BINDING FEDERAL BUDGET

Sec. 100. Short title.
                  Subtitle A--Joint Budget Resolution

Sec. 101. Purposes.
Sec. 102. Timetable.
Sec. 103. Joint resolution on the budget.
Sec. 104. Budget required before spending bills may be considered.
Sec. 105. Amendments to joint resolutions on the budget.
                 Subtitle B--Budgeting for Emergencies

Sec. 111. Repeal of adjustments for emergencies.
Sec. 112. Emergency criteria.
Sec. 113. Development of guidelines for application of emergency 
                            definition.
Sec. 114. Reserve fund for emergencies in President's budget.
Sec. 115. Adjustments and reserve rund for emergencies in joint budget 
                            resolutions.
Sec. 116. Application of section 306 to emergencies in excess of 
                            amounts in reserve fund.
Sec. 117. Up-to-date tabulations.
Sec. 118. Prohibition on amendments to the emergency reserve fund.
                      Subtitle C--Biennial Budget

Sec. 121. Effective date.
Sec. 122. Revision of timetable.
Sec. 123. Amendments to the Congressional Budget and Impoundment 
                            Control Act of 1974.
Sec. 124. Amendments to Rules of the House of Representatives.
Sec. 125. Two-year appropriations; title and style of appropriation 
                            Acts.
Sec. 126. Multiyear authorizations.
Sec. 127. Government strategic and performance plans on a biennial 
                            basis.
Sec. 128. Biennial appropriation bills.
Sec. 129. Assistance by Federal agencies to standing committees of the 
                            Senate and the House of Representatives.
             Subtitle D--Prevention of Government Shutdown

Sec. 131. Amendment to Title 31.
                        Subtitle E--The Baseline

Sec. 141. Elimination of inflation adjustment.
Sec. 142. The President's budget.
Sec. 143. The congressional budget.
Sec. 144. Congressional Budget Office reports to committees.
Sec. 145. Treatment of emergencies.
             TITLE II--SPENDING LIMITS AND DEFICIT CONTROL

Sec. 200. Short title.
            Subtitle A--Spending Limits and Deficit Control

Sec. 201. Discretionary spending limits.
Sec. 202. Direct spending limits.
Sec. 203. Total spending limits.
Sec. 204. Deficit limits.
                     Subtitle B--Reports and Orders

Sec. 211. Reports and orders.
Sec. 212. Spending and deficit limits enforcement.
Sec. 213. Spending reduction orders.
                     TITLE III--LONG-TERM BUDGETING

Sec. 300. Short title; purposes.
Sec. 301. CBO and OMB projections.
Sec. 302. GAO and OMB statements of the Federal Government's financial 
                            condition.
Sec. 303. Five-year Fiscal Sustainability Review.
Sec. 304. Long-term reconciliation.
Sec. 305. Long-term spending increase point of order.
                       TITLE IV--SPENDING REFORM

                   Subtitle A--Federal Program Sunset

Sec. 400. Short title.
Sec. 401. Review and abolishment of Federal agencies.
Sec. 402. Establishment of commission.
Sec. 403. Review of efficiency and need for Federal agencies.
Sec. 404. Criteria for review.
Sec. 405. Commission oversight.
Sec. 406. Rulemaking authority.
Sec. 407. Relocation of Federal employees.
Sec. 408. Program inventory.
Sec. 409. Definition of agency.
                 Subtitle B--Legislative Line-Item Veto

Sec. 410. Short title.
Sec. 411. Legislative line-item veto.
Sec. 412. Technical and conforming amendments.
Sec. 413. Rescission measures considered.
      Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse

Sec. 420. Short title.
Sec. 421. Establishment of Commission.
Sec. 422. Duties of the Commission.
Sec. 423. Powers of the Commission.
Sec. 424. Commission personnel matters.
Sec. 425. Termination of the Commission.
Sec. 426. Congressional consideration of reform proposals.
Sec. 427. Authorization of appropriations.
                   TITLE V--TRANSPARENCY IN BUDGETING

Sec. 500. Short title.
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal 
               Employees and Uniformed Services Personnel

Sec. 501. Civil Service Retirement System.
Sec. 502. Central Intelligence Agency Retirement and Disability System.
Sec. 503. Foreign Service Retirement and Disability System.
Sec. 504. Public Health Service Commissioned Corps Retirement System.
Sec. 505. National Oceanic and Atmospheric Administration Commissioned 
                            Officer Corps Retirement System.
Sec. 506. Coast Guard Military Retirement System.
 Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs 
                         for Federal Employees

Sec. 511. Federal Employees Health Benefits Fund.
Sec. 512. Funding Uniformed Services health benefits for all retirees.
Sec. 513. Effective date.
                       Subtitle C--Earmark Reform

Sec. 521. Joint Select Committee on Earmark Reform.
Sec. 522. Moratorium on consideration of earmarks.
                     Subtitle D--Public Debt Limit

Sec. 531. Limit on public debt.
Sec. 532. Repeal of the Gephardt Rule.
                   Subtitle E--Risk-Assumed Budgeting

Sec. 541. Market Adjusted Rate for Federal Credit Reform Act of 1990.
Sec. 542. CBO and GAO study.
                      TITLE VI--BUDGET ENFORCEMENT

Sec. 600. Short title.
                   Subtitle A--Enforcement Amendments

Sec. 601. Points of order in the House of Representatives and the 
                            Senate.
Sec. 602. Point of order waiver protection.
Sec. 603. Application of the limitation on reconciliation legislation.
Sec. 604. Twenty-percent limit on new direct spending in reconciliation 
                            legislation.
Sec. 605. Treatment of extraneous appropriations.
Sec. 606. Establishment of Discretionary Deficit Reduction Account.
Sec. 607. Establishment of Mandatory Deficit Reduction Account.
Sec. 608. Conforming amendment.
Subtitle B--Committee Term Limits Study in the House of Representatives

Sec. 611. Suspension of certain requirements regarding the House of 
                            Representatives committee term limits 
                            committee.
Sec. 612. Establishment of the select committee on requirements 
                            regarding the House of Representatives 
                            Budget Committee.
Sec. 613. Procedure.
Sec. 614. Composition.
Sec. 615. Reporting.
Sec. 616. Administrative provisions.
Sec. 617. Dissolution.
                   SUBTITLE C--JUDICIAL CONSIDERATION

Sec. 621. Judicial review.
Sec. 622. Severability.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Congressional Budget Office, the Government 
        Accountability Office, and the chairman of the Federal Reserve 
        have all found that unsustainable fiscal trends, driven by 
        Federal spending, represent a serious threat to the United 
        States economy and the prosperity of the American people;
            (2) the current Federal budget process fails to fully 
        allocate resources for national priorities and lacks the means 
        to control Federal spending, deficits, and debt;
            (3) budgeting is essential to governing; and
            (4) the effectiveness of the budget depends on the strength 
        of the budget process.

SEC. 3. PURPOSES.

    The purposes of this Act are as follows--
            (1) to reform and strengthen the Federal budget process by 
        enacting a comprehensive set of sound, reasonable, and 
        enforceable measures;
            (2) to properly focus the Federal budget process on 
        controlling spending, deficits, and debt;
            (3) to provide Congress with the tools for stronger and 
        more durable control of spending and deficits;
            (4) to increase transparency and provide a comprehensive 
        assessment of the budget's commitments; and
            (5) to reform the budget process to give Congress a 
        thorough assessment of the long-term budget commitments, to 
        establish sustainable benchmarks for major programs, and to 
        provide the means to reform major entitlement programs to 
        ensure sustainable levels of Federal spending, deficits, and 
        debt.

SEC. 4. 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, 2010.

                   TITLE I--A BINDING FEDERAL BUDGET

SEC. 100. SHORT TITLE.

    This Act may be cited as the ``Enhanced Spending Control and Budget 
Enforcement Act of 2009''.

                  Subtitle A--Joint Budget Resolution

SEC. 101. PURPOSES.

    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; and
            ``(2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures by the 
        Congress and the President;''.

SEC. 102. 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:


                                                 ``First Session
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    Committees submit views and estimates to Budget Committees.
 submits budget.
April 1.................................  Budget Committees report 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. JOINT RESOLUTION ON THE BUDGET.

    (a) Content of Joint Resolutions on the Budget.--Section 301(a)(4) 
of the Congressional Budget Act of 1974 is amended to read as follows:
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, Medicare, Medicaid, other direct spending (excluding 
        interest), and interest; and for emergencies (for the reserve 
        fund in section 317(b) and for military operations in section 
        317(C));''.
    (b) Additional Matters in Joint Resolution.--Section 301(b) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraphs (1), and (6) through (9).
            (2) Redesignate paragraphs (2), (3), (4), and (5) 
        accordingly.
            (3) Amend paragraph (3), as redesignated, to read as 
        follows:
            ``(3) set forth such other matters, and require such other 
        procedures, relating to the budget as may be appropriate to 
        carry out the purposes of the Act, but shall not include a 
        suspension or alteration of the application of the motion to 
        strike a provision as set forth in section 310(d)(2) or 
        (h)(2)(F).''.
    (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, Medicare, 
                Medicaid and other 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) and strike 
        the period and insert ``; and''.
            (2) Before subparagraph (B), 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) At the end, add the following new subparagraph:
                    ``(E) set forth, if required by subsection (f), the 
                calendar year in which, in the opinion of the Congress, 
                the goals for reducing unemployment set forth in 
                section 4(b) of the Employment Act of 1946 should be 
                achieved.''.
    (e) Budget Presentation.--After section 301(e)(3) add the following 
new paragraph:
            ``(4) Budget format.--In addition to the contents that may 
        be included in the report pursuant to paragraph (3), a 
        presentation of the functional categories may also be included 
        as follows:
                    ``(A) Principal federal obligations.--Activities 
                intrinsic to the Federal Government (including both 
                discretionary and mandatory spending) as follows:
                            ``(i) National defense;
                            ``(ii) International affairs;
                            ``(iii) Veterans benefits and services; and
                            ``(iv) Administration of justice.
                    ``(B) Federally supported domestic priorities.--The 
                total domestic discretionary spending levels as 
                follows:
                            ``(i) Total domestic discretionary 
                        spending.
                            ``(ii) Optional inclusion of additional 
                        specific recommended levels.
                    ``(C) Major domestic entitlements.--Major domestic 
                direct spending programs as follows:
                            ``(i) Medicare.
                            ``(ii) Medicaid.
                            ``(iii) Other direct spending.
                            ``(iv) Optional inclusion of additional 
                        specific recommended levels.
                    ``(D) General government and financial 
                management.--Funding for financing government 
                operations as follows:
                            ``(i) General government.
                            ``(ii) Net interest.
                            ``(iii) Allowances.
                            ``(iv) Offsetting receipts.''.
    (f) President's Budget Submission to 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 (excluding interest), and interest, 
        and for emergencies (for the reserve fund in section 317(b) and 
        for military operations in section 317(c).
            ``(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 requires in the preceding sentence for at least each of the 4 
ensuing fiscal years.''.
    (2) The third sentence of section 1105(a) of title 31, United 
States Code, is amended by inserting ``submission'' after ``budget''.
    (g) Limitation on the Content 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.

    (a) Amendments to Section 302.--Section 302 of the Congressional 
Budget Act of 1974 is amended--
            (1) in subsection (a), by striking paragraph (5); and
            (2) in subsection (f)(1)(A), by striking ``as reported''.
    (b) Amendments to Section 303 and Conforming Amendments.--(1) 
Section 303 of the Congressional Budget Act of 1974 is amended by 
striking ``(a) In General.--'', by striking ``has been agreed to'' and 
inserting ``takes effect in subsection (a)'', and by striking 
subsections (b) and (c); and
    (2) by striking its section heading and inserting the following new 
section heading: ``consideration of budget-related legislation before 
budget becomes law''.
    (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) shall 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 of Representatives 
        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. AMENDMENTS TO JOINT RESOLUTIONS ON THE BUDGET.

    (a) Definition.--Paragraph (4) of section 3 of the Congressional 
Budget Act of 1974 is amended to read as follows:
            ``(4) the term `joint resolution on the budget' means--
                    ``(A) a joint resolution setting forth the budget 
                for the United States Government for a fiscal year as 
                provided in section 301; and
                    ``(B) any other joint resolution revising the 
                budget for the United States Government for a fiscal 
                year as described in section 304.''.
    (b) Additional 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 inserting ``joint''.
    (B) Section 301 of the Congresional Budget Act of 1974 is further 
amended by striking the last sentence.
    (C)(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 
``annual adoption of concurrent resolution'' and inserting ``joint 
resolutions''; and
    (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, 
and for purposes of the enforcement of the Congressional Budget Act of 
1974, the chairman of the Budget Committee of the House of 
Representatives or the Senate, as applicable, may adjust levels as 
needed for the enforcement off of the budget resolution.''.
    (D) 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 
        ``Annual 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) by striking ``concurrent'' and inserting ``joint'' in 
        the item relating to section 305.
    (c) Conforming Amendments to the Rules of the House of 
Representatives.--Clauses 1(d)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), and 
4(f)(2) of rule X, clause 10 of rule XVIII, clause 10 of rule XX, and 
clauses 7 and 10 of rule XXI of the Rules of the House of 
Representatives are amended by striking ``concurrent'' each place it 
appears and inserting ``joint''.
    (d) 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''.
    (e) 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(b)) 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''.
    (f) 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.''.

                 Subtitle B--Budgeting for Emergencies

SEC. 111. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

    (a) Elimination of Emergency Designation.--Sections 251(b)(2)(A), 
252(e), and 252(d)(4)(B) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 are repealed.
    (b) Elimination of Emergency Adjustments.--Section 314(b) of the 
Congressional Budget Act of 1974 is amended by striking paragraph (1) 
and by redesignating paragraphs (2) through (5) as paragraphs (1) 
through (4), respectively.
    (c) Conforming Amendment.--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).

SEC. 112. EMERGENCY CRITERIA.

    (a) Definition of Emergency.--Section 3 of the Congressional Budget 
and Impoundment Control Act of 1974 (as amended by section 105(f)) 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.''.
    (b) Conforming Amendment.--The term ``emergency'' has the meaning 
given to such term in section 3 of the Congressional Budget and 
Impoundment Control Act of 1974.

SEC. 113. 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. 114. 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 sentence: ``Such budget submission 
shall also comply with the requirements of subsections (b) and (c) of 
section 317 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. 115. 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) Adjustment authority.--Except as provided by 
        subsection (b)(4), if a bill or joint resolution is reported, 
        or an amendment is offered thereto (or considered as adopted) 
        or a conference report is filed thereon, that provides new 
        budget authority (and outlays flowing therefrom), and such 
        provision is designated as an emergency pursuant to this 
        section, the chairman of the Committee on the Budget of the 
        House of Representatives or the Senate, as applicable, shall 
        make adjustments to the allocations and aggregates set forth in 
        the most recently agreed to joint resolution on the budget, for 
        the purpose of enforcing the points of order set forth in title 
        III of the Congressional Budget Act of 1974, up to the amount 
        of such provisions if such chairman determines and certifies, 
        pursuant to the guidelines referred to in section 113 of the 
        Spending, Deficit, and Debt Control Act of 2009, the portion 
        (if any) of the amount so specified that is for an emergency 
        within the meaning of section 3(12).
            ``(2) Limitation on adjustment authority.--The adjustments 
        referred to in paragraph (1) made to the allocations made 
        pursuant to section 302(a) shall not exceed the amount reserved 
        for emergencies pursuant to the requirements of subsections (b) 
        and (c).
            ``(3) Emergency amounts exceeding adjustment authority.--
        Before any adjustment is made pursuant to this section for any 
        bill, joint resolution, concurrent resolution, or conference 
        report that designates a provision an emergency, the enactment 
        of which causes the total amount of the reserve fund to be 
        exceeded:
                    ``(A) The chairman of the Committee on the Budget 
                of the House of Representatives or the Senate shall 
                convene a meeting of that committee, where it shall be 
                in order, subject to the terms set forth in this 
                section, for one motion described in subparagraph (B) 
                to be made to authorize the chairman to make 
                adjustments above the maximum amount of adjustments set 
                forth in subsection (a).
                    ``(B) The motion referred to in subparagraph (A) 
                shall be in the following form: `I move that the 
                chairman of the Committee on the Budget be authorized 
                to adjust the allocations and aggregates set forth in 
                the joint resolution on the budget for fiscal year ____ 
                by the following amount: $____ for fiscal year ____.', 
                with the second blank being filled in with amount 
                determined by the chairman of the Committee on the 
                Budget and the first and third blank being filled in by 
                the applicable fiscal year.
                    ``(C) The motion set forth in subparagraph (B) 
                shall be open for debate and amendment, but any 
                amendment offered thereto is only in order if limited 
                to changing an amount in the motion.
                    ``(D) The chairman of the applicable Committee on 
                the Budget may make any adjustments he deems necessary 
                under this section if he determines the enactment of 
                any provision designated as an emergency is essential 
                to respond to an urgent and imminent need, the chairman 
                determines that exceptional circumstances exist and the 
                committee cannot convene to consider the motion 
                referred to in this section in a timely fashion.
            ``(4) The adjustments made pursuant to subsection (a)(1) or 
        (2) shall--
                    ``(A) apply while that bill, joint resolution, 
                conference report, or amendment is under consideration; 
                and
                    ``(B) take effect upon the enactment of that 
                legislation.
            ``(5) Such bill or joint resolution shall be referred to 
        the Committee on the Budget of the House of Representatives or 
        the Senate with instructions to report it without amendment, 
        other than that specified in paragraph (2), 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 paragraph 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.
            ``(6) An amendment to such a bill or joint resolution 
        referred to in this subsection shall only consist of an 
        exemption from section 251 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 
        113 of the Spending, Deficit, and Debt Control Act of 2009, 
        that such budget authority is for an emergency within the 
        meaning of section 3(12).
    ``(b) Reserve Fund.--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:
            ``(1) The average of the enacted levels of budget authority 
        for emergencies (other than those covered by subsection (c)) in 
        the 10 fiscal years preceding the current year; omitting in 
        such average the fiscal years with the highest and lowest 
        levels of budget authority.
            ``(2) The average of the levels of outlays for emergencies 
        in the 10 fiscal years preceding the current year flowing from 
        the budget authority referred to in paragraph (1), but only in 
        the fiscal year for which such budget authority first becomes 
        available for obligation.
            ``(3) The adjustments made pursuant to subsection (a)(1) or 
        (2) shall--
                    ``(A) apply while that bill, joint resolution, 
                conference report, or amendment is under consideration; 
                and
                    ``(B) take effect upon the enactment of that 
                legislation.
            ``(4) Such bill or joint resolution shall be referred to 
        the Committee on the Budget of the House of Representatives or 
        the Senate with instructions to report it without amendment, 
        other than that specified in paragraph (2), 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 paragraph 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.
            ``(5) An amendment to such a bill or joint resolution 
        referred to in this subsection shall only consist of an 
        exemption from section 251 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 
        113 of the Spending, Deficit, and Debt Control Act of 2009, 
        that such budget authority is for an emergency within the 
        meaning of section 3(12).
    ``(c) Treatment of Emergencies To Fund Certain Military 
Operations.--Whenever the Committee on Appropriations reports any bill 
or joint resolution that provides budget authority for any emergency 
that is a threat to national security and the funding of which carries 
out a military operation authorized by a declaration of war or a joint 
resolution authorizing the use of military force (or economic 
assistance funding in furtherance of such operation) and the report 
accompanying that bill or joint resolution identifies any provision 
that increases outlays or provides budget authority (and the outlays 
flowing therefrom) for such emergency, the enactment of which causes 
the total amount of budget authority or outlays provided for 
emergencies for the budget year in the joint resolution on the budget 
(pursuant to section 301(a)(4)) to be exceeded:
            ``(1) Such bill or joint resolution shall be referred to 
        the Committee on the Budget of the House of Representatives or 
        the Senate, as the case may be, with instructions to report it 
        without amendment, other than that specified in paragraph (2), 
        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 paragraph 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.
            ``(2) An amendment to such a bill or joint resolution 
        referred to in this subsection shall only consist of an 
        exemption from section 251 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 
        113 of the Spending, Deficit, and Debt Control Act of 2009, 
        that such budget authority is for an emergency within the 
        meaning of section 3(12).
            ``(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.''.
    (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. 116. 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 may 
be amended.''.

SEC. 117. 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. 118. PROHIBITION ON AMENDMENTS TO THE EMERGENCY RESERVE FUND.

    (a) Point of Order.--Section 305 of the Congressional Budget Act of 
1974 (as amended by section 103(f)) 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 the 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),''.

                      Subtitle C--Biennial Budget

SEC. 121. EFFECTIVE DATE.

    The provisions of this subtitle shall take effect on January 1 of 
the calendar year after the year of the enactment of this Act.

SEC. 122. REVISION OF TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631) 
is amended to read as follows:

                              ``timetable

    ``Sec. 300.  (a) In General.--Except as provided by subsection (b), 
the timetable with respect to the congressional budget process for any 
Congress (beginning with the One Hundred Twelfth Congress or a 
subsequent Congress, as applicable) is as follows:


                                                 ``First Session
On or before:                             Action to be completed:
First Monday in February................  President submits budget recommendations.
February 15.............................  Congressional Budget Office submits report to Budget Committees.
Not later than 6 weeks after budget       Committees submit views and estimates to Budget Committees.
 submission.
April 1.................................  Budget Committees report joint resolution on the biennial budget.
May 15..................................  Congress completes action on joint resolution on the biennial budget.
May 15..................................  Biennial appropriation bills may be considered in the House of
                                           Representatives.
June 10.................................  House Appropriations Committee reports last biennial appropriation
                                           bill.
June 30.................................  House completes action on biennial appropriation bills.
October 1...............................  Biennium begins.
 



                                                ``Second Session
On or before:                             Action to be completed:
February 15.............................  President submits budget review.
Not later than 6 weeks after President    Congressional Budget Office submits report to Budget Committees.
 submits budget review.
The last day of the session.............  Congress completes action on bills and resolutions authorizing new
                                           budget authority for the succeeding biennium.
 

    ``(b) Special Rule.--In the case of any first session of Congress 
that begins in any year during which the term of a President (except a 
President who succeeds himself) begins, the following dates shall 
supersede those set forth in subsection (a):


                                                 ``First Session
On or before:                             Action to be completed:
First Monday in April...................  President submits budget recommendations.
April 20................................  Committees submit views and estimates to Budget Committees.
May 15..................................  Budget Committees report joint resolution on the biennial budget.
June 1..................................  Congress completes action on joint resolution on the biennial budget.
June 1..................................  Biennial appropriation bills may be considered in the House of
                                           Representatives.
July 1..................................  House Appropriations Committee reports last biennial appropriation
                                           bill.
July 20.................................  House completes action on biennial appropriation bills.
October 1...............................  Biennium begins.''.
 

SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT 
              CONTROL ACT OF 1974.

    (a) Declaration of Purpose.--Section 2(2) of the Congressional 
Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended 
by striking ``each year'' and inserting ``biennially''.
    (b) Definitions.--
            (1) Budget resolution.--Section 3(4) of such Act (2 U.S.C. 
        622(4)) is amended by striking ``fiscal year'' each place it 
        appears and inserting ``biennium''.
            (2) Biennium.--Section 3 of such Act (2 U.S.C. 622) (as 
        amended by section 113(a)) is further amended by adding at the 
        end the following new paragraph:
            ``(13) The term `biennium' means the period of 2 
        consecutive fiscal years beginning on October 1 of any odd-
        numbered year.''.
    (c) Biennial Joint Resolution on the Budget.--
            (1) Contents of resolution.--Section 301(a) of such Act (2 
        U.S.C. 632(a)) is amended--
                    (A) in the matter preceding paragraph (1) by--
                            (i) striking ``April 15 of each year'' and 
                        inserting ``May 15 of each odd-numbered year'';
                            (ii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the first place it 
                        appears and inserting ``the biennium beginning 
                        on October 1 of such year'';
                            (iii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the second place it 
                        appears and inserting ``each fiscal year in 
                        such period''; and
                            (iv) striking ``each of the four ensuing 
                        fiscal years'' and inserting ``each fiscal year 
                        in the next 2 bienniums'';
                    (B) in paragraph (6), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''; and
                    (C) in paragraph (7), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''.
            (2) Additional matters.--Section 301(b) of such Act (2 
        U.S.C. 632(b)) is amended--
                    (A) in paragraph (3), by striking ``for such fiscal 
                year'' and inserting ``for either fiscal year in such 
                biennium''; and
                    (B) in paragraph (7), by striking ``for the first 
                fiscal year'' and inserting ``for each fiscal year in 
                the biennium''.
            (3) Views of other committees.--Section 301(d) of such Act 
        (2 U.S.C. 632(d)) is amended by inserting ``(or, if applicable, 
        as provided by section 300(b))'' after ``United States Code''.
            (4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C. 
        632(e)) is amended by--
                    (A) striking ``fiscal year'' and inserting 
                ``biennium''; and
                    (B) inserting after the second sentence the 
                following: ``On or before April 1 of each odd-numbered 
                year (or, if applicable, as provided by section 
                300(b)), the Committee on the Budget of each House 
                shall report to its House the joint resolution on the 
                budget referred to in subsection (a) for the biennium 
                beginning on October 1 of that year.''.
            (5) Goals for reducing unemployment.--Section 301(f) of 
        such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal 
        year'' each place it appears and inserting ``biennium''.
            (6) Economic assumptions.--Section 301(g)(1) of such Act (2 
        U.S.C. 632(g)(1)) is amended by striking ``for a fiscal year'' 
        and inserting ``for a biennium''.
            (7) Section heading.--The section heading of section 301 of 
        such Act is amended by striking ``annual'' and inserting 
        ``biennial''.
            (8) Table of contents.--The item relating to section 301 in 
        the table of contents set forth in section 1(b) of such Act is 
        amended by striking ``Annual'' and inserting ``Biennial''.
    (d) Committee Allocations.--Section 302 of such Act (2 U.S.C. 633) 
is amended--
            (1) in subsection (a)(1) by--
                    (A) striking ``for the first fiscal year of the 
                resolution,'' and inserting ``for each fiscal year in 
                the biennium,'';
                    (B) striking ``for that period of fiscal years'' 
                and inserting ``for all fiscal years covered by the 
                resolution''; and
                    (C) striking ``for the fiscal year of that 
                resolution'' and inserting ``for each fiscal year in 
                the biennium'';
            (2) in subsection (f)(1), by striking ``for a fiscal year'' 
        and inserting ``for a biennium'';
            (3) in subsection (f)(1), by striking ``first fiscal year'' 
        and inserting ``either fiscal year of the biennium'';
            (4) in subsection (f)(2)(A), by--
                    (A) striking ``first fiscal year'' and inserting 
                ``each fiscal year of the biennium''; and
                    (B) striking ``the total of fiscal years'' and 
                inserting ``the total of all fiscal years covered by 
                the resolution''; and
            (5) in subsection (g)(1)(A), by striking ``April'' and 
        inserting ``May''.
    (e) Section 303 Point of Order.--Section 303 of such Act (2 U.S.C. 
634(a)) is amended by striking ``for a fiscal year'' and inserting 
``for a biennium'' and by striking ``the first fiscal year'' and 
inserting ``each fiscal year of the biennium''.
    (f) Permissible Revisions of Joint Resolutions on the Budget.--
Section 304 of such Act (2 U.S.C. 635) is amended--
            (1) by striking ``fiscal year'' the first two places it 
        appears and inserting ``biennium'';
            (2) by striking ``for such fiscal year''; and
            (3) by inserting before the period ``for such biennium''.
    (g) Procedures for Consideration of Budget Resolutions.--Section 
305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended by striking 
``fiscal year'' and inserting ``biennium''.
    (h) Completion of House Committee Action on Appropriation Bills.--
Section 307 of such Act (2 U.S.C. 638) is amended--
            (1) by striking ``each year'' and inserting ``each odd-
        numbered year (or, if applicable, as provided by section 
        300(b), July 1)'';
            (2) by striking ``annual'' and inserting ``biennial'';
            (3) by striking ``fiscal year'' and inserting ``biennium''; 
        and
            (4) by striking ``that year'' and inserting ``each odd-
        numbered year''.
    (i) Completion of House Action on Regular Appropriation Bills.--
Section 309 of such Act (2 U.S.C. 640) is amended--
            (1) by striking ``It'' and inserting ``Except whenever 
        section 300(b) is applicable, it'';
            (2) by inserting ``of any odd-numbered calendar year'' 
        after ``July'';
            (3) by striking ``annual'' and inserting ``biennial''; and
            (4) by striking ``fiscal year'' and inserting ``biennium''.
    (j) Reconciliation Process.--Section 310 of such Act (2 U.S.C. 641) 
is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``any fiscal year'' and inserting ``any 
        biennium'';
            (2) in subsection (a)(1), by striking ``such fiscal year'' 
        each place it appears and inserting ``any fiscal year covered 
        by such resolution''; and
            (3) by striking subsection (f) and redesignating subsection 
        (g) as subsection (f).
    (k) Section 311 Point of Order.--
            (1) In the house of representatives.--Section 311(a)(1) of 
        such Act (2 U.S.C. 642(a)) is amended--
                    (A) by striking ``for a fiscal year'' and inserting 
                ``for a biennium'';
                    (B) by striking ``the first fiscal year'' each 
                place it appears and inserting ``either fiscal year of 
                the biennium''; and
                    (C) by striking ``that first fiscal year'' and 
                inserting ``each fiscal year in the biennium''.
            (2) In the senate.--Section 311(a)(2) of such Act is 
        amended--
                    (A) in subparagraph (A), by striking ``for the 
                first fiscal year'' and inserting ``for either fiscal 
                year of the biennium''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``that first fiscal year'' 
                        the first place it appears and inserting ``each 
                        fiscal year in the biennium''; and
                            (ii) by striking ``that first fiscal year 
                        and the ensuing fiscal years'' and inserting 
                        ``all fiscal years''.
            (3) Social security levels.--Section 311(a)(3) of such Act 
        is amended by--
                    (A) striking ``for the first fiscal year'' and 
                inserting ``each fiscal year in the biennium''; and
                    (B) striking ``that fiscal year and the ensuing 
                fiscal years'' and inserting ``all fiscal years''.
    (l) Maximum Deficit Amount Point of Order.--Section 312(c) of the 
Congressional Budget Act of 1974 (2 U.S.C. 643) is amended--
            (1) by striking ``for a fiscal year'' and inserting ``for a 
        biennium'';
            (2) in paragraph (1), by striking ``first fiscal year'' and 
        inserting ``either fiscal year in the biennium'';
            (3) in paragraph (2), by striking ``that fiscal year'' and 
        inserting ``either fiscal year in the biennium''; and
            (4) in the matter following paragraph (2), by striking 
        ``that fiscal year'' and inserting ``the applicable fiscal 
        year''.

SEC. 124. AMENDMENTS TO RULES OF THE HOUSE OF REPRESENTATIVES.

    (a) Clause 4(a)(1)(A) of rule X of the Rules of the House of 
Representatives is amended by inserting ``odd-numbered'' after 
``each''.
    (b) Clause 4(a)(4) of rule X of the Rules of the House of 
Representatives is amended by striking ``fiscal year'' and inserting 
``biennium''.
    (c) Clause 4(b)(2) of rule X of the Rules of the House of 
Representatives is amended by striking ``each fiscal year'' and 
inserting ``the biennium''.
    (d) Clause 4(b) of rule X of the Rules of the House of 
Representatives is amended by striking ``and'' at the end of 
subparagraph (5), by striking the period and inserting ``; and'' at the 
end of subparagraph (6), and by adding at the end the following new 
subparagraph:
            ``(7) use the second session of each Congress to study 
        issues with long-term budgetary and economic implications, 
        including holding hearings to receive testimony from committees 
        of jurisdiction to identify problem areas and to report on the 
        results of oversight; and by January 1 of each odd-number year, 
        issuing a report to the Speaker which identifies the key issues 
        facing the Congress in the next biennium.''.
    (e) Clause 4(e) of rule X of the Rules of the House of 
Representatives is amended by striking ``annually'' each place it 
appears and inserting ``biennially'' and by striking ``annual'' and 
inserting ``biennial''.
    (f) Clause 4(f) of rule X of the Rules of the House of 
Representatives is amended--
            (1) by inserting ``during each odd-numbered year'' after 
        ``submits his budget'';
            (2) by striking ``fiscal year'' the first place it appears 
        and inserting ``biennium''; and
            (3) by striking ``that fiscal year'' and inserting ``each 
        fiscal year in such ensuing biennium''.
    (g) Clause 11(i) of rule X of the Rules of the House of 
Representatives is amended by striking ``during the same or preceding 
fiscal year''.
    (h) Clause 3(d)(2)(A) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``five'' both places it appears 
and inserting ``six''.
    (i) Clause 5(a)(1) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``fiscal year after September 15 
in the preceding fiscal year'' and inserting ``biennium after September 
15 of the calendar year in which such biennium begins''.

SEC. 125. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATION 
              ACTS.

    Section 105 of title 1, United States Code, is amended to read as 
follows:
``Sec. 105. Title and style of appropriations Acts
    ``(a) The style and title of all Acts making appropriations for the 
support of the Government shall be as follows: `An Act making 
appropriations (here insert the object) for each fiscal year in the 
biennium of fiscal years (here insert the fiscal years of the 
biennium).'.
    ``(b) All Acts making regular appropriations for the support of the 
Government shall be enacted for a biennium and shall specify the amount 
of appropriations provided for each fiscal year in such period.
    ``(c) For purposes of this section, the term `biennium' has the 
same meaning as in section 3(13) of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 622(13)).''.

SEC. 126. MULTIYEAR AUTHORIZATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 115(a)) is further amended by adding at the end 
the following new section:

              ``multiyear authorizations of appropriations

    ``Sec. 318.  (a) It shall not be in order in the House of 
Representatives or the Senate to consider any measure that contains a 
specific authorization of appropriations for any purpose unless the 
measure includes such a specific authorization of appropriations for 
that purpose for not less than each fiscal year in one or more 
bienniums.
    ``(b)(1) For purposes of this section, a specific authorization of 
appropriations is an authorization for the enactment of an amount of 
appropriations or amounts not to exceed an amount of appropriations 
(whether stated as a sum certain, as a limit, or as such sums as may be 
necessary) for any purpose for a fiscal year.
    ``(2) Subsection (a) does not apply with respect to an 
authorization of appropriations for a single fiscal year for any 
program, project, or activity if the measure containing that 
authorization includes a provision expressly stating the following: 
`Congress finds that no authorization of appropriation will be required 
for [Insert name of applicable program, project, or activity] for any 
subsequent fiscal year.'.
    ``(c) For purposes of this section, the term `measure' means a 
bill, joint resolution, amendment, motion, or conference report.''.
    (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 adding after the item relating to 
section 317 the following new item:

``Sec. 318. Multiyear authorizations of appropriations.''.

SEC. 127. GOVERNMENT STRATEGIC AND PERFORMANCE PLANS ON A BIENNIAL 
              BASIS.

    (a) Strategic Plans.--Section 306 of title 5, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2010'';
            (2) in subsection (b)--
                    (A) by striking ``at least every three years'' and 
                all that follows thereafter and inserting ``at least 
                every 4 years, except that strategic plans submitted by 
                September 30, 2010, shall be updated and revised by 
                September 30, 2012''; and
                    (B) by striking ``five years forward'' and 
                inserting ``six years forward''; and
            (3) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and adding ``including 
        a strategic plan submitted by September 30, 2010, meeting the 
        requirements of subsection (a)''.
    (b) Budget Contents and Submission to Congress.--Paragraph (28) of 
section 1105(a) of title 31, United States Code, is amended by striking 
``beginning with fiscal year 1999, a'' and inserting ``beginning with 
fiscal year 2012, a biennial''.
    (c) Performance Plans.--Section 1115 of title 31, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter before paragraph (1) by striking 
                ``an annual'' and inserting ``a biennial'';
                    (B) in paragraph (1) by inserting after ``program 
                activity'' the following: ``for both years 1 and 2 of 
                the biennial plan'';
                    (C) in paragraph (5) by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (6) by striking the period and 
                inserting a semicolon; and inserting ``and'' after the 
                inserted semicolon; and
                    (E) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.'';
            (2) in subsection (d) by striking ``annual'' and inserting 
        ``biennial''; and
            (3) in paragraph (6) of subsection (g) by striking 
        ``annual'' and inserting ``biennial''.
    (d) Managerial Accountability and Flexibility.--Section 9703 of 
title 31, United States Code, relating to managerial accountability, is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence by striking ``annual''; 
                and
                    (B) by striking ``section 1105(a)(29)'' and 
                inserting ``section 1105(a)(28)'';
            (2) in subsection (e)--
                    (A) in the first sentence by striking ``one or'' 
                before ``two years'';
                    (B) in the second sentence by striking ``a 
                subsequent year'' and inserting ``for a subsequent 2-
                year period''; and
                    (C) in the third sentence by striking ``three'' and 
                inserting ``four''.
    (e) Strategic Plans.--Section 2802 of title 39, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2010'';
            (2) in subsection (b), by striking ``at least every three 
        years'' and inserting ``at least every 4 years except that 
        strategic plans submitted by September 30, 2010, shall be 
        updated and revised by September 30, 2013'';
            (3) in subsection (b), by striking ``five years forward'' 
        and inserting ``six years forward''; and
            (4) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and inserting 
        ``including a strategic plan submitted by September 30, 2010, 
        meeting the requirements of subsection (a)''.
    (f) Performance Plans.--Section 2803(a) of title 39, United States 
Code, is amended--
            (1) in the matter before paragraph (1), by striking ``an 
        annual'' and inserting ``a biennial'';
            (2) in paragraph (1), by inserting after ``program 
        activity'' the following: ``for both years 1 and 2 of the 
        biennial plan'';
            (3) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (4) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (5) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.''.
    (g) Committee Views of Plans and Reports.--Section 301(d) of the 
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the 
end ``Each committee of the Senate or the House of Representatives 
shall review the strategic plans, performance plans, and performance 
reports, required under section 306 of title 5, United States Code, and 
sections 1115 and 1116 of title 31, United States Code, of all agencies 
under the jurisdiction of the committee. Each committee may provide its 
views on such plans or reports to the Committee on the Budget of the 
applicable House.''.

SEC. 128. BIENNIAL APPROPRIATION BILLS.

    (a) In the House of Representatives.--Clause 2(a) of rule XXI of 
the Rules of the House of Representatives is amended by adding at the 
end the following new subparagraph:
    ``(3)(A) Except as provided by subdivision (B), an appropriation 
may not be reported in a general appropriation bill (other than a 
supplemental appropriation bill), and may not be in order as an 
amendment thereto, unless it provides new budget authority or 
establishes a level of obligations under contract authority for each 
fiscal year of a biennium.
    ``(B) Subdivision (A) does not apply with respect to an 
appropriation for a single fiscal year for any program, project, or 
activity if the bill or amendment thereto containing that appropriation 
includes a provision expressly stating the following: `Congress finds 
that no additional funding beyond one fiscal year will be required and 
the [Insert name of applicable program, project, or activity] will be 
completed or terminated after the amount provided has been expended.'.
    ``(C) For purposes of paragraph (b), the statement set forth in 
subdivision (B) with respect to an appropriation for a single fiscal 
year for any program, project, or activity may be included in a general 
appropriation bill or amendment thereto.''.
    (b) Conforming Amendment.--Clause 5(b)(1) of rule XXII of the House 
of Representatives is amended by striking ``or (C)'' and inserting ``or 
(3) or 2(C)''.

SEC. 129. ASSISTANCE BY FEDERAL AGENCIES TO STANDING COMMITTEES OF THE 
              SENATE AND THE HOUSE OF REPRESENTATIVES.

    (a) Information Regarding Agency Appropriations Requests.--To 
assist each standing committee of the House of Representatives and the 
Senate in carrying out its responsibilities, the head of each Federal 
agency which administers the laws or parts of laws under the 
jurisdiction of such committee shall provide to such committee such 
studies, information, analyses, reports, and assistance as may be 
requested by the chairman and ranking minority member of the committee.
    (b) Information Regarding Agency Program Administration.--To assist 
each standing committee of the House of Representatives and the Senate 
in carrying out its responsibilities, the head of any agency shall 
furnish to such committee documentation, containing information 
received, compiled, or maintained by the agency as part of the 
operation or administration of a program, or specifically compiled 
pursuant to a request in support of a review of a program, as may be 
requested by the chairman and ranking minority member of such 
committee.
    (c) Summaries by Comptroller General.--Within 30 days after the 
receipt of a request from a chairman and ranking minority member of a 
standing committee having jurisdiction over a program being reviewed 
and studied by such committee under this section, the Comptroller 
General of the United States shall furnish to such committee summaries 
of any audits or reviews of such program which the Comptroller General 
has completed during the preceding 6 years.
    (d) Congressional Assistance.--Consistent with their duties and 
functions under law, the Comptroller General of the United States, the 
Director of the Congressional Budget Office, and the Director of the 
Congressional Research Service shall continue to furnish (consistent 
with established protocols) to each standing committee of the House of 
Representatives or the Senate such information, studies, analyses, and 
reports as the chairman and ranking minority member may request to 
assist the committee in conducting reviews and studies of programs 
under this section.

             Subtitle D--Prevention of Government Shutdown

SEC. 131. AMENDMENT TO TITLE 31.

    (a) In General.--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 (or, 
if applicable, for each fiscal year in a biennium) does not become law 
before the beginning of such fiscal year or a joint resolution making 
continuing appropriations is not in effect, there are appropriated, out 
of any money in the Treasury not otherwise appropriated, and out of 
applicable corporate or other revenues, receipts, and funds, excluding 
any budget authority designated as an emergency or temporary funding 
for projects or activities that are not part of ongoing operations, to 
such sums as may be necessary to continue any 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) 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 lower 
of--
            ``(A) the rate of operations provided for in the regular 
        appropriation Act providing for such project or activity for 
        the preceding fiscal year;
            ``(B) 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;
            ``(C) the rate of operations provided for in the regular 
        appropriation bill as passed by the House of Representatives or 
        the Senate for the fiscal year in question, except that the 
        lower of these two versions shall be ignored for any project or 
        activity for which there is a budget request if no funding is 
        provided for that project or activity in either version; or
            ``(D) the annualized rate of operations provided for in the 
        most recently enacted joint resolution making continuing 
        appropriations for part of that fiscal year or any funding 
        levels established under the provisions of this Act.
    ``(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--
            ``(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
            ``(B) the last day of such fiscal year.
    ``(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.
    ``(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.
    ``(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.
    ``(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)--
            ``(1) makes an appropriation, makes funds available, or 
        grants authority for such 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 project or activity to continue for such 
        period.
    ``(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:
            ``(1) Agriculture, rural development, Food and Drug 
        Administration, and related agencies programs.
            ``(2) The Department of Defense.
            ``(3) Energy and water development, and related agencies.
            ``(4) State, foreign operations, and related programs.
            ``(5) The Department of Homeland Security.
            ``(6) The Department of the Interior, Environmental 
        Protection Agency, and related agencies.
            ``(7) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(8) Military construction, veterans affairs, and related 
        agencies.
            ``(9) Science, the Departments of State, Justice, and 
        Commerce, and related agencies.
            ``(10) The Departments of Transportation, Housing and Urban 
        Development, and related agencies.
            ``(11) The Legislative Branch.
            ``(12) Financial services and general government.''.
    (b) Clerical Amendment.--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.''.

                        Subtitle E--The Baseline

SEC. 141. ELIMINATION OF INFLATION ADJUSTMENT.

    Section 257(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) in paragraph (1) by striking ``for inflation as 
        specified in paragraph (5),''; and
            (2) by striking paragraph (5) and redesignating paragraph 
        (6) as paragraph (5).

SEC. 142. 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 at least 
        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 
        at least 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 
        establishes or expands 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 at least 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, is amended by 
adding at the end the following new paragraphs:
            ``(36) 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.
            ``(37) 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 at least 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 no 
higher than those set forth in the discretionary spending limits under 
section 251(b) 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 adjusted levels no 
higher than those for the most recent fiscal year for which such levels 
were in effect).''.

SEC. 143. 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.''; 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. 144. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.

    (a) Comparable Levels.--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) Sources of Spending Growth.--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, 
revenue, deficit and debt 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) Comparison of Levels.--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. 145. TREATMENT OF EMERGENCIES.

    Section 257(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (as amended by section 141) is further amended by adding at 
the end the following new paragraph:
            ``(6) Emergencies.--Budgetary resources for emergencies 
        shall be at the level provided in the reserve fund for 
        emergencies for that fiscal year pursuant to section 301(a)(4) 
        of the Congressional Budget Act of 1974.''.

             TITLE II--SPENDING LIMITS AND DEFICIT CONTROL

SEC. 200. SHORT TITLE.

    This title may be cited as the ``Spending Enforcement and Reform 
Act of 2009''.

            Subtitle A--Spending Limits and Deficit Control

SEC. 201. DISCRETIONARY SPENDING LIMITS.

    (a) Discretionary Spending Limits.--Section 251 of the Balanced 
Budget and Emergency Deficit Control of Act of 1985 is amended to read 
as follows:
    ``(a) Discretionary Spending Limits.--For each fiscal year set 
forth in this subsection, the total level of discretionary spending for 
all nonexempt discretionary spending programs, projects, and activities 
shall not exceed the following levels:
            ``(1) with respect to fiscal year 2011--
                    ``(A) $1,058,021,000,000 in new budget authority; 
                and
                    ``(B) $1,216,924,000,000 in outlays;
            ``(2) with respect to fiscal year 2012--
                    ``(A) $1,068,938,000,000 in new budget authority; 
                and
                    ``(B) $1,164,593,000,000 in outlays;
            ``(3) with respect to fiscal year 2013--
                    ``(A) $1,079,387,000,000 in new budget authority; 
                and
                    ``(B) $1,158,941,000,000 in outlays;
            ``(4) with respect to fiscal year 2014--
                    ``(A) $1,094,344,000,000 in new budget authority; 
                and
                    ``(B) $1,160,021,000,000 in outlays;
            ``(5) with respect to fiscal year 2015--
                    ``(A) $1,113,727,000,000 in new budget authority; 
                and
                    ``(B) $1,168,741,000,000 in outlays;
            ``(6) with respect to fiscal year 2016--
                    ``(A) $1,138,053,000,000 in new budget authority; 
                and
                    ``(B) $1,189,434,000,000 in outlays;
            ``(7) with respect to fiscal year 2017--
                    ``(A) $1,162,849,000,000 in new budget authority; 
                and
                    ``(B) $1,207,686,000,000 in outlays; and
            ``(8) with respect to fiscal year 2018--
                    ``(A) $1,187,516,000,000 in new budget authority; 
                and
                    ``(B) $1,226,788,000,000 in outlays; and
            ``(9) with respect to fiscal year 2019--
                    ``(A) $1,214,197,000,000 in new budget authority; 
                and
                    ``(B) $1,256,883,000,000 in outlays.
    ``(b) Sequence of Sequestration Reports.--Within 15 calendar days 
after Congress adjourns to end a session and on the same day as a 
spending reduction ordered under sections 252A, 252B, and 253, but 
prior to any spending reduction required by sections 252A, 252B, and 
253, OMB shall issue a final spending reduction report to reduce an 
excess spending amount.
    ``(c) Spending Reduction Order.--A spending reduction ordered 
pursuant to subsection (b) shall be implemented using the procedures 
set forth in section 256.''.
    (b) Conforming Amendment.--The item relating to section 251 in the 
table of contents set forth in 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended to read as follows:

``Sec. 251. Discretionary spending limits.''.

SEC. 202. DIRECT SPENDING LIMITS.

    (a) Control of Direct Spending.--The Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding after section 252 the 
following new section:

``SEC. 252A. DIRECT SPENDING LIMITS.

    ``(a) Direct Spending Limits.--For fiscal year 2011 and each 
ensuing fiscal year through fiscal year 2019, the total level of direct 
spending for all direct spending programs, projects, and activities for 
any such fiscal year shall not exceed the total level of spending for 
all such programs, projects, and activities for the previous fiscal 
year after the direct spending for each such program, project, or 
activity is increased by the calculation made pursuant to section 257.
    ``(b) Sequence of Sequestration Reports.--Within 15 calendar days 
after Congress adjourns to end a session and on the same day as a 
spending reduction ordered under sections 251, 253, 252B, but after any 
spending reduction required by section 251 and section 252A, OMB shall 
issue a final spending reduction report to reduce an excess spending 
amount (if any remains).
    ``(c) Spending Reduction Order.--A spending reduction ordered 
pursuant to subsection (b) shall be implemented using the procedures 
set forth in section 256.''.
    (b) Conforming Amendment.--The table of contents set forth in 
250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 
is amended by amending the item relating to section 256 to read as 
follows:

``Sec. 252A. Enforcing direct spending limits.''.

SEC. 203. TOTAL SPENDING LIMITS.

    (a) Total Spending Limits.--After section 252A of the Balanced 
Budget and Emergency Deficit Control Act of 1985, add the following new 
section:

``SEC. 252B. TOTAL SPENDING LIMITS.

    ``(a) Projections.--
            ``(1) Spending projections.--For the current fiscal year 
        and each subsequent ten fiscal years:
                    ``(A) OMB shall prepare a report comparing 
                projected total spending under section 257 and the 
                total spending limits in subsection (d), and include 
                such report in the budget as submitted by the President 
                annually under section 1105(a) of title 31, United 
                States Code.
                    ``(B) CBO shall prepare a report comparing 
                projected total spending under section 257 and the 
                total spending limits in subsection (d) and include 
                such report in the CBO annual baseline and reestimate 
                of the President's budget.
            ``(2) Inclusion in spending reduction orders.--Reports 
        prepared pursuant to subsection (a) shall be included in the 
        spending reduction report set forth in subsection (b).
    ``(b) Spending Reduction Report.--Within 15 calendar days after 
Congress adjourns to end a session and on the same day as a spending 
reduction ordered under sections 251, 252A, and 253, but after any 
spending reduction required by sections 251 and 252A, but before 
section 253, OMB shall issue a spending reduction report to reduce an 
excess spending amount (if any remains).
    ``(c) Spending Reduction Order.--A spending reduction ordered 
pursuant to subsection (b) shall be implemented using the procedures 
set forth in section 256.
    ``(d) Total Spending Limits.--
            ``(1) fiscal year 2010: 25 percent;
            ``(2) fiscal year 2011: 24 percent;
            ``(3) fiscal year 2012: 22 percent;
            ``(4) fiscal year 2013: 22 percent;
            ``(5) fiscal year 2014: 22 percent;
            ``(6) fiscal year 2015: 22 percent;
            ``(7) fiscal year 2016: 22 percent;
            ``(8) fiscal year 2017: 21 percent;
            ``(9) fiscal year 2018: 21 percent; and
            ``(10) fiscal year 2019 and each year thereafter: 20 
        percent;
of the projected GDP for the budget year.
    ``(e) Temporary Adjustment Authority.--OMB shall make adjustments 
to the total spending limits set forth in subsection (d)(6) and the 
years thereafter equal to the percentage level of--
            ``(1) the average per capita benefit for OASDI and Medicare 
        eligible retirees born during the period of fiscal years 1946 
        through 1964 receiving benefits under the OASDI and Medicare 
        programs in fiscal year 2014;
            ``(2) multiplied by the increase in the number of such 
        beneficiaries in the applicable fiscal year from the number of 
        such beneficiaries in fiscal year 2014;
            ``(3) adjusted for--
                    ``(A) the blend of the Consumer Price Index and the 
                Medical Economic Index for Medicare programs; and
                    ``(B) the Consumer Price Index for OASDI programs; 
                and
            ``(4) as a percentage of the gross domestic product of the 
        applicable fiscal year.
OMB may modify the adjustments required by this subsection in order 
that the spending limits accommodate the OASDI and Medicare benefits of 
individuals who were born during the period of fiscal years 1946 
through 1964.
    ``(f) Additional Temporary Adjustment Authority.--OMB shall make 
further adjustments to the total spending limits for any fiscal year 
set forth in subsection (d) to ensure that any individual who is at 
least 55 years of age on January 1 of the calendar year in which this 
subsection is enacted shall receive full benefits under the OASDI and 
Medicare programs.''.
    (b) Definitions.--Section 3 of such Act (2 U.S.C. 622) is further 
amended by adding at the end the following new paragraph:
            ``(14) The term `total spending' means all outlays of the 
        Federal Government including those from off-budget entities and 
        budget authority and outlays flowing therefrom, as applicable, 
        designated as emergencies.''.
    (c) Conforming Amendment.--The table of contents set forth in 
250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 
is amended by inserting after the item relating to section 252A the 
following new item:

``Sec. 252B. Total spending limits.''.

SEC. 204. DEFICIT LIMITS.

    (a) Amend section 253 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 to read as follows:

``SEC. 253. DEFICIT LIMITS.

    ``(a) Deficit Projections.--
            ``(1) Deficit amounts.--For the current fiscal year and 
        each subsequent ten fiscal years:
                    ``(A) OMB shall prepare a report comparing 
                projected total deficits and the Deficit Limits in 
                subsection (d), and include such report in the budget 
                as submitted by the President annually under section 
                1105(a) of title 31, United States Code.
                    ``(B) CBO shall prepare a report comparing 
                projected deficits amounts and the Deficit Limits in 
                subsection (d) and include such report in the CBO 
                annual baseline and reestimate of the President's 
                budget.
            ``(2) Inclusion in spending reduction orders.--Reports 
        prepared pursuant to subsection (a) shall be included in the 
        spending reduction report set forth in subsection (c).
    ``(b) Deficit Reduction Report.--Within 15 calendar days after 
Congress adjourns to end a session and on the same day as a spending 
reduction ordered under sections 251, 252A, and 252B, but after any 
spending reduction required by section 251, OMB shall issue a spending 
reduction report to reduce an excess spending amount (if any remains).
    ``(c) Deficit Reduction Order.--A spending reduction ordered 
pursuant to subsection (b) shall be implemented using the procedures 
set forth in section 256.
    ``(d) Deficit Limits.--In this section, the term `Deficit Limit' 
means an amount that equals with respect to--
            ``(1) fiscal year 2011: 6.9 percent;
            ``(2) fiscal year 2012: 4.8 percent;
            ``(3) fiscal year 2013: 4.3 percent;
            ``(4) fiscal year 2014: 4.2 percent;
            ``(5) fiscal year 2015: 3.9 percent;
            ``(6) fiscal year 2016: 3.6 percent;
            ``(7) fiscal year 2017: 3.1 percent;
            ``(8) fiscal year 2018: 2.6 percent; and
            ``(9) fiscal year 2019: 2.0 percent.
of the projected GDP for the budget year.
    ``(e) Temporary Adjustment Authority.--OMB shall make adjustments 
to the Deficit Limits set forth in subsection (d)(5) and the years 
thereafter consistent with any adjustments made pursuant to subsections 
(e) and (f) of section 252B.''.
    (b) Conforming Amendment.--The item relating to section 253 in the 
table of contents set forth in section 250(c) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended to read as 
follows:

``Sec. 253. Deficit limits.''.

                     Subtitle B--Reports and Orders

SEC. 211. REPORTS AND ORDERS.

    Section 254 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows:

``SEC. 254. REPORTS AND ORDERS.

    ``(a) Timetable.--


``Date:                                   Action to be completed:
5 days before the President's budget      CBO sequestration preview report.
 submission.
President's budget submission...........  OMB sequestration preview report.
August 10...............................  CBO sequestration update report.
August 20...............................  OMB sequestration update report.
10 days after end of session............  CBO sequestration final report.
15 days after end of session............  OMB sequestration final report; Presidential order
 

    ``(b) Submission and Availability of Reports.--Each report required 
by this section shall be submitted to the Budget Committees of the 
House of Representatives and the Senate. On the following day a notice 
of the report shall be printed in the Federal Register.
    ``(c) Sequestration Preview Reports.--
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a preview report 
        regarding discretionary, pay-as-you-go, and deficit 
        sequestration based on laws enacted through those dates.
            ``(2) Discretionary spending limit sequestration report.--
        The preview reports shall set forth estimates for the current 
        year and each subsequent year through 2019 of the applicable 
        discretionary spending limits and an explanation of any 
        adjustments in such limits under section 251.
            ``(3) Direct spending limit sequestration report.--The 
        preview reports shall set forth, for the current year and the 
        budget year, estimates for each of the following:
                    ``(A) The amount of total direct spending, if any, 
                calculated under subsection 252A(b).
                    ``(B) A list identifying each law enacted and 
                sequestration implemented after the date of enactment 
                of this section included in the calculation of the 
                amount of deficit increase or decrease and specifying 
                the budgetary effect of each such law.
                    ``(C) The sequestration percentage or percentages 
                necessary to eliminate a deficit increase under section 
                252A(C).
            ``(4) Total spending limit sequestration report.--The 
        preview reports shall set forth for the budget year estimates 
        for each of the following:
                    ``(A) The total spending limit and the estimated 
                total spending amount calculated under section 252A, 
                and the excess deficit.
                    ``(B) The amount of reductions required under 
                sections 251 and 252A, the excess total spending amount 
                remaining after those reductions have been made.
                    ``(C) The sequestration percentage necessary to 
                achieve the required reduction in any fiscal year for 
                which a Deficit Limit is set forth pursuant to this 
                Act.
            ``(5) Deficit limit sequestration report.--The preview 
        reports shall set forth for the budget year estimates for each 
        of the following:
                    ``(A) The maximum deficit amount, the estimated 
                deficit calculated under section 253(b), the excess 
                deficit;
                    ``(B) The amount of reductions required under 
                sections 251, 252A and 252B, the excess deficit 
                remaining after those reductions have been made; and
                    ``(C) The sequestration percentage necessary to 
                achieve the required reduction in any fiscal year for 
                which a Deficit Limit is set forth pursuant to this 
                Act.
            ``(6) Explanation of differences.--The OMB reports shall 
        explain the differences between OMB and CBO estimates for each 
        item set forth in this subsection.
    ``(d) Sequestration Update Reports.--On the dates specified in 
subsection (a), OMB and CBO shall issue a sequestration update report, 
reflecting laws enacted through those dates, containing all of the 
information required in the sequestration preview reports.
    ``(e) Final Sequestration Reports.--
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a final sequestration 
        report, updated to reflect laws enacted through those dates.
            ``(2) Discretionary spending sequestration reports.--The 
        final reports shall set forth estimates for each of the 
        following:
                    ``(A) For the current year and each subsequent year 
                the applicable discretionary spending limits for each 
                category and an explanation of any adjustments in such 
                limits under section 251.
                    ``(B) For the current year and the budget year the 
                estimated new budget authority and outlays for each 
                category and the breach, if any, in each category.
                    ``(C) For each category for which a sequestration 
                is required, the sequestration percentages necessary to 
                achieve the required reduction.
                    ``(D) For the budget year, for each account to be 
                sequestered, estimates of the baseline level of 
                budgetary resources subject to sequestration and 
                resulting outlays and the amount of budgetary resources 
                to be sequestered and resulting outlay reductions.
            ``(3) Direct spending, total spending, and deficit limit 
        sequestration reports.--The final reports shall contain all the 
        information required in the direct spending, total spending, 
        and Deficit Limit sequestration preview reports. In addition, 
        these reports shall contain, for the budget year, for each 
        account to be sequestered, estimates of the baseline level of 
        sequestrable budgetary resources and resulting outlays and the 
        amount of budgetary resources to be sequestered and resulting 
        outlay reductions. The reports shall also contain estimates of 
        the effects on outlays of the sequestration in each outyear for 
        direct spending programs.
            ``(4) Explanation of differences.--The OMB report shall 
        explain any differences between OMB and CBO estimates of the 
        amount of any net direct spending change calculated under 
        section 252A, any excess deficit, any breach, and any required 
        sequestration percentage. The OMB report shall also explain 
        differences in the amount of sequesterable resources for any 
        budget account to be reduced if such difference is greater than 
        $5,000,000.
            ``(5) Presidential order.--On the date specified in 
        subsection (a), if in its final sequestration report OMB 
        estimates that any sequestration is required, the President 
        shall issue an order fully implementing without change all 
        sequestrations required by the OMB calculations set forth in 
        that report. This order shall be effective on issuance.
    ``(f) Within-Session Sequestration Reports.--If an appropriation 
for a fiscal year in progress is enacted (after Congress adjourns to 
end the session for that budget year and before July 1 of that fiscal 
year) that causes a breach, 10 days later CBO shall issue a report 
containing the information required in subsection (e)(2). Fifteen days 
after enactment, OMB shall issue a report containing the information 
required in subsections (e)(2) and (e)(4). On the same day as the OMB 
report, the President shall issue an order fully implementing without 
change all sequestrations required by the OMB calculations set forth in 
that report. This order shall be effective on issuance.
    ``(g) GAO Compliance Report.--Upon request of the Committee on the 
Budget of the House of Representatives or the Senate, the Comptroller 
General shall submit to the Congress and the President a report on--
            ``(1) the extent to which each order issued by the 
        President under this section complies with all of the 
        requirements contained in this part, either certifying that the 
        order fully and accurately complies with such requirements or 
        indicating the respects in which it does not; and
            ``(2) the extent to which each report issued by OMB or CBO 
        under this section complies with all of the requirements 
        contained in this part, either certifying that the report fully 
        and accurately complies with such requirements or indicating 
        the respects in which it does not.
    ``(h) Low-Growth Report.--At any time, CBO shall notify the 
Congress if--
            ``(1) during the period consisting of the quarter during 
        which such notification is given, the quarter preceding such 
        notification, and the 4 quarters following such notification, 
        CBO or OMB has determined that real economic growth is 
        projected or estimated to be less than zero with respect to 
        each of any 2 consecutive quarters within such period; or
            ``(2) the most recent of the Department of Commerce's 
        advance preliminary or final reports of actual real economic 
        growth indicate that the rate of real economic growth for each 
        of the most recently reported quarter and the immediately 
        preceding quarter is less than one percent.
    ``(i) Economic and Technical Assumptions.--In all reports required 
by this section, OMB shall use the same economic and technical 
assumptions as used in the most recent budget submitted by the 
President under section 1105(a) of title 31, United States Code''.

SEC. 212. SPENDING AND DEFICIT LIMITS ENFORCEMENT.

    (a) Conforming Amendments to Section 312.--Section 312 of the 
Congressional Budget Act of 1974 is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Budget Committee Determinations.--For purposes of this title, 
the levels of new budget authority, outlays, direct spending, deficits, 
revenues, and debt, or the increases or decreases of such levels for 
purpose of section 303, shall be determined on the basis of estimates 
made by the Committee on the Budget of the House of Representatives or 
the Senate, as applicable.''.
            (2) by striking subsections (b) and (c) and redesignating 
        subsections (d), (e), and (f) as (h), (i), and (j).
    (b) Enforcement Amendments to Section 312.--Section 312 of the 
Congressional Budget Act of 1974 is further amended by adding at the 
end the following new subsections after subsection (a):
    ``(b) Discretionary Spending Limit Point of Order.--It shall not be 
in order in the House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, concurrent resolution, or conference 
report that--
            ``(1) causes the discretionary spending limits for the 
        budget year to be breached;
            ``(2) increases the discretionary spending limits for the 
        budget year or any ensuing fiscal year; or
            ``(3) includes any provision that has the effect of 
        modifying the application of section 251 of the Balanced Budget 
        and Emergency Deficit Control Act of 1985.
    ``(c) Direct Spending Limit Point of Order.--It shall not be in 
order in the House of Representatives or the Senate to consider any 
bill, joint resolution, amendment, concurrent resolution, or conference 
report that--
            ``(1) causes the direct spending limits for the budget year 
        to be breached; or
            ``(2) increases aggregate level of direct spending for any 
        ensuing fiscal year.
    ``(d) Total Spending Limit Point of Order.--It shall not be in 
order in the House of Representatives or the Senate to consider any 
bill, joint resolution, concurrent resolution, amendment, or conference 
report that--
            ``(1) causes the total spending limits for the budget year, 
        as a percentage of gross domestic product, to be breached; or
            ``(2) increases outlays above the total spending limits, as 
        a percentage of gross domestic product, for the budget year or 
        any ensuing fiscal year after the budget year.
    ``(e) Deficit Limit Point of Order.--It shall not be in order in 
the House of Representatives or the Senate to consider any bill, joint 
resolution, amendment, concurrent resolution, or conference report 
that--
            ``(1) causes the Deficit Limits for the budget year, as a 
        percentage of gross domestic product, to be breached; or
            ``(2) increases the amount of deficit, as a percentage of 
        gross domestic product, for the budget year or any ensuing 
        fiscal year.
    ``(f) Sequestration Application.--It shall not be in order in the 
House of Representatives or the Senate to consider any bill, joint 
resolution, amendment, concurrent resolution, or conference report 
that--
            ``(1) includes any provision that has the effect of 
        modifying the application of section 256 of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 to any program 
        subject to sequestration or exempt from sequestration; and
            ``(2) includes any provision that has the effect of 
        modifying the application of section 251, 252A, 252B or 253 to 
        any program subject to sequestration or exempt from 
        sequestration.
    ``(g) Waiver or Suspension.--The provisions of this section may be 
waived or suspended:
            ``(1) In the senate.--In the Senate only by the affirmative 
        vote of three-fifths of the Members, duly chosen and sworn.
            ``(2) In the house of representatives.--In the House of 
        Representatives:
                    ``(A) Only by a rule or order proposing only to 
                waive such provisions by an affirmative vote of two-
                thirds of the Members, duly chosen and sworn.
                    ``(B) It shall not be in order to consider a rule 
                or order that waives the application of subparagraph 
                (A).
                    ``(C) It shall not be in order for the Speaker to 
                entertain a motion to suspend the application of this 
                section under clause 1 of rule XV of the Rules of the 
                House of Representatives.''.

SEC. 213. SPENDING REDUCTION ORDERS.

    (a) In General.--Section 256 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended to read as follows:

``SEC. 256. SPENDING REDUCTION ORDER.

    ``(a) Application.--A spending reduction order issued pursuant to 
this part shall apply to eliminate breaches of the limits set forth in 
sections 251 (discretionary spending limits), 252A (direct spending 
limits), 253 (Deficit Limits) and 252B (total spending limits).
    ``(b) Waiver or Suspension.--(1) In the Senate, the provisions of 
this section may be waived or suspended in the Senate only by the 
affirmative vote of two-thirds of the Members, duly chosen and sworn.
    ``(2) In the House--
            ``(A) The provisions of this section may be waived or 
        suspended in the House of Representatives only by a rule or 
        order proposing only to waive such provisions by an affirmative 
        vote of two-thirds of the Members, duly chosen and sworn.
            ``(B) It shall not be in order to consider a rule or order 
        that waives the application of paragraph (1).
            ``(C) It shall not be in order for the Speaker to entertain 
        a motion to suspend the application of this section under 
        clause 1 of rule XV of the Rules of the House of 
        Representatives.
    ``(c) General Rules.--
            ``(1) Calculation of spending reduction percentage.--OMB 
        shall include in its final spending sequestration report a 
        requirement that each nonexempt spending account shall be 
        reduced by an amount of budget authority calculated by 
        multiplying the baseline level of budgetary resources in that 
        account at that time by the uniform percentage necessary to 
        reduce outlays sufficient to eliminate an excess spending 
        amount.
            ``(2) Exemptions.--The following shall be exempt from 
        reduction under any order issued under this part:
                    ``(A) Payments for net interest.
                    ``(B) Benefits payable under the old-age, 
                survivors, and disability insurance program established 
                under title II of the Social Security Act if--
                            ``(i) OASDI Trust Funds are actuarially 
                        solvent in 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) OASDI Trust Funds have not run a 
                        cash deficit in the fiscal year prior to the 
                        transmittal of the most recent Sequestration 
                        Preview Report.
                    ``(C) Benefits provided to veterans defined as 
                direct spending payable by the Department of Veterans 
                affairs.
                    ``(D) Obligated balances of budget authority 
                carried over from prior fiscal years.
                    ``(E) Any obligations of the Federal Government 
                required to be paid under the United States 
                Constitution or legally contractual obligations.
                    ``(F) Provisions of spending legislation designated 
                by the President, and so designated in statute, as an 
                emergency, except an amount of budget authority and the 
                outlays flowing therefrom so designated that is above 
                the emergency reserve fund as calculated in section 
                317(b) of the Congressional Budget Act of 1974 shall 
                not be exempt.
                    ``(G) Any program whose growth in the budget year 
                is equal to or less than the consumer price index.
                    ``(H) Intergovernmental transfers.
            ``(3) One-percent reduction limitation.--No program shall 
        be subject to a spending reduction of more than one percent of 
        its budgetary resources.
            ``(4) Calculation of spending reduction.--The percentage 
        required to produce a spending reduction, as ordered by a 
        spending reduction order, shall be calculated by OMB by adding 
        all budgetary resources of the Government, and reducing that 
        amount by an amount sufficient to reduce the total amount of 
        outlays of the Government to equal, or lower, a level of 
        outlays than the amount set forth in the guideline period.
            ``(5) Application.--Once issued, a spending reduction shall 
        be applied to nonexempt programs as follows:
                    ``(A) Budgetary resources subject to a spending 
                reduction to any discretionary account shall be 
                permanently canceled.
                    ``(B) The same percentage spending reduction shall 
                apply to all programs, projects, and activities within 
                a budget account (with programs, projects, and 
                activities as delineated in the appropriation Act or 
                accompanying report for the relevant fiscal year 
                covering that account, or for accounts not included in 
                appropriation Acts, as delineated in the most recently 
                submitted President's budget).
                    ``(C) Administrative regulations implementing a 
                spending reduction shall be made within 120 days of the 
                issue of a spending reduction order.
            ``(6) OASDI special procedures.--If the OASDI Trust Funds 
        are subject to sequestration, then payments from such Trust 
        Funds shall be treated the same as other programs, except--
                    ``(A) reductions from such Trust Funds shall not 
                exceed one percent of the 75-year unfunded liability 
                set forth in the most current Social Security Trustees 
                Report;
                    ``(B) reduction in individual benefits shall be 
                implemented by increasing the Normal Retirement Age 
                (NRA) by an amount certified by the Social Security 
                Office of the Chief Actuary;
                    ``(C) the increase in the NRA shall not be applied 
                to any beneficiary born in a year 55 years or before--
                            ``(i) the year of the enactment of the 
                        Spending, Deficit, and Debt Control Act of 
                        2009; or
                            ``(ii) the year in which the final spending 
                        sequestration report is issued; and
                    ``(D) no change in the NRA shall be made before it 
                is fully phased-in under the Social Security Act as in 
                effect before the date of enactment of the Spending, 
                Deficit, and Debt Control Act of 2009.
    ``(d) Discretionary Spending Sequestration.--
            ``(1) Eliminating a breach.--Each nonexempt account shall 
        be reduced by an amount of budget authority calculated by 
        multiplying the baseline level of budgetary resources subject 
        to sequestration in that account at that time by the uniform 
        percentage necessary to eliminate a breach by--
                    ``(A) first, calculating the uniform percentage 
                necessary to eliminate a breach in new budget 
                authority, if any, and
                    ``(B) second, if any breach in outlays remains, 
                increasing the uniform percentage to a level sufficient 
                to eliminate that breach.
            ``(2) Emergency spending above the reserve fund.--An amount 
        of budget authority and the outlays flowing therefrom 
        designated in statute as an emergency that is above level in 
        the emergency reserve fund as calculated in Section 317(b) of 
        the Congressional Budget Act of 1974 shall count toward the 
        discretionary spending limits.
            ``(3) Part-year appropriations.--If, on the date specified 
        in paragraph (1), there is in effect an Act making or 
        continuing appropriations for part of a fiscal year for any 
        budget account, then the dollar sequestration calculated for 
        that account under paragraph (2) shall be subtracted from--(A) 
        the annualized amount otherwise available by law in that 
        account under that or a subsequent part-year appropriation; and 
        (B) when a full-year appropriation for that account is enacted, 
        from the amount otherwise provided by the full year 
        appropriation.
            ``(4) Look-back.--If, after June 30, an appropriation for 
        the fiscal year in progress is enacted that causes a breach for 
        that year, the discretionary spending limits for the next 
        fiscal year shall be reduced by the amount of the breach.
            ``(5) Within-session sequestration.--If an appropriation 
        for a fiscal year in progress is enacted (after Congress 
        adjourns to end the session for that budget year and before 
        July 1 of that fiscal year) that causes a breach for that year 
        (after taking into account any prior sequestration of amounts), 
        15 days later there shall be a sequestration to eliminate that 
        breach following the procedures set forth in paragraphs (2) 
        through (3).
            ``(6) Estimates.--
                    ``(A) CBO estimates.--As soon as practicable after 
                Congress completes action on any discretionary 
                appropriation, CBO, after consultation with the 
                Committees on the Budget of the House of 
                Representatives and the Senate, shall provide OMB with 
                an estimate of the amount of discretionary new budget 
                authority and outlays for the current year (if any) and 
                the budget year provided by that legislation.
                    ``(B) OMB estimates.--Not later than seven calendar 
                days (excluding Saturdays, Sundays, and legal holidays) 
                after the date of enactment of any discretionary 
                appropriation, OMB shall transmit a report to the House 
                of Representatives and to the Senate containing the CBO 
                estimate of that legislation, an OMB estimate of the 
                amount of discretionary new budget authority and 
                outlays for the current year (if any) and the budget 
                year provided by that legislation, and an explanation 
                of any difference between the two estimates.
                    ``(C) Explanation of differences between omb and 
                omb estimates.--If OMB determines that there is a 
                significant difference between OMB and CBO reports 
                prepared pursuant to subparagraph (A) and (B), OMB 
                shall consult with the Committees on the Budget of the 
                House of Representatives and the Senate regarding that 
                difference and that consultation shall include, to 
                extent practicable, written communication to those 
                committees that affords such committees the opportunity 
                to comment before the issuance of the report.
                    ``(D) Assumptions and guidelines.--OMB estimates 
                under this paragraph shall be made using current 
                economic and technical assumptions. OMB shall use the 
                OMB estimates transmitted to the Congress under this 
                paragraph. OMB and CBO shall prepare estimates under 
                this paragraph in conformance with scorekeeping 
                guidelines determined after consultation among the 
                House of Representatives and Senate Committees on the 
                Budget, CBO, and OMB.
                    ``(E) Annual appropriations.--For purposes of this 
                paragraph, amounts provided by annual appropriations 
                shall include any new budget authority and outlays for 
                the current year (if any) and the budget year in 
                accounts for which funding is provided in that 
                legislation that result from previously enacted 
                legislation.
            ``(7) Discretionary sequestration limitation.--If 
        appropriations for a fiscal year do not require a sequester 
        pursuant to the discretionary spending limits set forth in this 
        Act, discretionary accounts shall not be subject to 
        sequestration under sections 252A, 252B or 253.''.
    (b) Low-Growth Amendment.--Amend section 258(b) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 to read as follows:
    ``(b) Suspension of Sequestration Procedures.--Upon the enactment 
of a declaration of war or a joint resolution described in subsection 
(a)--
            ``(1) the subsequent issuance of any sequestration report 
        to enforce the spending limits in section 252B or the Deficit 
        Limits in section 253 order is precluded;
            ``(2) sections 302(f), 310(d), 311(a), of the Congressional 
        Budget Act of 1974 are suspended; and
            ``(3) section 1103 of title 31, United States Code, is 
        suspended.''.
    (c) Technical and Conforming Amendments.--(1) Repeals.--section 255 
of the Balanced Budget and Emergency Deficit Control Act of 1985 is 
repealed.
    (2) Conforming Amendment.--the item relating to section 256 in the 
table of contents set forth in section 250(a) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended to read as 
follows:

``Sec. 256. Spending reduction order.''.

                     TITLE III--LONG-TERM BUDGETING

SEC. 300. SHORT TITLE; PURPOSES.

    This title may be cited as ``Budget Reform and Long-Term 
Sustainability Act of 2009''

SEC. 301. CBO AND OMB PROJECTIONS.

    (a) Congressional Budget Office.--At the end of section 308 of the 
Congressional Budget Act of 1974, add the following:
    ``(d) Long-Term Projections.--Not later than February 15 of each 
calendar year after the date of enactment of this subsection, the 
Director of the Congressional Budget Office shall issue a report 
projecting total spending, revenue, deficits, and debt for 75 years 
beginning with such fiscal year as a percentage of gross domestic 
product annually based on current law levels as modified to maintain 
current policy.
    ``(e) CBO Spending Review Report Issuance.--As a component of the 
report required by subsection (d), the Congressional Budget Office 
shall issue a Spending Review Report and transmit such report to the 
Committees on the Budget of the House of Representatives and the 
Senate.
    ``(f) Content of Spending Review Report.--The content of the 
Spending Review Report referred to in subsection (e) shall include 
analyses of the following:
            ``(1) OASDI.--The solvency of the Old-Age, Survivors, and 
        Disability Insurance Trust Fund;
            ``(2) Medicare.--The long-range sustainability of the 
        spending levels of Medicare;
            ``(3) Medicaid.--The long-range sustainability of the 
        spending levels of Medicaid; and
            ``(4) Other direct spending.--The long-range sustainability 
        of spending levels of other direct spending.
    ``(g) Definitions.--For purposes of the development of the Spending 
Review Report referred to in subsection (b):
            ``(1) Solvency of the oasdi.--The term `solvency' as used 
        in this section means the solvency of the Old-Age Security and 
        Disability Insurance Trust Funds over a 75-year period 
        beginning in the year the Spending Review Report is reported.
            ``(2) Sustainability.--The term `sustainability' means the 
        following:
                    ``(A) Medicare.--The Medicare program is 
                sustainable if it is projected to grow, beginning in 
                the tenth year following the date of the enactment of 
                this Act from the fixed percentage of Gross Domestic 
                Product in the year prior to the date of enactment of 
                this subsection, adjusted by the adjustment formula as 
                set forth in section 252B(e) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985;
                    ``(B) Medicaid.--The Medicaid program is 
                sustainable if its outlays, excluding those designated 
                as emergencies, are projected to grow from the fixed 
                percentage of Gross Domestic Product in the year prior 
                to the date of the enactment of this Act, adjusted by a 
                rate no higher than a blend of the Consumer Price Index 
                and the Medical Economic Index, as adjusted after 
                fiscal year 2018 using the same calculation, excluding 
                benefits provided from the OASDI Trust funds, as that 
                set forth in section 252B(e) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 to reflect the 
                increase in the the number of Medicare eligible 
                retirees receiving benefiits in the program relative to 
                fiscal year 2018.
                    ``(C) Other direct spending.--Other direct spending 
                is direct spending other than OASDI, the Medicare and 
                Medicaid program and is sustainable if it grows from a 
                fixed percentage of gross domestic product in fiscal 
                year 2008.''.
    (b) Office of Management and Budget.--Section 1105(a) of title 31, 
United States Code, (as amended by section 142(e)) is further amended 
by adding at the end the following:
            ``(38) long-term projections of total spending over 75 
        years as a percentage of gross domestic product annually and 
        the impact of proposed policies over that period.''.

SEC. 302. GAO AND OMB STATEMENTS OF THE FEDERAL GOVERNMENT'S FINANCIAL 
              CONDITION.

    (a) Government Accountability Office.--On or before April 15 of 
each fiscal year, the Government Accountability Office shall submit a 
report on the federal government's financial condition, including the 
long-term unfunded obligations.
    (b) Definition of Long-Term Unfunded Obligations.--Section 3 of the 
Congressional Budget Act of 1974 is further amended by adding at the 
end the following new paragraph, and redesignate the paragraph 
accordingly:
            ``(11) Unfunded obligations.--The term `Unfunded 
        Obligations' means the dollar sum of the Total Net Position as 
        displayed in the United States Government Balance Sheets 
        contained within the most recently published Financial Report 
        of the United States Government; plus the 75-year actuarial 
        balances, using the intermediate open-group assumption, of 
        Medicare's Hospital Insurance, Supplementary Medical Insurance, 
        and Prescription Drug programs contained within the most 
        recently published Annual Report of the Boards of Trustees of 
        the Federal Hospital Insurance and Federal Supplementary 
        Medical Insurance Trust Funds; plus the 75-year actuarial 
        balance, using the intermediate open group assumption, of the 
        Old-Age Survivors and Disability Insurance program contained 
        within the most recently published Annual Report of the Board 
        of Trustees of the Federal Old-Age and Survivors Insurance and 
        Federal Disability Insurance Trust Funds.''.
    (c) Office of Management and Budget.--Section 1105(a) of title 31, 
United States Code, (as amended by section 301(b)) is further amended 
by adding at the end the following:
            ``(39) a report on the Federal Government's financial 
        condition, the including the long-term unfunded obligations.''.

SEC. 303. FIVE-YEAR FISCAL SUSTAINABILITY REVIEW.

    Title III of the Congressional Budget Act of 1974 (as amended by 
section 126(a)) is further amended by adding at the end the following 
new section:

                ``five-year fiscal sustainability review

    ``Sec. 319.  (a) Congressional Spending Review Report.--Not later 
than 15 calendar days after the date of the transmittal of the report 
referred to in subsection 308(e), the Committees on the Budget of the 
House of Representatives and the Senate shall issue, and have printed 
in the Congressional Record, an assessment of such report.
    ``(b) Committee Recommendations.--Not later than 15 calendar days 
after the date of the report of the review referred to in subsection 
(c), the committees of the House of Representatives and the Senate 
shall consider and vote to submit to the Committees on the Budget of 
the House of Representatives and Senate, as applicable, 
recommendations, if any, such committees deem appropriate in response 
to the Spending Review Report issued pursuant to subsection (c).
    ``(c) Expedited Consideration of Spending Review Legislation.--
            ``(1) Consideration in the house of representatives.--
                    ``(A) Introduction of spending review 
                legislation.--
                            ``(i) If the report referred to in section 
                        308 indicates that the OASDI Trust Funds are 
                        not solvent, or that Medicare, Medicaid or 
                        other direct spending programs are not 
                        sustainable, or total spending exceeds the 
                        limits set forth in section 252B for any year 
                        within the 75-year period referred to in such 
                        report, then not later than 30 calendar days 
                        after the transmittal of the report referred to 
                        in subsection (a), if any, the majority leader 
                        and minority leader of the House of 
                        Representatives shall each introduce 
                        legislation implementing to the extent 
                        practicable the recommendations referred to in 
                        subsection (d), or if necessary additional 
                        spending reduction sufficient to achieve the 
                        spending levels referred to in subsection (b).
                            ``(ii) If Spending Review Legislation is 
                        not introduced pursuant to this subparagraph by 
                        the majority leader or minority leader, then 
                        not later than 45 calendar days after the 
                        transmittal of the report referred to in 
                        subsection (a), the chairman or ranking member 
                        of the Committee on the Budget shall introduce 
                        Spending Review Legislation sufficient to 
                        achieve the same spending levels.
                            ``(iii) Spending review legislation shall 
                        be referred solely to the House of 
                        Representatives Budget Committee, which shall 
                        have sole jurisdiction of such legislation.
                            ``(iv) Spending review legislation 
                        introduced pursuant to this section shall cause 
                        total spending to be reduced by an amount equal 
                        or greater than the amount of the breach of the 
                        limits set forth in section 252B, and shall 
                        cause the OASDI Trust Funds to achieve 
                        solvency, and shall cause Medicare, Medicaid, 
                        and other direct spending programs to achieve 
                        sustainability.
                    ``(B) Referral and reporting.--The Committee on the 
                Budget of the House of Representatives shall report 
                Spending Review Legislation to the House of 
                Representatives not later than the seventh legislative 
                day after the date of introduction of the legislation 
                referred to in subparagraph (A). If such committee 
                fails to report the Spending Review Legislation within 
                that period or the House of Representatives has adopted 
                a concurrent resolution providing for adjournment sine 
                die at the end of a Congress, such committee shall be 
                automatically discharged from further consideration of 
                the Spending Review Legislation and it shall be placed 
                on the appropriate calendar.
                    ``(C) Proceeding to consideration.--After Spending 
                Review Legislation is reported by or discharged from 
                the Committee on the Budget or the House of 
                Representatives has adopted a concurrent resolution 
                providing for adjournment sine die at the end of a 
                Congress, it shall be in order to move to proceed to 
                consider the Spending Review Legislation in the House 
                of Representatives. Such a motion shall be in order in 
                the legislative schedule within two legislative days 
                after the day on which the proponent announces his 
                intention to offer the motion. Such a motion shall not 
                be in order after the House of Representatives has 
                disposed of a motion to proceed with respect to that 
                special message. The previous question shall be 
                considered as ordered on the motion to its adoption 
                without intervening motion. A motion to reconsider the 
                vote by which the motion is disposed of shall not be in 
                order.
                    ``(D) Consideration.--The Spending Review 
                Legislation shall be considered as read. All points of 
                order against Spending Review Legislation and against 
                its consideration are waived. The previous question 
                shall be considered as ordered on an Spending Review 
                Legislation to its passage without intervening motion 
                except five hours of debate equally divided and 
                controlled by the proponent and an opponent and one 
                motion to limit debate on the Spending Review 
                Legislation. A motion to reconsider the vote on passage 
                of the Spending Review Legislation shall not be in 
                order.
                    ``(E) Senate spending review legislation.--Spending 
                Review Legislation received from the Senate shall not 
                be referred to committee.
            ``(2) Consideration in the senate.--
                    ``(A) Motion to proceed to consideration.--A motion 
                to proceed to the consideration of Spending Review 
                Legislation under this subsection in the Senate shall 
                not be debatable. It shall not be in order to move to 
                reconsider the vote by which the motion to proceed is 
                agreed to or disagreed to.
                    ``(B) Limits on debate.--Debate in the Senate on 
                Spending Review Legislation under this subsection, and 
                all debatable motions and appeals in connection 
                therewith (including debate pursuant to subparagraph 
                (D)), shall not exceed 10 hours, equally divided and 
                controlled in the usual form.
                    ``(C) Appeals.--Debate in the Senate on any 
                debatable motion or appeal in connection with Spending 
                Review Legislation under this subsection shall be 
                limited to not more than 1 hour, to be equally divided 
                and controlled in the usual form.
                    ``(D) Motion to limit debate.--A motion in the 
                Senate to further limit debate on Spending Review 
                Legislation under this subsection is not debatable.
                    ``(E) Motion to recommit.--A motion to recommit 
                Spending Review Legislation under this subsection is 
                not in order.
                    ``(F) Consideration of the house of representatives 
                spending review legislation.--
                            ``(i) In general.--If the Senate has 
                        received the House of Representatives companion 
                        resolution to the Spending Review Legislation 
                        introduced in the Senate prior to the vote 
                        required under paragraph (1)(C), then the 
                        Senate may consider, and the vote under 
                        paragraph (1)(C) may occur on, the House of 
                        Representatives companion resolution.
                            ``(ii) Procedure after vote on senate 
                        spending review legislation.--If the Senate 
                        votes, pursuant to paragraph (1)(C), on the 
                        Spending Review Legislation introduced in the 
                        Senate, then immediately following that vote, 
                        or upon receipt of the House of Representatives 
                        companion resolution, the House of 
                        Representatives Spending Review Legislation 
                        shall be deemed to be considered, read the 
                        third time, and the vote on passage of the 
                        Senate resolution shall be considered to be the 
                        vote on the Spending Review Legislation 
                        received from the House of Representatives.
            ``(3) Jurisdiction.--The Committees on the Budget of the 
        House of Representatives and Senate shall have exclusive 
        jurisdiction over any Spending Review Legislation and all the 
        provisions therein for all purposes of the rules of either 
        House.''.

SEC. 304. LONG-TERM RECONCILIATION.

    (a) Long-Term Reconciliation.--Section 310 of the Congressional 
Budget Act of 1974 is amended as follows:
    ``(h) Long-Term Reconciliation Directives in a Joint Resolution on 
the Budget.--
            ``(1) Long-term reconciliation directives.--In addition to 
        a reconciliation measure as set forth in subsection (a), a 
        joint resolution on the budget for any fiscal year, to the 
        extent necessary to effectuate the spending levels as set forth 
        for such categories in section 301(a) (providing for long-term 
        spending levels as a percentage of gross domestic product) of 
        such resolution, shall--
                    ``(A) specify the total amount by which Medicare, 
                Medicaid, the OASDI Trust Funds, and other direct 
                spending outlays are to be reduced within the 
                jurisdiction of a committee as a percentage of gross 
                domestic product of such fiscal year; and
                    ``(B) direct that committee to determine and 
                recommend changes to accomplish a reduction of such 
                total amount for such categories as a percentage of 
                gross domestic product.
            ``(2)  Limitation on amendments to long-term reconciliation 
        legislation.--
                    ``(A) It shall not be in order in the House of 
                Representatives to consider any amendment to a 
                reconciliation bill or reconciliation resolution if 
                such amendment decreases outlay reductions below the 
                level of such outlay reductions provided (for the 
                fiscal years covered) in the reconciliation 
                instructions which relate to such long-term 
                reconciliation bill.
                    ``(B) It shall not be in order in the Senate to 
                consider any amendment to a reconciliation bill or 
                reconciliation resolution if such amendment decreases 
                outlay reductions below the level of such outlay 
                reductions provided (for the fiscal years covered) in 
                the reconciliation instructions which relate to such 
                long-term reconciliation bill.
                    ``(C) Subparagraphs (A) and (B) shall not apply if 
                a declaration of war by the Congress is in effect.
                    ``(D) For purposes of this section, the levels of 
                outlays as a percentage of a gross domestic product for 
                a fiscal year shall be determined on the basis of 
                estimates made by the Committee on the Budget of the 
                House of Representatives or of the Senate.
                    ``(E) The Committee on Rules of the House of 
                Representatives may make in order amendments to achieve 
                outlay reductions specified by reconciliation 
                directives contained in a joint resolution on the 
                budget if a committee or committees of the House of 
                Representatives fail to submit recommended reductions 
                in outlays as a percentage or gross domestic product to 
                its Committee on the Budget pursuant to its 
                instruction.
                    ``(F) In the Senate, a motion to strike a provision 
                shall always be in order.
            ``(3) Subject matter.--Subject matter included in a long-
        term reconciliation bill may be any of the following:
                    ``(A) Any part of the Medicare program.
                    ``(B) Medicaid.
                    ``(C) The Old-Age, Survivors, and Disability 
                Insurance Trust Fund.
                    ``(D) Other direct spending.
            ``(4) Application.--Subsections (c), (d), and (g) shall not 
        apply to long-term reconciliation measures reported under this 
        subsection.''.
    (b) Conforming Amendment.--In section 310(b) of the Congressional 
Budget Act of 1974, strike ``subsection (a)'' and insert ``subsections 
(a) and (h)''.

SEC. 305. LONG-TERM SPENDING INCREASE POINT OF ORDER.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 303) is further amended by adding at the end the 
following new section:

              ``long-term spending increase point of order

    ``Sec. 320.  (a) Congressional Budget Office Analysis of 
Proposals.--The Director of the Congressional Budget Office shall, to 
the extent practicable, prepare for each bill and joint resolution 
reported from committee (except measures within the jurisdiction of the 
Committee on Appropriations), and amendments thereto and conference 
reports thereon, an estimate of whether the measure causes, relative to 
current law, a net increase in direct spending in excess of 
$5,000,000,000 in any of the four 10-year periods beginning in fiscal 
year 2019 through fiscal year 2058.
    ``(b) In the Senate.--
            ``(1) Point of order.--It shall not be in order in the 
        Senate to consider any bill, joint resolution, amendment, 
        motion, or conference report that causes a net increase in 
        deficits in excess of $5,000,000,000 in any of the four 10-year 
        periods beginning in 2019 through 2058.
            ``(2) Supermajority waiver and appeal.--
                    ``(A) This section may be waived or suspended only 
                by the affirmative vote of three-fifths of the Members, 
                duly chosen and sworn.
                    ``(B) An affirmative vote of three-fifths of the 
                Members, duly chosen and sworn, shall be required to 
                sustain an appeal of the ruling of the Chair on a point 
                of order raised under this section.
    ``(c) In the House of Representatives.--
            ``(1) Point of order.--It shall not be in order in the 
        House of Representatives to consider any bill, joint 
        resolution, amendment, motion, or conference report that causes 
        a net increase in deficits in excess of $5,000,000,000 in any 
        of the four 10-year periods beginning in 2019 through 2058.
            ``(2) Supermajority waiver and appeal.--
                    ``(A) This section may be waived or suspended only 
                by the affirmative vote of three-fifths of the Members, 
                duly chosen and sworn.
                    ``(B) An affirmative vote of two-thirds of the 
                Members, duly chosen and sworn, shall be required to 
                sustain an appeal of the ruling of the Chair on a point 
                of order raised under this section.
    ``(d) Determinations of Budget Levels.--For purposes of this 
section, the levels of net deficit increases shall be determined on the 
basis of estimates provided by the chairmen of the Senate and House 
Committees on the Budget, as applicable.''.
    (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 319 the 
following new item:

``Sec. 320. Long-term spending increase point of order.''.

                       TITLE IV--SPENDING REFORM

                   Subtitle A--Federal Program Sunset

SEC. 400. SHORT TITLE.

    This subtitle may be cited as the ``Federal Program Sunset Act of 
2009''.

SEC. 401. REVIEW AND ABOLISHMENT OF FEDERAL AGENCIES.

    (a) Schedule for Review.--Not later than one year after the date of 
the enactment of this Act, the Federal Agency Sunset Commission 
established under section 402 (in this subtitle referred to as the 
``Commission'') shall submit to Congress a schedule for review by the 
Commission, at least once every 12 years (or less, if determined 
appropriate by Congress), of the abolishment or reorganization of each 
agency.
    (b) Review of Agencies Performing Related Functions.--In 
determining the schedule for review of agencies under subsection (a), 
the Commission shall provide that agencies that perform similar or 
related functions be reviewed concurrently to promote efficiency and 
consolidation.
    (c) Abolishment of Agencies.--
            (1) In general.--Each agency shall--
                    (A) be reviewed according to the schedule created 
                pursuant to this section; and
                    (B) be abolished not later than one year after the 
                date that the Commission completes its review of the 
                agency pursuant to such schedule, unless the agency is 
                reauthorized by the Congress.
            (2) Extension.--The deadline for abolishing an agency may 
        be extended for an additional two years after the date 
        described in paragraph (1)(B) if the Congress enacts 
        legislation extending such deadline by a vote of a super 
        majority of the House of Representatives and the Senate.

SEC. 402. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the ``Federal Agency Sunset Commission''.
    (b) Composition.--The Commission shall be composed of 12 members 
(in this subtitle referred to as the ``members'') who shall be 
appointed as follows:
            (1) Six members shall be appointed by the Speaker of the 
        House of Representatives, with minority members appointed with 
        the consent of the minority leader of the House of 
        Representatives.
            (2) Six members shall be appointed by the majority leader 
        of the Senate, with minority members appointed with the consent 
        of the minority leader of the Senate.
    (c) Qualifications of Members.--
            (1) In general.--(A) Of the members appointed under 
        subsection (b)(1), four shall be members of the House of 
        Representatives (not more than two of whom may be of the same 
        political party), and two shall be an individual described in 
        subparagraph (C).
            (B) Of the members appointed under subsection (b)(2), four 
        shall be members of the Senate (not more than two of whom may 
        be of the same political party) and two shall be an individual 
        described in subparagraph (C).
            (C) An individual under this subparagraph is an 
        individual--
                    (i) who is not a member of Congress; and
                    (ii) with expertise in the operation and 
                administration of Government programs.
            (2) Continuation of membership.--If a member was appointed 
        to the Commission as a Member of Congress and the member ceases 
        to be a Member of Congress, that member shall cease to be a 
        member of the Commission. The validity of any action of the 
        Commission shall not be affected as a result of a member 
        becoming ineligible to serve as a member for the reasons 
        described in this paragraph.
    (d) Initial Appointments.--All initial appointments to the 
Commission shall be made not later than 90 days after the date of the 
enactment of this Act.
    (e) Chairman; Vice-Chairman.--
            (1) Initial chairman.--An individual shall be designated by 
        the Speaker of the House of Representatives from among the 
        members initially appointed under subsection (b)(1) to serve as 
        chairman of the Commission for a period of 2 years.
            (2) Initial vice-chairman.--An individual shall be 
        designated by the majority leader of the Senate from among the 
        individuals initially appointed under subsection (b)(2) to 
        serve as vice-chairman of the Commission for a period of two 
        years.
            (3) Alternate appointments of chairmen and vice-chairmen.--
        Following the termination of the two-year period described in 
        paragraphs (1) and (2), the Speaker and the majority leader 
        shall alternate every two years in appointing the chairman and 
        vice-chairman of the Commission.
    (f) Terms of Members.--
            (1) Members of congress.--Each member appointed to the 
        Commission who is a member of Congress shall serve for a term 
        of six years, except that, of the members first appointed under 
        paragraphs (1) and (2) of subsection (b), 2 members shall be 
        appointed to serve a term of three years under each such 
        paragraph.
            (2) Other members.--Each member of the Commission who is 
        not a member of Congress shall serve for a term of three years.
            (3) Term limits.--(A) A member of the Commission who is a 
        member of Congress and who serves more than three years of a 
        term may not be appointed to another term as a member.
            (B) A member of the Commission who is not a member of 
        Congress and who serves as a member of the Commission for more 
        than 56 months may not be appointed to another term as a 
        member.
    (g) Powers of Commission.--
            (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this subtitle, hold such hearings, sit 
        and act at such times and places, take such testimony, and 
        receive such evidence as the Commission considers appropriate. 
        The Commission may administer oaths to witnesses appearing 
        before it.
            (2) Obtaining information.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out its duties 
        under this subtitle. Upon request of the chairman, the head of 
        that department or agency shall furnish that information to the 
        Commission in a full and timely manner.
            (3) Subpoena power.--(A) The Commission may issue a 
        subpoena to require the attendance and testimony of witnesses 
        and the production of evidence relating to any matter under 
        investigation by the Commission.
            (B) If a person refuses to obey an order or subpoena of the 
        Commission that is issued in connection with a Commission 
        proceeding, the Commission may apply to the United States 
        district court in the judicial district in which the proceeding 
        is held for an order requiring the person to comply with the 
        subpoena or order.
            (4) Immunity.--The Commission is an agency of the United 
        States for purposes of part V of title 18, United States Code 
        (relating to immunity of witnesses).
            (5) Contract authority.--The Commission may contract with 
        and compensate government and private agencies or persons for 
        services without regard to section 3709 of the Revised Statutes 
        (41 U.S.C. 5).
    (h) Commission Procedures.--
            (1) Meetings.--The Commission shall meet at the call of the 
        chairman.
            (2) Quorum.--Seven members of the Commission shall 
        constitute a quorum but a lesser number may hold hearings.
    (i) Personnel Matters.--
            (1) Compensation.--Members shall not be paid by reason of 
        their service as members.
            (2) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
            (3) Director.--The Commission shall have a Director who 
        shall be appointed by the chairman. The Director shall be paid 
        at a rate not to exceed the maximum rate of basic pay payable 
        for GS-15 of the General Schedule.
            (4) Staff.--The Director may appoint and fix the pay of 
        additional personnel as the director considers appropriate.
            (5) Applicability of certain civil service laws.--The 
        director and staff of the Commission shall be appointed subject 
        to the provisions of title 5, United States Code, governing 
        appointments in the competitive service, and shall be paid in 
        accordance with the provisions of chapter 51 and subchapter III 
        of chapter 53 of that title relating to classification and 
        General Schedule pay rates.
    (j) Other Administrative Matters.--
            (1) Postal and printing services.--The Commission may use 
        the United States mails and obtain printing and binding 
        services in the same manner and under the same conditions as 
        other departments and agencies of the United States.
            (2) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its duties under this subtitle.
            (3) Experts and consultants.--The Commission may procure 
        temporary and intermittent services under section 3109(b) of 
        title 5, United States Code.
    (k) Sunset of Commission.--The Commission shall terminate on 
December 31, 2033, unless reauthorized by Congress.

SEC. 403. REVIEW OF EFFICIENCY AND NEED FOR FEDERAL AGENCIES.

    (a) In General.--The Commission shall review the efficiency and 
public need for each agency in accordance with the criteria described 
in section 404.
    (b) Recommendations; Report to Congress.--The Commission shall 
submit to Congress and the President not later than September 1 of each 
year a report containing--
            (1) an analysis of the efficiency of operation and public 
        need for each agency to be reviewed in the year in which the 
        report is submitted pursuant to the schedule submitted to 
        Congress under section 2;
            (2) recommendations on whether each such agency should be 
        abolished or reorganized;
            (3) recommendations on whether the functions of any other 
        agencies should be consolidated, transferred, or reorganized in 
        an agency to be reviewed in the year in which the report is 
        submitted pursuant to the schedule submitted to Congress under 
        section 2; and
            (4) recommendations for administrative and legislative 
        action with respect to each such agency, but not including 
        recommendations for appropriation levels.
    (c) Draft Legislation.--The Commission shall submit to Congress and 
the President not later than September 1 of each year a draft of 
legislation to carry out the recommendations of the Commission under 
subsection (b).
    (d) Information Gathering.--The Commission shall--
            (1) conduct public hearings on the abolishment of each 
        agency reviewed under subsection (b);
            (2) provide an opportunity for public comment on the 
        abolishment of each such agency;
            (3) require the agency to provide information to the 
        Commission as appropriate; and
            (4) consult with the Government Accountability Office, the 
        Office of Management and Budget, the Congressional Budget 
        Office, and the chairman and ranking minority members of the 
        committees of Congress with oversight responsibility for the 
        agency being reviewed regarding the operation of the agency.
    (e) Use of Program Inventory.--The Commission shall use the program 
inventory prepared under section 9 in reviewing the efficiency and 
public need for each agency under subsection (a).

SEC. 404. CRITERIA FOR REVIEW.

    The Commission shall evaluate the efficiency and public need for 
each agency pursuant to section 403 using the following criteria:
            (1) The effectiveness, and the efficiency of the operation 
        of, the programs carried out by each such agency.
            (2) Whether the programs carried out by the agency are cost 
        effective.
            (3) Whether the agency has acted outside the scope of its 
        original authority, and whether the original objectives of the 
        agency have been achieved.
            (4) Whether less restrictive or alternative methods exist 
        to carry out the functions of the agency.
            (5) The extent to which the jurisdiction of, and the 
        programs administered by, the agency duplicate or conflict with 
        the jurisdiction and programs of other agencies.
            (6) The potential benefits of consolidating programs 
        administered by the agency with similar or duplicative programs 
        of other agencies, and the potential for consolidating such 
        programs.
            (7) The number and types of beneficiaries or persons served 
        by programs carried out by the agency.
            (8) The extent to which any trends, developments, and 
        emerging conditions that are likely to affect the future nature 
        and extent of the problems or needs that the programs carried 
        out by the agency are intended to address.
            (9) The extent to which the agency has complied with the 
        provisions contained in the Government Performance and Results 
        Act of 1993 (Public Law 103-62; 107 Stat. 285).
            (10) The promptness and effectiveness with which the agency 
        seeks public input and input from State and local governments 
        on the efficiency and effectiveness of the performance of the 
        functions of the agency.
            (11) Whether the agency has worked to enact changes in the 
        law that are intended to benefit the public as a whole rather 
        than the specific business, institution, or individuals that 
        the agency regulates.
            (12) The extent to which the agency has encouraged 
        participation by the public as a whole in making its rules and 
        decisions rather than encouraging participation solely by those 
        it regulates.
            (13) The extent to which the public participation in 
        rulemaking and decision making of the agency has resulted in 
        rules and decisions compatible with the objectives of the 
        agency.
            (14) The extent to which the agency complies with section 
        552 of title 5, United States Code (commonly known as the 
        ``Freedom of Information Act'').
            (15) The extent to which the agency complies with equal 
        employment opportunity requirements regarding equal employment 
        opportunity.
            (16) The extent of the regulatory, privacy, and paperwork 
        impacts of the programs carried out by the agency.
            (17) The extent to which the agency has coordinated with 
        State and local governments in performing the functions of the 
        agency.
            (18) The potential effects of abolishing the agency on 
        State and local governments.
            (19) The extent to which changes are necessary in the 
        authorizing statutes of the agency in order that the functions 
        of the agency can be performed in the most efficient and 
        effective manner.

SEC. 405. COMMISSION OVERSIGHT.

    (a) Monitoring of Implementation of Recommendations.--The 
Commission shall monitor implementation of laws enacting provisions 
that incorporate recommendations of the Commission with respect to 
abolishment or reorganization of agencies.
    (b) Monitoring of Other Relevant Legislation.--
            (1) In general.--The Commission shall review and report to 
        Congress on all legislation introduced in either house of 
        Congress that establishes--
                    (A) a new agency; or
                    (B) a new program to be carried out by an existing 
                agency.
            (2) Report to congress.--The Commission shall include in 
        each report submitted to Congress under paragraph (1) an 
        analysis of whether--
                    (A) the functions of the proposed agency or program 
                could be carried out by one or more existing agencies;
                    (B) the functions of the proposed agency or program 
                could be carried out in a less restrictive manner than 
                the manner proposed in the legislation; and
                    (C) the legislation provides for public input 
                regarding the performance of functions by the proposed 
                agency or program.

SEC. 406. RULEMAKING AUTHORITY.

    The Commission may promulgate such rules as necessary to carry out 
this subtitle.

SEC. 407. RELOCATION OF FEDERAL EMPLOYEES.

    If the position of an employee of an agency is eliminated as a 
result of the abolishment of an agency in accordance with this 
subtitle, there shall be a reasonable effort to relocate such employee 
to a position within another agency.

SEC. 408. PROGRAM INVENTORY.

    (a) Preparation.--The Comptroller General and the Director of the 
Congressional Budget Office, in cooperation with the Director of the 
Congressional Research Service, shall prepare an inventory of Federal 
programs (in this subtitle referred to as the ``program inventory'') 
within each agency.
    (b) Purpose.--The purpose of the program inventory is to advise and 
assist the Congress and the Commission in carrying out the requirements 
of this subtitle. Such inventory shall not in any way bind the 
committees of the Senate or the House of Representatives with respect 
to their responsibilities under this subtitle and shall not infringe on 
the legislative and oversight responsibilities of such committees. The 
Comptroller General shall compile and maintain the inventory and the 
Director of the Congressional Budget Office shall provide budgetary 
information for inclusion in the inventory.
    (c) Inventory Content.--The program inventory shall set forth for 
each program each of the following matters:
            (1) The specific provision or provisions of law authorizing 
        the program.
            (2) The committees of the Senate and the House of 
        Representatives which have legislative or oversight 
        jurisdiction over the program.
            (3) A brief statement of the purpose or purposes to be 
        achieved by the program.
            (4) The committees which have jurisdiction over legislation 
        providing new budget authority for the program, including the 
        appropriate subcommittees of the Committees on Appropriations 
        of the Senate and the House of Representatives.
            (5) The agency and, if applicable, the subdivision thereof 
        responsible for administering the program.
            (6) The grants-in-aid, if any, provided by such program to 
        State and local governments.
            (7) The next reauthorization date for the program.
            (8) A unique identification number which links the program 
        and functional category structure.
            (9) The year in which the program was originally 
        established and, where applicable, the year in which the 
        program expires.
            (10) Where applicable, the year in which new budget 
        authority for the program was last authorized and the year in 
        which current authorizations of new budget authority expire.
    (d) Budget Authority.--The report also shall set forth for each 
program whether the new budget authority provided for such programs 
is--
            (1) authorized for a definite period of time;
            (2) authorized in a specific dollar amount but without 
        limit of time;
            (3) authorized without limit of time or dollar amounts;
            (4) not specifically authorized; or
            (5) permanently provided,
as determined by the Director of the Congressional Budget Office.
    (e) CBO Information.--For each program or group of programs, the 
program inventory also shall include information prepared by the 
Director of the Congressional Budget Office indicating each of the 
following matters:
            (1) The amounts of new budget authority authorized and 
        provided for the program for each of the preceding four fiscal 
        years and, where applicable, the four succeeding fiscal years.
            (2) The functional and subfunctional category in which the 
        program is presently classified and was classified under the 
        fiscal year 2010 budget.
            (3) The identification code and title of the appropriation 
        account in which budget authority is provided for the program.
    (f) Mutual Exchange of Information.--The Government Accountability 
Office, the Congressional Research Service, and the Congressional 
Budget Office shall permit the mutual exchange of available information 
in their possession which aids in the compilation of the program 
inventory.
    (g) Assistance by Executive Branch.--The Office of Management and 
Budget, and the Executive agencies and the subdivisions thereof shall, 
to the extent necessary and possible, provide the Government 
Accountability Office with assistance requested by the Comptroller 
General in the compilation of the program inventory.

SEC. 409. DEFINITION OF AGENCY.

    As used in this subtitle, the term ``agency'' has the meaning given 
that term by section 105 of title 5, United States Code, except that 
such term includes an advisory committee as that term is defined in 
section 102(2) of the Federal Advisory Committee Act.

                 Subtitle B--Legislative Line-Item Veto

SEC. 410. SHORT TITLE.

    This subtitle may be cited as the ``Legislative Line-Item Veto Act 
of 2009''.

SEC. 411. LEGISLATIVE LINE-ITEM VETO.

    (a) In General.--Title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.) is amended by 
striking all of part B (except for sections 1016 and 1013, which are 
redesignated as sections 1020 and 1021, respectively) and part C and 
inserting the following:

                  ``Part B--Legislative Line-Item Veto

                       ``line-item veto authority

    ``Sec. 1011.  (a) Proposed Cancellations.--Within 45 calendar days 
after the enactment of any bill or joint resolution providing any 
discretionary budget authority, item of direct spending, limited tariff 
benefit, or targeted tax benefit, the President may propose, in the 
manner provided in subsection (b), the cancellation of any dollar 
amount of such discretionary budget authority, item of direct spending, 
or targeted tax benefit. If the 45 calendar-day period expires during a 
period where either House of Congress stands adjourned sine die at the 
end of a Congress or for a period greater than 45 calendar days, the 
President may propose a cancellation under this section and transmit a 
special message under subsection (b) on the first calendar day of 
session following such a period of adjournment.
    ``(b) Transmittal of Special Message.--
            ``(1) Special message.--
                    ``(A) In general.--The President may transmit to 
                the Congress a special message proposing to cancel any 
                dollar amounts of discretionary budget authority, items 
                of direct spending, limited tariff benefits, or 
                targeted tax benefits.
                    ``(B) Contents of special message.--Each special 
                message shall specify, with respect to the 
                discretionary budget authority, items of direct 
                spending proposed, limited tariff benefits, or targeted 
                tax benefits to be canceled--
                            ``(i) the dollar amount of discretionary 
                        budget authority, the specific item of direct 
                        spending (that OMB, after consultation with 
                        CBO, estimates to increase budget authority or 
                        outlays as required by section 1017(9)), the 
                        limited tariff benefit, or the targeted tax 
                        benefit that the President proposes be 
                        canceled;
                            ``(ii) any account, department, or 
                        establishment of the Government to which such 
                        discretionary budget authority is available for 
                        obligation, and the specific project or 
                        governmental functions involved;
                            ``(iii) the reasons why such discretionary 
                        budget authority, item of direct spending, 
                        limited tariff benefit, or targeted tax benefit 
                        should be canceled;
                            ``(iv) to the maximum extent practicable, 
                        the estimated fiscal, economic, and budgetary 
                        effect (including the effect on outlays and 
                        receipts in each fiscal year) of the proposed 
                        cancellation;
                            ``(v) to the maximum extent practicable, 
                        all facts, circumstances, and considerations 
                        relating to or bearing upon the proposed 
                        cancellation and the decision to propose the 
                        cancellation, and the estimated effect of the 
                        proposed cancellation upon the objects, 
                        purposes, or programs for which the 
                        discretionary budget authority, item of direct 
                        spending, limited tariff benefit, or the 
                        targeted tax benefit is provided;
                            ``(vi) a numbered list of cancellations to 
                        be included in an approval bill that, if 
                        enacted, cancels discretionary budget 
                        authority, items of direct spending, limited 
                        tariff benefit, or targeted tax benefits 
                        proposed in that special message; and
                            ``(vii) if the special message is 
                        transmitted subsequent to or at the same time 
                        as another special message, a detailed 
                        explanation why the proposed cancellations are 
                        not substantially similar to any other proposed 
                        cancellation in such other message.
                    ``(C) Duplicative proposals prohibited.--The 
                President may not propose to cancel the same or 
                substantially similar discretionary budget authority, 
                item of direct spending, limited tariff benefit, or 
                targeted tax benefit more than one time under this Act.
                    ``(D) Maximum number of special messages.--The 
                President may not transmit to the Congress more than 5 
                special messages under this subsection related to any 
                bill or joint resolution described in subsection (a), 
                but may transmit not more than 10 special messages for 
                any omnibus budget reconciliation or appropriation 
                measure.
            ``(2) Enactment of approval bill.--
                    ``(A) Deficit reduction.--Amounts of budget 
                authority, items of direct spending, limited tariff 
                benefit, or targeted tax benefits which are canceled 
                pursuant to enactment of a bill as provided under this 
                section shall be dedicated only to reducing the deficit 
                or increasing the surplus.
                    ``(B) Adjustment of levels in the joint resolution 
                on the budget.--Not later than 5 days after the date of 
                enactment of an approval bill as provided under this 
                section, the chairs of the Committees on the Budget of 
                the Senate and the House of Representatives shall 
                revise allocations and aggregates and other appropriate 
                levels under the appropriate joint resolution on the 
                budget to reflect the cancellation, and the applicable 
                committees shall report revised suballocations pursuant 
                to section 302(b), as appropriate.
                    ``(C) Adjustments to statutory limits.--After 
                enactment of an approval bill as provided under this 
                section, the Office of Management and Budget shall 
                revise applicable limits under the Balanced Budget and 
                Emergency Deficit Control Act of 1985, as appropriate.
                    ``(D) Trust funds and special funds.--
                Notwithstanding subparagraph (A), nothing in this part 
                shall be construed to require or allow the deposit of 
                amounts derived from a trust fund or special fund which 
                are canceled pursuant to enactment of a bill as 
                provided under this section to any other fund.

                ``procedures for expedited consideration

    ``Sec. 1012.  (a) Expedited Consideration.--
            ``(1) In general.--The majority leader or minority leader 
        of each House or his designee shall (by request) introduce an 
        approval bill as defined in section 1017 not later than the 
        third day of session of that House after the date of receipt of 
        a special message transmitted to the Congress under section 
        1011(b). If the bill is not introduced as provided in the 
        preceding sentence in either House, then, on the fourth day of 
        session of that House after the date of receipt of the special 
        message, any Member of that House may introduce the bill.
            ``(2) Consideration in the house of representatives.--
                    ``(A) Referral and reporting.--Any committee of the 
                House of Representatives to which an approval bill is 
                referred shall report it to the House of 
                Representatives without amendment not later than the 
                seventh legislative day after the date of its 
                introduction. If a committee fails to report the bill 
                within that period or the House of Representatives has 
                adopted a joint resolution providing for adjournment 
                sine die at the end of a Congress, such committee shall 
                be automatically discharged from further consideration 
                of the bill and it shall be placed on the appropriate 
                calendar.
                    ``(B) Proceeding to consideration.--After an 
                approval bill is reported by or discharged from 
                committee or the House of Representatives has adopted a 
                joint resolution providing for adjournment sine die at 
                the end of a Congress, it shall be in order to move to 
                proceed to consider the approval bill in the House of 
                Representatives within two legislative days after the 
                day on which the proponent announces his intention to 
                offer the motion. Such a motion shall not be in order 
                after the House of Representatives has disposed of a 
                motion to proceed with respect to that special message. 
                The previous question shall be considered as ordered on 
                the motion to its adoption without intervening motion. 
                A motion to reconsider the vote by which the motion is 
                disposed of shall not be in order.
                    ``(C) Consideration.--The approval bill shall be 
                considered as read. All points of order against an 
                approval bill and against its consideration are waived. 
                The previous question shall be considered as ordered on 
                an approval bill to its passage without intervening 
                motion except five hours of debate equally divided and 
                controlled by the proponent and an opponent and one 
                motion to limit debate on the bill. A motion to 
                reconsider the vote on passage of the bill shall not be 
                in order.
                    ``(D) Senate bill.--An approval bill received from 
                the Senate shall not be referred to committee.
            ``(3) Consideration in the senate.--
                    ``(A) Motion to proceed to consideration.--A motion 
                to proceed to the consideration of a bill under this 
                subsection in the Senate shall not be debatable. It 
                shall not be in order to move to reconsider the vote by 
                which the motion to proceed is agreed to or disagreed 
                to.
                    ``(B) Limits on debate.--Debate in the Senate on a 
                bill under this subsection, and all debatable motions 
                and appeals in connection therewith (including debate 
                pursuant to subparagraph (D)), shall not exceed 10 
                hours, equally divided and controlled in the usual 
                form.
                    ``(C) Appeals.--Debate in the Senate on any 
                debatable motion or appeal in connection with a bill 
                under this subsection shall be limited to not more than 
                1 hour, to be equally divided and controlled in the 
                usual form.
                    ``(D) Motion to limit debate.--A motion in the 
                Senate to further limit debate on a bill under this 
                subsection is not debatable.
                    ``(E) Motion to recommit.--A motion to recommit a 
                bill under this subsection is not in order.
                    ``(F) Consideration of the house of representatives 
                bill.--
                            ``(i) In general.--If the Senate has 
                        received the House of Representatives companion 
                        bill to the bill introduced in the Senate prior 
                        to the vote required under paragraph (1)(C), 
                        then the Senate may consider, and the vote 
                        under paragraph (1)(c) may occur on, the House 
                        of Representatives companion bill.
                            ``(ii) Procedure after vote on senate 
                        bill.--If the Senate votes, pursuant to 
                        paragraph (1)(C), on the bill introduced in the 
                        Senate, then immediately following that vote, 
                        or upon receipt of the House of Representatives 
                        companion bill, the House of Representatives 
                        bill shall be deemed to be considered, read the 
                        third time, and the vote on passage of the 
                        Senate bill shall be considered to be the vote 
                        on the bill received from the House of 
                        Representatives.
    ``(b) Amendments Prohibited.--No amendment to, or motion to strike 
a provision from, a bill considered under this section shall be in 
order in either the Senate or the House of Representatives.

                   ``presidential deferral authority

    ``Sec. 1013.  (a) Temporary Presidential Authority To Withhold 
Discretionary Budget Authority.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may direct that any dollar amount of 
        discretionary budget authority to be canceled in that special 
        message shall not be made available for obligation for a period 
        not to exceed 45 calendar days from the date the President 
        transmits the special message to the Congress.
            ``(2) Early availability.--The President shall make any 
        dollar amount of discretionary budget authority deferred 
        pursuant to paragraph (1) available at a time earlier than the 
        time specified if he determines that continuation of the 
        deferral not further the purposes of this Act.
    ``(b) Temporary Presidential Authority To Suspend Direct 
Spending.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        item of direct spending proposed to be canceled in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any item of direct spending at a time earlier 
        than the time specified if he determines that continuation of 
        the suspension will not further the purposes of this Act.
    ``(c) Temporary Presidential Authority To Suspend a Limited Tariff 
Benefit.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        limited tariff benefit proposed to be canceled in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any limited tariff benefit at a time earlier 
        than the time specified if he determines that continuation of 
        the suspension will not further the purposes of this Act.
    ``(d) Temporary Presidential Authority To Suspend a Targeted Tax 
Benefit.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        targeted tax benefit proposed to be repealed in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any targeted tax benefit at a time earlier 
        than the time specified if he determines that continuation of 
        the suspension will not further the purposes of this Act.
    ``(e) Extension of 45-Day Period.--The President may transmit to 
the Congress not more than one supplemental special message to extend 
the period to suspend the implementation of any discretionary budget 
authority, item of direct spending, limited tariff benefit, or targeted 
tax benefit, as applicable, by an additional 45 calendar days. Any such 
supplemental message may not be transmitted to the Congress before the 
40th day of the 45-day period set forth in the preceding message or 
later than the last day of such period.

               ``identification of targeted tax benefits

    ``Sec. 1014.  (a) Statement.--The chairman of the Committee on Ways 
and Means of the House of Representatives and the chairman of the 
Committee on Finance of the Senate acting jointly (hereafter in this 
subsection referred to as the `chairmen') shall review any revenue or 
reconciliation bill or joint resolution which includes any amendment to 
the Internal Revenue Code of 1986 that is being prepared for filing by 
a committee of conference of the two Houses, and shall identify whether 
such bill or joint resolution contains any targeted tax benefits. The 
chairmen shall provide to the committee of conference a statement 
identifying any such targeted tax benefits or declaring that the bill 
or joint resolution does not contain any targeted tax benefits. Any 
such statement shall be made available to any Member of Congress by the 
chairmen immediately upon request.
    ``(b) Statement Included in Legislation.--
            ``(1) In general.--Notwithstanding any other rule of the 
        House of Representatives or any rule or precedent of the 
        Senate, any revenue or reconciliation bill or joint resolution 
        which includes any amendment to the Internal Revenue Code of 
        1986 reported by a committee of conference of the two Houses 
        may include, as a separate section of such bill or joint 
        resolution, the information contained in the statement of the 
        chairmen, but only in the manner set forth in paragraph (2).
            ``(2) Applicability.--The separate section permitted under 
        subparagraph (A) shall read as follows: `Section 1021 of the 
        Congressional Budget and Impoundment Control Act of 1974 shall 
        ______ apply to ________.', with the blank spaces being filled 
        in with--
                    ``(A) in any case in which the chairmen identify 
                targeted tax benefits in the statement required under 
                subsection (a), the word `only' in the first blank 
                space and a list of all of the specific provisions of 
                the bill or joint resolution in the second blank space; 
                or
                    ``(B) in any case in which the chairmen declare 
                that there are no targeted tax benefits in the 
                statement required under subsection (a), the word `not' 
                in the first blank space and the phrase `any provision 
                of this Act' in the second blank space.
    ``(c) Identification in Revenue Estimate.--With respect to any 
revenue or reconciliation bill or joint resolution with respect to 
which the chairmen provide a statement under subsection (a), the Joint 
Committee on Taxation shall--
            ``(1) in the case of a statement described in subsection 
        (b)(2)(A), list the targeted tax benefits in any revenue 
        estimate prepared by the Joint Committee on Taxation for any 
        conference report which accompanies such bill or joint 
        resolution, or
            ``(2) in the case of a statement described in 13 subsection 
        (b)(2)(B), indicate in such revenue estimate that no provision 
        in such bill or joint resolution has been identified as a 
        targeted tax benefit.
    ``(d) President's Authority.--If any revenue or reconciliation bill 
or joint resolution is signed into law--
            ``(1) with a separate section described in subsection 
        (b)(2), then the President may use the authority granted in 
        this section only with respect to any targeted tax benefit in 
        that law, if any, identified in such separate section; or
            ``(2) without a separate section described in subsection 
        (b)(2), then the President may use the authority granted in 
        this section with respect to any targeted tax benefit in that 
        law.

                      ``treatment of cancellations

    ``Sec. 1015. The cancellation of any dollar amount of discretionary 
budget authority, item of direct spending, limited tariff benefit, or 
targeted tax benefit shall take effect only upon enactment of the 
applicable approval bill. If an approval bill is not enacted into law 
before the end of the applicable period under section 1013, then all 
proposed cancellations contained in that bill shall be null and void 
and any such dollar amount of discretionary budget authority, item of 
direct spending, limited tariff benefit, or targeted tax benefit shall 
be effective as of the original date provided in the law to which the 
proposed cancellations applied.

                    ``reports by comptroller general

    ``Sec. 1016. With respect to each special message under this part, 
the Comptroller General shall issue to the Congress a report 
determining whether any discretionary budget authority is not made 
available for obligation or item of direct spending, limited tariff 
benefit, or targeted tax benefit continues to be suspended after the 
deferral authority set forth in section 1013 of the President has 
expired.

                             ``definitions

    ``Sec. 1017. As used in this part:
            ``(1) Appropriation law.--The term `appropriation law' 
        means an Act referred to in section 105 of title 1, United 
        States Code, including any general or special appropriation 
        Act, or any Act making supplemental, deficiency, or continuing 
        appropriations, that has been signed into law pursuant to 
        Article I, section 7, of the Constitution of the United States.
            ``(2) Approval bill.--The term `approval bill' means a bill 
        or joint resolution which only approves proposed cancellations 
        of dollar amounts of discretionary budget authority, items of 
        new direct spending, limited tariff benefits, or targeted tax 
        benefits in a special message transmitted by the President 
        under this part and--
                    ``(A) the title of which is as follows: `A bill 
                approving the proposed cancellations transmitted by the 
                President on ___', the blank space being filled in with 
                the date of transmission of the relevant special 
                message and the public law number to which the message 
                relates;
                    ``(B) which does not have a preamble; and
                    ``(C) which provides only the following after the 
                enacting clause: `That the Congress approves of 
                proposed cancellations ___', the blank space being 
                filled in with a list of the cancellations contained in 
                the President's special message, `as transmitted by the 
                President in a special message on ____', the blank 
                space being filled in with the appropriate date, 
                `regarding ____.', the blank space being filled in with 
                the public law number to which the special message 
                relates;
                    ``(D) which only includes proposed cancellations 
                that are estimated by CBO to meet the definition of 
                discretionary budgetary authority or items of direct 
                spending, or limited tariff benefits, or that are 
                identified as targeted tax benefits pursuant to section 
                1014;
                    ``(E) if any proposed cancellation other than 
                discretionary budget authority or targeted tax benefits 
                is estimated by CBO to not meet the definition of item 
                of direct spending, then the approval bill shall 
                include at the end: `The President shall cease the 
                suspension of the implementation of the following under 
                section 1013 of the Impoundment Control Act of 1974: 
                _____', the blank space being filled in with the list 
                of such proposed cancellations; and
                    ``(F) if no CBO estimate is available, then the 
                entire list of legislative provisions proposed by the 
                President is inserted in the second blank space in 
                subparagraph (C).
            ``(3) Calendar day.--The term `calendar day' means a 
        standard 24-hour period beginning at midnight.
            ``(4) Cancel or cancellation.--The terms `cancel' or 
        `cancellation' means to prevent--
                    ``(A) budget authority from having legal force or 
                effect;
                    ``(B) in the case of entitlement authority, to 
                prevent the specific legal obligation of the United 
                States from having legal force or effect;
                    ``(C) in the case of the food stamp program, to 
                prevent the specific provision of law that provides 
                such benefit from having legal force or effect; or
                    ``(D) a limited tariff benefit from having legal 
                force or effect, and to make any necessary, conforming 
                statutory change to ensure that such limited tariff 
                benefit is not implemented; or
                    ``(E) a targeted tax benefit from having legal 
                force or effect, and to make any necessary, conforming 
                statutory change to ensure that such targeted tax 
                benefit is not implemented and that any budgetary 
                resources are appropriately canceled.
            ``(5) Congressional budget office.--The term `CBO' means 
        the Director of the Congressional Budget Office.
            ``(6) Direct spending.--The term `direct spending' means--
                    ``(A) budget authority provided by law (other than 
                an appropriation law);
                    ``(B) entitlement authority; and
                    ``(C) the food stamp program.
            ``(7) Amount of discretionary budget authority.--(A) Except 
        as provided in subparagraph (B), the term `dollar amount of 
        discretionary budget authority' means the entire dollar amount 
        of budget authority--
                            ``(i) specified in an appropriation law, or 
                        the entire dollar amount of budget authority or 
                        obligation limitation required to be allocated 
                        by a specific proviso in an appropriation law 
                        for which a specific dollar figure was not 
                        included;
                            ``(ii) represented separately in any table, 
                        chart, or explanatory text included in the 
                        statement of managers or the governing 
                        committee report accompanying such law;
                            ``(iii) required to be allocated for a 
                        specific program, project, or activity in a law 
                        (other than an appropriation law) that mandates 
                        the expenditure of budget authority from 
                        accounts, programs, projects, or activities for 
                        which budget authority is provided in an 
                        appropriation law;
                            ``(iv) represented by the product of the 
                        estimated procurement cost and the total 
                        quantity of items specified in an appropriation 
                        law or included in the statement of managers or 
                        the governing committee report accompanying 
                        such law; or
                            ``(v) represented by the product of the 
                        estimated procurement cost and the total 
                        quantity of items required to be provided in a 
                        law (other than an appropriation law) that 
                        mandates the expenditure of budget authority 
                        from accounts, programs, projects, or 
                        activities for which budget authority is 
                        provided in an appropriation law.
                    ``(B) The term `dollar amount of discretionary 
                budget authority' does not include--
                            ``(i) direct spending;
                            ``(ii) budget authority in an appropriation 
                        law which funds direct spending provided for in 
                        other law;
                            ``(iii) any existing budget authority 
                        canceled in an appropriation law; or
                            ``(iv) any restriction, condition, or 
                        limitation in an appropriation law or the 
                        accompanying statement of managers or committee 
                        reports on the expenditure of budget authority 
                        for an account, program, project, or activity, 
                        or on activities involving such expenditure.
            ``(8) Item of direct spending.--The term `item of direct 
        spending' means any provision of law that results in an 
        increase in budget authority or outlays for direct spending 
        relative to the most recent levels calculated consistent with 
        the methodology used to calculate a baseline under section 257 
        of the Balanced Budget and Emergency Deficit Control Act of 
        1985 and included with a budget submission under section 
        1105(a) of title 31, United States Code, in the first year or 
        the 5-year period for which the item is effective. However, 
        such item does not include an extension or reauthorization of 
        existing direct spending, but instead only refers to provisions 
        of law that increase such direct spending.
            ``(9) Limited tariff benefit.--The term `limited tariff 
        benefit' means any provision of law that modifies the 
        Harmonized Tariff Schedule of the United States in a manner 
        that benefits 10 or fewer entities (as defined in paragraph 
        (12)(B)).
            ``(10) OMB.--The term `OMB' means the Director of the 
        Office of Management and Budget.
            ``(11) Omnibus reconciliation or appropriation measure.--
        The term `omnibus reconciliation or appropriation measure' 
        means--
                    ``(A) in the case of a reconciliation bill, any 
                such bill that is reported to its House by the 
                Committee on the Budget; or
                    ``(B) in the case of an appropriation measure, any 
                such measure that provides appropriations for programs, 
                projects, or activities falling within 2 or more 
                section 302(b) suballocations.
            ``(12) Targeted tax benefit.--(A) The term `targeted tax 
        benefit' means any revenue-losing provision that provides a 
        Federal tax deduction, credit, exclusion, or preference to ten 
        or fewer beneficiaries (determined with respect to either 
        present law or any provision of which the provision is a part) 
        under the Internal Revenue Code of 1986 in any year for which 
        the provision is in effect;
                    ``(B) for purposes of subparagraph (A)--
                            ``(i) all businesses and associations that 
                        are members of the same controlled group of 
                        corporations (as defined in section 1563(a) of 
                        the Internal Revenue Code of 1986) shall be 
                        treated as a single beneficiary;
                            ``(ii) all shareholders, partners, members, 
                        or beneficiaries of a corporation, partnership, 
                        association, or trust or estate, respectively, 
                        shall be treated as a single beneficiary;
                            ``(iii) all employees of an employer shall 
                        be treated as a single beneficiary;
                            ``(iv) all qualified plans of an employer 
                        shall be treated as a single beneficiary;
                            ``(v) all beneficiaries of a qualified plan 
                        shall be treated as a single beneficiary;
                            ``(vi) all contributors to a charitable 
                        organization shall be treated as a single 
                        beneficiary;
                            ``(vii) all holders of the same bond issue 
                        shall be treated as a single beneficiary; and
                            ``(viii) if a corporation, partnership, 
                        association, trust or estate is the beneficiary 
                        of a provision, the shareholders of the 
                        corporation, the partners of the partnership, 
                        the members of the association, or the 
                        beneficiaries of the trust or estate shall not 
                        also be treated as beneficiaries of such 
                        provision;
                    ``(C) for the purpose of this paragraph, the term 
                `revenue-losing provision' means any provision that is 
                estimated to result in a reduction in Federal tax 
                revenues (determined with respect to either present law 
                or any provision of which the provision is a part) for 
                any one of the two following periods--
                            ``(i) the first fiscal year for which the 
                        provision is effective; or
                            ``(ii) the period of the five fiscal years 
                        beginning with the first fiscal year for which 
                        the provision is effective;
                    ``(D) the term `targeted tax benefit' does not 
                include any provision which applies uniformly to an 
                entire industry; and
                    ``(E) the terms used in this paragraph shall have 
                the same meaning as those terms have generally in the 
                Internal Revenue Code of 1986, unless otherwise 
                expressly provided.

                              ``expiration

    ``Sec. 1018. This title shall have no force or effect on or after 
October 1, 2019.

                          ``deficit reduction

    ``Sec. 1019. All spending reductions related to this title shall be 
for deficit reduction.''.

SEC. 412. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Exercise of Rulemaking Powers.--Section 904 of the 
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
            (1) in subsection (a), by striking ``1017'' and inserting 
        ``1012''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``section 1012''.
    (b) Analysis by Congressional Budget Office.--Section 402 of the 
Congressional Budget Act of 1974 is amended by inserting ``(a)'' after 
``402.'' and by adding at the end the following new subsection:
    ``(b) Upon the receipt of a special message under section 1011 
proposing to cancel any item of direct spending, the Director of the 
Congressional Budget Office shall prepare an estimate of the savings in 
budget authority or outlays resulting from such proposed cancellation 
relative to the most recent levels calculated consistent with the 
methodology used to calculate a baseline under section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 and included 
with a budget submission under section 1105(a) of title 31, United 
States Code, and transmit such estimate to the chairmen of the 
Committees on the Budget of the House of Representatives and Senate.''.
    (c) Clerical Amendments.--(1) Section 1(a) of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by striking the 
last sentence.
    (2) Section 1021(c) of such Act (as redesignated) is amended is 
amended by striking ``rescinded or that is to be reserved'' and insert 
``canceled'' and by striking ``1012'' and inserting ``1011''.
    (3) 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 deleting the contents for parts B and C of title X and 
inserting the following:

                  ``Part B--Legislative Line-Item Veto

``Sec. 1011. Line-item veto authority.
``Sec. 1012. Procedures for expedited consideration.
``Sec. 1013. Presidential deferral authority.
``Sec. 1014. Identification of targeted tax benefits.
``Sec. 1015. Treatment of cancellations.
``Sec. 1016. Reports by Comptroller General.
``Sec. 1017. Definitions.
``Sec. 1018. Expiration.
``Sec. 1019. Deficit reduction.
``Sec. 1020. Suits by Comptroller General.
``Sec. 1021. Proposed deferrals of budget authority.''.
    (d) Effective Date.--The amendments made by this subtitle shall 
take effect on the date of its enactment and apply only to any dollar 
amount of discretionary budget authority, item of direct spending, or 
targeted tax benefit provided in an Act enacted on or after the date of 
enactment of this Act.

SEC. 413. RESCISSION MEASURES CONSIDERED.

    (a) Rules Amendment.--Clause 6(c) of rule XIII of the Rules of the 
House of Representatives is amended by inserting before the period ``, 
or a rule or order that limits any amendment otherwise in order to a 
rescission bill''.
    (b) Automatic Allocations Reductions.--Clause 4(b) of rule X of the 
Rules of the House of Representatives is amended by inserting ``(1)'' 
after ``(b)'', by redesignating subparagraphs (1) through (6) as 
subdivisions (A) through (F), respectively, and by adding at the end 
the following:
    ``(2)(A) Whenever a rescission bill passes the House of 
Representatives, the Committee on the Budget shall immediately reduce 
the applicable allocations under section 302(a) of the Congressional 
Budget Act of 1974 by the total amount of reductions in budget 
authority and in outlays resulting from such rescission bill.
    ``(B) As used in this subparagraph, the term `rescission bill' 
means a bill or joint resolution which only rescinds, in whole or in 
part, budget authority and which includes only titles corresponding to 
the most recently enacted appropriation bills that continue to include 
unobligated balances.''.
    (c) Privileged Discharge Resolutions.--Rule XIII of the Rules of 
the House of Representatives is amended by adding at the end the 
following new clause:
    ``8. (a) By February 1, May 1, July 30, and November 11 of each 
session, the majority leader shall introduce a rescission bill. If such 
bill is not introduced by that date, then whenever a rescission bill is 
introduced during a session on or after that date, a motion to 
discharge the committee from its consideration shall be privileged 
after the 10-legislative day period beginning on that date for the 
first 5 such bills.
    ``(b) It shall not be in order to offer any amendment to a 
rescission bill except an amendment that increases the amount of budget 
authority that such bill rescinds.
    ``(c) As used in this clause and in clause 6, the term `rescission 
bill' has the meaning given such term in clause 4(b)(2)(B) of rule 
X.''.
    (d) Point of Order.--Rule XXI of the Rules of the House of 
Representatives (as amended by subsection (d)) is further amended by 
adding at the end the following new clause:
    ``9. (a) It shall not be in order to consider any rescission bill, 
or conference report thereon or amendment thereto, unless--
            ``(1) in the case of such bill or conference report 
        thereon, it is made available to Members and the general public 
        on the Internet for at least 48 hours before its consideration; 
        or
            ``(2)(A) in the case of an amendment to such rescission 
        bill made in order by a rule, it is made available to Members 
        and the general public on the Internet within one hour after 
        the rule is filed; or
            ``(B) in the case of an amendment under an open rule, it is 
        made available to Members and the general public on the 
        Internet immediately after being offered; in a format that is 
        searchable and sortable.
            ``(3) No amendment to an amendment to a rescission bill 
        shall be in order unless germane to the amendment to which it 
        is offered.''.

      Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse

SEC. 420. SHORT TITLE.

    This Act may be cited as the ``Commission on the Accountability and 
Review of Federal Agencies Act of 2009''.

SEC. 421. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established the Commission on the 
Accountability and Review of Federal Agencies (hereafter in this Act 
referred to as the ``Commission'').
    (b) Membership.--
            (1) Number and appointment.--
                    (A) In general.--The Commission shall be composed 
                of 7 members, whom shall have experience in finance and 
                the analysis of Federal spending, appointed by the 
                President after consultation with the majority and 
                minorities leaders of the House of Representatives and 
                the Senate, as follows:
                            (i) One in consultation with the Speaker of 
                        the House of Representatives.
                            (ii) One in consultation with the minority 
                        leader of the House of Representatives.
                            (iii) One in consultation with the majority 
                        leader of the Senate.
                            (iv) One in consultation with the minority 
                        leader of the Senate.
                            (v) Three other members.
                    (B) Ex officio members.--The President may appoint 
                up to 4 Members of Congress (up to 2 from each House) 
                as nonvoting ex officio members of the Commission.
            (2) Chairman and vice-chairman.--The President shall 
        appoint a chairman and vice-chairman from among the members of 
        the Commission.
    (c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same manner as the 
original appointment.
    (d) Initial Meeting.--Not later than 30 days after the date on 
which all members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    (e) Meetings.--The Commission shall meet at the call of the 
chairman.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.

SEC. 422. DUTIES OF THE COMMISSION.

    (a) Definition.--The term ``agency'', as used in this section, has 
the meaning given the term ``executive agency'' under section 105 of 
title 5, United States Code.
    (b) In General.--The Commission shall--
            (1) evaluate all agencies and programs within those 
        agencies, using the criteria under subsection (c); and
            (2) submit to Congress--
                    (A) a plan with recommendations of the agencies and 
                programs that should be realigned or eliminated; and
                    (B) proposed legislation to implement the plan 
                under subparagraph (A), but shall be limited in content 
                to matters directly related to the purpose of the 
                Commission.
    (c) Criteria.--
            (1) Cost effective.--Whether the agency or program as 
        carried out by the agency is cost effective and achieves its 
        stated purpose of goals.
            (2) Mission.--The extent to which the program has achieved 
        or completed its intended purpose.
            (3) Duplicative.--The extent to which the agency or program 
        duplicates or conflicts with other Federal agencies, State and 
        local government, or the private sector.
            (4) Coordination with state and local governments.--The 
        extent to which the agency coordinates effectively with State 
        and local governments in performing the functions of the 
        program.
            (5) Performance.--The extent to which the program failed to 
        meet its objectives or a national priority or purpose
            (6) Management structure.--The extent to which changes in 
        the management structure of the agency or program or its 
        placement in the Executive Branch are needed to improve the 
        overall efficiency, effectiveness, or accountability of 
        Executive Branch operations.
            (7) National needs.--The extent to which the program 
        benefits special interest groups and does not meet a national 
        priority or purpose.
    (d) Report.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Commission shall submit to the 
        President and Congress a report that includes--
                    (A) the plan described under subsection (b)(1) with 
                supporting documentation for all recommendations; and
                    (B) the proposed legislation described under 
                subsection (b)(2).
            (2) Use of savings.--The proposed legislation under 
        paragraph (1)(B) shall provide that all funds saved by the 
        implementation of the plan under paragraph (1)(A) shall be used 
        for deficit reduction.

SEC. 423. POWERS OF THE COMMISSION.

    (a) Hearings and Subpoena Power.--The Commission or, at its 
direction, any subcommittee or member of the Commission, may, for the 
purpose of carrying out this Act--
            (1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and 
        administer such oaths as any member of the Commission considers 
        advisable;
            (2) require, by subpoena or otherwise, the attendance and 
        testimony of such witnesses as any member of the Commission 
        considers advisable; and
            (3) require, by subpoena or otherwise, the production of 
        such books, records, correspondence, memoranda, papers, 
        documents, tapes, and other evidentiary materials relating to 
        any matter under investigation by the Commission.
    (b) Enforcement of Subpoenas.--The Commission may issue subpoenas 
as follows:
            (1) Issuance.--Subpoenas shall only be issued pursuant to 
        this section if approved by a vote of the Commission, shall 
        bear the signature of the chairman of the Commission, and shall 
        be served by a person or class of persons designated by the 
        chairman for that purpose.
            (2) Enforcement.--In the case of contumacy or failure to 
        obey a subpoena issued under subsection (a), the United States 
        district court for the judicial district in which the 
        subpoenaed person resides, is served, or may be found, may 
        issue an order requiring such person to appear at any 
        designated place to testify or to produce documentary or other 
        evidence. Any failure to obey the order of the court may be 
        punished by the court as a contempt of that court.
            (3) Limitation on issuance and enforcement.--Subpoenas may 
        only be issued pursuant to this section to Federal agencies, 
        Federal contractors, or persons or entities receiving Federal 
        funds, and only for information or matter directly related to 
        the purpose of the Commission.
    (c) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this Act. Upon request of 
the chairman of the Commission, the head of such department or agency 
shall furnish such information to the Commission.
    (d) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.

SEC. 424. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--
            (1) Non-federal members.--Except as provided under 
        subsection (b), each member of the Commission who is not an 
        officer or employee of the Federal Government shall not be 
        compensated.
            (2) Federal officers or employees.--All members of the 
        Commission who are officers or employees of the United States 
        shall serve without compensation in addition to that received 
        for their services as officers or employees of the United 
        States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The chairman of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--Upon the approval of the chairman, the 
        executive director may fix the compensation of the executive 
        director and other personnel without regard to chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to classification of positions and General Schedule 
        pay rates, except that the rate of pay for the executive 
        director and other personnel may not exceed the maximum rate 
        payable for a position at GS-15 of the General Schedule under 
        section 5332 of such title.
            (3) Personnel as federal employees.--
                    (A) In general.--The executive director and any 
                personnel of the Commission who are employees shall be 
                employees under section 2105 of title 5, United States 
                Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 
                89, and 90 of that title.
                    (B) Members of commission.--Subparagraph (A) shall 
                not be construed to apply to members of the Commission.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 425. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits the report under section 3(d).

SEC. 426. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.

    (a) Definitions.--In this section--
            (1) the term ``implementation bill'' means only a bill 
        which is introduced as provided under subsection (b), and 
        contains the proposed legislation included in the report 
        submitted to Congress under section 3, without modification; 
        and
            (2) the term ``calendar day'' means a calendar day other 
        than 1 on which either House is not in session because of an 
        adjournment of more than 3 days to a date certain.
    (b) Introduction; Referral; and Report or Discharge.--
            (1) Introduction.--On the first calendar day on which both 
        Houses are in session, on or immediately following the date on 
        which the report is submitted to Congress under section 3, a 
        single implementation bill shall be introduced (by request)--
                    (A) in the Senate by the majority leader of the 
                Senate, for himself and the minority leader of the 
                Senate, or by Members of the Senate designated by the 
                majority leader and minority leader of the Senate; and
                    (B) in the House of Representatives by the majority 
                leader of the House of Representatives, for himself and 
                the minority leader of the House of Representatives, or 
                by Members of the House of Representatives designated 
                by the Speaker and minority leader of the House of 
                Representatives.
            (2) Referral.--The implementation bills introduced under 
        paragraph (1) shall be referred to any appropriate committee of 
        jurisdiction in the Senate and any appropriate committee of 
        jurisdiction in the House of Representatives. A committee to 
        which an implementation bill is referred under this paragraph 
        may report such bill to the respective House without 
        substantive revision.
            (3) Report or discharge.--If a committee to which an 
        implementation bill is referred has not reported such bill by 
        the end of the 30th calendar day, excepting Saturdays and 
        Sundays, after the date of the introduction of such bill, such 
        committee shall be immediately discharged from further 
        consideration of such bill, and upon being reported or 
        discharged from the committee, such bill shall be placed on the 
        appropriate calendar.
    (c) Floor Consideration.--
            (1) In general.--When the committee to which an 
        implementation bill is referred has reported, or has been 
        discharged under subsection (b)(3), it is at any time 
        thereafter in order (even though a previous motion to the same 
        effect has been disagreed to) for any Member of the respective 
        House to move to proceed to the consideration of the 
        implementation bill, and all points of order against such 
        legislation and against its consideration) are waived, except 
        those arising under sections 302(f) and 311 of the 
        Congressional Budget Act of 1974. The motion is highly 
        privileged in the House of Representatives and is privileged in 
        the Senate and is not debatable. The motion is not subject to 
        amendment, or to a motion to postpone, or motion to proceed to 
        the consideration of other business. A motion to reconsider the 
        vote by which the motion is agreed to or disagreed to shall not 
        be in order. If a motion to proceed to the consideration of the 
        implementation bill is agreed to, it shall remain the 
        unfinished business of the respective House until disposed of.
            (2) Cost estimate.--An implementation bill may not be 
        considered pursuant to paragraph (1) unless a cost estimate has 
        been prepared for such bill by the Congressional Budget Office 
        and been publicly available for 72 hours prior to 
        consideration.
            (3) Amendments.--An implementation bill may not be amended 
        in the Senate or the House of Representatives.
            (4) Debate.--Debate on the implementation bill, and on all 
        debatable motions and appeals in connection therewith, shall be 
        limited to not more than 10 hours, which shall be divided 
        equally between those favoring and those opposing the 
        resolution. A motion further to limit debate is in order and 
        not debatable. An amendment to, or a motion to postpone, or a 
        motion to proceed to the consideration of other business, or a 
        motion to recommit the implementation bill is not in order. A 
        motion to reconsider the vote by which the implementation bill 
        is agreed to or disagreed to is not in order.
            (5) Vote on final passage.--Immediately following the 
        conclusion of the debate on an implementation bill, and a 
        single quorum call at the conclusion of the debate if requested 
        in accordance with the rules of the appropriate House, the vote 
        on final passage of the implementation bill shall occur.
            (6) Rulings of the chair on procedure.--Appeals from the 
        decisions of the Chair relating to the application of the rules 
        of the Senate or the House of Representatives, as the case may 
        be, to the procedure relating to an implementation bill shall 
        be decided without debate.
    (d) Coordination With Action by Other House.--If, before the 
passage by 1 House of an implementation bill of that House, that House 
receives from the other House an implementation bill, then the 
following procedures shall apply:
            (1) Non-referral.--The implementation bill of the other 
        House shall not be referred to a committee.
            (2) Vote on bill of other house.--With respect to an 
        implementation bill of the House receiving the implementation 
        bill--
                    (A) the procedure in that House shall be the same 
                as if no implementation bill had been received from the 
                other House; but
                    (B) the vote on final passage shall be on the 
                implementation bill of the other House.
    (e) Rules of the Senate and the House of Representatives.--This 
section is enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of an implementation bill described in 
        subsection (a), and it supersedes other rules only to the 
        extent that it is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 427. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary for each of fiscal years 2010 through 2013 for carrying out 
this Act.

                   TITLE V--TRANSPARENCY IN BUDGETING

SEC. 500. SHORT TITLE.

    This title may be cited as the ``Transparency in Budgeting Act of 
2009''.

Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal 
               Employees and Uniformed Services Personnel

SEC. 501. CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Civil Service Retirement and Disability Fund.--Chapter 83 of 
title 5, United States Code, is amended--
            (1) in section 8331--
                    (A) in paragraph (17)--
                            (i) by striking ``normal cost'' and 
                        inserting ``normal cost percentage''; and
                            (ii) by inserting ``and standards (using 
                        dynamic assumptions)'' after ``practice'';
                    (B) by amending paragraph (18) to read as follows:
            ``(18) `Fund balance' means the current net assets of the 
        Fund available for payment of benefits, as determined by the 
        Office in accordance with appropriate accounting standards, but 
        does not include any amount attributable to--
                    ``(A) the Federal Employees' Retirement System; or
                    ``(B) contributions made under the Federal 
                Employees' Retirement Contribution Temporary Adjustment 
                Act of 1983 by or on behalf of any individual who 
                became subject to the Federal Employees' Retirement 
                System;''
                    (C) by amending paragraph (19) to read as follows:
            ``(19) `accrued liability' means the estimated excess of 
        the present value of all benefits payable from the Fund to 
        employees and Members, and former employees and Members, 
        subject to this subchapter, and their survivors, over the 
        present value of deductions to be withheld from the future 
        basic pay of employees and Members currently subject to this 
        subchapter and of future agency contributions to be made in 
        their behalf;''
                    (D) in paragraph (27) by striking ``and'' at the 
                end;
                    (E) in paragraph (28) by striking the period at the 
                end and inserting a semicolon; and
                    (F) by adding at the end the following paragraphs:
            ``(29) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation; and
            ``(30) `unfunded liability' means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under this subchapter 
                based on the service of current or former employees or 
                Members, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of employees and Members currently subject 
                        to this chapter pursuant to section 8334;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 8334 with respect to employees and 
                        Members currently subject to this subchapter;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (18), as of the date the unfunded 
                        liability is determined; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Office of Personnel 
                        Management in accordance with generally 
                        accepted actuarial practices and principles.'';
            (2) in section 8334--
                    (A) in subsection (a)(1)--
                            (i) by striking the last two sentences;
                            (ii) by redesignating that subsection, as 
                        so amended, as (a)(1)(A); and
                            (iii) by adding at the end the following 
                        new subparagraphs:
    ``(B) Except as provided in subparagraph (E), each employing agency 
having any employees or Members subject to subparagraph (A) shall 
contribute from amounts available for salaries and expenses an amount 
equal to the sum of--
            ``(i) the product of--
                    ``(I) the normal cost percentage, as determined for 
                employees (other than employees covered by clause 
                (ii)), multiplied by
                    ``(II) the aggregate amount of basic pay payable by 
                the agency, for the period involved, to employees 
                (under subclause (I)) who are within such agency; and
            ``(ii) the product of--
                    ``(I) the normal cost percentage, as determined for 
                Members, Congressional employees, law enforcement 
                officers, firefighters, air traffic controllers, 
                bankruptcy judges, Court of Federal Claims judges, 
                United States magistrates, judges of the United States 
                Court of Appeals for the Armed Forces, members of the 
                Capitol Police, nuclear materials couriers, and members 
                of the Supreme Court Police, multiplied by
                    ``(II) the aggregate amount of basic pay payable by 
                the agency for the period involved, to employees and 
                Members (under subclause (I)) who are within such 
                agency.
    ``(C) In determining the normal cost percentage to be applied under 
subparagraph (B), amounts provided for under subparagraph (A) shall be 
taken into account.
    ``(D) Contributions under this paragraph shall be paid--
            ``(i) in the case of law enforcement officers, 
        firefighters, air traffic controllers, bankruptcy judges, Court 
        of Federal Claims judges, United States magistrates, judges of 
        the United States Court of Appeals for the Armed Forces, 
        members of the Supreme Court Police, nuclear materials couriers 
        and other employees, from the appropriations or fund used to 
        pay such law enforcement officers, firefighters, air traffic 
        controllers, bankruptcy judges, Court of Federal Claims judges, 
        United States magistrates, judges of the United States Court of 
        Appeals for the Armed Forces, members of the Supreme Court 
        Police, nuclear materials couriers and other employees, 
        respectively;
            ``(ii) in the case of elected officials, from an 
        appropriation or fund available for payment of other salaries 
        of the same office or establishment; and
            ``(iii) in the case of employees of the legislative branch 
        paid by the Clerk of the House of Representatives, from the 
        contingent fund of the House of Representatives.
    ``(E) In the case of the United States Postal Service, the 
Metropolitan Washington Airports Authority, and the government of the 
District of Columbia, an amount equal to that withheld under 
subparagraph (A) shall be contributed from the appropriation or fund 
used to pay the employee.'';
                    (B) in subsection (k)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A) by striking 
                                ``the first sentence of subsection 
                                (a)(1) of this section'' and inserting 
                                ``subsection (a)(1)(A)''; and
                                    (II) by amending subparagraph (B) 
                                to read as follows:
            ``(B) the amount of the contribution under subsection 
        (a)(1)(B) shall be the amount contributed under such subsection 
        if this subsection had not been enacted.''
                            (ii) in paragraph (2)(C)(iii) by striking 
                        ``the first sentence of subsection (a)(1)'' and 
                        inserting ``subsection (a)(1)(A)''; and
            (3) in section 8348--
                    (A) by repealing subsection (f);
                    (B) by amending subsection (g) to read as follows:
    ``(g)(1)(A) Not later than June 30, 2011, the Office of the Actuary 
shall determine the unfunded liability of the Fund, as of September 30, 
2010, attributable to benefits payable under this chapter and make 
recommendations regarding its liquidation. After considering such 
recommendations, the Office shall establish an amortization schedule, 
including a series of annual installments commencing October 1, 2011, 
which provides for the liquidation of such liability by October 1, 
2049.
    ``(B) The Office shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2010, through the fiscal year ending September 30, 
2044, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2049.
    ``(C) The Office shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2044, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(D) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles, with interest computed at the rate used in the most recent 
valuation of the Civil Service Retirement System.
    ``(2) At the beginning of each fiscal year, beginning on October 1, 
2011, the Office shall notify the Secretary of the Treasury of the 
amount of the first installment under the most recent amortization 
schedule established under paragraph (1). The Secretary shall credit 
that amount to the Fund, as a Government contribution, out of any money 
in the Treasury of the United States not otherwise appropriated.
    ``(3) For the purpose of carrying out paragraph (1) with respect to 
any fiscal year, the Office may--
            ``(A) require the Board of Actuaries of the Civil Service 
        Retirement System to make actuarial determinations and 
        valuations, make recommendations, and maintain records in 
        accordance with section 8347(f); and
            ``(B) use the latest actuarial determinations and 
        valuations made by such Board of Actuaries.'';
                    (C) in subsections (h), (i), and (m) by striking 
                ``unfunded'' and inserting ``accrued'' each place it 
                appears; and
                    (D) by adding at the end the following new 
                subsection:
    ``(n) Under regulations prescribed by the Office, the head of an 
agency may request reconsideration of any amount determined to be 
payable with respect to such agency under section 8334(a)(1)(B)-(D). 
Any such request shall be referred to the Board of Actuaries of the 
Civil Service Retirement System. The Board of Actuaries shall review 
the computations of the Office and may make any adjustment with respect 
to any such amount which the Board determines appropriate. A 
determination by the Board of Actuaries under this subsection shall be 
final.''.
    (b) Government Contributions.--Section 8423 of title 5, United 
States Code, is amended--
            (1) in subsection (a)(2) by striking ``section 8422'' and 
        inserting ``section 8422(a)''; and
            (2) in subsection (b)(2) by striking ``equal annual 
        installments'' and inserting ``annual installments set in 
        accordance with generally accepted actuarial practices and 
        principles''.

SEC. 502. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM.

    (a) Section 101 of the Central Intelligence Agency Retirement Act 
(50 U.S.C. 2001) is amended--
            (1) in paragraph (5), to read as follows:
            ``(5) Unfunded liability.--The term `unfunded liability' 
        means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under title II of this 
                Act based on the service of current or former 
                participants, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of participants currently subject to title 
                        II of this Act pursuant to section 211;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 211 with respect to participants 
                        currently subject to title II of this Act;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (4), as of the date the unfunded 
                        liability is determined; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Director in accordance with 
                        generally accepted actuarial practices and 
                        principles.'';
            (2) in paragraph (6)--
                    (A) by striking ```normal cost''' and inserting 
                ```normal cost percentage'''; and
                    (B) by inserting ``and standards (using dynamic 
                assumptions)'' after ``practice''; and
            (3) by adding at the end the following paragraph:
            ``(10) Dynamic assumptions.--The term `dynamic assumptions' 
        means economic assumptions that are used in determining 
        actuarial costs and liabilities of a retirement system and in 
        anticipating the effects of long-term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.''.
    (b) Section 202 of such Act (50 U.S.C. 2012) is amended by adding 
at the end the following: ``The Fund is appropriated for the payment of 
benefits as provided by this title.''.
    (c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is amended 
to read as follows:
            ``(2) Agency contributions.--The Agency shall contribute to 
        the Fund the amount computed in a manner similar to that used 
        under section 8334(a) of title 5, United States Code, pursuant 
        to determinations of the normal cost percentage of the Central 
        Intelligence Agency Retirement and Disability System by the 
        Director. Contributions under this paragraph shall be paid from 
        amounts available for salaries and expenses.''.
    (d) Section 261 of such Act (50 U.S.C. 2091) is amended--
            (1) by striking subsections (c), (d), and (e); and
            (2) by inserting after subsection (b) the following new 
        subsections:
    ``(c)(1) Not later than June 30, 2011, the Director shall cause to 
be made actuarial valuations of the Fund that determine the unfunded 
liability of the Fund, as of September 30, 2010, attributable to 
benefits payable under this title and make recommendations regarding 
its liquidation. After considering such recommendations, the Director 
shall establish an amortization schedule, including a series of annual 
installments commencing October 1, 2011, which provides for the 
liquidation of such liability by October 1, 2049.
    ``(2) The Director shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2010, through the fiscal year ending September 30, 
2044, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2049.
    ``(3) The Director shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2044, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(4) Amortization schedules established under this subsection 
shall be set in accordance with generally accepted actuarial practices 
and principles, with interest computed at the rate used in the most 
recent valuation of the Civil Service Retirement and Disability System.
    ``(d) At the beginning of each fiscal year, beginning on October 1, 
2011, the Director shall notify the Secretary of the Treasury of the 
amount of the first installment under the most recent amortization 
schedule established under subsection (c). The Secretary shall credit 
that amount to the Fund, as a Government contribution, out of any money 
in the Treasury of the United States not otherwise appropriated. For 
the purposes of section 504 of the National Security Act of 1947, this 
amount shall be considered authorized.''.
    (e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is amended by 
adding at the end the following new section:

``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES DESIGNATED 
              UNDER SECTION 302.

    ``(a) In addition to other government contributions required by 
law, the Agency shall contribute to the Civil Service Retirement and 
Disability Fund (hereinafter in this section referred to as the `Fund') 
amounts calculated in accordance with section 8423 of title 5, United 
States Code, based on the projected number of employees to be 
designated pursuant to section 302 of this Act. In addition, the 
Agency, in a manner similar to that established for employee 
contributions to the Fund by section 8422 of title 5, United States 
Code, will contribute an amount equal to the difference between that 
contributed by the number of employees projected to be designated under 
section 302 and the amounts that are actually being deducted and 
contributed from the basic pay of an equal number of employees pursuant 
to section 8422. The amounts of the Agency's contributions under this 
subsection shall be determined by the Director of the Office of 
Personnel Management, in consultation with the Director, and shall be 
paid by the Agency from funds available for salaries and expenses. 
Agency employees designated pursuant to section 302 of this Act shall, 
commencing with such designation, have deducted from their basic pay 
the full amount required by section 8422 of title 5, United States 
Code, and such deductions shall be contributed to the Fund.
    ``(b)(1) The Director of the Office of Personnel Management, in 
consultation with the Director, shall determine the total amount of 
unpaid contributions (government and employee contributions) and 
interest attributable to the number of individuals employed with the 
Agency on September 30, 2011, who are projected to be designated under 
section 302 of this Act, but are not yet designated under that section 
as of that date. The amount shall be referred to as the section 302 
unfunded liability.
    ``(2) Not later than June 30, 2012, the Director of the Office of 
Personnel Management, in consultation with the Director, shall 
establish an amortization schedule, setting forth a series of annual 
installments commencing September 30, 2012, which provides for the 
liquidation of the section 302 unfunded liability by September 30, 
2019.
    ``(3) At the end of each fiscal year, beginning on September 30, 
2012, the Director shall notify the Secretary of the Treasury of the 
amount of the annual installment under the amortization schedule 
established under paragraph (2) of this subsection. Before closing the 
accounts for that fiscal year, the Secretary shall credit that amount 
to the Fund, out of any money in the Treasury of the United States not 
otherwise appropriated.
    ``(c) Amounts paid by the Agency pursuant to this section are 
deemed to be specifically authorized by the Congress for the purposes 
of section 504 of the National Security Act of 1947.''.
    (2) The table of contents of such Act is amended by inserting after 
the item relating to section 307 the following new item:

``Sec. 308. Full funding of retiree costs for employees designated 
                            under section 302.''.

SEC. 503. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.

    (a) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 804 (22 U.S.C. 4044)--
            (1) by amending paragraph (5) to read as follows:
            ``(5) `normal cost percentage' means the entry-age normal 
        cost computed in accordance with generally accepted actuarial 
        practice and standards (using dynamic assumptions) and 
        expressed as a level percentage of aggregate basic pay.'';
            (2) by amending paragraph (14) to read as follows:
            ``(14) `unfunded liability' means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under this part based on 
                the service of current or former participants, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of participants currently subject to this 
                        part pursuant to section 805;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 805 with respect to participants 
                        currently subject to this part;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (7), as of the date the unfunded 
                        liability is determined, excluding any amount 
                        attributable to the Foreign Service Pension 
                        System, or contributions made under the Federal 
                        Employees' Retirement Contribution Temporary 
                        Adjustment Act of 1983 by or on behalf of any 
                        individual who became subject to the Foreign 
                        Service Pension System; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Secretary of the Treasury in 
                        accordance with generally accepted actuarial 
                        practices and principles.''
            (3)(A) by striking the period at the end of paragraph (15) 
        and inserting ``; and''; and
            (B) by adding at the end the following new paragraph:
            ``(16) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.''.
    (b) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 852 (22 U.S.C. 4071a)--
            (1) in paragraph (4)--
                    (A) by striking ``normal cost'' and inserting 
                ``normal cost percentage''; and
                    (B) by striking ``by the Secretary of State'';
            (2) in paragraph (7)--
                    (A) by striking ``supplemental'' and inserting 
                ``unfunded'';
                    (B) in subparagraph (B)(i) by striking ``(I)'' and 
                ``and (II) contributions for past civilian and military 
                service''; and
                    (C) in subparagraph (B)(ii) by inserting before the 
                semicolon ``with respect to participants currently 
                subject to this part''; and
            (3)(A) at the end of paragraph (8) by striking ``and'';
            (B) at the end of paragraph (9) by striking the period and 
        inserting ``; and''; and
            (C) by adding at the end the following new paragraph:
            ``(10) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.''.
    (c) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 805(a)(1) (22 U.S.C. 4045(a))--
            (1) by striking the second sentence;
            (2) (by redesignating that subsection, as so amended, as 
        (a)(1)(A);
            (3) by redesignating the last sentence of that subsection, 
        as so amended as (a)(1)(C);
            (4) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Each employing agency having participants 
                shall contribute to the Fund the amount computed in a 
                manner similar to that used under section 8334(a) of 
                title 5, United States Code, pursuant to determinations 
                of the normal cost percentage of the Foreign Service 
                Retirement and Disability System. Contributions under 
                this subparagraph shall be paid from the appropriations 
                or fund used for payment of the salary of the 
                participant.'';
            (5) in subsection (a)(2)(A) by striking ``An equal amount 
        shall be contributed by the Department'' and inserting in its 
        place ``Each employing agency having participants shall 
        contribute to the Fund the amount computed in a manner similar 
        to that used under section 8334(a) of title 5, United States 
        Code, pursuant to determinations of the normal cost percentage 
        of the Foreign Service Retirement and Disability System''; and
            (6) in subsection (a)(2)(B) by striking ``An equal amount 
        shall be contributed by the Department'' and inserting in its 
        place ``Each employing agency having participants shall 
        contribute to the Fund from amounts available for salaries and 
        expenses the amount computed in a manner similar to that used 
        under section 8334(a) of title 5, United States Code, pursuant 
        to determinations of the normal cost percentage of the Foreign 
        Service Retirement and Disability System''.
    (d) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended by repealing sections 821 and 822 (22 U.S.C. 4061 and 
4062) and by adding the following new section:
``Sec. 821. Unfunded liability
    ``(a)(1) Not later than June 30, 2011, the Secretary of State shall 
cause to be made actuarial valuations of the Fund that determine the 
unfunded liability of the Fund, as of September 30, 2010, attributable 
to benefits payable under this subchapter and make recommendations 
regarding its liquidation. After considering such recommendations, the 
Secretary of State shall establish an amortization schedule, including 
a series of annual installments commencing October 1, 2010, which 
provides for the liquidation of such liability by October 1, 2049.
    ``(2) The Secretary of State shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year, for each 
fiscal year beginning after September 30, 2010, through the fiscal year 
ending September 30, 2044, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability by October 1, 2049.
    ``(3) The Secretary of State shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year for each 
fiscal year beginning after September 30, 2044, and shall establish a 
new amortization schedule, including a series of annual installments 
commencing on October 1 of the second subsequent fiscal year, which 
provides for the liquidation of such liability over five years.
    ``(4) Amortization schedules established under this subsection 
shall be set in accordance with generally accepted actuarial practices 
and principles, with interest computed at the rate used in the most 
recent valuation of the Foreign Service Retirement and Disability 
System.
    ``(b) At the beginning of each fiscal year, beginning on October 1, 
2011, the Secretary of State shall notify the Secretary of the Treasury 
of the amount of the first installment under the most recent 
amortization schedule established under paragraph (1). The Secretary of 
the Treasury shall credit that amount to the Fund, as a Government 
contribution, out of any money in the Treasury of the United States not 
otherwise appropriated.''.
    (e) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by 
striking ``equal annual installments'' and inserting ``annual 
installments set in accordance with generally accepted actuarial 
practices and principles''.
    (f) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 859 (22 U.S.C. 4071h) by adding 
``percentage'' after ``normal cost''.
    (g) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 802 (22 U.S.C. 4042) by adding at the end 
the following: ``The Fund is appropriated for the payment of benefits 
as provided by this subchapter.''.
    (h) Chapter 8 of title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 818 (22 U.S.C. 4058) by striking ``System'' 
and inserting ``Systems under this subchapter''.

SEC. 504. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM.

    (a) In General.--Title II of the Public Health Service Act (42 
U.S.C. 202 et seq.) is amended by adding at the end the following new 
part:

  ``Part C--Public Health Service Commissioned Corps Retirement System

                  ``establishment and purpose of fund

    ``Sec. 251. There is established on the books of the Treasury a 
fund to be known as the Public Health Service Commissioned Corps 
Retirement Fund (hereinafter in this part referred to as the `Fund'), 
which shall be administered by the Secretary. The Fund shall be used 
for the accumulation of funds in order to finance on an actuarially 
sound basis liabilities of the Department of Health and Human Services 
for benefits payable on account of retirement, disability, or death to 
commissioned officers of the Public Health Service and to their 
survivors pursuant to part A of this title.

                          ``assets of the fund

    ``Sec. 252. There shall be deposited into the Fund the following, 
which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 255.
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        504(c) of the Spending, Deficit, and Debt Control Act of 2009.

                        ``payment from the fund

    ``Sec. 253. There shall be paid from the Fund benefits payable on 
account of retirement, disability, or death to commissioned officers of 
the Public Health Service and to their survivors pursuant to part A of 
this title.

              ``determination of contributions to the fund

    ``Sec. 254.  (a)(1) Not later than June 30, 2011, the Secretary 
shall determine the unfunded liability of the Fund attributable to 
service performed as of September 30, 2010, which is `active service' 
for the purpose of section 212. The Secretary shall establish an 
amortization schedule, including a series of annual installments 
commencing October 1, 2011, which provides for the liquidation of such 
liability by October 1, 2049.
    ``(2) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2010, through the fiscal year ending September 30, 
2044, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2049.
    ``(3) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2044, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(b) The Secretary shall determine each fiscal year, in sufficient 
time for inclusion in the budget request for the following fiscal year, 
the total amount of Department of Health and Human Services 
contributions to be made to the Fund during the fiscal year under 
section 255(a). That amount shall be the sum of--
            ``(1) the product of--
                    ``(A) the current estimate of the value of the 
                single level percentage of basic pay to be determined 
                under subsection (c)(1) at the time of the most recent 
                actuarial valuation under subsection (c); and
                    ``(B) the total amount of basic pay expected to be 
                paid during that fiscal year to commissioned officers 
                of the Public Health Service on active duty (other than 
                active duty for training); and
            ``(2) the product of--
                    ``(A) the current estimate of the value of the 
                single level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) to be determined under subsection 
                (c)(2) at the time of the most recent actuarial 
                valuation under subsection (c); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) expected to be paid during the 
                fiscal year to commissioned officers of the Reserve 
                Corps of the Public Health Service (other than officers 
                on full-time duty other than for training) who are not 
                otherwise described in subparagraph (A).
    ``(c) Not less often than every four years thereafter (or by the 
fiscal year end prior to the effective date of any statutory change 
affecting benefits payable on account of retirement, disability, or 
death to commissioned officers or their survivors), the Secretary shall 
carry out an actuarial valuation of benefits payable on account of 
retirement, disability, or death to commissioned officers of the Public 
Health Service and to their survivors pursuant to part A of this title. 
Each such actuarial valuation shall be signed by an enrolled Actuary 
and shall include--
            ``(1) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay for 
        commissioned officers of the Public Health Service on active 
        duty (other than active duty for training); and
            ``(2) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay and of 
        compensation (paid pursuant to section 206 of title 37, United 
        States Code) of commissioned officers of the Reserve Corps of 
        the Public Health Service (other than officers on full time 
        duty other than for training) who are not otherwise described 
        in paragraph (1).
    ``(d) All determinations under this section shall be in accordance 
with generally accepted actuarial principles and practices and, where 
appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(e) The Secretary shall provide for the keeping of such records 
as are necessary for determining the actuarial status of the Fund.

                        ``payments into the fund

    ``Sec. 255.  (a) From amounts available to the Department of Health 
and Human Services for salaries and expenses, the Secretary shall pay 
into the Fund at the end of each month the amount that is the sum of--
            ``(1) the product of--
                    ``(A) the level percentage of basic pay determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under sections 254(C)(1) 
                (except that any statutory change affecting benefits 
                payable on account of retirement, disability, or death 
                to commissioned officers or their survivors that is 
                effective after the date of that valuation and on or 
                before the first day of the current fiscal year shall 
                be used in such determination); and
                    ``(B) the total amount of basic pay accrued for 
                that month by commissioned officers of the Public 
                Health Service on active duty (other than active duty 
                for training); and
            ``(2) the product of--
                    ``(A) the level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) determined using all the methods 
                and assumptions approved for the most recent (as of the 
                first day of the current fiscal year) actuarial 
                valuation under section 254(C)(2) (except that any 
                statutory change affecting benefits payable on account 
                of retirement, disability, or death to commissioned 
                officers or their survivors that is effective after the 
                date of that valuation and on or before the first day 
                of the current fiscal year shall be used in such 
                determinations); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) accrued for that month by 
                commissioned officers of the Reserve Corps of the 
                Public Health Service (other than officers on full-time 
                duty other than for training).
    ``(b) At the beginning of each fiscal year, beginning on October 1, 
2011, the Secretary shall certify to the Secretary of the Treasury the 
amount of the first installment under the most recent amortization 
schedule established under section 254(a). The Secretary of the 
Treasury shall pay into the Fund from the General Fund of the Treasury 
the amount so certified. Such payment shall be the contribution to the 
Fund for that fiscal year.

                    ``investments of assets of fund

    ``Sec. 256. The Secretary may request the Secretary of the Treasury 
to invest such portion of the Fund as is not, in the judgment of the 
Secretary, required to meet the current needs of the Fund. Such 
investments shall be made by the Secretary of the Treasury in public 
debt securities with maturities suitable to the needs of the Fund, as 
determined by the Secretary, and bearing interest at rates determined 
by the Secretary of the Treasury, taking into consideration current 
market yields on outstanding marketable obligations of the United 
States of comparable maturities. The income on such investments shall 
be credited to and form a part of the Fund.

                    ``implementation year exceptions

    ``Sec. 257.  (a) To avoid funding shortfalls in the first year 
should formal actuarial determinations not be available in time for 
budget preparation, the amounts used in the first year in sections 
255(a)(1)(A) and 255(a)(2)(A) shall be set equal to those estimates in 
sections 254(b)(1)(A) and 254(b)(2)(A) if final determinations are not 
available. The original unfunded liability as defined in section 254(a) 
shall include an adjustment to correct for this difference between the 
formal actuarial determinations and the estimates in sections 
254(b)(1)(A) and 254(b)(2)(A).''.
    (b) Conforming Amendments.--Section 214 of the Public Health 
Service Act (42 U.S.C. 215) is amended by adding at the end the 
following new subsection:
    ``(e) The Secretary shall condition any detail under subsection 
(a), (b), or (c) upon the agreement of the executive department, State, 
subdivision, Committee of the Congress, or institution concerned to pay 
to the Department of Health and Human Services, in advance or by way of 
reimbursement, for the full cost of the detail including that portion 
of the contributions under section 255(a) that is attributable to the 
detailed personnel.''.
    (c) Transfer of Appropriations.--There shall be transferred on 
October 1, 2012, into the fund established under section 251 of the 
Public Health Service Act, as added by subsection (a), any obligated or 
unobligated balances of appropriations made to the Department of Health 
and Human Services that are currently available for benefits payable on 
account of retirement, disability, or death to commissioned officers of 
the Public Health Service and to their survivors pursuant to part A of 
title II of the Public Health Service Act, and amounts so transferred 
shall be part of the assets of the Fund.

SEC. 505. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION COMMISSIONED 
              OFFICER CORPS RETIREMENT SYSTEM.

    (a) In General.--The National Oceanic and Atmospheric 
Administration Commissioned Officer Corps Act of 2002 (title II of 
Public Law 107-372) is amended by inserting after section 246 (33 
U.S.C. 3046) the following new section:

``SEC. 246A NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION 
              COMMISSIONED OFFICER CORPS RETIREMENT SYSTEM.

    ``(a) Establishment and Purpose of NOAA Commissioned Officer Corps 
Retirement Fund.--
    ``(1) There is established on the books of the Treasury a fund to 
be known as the National Oceanic and Atmospheric Administration 
Commissioned Officer Corps Retirement Fund (hereinafter in this section 
referred to as the `Fund'), which shall be administered by the 
Secretary. The Fund shall be used for the accumulation of funds in 
order to finance on an actuarially sound basis liabilities of the 
Department of Commerce under military retirement and survivor benefit 
programs for the commissioned officers corps.
    ``(2) The term `military retirement and survivor benefit program' 
means--
            ``(A) the provisions of this title and title 10, United 
        States Code, creating entitlement to, or determining, the 
        amount of retired pay;
            ``(B) the programs under the jurisdiction of the Department 
        of Defense providing annuities for survivors and members and 
        former members of the Armed Forces, including chapter 73 of 
        title 10, section 4 of Public Law 92-425, and section 5 of 
        Public Law 96-202, as made applicable to the commissioned 
        officer corps by section 261.
    ``(b) Assets of the Fund.--There shall be deposited into the Fund 
the following, which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under subsection (e).
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        405(b) of the Spending, Deficit, and Debt Control Act of 2009.
    ``(c) Payments From the Fund.--There shall be paid from the Fund 
benefits payable on account of military retirement and survivor benefit 
programs to commissioned officers of the commissioned officer corps and 
their survivors.
    ``(d) Determination of Contributions to the Fund.--(1)(A) Not later 
than June 30, 2010, the Secretary shall determine the unfunded 
liability of the Fund attributable to service performed as of September 
30, 2010, which is `active service' for the purpose of this title. The 
Secretary shall establish an amortization schedule, including a series 
of annual installments commencing October 1, 2011, which provides for 
the liquidation of such liability by October 1, 2049.
    ``(B) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2010, through the fiscal year ending September 30, 
2044, and shall establish a new amortization schedule, including a 
series of annual installments commencing on September 30 of the 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2049.
    ``(C) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2044, and shall establish a new authorization 
schedule, including series of annual installments commencing on October 
1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(2) The Secretary shall determine each fiscal year, in sufficient 
time for inclusion in the budget request for the following fiscal year, 
the total amount of Department of Commerce contributions to be made to 
the Fund during that fiscal year under (e). The amount shall be the 
product of--
            ``(A) the current estimate of the value of the single level 
        percentage of basic pay to be determined under subsection (e) 
        at the time of the most recent actuarial valuation under 
        paragraph (3); and
            ``(B) the total amount of basic pay expected to be paid 
        during that fiscal year to commissioned officers of NOAA on 
        active duty.
    ``(3) Not less often then every four years (or by the fiscal year 
end before the effective date of any statutory change affecting 
benefits payable on account of retirement, disability, or death to 
commissioned officers or their survivors), the Secretary shall carry 
out an actuarial valuation of benefits payable on account of military 
retirement and survivor benefit programs to commissioned officers of 
the Administration and to their survivors. Each such actuarial 
valuation shall be signed by an enrolled Actuary and shall include a 
determination (using the aggregate entry-age normal cost method) of a 
single level percentage of basic pay for commissioned officers on 
active duty.
    ``(4) All determinations under this section shall be in accordance 
with generally accepted actuarial principles and practices, and, where 
appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(5) The Secretary shall provide for the keeping of such records 
as are necessary for determining the actuarial status of the Fund.
    ``(e) Payments Into the Fund.--(1) From amounts appropriated to the 
National Oceanic Atmospheric Administration for salaries and expenses, 
the Secretary shall pay into the Fund at the end of each month the 
amount that is the product of--
            ``(A) the level percentage of basic pay determined using 
        all the methods and assumptions approved for the most recent 
        (as of the first day of the current fiscal year) actuarial 
        valuation under subsection (d) (except that any statutory 
        change affecting benefits payable on account of military 
        retirement and survivor benefit programs to commissioned 
        officers of the Administration and to their survivors that is 
        effective date after the date of that valuation and on or 
        before the first day of the current fiscal year shall be used 
        in such determination); and
            ``(B) the total amount of basic pay accrued for that month 
        by commissioned officers on active duty.
    ``(2)(A) At the beginning of each fiscal year, the Secretary shall 
determine the sum of--
            ``(i) the amount of the payment for that year under the 
        amortization of the original unfunded liability of the Fund;
            ``(ii) the amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary for the amortization of any cumulative actuarial 
        gain or loss to the Fund, resulting from changes in benefits; 
        and
            ``(iii) the amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary for the amortization or any cumulative actuarial 
        gain or loss to the Fund resulting from changes in actuarial 
        assumptions and from experience different from the assumed 
        since the last valuation.
The Secretary shall promptly certify the amount of the sum to the 
Secretary of the Treasury.
    ``(B) Upon receiving the certification pursuant to paragraph (1), 
the Secretary of the Treasury shall promptly pay into the Fund from the 
General Fund of the Treasury the amount so certified. Such payment 
shall be the contribution to the Fund for that fiscal year.
    ``(f) Investment of Assets of the Fund.--The Secretary may request 
the Secretary of the Treasury to invest such portion of the Fund as is 
not, in the judgment of the Secretary, required to meet the current 
needs of the Fund. Such investments shall be made by the Secretary of 
the Treasury in public debt securities with maturities suitable to the 
needs of the Fund, as determined by the Secretary, and bearing interest 
at rates determined by the Secretary of the Treasury, taking into 
consideration current market yields on outstanding marketable 
obligations of the United States of comparable maturities. The income 
of such investments shall be credited to and form a part of the Fund.
    ``(g) Implementation Year Exceptions.--(1) To avoid funding 
shortfalls in the first year should formal actuarial determinations not 
be available in time for budget preparation, the amounts used in the 
first year in subsection (e)(1)(A) shall be set equal to the estimate 
in subsection (d)(2)(A) if final determinations are not available. The 
original unfunded liability as determined in subsection (d)(1) shall 
include an adjustment to correct for this difference between the formal 
actuarial determinations and the estimates in subsection (d)(2)(A).''.
    (b) Transfer of Appropriations.--There shall be transferred on 
October 1, 2012, into the fund established under section 246A(a) of the 
National Oceanic and Atmospheric Administration Commissioned Officer 
Corps Act of 2002 (title II of Public Law 107-372, as added by 
subsection (a)), any obligated and unobligated balance of 
appropriations made to the Department of Commerce that are available as 
of the date of the enactment of this Act for benefits payable on 
account of military retirement and survivor benefit programs to 
commissioned officers of the NOAA Commissioned Officer Corps and to 
their survivors, and amounts so transferred shall be part of the assets 
of the Fund, effective October 1, 2012.
    (c) Effective Date.--Subsection (c) (relating to payments from the 
Fund) and (e) (relating to payments into the Fund) of section 246A of 
the National Oceanic and Atmospheric Administration Commissioned 
Officer Corps Act of 2002 (title II of Public Law 107-372, as added by 
subsection (a)), shall take effect on October 1, 2010.

SEC. 506. COAST GUARD MILITARY RETIREMENT SYSTEM.

    (a) Accrual Funding for Coast Guard Retirement.--
            (1) In general.--Chapter 11 of title 14, United States 
        Code, is amended by adding at the end the following new 
        subchapter:

          ``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND

``Sec. 441. Establishment and purpose of Fund; definitions
    ``(a) Establishment of Fund; Purpose.--There is established on the 
books of the Treasury a fund to be known as the Coast Guard Military 
Retirement Fund (hereinafter in this subchapter referred to as the 
`Fund'), which shall be administered by the Secretary. The Fund shall 
be used for the accumulations of funds in order to finance on an 
actuarially sound basis liabilities of the Coast Guard under military 
retirement and survivor benefit programs.
    ``(b) Military Retirement and Survivor Benefit Programs Defined.--
In this subchapter, the term `military retirement and survivor benefit 
programs' means--
            ``(1) the provisions of this title and title 10 creating 
        entitlement to, or determining the amount of, retired pay;
            ``(2) the programs providing annuities for survivors of 
        members and former members of the armed forces, including 
        chapter 73 of title 10, section 4 of Public Law 92-425, and 
        section 5 of Public Law 96-402; and
            ``(3) the authority provided in section 1048(h) of title 
        10.
    ``(c) Secretary Defined.--In this subchapter, the term `Secretary' 
means the Secretary of Homeland Security when the Coast Guard is not 
operating as a service in the Navy and the Secretary of Defense when 
the Coast Guard is operating as a service in the Navy.
``Sec. 442. Assets of the Fund
    ``There shall be deposited into the Fund the following, which shall 
constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 445 of this 
        title.
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        406(d) of the Spending, Deficit, and Debt Control Act of 2009.
``Sec. 443. Payments from the Fund
    ``(a) In General.--There shall be paid from the Fund the following:
            ``(1) Retired pay payable to persons on the retired list of 
        the Coast Guard.
            ``(2) Retired pay payable under chapter 1223 of title 10 to 
        former members of the Coast Guard and the former United States 
        Lighthouse Service.
            ``(3) Benefits payable under programs that provide 
        annuities for survivors of members and former members of the 
        armed forces, including chapter 73 of title 10, section 4 of 
        Public Law 92-425, and section 5 of Public Law 96-402.
            ``(4) Amounts payable under section 1048(h) of title 10.
    ``(b) Availability of Assets of the Fund.--The assets of the Fund 
are hereby made available for payments under subsection (a).
``Sec. 444. Determination of contributions to the Fund
    ``(a) Initial Unfunded Liability.--(1) Not later than June 30, 
2011, the Secretary shall determine the unfunded liability of the Fund 
attributable to service performed as of September 30, 2010, which is 
`active service' for the purposes of section 212. The Secretary shall 
establish an amortization schedule, including a series of annual 
installments commencing October 1, 2011, which provides for the 
liquidation of such liability by October 1, 2049.
    ``(2) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each beginning after 
September 30, 2010, through the fiscal year ending September 30, 2044, 
and shall establish a new amortization schedule, including a series of 
annual installments commencing on October 1 of the second subsequent 
fiscal year, which provides for the liquidation of such liability by 
October 1, 2049.
    ``(3) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2044, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(b) Annual Contributions for Current Services.--(1) The Secretary 
shall determine each fiscal year, in sufficient time for inclusion in 
the budget request for the following fiscal year, the total amount of 
Department of Homeland Security, or Department of Defense, 
contributions to be made to the Fund during that fiscal year under 
section 445(a) of this title. That amount shall be the sum of the 
following:
            ``(A) The product of--
                    ``(i) the current estimate of the value of the 
                single level percentage of basic pay to be determined 
                under subsection (c)(1)(A) at the time of the most 
                recent actuarial valuation under subsection (c); and
                    ``(ii) the total amount of basic pay expected to be 
                paid during that fiscal year to members of the Coast 
                Guard on active duty (other than active duty for 
                training).
            ``(B) The product of--
                    ``(i) the current estimate of the value of the 
                single level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37) 
                to be determined under subsection (c)(1)(B) at the time 
                of the most recent actuarial valuation under subsection 
                (c); and
                    ``(ii) the total amount of basic pay and 
                compensation (paid pursuant to section 206 of title 37) 
                expected to be paid during that fiscal year to members 
                of the Coast Guard Ready Reserve (other than members on 
                full-time Reserve duty other than for training) who are 
                not otherwise described in subparagraph (A)(ii).
    ``(2) The amount determined under paragraph (1) for any fiscal year 
is the amount needed to be appropriated to the Department of Homeland 
Security for that fiscal year for payments to be made to the Fund 
during that year under section 445(a) of this title. The President 
shall include not less than the full amount so determined in the budget 
transmitted to Congress for that fiscal year under section 1105 of 
title 31. The President may comment and make recommendations concerning 
any such amount.
    ``(c) Periodic Actuarial Valuations.--(1) Not less often than every 
four years (or before the effective date of any statutory change 
affecting benefits payable on account of retirement, disability, or 
death to members of the Coast Guard or their survivors), the Secretary 
shall carry out an actuarial valuation of the Coast Guard military 
retirement and survivor benefit programs. Each actuarial valuation of 
such programs shall be signed by an enrolled actuary and shall 
include--
            ``(A) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay for 
        members of the Coast Guard on active duty (other than active 
        duty for training); and
            ``(B) a determination (using the aggregate entry-age normal 
        cost method) of single level percentage of basic pay and of 
        compensation (paid pursuant to section 206 of title 37) for 
        members of the Ready Reserve of the Coast Guard (other than 
        members on full-time Reserve duty other than for training) who 
        are not otherwise described in subparagraph (A).
    ``(2) Such single level percentages shall be used for the purposes 
of subsection (b) and section 445(a) of this title.
    ``(d) Use of Generally Accepted Actuarial Principles and 
Practices.--All determinations under this section shall be in 
accordance with generally accepted actuarial principles and practices 
and, where appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(e) Records.--The Secretary shall provide for the keeping of such 
records as are necessary for determining the actuarial status of the 
Fund.
``Sec. 445. Payments into the Fund
    ``(a) Monthly Accrual Charge for Current Services.--From amounts 
appropriated to the Coast Guard for salaries and expenses, the 
Secretary shall pay into the Fund at the end of each month as the 
Department of Homeland Security, or Department of Defense, contribution 
to the Fund for that month the amount that is the sum of the following:
            ``(1) The product of--
                    ``(A) the level percentage of basic pay determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under section 444(c)(1)(A) of 
                this title (except that any statutory change in the 
                military retirement and survivor benefit systems that 
                is effective after the date of that valuation and on or 
                before the first day of the current fiscal year shall 
                be used in such determination); and
                    ``(B) the total amount of basic pay accrued for 
                that month by members of the Coast Guard on active duty 
                (other than active duty for training).
            ``(2) The product of--
                    ``(A) the level percentage of basic pay and 
                compensation (accrued pursuant to section 206 of title 
                37) determined using all the methods and assumptions 
                approved for the most recent (as of the first day of 
                the current fiscal year) actuarial valuation under 
                section 444(c)(1)(B) of this title (except that any 
                statutory change in the military retirement and 
                survivor benefit systems that is effective after the 
                date of that valuation and on or before the first day 
                of the current fiscal year shall be used in such 
                determination); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37) 
                accrued for that month by members of the Ready Reserve 
                (other than members of full-time Reserve duty other 
                than for training) who are not otherwise described in 
                paragraph (1)(B).
    ``(b) Annual Payment for Unfunded Liabilities.--(1) At the 
beginning of each fiscal year, beginning on October 1, 2011, the 
Secretary shall certify to the Secretary of the Treasury the amount of 
the first installment under the most recent amortization schedule 
established under section 254(a). The Secretary of the Treasury shall 
promptly pay into the Fund from the General Fund of the Treasury the 
amount so certified. Such payment shall be the contribution to the Fund 
for that fiscal year.
``Sec. 446. Investment of assets of the Fund
    ``The Secretary may request the Secretary of the Treasury to invest 
such portion of the Fund as is not, in the judgment of the Secretary, 
required to meet the current needs of the Fund. Such investments shall 
be made by the Secretary of the Treasury in public debt securities with 
maturities suitable to the needs of the Fund, as determined by the 
Secretary, and bearing interest at rates determined by the Secretary of 
the Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities. The income on such investments shall be credited to and 
form a part of the Fund.''.
            (2) Technical amendments.--Such chapter is further 
        amended--
                    (A) by amending the center heading after the table 
                of sections to read as follows:

                      ``SUBCHAPTER I--OFFICERS'';

                    (B) by amending the center heading after section 
                336 to read as follows:

                  ``SUBCHAPTER II--ENLISTED MEMBERS'';

                    (C) by amending the center heading after section 
                373 to read as follows:

                ``SUBCHAPTER III--GENERAL PROVISIONS'';

            and
                    (D) by amending the center heading after section 
                425 to read as follows:

                 ``SUBCHAPTER IV--SPECIAL PROVISIONS''.

            (3) Clerical amendments.--The table of sections at the 
        beginning of such chapter is amended--
                    (A) by striking ``OFFICERS'' at the beginning of 
                the table and inserting ``SUBCHAPTER I--OFFICERS'';
                    (B) by striking ``ENLISTED MEMBERS'' after the item 
                relating to section 336 and inserting ``SUBCHAPTER II--
                ENLISTED MEMBERS'';
                    (C) by striking ``GENERAL PROVISIONS'' after the 
                item relating to section 373 and inserting ``SUBCHAPTER 
                III--GENERAL PROVISIONS'';
                    (D) by striking ``SPECIAL PROVISIONS'' after the 
                item relating to section 425 and inserting ``SUBCHAPTER 
                IV--SPECIAL PROVISIONS''; and
                    (E) by adding at the end the following:

          ``subchapter v--coast guard military retirement fund

``441. Establishment and purpose of Fund; definitions.
``442. Assets of the Fund.
``443. Payments from the Fund.
``444. Determination of contributions to the Fund.
``445. Payments into the Fund.
``446. Investment of assets of the Fund.''.
    (b) Implementation Year Exceptions.--To avoid funding shortfalls in 
the first year of implementation of subchapter V of chapter 11 of title 
14, United States Code, as added by subsection (a), if formal actuarial 
determinations are not available in time for budget preparation, the 
amounts used in the first year under sections 445(a)(1)(A) and 
445(a)(2)(A) of such title shall be set equal to those estimates in 
sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively, of such 
title if final determinations are not available. The original unfunded 
liability, as defined in section 444(a) of such title, shall include an 
adjustment to correct for this difference between the formal actuarial 
determinations and the estimates in sections 444(b)(1)(A)(i) and 
444(b)(1)(B)(i) of such title.
    (c) Transfer of Existing Balances.--
            (1) Transfer.--There shall be transferred into the Fund on 
        October 1, 2011, any obligated and unobligated balances of 
        appropriations made to the Department of Homeland Security that 
        are currently available for retired pay, and amounts so 
        transferred shall be part of the assets of the Fund.
            (2) Fund defined.--For purposes of paragraph (1), the term 
        ``Fund'' means the Coast Guard Military Retirement Fund 
        established under section 441 of title 14, United States Code, 
        as added by subsection (a).
    (d) Effective Date.--Sections 443 (relating to payments from the 
Fund) and 445 (relating to payments into the Fund) of title 14, United 
States Code, as added by subsection (a), shall take effect on October 
1, 2011.

 Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs 
                         for Federal Employees

SEC. 511. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.

    (a) Section 8906 of title 5, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (c)(1) 
        and by adding at the end the following new paragraphs:
    ``(2) In addition to Government contributions required by 
subsection (b) and paragraph (1), each employing agency shall 
contribute amounts as determined by the Office to be necessary to 
prefund the accruing actuarial cost of post-retirement health benefits 
for each of the agency's current employees who are eligible for 
Government contributions under this section. Amounts under this 
paragraph shall be paid by the employing agency separate from other 
contributions under this section, from the appropriations or fund used 
for payment of the salary of the employee, on a schedule to be 
determined by the Office.
    ``(3) Paragraph (2) shall not apply to the United States Postal 
Service or the Government of the District of Columbia.''
            (2) by amending subsection (g)(1) to read as follows:
    ``(g)(1) Except as provided in paragraphs (2) and (3), all 
Government contributions authorized by this section for health benefits 
for an annuitant shall be paid from the Employees Health Benefits Fund 
to the extent that funds are available in accordance with section 
8909(h)(6) and, if necessary, from annual appropriations which are 
authorized to be made for that purpose and which may be made available 
until expended.''.
    (b) Section 8909 of title 5, United States Code, is amended by 
adding at the end the following new subsection:
    ``(h)(1) Not later than June 30, 2012, the Office shall determine 
the existing liability of the Fund for post-retirement health benefits, 
excluding the liability of the United States Postal Service for service 
under section 8906(g)(2), under this chapter as of September 30, 2012. 
The Office shall establish an amortization schedule, including a series 
of annual installments commencing September 30, 2012, which provides 
for the liquidation of such liability by September 30, 2048.
    ``(2) At the close of each fiscal year, for fiscal years beginning 
after September 30, 2011, the Office shall determine the supplemental 
liability of the Fund for post-retirement health benefits, excluding 
the liability attributable to the United States Postal Service for 
service subject to section 8906(g)(2), and shall establish an 
amortization schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for liquidation of such supplemental liability over 30 years.
    ``(3) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles.
    ``(4) At the end of each fiscal year on and after September 30, 
2012, the Office shall notify the Secretary of the Treasury of the 
amounts of the next installments under the most recent amortization 
schedules established under paragraphs (1) and (2). Before closing the 
accounts for the fiscal year, the Secretary shall credit the sum of 
these amounts (including in that sum any negative amount for the 
amortization of the supplemental liability) to the Fund, as a 
Government contribution, out of any money in the Treasury of the United 
States not otherwise appropriated.
    ``(5) For the purpose of carrying out paragraphs (1) and (2), the 
Office shall perform or arrange for actuarial determinations and 
valuations and shall prescribe retention of such records as it 
considers necessary for making periodic actuarial valuations of the 
Fund.
    ``(6) Notwithstanding subsection (b), the amounts deposited into 
the Fund pursuant to this subsection and section 8906(C)(2) to prefund 
post-retirement health benefits costs shall be segregated within the 
Fund so that such amounts, as well as earnings and proceeds under 
subsection (c) attributable to them, may be used exclusively for the 
purpose of paying Government contributions for post-retirement health 
benefits costs. When such amounts are used in combination with amounts 
withheld from annuitants to pay for health benefits, a portion of the 
contributions shall then be set aside in the Fund as described in 
subsection (b).
    ``(7) Under this subsection, `supplemental liability' means--
            ``(A) the actuarial present value for future post-
        retirement health benefits that are the liability of the Fund, 
        less
            ``(B) the sum of--
                    ``(i) the actuarial present value of all future 
                contributions by agencies and annuitants to the Fund 
                toward those benefits pursuant to section 8906;
                    ``(ii) the present value of all scheduled 
                amortization payments to the Fund pursuant to 
                paragraphs (1) and (2);
                    ``(iii) the Fund balance as of the date the 
                supplemental liability is determined, to the extent 
                that such balance is attributable to post-retirement 
                benefits; and
                    ``(iv) any other appropriate amount, as determined 
                by the Office in accordance with generally accepted 
                actuarial practices and principles.''.

SEC. 512. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL RETIREES.

    Title 10, United States Code, is amended--
            (1) in the title of chapter 56, by striking ``DEPARTMENT OF 
        DEFENSE MEDICARE-ELIGIBLE'' and inserting ``UNIFORMED 
        SERVICES'';
            (2) in section 1111--
                    (A) in subsection (a)--
                            (i) by striking ``Department of Defense 
                        Medicare-Eligible'' and inserting ``Uniformed 
                        Services'';
                            (ii) by striking ``Department of Defense 
                        under''; and
                            (iii) by striking ``for Medicare-eligible 
                        beneficiaries'';
                    (B) in subsection (c)--
                            (i) by striking ``The Secretary of Defense 
                        may'' and inserting ``The Secretary of Defense 
                        shall'';
                            (ii) by striking ``with any other'' and 
                        inserting ``with each'';
                            (iii) by striking ``Any such agreement'' 
                        and inserting ``Such agreements''; and
                            (iv) by striking ``administering Secretary 
                        may'' and inserting ``administrative Secretary 
                        shall'';
            (3) in section 1113--
                    (A) in subsection (a)--
                            (i) by striking ``and are Medicare 
                        eligible'';
                            (ii) by striking ``who are Medicare 
                        eligible''; and
                            (iii) by adding at the end the following 
                        new sentence: ``For the fiscal year starting 
                        October 1, 2010, only, the payments will be 
                        solely for the costs of members or former 
                        members of a uniformed service who are entitled 
                        to retired or retainer pay and are Medicare-
                        eligible, and eligible dependents or survivors 
                        who are Medicare-eligible.'';
                    (B) in subsection (c)(1), by striking ``who are 
                Medicare-eligible'';
                    (C) in subsection (d), by striking ``who are 
                Medicare-eligible''; and
                    (D) in subsection (f), by striking ``If'' and 
                inserting ``When'';
            (4) in section 1114, in subsection (a)(1), by striking 
        ``Department of Defense Medicare-Eligible'' and inserting 
        ``Uniformed Services'';
            (5) in section 1115--
                    (A) in subsection (b)(2), by striking ``The amount 
                determined under paragraph (1) for any fiscal year is 
                the amount needed to be appropriated to the Department 
                of Defense (or to the other executive department having 
                jurisdiction over the participating uniformed 
                service)'' and inserting ``The amount determined under 
                paragraph (1), or the amount determined under section 
                1111(c) for a participating uniformed service, for any 
                fiscal year, is the amount needed to be appropriated to 
                the Department of Defense (or to any other executive 
                department having jurisdiction over a participating 
                uniformed service)'';
                    (B) in subsection (c)(2), by striking ``for 
                Medicare eligible beneficiaries''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(f) For the fiscal year starting October 1, 2010, only, the 
amounts in this section shall be based solely on the costs of Medicare-
eligible benefits of beneficiaries and the costs for their eligible 
dependents or survivors who are Medicare-eligible, and shall be 
recalculated thereafter to reflect the cost of beneficiaries defined in 
section 1111.''.
            (6) in section 1116--
                    (A) in subsection (a)(1)(A), by striking ``for 
                Medicare-eligible beneficiaries'';
                    (B) in subsection (a)(2)(A), by striking ``for 
                Medicare-eligible beneficiaries''; and
                    (C) in subsection (c), by striking ``subsection (a) 
                shall be paid from funds available for the health care 
                programs'' and inserting ``subsection (a) and section 
                1111(c) shall be paid from funds available for the pay 
                of members of the participating uniformed services 
                under the jurisdiction of the respective administering 
                secretaries''.

SEC. 513. EFFECTIVE DATE.

    Except as otherwise provided, this title shall take effect upon 
enactment with respect to fiscal years beginning after 2014.

                       Subtitle C--Earmark Reform

SEC. 521. JOINT SELECT COMMITTEE ON EARMARK REFORM.

    (a) Establishment and Composition.--There is hereby established a 
Joint Select Committee on Earmark Reform (hereinafter referred to as 
the ``joint select committee''). The joint select committee shall be 
composed of 16 members as follows:
    (1) Eight Members of the House of Representatives, 4 appointed from 
the majority party by the Speaker of the House, and 4 from the minority 
party by the Speaker upon the recommendation of the minority leader.
    (2) Eight Members of the Senate, 4 appointed from the majority 
party by the majority leader of the Senate, and 4 from the minority 
party to be appointed by the minority leader.
A vacancy in the joint select committee shall not affect the power of 
the remaining members to execute the functions of the joint select 
committee, and shall be filled in the same manner as the original 
selection.
    (b) Study and Report.--
    (1) Study.--The joint select committee shall make a full study of 
the practices of the House, Senate, and Executive Branch regarding 
earmarks in authorizing, appropriation, tax, and tariff measures. As 
part of the study, the joint select committee shall consider the 
efficacy of--
    (A) the disclosure requirements of clause 9 of rule XXI and clause 
17 of rule XXIII of the Rules of the House of Representatives and rule 
XLIV of the Standing Rules of the Senate, and the definitions contained 
therein;
    (B) requiring full transparency in the process, with earmarks 
listed in bills at the outset of the legislative process and continuing 
throughout consideration;
    (C) requiring that earmarks not be placed in any bill after initial 
committee consideration;
    (D) requiring that Members be permitted to offer amendments to 
remove earmarks at subcommittee, full committee, floor consideration, 
and during conference committee meetings;
    (E) requiring that bill sponsors and majority and minority managers 
certify the validity of earmarks contained in their bills;
    (F) recommending changes to earmark requests made by the Executive 
Branch through the annual budget submitted to Congress pursuant to 
section 1105 of title 31, United States Code;
    (G) requiring that House and Senate amendments meet earmark 
disclosure requirements, including amendments adopted pursuant to a 
special order of business;
    (H) establishing new categories for earmarks, including--
            (i) projects with National scope;
            (ii) military projects; and
            (iii) local or provincial projects, including the level of 
        matching funds required for such project.
    (2) Report.--
    (A) The joint select committee shall submit to the House and the 
Senate a report of its findings and recommendations not later than 6 
months after adoption of this joint resolution.
    (B) No recommendation shall be made by the joint select committee 
except upon the majority vote of the members from each House, 
respectively.
    (C) Notwithstanding any other provision of this resolution, any 
recommendation with respect to the rules and procedures of one House 
that only affects matters related solely to that House may only be made 
and voted on by members of the joint select committee from that House 
and, upon its adoption by a majority of such members, shall be 
considered to have been adopted by the full committee as a 
recommendation of the joint select committee.
In conducting the study under paragraph (1), the joint select committee 
shall hold not fewer than 5 public hearings.
    (c) Resources and Dissolution.--
    (1) The joint select committee may utilize the resources of the 
House and Senate.
    (2) The joint select committee shall cease to exist 30 days after 
the submission of the report described in subsection (a)(2).
    (d) Definition.--For purposes of this section, the term ``earmark'' 
shall include congressional earmarks, congressionally directed spending 
items, limited tax benefits, or limited tariff benefits as those terms 
are used in clause 9 of rule XXI of the Rules of the House of 
Representatives and rule XLIV of the Standing Rules of the Senate. 
Nothing in this subsection shall confine the study of the joint select 
committee or otherwise limit its recommendations.

SEC. 522. MORATORIUM ON CONSIDERATION OF EARMARKS.

    (a) In the House.--It shall not be in order to consider a bill, 
joint resolution, or conference report containing a congressional 
earmark, limited tax benefit, or limited tariff benefit (as such terms 
are used in clause 9 of rule XXI of the Rules of the House of 
Representatives) or an earmark attributable to the President until the 
filing of the report required under section 1.
    (b) In the Senate.--[To be supplied.]

                     Subtitle D--Public Debt Limit

SEC. 531. LIMIT ON PUBLIC DEBT.

    Upon the enactment of a joint resolution setting forth the debt 
limit consistent with this section, section 3101 of title 31, United 
States Code, is amended to read as follows, with the blank to be set at 
the level provided for in such joint resolution:
``Sec. 3101. Public debt limit
    ``(a) In this section, the current redemption value of an 
obligation issued on a discount basis and redeemable before maturity at 
the option of its holder is deemed to be the face amount of the 
obligation.
    ``(b) The face amount of obligations issued under this chapter and 
the face amount of obligations whose principal and interest are 
guaranteed by the United States Government (except guaranteed 
obligations held by the Secretary of the Treasury and intragovernmental 
holdings) may not be more than $________ outstanding at one time, 
subject to changes periodically made in that amount as provided by law.
    ``(c) For purposes of this section, the face amount, for any month, 
of any obligation issued on a discount basis that is not redeemable 
before maturity at the option of the holder of the obligation is an 
amount equal to the sum of--
            ``(1) the original issue price of the obligation, plus
            ``(2) the portion of the discount on the obligation 
        attributable to periods before the beginning of such month (as 
        determined under the principles of section 1272(a) of the 
        Internal Revenue Code of 1986 without regard to any exceptions 
        contained in paragraph (2) of such section).
    ``(d) For purposes of this section, the term `intragovernment 
holding' is any obligation issued by the Secretary of the Treasury to 
any Federal trust fund or Government account, whether in respect of 
public money, money otherwise required to be deposited in the Treasury, 
or amounts appropriated.''.

SEC. 532. REPEAL OF THE GEPHARDT RULE.

    The Rules of the House of Representatives are amended by repealing 
rule XXVIII (relating to the statutory limit on public debt).

                   Subtitle E--Risk-Assumed Budgeting

SEC. 541. MARKET ADJUSTED RATE FOR FEDERAL CREDIT REFORM ACT OF 1990.

    Amend section 502(5)(E) of the Federal Credit Reform Act of 1990 to 
read as follows:
                    ``(E) In estimating net present values, the 
                discount rate shall be the average interest rate on 
                marketable Treasury securities of similar maturity to 
                the cash flows of the direct loan or loan guarantee for 
                which the estimate is being made, as adjusted for 
                market risks; and''.

SEC. 542. CBO AND GAO STUDY.

    The Congressional Budget Office and the Government Accountability 
Office shall prepare a study and make recomendations as to the 
feasibility of applying accrual concepts to budgeting for the costs of 
Federal insurance programs, adapting the budgetary principles now used 
for Federal loan and loan guarantee programs to Federal insurance 
programs.

                      TITLE VI--BUDGET ENFORCEMENT

SEC. 600. SHORT TITLE.

    This title may be cited as the ``Budget Enforcement and 
Congressional Control Act of 2009''.

                   Subtitle A--Enforcement Amendments

SEC. 601. POINTS OF ORDER IN THE HOUSE OF REPRESENTATIVES AND THE 
              SENATE.

    Section 904 of the Congressional Budget Act of 1974 is amended as 
follows:
            (1) In subsection (c)(1), insert ``312(g), (h), (i), and 
        (j),'' before ``313,'', and insert ``316, 317, 322, 323,'' 
        before ``904(C),'';
            (2) In subsection (d)(2), insert ``312(g), (h), (i), and 
        (j),'' before ``313,'', and insert ``316, 317, 322, 323,'' 
        before ``904(C),'';
            (3) In subsections (C)(2) and (d)(3), strike ``311(a),'';
            (4) ``In subsections (C)(1) and (d)(2) insert `311(a),' 
        after `310(d)(2),'.'';
            (5) In subsections (C)(1), (C)(2), (d)(2), and (d)(3) by 
        inserting ``or the House of Representatives'' after ``Senate'' 
        each place it appears, and
            (6) Strike subsection (e).

SEC. 602. POINT OF ORDER WAIVER PROTECTION.

    Rule XIII of the Rules of the House of Representatives (as amended 
by section 313) is further amended by adding at the end the following 
new clause:
    ``10. (a) It shall not be in order to consider a rule or order that 
waives the provisions of any section of the Congressional Budget Act of 
1974 referred to in section 904(C)(1) of such Act or of section 212 of 
the Spending, Deficit, and Debt Control Act of 2009.
    ``(b) As disposition of a point of order under paragraph (a), the 
Chair shall put the question of consideration with respect to the 
proposition that is the subject of the point of order. A question of 
consideration under this clause shall be debatable for 10 minutes by 
the Member initiating the point of order and for 10 minutes by an 
opponent of the point of order, but shall otherwise be decided without 
intervening motion except one that the House of Representatives adjourn 
or that the Committee of the Whole rise, as the case may be.
    ``(c) The disposition of the question of consideration under this 
clause with respect to a bill or joint resolution shall be considered 
also to determine the question of consideration under this clause with 
respect to an amendment made in order as original text.''.

SEC. 603. APPLICATION OF THE LIMITATION ON RECONCILIATION LEGISLATION.

    Section 310(g) of the Congressional Budget Act of 1974 is amended 
by adding ``, but it shall be in order to consider any such bill, 
resolution, amendment, or conference report if the report issued 
pursuant to section 308(f)(1) indicates that the solvency referred to 
in such paragraph has not been achieved'' before the period at the end.

SEC. 604. TWENTY-PERCENT LIMIT ON NEW DIRECT SPENDING IN RECONCILIATION 
              LEGISLATION.

    At the end of section 313 of the Congressional Budget Act add the 
following subsection:
    ``(f) Direct Spending Limitation.--
            ``(1) Point of order.--In the House of Representatives and 
        the Senate, it shall not be in order to consider any 
        reconciliation bill, joint resolution, motion, amendment, or 
        any conference report on, or an amendment between the House of 
        Representatives in relation to, a reconciliation bill pursuant 
        to section 310(a) or (h) of the Congressional Budget Act of 
        1974, that produces an increase in outlays, if--
                    ``(A) the effect of all the provisions in the 
                jurisdiction of any committee is to create gross new 
                direct spending that exceeds 20 percent of the total 
                savings instruction to the committee; or
                    ``(B) the effect of the adoption of an amendment 
                results in gross new direct spending that exceeds 20 
                percent of the total savings instruction to the 
                committee.
            ``(2) Application of section 313.--
                    ``(A) A point of order under paragraph (1) may be 
                raised by a Senator as provided in section 313(e) of 
                the Congressional Budget Act of 1974.
                    ``(B) Paragraph (1) may be waived or suspended only 
                by an affirmative vote of three-fifths of the Members, 
                duly chosen and sworn. An affirmative vote of three-
                fifths of the Members of the Senate, duly chosen and 
                sworn, shall be required to sustain an appeal of the 
                ruling of the Chair on a point of order raised under 
                paragraph (1).
                    ``(C) If a point of order is sustained under 
                paragraph (1) against a conference report in the 
                Senate, the report shall be disposed of as provided in 
                section 313(d) of the Congressional Budget Act of 
                1974.''.

SEC. 605. TREATMENT OF EXTRANEOUS APPROPRIATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 305) is further amended by adding at the end the 
following new section:

   ``treatment of extraneous appropriations in omnibus appropriation 
                                measures

    ``Sec. 321.  (a) Point of Order.--It shall not be in order in the 
House of Representatives or the Senate to consider an omnibus 
appropriation measure, or any amendment thereto or conference report 
thereon, that appropriates funds for any program, project, or activity 
that is not within the subject-matter jurisdiction of any subcommittee 
of the Committee on Appropriations of the House of Representatives or 
Senate, as applicable, with jurisdiction over any regular appropriation 
bill contained in such measure.''.
    (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 320 the 
following new item:

``Sec. 321. Treatment of extraneous appropriations in omnibus 
                            appropriation measures.''.
    (c) Advance Appropriation Point of Order.--Section 312 of the 
Congressional Budget Act of 1974 (as amended by section 601) is further 
amended by adding at the end the following new subsection:
    ``(l) Advance Appropriation Point of Order.--It shall not be in 
order in the House of Representatives or the Senate to consider any 
appropriation bill or joint resolution, or amendment thereto or 
conference report thereon, that provides advance discretionary new 
budget authority that first becomes available for any fiscal year after 
the budget year at an amount for any program, project, or activity 
above the amount of appropriations for fiscal year 2007 for such 
program, project, or activity.''.

SEC. 606. ESTABLISHMENT OF DISCRETIONARY DEFICIT REDUCTION ACCOUNT.

    (a) Discretionary Deficit Reduction Account.--Title III of the 
Congressional Budget Act of 1974 (as amended by section 605) is further 
amended by adding at the end the following new section:

               ``discretionary deficit reduction account

    ``Sec. 322.  (a) Establishment of Account.--The chairman of the 
Committee on the Budget of the House of Representatives and of the 
Senate shall each maintain an account to be known as the `deficit 
reduction Discretionary Account'. The Account shall be divided into 
entries corresponding to the subcommittees of the Committee on 
Appropriations of that House and each entry shall consist of the 
`deficit reduction Balance'.
    ``(b) Components.--Each entry shall consist only of amounts 
credited to it under subsection (c). No entry of a negative amount 
shall be made.
    ``(c) Crediting of Amounts to Account.--
            ``(1) Whenever a Member or Senator, as the case may be, 
        offers an amendment to an appropriation bill to reduce new 
        budget authority in any account, that Member or Senator may 
        state the portion of such reduction that shall be credited to--
                    ``(A) the deficit reduction Balance;
                    ``(B) used to offset an increase in new budget 
                authority in any other account; or
                    ``(C) allowed to remain within the applicable 
                section 302(b) suballocation.
            ``(2) If no such statement is made, the amount of reduction 
        in new budget authority resulting from the amendment shall be 
        credited to the deficit reduction Balance, as applicable, if 
        the amendment is agreed to.
            ``(3) Except as provided by paragraph (4), the chairman of 
        the Committee on the Budget of the House of Representatives or 
        Senate, as applicable, shall, upon the engrossment of any 
        appropriation bill by the House of Representatives or Senate, 
        as applicable, credit to the applicable entry balances amounts 
        of new budget authority and outlays equal to the net amounts of 
        reductions in budget authority and in outlays resulting from 
        amendments agreed to by that House to that bill.
            ``(4) 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 Senate, as 
        applicable, to an appropriation bill, the chairman of the 
        Committee on the Budget of that House 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 deficit reduction Balance, or that fall within 
        the last sentence of paragraph (1).
            ``(5) The chairman of the Committee on the Budget of the 
        House of Representatives and of the Senate shall each maintain 
        a running tally of the amendments adopted reflecting increases 
        and decreases of budget authority in the bill as reported to 
        its House. This tally shall be available to Members or Senators 
        during consideration of any bill by that House.
    ``(d) Calculation of Savings in Deficit Reduction Accounts in the 
House of Representatives and Senate.--
    ``(1) For the purposes of enforcing section 302(a), upon the 
engrossment of any appropriation bill by the House of Representatives 
or Senate, as applicable, the amount of budget authority and outlays 
calculated pursuant to subsection (c)(3) shall be counted against the 
302(a) allocation provided to the Committee on Appropriations as if the 
amount calculated pursuant to subsection (c)(3) was included in the 
bill just engrossed.
    ``(2) For purposes of enforcing section 302(b), upon the 
engrossment of any appropriation bill by the House of Representatives 
or Senate, as applicable, the 302(b) allocation provided to the 
subcommittee for the bill just engrossed shall be deemed to have been 
reduced by the amount of budget authority and outlays calculated, 
pursuant to subsection (c)(3).
    ``(e) 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 fiscal year 2010 or any subsequent 
fiscal year, as the case may be.''.

SEC. 607. ESTABLISHMENT OF MANDATORY DEFICIT REDUCTION ACCOUNT.

    Title III of the Congressional Budget Act of 1974 (as amended by 
section 606) is further amended by adding at the end the following new 
section:

                 ``mandatory deficit reduction account

    ``Sec. 323.  (a) Establishment of Account.--The chairman of the 
Committee on the Budget of the House of Representatives and of the 
Senate shall each maintain an account to be known as the `deficit 
reduction Mandatory Account'. The Account shall be divided into entries 
corresponding to the House of Representatives or Senate committees, as 
applicable, that received allocations under section 302(a) in the most 
recently adopted joint resolution on the budget, except that it shall 
not include the Committee on Appropriations of that House and each 
entry shall consist of the `First Year deficit reduction Account' and 
the `Five Year deficit reduction Account' or the period covered by the 
resolution on the budget for that fiscal year, as applicable.
    ``(b) Components.--Each entry shall consist only of amounts 
credited to it under subsection (c). No entry of a negative amount 
shall be made.
    ``(c) Calculation of Account Savings in House and Senate.--For the 
purposes of enforcing section 302(a), upon the engrossment of any bill, 
other than an appropriation bill, by the House of Representatives or 
Senate, as applicable, the amount of budget authority and outlays 
calculated pursuant to subsection (c)(3) shall be counted against the 
302(a) allocation provided to the applicable committee or committees of 
that House which reported the bill as if the amount calculated pursuant 
to subsection (c)(3) was included in the bill just engrossed.
    ``(d) Crediting of Amounts to Account.--
            ``(1) Whenever a Member or Senator, as the case may be, 
        offers an amendment to a bill that reduces the amount of 
        mandatory budget authority provided either under current law or 
        proposed to be provided by the bill under consideration, that 
        Member or Senator may state the portion of such reduction 
        achieved in the first year covered by the most recently adopted 
        joint resolution on the budget and in addition the portion of 
        such reduction achieved in the first five years covered by the 
        most recently adopted joint resolution on the budget that shall 
        be credited to the First Year deficit reduction Balance and the 
        Five Year deficit reduction Balance, as applicable, if the 
        amendment is agreed to.
            ``(2) Except as provided by paragraph (3), the chairman of 
        the Committee on the Budget of the House of Representatives or 
        Senate, as applicable, shall, upon the engrossment of any bill, 
        other than an appropriation bill, by the House of 
        Representatives or Senate, as applicable, credit to the 
        applicable entry balances amounts of new budget authority and 
        outlays equal to the net amounts of reductions in budget 
        authority and in outlays resulting from amendments agreed to by 
        that House to that bill.
            ``(3) When computing the net amounts of reductions in 
        budget authority and in outlays resulting from amendments 
        agreed to by the House of Representatives or Senate, as 
        applicable, to a bill, the chairman of the Committee on the 
        Budget of that House shall only count those portions of such 
        amendments agreed to that were so designated by the Members or 
        Senators offering such amendments as amounts to be credited to 
        the First Year deficit reduction Balance and the Five-Year 
        deficit reduction Balance, or that fall within the last 
        sentence of paragraph (1).
            ``(4) The chairman of the Committee on the Budget of the 
        House of Representatives and of the Senate shall each maintain 
        a running tally of the amendments adopted reflecting increases 
        and decreases of budget authority in the bill as reported to 
        its House. This tally shall be available to Members or Senators 
        during consideration of any bill by that House.
    ``(e) 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 fiscal year 2009 or any subsequent 
fiscal year, as the case may be.''.

SEC. 608. 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 321 the following new 
items:

``Sec. 322. Discretionary deficit reduction account.
``Sec. 323. Mandatory deficit reduction account.''.

Subtitle B--Committee Term Limits Study in the House of Representatives

SEC. 611. SUSPENSION OF CERTAIN REQUIREMENTS REGARDING THE HOUSE OF 
              REPRESENTATIVES COMMITTEE TERM LIMITS COMMITTEE.

    Clause 5(a)(2)(B) of rule X of the Rules of the House of 
Representatives is suspended.

SEC. 612. ESTABLISHMENT OF THE SELECT COMMITTEE ON REQUIREMENTS 
              REGARDING THE HOUSE OF REPRESENTATIVES BUDGET COMMITTEE.

    There is established a select committee to review the rules 
regarding the membership on the Committee on the Budget of the House of 
Representatives.

SEC. 613. PROCEDURE.

    (a) Legislative Jurisdiction.--The select committee shall not have 
legislative jurisdiction and shall have no authority to take 
legislative action on any bill or resolution.
    (b) Study.--The select committee shall study and make 
recommendations about the effectiveness of limiting the membership on 
the House of Representatives Budget Committee to four Congresses within 
a period of six successive Congresses.

SEC. 614. COMPOSITION.

    The select committee shall be composed of 8 members appointed by 
the Speaker, of whom 4 shall be appointed upon the recommendation of 
the minority leader. The Speaker shall designate one member of the 
select committee as chairman.

SEC. 615. REPORTING.

    The select committee shall issue at least one public report to be 
filed with the House of Representatives not later than December 31, 
2010, and shall include recommendations based on its findings.

SEC. 616. ADMINISTRATIVE PROVISIONS.

    There shall be paid out of the applicable accounts of the House of 
Representatives such sums as may be necessary for the expenses of the 
select committee. Such payments shall be made on vouchers signed by the 
chairman of the select committee and approved in the manner directed by 
the Committee on House Administration.

SEC. 617. DISSOLUTION.

    The select committee shall cease to exist on December 31, 2010.

                   Subtitle C--Judicial Consideration

SEC. 621. JUDICIAL REVIEW.

    (a) Expedited Review.--
            (1) any Member of Congress or any individual adversely 
        affected by this Act may bring an action, in the United States 
        District Court for the District of Columbia, for declaratory 
        judgment and injunctive relief on the ground that any provision 
        of this part violates the Constitution.
            (2) a copy of any complaint in an action brought under 
        paragraph (1) shall be promptly delivered to the Secretary of 
        the Senate and the Clerk of the House of Representatives, and 
        each House of Congress shall have the right to intervene in 
        such action.
            (3) nothing in this section or in any other law shall 
        infringe upon the right of the House of Representatives to 
        intervene in an action brought under paragraph (1) without the 
        necessity of adopting a resolution to authorize such 
        intervention.
    (b) Appeal to Supreme Court.--Notwithstanding any other provision 
of law, any order of the United States District Court for the District 
of Columbia which is issued pursuant to an action brought under 
paragraph (1) of subsection (a) shall be reviewable by appeal directly 
to the Supreme Court of the United States. Any such appeal shall be 
taken by a notice of appeal filed within 10 calendar days after such 
order is entered; and the jurisdictional statement shall be filed 
within 30 calendar days after such order is entered. No stay of an 
order issued pursuant to an action brought under paragraph (1) of 
subsection (a) shall be issued by a single Justice of the Supreme 
Court.
    (c) Expedited Consideration.--It shall be the duty of the District 
Court for the District of Columbia and the Supreme Court of the United 
States to advance on the docket and to expedite to the greatest 
possible extent the disposition of any matter brought under subsection 
(a).

SEC. 622. SEVERABILITY.

    If any provision of this subtitle, or the application of any 
provision of this subtitle to any person or circumstance is held 
invalid, the application of such provision or circumstance and the 
remainder of this subtitle shall not be affected thereby.
                                 <all>