[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1605 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1605

          To reduce Federal spending in a responsible manner.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 2011

  Mr. Duncan of Tennessee (for himself, Mr. Cooper, Mrs. Black, Mrs. 
Blackburn, Mr. DesJarlais, Mr. Fincher, Mr. Fleischmann, and Mr. Roe of 
  Tennessee) introduced the following bill; which was referred to the 
Committee on the Budget, and in addition to the Committee on Rules, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
          To reduce Federal spending in a responsible manner.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commitment to American Prosperity 
Act of 2011'' or the ``CAP Act of 2011''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) This Act is authorized by the United States 
        Constitution under clause 1 of section 8 of article I, relating 
        to the power of the Congress to tax and spend.
            (2) Should an amendment to the United States Constitution 
        be adopted and ratified by the States setting a lower 
        limitation on outlays than provided in this Act, it is 
        appropriate for Congress to consider legislation immediately 
        modifying maximum outlay amounts in this Act.
            (3) Total Federal outlays have averaged 20.6 percent of 
        gross domestic product over the past 40 years.
            (4) Total Federal outlays in fiscal year 2010 were 23.8 
        percent of gross domestic product.
            (5) Total Federal outlays in fiscal year 2020 are projected 
        to be 25.9 percent of gross domestic product according to the 
        Congressional Budget Office's Alternative Fiscal Scenario.
            (6) It is appropriate and necessary to put total Federal 
        outlays under a limitation, as a percent of gross domestic 
        product, such that a downward glide path ultimately brings 
        spending in line with historical norms.

SEC. 3. OUTLAYS EXCEEDING THE GDP OUTLAY LIMIT.

    (a) Definitions.--Section 250(c)(4) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking paragraph 
(4), redesignating the succeeding paragraphs accordingly, and adding 
the following paragraphs:
            ``(19) The term `GDP', for any fiscal year, means the gross 
        domestic product during such fiscal year consistent with 
        Department of Commerce definitions.
            ``(20)(A) The term `emergency requirement' means any 
        provision that provides new budget authority and resulting 
        outlays for a situation that poses a threat to life, property, 
        or national security and is--
                    ``(i) sudden, quickly coming into being, and not 
                building up over time;
                    ``(ii) an urgent, pressing, and compelling need 
                requiring immediate action;
                    ``(iii) unforeseen, unpredictable, and 
                unanticipated; and
                    ``(iv) not permanent, temporary in nature.
            ``(B) An emergency that is part of an aggregate level of 
        anticipated emergencies, particularly when normally estimated 
        in advance, is not unforeseen.
            ``(21) The term `target fiscal year' means the fiscal year 
        in which a GDP outlay limit is in effect under section 253A.''.
    (b) Caps.--The Balanced Budget and Emergency Deficit Control Act of 
1985 is amended by inserting after section 253 the following:

``SEC. 253A. ENFORCING GDP OUTLAY LIMITS.

    ``(a) Enforcing GDP Outlay Limits.--In this section, the term `GDP 
outlay limit' means an amount, as estimated by OMB, equal to--
            ``(1) the average GDP for the first 3 of the 4 fiscal years 
        preceding the target fiscal year (fiscal year 2009, fiscal year 
        2010 and fiscal year 2011 for target year fiscal year 2013, and 
        so on); multiplied by
            ``(2)(A) 25 percent for fiscal year 2013; and
            ``(B) for fiscal years 2014 through 2022, 25 percent minus 
        0.1711 percent accumulating for each fiscal year (25 percent 
        minus .1711 percent in fiscal year 2014, 25 percent minus .3422 
        percent in fiscal year 2015, and so on).
    ``(b) GDP Outlay Limit and Outlays.--
            ``(1) Determining the gdp outlay limit.--The Office of 
        Management and Budget shall estimate the GDP outlay limit for 
        the target fiscal year at the outset of the previous fiscal 
        year, on April 30, on August 20, and 15 days after the 
        conclusion of the fiscal year. CBO shall provide advisory 
        reports calculating the GDP outlay limit at identical times.
            ``(2) Total federal outlays.--In this section, total 
        Federal outlays shall include all on-budget and off-budget 
        outlays.
    ``(c) Sequestration.--
            ``(1) In general.--
                    ``(A) Excess spending.--Not later than 45 calendar 
                days after the beginning of a fiscal year, OMB shall 
                conduct a sequestration to eliminate the excess outlay 
                amount.
                    ``(B) Definition.--For purposes of this subsection, 
                the term `excess outlay amount' means the amount by 
                which total Federal outlays for a fiscal year exceed 
                the GDP outlay limit as adjusted pursuant to paragraph 
                (2).
            ``(2) Preview report.--CBO shall submit an advisory 
        sequestration preview report as described in section 254(c)(4) 
        on August 10 of each year. OMB shall produce an sequestration 
        preview report on August 20 as described in section 254(c)(4). 
        Fifteen days after the fiscal year begins, OMB shall issue an 
        updated sequestration report as described in section 254(e). 
        Thirty days later, the OMB should issue its final sequestration 
        report as described in section 254(f)(3). It shall be 
        accompanied by a Presidential order detailing the uniform 
        spending reductions. The reductions should generally follow the 
        process set forth in section 253 and 254, except as provided in 
        this section.
            ``(3) Congressional action.--If the August 20 OMB report 
        projects a sequestration, the Senate and House Budget 
        Committees may report a resolution directing their committees 
        to change the existing law to achieve the goals outlined in the 
        August 20 report.
            ``(4) Reducing nonexempt budgetary resources by a 
        proportional percentage.--
                    ``(A) Calculation.--OMB shall calculate the 
                increase in outlays attributable to each of the 3 
                categories described in subparagraph (B) such that the 
                outlay savings resulting from sequestration, as 
                calculated under this subsection, eliminate excess 
                outlays.
                    ``(B) Categories.--The 3 categories are as follows:
                            ``(i) Direct spending (Social Security, 
                        Medicare, and other such programs).
                            ``(ii) Discretionary security spending.
                            ``(iii) Discretionary non-security 
                        spending.
                    ``(C) Reductions proportional.--The percentage 
                reductions for each category described in subparagraph 
                (B) shall be in proportion to the growth in outlays in 
                such category from the previous fiscal year.
                    ``(D) Uniform reduction within categories.--To 
                achieve the percent reduction within a category under 
                subparagraph (C), a uniform reduction will occur across 
                all programs within that category to achieve the 
                percent reduction required for that category.
                    ``(E) Pro rata basis.--If legislation funding the 
                Government does not reflect funding amounts for the 
                entire fiscal year, sequestration required by this 
                section shall be done on a pro rata basis. If 
                legislation funding the Government for the remainder of 
                a fiscal year is enacted, the total sequestration 
                required in a fiscal year shall total the necessary 
                level which may be undertaken in a single step or in a 
                sequence of steps.
    ``(d) Exceptions.--Total Federal outlays may exceed the GDP outlay 
limit if during the fiscal year the excess amount is being paid to 
reduce the public debt or the public debt is zero.
    ``(e) No Exempt Programs.--Section 255 shall not apply to this 
section, except that payments for net interest (budget function 900) 
shall be exempt.
    ``(f) Look Back.--If, after November 15, a bill resulting in 
outlays for the fiscal year in progress is enacted that causes excess 
outlays, the excess outlays for the next fiscal year shall be increased 
by the amount or amounts of that breach.''.
    (c) BBEDCA.--Notwithstanding section 275 of the Balanced Budget and 
Emergency Deficit Control Act of 1985, the relevant provisions of such 
Act shall apply to the extent necessary to enforce this Act, including 
amendments made by this Act.
    (d) Effective Date.--This section shall apply beginning in fiscal 
year 2013 and beyond, including any reports and calculations required 
for implementation in fiscal year 2013.

SEC. 4. ENFORCEMENT PROCEDURES UNDER THE CONGRESSIONAL BUDGET ACT OF 
              1974.

    (a) Enforcement.--Title III of the Congressional Budget Act of 1974 
is amended by adding after section 315 the following:

``SEC. 316. ENFORCEMENT PROCEDURES.

    ``(a) GDP Outlay Limits.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause the most recently reported, current GDP outlay limits set forth 
in section 253A of the Balanced Budget and Emergency Deficit Control 
Act of 1985 to be exceeded.
    ``(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, present and voting.
            ``(2) In the house.--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, present and 
        voting.
    ``(c) Point of Order Protection.--In the House, it shall not be in 
order to consider a rule or order that waives the application of 
paragraph (2) of subsection (b).
    ``(d) Motion To Suspend.--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.''.
    (b) Table of Contents.--The table of contents 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:

``Sec. 316. Enforcement procedures.''.
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