[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2319 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2319

To cap noninterest Federal spending as a percentage of full employment 
  GDP, to require that budgets and budget resolutions adhere to these 
  caps, to enforce these caps, to increase financial transparency for 
 mandatory programs, to provide for a line-item adjustment, to require 
 the parings of significant spending increases and adjustments to the 
debt ceiling, and to provide for a Federal Sunset commission to assist 
 Congress in eliminating Federal agencies and programs that no longer 
    serve a public need or reforming those that are inefficient or 
     ineffective in serving a public need, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 2011

Mr. Brady of Texas introduced the following bill; which was referred to 
   the Committee on the Budget, and in addition to the Committees on 
  Rules, Ways and Means, Appropriations, and Oversight and Government 
 Reform, 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 cap noninterest Federal spending as a percentage of full employment 
  GDP, to require that budgets and budget resolutions adhere to these 
  caps, to enforce these caps, to increase financial transparency for 
 mandatory programs, to provide for a line-item adjustment, to require 
 the parings of significant spending increases and adjustments to the 
debt ceiling, and to provide for a Federal Sunset commission to assist 
 Congress in eliminating Federal agencies and programs that no longer 
    serve a public need or reforming those that are inefficient or 
     ineffective in serving a public need, 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 ``Maximizing 
America's Prosperity Act of 2011''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
            TITLE I--STATUTORY CAP ON TOTAL FEDERAL SPENDING

Sec. 101. Total spending limits.
Sec. 102. Allocation for emergencies.
Sec. 103. Reports and orders.
Sec. 104. Spending reduction orders.
                 TITLE II--FISCALLY RESPONSIBLE BUDGET

Sec. 201. President's budget submissions to Congress.
Sec. 202. Concurrent resolutions on the budget.
         TITLE III--LEGISLATIVE LINE ITEM REDUCTION ACT OF 2011

Sec. 301. Short title.
Sec. 302. Legislative line item reduction.
               TITLE IV--PERMANENT CONTINUING RESOLUTION

Sec. 401. Automatic continuing appropriations.
                         TITLE V--TRANSPARENCY

Sec. 501. Inclusion in annual social security account statement of 
                            estimated present value of taxes and 
                            benefits for Social Security and Medicare 
                            and projected deficit as a percent of 
                            lifetime earnings.
                         TITLE VI--DEBT IMPACT

Sec. 601. CBO spending and revenue estimates.
                       TITLE VII--FEDERAL SUNSET

Sec. 701. Short title.
Sec. 702. Review and abolishment of Federal agencies.
Sec. 703. Establishment of Commission.
Sec. 704. Review of efficiency and need for Federal agencies.
Sec. 705. Criteria for review.
Sec. 706. Oversight by Commission.
Sec. 707. Disposition of agency affairs.
Sec. 708. Program inventory.
Sec. 709. Expedited consideration of schedule for review.
Sec. 710. Definitions.
Sec. 711. Offset of amounts appropriated.
                        TITLE VIII--SEVERABILITY

Sec. 801. Severability.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Excessive Federal spending relative to the size of the 
        U.S. economy as measured by gross domestic product (GDP) has 
        created large, persistent budget deficits and an unsustainable 
        increase in Federal debt.
            (2) The current level of Federal spending as a percentage 
        of GDP is well above both its post-World War II average and the 
        level found by most economists to maximize economic growth. 
        According to the nonpartisan Congressional Budget Office, if 
        current policies are not changed, Federal spending as a 
        percentage of GDP will explode to 35 percent of GDP by fiscal 
        year 2035.
            (3) A legislative spending cap is the most effective means 
        of controlling excessive Federal spending.
            (4)(A) Congress can directly control discretionary and 
        mandatory spending through legislative changes, but Congress 
        cannot directly control interest spending.
            (B) The Federal Reserve should conduct monetary policy 
        independently from fiscal policy with the goal of maintaining 
        long-term price stability. Thus, using total spending instead 
        of noninterest spending as the basis of the cap may create 
        undue pressure on the Federal Reserve to pursue an overly 
        accommodative monetary policy for too long in order to maintain 
        low interest rates to help Congress keep total spending within 
        its spending cap. If the Federal Reserve were to succumb to 
        this pressure, the United States would suffer from greater 
        price inflation and a declining foreign exchange value of the 
        U.S. dollar.
            (C) Therefore, the spending cap should be based on 
        noninterest spending.
            (5) A cap on noninterest spending should be relative to the 
        size of the economy. However, using actual or projected GDP as 
        the denominator would make the spending cap, and thus Federal 
        spending, susceptible to fluctuations in the economic cycle. 
        Hence, using an alternative measurement such as full employment 
        GDP would allow for greater stability in Federal spending 
        through the economic cycle.
            (6) To adhere to spending caps, Congress needs additional 
        tools to balance the special interest demands for additional 
        spending with the broader public interest for spending 
        restraint.

            TITLE I--STATUTORY CAP ON TOTAL FEDERAL SPENDING

SEC. 101. TOTAL SPENDING LIMITS.

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

``SEC. 252A. TOTAL SPENDING LIMITS.

    ``(a) Projections.--
            ``(1) OMB report.--OMB shall prepare a report comparing 
        projected total spending under section 257 and the total 
        spending limits in subsection (c), and include such report in 
        the budget as submitted by the President annually under section 
        1105(a) of title 31, United States Code.
            ``(2) CBO report.--CBO shall prepare a report comparing 
        projected total spending under section 257 and the total 
        spending limits in subsection (c) and include such report in 
        the CBO annual baseline and reestimate of the President's 
        budget.
            ``(3) Inclusion in spending reduction orders.--Reports 
        prepared pursuant to this subsection shall be included in the 
        spending reduction report.
    ``(b) Spending Reduction Order.--A spending reduction order shall 
be implemented using the procedures set forth in section 256.
    ``(c) Fiscal Years of the Total Spending Period.--The fiscal years 
within the total spending period shall be as follows:
            ``(1) Fiscal year 2013: 19.0 percent of full employment 
        GDP.
            ``(2) Fiscal year 2014: 18.0 percent of full employment 
        GDP.
            ``(3) Fiscal year 2015: 17.4 percent of full employment 
        GDP.
            ``(4) Fiscal year 2016: 17.2 percent of full employment 
        GDP.
            ``(5) Fiscal year 2017: 17.0 percent of full employment 
        GDP.
            ``(6) Fiscal year 2018: 16.8 percent of full employment 
        GDP.
            ``(7) Fiscal year 2019: 16.7 percent of full employment 
        GDP.
            ``(8) Fiscal year 2020: 16.6 percent of full employment 
        GDP.
            ``(9) Fiscal year 2021 and subsequent fiscal years: 16.5 
        percent of full employment GDP.
    ``(d) Reduction for Unfunded Federal Mandates.--The amount 
determined under subsection (c) with respect to each fiscal year shall 
be reduced by an amount equal to the amount of the unfunded direct 
costs with respect to such fiscal year of Federal mandates (as such 
terms are defined under section 421) enacted after the date of the 
enactment of this section. Such amount shall not be treated as being 
less than zero with respect to any fiscal year.''.
    (b) Definitions.--Section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 622) is amended by adding at 
the end the following new paragraphs:
            ``(11) The term `total spending' means all outlays of the 
        Government including those from off-budget entities and budget 
        authority and outlays flowing therefrom, as applicable, 
        designated as emergencies, and excluding net interest.
            ``(12) The term `total spending limit' means the maximum 
        permissible total spending of the Government set forth as a 
        percentage of estimated full employment GDP.
            ``(13) The term `full employment GDP' has the same meaning 
        as the term potential GDP used by the Congressional Budget 
        Office, which is the gross domestic product that would occur if 
        the economy were at full employment, not exceeding the 
        employment level at which inflation would occur .''.
    (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. 252A. Total spending limits.''.

SEC. 102. ALLOCATION FOR EMERGENCIES.

    (a) Section 302(a) of the Congressional Budget Act of 1974 is 
amended by adding at the end the following new paragraph:
            ``(6) Allocation to the committees on appropriations for 
        emergencies.--Of the amounts of new budget authority and 
        outlays allocated to the Committees on Appropriations for the 
        first fiscal year of the concurrent resolution on the budget, 1 
        percent shall be set aside for emergencies and may be used for 
        no other purpose.''.
    (b) Section 1105(a)(14) of title 31, United States Code, is amended 
by inserting ``, including an amount for emergency spending not less 
than 1 percent of all discretionary spending for that year'' before the 
period.

SEC. 103. 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 Committees on the Budget 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 Report.--
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a preview report 
        regarding discretionary limits and total spending limits, with 
        sequestration based on laws enacted through those dates.
            ``(2) Total spending limit sequestration report.--The 
        preview reports shall set forth for the budget year estimates 
        for the following:
                    ``(A) The total spending limit.
                    ``(B) The estimated total spending amount.
                    ``(C) The full employment GDP, as derived by OMB 
                from the most recent report of the Congressional Budget 
                Office entitled `The Budget and Economic Outlook'.
                    ``(D) The amount of reductions required under 
                section 252A.
            ``(3) 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 Report.--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 report.
    ``(e) Sequestration Final Report.--
            ``(1) Reporting requirement.--On the dates specified in 
        subsection (a), OMB and CBO shall issue a sequestration final 
        report, reflecting laws enacted through those dates, containing 
        all of the information required in the sequestration preview 
        report.
            ``(2) Presidential order.--On the date specified in 
        subsection (a), if in its sequestration final 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) 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.
    ``(g) 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. 104. 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) 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) Obligated balances of budget authority 
                carried over from prior fiscal years.
                    ``(C) Any obligations of the Federal Government 
                required to be paid under the United States 
                Constitution or legally contractual obligations.
                    ``(D) Intragovernmental transfers.
            ``(3) Reduction limitation.--(A) No discretionary budget 
        account shall be subject to a spending reduction of more than 
        ten percent of its budgetary resources.
            ``(B) No direct spending program shall be subject to a 
        spending reduction which exceeds the elimination of the entire 
        automatic spending increase for that program for the fiscal 
        year to which the applicable sequestration applies.
            ``(C) Notwithstanding subparagraph (A) or (B), a spending 
        reduction of 100 percent shall occur for any existing program 
        that is not operative on the applicable final spending 
        sequestration report.
            ``(4) 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.
    ``(b) Emergencies.--(1) No funding shall be subject to 
sequestration or counted for purposes of calculating a sequester if it 
is designated for an emergency program under this section and so 
designated by the President.
    ``(2) Congress shall not designate a program an emergency program 
unless such designation is agreed to in accordance with the 
requirements of paragraph (1) of clause 1 of rule XV of the Rules of 
the House of Representatives.''.
    (b) Technical and Conforming Amendments.--
            (1) Repeals.--Sections 255 and 275 of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 are 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 II--FISCALLY RESPONSIBLE BUDGET

SEC. 201. PRESIDENT'S BUDGET SUBMISSIONS TO CONGRESS.

    Section 1105 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(i)(1) The budget transmitted pursuant to subsection (a) shall be 
in compliance with the statutory cap on total Federal spending set 
forth in the Maximizing America's Prosperity Act of 2011.
    ``(2) Any budget transmitted pursuant to subsection (a) or 
paragraph (1) for a fiscal year shall include the following:
            ``(A) A plan to ensure that the OASDI and HI trust funds 
        will not be exhausted during the 75-year projection period and 
        that the trust fund ratios will not be declining at the end of 
        such period if the report from the Actuaries indicate a 
        shortfall in the trust funds.
            ``(B) A prioritization of non-exempt spending (as described 
        in section 256(a)(2) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985), by ranking all programs, 
        projects, and activities of the Government in five categories 
        from the--
                    ``(i) most essential to
                    ``(ii) essential to
                    ``(iii) somewhat essential to
                    ``(iv) less essential to
                    ``(v) least essential,
        with not less than 12 percent of total non-exempt spending 
        falling into any one category.
For purposes of subparagraph (A), the term `OASDI trust fund ratio' has 
the meaning provided in section 201(l)(3)(B)(iii) of the Social 
Security Act and the term `Hospital Insurance Trust Fund ratio' has the 
meaning provided in section 201(l)(5)(B) of such Act, and such budget 
shall facilitate the plan.''.

SEC. 202. CONCURRENT RESOLUTIONS ON THE BUDGET.

    (a) In General.--Section 312 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new subsection:
    ``(g) Statutory Cap on Total Federal Spending Point of Order.--It 
shall not be in order in the House of Representatives or the Senate to 
consider any concurrent resolution on the budget that sets forth total 
Federal outlays for any fiscal year in excess of those set forth for 
that fiscal year in section 252A of the Balanced Budget and Emergency 
Deficit Control Act of 1985.''.
    (b) Conforming Amendment.--Subsections (c)(2) and (d)(3) of section 
904 of the Congressional Budget Act of 1974 are each amended by 
striking ``and 312(c)'' and inserting ``312(c), and 312(g)''.

         TITLE III--LEGISLATIVE LINE ITEM REDUCTION ACT OF 2011

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Legislative Line Item Reduction 
Act of 2011''.

SEC. 302. LEGISLATIVE LINE ITEM REDUCTION.

    (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 part C and inserting the following:

               ``Part C--Legislative Line Item Reduction

       ``expedited consideration of certain proposed rescissions

    ``Sec. 1021. 
    ``(a) Proposed Rescissions.--The President may send a special 
message, at the time and in the manner provided in subsection (b), that 
proposes to rescind dollar amounts of discretionary budget authority 
and items of direct spending.
    ``(b) Transmittal of Special Message.--
            ``(1) Special message.--
                    ``(A) In general.--
                            ``(i) Four messages.--The President may 
                        transmit to Congress not to exceed 4 special 
                        messages per calendar year, proposing to 
                        rescind dollar amounts of discretionary budget 
                        authority and items of direct spending.
                            ``(ii) Timing.--Special messages may be 
                        transmitted under clause (i)--
                                    ``(I) with the President's budget 
                                submitted pursuant to section 1105 of 
                                title 31, United States Code; and
                                    ``(II) 3 other times as determined 
                                by the President.
                            ``(iii) Limitations.--
                                    ``(I) In general.--Special messages 
                                shall be submitted within 1 calendar 
                                year of the date of enactment of any 
                                dollar amount of discretionary budget 
                                authority or item of direct spending 
                                the President proposes to rescind 
                                pursuant to this title.
                                    ``(II) Resubmittal.--If Congress 
                                rejects or does not complete action on 
                                a bill introduced under this title, the 
                                President may resubmit some or all of 
                                the dollar amounts of discretionary 
                                budget authority and items of direct 
                                spending in that bill in not more than 
                                1 additional special message under this 
                                part or part B.
                    ``(B) Contents of special message.--Each special 
                message shall specify, with respect to the dollar 
                amount of discretionary budget authority or item of 
                direct spending proposed to be rescinded--
                            ``(i) the dollar amount of discretionary 
                        budget authority available and proposed for 
                        rescission from accounts, departments, or 
                        establishments of the government and the dollar 
                        amount of the reduction in outlays that would 
                        result from the enactment of such rescission of 
                        discretionary budget authority for the time 
                        periods set forth in subparagraph (A)(iii);
                            ``(ii) the specific items of direct 
                        spending proposed for rescission and the dollar 
                        amounts of the reductions in budget authority 
                        and outlays or increases in receipts that would 
                        result from enactment of such rescission for 
                        the time periods set forth in subparagraph 
                        (A)(iii);
                            ``(iii) the budgetary effects of proposals 
                        for rescission, estimated as of the date the 
                        President submits the special message, relative 
                        to the most recent levels calculated consistent 
                        with the methodology described in 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, for the time periods of--
                                    ``(I) the fiscal year in which the 
                                proposal is submitted; and
                                    ``(II) each of the 10 following 
                                fiscal years beginning with the fiscal 
                                year after the fiscal year in which the 
                                proposal is submitted;
                            ``(iv) any account, department, or 
                        establishment of the Government to which such 
                        dollar amount of discretionary budget authority 
                        or item of direct spending is available for 
                        obligation, and the specific project or 
                        governmental functions involved;
                            ``(v) the reasons why such dollar amount of 
                        discretionary budget authority or item of 
                        direct spending should be rescinded;
                            ``(vi) the estimated fiscal and economic 
                        impacts, of the proposed rescission;
                            ``(vii) to the maximum extent practicable, 
                        all facts, circumstances, and considerations 
                        relating to or bearing upon the proposed 
                        rescission and the decision to effect the 
                        proposed rescission, and the estimated effect 
                        of the proposed rescission upon the objects, 
                        purposes, and programs for which the budget 
                        authority or items of direct spending are 
                        provided; and
                            ``(viii) a draft bill that, if enacted, 
                        would rescind the budget authority and items of 
                        direct spending proposed to be rescinded in 
                        that special message.
            ``(2) Analysis by congressional budget office.--
                    ``(A) In general.--Upon the receipt of a special 
                message under this section proposing to rescind dollar 
                amounts of discretionary budget authority and items 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 rescission.
                    ``(B) Methodology.--The estimates required by 
                subparagraph (A) shall be made 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 Control Act of 
                1985 and included with a budget submission under 
                section 1105(a) of title 31, United States Code, and 
                transmitted to the chairmen of the Committees on the 
                Budget of the House of Representatives and Senate.
            ``(3) Enactment of rescission bill.--
                    ``(A) Deficit reduction.--Amounts of budget 
                authority or items of direct spending that are 
                rescinded pursuant to enactment of a bill as provided 
                under this section shall be dedicated only to deficit 
                reduction and shall not be used as an offset for other 
                spending increases or revenue reductions.
                    ``(B) Adjustment of budget targets.--Not later than 
                5 days after the date of enactment of a rescission bill 
                as provided under this section, the chairs of the 
                Committees on the Budget of the Senate and the House of 
                Representatives shall revise spending and revenue 
                levels under section 311(a) of the Congressional Budget 
                Act of 1974 and adjust the committee allocations under 
                section 302(a) of the Congressional Budget Act of 1974 
                or any other adjustments as may be appropriate to 
                reflect the rescission. The adjustments shall reflect 
                the budgetary effects of such rescissions as estimated 
                by the President pursuant to paragraph (1)(B)(iii). The 
                appropriate committees shall report revised allocations 
                pursuant to section 302(b) of the Congressional Budget 
                Act of 1974. Notwithstanding any other provision of 
                law, the revised allocations and aggregates shall be 
                considered to have been made under a concurrent 
                resolution on the budget agreed to under the 
                Congressional Budget Act of 1974 and shall be enforced 
                under the procedures of that Act.
                    ``(C) Adjustments to caps.--After enactment of a 
                rescission bill as provided under this section, the 
                President shall revise applicable limits under the 
                Maximizing America's Prosperity Act of 2011, as 
                appropriate.
    ``(c) Procedures for Expedited Consideration.--
            ``(1) In general.--
                    ``(A) Introduction.--Before the close of the second 
                day of session of the Senate and the House of 
                Representatives, respectively, after the date of 
                receipt of a special message transmitted to Congress 
                under subsection (b), the majority leader of each 
                House, for himself, or minority leader of each House, 
                for himself, or a Member of that House designated by 
                that majority leader or minority leader shall introduce 
                (by request) the President's draft bill to rescind the 
                amounts of budget authority or items of direct 
                spending, as specified in the special message and the 
                President's draft bill. If the bill is not introduced 
                as provided in the preceding sentence in either House, 
                then, on the third day of session of that House after 
                the date of receipt of that special message, any Member 
                of that House may introduce the bill.
                    ``(B) Referral and reporting.--
                            ``(i) One committee.--The bill shall be 
                        referred by the presiding officer to the 
                        appropriate committee. The committee shall 
                        report the bill without any revision and with a 
                        favorable, an unfavorable, or without 
                        recommendation, not later than the fifth day of 
                        session of that House after the date of 
                        introduction of the bill in that House. If the 
                        committee fails to report the bill within that 
                        period, the committee shall be automatically 
                        discharged from consideration of the bill, and 
                        the bill shall be placed on the appropriate 
                        calendar.
                            ``(ii) Multiple committees.--
                                    ``(I) Referrals.--If a bill 
                                contains provisions in the jurisdiction 
                                of more than 1 committee, the bill 
                                shall be jointly referred to the 
                                committees of jurisdiction and the 
                                Committee on the Budget.
                                    ``(II) Views of committee.--Any 
                                committee, other than the Committee on 
                                the Budget, to which a bill is referred 
                                under this clause may submit a 
                                favorable, an unfavorable 
                                recommendation, without recommendation 
                                with respect to the bill to the 
                                Committee on the Budget prior to the 
                                reporting or discharge of the bill.
                                    ``(III) Reporting.--The Committee 
                                on the Budget shall report the bill not 
                                later than the fifth day of session of 
                                that House after the date of 
                                introduction of the bill in that House, 
                                without any revision and with a 
                                favorable or unfavorable 
                                recommendation, or without 
                                recommendation, together with the 
                                recommendations of any committee to 
                                which the bill has been referred.
                                    ``(IV) Discharge.--If the Committee 
                                on the Budget fails to report the bill 
                                within that period, the committee shall 
                                be automatically discharged from 
                                consideration of the bill, and the bill 
                                shall be placed on the appropriate 
                                calendar.
                    ``(C) Final passage.--A vote on final passage of 
                the bill shall be taken in the Senate and the House of 
                Representatives on or before the close of the 10th day 
                of session of that House after the date of the 
                introduction of the bill in that House. If the bill is 
                passed, the Clerk of the House of Representatives shall 
                cause the bill to be transmitted to the Senate before 
                the close of the next day of session of the House.
            ``(2) Consideration in the house of representatives.--
                    ``(A) Motion to proceed to consideration.--A motion 
                in the House of Representatives to proceed to the 
                consideration of a bill under this subsection shall be 
                highly privileged and not debatable. An amendment to 
                the motion shall not be in order, nor shall it be in 
                order to move to reconsider the vote by which the 
                motion is agreed to or disagreed to.
                    ``(B) Limits on debate.--Debate in the House of 
                Representatives on a bill under this subsection shall 
                not exceed 4 hours, which shall be divided equally 
                between those favoring and those opposing the bill. A 
                motion further to limit debate shall not be debatable. 
                It shall not be in order to move to recommit a bill 
                under this subsection or to move to reconsider the vote 
                by which the bill is agreed to or disagreed to.
                    ``(C) Appeals.--Appeals from decisions of the chair 
                relating to the application of the Rules of the House 
                of Representatives to the procedure relating to a bill 
                under this section shall be decided without debate.
                    ``(D) Application of house rules.--Except to the 
                extent specifically provided in this section, 
                consideration of a bill under this section shall be 
                governed by the Rules of the House of Representatives. 
                It shall not be in order in the House of 
                Representatives to consider any bill introduced 
                pursuant to the provisions of this section under a 
                suspension of the rules or under a special rule.
            ``(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. A 
                motion to proceed to consideration of the bill may be 
                made even though a previous motion to the same effect 
                has been disagreed to. 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, shall not exceed a 
                total of 10 hours, equally divided and controlled in 
                the usual form.
                    ``(C) Debatable motions and 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 from the time allotted for debate, 
                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 bill.--
                            ``(i) In general.--If the Senate has 
                        received the House companion bill to the bill 
                        introduced in the Senate prior to the vote 
                        required under paragraph (1)(C), then the 
                        Senate shall consider, and the vote under 
                        paragraph (1)(C) shall occur on, the House 
                        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, the Senate bill shall be held pending 
                        receipt of the House message on the bill. Upon 
                        receipt of the House companion bill, the House 
                        bill shall be deemed to be considered, read for 
                        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.
    ``(d) Amendments and Divisions Prohibited.--
            ``(1) In general.--No amendment to a bill considered under 
        this section shall be in order in either the Senate or the 
        House of Representatives.
            ``(2) No division.--It shall not be in order to demand a 
        division of the question in the House of Representatives (or in 
        a Committee of the Whole).
            ``(3) No suspension.--No motion to suspend the application 
        of this subsection shall be in order in the House of 
        Representatives, nor shall it be in order in either the House 
        of Representatives or the Senate to suspend the application of 
        this subsection by unanimous consent.
    ``(e) Temporary Presidential Authority to Withhold.--
            ``(1) Availability.--The President may not withhold any 
        dollar amount of discretionary budget authority until the 
        President transmits and Congress receives a special message 
        pursuant to subsection (b). Upon receipt by Congress of a 
        special message pursuant to subsection (b), the President may 
        direct that any dollar amount of discretionary budget authority 
        proposed to be rescinded in that special message shall be 
        withheld from obligation for a period not to exceed 45 calendar 
        days from the date of receipt by Congress.
            ``(2) Early availability.--The President may make any 
        dollar amount of discretionary budget authority withheld from 
        obligation pursuant to paragraph (1) available at an earlier 
        time if the President determines that continued withholding 
        would not further the purposes of this title.
    ``(f) Temporary Presidential Authority to Suspend.--
            ``(1) Suspend.--The President may not suspend the execution 
        of any item of direct spending until the President transmits 
        and Congress receives a special message pursuant to subsection 
        (b). Upon receipt by Congress of a special message, the 
        President may suspend the execution of any item of direct 
        spending proposed to be rescinded in that message for a period 
        not to exceed 45 calendar days from the date of receipt by 
        Congress.
            ``(2) Early availability.--The President may terminate the 
        suspension of any item of direct spending suspended pursuant to 
        paragraph (1) at an earlier time if the President determines 
        that continuation of the suspension would not further the 
        purposes of this title.
    ``(g) Definitions.--In this section:
            ``(1) Appropriation law.--The term `appropriation law' 
        means any general or special appropriation Act, and any Act or 
        joint resolution making supplemental, deficiency, or continuing 
        appropriations.
            ``(2) Calendar day.--The term `calendar day' means a 
        standard 24-hour period beginning at midnight.
            ``(3) Days of session.--The term `days of session' means 
        only those days on which both Houses of Congress are in 
        session.
            ``(4) Dollar amount of discretionary budget authority.--The 
        term `dollar amount of discretionary budget authority' means 
        the dollar amount of budget authority and obligation 
        limitations--
                    ``(A) specified in an appropriation law, or the 
                dollar amount of budget authority required to be 
                allocated by a specific proviso in an appropriation law 
                for which a specific dollar figure was not included;
                    ``(B) represented separately in any table, chart, 
                or explanatory text included in the statement of 
                managers or the governing committee report accompanying 
                such law;
                    ``(C) required to be allocated for a specific 
                program, project, or activity in a law (other than an 
                appropriation law) that mandates obligations from or 
                within accounts, programs, projects, or activities for 
                which budget authority or an obligation limitation is 
                provided in an appropriation law;
                    ``(D) 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
                    ``(E) 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 obligations from 
                accounts, programs, projects, or activities for which 
                dollar amount of discretionary budget authority or an 
                obligation limitation is provided in an appropriation 
                law.
            ``(5) Rescind or rescission.--The term `rescind' or 
        `rescission' means--
                    ``(A) in the case of a dollar amount of 
                discretionary budget authority, to reduce or repeal a 
                provision of law to prevent that budget authority or 
                obligation limitation from having legal force or 
                effect; and
                    ``(B) in the case of direct spending, to repeal a 
                provision of law in order to prevent the specific legal 
                obligation of the United States from having legal force 
                or effect.
            ``(6) Direct spending.--The term `direct spending' means 
        budget authority provided by law (other than an appropriation 
        law), mandatory spending provided in appropriation Acts, and 
        entitlement authority.
            ``(7) Item of direct spending.--The term `item of direct 
        spending' means any specific provision of law enacted after the 
        effective date of the Legislative Line Item Reduction Act of 
        2011 that is estimated to result in an increase in budget 
        authority or outlays for direct spending relative to the most 
        recent levels calculated consistent with the methodology 
        described in 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, with respect to estimates made after that budget 
        submission that are not included with it, estimates consistent 
        with the economic and technical assumptions underlying the most 
        recently submitted President's budget.
            ``(8) Suspend the execution.--The term `suspend the 
        execution' means, with respect to an item of direct spending, 
        to stop the carrying into effect of the specific provision of 
        law that provides such benefit.''.
    (b) 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 ``and 1017'' and 
        inserting ``1017, and 1021''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``sections 1017 and 1021''.
    (c) Clerical Amendments.--
            (1) Short title.--Section 1(a) of the Congressional Budget 
        and Impoundment Control Act of 1974 is amended by--
                    (A) striking ``Parts A and B'' before ``title X'' 
                and inserting ``Parts A, B, and C''; and
                    (B) striking the last sentence and inserting at the 
                end the following new sentence: ``Part C of title X 
                also may be cited as the `Legislative Line Item 
                Reduction Act of 2011'''.
            (2) 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 
        part C of title X and inserting the following:

                  ``Part C--Legislative Line Item Veto

``Sec. 1021. Expedited consideration of certain proposed 
                            rescissions.''.
    (d) Effective Date and Expiration.--
            (1) Effective date.--The amendments made by this Act 
        shall--
                    (A) take effect on the date of enactment of this 
                Act; and
                    (B) apply to any dollar amount of discretionary 
                budget authority, item of direct spending, or targeted 
                tax benefit provided in an Act enacted on or after 
                September 1, 2011.
            (2) Expiration.--The amendments made by this Act shall 
        expire on December 31, 2015.

               TITLE IV--PERMANENT CONTINUING RESOLUTION

SEC. 401. AUTOMATIC CONTINUING APPROPRIATIONS.

    (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 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, 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) 90 percent of 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, 90 percent of the rate 
        of operations provided for such project or activity pursuant to 
        a joint resolution making continuing appropriations for such 
        preceding fiscal year;
            ``(C) 90 percent of 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) 90 percent of 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.
            ``(2) Commerce, Justice, Science, and Related Agencies.
            ``(3) Department of Defense.
            ``(4) Energy and Water Development.
            ``(5) Financial Services and General Government.
            ``(6) Department of Homeland Security.
            ``(7) Department of the Interior, Environment, and Related 
        Agencies.
            ``(8) Departments of Labor, Health and Human Services, 
        Education, and Related Agencies.
            ``(9) Legislative Branch.
            ``(10) Military Construction, Veterans' Affairs, and 
        Related Agencies.
            ``(11) Department of State, Foreign Operations, and Related 
        Programs.
            ``(12) Transportation, Housing and Urban Development, and 
        Related Agencies.''.
    (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.''.

                         TITLE V--TRANSPARENCY

SEC. 501. INCLUSION IN ANNUAL SOCIAL SECURITY ACCOUNT STATEMENT OF 
              ESTIMATED PRESENT VALUE OF TAXES AND BENEFITS FOR SOCIAL 
              SECURITY AND MEDICARE AND PROJECTED DEFICIT AS A PERCENT 
              OF LIFETIME EARNINGS.

    (a) In General.--Section 1143(a)(2) of the Social Security Act (42 
U.S.C. 1320b-13(a)(2)) is amended--
            (1) in subparagraph (E), by striking ``benefits.'' and 
        inserting ``benefits;''; and
            (2) by adding after subparagraph (E) the following new 
        subparagraphs:
            ``(F) an estimate, as determined by the Commissioner, in 
        consultation with the Secretary of Health and Human Services, 
        on the basis of available records of the Commissioner and 
        projections based on reasonable assumptions, of--
                    ``(i) the present value of potential lifetime 
                aggregate employer, employee, and self-employment 
                contributions of the eligible individual for old-age, 
                survivors, and disability insurance (under title II) 
                and for hospital insurance (under part A of title 
                XVIII);
                    ``(ii) the present value of potential lifetime 
                premiums payable (under parts B and D of title XVIII); 
                and
                    ``(iii) the present value of potential lifetime 
                aggregate retirement, disability, survivor, and 
                auxiliary benefits payable on the eligible individual's 
                account under title II and per capita benefits payable 
                under the Medicare program of title XVIII; and
            ``(G) an estimate, as determined by the Commissioner, in 
        consultation with the Secretary of Health and Human Services, 
        on the basis of available records of the Commissioner and 
        projections based on reasonable assumptions, of the ratio 
        (expressed as a percentage) of--
                    ``(i) the sum of the projected deficit-financed 
                benefits under the old-age, survivors, and disability 
                insurance program with respect to the eligible 
                individual and the projected deficit-financed benefits 
                under part A of the Medicare program under title XVIII 
                with respect to the eligible individual, to
                    ``(ii) projected lifetime earnings of the eligible 
                individual.''.
    (b) Definitions.--Section 1143(a) of such Act (42 U.S.C. 1320b-
13(a)) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
    ``(3) For purposes of paragraph (2)(G)--
            ``(A) The term `projected deficit-financed benefits' 
        means--
                    ``(i) with respect to an eligible individual in 
                connection with the old-age, survivors, and disability 
                insurance program, the product of--
                            ``(I) the benefits described in 
                        subparagraph (F)(ii) of such individual under 
                        such program, and
                            ``(II) the ratio of future annual deficits, 
                        excluding interest, of the Federal Old-Age and 
                        Survivors Insurance Trust Fund and the Federal 
                        Disability Insurance Trust Fund over the 
                        eligible individual's lifetime to future annual 
                        outlays from such Trust Funds over such 
                        lifetime; and
                    ``(ii) with respect to an eligible individual in 
                connection with the Medicare program under title XVIII, 
                the product of--
                            ``(I) the benefits for hospital insurance 
                        (under part A of title XVIII) described in 
                        subparagraph (F)(ii) of such individual under 
                        such program, and
                            ``(II) the ratio of future annual deficits 
                        of the Federal Hospital Insurance Trust Fund 
                        over the eligible individual's lifetime to 
                        future annual outlays from such Trust Fund over 
                        such lifetime.
            ``(B) The term `projected lifetime earnings' of the 
        eligible individual means the present value of the potential 
        total wages paid to, and self-employment income derived by, the 
        eligible individual over the eligible individual's lifetime, as 
        determined without regard to the contribution and benefit base 
        under section 230.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to annual statements issued after 2012.

                         TITLE VI--DEBT IMPACT

SEC. 601. CBO SPENDING AND REVENUE ESTIMATES.

    Paragraph (1) of section 402 the Congressional Budget Act of 1974 
is amended by inserting after the comma the following: ``and of the 
effect on interest and on the Federal debt,''.

                       TITLE VII--FEDERAL SUNSET

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Federal Sunset Act of 2011''.

SEC. 702. REVIEW AND ABOLISHMENT OF FEDERAL AGENCIES.

    (a) Schedule for Review.--Not later than one year after the date of 
the enactment of this title, the Federal Agency Sunset Commission 
established under section 703 shall submit to Congress a schedule for 
review by the Commission of each agency that lists the date of 
abolishment for each agency. Such date of abolishment shall occur at 
least once every 12 years (or less, if determined appropriate by 
Congress).
    (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 be reviewed and 
        abolished according to the schedule created pursuant to this 
        section and approved under section 709, unless the agency is 
        reauthorized by the Congress.
            (2) Extension.--The date of abolishment for an agency may 
        be extended for an additional two years if the Congress enacts 
        legislation extending such date by a vote of a supermajority of 
        the House of Representatives and the Senate.

SEC. 703. 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 title 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, one of whom may include 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, one of whom may include 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) Appointed by the speaker of the house of 
                representatives.--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) Appointed by the majority leader of the 
                senate.--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) Individual described.--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 two 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 2-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) In general.--Each member appointed to the Commission 
        shall serve for a term of six years, except that, of the 
        members first appointed under paragraphs (1) and (2) of 
        subsection (b), two members shall be appointed to serve a term 
        of three years under each such paragraph.
            (2) Term limit.--
                    (A) Member of congress.--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) Not a member of congress.--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.
            (3) Vacancies.--Any member appointed to fill a vacancy 
        occurring before the expiration of the term for which the 
        member's predecessor was appointed shall be appointed only for 
        the remainder of that term. A member may serve after the 
        expiration of that member's term until a successor has taken 
        office. A vacancy in the Commission shall be filled in the 
        manner in which the original appointment was made.
    (g) Powers of Commission.--
            (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this title, 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 agency information necessary to enable it to 
        carry out its duties under this title. Upon request of the 
        Chairman, the head of that agency shall furnish that 
        information to the Commission in a full and timely manner.
            (3) Subpoena power.--
                    (A) Authority to issue subpoena.--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) Compliance with subpoena.--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 6101 of title 41, United 
        States Code (relating to advertising requirement for Federal 
        Government purchases and sales).
    (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.
            (3) Voting.--The schedule for review submitted pursuant to 
        section 702(a) and the report and draft of legislation 
        submitted pursuant to section 704 shall have the approval of 
        not less than 7 of the 12 members of the Commission.
    (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 applicable provisions under subchapter I of 
        chapter 57 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 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 agencies.
            (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 title.
            (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, 2036, unless reauthorized by Congress.

SEC. 704. 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 705.
    (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 702;
            (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 702; 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 General Accountability Office, the 
        Office of Management and Budget, the Comptroller General, 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 709 in reviewing the efficiency and 
public need for each agency under subsection (a).

SEC. 705. CRITERIA FOR REVIEW.

    The Commission shall evaluate the efficiency and public need for 
each agency pursuant to section 704 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 
        applicable provisions contained in the sections 1115, 1116, 
        1117, 1120, 1121, 1122, 1123, 1124, 1125, and the first 9703 of 
        title 31, United States Code, section 306 of title 5, United 
        States Code, and chapter 28 of title 39, United States Code.
            (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 decisionmaking 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 equal 
        employment opportunity requirements regarding equal employment 
        opportunity.
            (15) The extent of the regulatory, privacy, and paperwork 
        impacts of the programs carried out by the agency.
            (16) The extent to which the agency has coordinated with 
        State and local governments in performing the functions of the 
        agency.
            (17) The potential effects of abolishing the agency on 
        State and local governments.
            (18) 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. 706. OVERSIGHT BY COMMISSION.

    (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 would establish--
                    (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. 707. DISPOSITION OF AGENCY AFFAIRS.

    The President, in consultation with the head of an agency 
determined to be abolished pursuant to section 702(c), may take such 
action as may be necessary to wind down the operation of such agency 
during the two-year period following the date of abolishment for each 
such agency.

SEC. 708. 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 title 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 title. 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 title 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.
            (11) Any other information the Commission determines to be 
        necessary.
    (d) Budget Authority.--The report also shall set forth for each 
program whether the new budget authority provided for such program 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 2012 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 General Accountability 
Office, the Congressional Research Service, and the Congressional 
Budget Office shall permit the mutual exchange of available information 
in their possession which would aid in the compilation of the program 
inventory.
    (g) Assistance by Executive Branch.--The Office of Management and 
Budget and the agencies (and the subdivisions thereof) shall, to the 
extent necessary and possible, provide the General Accountability 
Office with assistance requested by the Comptroller General in the 
compilation of the program inventory.

SEC. 709. EXPEDITED CONSIDERATION OF SCHEDULE FOR REVIEW.

    (a) Introduction and Committee Consideration.--
            (1) Introduction.--The Commission schedule for review bill 
        shall be introduced in the Senate by the majority leader, or 
        the majority leader's designee, and in the House of 
        Representatives, by the Speaker, or the Speaker's designee. 
        Upon such introduction, the Commission schedule for review bill 
        shall be referred to the appropriate committees of Congress 
        under paragraph (2). If the Commission schedule for review bill 
        is not introduced in accordance with the preceding sentence, 
        then any member of Congress may introduce such bill in their 
        respective House of Congress beginning on the date that is the 
        5th calendar day that such House is in session following the 
        date of the submission of such aggregate legislative language 
        provisions.
            (2) Committee consideration.--
                    (A) Referral.--A Commission schedule for review 
                bill introduced under paragraph (1) shall be referred 
                to any appropriate committee of jurisdiction in the 
                Senate and the House of Representatives. A committee to 
                which a Commission schedule for review bill is referred 
                under this paragraph may review and comment on such 
                bill, may report such bill to the respective House, and 
                may not amend such bill.
                    (B) Reporting.--Not later than 30 calendar days 
                after the introduction of the Commission schedule for 
                review bill, each Committee of Congress to which the 
                Commission schedule for review bill was referred shall 
                report the bill.
                    (C) Discharge of committee.--If a committee to 
                which is referred a Commission schedule for review bill 
                has not reported such bill at the end of 30 calendar 
                days after its introduction or at the end of the first 
                day after there has been reported to the House involved 
                a Commission schedule for review bill, whichever is 
                earlier, such committee shall be deemed to be 
                discharged from further consideration of such bill, and 
                such bill shall be placed on the appropriate calendar 
                of the House involved.
    (b) Expedited Procedure.--
            (1) Consideration.--
                    (A) In general.--Not later than 5 calendar days 
                after the date on which a committee has reported a 
                Commission schedule for review bill or been discharged 
                from consideration of a Commission schedule for review 
                bill, the majority leader of the Senate, or the 
                majority leader's designee, or the Speaker of the House 
                of Representatives, or the Speaker's designee, shall 
                move to proceed to the consideration of the Commission 
                schedule for review bill. It shall also be in order for 
                any member of the Senate or the House of 
                Representatives, respectively, to move to proceed to 
                the consideration of the Commission schedule for review 
                bill at any time after the conclusion of such 5-day 
                period.
                    (B) Motion to proceed.--A motion to proceed to the 
                consideration of a Commission schedule for review bill 
                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 consideration of the Commission schedule 
                for review bill. If the motion to proceed is agreed to, 
                the Senate or the House of Representatives, as the case 
                may be, shall immediately proceed to consideration of 
                the Commission schedule for review bill without 
                intervening motion, order, or other business, and the 
                Commission schedule for review bill shall remain the 
                unfinished business of the Senate or the House of 
                Representatives, as the case may be, until disposed of.
                    (C) Limited debate.--Debate on the Commission 
                schedule for review 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 
                Commission schedule for review bill. A motion further 
                to limit debate on the Commission schedule for review 
                bill is in order and is not debatable. All time used 
                for consideration of the Commission schedule for review 
                bill, including time used for quorum calls (except 
                quorum calls immediately preceding a vote) and voting, 
                shall come from the 10 hours of debate.
                    (D) Amendments.--No amendment to the Commission 
                schedule for review bill shall be in order in the 
                Senate and the House of Representatives.
                    (E) Vote on final passage.--Immediately following 
                the conclusion of the debate on the Commission schedule 
                for review bill, the vote on final passage of the 
                Commission schedule for review bill shall occur.
                    (F) Other motions not in order.--A motion to 
                postpone consideration of the Commission schedule for 
                review bill, a motion to proceed to the consideration 
                of other business, or a motion to recommit the 
                Commission schedule for review bill is not in order. A 
                motion to reconsider the vote by which the Commission 
                schedule for review bill is agreed to or not agreed to 
                is not in order.
            (2) Consideration by other house.--If, before the passage 
        by one House of the Commission schedule for review bill that 
        was introduced in such House, such House receives from the 
        other House a Commission schedule for review bill as passed by 
        such other House--
                    (A) the Commission schedule for review bill of the 
                other House shall not be referred to a committee and 
                may only be considered for final passage in the House 
                that receives it under subparagraph (C);
                    (B) the procedure in the House in receipt of the 
                Commission schedule for review bill of the other House, 
                shall be the same as if no Commission schedule for 
                review bill had been received from the other House; and
                    (C) notwithstanding subparagraph (B), the vote on 
                final passage shall be on the Commission schedule for 
                review bill of the other House.
            (3) Disposition.--Upon disposition of a Commission schedule 
        for review bill that is received by one House from the other 
        House, it shall no longer be in order to consider the 
        Commission schedule for review bill that was introduced in the 
        receiving House.
    (c) Rules of the Senate and the House of Representatives.--This 
section is enacted--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and is deemed 
        to be 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 a Commission schedule for review 
        bill, 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 they relate 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. 710. DEFINITIONS.

    In this title:
            (1) Agency.--The term ``agency'' has the meaning given the 
        term Executive agency in section 105 of title 5, United States 
        Code, except that such term includes an advisory committee as 
        that term is defined in section 3 of the Federal Advisory 
        Committee Act (5 U.S.C. App.).
            (2) Calendar day.--The term ``calendar day'' means a 
        calendar day other than one on which either House is not in 
        session because of an adjournment of more than 3 days to a date 
        certain.
            (3) Commission.--The term ``Commission'' means the Federal 
        Agency Sunset Commission established under section 703.
            (4) Commission schedule for review bill.--The term 
        ``Commission schedule for review bill'' means only a bill that 
        is introduced as provided under section 709, and contains the 
        schedule for review submitted pursuant to section 702(a), 
        without modification.
            (5) Supermajority.--The term ``supermajority'' means an 
        affirmative vote of two-thirds of the Members, duly chosen and 
        sworn.

SEC. 711. OFFSET OF AMOUNTS APPROPRIATED.

    Amounts appropriated to carry out this title shall be offset by a 
reduction in amounts appropriated to carry out programs of other 
agencies.

                        TITLE VIII--SEVERABILITY

SEC. 801. SEVERABILITY.

    In the event that any provision of this Act shall, for any reason, 
be held to be invalid or unenforceable in any respect, such invalidity 
or unenforceability shall not affect any other provision of this Act, 
and this Act shall be construed as if the invalid or unenforceable 
provision had never been included in this Act.
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