[House Prints 110-3]
[From the U.S. Government Publishing Office]




                           [COMMITTEE PRINT]
 
                     COMPILATION OF LAWS AND RULES

                     RELATING TO THE CONGRESSIONAL

                             BUDGET PROCESS



                  AS AMENDED THROUGH NOVEMBER 30, 2008

                               ----------                              

                        COMMITTEE ON THE BUDGET
                     U.S. HOUSE OF REPRESENTATIVES






           Printed for the use of the Committee on the Budget




  COMPILATION OF LAWS AND RULES RELATING TO THE CONGRESSIONAL BUDGET 
                                PROCESS


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                           [COMMITTEE PRINT]

                     COMPILATION OF LAWS AND RULES
                     RELATING TO THE CONGRESSIONAL
                             BUDGET PROCESS



                  AS AMENDED THROUGH NOVEMBER 30, 2008

                               __________

                        COMMITTEE ON THE BUDGET
                     U.S. HOUSE OF REPRESENTATIVES


         

                             NOVEMBER 2008

                            Serial No. CP-3

           Printed for the use of the Committee on the Budget
                               ------
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                        COMMITTEE ON THE BUDGET

             JOHN M. SPRATT, Jr., South Carolina, Chairman
ROSA L. DeLAURO, Connecticut,        PAUL RYAN, Wisconsin,
CHET EDWARDS, Texas                    Ranking Minority Member
JIM COOPER, Tennessee                J. GRESHAM BARRETT, South Carolina
THOMAS H. ALLEN, Maine               JO BONNER, Alabama
ALLYSON Y. SCHWARTZ, Pennsylvania    SCOTT GARRETT, New Jersey
MARCY KAPTUR, Ohio                   MARIO DIAZ-BALART, Florida
XAVIER BECERRA, California           JEB HENSARLING, Texas
LLOYD DOGGETT, Texas                 DANIEL E. LUNGREN, California
EARL BLUMENAUER, Oregon              MICHAEL K. SIMPSON, Idaho
MARION BERRY, Arkansas               PATRICK T. McHENRY, North Carolina
ALLEN BOYD, Florida                  CONNIE MACK, Florida
JAMES P. McGOVERN, Massachusetts     K. MICHAEL CONAWAY, Texas
NIKI TSONGAS, Massachusetts          JOHN CAMPBELL, California
ROBERT E. ANDREWS, New Jersey        PATRICK J. TIBERI, Ohio
ROBERT C. ``BOBBY'' SCOTT, Virginia  JON C. PORTER, Nevada
BOB ETHERIDGE, North Carolina        RODNEY ALEXANDER, Louisiana
DARLENE HOOLEY, Oregon               ADRIAN SMITH, Nebraska
BRIAN BAIRD, Washington              JIM JORDAN, Ohio
DENNIS MOORE, Kansas
TIMOTHY H. BISHOP, New York
GWEN MOORE, Wisconsin

                           Professional Staff

            Thomas S. Kahn, Staff Director and Chief Counsel
                 Austin Smythe, Minority Staff Director

                              Prepared by

             Lisa Irving Venus, Committee on the Budget and
           Robert F. Weinhagen, Office of Legislative Counsel







                       INTRODUCTION AND OVERVIEW

                              ----------                              


    The congressional budget process is a framework of laws and 
rules that govern the consideration, adoption, and enforcement 
of spending, revenue, and debt limit legislation each year. 
This compilation includes those laws and rules in addition to 
other information relevant to federal budgeting.

              Statutes on the Congressional Budget Process

                THE CONGRESSIONAL BUDGET AND IMPOUNDMENT
                          CONTROL ACT OF 1974

    The Congressional Budget and Impoundment Control Act of 
1974 (CBA and ICA) (Public Law 93-344; 2 U.S.C. 621 et seq.) is 
the law that set the foundation for the current congressional 
budget process. The CBA established the Committees on the 
Budget in the House and Senate and the Congressional Budget 
Office and outlined their functions and duties. The CBA 
established requirements for adopting concurrent resolutions on 
the budget and the optional reconciliation process. The ICA 
also added impoundment control provisions.
    The CBA and ICA have been amended several times. Some 
amendments, however, are non-operative. For example, certain 
enforcement provisions of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (BBEDCA), as amended by the Budget 
Enforcement Act of 1990 (BEA), have expired and the United 
States Supreme Court has ruled the Line Item Veto Act 
unconstitutional. Nevertheless, for historical and informative 
purposes, the full text of such legislation can be found in the 
Appendix of this compilation.
    Definitions found in BBEDCA as amended by the BEA are 
included in the main text of this compilation since those 
definitions remain useful for practical purposes.
    The amendments to the CBA are outlined below in order of 
enactment.
Balanced Budget and Emergency Deficit Control Act
    The Balanced Budget and Emergency Deficit Control Act of 
1985 (BBEDCA), also known as the Gramm-Rudman-Hollings Act, was 
enacted as title II of Public Law 99-177 (2 U.S.C. 900 et 
seq.), which originated as a bill increasing the statutory debt 
limit. BBEDCA included several significant budget process 
changes including: the requirement of one only budget 
resolution each year (rather than two), the requirement that 
budget resolution reports include committee allocations of 
spending, and points of order to enforce budget levels in an 
adopted budget resolution.
    BBEDCA notably established deficit targets for fiscal years 
1985 through 1990 and sequestration procedures to enforce those 
targets. The enforcement provisions were revised pursuant to 
the Balanced Budget and Emergency Deficit Control Reaffirmation 
Act of 1987 following the ruling in Bowsher v. Synar (478 U.S. 
714) (1986) which found some aspects unconstitutional. However, 
in 1990, Congress effectively replaced deficit-target 
enforcement by adopting discretionary spending limits and Pay-
As-You-Go rules pursuant to the Budget Enforcement Act of 1990.
The Budget Enforcement Act of 1990
    The Budget Enforcement Act of 1990 (BEA) was enacted as 
title XIII of the Omnibus Budget Reconciliation Act of 1990 
(Public Law 101-508). The BEA added new points of order and 
procedures to the budget process which are included in this 
compilation, such as freestanding provisions on the off-budget 
status of Social Security and a five-year budget requirement 
under the CBA. It also incorporated a modified version of the 
Senate's reconciliation rule on extraneous matter (Byrd Rule) 
into the CBA.
    The BEA also established Pay-As-You-Go (PAYGO) procedures, 
which required that direct spending increases and revenue 
decreases be offset with either direct spending decreases or 
revenue increases. In addition, the BEA established 
discretionary spending limits, which placed caps on 
appropriations. These provisions replaced the deficit-target 
procedures of BBEDCA. BEA enforcement was extended twice--first 
under title XIV of the Omnibus Reconciliation Act of 1993 
(Public Law 103-66) and last under title X of the Balanced 
Budget Act of 1997 (Public Law 105-33)--before ultimately 
terminating in 2002.
The Unfunded Mandates Reform Act of 1995
    The Unfunded Mandates Reform Act of 1995 (Public Law 104-4) 
established procedures to consider federal unfunded mandates 
imposed on state and local governments (intergovernmental 
mandates) and the private sector. Sections of the Unfunded 
Mandates Reform Act are incorporated in title IV of the CBA. 
This compilation also includes several selected freestanding 
provisions of the Unfunded Mandates Reform Act.
The Line Item Veto Act
    The Line Item Veto Act (Public Law 104-130) established 
procedures to allow the President to cancel specific budgetary 
provisions in laws signed by the President. The United States 
Supreme Court ruled the Line Item Veto Act unconstitutional in 
Clinton, et al. v. City of New York, et al., 118 S.Ct. 2091 
(1998). The Line Item Veto Act has not been repealed and 
therefore the law is included in the Appendix of this 
compilation.

                 REQUIREMENTS OF THE PRESIDENT'S BUDGET

    Title 31 of the United States Code (Money and Finance) was 
enacted on September 13, 1982; a principal component of this 
title stems from the Budget and Accounting Act of 1921, as 
amended, which established the executive budget process. 
Chapter 11 of this title sets forth submission requirements for 
the President's budget. Selected provisions of chapter 11 of 
title 31 are included in this compilation.

SELECTED PROVISIONS OF THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

    The Emergency Economic Stabilization Act of 2008 (EESA) 
(Public Law 110-343) provides for the purchase of troubled 
mortgage-related assets by the federal government pursuant to 
the Troubled Assets Relief Program (TARP). EESA includes 
several budget-related provisions, such as providing that 
activities conducted under TARP be scored under the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et. seq.) modified to 
use a risk-adjusted discount rate. It also includes a 
requirement that the Office of Management and Budget submit a 
proposal 5 years after enactment of the Act enabling Congress 
to recoup from the financial industry any losses to taxpayers 
and reporting requirements for the Office of Management and 
Budget and the Congressional Budget Office related to the Act.

          Budget Process Rules of the House of Representatives
                             and the Senate

        HOUSE RULES OF THE 110TH CONGRESS ON BUDGET ENFORCEMENT

    At the beginning of 2007, the House of Representatives 
instituted several new provisions governing the consideration 
of budgetary legislation as part of H. Res. 6 (110th Congress). 
These provisions, which are reflected in House rule XXI and 
included in this compilation, consist of a Pay-As-You-Go rule 
which requires that mandatory spending increases and revenue 
decreases be offset, and a rule prohibiting reconciliation 
directives from increasing a deficit or decreasing a surplus. 
These rules were adopted in addition to standard House rules on 
budget process such as requirements that committees submit 
their views and estimates to the Committee on the Budget, 
requirements of budgetary information and cost estimates for 
committee reports, consideration of amendments to the 
concurrent resolution on the budget, and jurisdiction of the 
Committee on the Budget.

SELECTED HOUSE AND SENATE BUDGETARY PROVISIONS IN S. CON. RES. 21, THE 
FISCAL YEAR 2008 BUDGET RESOLUTION AND S. CON. RES. 70, THE FISCAL YEAR 
                         2009 BUDGET RESOLUTION

    The Senate and House of Representatives also established 
several budget process rules as part of the budget resolutions 
for fiscal years 2008 and 2009. For example, under S. Con. Res. 
21, the fiscal year 2008 budget resolution, the Senate adopted 
PAYGO and reconciliation rules similar to those adopted by the 
House of Representatives under H. Res. 6 (110th Congress). The 
Senate also established rules on short- and long-term deficits 
in S. Con. Res. 70, the fiscal year 2009 budget resolution.

              JURISDICTION OF THE COMMITTEES ON THE BUDGET

    The jurisdictions of the Committees on the Budget for the 
House of Representatives and the Senate are established under 
congressional rules and, also in the Senate, pursuant to a long 
standing agreement and a resolution adopted during the 108th 
Congress.

                                Appendix

    The Appendix of this compilation includes additional 
resources useful in understanding the congressional budget 
process.

         SELECTED PROVISIONS OF THE UNITED STATES CONSTITUTION

    The Constitution of the United States is the fundamental 
law of the nation. Several provisions in the Constitution 
establish the ``power of the purse,'' which grants Congress 
authority to raise and spend money. The Constitution also 
includes a provision requiring that revenue measures originate 
in the House of Representatives rather than the Senate.

                        SCOREKEEPING GUIDELINES

    The Congressional Budget Office, the Office of Management 
and Budget, and the House and Senate Budget Committees follow 
specific rules for determining the budgetary impact of 
legislation known as scorekeeping guidelines. These guidelines 
are reviewed regularly but are only changed if Congress and the 
Administration are in agreement on proposed changes.

                         ADVANCE APPROPRIATIONS

    In recent years, the concurrent resolution on the budget 
has included limits on the amounts and uses of advance 
appropriations. The Appendix includes an overview of these 
limits.

                 LAWS INCLUDED FOR HISTORICAL PURPOSES

    The Appendix includes expired enforcement provisions of the 
Balanced Budget and Emergency Control Act of 1985, as amended 
by the Budget Enforcement Act of 1990, for historical purposes. 
The Appendix also includes the Line Item Veto Act which, 
although ruled unconstitutional by the United States Supreme 
Court, has yet to be repealed.


                            C O N T E N T S

                               __________
                                                                   Page
Congressional Budget and Impoundment Control Act of 1974
    Sec. 1. Short titles; table of contents......................     3
    Sec. 2. Declaration of purposes..............................     5
    Sec. 3. Definitions..........................................     5
    Title II--Congressional Budget Office........................     7
    Title III--Congressional Budget Process......................    13
    Title IV--Additional Provisions to Improve Fiscal Procedures.    38
        Part A--General Provisions...............................    38
        Part B--Federal Mandates.................................    41
    Title V--Credit Reform.......................................    52
    Title VII--Program Review and Evaluation.....................    58
    Title VIII...................................................    59
    Title IX--Miscellaneous Provisions; Effective Dates..........    59
    Title X--Impoundment Control.................................    60
        Part A--General Provisions...............................    60
        Part B--Congressional Consideration of Proposed 
          Rescissions, Reservations, and Deferrals of Budget 
          Authority..............................................    61
        Part C--Line Item Veto...................................    68
Selected Provisions of the Balanced Budget and Emergency Deficit 
  Control Act of 1985 (Gramm-Rudman-Hollings)
    Sec. 250. Definitions........................................    71
    Sec. 257. The baseline.......................................    75
Freestanding Provisions of Subtitles C and E of the Budget 
  Enforcement Act of 1990
    Sec. 13301. Off-budget status of the OASDI trust funds.......    81
    Sec. 13302. Protection of OASDI trust funds in the House of 
      Representatives............................................    81
    Sec. 13305. Exercise of rulemaking power.....................    83
    Sec. 13306. Effective date...................................    83
    Sec. 13501. Financial safety and soundness of government-
      sponsored enterprises......................................    84
Selected Provisions of Chapter 11 of Title 31, United States Code
    Sec.  1105. Budget contents and submissions to Congress......    89
    Sec.  1106. Supplemental budget estimates and changes........    96
    Sec.  1109. Current programs and activities..................    97
Selected Provisions of the Unfunded Mandates Reform Act of 1995
    Sec. 103. Cost of regulations................................   101
    Sec. 105. Consideration for Federal funding..................   101
    Sec. 106. Impact on local governments........................   101
    Sec. 107. Enforcement in the House of Representatives........   102
    Sec. 201. Regulatory process.................................   103
    Sec. 202. Statements to accompany significant regulatory 
      actions....................................................   103
    Sec. 203. Small government agency plan.......................   104
    Sec. 204. State, local, and tribal government input..........   104
    Sec. 205. Least burdensome option or explanation required....   105
    Sec. 206. Assistance to the Congressional Budget Office......   105
    Sec. 207. Pilot program on small government flexibility......   105
    Sec. 208. Annual statements to Congress on agency compliance.   106
    Sec. 209. Effective date.....................................   106
    Sec. 304. Annual report to Congress regarding Federal court 
      rulings....................................................   106
    Sec. 305. Definition.........................................   106
    Sec. 401. Judicial review....................................   106
Selected Provisions of the Emergency Economic Stabilization Act 
  of 2008
    Sec. 123. Credit reform......................................   111
    Sec. 134. Recoupment.........................................   111
    Sec. 201. Information for congressional support agencies.....   111
    Sec. 202. Reports by the Office of Management and Budget and 
      the Congressional Budget Office............................   112
    Sec. 203. Analysis in President's budget.....................   112
    Sec. 204. Emergency treatment................................   113
House Rules of the 110th Congress on Budgetary Enforcement
    Rule X:
        Clause 2(d)(1). Oversight plans by standing committees to 
          include reviews of laws, programs, and agencies........   117
        Clause 4(f). Submission of views and estimates for the 
          concurrent resolution on the budget by standing 
          committees.............................................   117
        Clause 11(c)(3). Submission of views and estimates for 
          the concurrent resolution on the budget by the 
          Permanent Select Committee on Intelligence.............   118
    Rule XIII:
        Clause 3(c)(2) and (3). Budgetary information 
          requirements in committee reports......................   118
        Clause 3(d). Requirements of cost estimates and budgetary 
          comparisons in committee reports.......................   119
    Rule XVIII:
        Clause 10. Consideration of amendments to the concurrent 
          resolution on the budget...............................   119
    Rule XXI:
        Clause 2(e). Prohibition against designating non-
          emergency provisions as emergencies....................   120
        Clause 7. Prohibition against reconciliation directives 
          that increase a deficit or decrease a surplus..........   120
        Clause 8. Similar treatment of reported and unreported 
          measures under Title III of the Congressional Budget 
          Act....................................................   120
        Clause 10. Pay-as-you-go point of order..................   121
    Rule XXVIII:
        Statutory Limit on the Public Debt.......................   121
    H. Res. 6 (110th Congress)...................................   122
        Sec. 511 (a)(1), (2), and (3). Separate Orders...........   122
Selected Provisions in S. Con. Res. 21, the concurrent resolution 
  on budget for fiscal year 2008 (110th Congress)
    Sec. 201. Pay as you go point of order in the Senate.........   127
    Sec. 202. Point of order against reconciliation increasing 
      the deficit in the Senate..................................   128
    Sec. 204. Emergency legislation..............................   129
    Sec. 205. Point of order extensions in the Senate............   131

Selected Provisions in S. Con. Res. 70, the concurrent resolution 
  on budget for fiscal year 2009 (110th Congress)
    Sec. 301. Program integrity initiatives and other adjustments   135
    Sec. 302. Point of order against advance appropriations in 
      the House..................................................   137
    Sec. 311. Point of order against legislation increasing long-
      term deficits in the Senate................................   137
    Sec. 312. Discretionary spending limits, program integrity 
      initiatives, and other adjustments in the Senate...........   138
    Sec. 313. Point of order against advance appropriations in 
      the Senate.................................................   140
    Sec. 314. Point of order against appropriations legislation 
      that constitute changes in mandatory programs in the Senate   141
    Sec. 315. Point of order against legislation increasing 
      short-term deficits in the Senate..........................   143
    Sec. 321. Oversight of government performance................   143
    Sec. 322. Budgetary treatment of certain discretionary 
      administrative expenses....................................   143
    Sec. 323. Application and effect of changes in allocations 
      and aggregates.............................................   144
    Sec. 324. Adjustments to reflect changes in concepts and 
      definitions................................................   144
    Sec. 325. Exercise of rulemaking powers......................   144
Jurisdiction of the House Budget Committee
    Rule X:
        Clause 1(d)..............................................   147
        Clause 3(b)..............................................   147
        Clause 4(b)..............................................   147
Jurisdiction of the Senate Budget Committee
    Rule XXV:
        Clause (1)(e). Rules for Standing Committees.............   149
    Unanimous Consent Agreement of January 30, 1975 as modified..   149
    S. Res. 445 (108th Congress).................................   150
        Sections 101 (d) and (e).................................   150
Appendix
    Selected Provisions of the United States Constitution........   155
    Scorekeeping Guidelines of the Congressional Budget Office 
      and the Office of Management and Budget....................   156
    Advance Appropriations Summary...............................   162
    Balanced Budget and Emergency Deficit Control Act of 1985....   163
    Line211ATTORNEY: RFW/FD (June 18, 1999) deg. deg.
    

======================================================================


        CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974

             Public Law 93-344, July 12, 1974, 88 Stat. 297

======================================================================


Major Amendments:

Balanced Budget and Emergency Deficit Control Act of 1985; 
        Public Law 99-177, Title II, Part A; December 12, 1985; 
        99 Stat. 1037, 1039.

An Act increasing the statutory limit on the public debt; 
        Public Law 100-119, Title II; September 29, 1987; 101 
        Stat. 754, 784.

Budget Enforcement Act of 1990; Public Law 101-508, Title XIII, 
        Subtitle A, Part II, and Subtitle B; November 5, 1990; 
        104 Stat. 1388-573, 1388-602, 1388-609.

Omnibus Budget Reconciliation Act of 1993; Public Law 103-66, 
        Title XIV; August 10, 1993; 107 Stat. 312, 683.

Violent Crime Control and Law Enforcement Act of 1994; Public 
        Law 103-322, Title XXXI; September 13, 1994; 108 Stat. 
        1796, 2102.

Unfunded Mandates Reform Act of 1995; Public Law 104-4, Title 
        I; March 22, 1995; 109 Stat. 50.

Contract with America Advancement Act of 1996; Public Law 104-
        121, 110 Stat. 847.

Line Item Veto Act; Public Law 104-130; April 9, 1996; 110 
        Stat. 1200.
Balanced Budget Act of 1997; Public Law 105-33; August 5, 1997; 
        111 Stat. 251.
Transportation Equity Act for the 21st Century; Public Law 105-
        178; June 9, 1998; 112 Stat. 488.
TEA 21 Restortation Act; Public Law 105-206; July 22, 1998; 115 
        Stat. 865.
        START OF STATUTE deg.STATUTE 
        NAME=CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT 
  OF 1974 deg.[As Amended Through P.L. 106-554, Enacted December 21, 
                                 2000]

 AN ACT To establish a new congressional budget process; to establish 
 Committees on the Budget in each House; to establish a Congressional 
Budget Office; to establish a procedure providing congressional control 
 over the impoundment of funds by the executive branch; and for other 
                               purposes.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,
                    short titles; table of contents
    Section 1. [2 U.S.C. 621 note] (a) Short Titles.--This Act 
may be cited as the ``Congressional Budget and Impoundment 
Control Act of 1974''. Titles I through IX may be cited as the 
``Congressional Budget Act of 1974''. Parts A and B of title X 
may be cited as the ``Impoundment Control Act of 1974''. Part C 
of title X may be cited as the ``Line Item Veto Act of 1996''. 
\1\
---------------------------------------------------------------------------
    \1\ The Line Item Veto Act of 1996 was declared unconstitutional by 
the United States Supreme Court but has not been repealed. See the 
Appendix for the text of the Line Item Veto Act.
---------------------------------------------------------------------------
    (b) Table of Contents.--

Sec. 1. Short titles; table of contents.
Sec. 2. Declaration of purposes.
Sec. 3. Definitions.
     * * * * * * *

                  TITLE II--CONGRESSIONAL BUDGET OFFICE

Sec. 201. Establishment of Office.
Sec. 202. Duties and functions.
Sec. 203. Public access to budget data.

                 TITLE III--CONGRESSIONAL BUDGET PROCESS

Sec. 300. Timetable.
Sec. 301. Annual adoption of concurrent resolution on the budget.
Sec. 302. Committee allocations.
Sec. 303. Concurrent resolution on the budget must be adopted before 
          budget-related legislation is considered.
Sec. 304. Permissible revisions of concurrent resolutions on the budget.
Sec. 305. Prvisions relating to consideration of concurrent resolutions 
          on the 
          budget.
Sec. 306. Legislation dealing with congressional budget must be handled 
          by budget committees.
Sec. 307. House committee action on all appropriation bills to be 
          completed by June 10.
Sec. 308. Reports, summaries, and projections of congressional budget 
          actions.
Sec. 309. House approval of regular appropriation bills.
Sec. 310. Reconciliation.
Sec. 311. Budget-related legislation must be within appropriate levels.
Sec. 312. Determinations and points of order.
Sec. 313. Extraneous matter in reconciliation legislation.
Sec. 314. Adjustments.
Sec. 315. Effect of adoption of a special order of business in the House 
          of Representatives.

      TITLE IV--ADDITIONAL PROVISIONS TO IMPROVE FISCAL PROCEDURES

                       Part A--General Provisions

Sec. 401. Budget-related legislation not subject to appropriations.
Sec. 402. Analyses by Congressional Budget Office.
     * * * * * * *
Sec. 404. Study by the General Accounting Office of forms of Federal 
          financial commitment that are not reviewed annually by 
          Congress.
Sec. 405. Off-budget agencies, programs, and activities.
Sec. 406. Member user group.

                        Part B--Federal Mandates

Sec. 421. Definitions.
Sec. 422. Exclusions.
Sec. 423. Duties of congressional committees.
Sec. 424. Duties of the Director; statements on bills and joint 
          resolutions other than appropriations bills and joint 
          resolutions.
Sec. 425. Legislation subject to point of order.
Sec. 426. Provisions relating to the House of Representatives.
Sec. 427. Requests to the Congressional Budget Office from Senators.
Sec. 428. Clarification of application.

                         TITLE V--CREDIT REFORM

Sec. 500. Short title.
Sec. 501. Purposes.
Sec. 502. Definitions.
Sec. 503. OMB and CBO analysis, coordination, and review.
Sec. 504. Budgetary treatment.
Sec. 505. Authorizations.
Sec. 506. Treatment of deposit insurance and agencies and other 
          insurance programs.
Sec. 507. Effect on other laws.

                          [TITLE VI--REPEALED]

                TITLE VII--PROGRAM REVIEW AND EVALUATION

     * * * * * * *
Sec. 703. Continuing study of additional budget reform proposals.
     * * * * * * *

           TITLE IX--MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

     * * * * * * *
Sec. 904. Exercise of rulemaking powers.
     * * * * * * *

                      TITLE X--IMPOUNDMENT CONTROL

                       Part A--General Provisions

Sec. 1001. Disclaimer.
     * * * * * * *

      Part B--Congressional Consideration of Proposed Rescissions, 
             Reservations, and Deferrals of Budget Authority

Sec. 1011. Definitions.
Sec. 1012. Rescission of budget authority.
Sec. 1013. Proposed deferrals of budget authority.
Sec. 1014. Transmission of messages; publication.
Sec. 1015. Reports by Comptroller General.
Sec. 1016. Suits by Comptroller General.
Sec. 1017. Procedure in House and Senate.

                       Part C--Line Item Veto \1\
---------------------------------------------------------------------------

    \1\ The Line Item Veto Act of 1996 was declared unconstitutional by 
the United States Supreme Court but has not been repealed. See the 
Appendix for full text of the Line Item Veto Act.
---------------------------------------------------------------------------
Sec. 1021. Line item veto authority.
Sec. 1022. Special messages.
Sec. 1023. Cancellation effective unless disapproved.
Sec. 1024. Deficit reduction.
Sec. 1025. Expedited congressional consideration of disapproval bills.
Sec. 1026. Definitions.
Sec. 1027. Identification of limited tax benefits.
                        declaration of purposes
    Sec. 2. [2 U.S.C. 621] The Congress declares that it is 
essential--
            (1) to assure effective congressional control over 
        the budgetary process;
            (2) to provide for the congressional determination 
        each year of the appropriate level of Federal revenues 
        and expenditures;
            (3) to provide a system of impoundment control;
            (4) to establish national budget priorities; and
            (5) to provide for the furnishing of information by 
        the executive branch in a manner that will assist the 
        Congress in discharging its duties.
                              definitions
    Sec. 3. [2 U.S.C. 622] In General.--For purposes of this 
Act--
            (1) The terms ``budget outlays'' and ``outlays'' 
        mean, with respect to any fiscal year, expenditures and 
        net lending of funds under budget authority during such 
        year.
            (2)  Budget authority and new budget authority.----
                    (A) In general.--The term ``budget 
                authority'' means the authority provided by 
                Federal law to incur financial obligations, as 
                follows:
                            (i) provisions of law that make 
                        funds available for obligation and 
                        expenditure (other than borrowing 
                        authority), including the authority to 
                        obligate and expend the proceeds of 
                        offsetting receipts and collections;
                            (ii) borrowing authority, which 
                        means authority granted to a Federal 
                        entity to borrow and obligate and 
                        expend the borrowed funds, including 
                        through the issuance of promissory 
                        notes or other monetary credits;
                            (iii) contract authority, which 
                        means the making of funds available for 
                        obligation but not for expenditure; and
                            (iv) offsetting receipts and 
                        collections as negative budget 
                        authority, and the reduction thereof as 
                        positive budget authority.
                    (B) Limitations on budget authority.--With 
                respect to the Federal Hospital Insurance Trust 
                Fund, the Supplementary Medical Insurance Trust 
                Fund, the Unemployment Trust Fund, and the 
                railroad retirement account, any amount that is 
                precluded from obligation in a fiscal year by a 
                provision of law (such as a limitation or a 
                benefit formula) shall not be budget authority 
                in that year.
                    (C) New budget authority.--The term ``new 
                budget authority'' means, with respect to a 
                fiscal year----
                            (i) budget authority that first 
                        becomes available for obligation in 
                        that year, including budget authority 
                        that becomes available in that year as 
                        a result of a reappropriation; or
                            (ii) a change in any account in the 
                        availability of unobligated balances of 
                        budget authority carried over from a 
                        prior year, resulting from a provision 
                        of law first effective in that year;
                and includes a change in the estimated level of 
                new budget authority provided in indefinite 
                amounts by existing law.
            (3) The term ``tax expenditures'' means those 
        revenue losses attributable to provisions of the 
        Federal tax laws which allow a special exclusion, 
        exemption, or deduction from gross income or which 
        provide a special credit, a preferential rate of tax, 
        or a deferral of tax liability, and the term ``tax 
        expenditures budget'' means an enumeration of such tax 
        expenditures.
            (4) The term ``concurrent resolution on the 
        budget'' means--
                    (A) a concurrent resolution setting forth 
                the congressional budget for the United States 
                Government for a fiscal year as provided in 
                section 301; and
                    (B) any other concurrent resolution 
                revising the congressional budget for the 
                United States Government for a fiscal year as 
                described in section 304.
            (5) The term ``appropriation Act'' means an Act 
        referred to in section 105 of title 1, United States 
        Code.
            (6) The term ``deficit'' means, with respect to a 
        fiscal year, the amount by which outlays exceeds 
        receipts during that year.
            (7) The term ``surplus'' means, with respect to a 
        fiscal year, the amount by which receipts exceeds 
        outlays during that year.
    (8) The term ``government-sponsored enterprise'' means a 
corporate entity created by a law of the United States that----
            (A)(i) has a Federal charter authorized by law;
            (ii) is privately owned, as evidenced by capital 
        stock owned by private entities or individuals;
            (iii) is under the direction of a board of 
        directors, a majority of which is elected by private 
        owners;
            (iv) is a financial institution with power to----
                    (I) make loans or loan guarantees for 
                limited purposes such as to provide credit for 
                specific borrowers or one sector; and
                    (II) raise funds by borrowing (which does 
                not carry the full faith and credit of the 
                Federal Government) or to guarantee the debt of 
                others in unlimited amounts; and
            (B)(i) does not exercise powers that are reserved 
        to the Government as sovereign (such as the power to 
        tax or to regulate interstate commerce);
            (ii) does not have the power to commit the 
        Government financially (but it may be a recipient of a 
        loan guarantee commitment made by the Government); and
            (iii) has employees whose salaries and expenses are 
        paid by the enterprise and are not Federal employees 
        subject to title 5 of the United States Code.
            (9) The term ``entitlement authority'' means----
                    (A) the authority to make payments 
                (including loans and grants), the budget 
                authority for which is not provided for in 
                advance by appropriation Acts, to any person or 
                government if, under the provisions of the law 
                containing that authority, the United States is 
                obligated to make such payments to persons or 
                governments who meet the requirements 
                established by that law; and
                    (B) the food stamp program.
            (10) The term ``credit authority'' means authority 
        to incur direct loan obligations or to incur primary 
        loan guarantee commitments.
          * * * * * * *

                 TITLE II--CONGRESSIONAL BUDGET OFFICE

                        establishment of office
    Sec. 201. [2 U.S.C. 601] (a) In General.----
            (1) There is established an office of the Congress 
        to be known as the Congressional Budget Office 
        (hereinafter in this title referred to as the 
        ``Office''). The Office shall be headed by a Director; 
        and there shall be a Deputy Director who shall perform 
        such duties as may be assigned to him by the Director 
        and, during the absence or incapacity of the Director 
        or during a vacancy in that office, shall act as 
        Director.
            (2) The Director shall be appointed by the Speaker 
        of the House of Representatives and the President pro 
        tempore of the Senate after considering recommendations 
        received from the Committees on the Budget of the House 
        and the Senate, without regard to political affiliation 
        and solely on the basis of his fitness to perform his 
        duties. The Deputy Director shall be appointed by the 
        Director.
            (3) The term of office of the Director shall be 4 
        years and shall expire on January 3 of the year 
        preceding each Presidential election. Any individual 
        appointed as Director to fill a vacancy prior to the 
        expiration of a term shall serve only for the unexpired 
        portion of that term. An individual serving as Director 
        at the expiration of a term may continue to serve until 
        his successor is appointed. Any Deputy Director shall 
        serve until the expiration of the term of office of the 
        Director who appointed him (and until his successor is 
        appointed), unless sooner removed by the Director.
            (4) The Director may be removed by either House by 
        resolution.
            (5)(A) The Director shall receive compensation at 
        an annual rate of pay that is equal to the lower of----
                    (i) the highest annual rate of compensation 
                of any officer of the Senate; or
                    (ii) the highest annual rate of 
                compensation of any officer of the House of 
                Representatives.
            (B) The Deputy Director shall receive compensation 
        at an annual rate of pay that is $1,000 less than the 
        annual rate of pay received by the Director, as 
        determined under subparagraph (A).
    (b) Personnel.--The Director shall appoint and fix the 
compensation of such personnel as may be necessary to carry out 
the duties and functions of the Office. All personnel of the 
Office shall be appointed without regard to political 
affiliation and solely on the basis of their fitness to perform 
their duties. The Director may prescribe the duties and 
responsibilities of the personnel of the Office, and delegate 
to them authority to perform any of the duties, powers, and 
functions imposed on the Office or on the Director. For 
purposes of pay (other than pay of the Director and Deputy 
Director) and employment benefits, rights, and privileges, all 
personnel of the Office shall be treated as if they were 
employees of the House of Representatives.
    (c) Experts and Consultants.--In carrying out the duties 
and functions of the Office, the Director may procure the 
temporary (not to exceed one year) or intermittent services of 
experts or consultants or organizations thereof by contract as 
independent contractors, or, in the case of individual experts 
or consultants, by employment at rates of pay not in excess of 
the daily equivalent of the highest rate of basic pay payable 
under the General Schedule of section 5332 of title 5, United 
States Code.
    (d) Relationship to Executive Branch.--The Director is 
authorized to secure information, data, estimates, and 
statistics directly from the various departments, agencies, and 
establishments of the executive branch of Government and the 
regulatory agencies and commissions of the Government. All such 
departments, agencies, establishments, and regulatory agencies 
and commissions shall furnish the Director any available 
material which he determines to be necessary in the performance 
of his duties and functions (other than material the disclosure 
of which would be a violation of law). The Director is also 
authorized, upon agreement with the head of any such 
department, agency, establishment, or regulatory agency or 
commission, to utilize its services, facilities, and personnel 
with or without reimbursement; and the head of each such 
department, agency, establishment, or regulatory agency or 
commission is authorized to provide the Office such services, 
facilities, and personnel.
    (e) Relationship to Other Agencies of Congress.--In 
carrying out the duties and functions of the Office, and for 
the purpose of coordinating the operations of the Office with 
those of other congressional agencies with a view to utilizing 
most effectively the information, services, and capabilities of 
all such agencies in carrying out the various responsibilities 
assigned to each, the Director is authorized to obtain 
information, data, estimates, and statistics developed by the 
General Accounting Office, and the Library of Congress, and 
(upon agreement with them) to utilize their services, 
facilities, and personnel with or without reimbursement. The 
Comptroller General, and the Librarian of Congress are 
authorized to provide the Office with the information, data, 
estimates, and statistics, and the services, facilities, and 
personnel, referred to in the preceding sentence.
    (f) Revenue Estimates.--For the purposes of revenue 
legislation which is income, estate and gift, excise, and 
payroll taxes (i.e., Social Security), considered or enacted in 
any session of Congress, the Congressional Budget Office shall 
use exclusively during that session of Congress revenue 
estimates provided to it by the Joint Committee on Taxation. 
During that session of Congress such revenue estimates shall be 
transmitted by the Congressional Budget Office to any committee 
of the House of Representatives or the Senate requesting such 
estimates, and shall be used by such Committees in determining 
such estimates. The Budget Committees of the Senate and House 
shall determine all estimates with respect to scoring points of 
order and with respect to the execution of the purposes of this 
Act.
    (g) Appropriations.--There are authorized to be 
appropriated to the Office for each fiscal year such sums as 
may be necessary to enable it to carry out its duties and 
functions. Until sums are first appropriated pursuant to the 
preceding sentence, but for a period not exceeding 12 months 
following the effective date of this subsection, the expenses 
of the Office shall be paid from the contingent fund of the 
Senate, in accordance with the paragraph relating to the 
contingent fund of the Senate under the heading ``UNDER 
LEGISLATIVE'' in the Act of October 1, 1888 (28 Stat. 546; 2 
U.S.C. 68), and upon vouchers approved by the Director.
                          duties and functions
    Sec. 202. [2 U.S.C. 602] (a) Assistance to Budget 
Committees.--It shall be the primary duty and function of the 
Office to provide to the Committees on the Budget of both 
Houses information which will assist such committees in the 
discharge of all matters within their jurisdictions, including 
(1) information with respect to the budget, appropriation 
bills, and other bills authorizing or providing new budget 
authority or tax expenditures, (2) information with respect to 
revenues, receipts, estimated future revenues and receipts, and 
changing revenue conditions, and (3) such related information 
as such Committees may request.
    (b) Assistance to Committees on Appropriations, Ways and 
Means, and Finance.--At the request of the Committee on 
Appropriations of either House, the Committee on Ways and Means 
of the House of Representatives, or the Committee on Finance of 
the Senate, the Office shall provide to such Committee any 
information which will assist it in the discharge of matters 
within its jurisdiction, including information described in 
clauses (1) and (2) of subsection (a) and such related 
information as the Committee may request.
    (c) Assistance to Other Committees and Members.----
            (1) At the request of any other committee of the 
        House of Representatives or the Senate or any joint 
        committee of the Congress, the Office shall provide to 
        such committee or joint committee any information 
        compiled in carrying out clauses (1) and (2) of 
        subsection (a), and, to the extent practicable, such 
        additional information related to the foregoing as may 
        be requested.
            (2) At the request of any committee of the Senate 
        or the House of Representatives, the Office shall, to 
        the extent practicable, consult with and assist such 
        committee in analyzing the budgetary or financial 
        impact of any proposed legislation that may have----
                    (A) a significant budgetary impact on 
                State, local, or tribal governments;
                    (B) a significant financial impact on the 
                private sector; or
                    (C) a significant employment impact on the 
                private sector.
            (3) At the request of any Member of the House or 
        Senate, the Office shall provide to such member any 
        information compiled in carrying out clauses (1) and 
        (2) of subsection (a), and, to the extent available, 
        such additional information related to the foregoing as 
        may be requested.
    (d) Assignment of Office Personnel to Committees and Joint 
Committees.--At the request of the Committee on the Budget of 
either House, personnel of the Office shall be assigned, on a 
temporary basis, to assist such committee. At the request of 
any other committee of either House or any joint committee of 
the Congress, personnel of the Office may be assigned, on a 
temporary basis, to assist such committee or joint committee 
with respect to matters directly related to the applicable 
provisions of subsection (b) or (c).
    (e) Reports to Budget Committees.----
            (1) On or before February 15 of each year, the 
        Director shall submit to the Committees on the Budget 
        of the House of Representatives and the Senate, a 
        report for the fiscal year commencing on October 1 of 
        that year, with respect to fiscal policy, including (A) 
        alternative levels of total revenues, total new budget 
        authority, and total outlays (including related 
        surpluses and deficits), (B) the levels of tax 
        expenditures under existing law, taking into account 
        projected economic factors and any changes in such 
        levels based on proposals in the budget submitted by 
        the President for such fiscal year, and (C) a statement 
        of the levels of budget authority and outlays for each 
        program assumed to be extended in the baseline, as 
        provided in section 257(b)(2)(A) and for excise taxes 
        assumed to be extended under section 257(b)(2)(C) of 
        the Balanced Budget and Emergency Deficit Control Act 
        of 1985. Such report shall also include a discussion of 
        national budget priorities, including alternative ways 
        of allocating new budget authority and budget outlays 
        for such fiscal year among major programs or functional 
        categories, taking into account how such alternative 
        allocations will meet major national needs and affect 
        balanced growth and development of the United States.
            (2) The Director shall from time to time submit to 
        the Committees on the Budget of the House of 
        Representatives and the Senate such further reports 
        (including reports revising the report required by 
        paragraph (1)) as may be necessary or appropriate to 
        provide such Committees with information, data, and 
        analyses for the performance of their duties and 
        functions.
            (3) On or before January 15 of each year, the 
        Director, after consultation with the appropriate 
        committees of the House of Representatives and Senate, 
        shall submit to the Congress a report listing (A) all 
        programs and activities funded during the fiscal year 
        ending September 30 of that calendar year for which 
        authorizations for appropriations have not been enacted 
        for that fiscal year, and (B) all programs and 
        activities for which authorizations for appropriations 
        have been enacted for the fiscal year ending September 
        30 of that calendar year, but for which no 
        authorizations for appropriations have been enacted for 
        the fiscal year beginning October 1 of that calendar 
        year.
    (f) Use of Computers and Other Techniques.--The Director 
may equip the Office with up-to-date computer capability (upon 
approval of the Committee on House Oversight of the House of 
Representatives and the Committee on Rules and Administration 
of the Senate), obtain the services of experts and consultants 
in computer technology, and develop techniques for the 
evaluation of budgetary requirements.
    (g) Studies.----
            (1) Continuing studies.--The Director of the 
        Congressional Budget Office shall conduct continuing 
        studies to enhance comparisons of budget outlays, 
        credit authority, and tax expenditures.
            (2) Federal mandate studies.----
                    (A) At the request of any Chairman or 
                ranking member of the minority of a Committee 
                of the Senate or the House of Representatives, 
                the Director shall, to the extent practicable, 
                conduct a study of a legislative proposal 
                containing a Federal mandate.
                    (B) In conducting a study on 
                intergovernmental mandates under subparagraph 
                (A), the Director shall----
                            (i) solicit and consider 
                        information or comments from elected 
                        officials (including their designated 
                        representatives) of State, local, or 
                        tribal governments as may provide 
                        helpful information or comments;
                            (ii) consider establishing advisory 
                        panels of elected officials or their 
                        designated representatives, of State, 
                        local, or tribal governments if the 
                        Director determines that such advisory 
                        panels would be helpful in performing 
                        responsibilities of the Director under 
                        this section; and
                            (iii) if, and to the extent that 
                        the Director determines that accurate 
                        estimates are reasonably feasible, 
                        include estimates of----
                                    (I) the future direct cost 
                                of the Federal mandate to the 
                                extent that such costs 
                                significantly differ from or 
                                extend beyond the 5-year period 
                                after the mandate is first 
                                effective; and
                                    (II) any disproportionate 
                                budgetary effects of Federal 
                                mandates upon particular 
                                industries or sectors of the 
                                economy, States, regions, and 
                                urban or rural or other types 
                                of communities, as appropriate.
                    (C) In conducting a study on private sector 
                mandates under subparagraph (A), the Director 
                shall provide estimates, if and to the extent 
                that the Director determines that such 
                estimates are reasonably feasible, of----
                            (i) future costs of Federal private 
                        sector mandates to the extent that such 
                        mandates differ significantly from or 
                        extend beyond the 5-year time period 
                        referred to in subparagraph 
                        (B)(iii)(I);
                            (ii) any disproportionate financial 
                        effects of Federal private sector 
                        mandates and of any Federal financial 
                        assistance in the bill or joint 
                        resolution upon any particular 
                        industries or sectors of the economy, 
                        States, regions, and urban or rural or 
                        other types of communities; and
                            (iii) the effect of Federal private 
                        sector mandates in the bill or joint 
                        resolution on the national economy, 
                        including the effect on productivity, 
                        economic growth, full employment, 
                        creation of productive jobs, and 
                        international competitiveness of United 
                        States goods and services.
                      public access to budget data
    Sec. 203. [2 U.S.C. 603] (a) Right To Copy.--Except as 
provided in subsections (c), (d), and (e), the Director shall 
make all information, data, estimates, and statistics obtained 
under sections 201(d) and 201(e) available for public copying 
during normal business hours, subject to reasonable rules and 
regulations, and shall to the extent practicable, at the 
request of any person, furnish a copy of any such information, 
data, estimates, or statistics upon payment by such person of 
the cost of making and furnishing such copy.
    (b) Index.--The Director shall develop and maintain filing, 
coding, and indexing systems that identify the information, 
data, estimates, and statistics to which subsection (a) applies 
and shall make such systems available for public use during 
normal business hours.
    (c) Exceptions.--Subsection (a) shall not apply to 
information, data, estimates, and statistics----
            (1) which are specifically exempted from disclosure 
        by law; or
            (2) which the Director determines will disclose----
                    (A) matters necessary to be kept secret in 
                the interests of national defense or the 
                confidential conduct of the foreign relations 
                of the United States;
                    (B) information relating to trade secrets 
                or financial or commercial information 
                pertaining specifically to a given person if 
                the information has been obtained by the 
                Government on a confidential basis, other than 
                through an application by such person for a 
                specific financial or other benefit, and is 
                required to be kept secret in order to prevent 
                undue injury to the competitive position of 
                such person; or
                    (C) personnel or medical data or similar 
                data the disclosure of which would constitute a 
                clearly unwarranted invasion of personal 
                privacy;
        unless the portions containing such matters, 
        information, or data have been excised.
    (d) Information Obtained for Committees and Members.--
Subsection (a) shall apply to any information, data, estimates, 
and statistics obtained at the request of any committee, joint 
committee, or Member unless such committee, joint committee, or 
Member has instructed the Director not to make such 
information, data, estimates, or statistics available for 
public copying.
    (e) Level of Confidentiality.--With respect to information, 
data, estimates, and statistics obtained under sections 201(d) 
and 201(e), the Director shall maintain the same level of 
confidentiality as is required by law of the department, 
agency, establishment, or regulatory agency or commission from 
which it is obtained. Officers and employees of the 
Congressional Budget Office shall be subject to the same 
statutory penalties for unauthorized disclosure or use as 
officers or employees of the department, agency, establishment, 
or regulatory agency or commission from which it is obtained.

              TITLE III--CONGRESSIONAL BUDGET PROCESS \1\
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    \1\ Most points of order under this title may be waived or 
suspended in the Senate only by the affirmative vote of three-fifths of 
the Members duly chosen or sworn. See sec. 904(c) for details.
---------------------------------------------------------------------------
                               timetable
    Sec. 300. [2 U.S.C. 631] The timetable with respect to the 
congressional budget process for any fiscal year is as follows:

On or before:       Action to be completed:
  First Monday in FePresident submits his budget........................
  February 15.......Congressional Budget Office submits report to Budget 
                    Committees.
  Not later than 6 wCommittees submit views and estimates to Budget ....
                    Committees.
  April 1...........Senate Budget Committee reports concurrent .........
                    resolution on the budget.
  April 15..........Congress completes action on concurrent resolution .
                    on the budget.
  May 15............Annual appropriation bills may be considered in the 
                    House.
  June 10...........House Appropriations Committee reports last annual .
                    appropriation bill.
  June 15...........Congress completes action on reconciliation ........
                    legislation.
  June 30...........House completes action on annual appropriation .....
                    bills.
  October 1.........Fiscal year begins..................................
         annual adoption of concurrent resolution on the budget
    Sec. 301. [2 U.S.C. 632] (a) \2\ Content of Concurrent 
Resolution on the Budget.--On or before April 15 of each year, 
the Congress shall complete action on a concurrent resolution 
on the budget for the fiscal year beginning on October 1 of 
such year. The concurrent resolution shall set forth 
appropriate levels for the fiscal year beginning on October 1 
of such year and for at least each of the 4 ensuing fiscal 
years for the following----
---------------------------------------------------------------------------
    \2\ See also clause 10(b) of rule XVIII and rule XXII of the Rules 
of the House of Representatives.
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            (1) totals of new budget authority and outlays;
            (2) total Federal revenues and the amount, if any, 
        by which the aggregate level of Federal revenues should 
        be increased or decreased by bills and resolutions to 
        be reported by the appropriate committees;
            (3) the surplus or deficit in the budget;
            (4) new budget authority and outlays for each major 
        functional category, based on allocations of the total 
        levels set forth pursuant to paragraph (1);
            (5) the public debt;
            (6) For \1\ purposes of Senate enforcement under 
        this title, outlays of the old-age, survivors, and 
        disability insurance program established under title II 
        of the Social Security Act for the fiscal year of the 
        resolution and for each of the 4 succeeding fiscal 
        years; and
---------------------------------------------------------------------------
    \1\ So in law. Probably should not be capitalized.
---------------------------------------------------------------------------
            (7) For \1\ purposes of Senate enforcement under 
        this title, revenues of the old-age, survivors, and 
        disability insurance program established under title II 
        of the Social Security Act (and the related provisions 
        of the Internal Revenue Code of 1986) for the fiscal 
        year of the resolution and for each of the 4 succeeding 
        fiscal years.
The concurrent resolution shall not include the outlays and 
revenue totals of the old age, \2\ survivors, and disability 
insurance program established under title II of the Social 
Security Act or the related provisions of the Internal Revenue 
Code of 1986 in the surplus or deficit totals required by this 
subsection or in any other surplus or deficit totals required 
by this title.
---------------------------------------------------------------------------
    \2\ So in law. Probably should be ``old-age''.
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    (b) Additional Matters in Concurrent Resolution.--The 
concurrent resolution on the budget may----
            (1) set forth, if required by subsection (f), the 
        calendar year in which, in the opinion of the Congress, 
        the goals for reducing unemployment set forth in 
        section 4(b) of the Employment Act of 1946 should be 
        achieved;
            (2) include reconciliation directives described in 
        section 310;
            (3) require a procedure under which all or certain 
        bills or resolutions providing new budget authority or 
        new entitlement authority for such fiscal year shall 
        not be enrolled until the Congress has completed action 
        on any reconciliation bill or reconciliation resolution 
        or both required by such concurrent resolution to be 
        reported in accordance with section 310(b);
            (4) set forth such other matters, and require such 
        other procedures, relating to the budget, as may be 
        appropriate to carry out the purposes of this Act;
            (5) include a heading entitled ``Debt Increase as 
        Measure of Deficit'' in which the concurrent resolution 
        shall set forth the amounts by which the debt subject 
        to limit (in section 3101 of title 31 of the United 
        States Code) has increased or would increase in each of 
        the relevant fiscal years;
            (6) include a heading entitled ``Display of Federal 
        Retirement Trust Fund Balances'' in which the 
        concurrent resolution shall set forth the balances of 
        the Federal retirement trust funds;
            (7) set forth procedures in the Senate whereby 
        committee allocations, aggregates, and other levels can 
        be revised for legislation if that legislation would 
        not increase the deficit, or would not increase the 
        deficit when taken with other legislation enacted after 
        the adoption of the resolution, for the first fiscal 
        year or the total period of fiscal years covered by the 
        resolution;
            (8) set forth procedures to effectuate pay-as-you-
        go in the House of Representatives; and
            (9) set forth direct loan obligation and primary 
        loan guarantee commitment levels.
    (c) Consideration of Procedures or Matters Which Have the 
Effect of Changing any Rule of the House of Representatives.--
If the Committee on the Budget of the House of Representatives 
reports any concurrent resolution on the budget which includes 
any procedure or matter which has the effect of changing any 
rule of the House of Representatives, such concurrent 
resolution shall then be referred to the Committee on Rules 
with instructions to report it within five calendar days (not 
counting any day on which the House is not in session). The 
Committee on Rules shall have jurisdiction to report any 
concurrent resolution referred to it under this paragraph with 
an amendment or amendments changing or striking out any such 
procedure or matter.
    (d) \1\ Views and Estimates of Other Committees.--Within 6 
weeks after the President submits a budget under section 
1105(a) of title 31, United States Code, or at such time as may 
be requested by the Committee on the Budget, each committee of 
the House of Representatives having legislative jurisdiction 
shall submit to the Committee on the Budget of the House and 
each committee of the Senate having legislative jurisdiction 
shall submit to the Committee on the Budget of the Senate its 
views and estimates (as determined by the committee making such 
submission) with respect to all matters set forth in 
subsections (a) and (b) which relate to matters within the 
jurisdiction or functions of such committee. The Joint Economic 
Committee shall submit to the Committees on the Budget of both 
Houses its recommendations as to the fiscal policy appropriate 
to the goals of the Employment Act of 1946. Any other committee 
of the House of Representatives or the Senate may submit to the 
Committee on the Budget of its House, and any joint committee 
of the Congress may submit to the Committees on the Budget of 
both Houses, its views and estimates with respect to all 
matters set forth in subsections (a) and (b) which relate to 
matters within its jurisdiction or functions. Any Committee of 
the House of Representatives or the Senate that anticipates 
that the committee will consider any proposed legislation 
establishing, amending, or reauthorizing any Federal program 
likely to have a significant budgetary impact on any State, 
local, or tribal government, or likely to have a significant 
financial impact on the private sector, including any 
legislative proposal submitted by the executive branch likely 
to have such a budgetary or financial impact, shall include its 
views and estimates on that proposal to the Committee on the 
Budget of the applicable House.
---------------------------------------------------------------------------
    \1\ See also clauses 4(f) and 11(c)(3) of rule X of the Rules of 
the House of Representatives.
---------------------------------------------------------------------------
    (e) Hearings and Report.----
            (1) In general.--In developing the concurrent 
        resolution on the budget referred to in subsection (a) 
        for each fiscal year, the Committee on the Budget of 
        each House shall hold hearings and shall receive 
        testimony from Members of Congress and such appropriate 
        representatives of Federal departments and agencies, 
        the general public, and national organizations as the 
        committee deems desirable. Each of the recommendations 
        as to short-term and medium-term goal set forth in the 
        report submitted by the members of the Joint Economic 
        Committee under subsection (d) may be considered by the 
        Committee on the Budget of each House as part of its 
        consideration of such concurrent resolution, and its 
        report may reflect its views thereon, including its 
        views on how the estimates of revenues and levels of 
        budget authority and outlays set forth in such 
        concurrent resolution are designed to achieve any goals 
        it is recommending.
            (2) Required contents of report.--The report 
        accompanying the resolution shall include----
                    (A) a comparison of the levels of total new 
                budget authority, total outlays, total 
                revenues, and the surplus or deficit for each 
                fiscal year set forth in the resolution with 
                those requested in the budget submitted by the 
                President;
                    (B) with respect to each major functional 
                category, an estimate of total new budget 
                authority and total outlays, with the estimates 
                divided between discretionary and mandatory 
                amounts;
                    (C) the economic assumptions that underlie 
                each of the matters set forth in the resolution 
                and any alternative economic assumptions and 
                objectives the committee considered;
                    (D) information, data, and comparisons 
                indicating the manner in which, and the basis 
                on which, the committee determined each of the 
                matters set forth in the resolution;
                    (E) the estimated levels of tax 
                expenditures (the tax expenditures budget) by 
                major items and functional categories for the 
                President's budget and in the resolution; and
                    (F) allocations described in section 
                302(a).
            (3) Additional contents of report.--The report 
        accompanying the resolution may include----
                    (A) a statement of any significant changes 
                in the proposed levels of Federal assistance to 
                State and local governments;
                    (B) an allocation of the level of Federal 
                revenues recommended in the resolution among 
                the major sources of such revenues;
                    (C) information, data, and comparisons on 
                the share of total Federal budget outlays and 
                of gross domestic product devoted to investment 
                in the budget submitted by the President and in 
                the resolution;
                    (D) the assumed levels of budget authority 
                and outlays for public buildings, with a 
                division between amounts for construction and 
                repair and for rental payments; and
                    (E) other matters, relating to the budget 
                and to fiscal policy, that the committee deems 
                appropriate.
    (f) Achievement of Goals for Reducing Unemployment.----
            (1) If, pursuant to section 4(c) of the Employment 
        Act of 1946, the President recommends in the Economic 
        Report that the goals for reducing unemployment set 
        forth in section 4(b) of such Act be achieved in a year 
        after the close of the five-year period prescribed by 
        such subsection, the concurrent resolution on the 
        budget for the fiscal year beginning after the date on 
        which such Economic Report is received by the Congress 
        may set forth the year in which, in the opinion of the 
        Congress, such goals can be achieved.
            (2) After the Congress has expressed its opinion 
        pursuant to paragraph (1) as to the year in which the 
        goals for reducing unemployment set forth in section 
        4(b) of the Employment Act of 1946 can be achieved, if, 
        pursuant to section 4(e) of such Act, the President 
        recommends in the Economic Report that such goals be 
        achieved in a year which is different from the year in 
        which the Congress has expressed its opinion that such 
        goals should be achieved, either in its action pursuant 
        to paragraph (1) or in its most recent action pursuant 
        to this paragraph, the concurrent resolution on the 
        budget for the fiscal year beginning after the date on 
        which such Economic Report is received by the Congress 
        may set forth the year in which, in the opinion of the 
        Congress, such goals can be achieved.
            (3) It shall be in order to amend the provision of 
        such resolution setting forth such year only if the 
        amendment thereto also proposes to alter the estimates, 
        amounts, and levels (as described in subsection (a)) 
        set forth in such resolution in germane fashion in 
        order to be consistent with the economic goals (as 
        described in sections 3(a)(2) and (4)(b) of the 
        Employment Act of 1946) which such amendment proposes 
        can be achieved by the year specified in such 
        amendment.
    (g) Economic Assumptions.----
            (1) It shall not be in order in the Senate to 
        consider any concurrent resolution on the budget for a 
        fiscal year, or any amendment thereto, or any 
        conference report thereon, that sets forth amounts and 
        levels that are determined on the basis of more than 
        one set of economic and technical assumptions.
            (2) The joint explanatory statement accompanying a 
        conference report on a concurrent resolution on the 
        budget shall set forth the common economic assumptions 
        upon which such joint statement and conference report 
        are based, or upon which any amendment contained in the 
        joint explanatory statement to be proposed by the 
        conferees in the case of technical disagreement, is 
        based.
            (3) Subject to periodic reestimation based on 
        changed economic conditions or technical estimates, 
        determinations under titles III and IV of the 
        Congressional Budget Act of 1974 shall be based upon 
        such common economic and technical assumptions.
    (h) Budget Committees Consultation With Committees.--The 
Committee on the Budget of the House of Representatives shall 
consult with the committees of its House having legislative 
jurisdiction during the preparation, consideration, and 
enforcement of the concurrent resolution on the budget with 
respect to all matters which relate to the jurisdiction or 
functions of such committees.
    (i) Social Security Point of Order.--It shall not be in 
order in the Senate to consider any concurrent resolution on 
the budget (or amendment, motion, or conference report on the 
resolution) that would decrease the excess of social security 
revenues over social security outlays in any of the fiscal 
years covered by the concurrent resolution. No change in 
chapter 1 of the Internal Revenue Code of 1986 shall be treated 
as affecting the amount of social security revenues unless such 
provision changes the income tax treatment of social security 
benefits.
                         committee allocations
    Sec. 302. [2 U.S.C. 633] (a) Committee Spending 
Allocations.----
            (1) Allocation among committees.--The joint 
        explanatory statement accompanying a conference report 
        on a concurrent resolution on the budget shall include 
        an allocation, consistent with the resolution 
        recommended in the conference report, of the levels for 
        the first fiscal year of the resolution, for at least 
        each of the ensuing 4 fiscal years, and a total for 
        that period of fiscal years (except in the case of the 
        Committee on Appropriations only for the fiscal year of 
        that resolution) of----
                    (A) total new budget authority; and
                    (B) total outlays;
        among each committee of the House of Representatives or 
        the Senate that has jurisdiction over legislation 
        providing or creating such amounts.
            (2) No double counting.--In the House of 
        Representatives, any item allocated to one committee 
        may not be allocated to another committee.
            (3) Further division of amounts.----
                    (A) In the senate.--In the Senate, the 
                amount allocated to the Committee on 
                Appropriations shall be further divided among 
                the categories specified in section 250(c)(4) 
                of the Balanced Budget and Emergency Deficit 
                Control Act of 1985 and shall not exceed the 
                limits for each category set forth in section 
                251(c) of that Act.
                    (B) In the house.--In the House of 
                Representatives, the amounts allocated to each 
                committee for each fiscal year, other than the 
                Committee on Appropriations, shall be further 
                divided between amounts provided or required by 
                law on the date of filing of that conference 
                report and amounts not so provided or required. 
                The amounts allocated to the Committee on 
                Appropriations shall be further divided----
                            (i) between discretionary and 
                        mandatory amounts or programs, as 
                        appropriate; and
                            (ii) consistent with the categories 
                        specified in section 250(c)(4) of the 
                        Balanced Budget and Emergency Deficit 
                        Control Act of 1985.
            (4) Amounts not allocated.--In the House of 
        Representatives or the Senate, if a committee receives 
        no allocation of new budget authority or outlays, that 
        committee shall be deemed to have received an 
        allocation equal to zero for new budget authority or 
        outlays.
            (5) Adjusting allocation of discretionary spending 
        in the house of representatives.--(A) If a concurrent 
        resolution on the budget is not adopted by April 15, 
        the chairman of the Committee on the Budget of the 
        House of Representatives shall submit to the House, as 
        soon as practicable, an allocation under paragraph (1) 
        to the Committee on Appropriations consistent with the 
        discretionary spending levels in the most recently 
        agreed to concurrent resolution on the budget for the 
        appropriate fiscal year covered by that resolution.
            (B) As soon as practicable after an allocation 
        under paragraph (1) is submitted under this section, 
        the Committee on Appropriations shall make 
        suballocations and report those suballocations to the 
        House of Representatives.
    (b) Suballocations by Appropriations Committees.--As soon 
as practicable after a concurrent resolution on the budget is 
agreed to, the Committee on Appropriations of each House (after 
consulting with the Committee on Appropriations of the other 
House) shall suballocate each amount allocated to it for the 
budget year under subsection (a) among its subcommittees. Each 
Committee on Appropriations shall promptly report to its House 
suballocations made or revised under this subsection. The 
Committee on Appropriations of the House of Representatives 
shall further divide among its subcommittees the divisions made 
under subsection (a)(3)(B) and promptly report those divisions 
to the House.
    (c) Point of Order.--After the Committee on Appropriations 
has received an allocation pursuant to subsection (a) for a 
fiscal year, it shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint 
resolution, amendment, motion, or conference report within the 
jurisdiction of that committee providing new budget authority 
for that fiscal year, until that committee makes the 
suballocations required by subsection (b).
    (d) Subsequent Concurrent Resolutions.--In the case of a 
concurrent resolution on the budget referred to in section 304, 
the allocations under subsection (a) and the subdivisions under 
subsection (b) shall be required only to the extent necessary 
to take into account revisions made in the most recently agreed 
to concurrent resolution on the budget.
    (e) Alteration of Allocations.--At any time after a 
committee reports the allocations required to be made under 
subsection (b), such committee may report to its House an 
alteration of such allocations. Any alteration of such 
allocations must be consistent with any actions already taken 
by its House on legislation within the committee's 
jurisdiction.
    (f) Legislation Subject to Point of Order.----
            (1) In the house of representatives.--After the 
        Congress has completed action on a concurrent 
        resolution on the budget for a fiscal year, it shall 
        not be in order in the House of Representatives to 
        consider any bill, joint resolution, or amendment 
        providing new budget authority for any fiscal year, or 
        any conference report on any such bill or joint 
        resolution, if----
                    (A) the enactment of such bill or 
                resolution as reported;
                    (B) the adoption and enactment of such 
                amendment; or
                    (C) the enactment of such bill or 
                resolution in the form recommended in such 
                conference report,
        would cause the applicable allocation of new budget 
        authority made under subsection (a) or (b) for the 
        first fiscal year or the total of fiscal years to be 
        exceeded.
            (2) In the senate.--After a concurrent resolution 
        on the budget is agreed to, it shall not be in order in 
        the Senate to consider any bill, joint resolution, 
        amendment, motion, or conference report that would 
        cause----
                    (A) in the case of any committee except the 
                Committee on Appropriations, the applicable 
                allocation of new budget authority or outlays 
                under subsection (a) for the first fiscal year 
                or the total of fiscal years to be exceeded; or
                    (B) in the case of the Committee on 
                Appropriations, the applicable suballocation of 
                new budget authority or outlays under 
                subsection (b) to be exceeded.
    (g) Pay-as-You-Go Exception in the House.----
            (1) In general.--(A) Subsection (f)(1) and, after 
        April 15, section 303(a) shall not apply to any bill or 
        joint resolution, as reported, amendment thereto, or 
        conference report thereon if, for each fiscal year 
        covered by the most recently agreed to concurrent 
        resolution on the budget----
                    (i) the enactment of that bill or 
                resolution as reported;
                    (ii) the adoption and enactment of that 
                amendment; or
                    (iii) the enactment of that bill or 
                resolution in the form recommended in that 
                conference report,
        would not increase the deficit, and, if the sum of any 
        revenue increases provided in legislation already 
        enacted during the current session (when added to 
        revenue increases, if any, in excess of any outlay 
        increase provided by the legislation proposed for 
        consideration) is at least as great as the sum of the 
        amount, if any, by which the aggregate level of Federal 
        revenues should be increased as set forth in that 
        concurrent resolution and the amount, if any, by which 
        revenues are to be increased pursuant to pay-as-you-go 
        procedures under section 301(b)(8), if included in that 
        concurrent resolution.
            (B) Section 311(a), as that section applies to 
        revenues, shall not apply to any bill, joint 
        resolution, amendment thereto, or conference report 
        thereon if, for each fiscal year covered by the most 
        recently agreed to concurrent resolution on the 
        budget----
                    (i) the enactment of that bill or 
                resolution as reported;
                    (ii) the adoption and enactment of that 
                amendment; or
                    (iii) the enactment of that bill or 
                resolution in the form recommended in that 
                conference report,
        would not increase the deficit, and, if the sum of any 
        outlay reductions provided in legislation already 
        enacted during the current session (when added to 
        outlay reductions, if any, in excess of any revenue 
        reduction provided by the legislation proposed for 
        consideration) is at least as great as the sum of the 
        amount, if any, by which the aggregate level of Federal 
        outlays should be reduced as required by that 
        concurrent resolution and the amount, if any, by which 
        outlays are to be reduced pursuant to pay-as-you-go 
        procedures under section 301(b)(8), if included in that 
        concurrent resolution.
            (2) Revised allocations.--(A) As soon as 
        practicable after Congress agrees to a bill or joint 
        resolution that would have been subject to a point of 
        order under subsection (f)(1) but for the exception 
        provided in paragraph (1)(A) or would have been subject 
        to a point of order under section 311(a) but for the 
        exception provided in paragraph (1)(B), the chairman of 
        the committee \1\ on the Budget of the House of 
        Representatives shall file with the House appropriately 
        revised allocations under section 302(a) and revised 
        functional levels and budget aggregates to reflect that 
        bill.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``Committee''.
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            (B) Such revised allocations, functional levels, 
        and budget aggregates shall be considered for the 
        purposes of this Act as allocations, functional levels, 
        and budget aggregates contained in the most recently 
        agreed to concurrent resolution on the budget.
   concurrent resolution on the budget must be adopted before budget-
                   related legislation is considered
    Sec. 303. \2\ [2 U.S.C. 634] (a) In General.--Until the 
concurrent resolution on the budget for a fiscal year has been 
agreed to, it shall not be in order in the House of 
Representatives, with respect to the first fiscal year covered 
by that resolution, or the Senate, with respect to any fiscal 
year covered by that resolution, to consider any bill or joint 
resolution, amendment or motion thereto, or conference report 
thereon that----
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    \2\ In the House, the application of section 303 has been modified 
beginning with the 106th Congress, and currently with Sec. 511(a)(2) of 
H. Res. 6 (110th Congress), to clarify that, in the case of a reported 
bill or joint resolution considered pursuant to a special order, 
determinations under section 303 are for the text made in order as an 
original bill or joint resolution for the purpose of amendment or to 
the text on which the previous question is ordered directly to passage. 
See text of Sec. 511(a)(2) of H. Res. 6 (110th Congress) in this 
compilation.
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            (1) first provides new budget authority for that 
        fiscal year;
            (2) first provides an increase or decrease in 
        revenues during that fiscal year;
            (3) provides an increase or decrease in the public 
        debt limit to become effective during that fiscal year;
            (4) in the Senate only, first provides new 
        entitlement authority for that fiscal year; or
            (5) in the Senate only, first provides for an 
        increase or decrease in outlays for that fiscal year.
    (b) Exceptions in the House.-- In the House of 
Representatives, subsection (a) does not apply----
            (1)(A) to any bill or joint resolution, as 
        reported, providing advance discretionary new budget 
        authority that first becomes available for the first or 
        second fiscal year after the budget year; or
            (B) to any bill or joint resolution, as reported, 
        first increasing or decreasing revenues in a fiscal 
        year following the fiscal year to which the concurrent 
        resolution applies;
            (2) after May 15, to any general appropriation bill 
        or amendment thereto; or
            (3) to any bill or joint resolution unless it is 
        reported by a committee.
    (c) Application to Appropriation Measures in the Senate.--
--
            (1) In general.--Until the concurrent resolution on 
        the budget for a fiscal year has been agreed to and an 
        allocation has been made to the Committee on 
        Appropriations of the Senate under section 302(a) for 
        that year, it shall not be in order in the Senate to 
        consider any appropriation bill or joint resolution, 
        amendment or motion thereto, or conference report 
        thereon for that year or any subsequent year.
            (2) Exception.--Paragraph (1) does not apply to 
        appropriations legislation making advance 
        appropriations for the first or second fiscal year 
        after the year the allocation referred to in that 
        paragraph is made.
     permissible revisions of concurrent resolutions on the budget
    Sec. 304. \1\ [2 U.S.C. 635] At any time after the 
concurrent resolution on the budget for a fiscal year has been 
agreed to pursuant to section 301, and before the end of such 
fiscal year, the two Houses may adopt a concurrent resolution 
on the budget which revises or reaffirms the concurrent 
resolution on the budget for such fiscal year most recently 
agreed to.
---------------------------------------------------------------------------
    \1\ See also rule XXII of the Rules of the House of 
Representatives.
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 provisions relating to the consideration of concurrent resolutions on 
                               the budget
    Sec. 305. [2 U.S.C. 636] (a) \2\ Procedure in House of 
Representatives After Report of Committee; Debate.----
---------------------------------------------------------------------------
    \2\ See also clause 10(a) of rule XVIII of the Rules of the House 
of Representatives.
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            (1) When a concurrent resolution on the budget has 
        been reported by the Committee on the Budget of the 
        House of Representatives and has been referred to the 
        appropriate calendar of the House, it shall be in order 
        on any day thereafter, subject to clause 2(l)(6) of 
        rule XI \3\ of the Rules of the House of 
        Representatives, to move to proceed to the 
        consideration of the concurrent resolution. The motion 
        is highly privileged and is not debatable. An amendment 
        to the motion is not in order and it is not in order to 
        move to reconsider the vote by which the motion is 
        agreed to or disagreed to.
---------------------------------------------------------------------------
    \3\ Recodified beginning with the 106th Congress as clause 4 of 
rule XIII.
---------------------------------------------------------------------------
            (2) General debate on any concurrent resolution on 
        the budget in the House of Representatives shall be 
        limited to not more than 10 hours, which shall be 
        divided equally between the majority and minority 
        parties, plus such additional hours of debate as are 
        consumed pursuant to paragraph (3). A motion further to 
        limit debate is not debatable. A motion to recommit the 
        concurrent resolution is not in order, and it is not in 
        order to move to reconsider the vote by which the 
        concurrent resolution is agreed to or disagreed to.
            (3) Following the presentation of opening 
        statements on the concurrent resolution on the budget 
        for a fiscal year by the chairman and ranking minority 
        member of the Committee on the Budget of the House, 
        there shall be a period of up to four hours for debate 
        on economic goals and policies.
            (4) Only if a concurrent resolution on the budget 
        reported by the Committee on the Budget of the House 
        sets forth the economic goals (as described in sections 
        3(a)(2) and (4)(b) of the Full Employment Act of 1946) 
        which the estimates, amounts, and levels (as described 
        in section 301(a)) set forth in such resolution are 
        designed to achieve, shall it be in order to offer to 
        such resolution an amendment relating to such goals, 
        and such amendment shall be in order only if it also 
        proposes to alter such estimates, amounts, and levels 
        in germane fashion in order to be consistent with the 
        goals proposed in such amendment.
            (5) \1\ Consideration of any concurrent resolution 
        on the budget by the House of Representatives shall be 
        in the Committee of the Whole, and the resolution shall 
        be considered for amendment under the five-minute rule 
        in accordance with the applicable provisions of rule 
        XXIII \2\ of the Rules of the House of Representatives. 
        After the Committee rises and reports the resolution 
        back to the House, the previous question shall be 
        considered as ordered on the resolution and any 
        amendments thereto to final passage without intervening 
        motion; except that it shall be in order at any time 
        prior to final passage (notwithstanding any other rule 
        or provision of law) to adopt an amendment (or a series 
        of amendments) changing any figure or figures in the 
        resolution as so reported to the extent necessary to 
        achieve mathematical consistency.
---------------------------------------------------------------------------
    \1\ See also clause 10(c) of rule XVIII of the Rules of the House 
of Representatives.
    \2\ Recodified beginning with the 106th Congress as rule XVIII.
---------------------------------------------------------------------------
            (6) Debate in the House of Representatives on the 
        conference report on any concurrent resolution on the 
        budget shall be limited to not more than 5 hours, which 
        shall be divided equally between the majority and 
        minority parties. A motion further to limit debate is 
        not debatable. A motion to recommit the conference 
        report is not in order, and it is not in order to move 
        to reconsider the vote by which the conference report 
        is agreed to or disagreed to.
            (7) Appeals from decisions of the Chair relating to 
        the application of the Rules of the House of 
        Representatives to the procedure relating to any 
        concurrent resolution on the budget shall be decided 
        without debate.
    (b) Procedure in Senate After Report of Committee; Debate; 
Amendments.----
            (1) Debate in the Senate on any concurrent 
        resolution on the budget, and all amendments thereto 
        and debatable motions and appeals in connection 
        therewith, shall be limited to not more than 50 hours, 
        except that with respect to any concurrent resolution 
        referred to in section 304(a) \1\ all such debate shall 
        be limited to not more than 15 hours. The time shall be 
        equally divided between, and controlled by, the 
        majority leader and the minority leader or their 
        designees.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``section 304''.
---------------------------------------------------------------------------
            (2) Debate in the Senate on any amendment to a 
        concurrent resolution on the budget shall be limited to 
        2 hours, to be equally divided between, and controlled 
        by, the mover and the manager of the concurrent 
        resolution, and debate on any amendment to an 
        amendment, debatable motion, or appeal shall be limited 
        to 1 hour, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        concurrent resolution, except that in the event the 
        manager of the concurrent resolution is in favor of any 
        such amendment, motion, or appeal, the time in 
        opposition thereto shall be controlled by the minority 
        leader or his designee. No amendment that is not 
        germane to the provisions of such concurrent resolution 
        shall be received. Such leaders, or either of them, 
        may, from the time under their control on the passage 
        of the concurrent resolution, allot additional time to 
        any Senator during the consideration of any amendment, 
        debatable motion, or appeal.
            (3) Following the presentation of opening 
        statements on the concurrent resolution on the budget 
        for a fiscal year by the chairman and ranking minority 
        member of the Committee on the Budget of the Senate, 
        there shall be a period of up to four hours for debate 
        on economic goals and policies.
            (4) Subject to the other limitations of this Act, 
        only if a concurrent resolution on the budget reported 
        by the Committee on the Budget of the Senate sets forth 
        the economic goals (as described in sections 3(a)(2) 
        and 4(b) of the Employment Act of 1946) which the 
        estimates, amounts, and levels (as described in section 
        301(a)) set forth in such resolution are designed to 
        achieve, shall it be in order to offer to such 
        resolution an amendment relating to such goals, and 
        such amendment shall be in order only if it also 
        proposes to alter such estimates, amounts, and levels 
        in germane fashion in order to be consistent with the 
        goals proposed in such amendment.
            (5) A motion to further limit debate is not 
        debatable. A motion to recommit (except a motion to 
        recommit with instructions to report back within a 
        specified number of days, not to exceed 3, not counting 
        any day on which the Senate is not in session) is not 
        in order. Debate on any such motion to recommit shall 
        be limited to 1 hour, to be equally divided between, 
        and controlled by, the mover and the manager of the 
        concurrent resolution.
            (6) Notwithstanding any other rule, an amendment or 
        series of amendments to a concurrent resolution on the 
        budget proposed in the Senate shall always be in order 
        if such amendment or series of amendments proposes to 
        change any figure or figures then contained in such 
        concurrent resolution so as to make such concurrent 
        resolution mathematically consistent or so as to 
        maintain such consistency.
    (c) Action on Conference Reports in the Senate.----
            (1) A motion to proceed to the consideration of the 
        conference report on any concurrent resolution on the 
        budget (or a reconciliation bill or resolution) may be 
        made even though a previous motion to the same effect 
        has been disagreed to.
            (2) During the consideration in the Senate of the 
        conference report (or a message between Houses) on any 
        concurrent resolution on the budget, and all amendments 
        in disagreement, and all amendments thereto, and 
        debatable motions and appeals in connection therewith, 
        debate shall be limited to 10 hours, to be equally 
        divided between, and controlled by, the majority leader 
        and minority leader or their designees. Debate on any 
        debatable motion or appeal related to the conference 
        report (or a message between Houses) shall be limited 
        to 1 hour, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        conference report (or a message between Houses).
            (3) Should the conference report be defeated, 
        debate on any request for a new conference and the 
        appointment of conferrees shall be limited to 1 hour, 
        to be equally divided between, and controlled by, the 
        manager of the conference report and the minority 
        leader or his designee, and should any motion be made 
        to instruct the conferees before the conferees are 
        named, debate on such motion shall be limited to one-
        half hour, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        conference report. Debate on any amendment to any such 
        instructions shall be limited to 20 minutes, to be 
        equally divided between and controlled by the mover and 
        the manager of the conference report. In all cases when 
        the manager of the conference report is in favor of any 
        motion, appeal, or amendment, the time in opposition 
        shall be under the control of the minority leader or 
        his designee.
            (4) In any case in which there are amendments in 
        disagreement, time on each amendment shall be limited 
        to 30 minutes, to be equally divided between, and 
        controlled by, the manager of the conference report and 
        the minority leader or his designee. No amendment that 
        is not germane to the provisions of such amendments 
        shall be received.
    (d) Concurrent Resolution Must be Consistent in the 
Senate.--It shall not be in order in the Senate to vote on the 
question of agreeing to----
            (1) a concurrent resolution on the budget unless 
        the figures then contained in such resolution are 
        mathematically consistent; or
            (2) a conference report on a concurrent resolution 
        on the budget unless the figures contained in such 
        resolution, as recommended in such conference report, 
        are mathematically consistent.
legislation dealing with congressional budget must be handled by budget 
                               committees
    Sec. 306. [2 U.S.C. 637] No bill, resolution, amendment, 
motion, or conference report, dealing with any matter which is 
within the jurisdiction of the Committee on the Budget of 
either House shall be considered in that House unless it is a 
bill or resolution which has been reported by the Committee on 
the Budget of that House (or from the consideration of which 
such committee has been discharged) or unless it is an 
amendment to such a bill or resolution.
 house committee action on all appropriation bills to be completed by 
                                june 10
    Sec. 307. [2 U.S.C. 638] On or before June 10 of each year, 
the Committee on Appropriations of the House of Representatives 
shall report annual appropriation bills providing new budget 
authority under the jurisdiction of all of its subcommittees 
for the fiscal year which begins on October 1 of that year.
  reports, summaries, and projections of congressional budget actions
    Sec. 308. [2 U.S.C. 639] (a) \1\ Reports on Legislation 
Providing New Budget Authority or Providing an Increase or 
Decrease in Revenues or Tax Expenditures.----
---------------------------------------------------------------------------
    \1\ See also clauses 3(c)(2) and (d)(2) of rule XIII of the Rules 
of the House of Representatives.
---------------------------------------------------------------------------
            (1) Whenever a committee of either House reports to 
        its House a bill or joint resolution, or committee 
        amendment thereto, providing new budget authority 
        (other than continuing appropriations) or providing an 
        increase or decrease in revenues or tax expenditures 
        for a fiscal year (or fiscal years), the report 
        accompanying that bill or joint resolution shall 
        contain a statement, or the committee shall make 
        available such a statement in the case of an approved 
        committee amendment which is not reported to its House, 
        prepared after consultation with the Director of the 
        Congressional Budget Office----
                    (A) comparing the levels in such measure to 
                the appropriate allocations in the reports 
                submitted under section 302(b) for the most 
                recently agreed to concurrent resolution on the 
                budget for such fiscal year (or fiscal years);
                    (B) containing a projection by the 
                Congressional Budget Office of how such measure 
                will affect the levels of such budget 
                authority, budget outlays, revenues, or tax 
                expenditures under existing law for such fiscal 
                year (or fiscal years) and each of the four 
                ensuing fiscal years, if timely submitted 
                before such report is filed; and
                    (C) containing an estimate by the 
                Congressional Budget Office of the level of new 
                budget authority for assistance to State and 
                local governments provided by such measure, if 
                timely submitted before such report is filed.
            (2) Whenever a conference report is filed in either 
        House and such conference report or any amendment 
        reported in disagreement or any amendment contained in 
        the joint statement of managers to be proposed by the 
        conferees in the case of technical disagreement on such 
        bill or joint resolution provides new budget authority 
        (other than continuing appropriations) or provides an 
        increase or decrease in revenues for a fiscal year (or 
        fiscal years), the statement of managers accompanying 
        such conference report shall contain the information 
        described in paragraph (1), if available on a timely 
        basis. If such information is not available when the 
        conference report is filed, the committee shall make 
        such information available to Members as soon as 
        practicable prior to the consideration of such 
        conference report.
    (b) Up-To-Date Tabulations of Congressional Budget 
Action.----
            (1) The Director of the Congressional Budget Office 
        shall issue to the committees of the House of 
        Representatives and the Senate reports on at least a 
        monthly basis detailing and tabulating the progress of 
        congressional action on bills and joint resolutions 
        providing new budget authority or providing an increase 
        or decrease in revenues or tax expenditures for each 
        fiscal year covered by a concurrent resolution on the 
        budget. Such reports shall include but are not limited 
        to an up-to-date tabulation comparing the appropriate 
        aggregate and functional levels (including outlays) 
        included in the most recently adopted concurrent 
        resolution on the budget with the levels provided in 
        bills and joint resolutions reported by committees or 
        adopted by either House or by the Congress, and with 
        the levels provided by law for the fiscal year 
        preceding the first fiscal year covered by the 
        appropriate concurrent resolution.
            (2) The Committee on the Budget of each House shall 
        make available to Members of its House summary budget 
        scorekeeping reports. Such reports----
                    (A) shall be made available on at least a 
                monthly basis, but in any case frequently 
                enough to provide Members of each House an 
                accurate representation of the current status 
                of congressional consideration of the budget;
                    (B) shall include, but are not limited to 
                summaries of tabulations provided under 
                subsection (b)(1); and
                    (C) shall be based on information provided 
                under subsection (b)(1) without substantive 
                revision.
The chairman of the Committee on the Budget of the House of 
Representatives shall submit such reports to the Speaker.
    (c) Five-Year Projection of Congressional Budget Act.--As 
soon as practicable after the beginning of each fiscal year, 
the Director of the Congressional Budget Office shall issue a 
report projecting for the period of 5 fiscal years beginning 
with such fiscal year----
            (1) total new budget authority and total budget 
        outlays for each fiscal year in such period;
            (2) revenues to be received and the major sources 
        thereof, and the surplus or deficit, if any, for each 
        fiscal year in such period;
            (3) tax expenditures for each fiscal year in such 
        period; and
            (4) entitlement authority for each fiscal year in 
        such period.
             house approval of regular appropriation bills
    Sec. 309. [2 U.S.C. 640] It shall not be in order in the 
House of Representatives to consider any resolution providing 
for an adjournment period of more than three calendar days 
during the month of July until the House of Representatives has 
approved annual appropriation bills providing new budget 
authority under the jurisdiction of all the subcommittees of 
the Committee on Appropriations for the fiscal year beginning 
on October 1 of such year. For purposes of this section, the 
chairman of the Committee on Appropriations of the House of 
Representatives shall periodically advise the Speaker as to 
changes in jurisdiction among its various subcommittees.
                             reconciliation
    Sec. 310. [2 U.S.C. 641] (a) Inclusion of Reconciliation 
Directives in Concurrent Resolutions on the Budget.--A 
concurrent resolution on the budget for any fiscal year, to the 
extent necessary to effectuate the provisions and requirements 
of such resolution, shall----
            (1) specify the total amount by which----
                    (A) new budget authority for such fiscal 
                year;
                    (B) budget authority initially provided for 
                prior fiscal years;
                    (C) new entitlement authority which is to 
                become effective during such fiscal year; and
                    (D) credit authority for such fiscal year,
        contained in laws, bills, and resolutions within the 
        jurisdiction of a committee is to be changed and direct 
        that committee to determine and recommend changes to 
        accomplish a change of such total amount;
            (2) specify the total amount by which revenues are 
        to be changed and direct that the committees having 
        jurisdiction to determine and recommend changes in the 
        revenue laws, bills, and resolutions to accomplish a 
        change of such total amount;
            (3) specify the amounts by which the statutory 
        limit on the public debt is to be changed and direct 
        the committee having jurisdiction to recommend such 
        change; or
            (4) specify and direct any combination of the 
        matters described in paragraphs (1), (2), and (3) 
        (including a direction to achieve deficit reduction).
    (b) Legislative Procedure.--If a concurrent resolution 
containing directives to one or more committees to determine 
and recommend changes in laws, bills, or resolutions is agreed 
to in accordance with subsection (a), and----
            (1) only one committee of the House or the Senate 
        is directed to determine and recommend changes, that 
        committee shall promptly make such determination and 
        recommendations and report to its House reconciliation 
        legislation containing such recommendations; or
            (2) more than one committee of the House or the 
        Senate is directed to determine and recommend changes, 
        each such committee so directed shall promptly make 
        such determination and recommendations and submit such 
        recommendations to the Committee on the Budget of its 
        House, which upon receiving all such recommendations, 
        shall report to its House reconciliation legislation 
        carrying out all such recommendations without any 
        substantive revision.
For purposes of this subsection, a reconciliation resolution is 
a concurrent resolution directing the Clerk of the House of 
Representatives or the Secretary of the Senate, as the case may 
be, to make specified changes in bills and resolutions which 
have not been enrolled.
    (c) Compliance With Reconciliation Directions.--(1) Any 
committee of the House of Representatives or the Senate that is 
directed, pursuant to a concurrent resolution on the budget, to 
determine and recommend changes of the type described in 
paragraphs (1) and (2) of subsection (a) with respect to laws 
within its jurisdiction, shall be deemed to have complied with 
such directions----
            (A) if----
                    (i) the amount of the changes of the type 
                described in paragraph (1) of such subsection 
                recommended by such committee do not exceed or 
                fall below the amount of the changes such 
                committee was directed by such concurrent 
                resolution to recommend under that paragraph by 
                more than-- \1\
---------------------------------------------------------------------------
    \1\ A dash was inadvertently omitted as a result of the amendment 
made by section 10111 of Public Law 105-33 (111 Stat. 685).
---------------------------------------------------------------------------
                            (I) in the Senate, 20 percent of 
                        the total of the amounts of the changes 
                        such committee was directed to make 
                        under paragraphs (1) and (2) of such 
                        subsection; or
                            (II) in the House of 
                        Representatives, 20 percent of the sum 
                        of the absolute value of the changes 
                        the committee was directed to make 
                        under paragraph (1) and the absolute 
                        value of the changes the committee was 
                        directed to make under paragraph (2); 
                        and
                    (ii) the amount of the changes of the type 
                described in paragraph (2) of such subsection 
                recommended by such committee do not exceed or 
                fall below the amount of the changes such 
                committee was directed by such concurrent 
                resolution to recommend under that paragraph by 
                more than-- \1\
                            (I) in the Senate, 20 percent of 
                        the total of the amounts of the changes 
                        such committee was directed to make 
                        under paragraphs (1) and (2) of such 
                        subsection; or
                            (II) in the House of 
                        Representatives, 20 percent of the sum 
                        of the absolute value of the changes 
                        the committee was directed to make 
                        under paragraph (1) and the absolute 
                        value of the changes the committee was 
                        directed to make under paragraph (2); 
                        and
            (B) if the total amount of the changes recommended 
        by such committee is not less than the total of the 
        amounts of the changes such committee was directed to 
        make under paragraphs (1) and (2) of such subsection.
            (2)(A) Upon the reporting to the Committee on the 
        Budget of the Senate of a recommendation that shall be 
        deemed to have complied with such directions solely by 
        virtue of this subsection, the chairman of that 
        committee may file with the Senate appropriately 
        revised allocations under section 302(a) and revised 
        functional levels and aggregates to carry out this 
        subsection.
            (B) Upon the submission to the Senate of a 
        conference report recommending a reconciliation bill or 
        resolution in which a committee shall be deemed to have 
        complied with such directions solely by virtue of this 
        subsection, the chairman of the Committee on the Budget 
        of the Senate may file with the Senate appropriately 
        revised allocations under section 302(a) and revised 
        functional levels and aggregates to carry out this 
        subsection.
            (C) Allocations, functional levels, and aggregates 
        revised pursuant to this paragraph shall be considered 
        to be allocations, functional levels, and aggregates 
        contained in the concurrent resolution on the budget 
        pursuant to section 301.
            (D) Upon the filing of revised allocations pursuant 
        to this paragraph, the reporting committee shall report 
        revised allocations pursuant to section 302(b) to carry 
        out this subsection.
    (d) Limitation on Amendments to Reconciliation Bills and 
Resolutions.--
            (1) It shall not be in order in the House of 
        Representatives to consider any amendment to a 
        reconciliation bill or reconciliation resolution if 
        such amendment would have the effect of increasing any 
        specific budget outlays above the level of such outlays 
        provided in the bill or resolution (for the fiscal 
        years covered by the reconciliation instructions set 
        forth in the most recently agreed to concurrent 
        resolution on the budget), or would have the effect of 
        reducing any specific Federal revenues below the level 
        of such revenues provided in the bill or resolution 
        (for such fiscal years), unless such amendment makes at 
        least an equivalent reduction in other specific budget 
        outlays, an equivalent increase in other specific 
        Federal revenues, or an equivalent combination thereof 
        (for such fiscal years), except that a motion to strike 
        a provision providing new budget authority or new 
        entitlement authority may be in order.
            (2) It shall not be in order in the Senate to 
        consider any amendment to a reconciliation bill or 
        reconciliation resolution if such amendment would have 
        the effect of decreasing any specific budget outlay 
        reductions below the level of such outlay reductions 
        provided (for the fiscal years covered) in the 
        reconciliation instructions which relate to such bill 
        or resolution set forth in a resolution providing for 
        reconciliation, or would have the effect of reducing 
        Federal revenue increases below the level of such 
        revenue increases provided (for such fiscal years) in 
        such instructions relating to such bill or resolution, 
        unless such amendment makes a reduction in other 
        specific budget outlays, an increase in other specific 
        Federal revenues, or a combination thereof (for such 
        fiscal years) at least equivalent to any increase in 
        outlays or decrease in revenues provided by such 
        amendment, except that a motion to strike a provision 
        shall always be in order.
            (3) Paragraphs (1) and (2) shall not apply if a 
        declaration of war by the Congress is in effect.
            (4) For purposes of this section, the levels of 
        budget outlays and Federal revenues for a fiscal year 
        shall be determined on the basis of estimates made by 
        the Committee on the Budget of the House of 
        Representatives or of the Senate, as the case may be.
            (5) The Committee on Rules of the House of 
        Representatives may make in order amendments to achieve 
        changes specified by reconciliation directives 
        contained in a concurrent resolution on the budget if a 
        committee or committees of the House fail to submit 
        recommended changes to its Committee on the Budget 
        pursuant to its instruction.
    (e) Procedure in the Senate.--
            (1) Except as provided in paragraph (2), the 
        provisions of section 305 for the consideration in the 
        Senate of concurrent resolutions on the budget and 
        conference reports thereon shall also apply to the 
        consideration in the Senate of reconciliation bills 
        reported under subsection (b) and conference reports 
        thereon.
            (2) Debate in the Senate on any reconciliation bill 
        reported under subsection (b), and all amendments 
        thereto and debatable motions and appeals in connection 
        therewith, shall be limited to not more than 20 hours.
    (f) Completion of Reconciliation Process.----It shall not 
be in order in the House of Representatives to consider any 
resolution providing for an adjournment period of more than 
three calendar days during the month of July until the House of 
Representatives has completed action on the reconciliation 
legislation for the fiscal year beginning on October 1 of the 
calendar year to which the adjournment resolution pertains, if 
reconciliation legislation is required to be reported by the 
concurrent resolution on the budget for such fiscal year.
    (g) Limitation on Changes to the Social Security Act.--
Notwithstanding any other provision of law, it shall not be in 
order in the Senate or the House of Representatives to consider 
any reconciliation bill or reconciliation resolution reported 
pursuant to a concurrent resolution on the budget agreed to 
under section 301 or 304, or a joint resolution pursuant to 
section 258C of the Balanced Budget and Emergency Deficit 
Control Act of 1985, or any amendment thereto or conference 
report thereon, that contains recommendations with respect to 
the old-age, survivors, and disability insurance program 
established under title II of the Social Security Act.
      budget-related legislation must be within appropriate levels
    Sec. 311. [2 U.S.C. 642] (a) Enforcement of Budget 
Aggregates.----
            (1) In the house of representatives.--Except as 
        provided by subsection (c), after the Congress has 
        completed action on a concurrent resolution on the 
        budget for a fiscal year, it shall not be in order in 
        the House of Representatives to consider any bill, 
        joint resolution, amendment, motion, or conference 
        report providing new budget authority or reducing 
        revenues, if----
                    (A) the enactment of that bill or 
                resolution as reported;
                    (B) the adoption and enactment of that 
                amendment; or
                    (C) the enactment of that bill or 
                resolution in the form recommended in that 
                conference report;
        would cause the level of total new budget authority or 
        total outlays set forth in the applicable concurrent 
        resolution on the budget for the first fiscal year to 
        be exceeded, or would cause revenues to be less than 
        the level of total revenues set forth in that 
        concurrent resolution for the first fiscal year or for 
        the total of that first fiscal year and the ensuing 
        fiscal years for which allocations are provided under 
        section 302(a), except when a declaration of war by the 
        Congress is in effect.
            (2) In the senate.--After a concurrent resolution 
        on the budget is agreed to, it shall not be in order in 
        the Senate to consider any bill, joint resolution, 
        amendment, motion, or conference report that----
                    (A) would cause the level of total new 
                budget authority or total outlays set forth for 
                the first fiscal year in the applicable 
                resolution to be exceeded; or
                    (B) would cause revenues to be less than 
                the level of total revenues set forth for that 
                first fiscal year or for the total of that 
                first fiscal year and the ensuing fiscal years 
                in the applicable resolution for which 
                allocations are provided under section 302(a).
            (3) Enforcement of social security levels in the 
        senate.--After a concurrent resolution on the budget is 
        agreed to, it shall not be in order in the Senate to 
        consider any bill, joint resolution, amendment, motion, 
        or conference report that would cause a decrease in 
        social security surpluses or an increase in social 
        security deficits relative to the levels set forth in 
        the applicable resolution for the first fiscal year or 
        for the total of that fiscal year and the ensuing 
        fiscal years for which allocations are provided under 
        section 302(a).
    (b) Social Security Levels.----
            (1) In general.--For purposes of subsection (a)(3), 
        social security surpluses equal the excess of social 
        security revenues over social security outlays in a 
        fiscal year or years with such an excess and social 
        security deficits equal the excess of social security 
        outlays over social security revenues in a fiscal year 
        or years with such an excess.
            (2) Tax treatment.--For purposes of subsection 
        (a)(3), no provision of any legislation involving a 
        change in chapter 1 of the Internal Revenue Code of 
        1986 shall be treated as affecting the amount of social 
        security revenues or outlays unless that provision 
        changes the income tax treatment of social security 
        benefits.
    (c) Exception in the House of Representatives.--Subsection 
(a)(1) shall not apply in the House of Representatives to any 
bill, joint resolution, or amendment that provides new budget 
authority for a fiscal year or to any conference report on any 
such bill or resolution, if----
            (1) the enactment of that bill or resolution as 
        reported;
            (2) the adoption and enactment of that amendment; 
        or
            (3) the enactment of that bill or resolution in the 
        form recommended in that conference report;
would not cause the appropriate allocation of new budget 
authority made pursuant to section 302(a) for that fiscal year 
to be exceeded.
                   determinations and points of order
    Sec. 312. [2 U.S.C. 643] (a) Budget Committee 
Determinations.--For purposes of this title and title IV, the 
levels of new budget authority, outlays, direct spending, new 
entitlement authority, and revenues for a fiscal year shall be 
determined on the basis of estimates made by the Committee on 
the Budget of the House of Representatives or the Senate, as 
applicable.
    (b) Discretionary Spending Point of Order in the Senate.--
            (1) In general.--Except as otherwise provided in 
        this subsection, it shall not be in order in the Senate 
        to consider any bill or resolution (or amendment, 
        motion, or conference report on that bill or 
        resolution) that would exceed any of the discretionary 
        spending limits in section 251(c) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
            (2) Exceptions.--This subsection shall not apply if 
        a declaration of war by the Congress is in effect or if 
        a joint resolution pursuant to section 258 of the 
        Balanced Budget and Emergency Deficit Control Act of 
        1985 has been enacted.
    (c) Maximum Deficit Amount Point of Order in the Senate.--
It shall not be in order in the Senate to consider any 
concurrent resolution on the budget for a fiscal year, or to 
consider any amendment to that concurrent resolution, or to 
consider a conference report on that concurrent resolution, 
if----
            (1) the level of total outlays for the first fiscal 
        year set forth in that concurrent resolution or 
        conference report exceeds; or
            (2) the adoption of that amendment would result in 
        a level of total outlays for that fiscal year that 
        exceeds;
the recommended level of Federal revenues for that fiscal year, 
by an amount that is greater than the maximum deficit amount, 
if any, specified in the Balanced Budget and Emergency Deficit 
Control Act of 1985 for that fiscal year.
    (d) Timing of Points of Order in the Senate.--A point of 
order under this Act may not be raised against a bill, 
resolution, amendment, motion, or conference report while an 
amendment or motion, the adoption of which would remedy the 
violation of this Act, is pending before the Senate.
    (e) Points of Order in the Senate Against Amendments 
Between the Houses.--Each provision of this Act that 
establishes a point of order against an amendment also 
establishes a point of order in the Senate against an amendment 
between the Houses. If a point of order under this Act is 
raised in the Senate against an amendment between the Houses 
and the point of order is sustained, the effect shall be the 
same as if the Senate had disagreed to the amendment.
    (f) Effect of a Point of Order in the Senate.--In the 
Senate, if a point of order under this Act against a bill or 
resolution is sustained, the Presiding Officer shall then 
recommit the bill or resolution to the committee of appropriate 
jurisdiction for further consideration.
            extraneous matter in reconciliation legislation
    Sec. 313. [2 U.S.C. 644] (a) In General.--When the Senate 
is considering a reconciliation bill or a reconciliation 
resolution pursuant to section 310 (whether that bill or 
resolution originated in the Senate or the House) or section 
258C of the Balanced Budget and Emergency Deficit Control Act 
of 1985, upon a point of order being made by any Senator 
against material extraneous to the instructions to a committee 
which is contained in any title or provision of the bill or 
resolution or offered as an amendment to the bill or 
resolution, and the point of order is sustained by the Chair, 
any part of said title or provision that contains material 
extraneous to the instructions to said Committee as defined in 
subsection (b) shall be deemed stricken from the bill and may 
not be offered as an amendment from the floor.
    (b) Extraneous Provisions.--(1)(A) Except as provided in 
paragraph (2), a provision of a reconciliation bill or 
reconciliation resolution considered pursuant to section 310 
shall be considered extraneous if such provision does not 
produce a change in outlays or revenue, including changes in 
outlays and revenues brought about by changes in the terms and 
conditions under which outlays are made or revenues are 
required to be collected (but a provision in which outlay 
decreases or revenue increases exactly offset outlay increases 
or revenue decreases shall not be considered extraneous by 
virtue of this subparagraph); (B) any provision producing an 
increase in outlays or decrease in revenues shall be considered 
extraneous if the net effect of provisions reported by the 
Committee reporting the title containing the provision is that 
the Committee fails to achieve its reconciliation instructions; 
(C) a provision that is not in the jurisdiction of the 
Committee with jurisdiction over said title or provision shall 
be considered extraneous; (D) a provision shall be considered 
extraneous if it produces changes in outlays or revenues which 
are merely incidental to the non-budgetary components of the 
provision; (E) a provision shall be considered to be extraneous 
if it increases, or would increase, net outlays, or if it 
decreases, or would decrease, revenues during a fiscal year 
after the fiscal years covered by such reconciliation bill or 
reconciliation resolution, and such increases or decreases are 
greater than outlay reductions or revenue increases resulting 
from other provisions in such title in such year; and (F) a 
provision shall be considered extraneous if it violates section 
310(g).
    (2) A Senate-originated provision shall not be considered 
extraneous under paragraph (1)(A) if the Chairman and Ranking 
Minority Member of the Committee on the Budget and the Chairman 
and Ranking Minority Member of the Committee which reported the 
provision certify that: (A) the provision mitigates direct 
effects clearly attributable to a provision changing outlays or 
revenue and both provisions together produce a net reduction in 
the deficit; (B) the provision will result in a substantial 
reduction in outlays or a substantial increase in revenues 
during fiscal years after the fiscal years covered by the 
reconciliation bill or reconciliation resolution; (C) a 
reduction of outlays or an increase in revenues is likely to 
occur as a result of the provision, in the event of new 
regulations authorized by the provision or likely to be 
proposed, court rulings on pending litigation, or relationships 
between economic indices and stipulated statutory triggers 
pertaining to the provision, other than the regulations, court 
rulings or relationships currently projected by the 
Congressional Budget Office for scorekeeping purposes; or (D) 
such provision will be likely to produce a significant 
reduction in outlays or increase in revenues but, due to 
insufficient data, such reduction or increase cannot be 
reliably estimated.
    (3) A provision reported by a committee shall not be 
considered extraneous under paragraph (1)(C) if (A) the 
provision is an integral part of a provision or title, which if 
introduced as a bill or resolution would be referred to such 
committee, and the provision sets forth the procedure to carry 
out or implement the substantive provisions that were reported 
and which fall within the jurisdiction of such committee; or 
(B) the provision states an exception to, or a special 
application of, the general provision or title of which it is a 
part and such general provision or title if introduced as a 
bill or resolution would be referred to such committee.
    (c) Extraneous Materials.--Upon the reporting or discharge 
of a reconciliation bill or resolution pursuant to section 310 
in the Senate, and again upon the submission of a conference 
report on such a reconciliation bill or resolution, the 
Committee on the Budget of the Senate shall submit for the 
record a list of material considered to be extraneous under 
subsections (b)(1)(A), (b)(1)(B), and (b)(1)(E) of this section 
to the instructions of a committee as provided in this section. 
The inclusion or exclusion of a provision shall not constitute 
a determination of extraneousness by the Presiding Officer of 
the Senate.
    (d) Conference Reports.--When the Senate is considering a 
conference report on, or an amendment between the Houses in 
relation to, a reconciliation bill or reconciliation resolution 
pursuant to section 310, upon----
            (1) a point of order being made by any Senator 
        against extraneous material meeting the definition of 
        subsections (b)(1)(A), (b)(1)(B), (b)(1)(D), (b)(1)(E), 
        or (b)(1)(F), and
            (2) such point of order being sustained,
such material contained in such conference report or amendment 
shall be deemed stricken, and the Senate shall proceed, without 
intervening action or motion, to consider the question of 
whether the Senate shall recede from its amendment and concur 
with a further amendment, or concur in the House amendment with 
a further amendment, as the case may be, which further 
amendment shall consist of only that portion of the conference 
report or House amendment, as the case may be, not so stricken. 
Any such motion in the Senate shall be debatable for two hours. 
In any case in which such point of order is sustained against a 
conference report (or Senate amendment derived from such 
conference report by operation of this subsection), no further 
amendment shall be in order.
    (e) General Point of Order.--Notwithstanding any other law 
or rule of the Senate, it shall be in order for a Senator to 
raise a single point of order that several provisions of a 
bill, resolution, amendment, motion, or conference report 
violate this section. The Presiding Officer may sustain the 
point of order as to some or all of the provisions against 
which the Senator raised the point of order. If the Presiding 
Officer so sustains the point of order as to some of the 
provisions (including provisions of an amendment, motion, or 
conference report) against which the Senator raised the point 
of order, then only those provisions (including provisions of 
an amendment, motion, or conference report) against which the 
Presiding Officer sustains the point of order shall be deemed 
stricken pursuant to this section. Before the Presiding Officer 
rules on such a point of order, any Senator may move to waive 
such a point of order as it applies to some or all of the 
provisions against which the point of order was raised. Such a 
motion to waive is amendable in accordance with the rules and 
precedents of the Senate. After the Presiding Officer rules on 
such a point of order, any Senator may appeal the ruling of the 
Presiding Officer on such a point of order as it applies to 
some or all of the provisions on which the Presiding Officer 
ruled.
                              adjustments
    Sec. 314. [2 U.S.C. 645] (a) Adjustments.----
            (1) In general.--After the reporting of a bill or 
        joint resolution, the offering of an amendment thereto, 
        or the submission of a conference report thereon, the 
        chairman of the Committee on the Budget of the House of 
        Representatives or the Senate shall make the 
        adjustments set forth in paragraph (2) for the amount 
        of new budget authority in that measure (if that 
        measure meets the requirements set forth in subsection 
        (b)) and the outlays flowing from that budget 
        authority.
            (2) Matters to be adjusted.--The adjustments 
        referred to in paragraph (1) are to be made to----
                    (A) the discretionary spending limits, if 
                any, set forth in the appropriate concurrent 
                resolution on the budget;
                    (B) the allocations made pursuant to the 
                appropriate concurrent resolution on the budget 
                pursuant to section 302(a); and
                    (C) the budgetary aggregates as set forth 
                in the appropriate concurrent resolution on the 
                budget.
    (b) Amounts of Adjustments.--The adjustment referred to in 
subsection (a) shall be----
            (1) an amount provided and designated as an 
        emergency requirement pursuant to section 251(b)(2)(A) 
        or 252(e) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985;
            (2) an amount provided for continuing disability 
        reviews subject to the limitations in section 
        251(b)(2)(C) of that Act;
            (3) for any fiscal year through 2002, an amount 
        provided that is the dollar equivalent of the Special 
        Drawing Rights with respect to----
                    (A) an increase in the United States quota 
                as part of the International Monetary Fund 
                Eleventh General Review of Quotas (United 
                States Quota); or
                    (B) any increase in the maximum amount 
                available to the Secretary of the Treasury 
                pursuant to section 17 of the Bretton Woods 
                Agreements Act, as amended from time to time 
                (New Arrangements to Borrow);
            (4) an amount provided not to exceed $1,884,000,000 
        for the period of fiscal years 1998 through 2000 for 
        arrearages for international organizations, 
        international peacekeeping, and multilateral 
        development banks;
            (5) an amount provided for an earned income tax 
        credit compliance initiative but not to exceed----
                    (A) with respect to fiscal year 1998, 
                $138,000,000 in new budget authority;
                    (B) with respect to fiscal year 1999, 
                $143,000,000 in new budget authority;
                    (C) with respect to fiscal year 2000, 
                $144,000,000 in new budget authority;
                    (D) with respect to fiscal year 2001, 
                $145,000,000 in new budget authority; and
                    (E) with respect to fiscal year 2002, 
                $146,000,000 in new budget authority; or
            (6) in the case of an amount for adoption incentive 
        payments (as defined in section 251(b)(2)(G) of the 
        Balanced Budget and Emergency Deficit Control Act of 
        1985) for fiscal year 1999, 2000, 2001, 2002, or 2003 
        for the Department of Health and Human Services, an 
        amount not to exceed $20,000,000.
    (c) Application of Adjustments.--The adjustments made 
pursuant to subsection (a) for legislation shall----
            (1) apply while that legislation is under 
        consideration;
            (2) take effect upon the enactment of that 
        legislation; and
            (3) be published in the Congressional Record as 
        soon as practicable.
    (d) Reporting Revised Suballocations.--Following any 
adjustment made under subsection (a), the Committees on 
Appropriations of the Senate and the House of Representatives 
may report appropriately revised suballocations under section 
302(b) to carry out this section.
    (e) Definitions for CDRs.--As used in subsection (b)(2)----
            (1) the term ``continuing disability reviews'' 
        shall have the same meaning as provided in section 
        251(b)(2)(C)(ii) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985; and
            (2) the term ``new budget authority'' shall have 
        the same meaning as the term ``additional new budget 
        authority'' and the term ``outlays'' shall have the 
        same meaning as ``additional outlays'' in that section.
   effect of adoption of a special order of business in the house of 
                            representatives
    Sec. 315. [2 U.S.C. 645a] For purposes of a reported bill 
or joint resolution considered in the House of Representatives 
pursuant to a special order of business, the term ``as 
reported'' in this title or title IV shall be considered to 
refer to the text made in order as an original bill or joint 
resolution for the purpose of amendment or to the text on which 
the previous question is ordered directly to passage, as the 
case may be.

      TITLE IV--ADDITIONAL PROVISIONS TO IMPROVE FISCAL PROCEDURES

                       Part A--General Provisions

        budget-related legislation not subject to appropriations
    Sec. 401. [2 U.S.C. 651] (a) Controls on Certain Budget-
related Legislation Not Subject to Appropriations.--It shall 
not be in order in either the House of Representatives or the 
Senate to consider any bill or joint resolution (in the House 
of Representatives only, as reported), amendment, motion, or 
conference report that provides----
            (1) new authority to enter into contracts under 
        which the United States is obligated to make outlays;
            (2) new authority to incur indebtedness (other than 
        indebtedness incurred under chapter 31 of title 31 of 
        the United States Code) for the repayment of which the 
        United States is liable; or
            (3) new credit authority;
unless that bill, joint resolution, amendment, motion, or 
conference report also provides that the new authority is to be 
effective for any fiscal year only to the extent or in the 
amounts provided in advance in appropriation Acts.
    (b) Legislation Providing New Entitlement Authority.----
            (1) Point of order.--It shall not be in order in 
        either the House of Representatives or the Senate to 
        consider any bill or joint resolution (in the House of 
        Representatives only, as reported), amendment, motion, 
        or conference report that provides new entitlement 
        authority that is to become effective during the 
        current fiscal year. \1\
---------------------------------------------------------------------------
    \1\In the House, section 401(b) was clarified by section 2(a)(2) of 
H. Res. 5 (106th Congress) on January 6, 1999, to explain that pending 
the adoption by the Congress of a concurrent resolution on the budget 
for fiscal year 2000, a provision in a reported bill or joint 
resolution, or in an amendment thereto or a conference report thereon, 
that establishes a specified or minimum level of compensation to be 
funded by annual discretionary appropriations should not be considered 
as providing new entitlement authority within the meaning of the 
Congressional Budget Act of 1974.
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            (2) If any committee of the House of 
        Representatives or the Senate reports any bill or 
        resolution which provides new entitlement authority 
        which is to become effective during a fiscal year and 
        the amount of new budget authority which will be 
        required for such fiscal year if such bill or 
        resolution is enacted as so reported exceeds the 
        appropriate allocation of new budget authority reported 
        under section 302(b) \1\ in connection with the most 
        recently agreed to concurrent resolution on the budget 
        for such fiscal year, such bill or resolution shall 
        then be referred to the Committee on Appropriations of 
        the Senate or may then be referred to the Committee on 
        Appropriations of the House, as the case may be, with 
        instructions to report it, with the committee's 
        recommendations, within 15 calendar days (not counting 
        any day on which that House is not in session) 
        beginning with the day following the day on which it is 
        so referred. If the Committee on Appropriations of 
        either House fails to report a bill or resolution 
        referred to it under this paragraph within such 15-day 
        period, the committee shall automatically be discharged 
        from further consideration of such bill or resolution 
        and such bill or resolution shall be placed on the 
        appropriate calendar.
---------------------------------------------------------------------------
    \1\ So in law. Probably should have been amended to read ``section 
302(a)''.
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            (3) The Committee on Appropriations of each House 
        shall have jurisdiction to report any bill or 
        resolution referred to it under paragraph (2) with an 
        amendment which limits the total amount of new spending 
        authority provided in such bill or resolution.
    (c) Exceptions.----
            (1) Subsections (a) and (b) shall not apply to new 
        spending authority if the budget authority for outlays 
        which result from such new spending authority is 
        derived----
                    (A) from a trust fund established by the 
                Social Security Act (as in effect on the date 
                of the enactment of this Act); or
                    (B) from any other trust fund, 90 percent 
                or more of the receipts of which consist or 
                will consist of amounts (transferred from the 
                general fund of the Treasury) equivalent to 
                amounts of taxes (related to the purposes for 
                which such outlays are or will be made) 
                received in the Treasury under specified 
                provisions of the Internal Revenue Code of 
                1954.
            (2) Subsections (a) and (b) shall not apply to new 
        authority described in those subsections to the extent 
        that----
                    (A) the outlays resulting therefrom are 
                made by an organization which is (i) a mixed-
                ownership Government corporation (as defined in 
                section 201 of the Government Corporation 
                Control Act), or (ii) a wholly owned Government 
                corporation (as defined in section 101 of such 
                Act) which is specifically exempted by law from 
                compliance with any or all of the provisions of 
                that Act, as of the date of enactment of the 
                Balanced Budget and Emergency Deficit Control 
                Act of 1985; or
                    (B) the outlays resulting therefrom consist 
                exclusively of the proceeds of gifts or 
                bequests made to the United States for a 
                specific purpose.
                analysis by congressional budget office
    Sec. 402. \1\ [2 U.S.C. 653] The Director of the 
Congressional Budget Office shall, to the extent practicable, 
prepare for each bill or resolution of a public character 
reported by any committee of the House of Representatives or 
the Senate (except the Committee on Appropriations of each 
House), and submit to such committee----
---------------------------------------------------------------------------
    \1\ See also clause 3(c)(3) of rule XIII of the Rules of the House 
of Representatives.
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            (1) an estimate of the costs which would be 
        incurred in carrying out such bill or resolution in the 
        fiscal year in which it is to become effective and in 
        each of the 4 fiscal years following such fiscal year, 
        together with the basis for each such estimate;
            (2) a comparison of the estimates of costs 
        described in paragraph (1), with any available 
        estimates of costs made by such committee or by any 
        Federal agency; and
            (3) a description of each method for establishing a 
        Federal financial commitment contained in such bill or 
        resolution.
The estimates, comparison, and description so submitted shall 
be included in the report accompanying such bill or resolution 
if timely submitted to such committee before such report is 
filed.
          * * * * * * *
 study by the general accounting office of forms of federal financial 
         commitment that are not reviewed annually by congress
    Sec. 404. [2 U.S.C. 654] The General Accounting Office 
shall study those provisions of law which provide mandatory 
spending and report to the Congress its recommendations for the 
appropriate form of financing for activities or programs 
financed by such provisions not later than eighteen months 
after the effective date of this section. Such report shall be 
revised from time to time.
             off-budget agencies, programs, and activities
    Sec. 405. [2 U.S.C. 655] (a) Notwithstanding any other 
provision of law, budget authority, credit authority, and 
estimates of outlays and receipts for activities of the Federal 
budget which are off-budget immediately prior to the date of 
enactment of this section, not including activities of the 
Federal Old-Age and Survivors Insurance and Federal Disability 
Insurance Trust Funds, shall be included in a budget submitted 
pursuant to section 1105 of title 31, United States Code, and 
in a concurrent resolution on the budget reported pursuant to 
section 301 or section 304 of this Act and shall be considered, 
for purposes of this Act, budget authority, outlays, and 
spending authority in accordance with definitions set forth in 
this Act.
    (b) All receipts and disbursements of the Federal Financing 
Bank with respect to any obligations which are issued, sold, or 
guaranteed by a Federal agency shall be treated as a means of 
financing such agency for purposes of section 1105 of title 31, 
United States Code, and for purposes of this Act.
                           member user group
    Sec. 406. [2 U.S.C. 656] The Speaker of the House of 
Representatives, after consulting with the Minority Leader of 
the House, may appoint a Member User Group for the purpose of 
reviewing budgetary scorekeeping rules and practices of the 
House and advising the Speaker from time to time on the effect 
and impact of such rules and practices.

                      Part B--Federal Mandates \1\

SEC. 421. [2 U.S.C. 658] DEFINITIONS.

    For purposes of this part:
---------------------------------------------------------------------------
    \1\ Part B was added to title IV of the Congressional Budget and 
Impoundment Control Act of 1974 by section 101(a)(2) of the Unfunded 
Mandates Reform Act of 1995 (P.L. 104-4; 109 Stat. 50).
---------------------------------------------------------------------------
            (1) Agency.--The term ``agency'' has the same 
        meaning as defined in section 551(1) of title 5, United 
        States Code, but does not include independent 
        regulatory agencies.
            (2) Amount.--The term ``amount'', with respect to 
        an authorization of appropriations for Federal 
        financial assistance, means the amount of budget 
        authority for any Federal grant assistance program or 
        any Federal program providing loan guarantees or direct 
        loans.
            (3) Direct costs.--The term ``direct costs''----
                    (A)(i) in the case of a Federal 
                intergovernmental mandate, means the aggregate 
                estimated amounts that all State, local, and 
                tribal governments would be required to spend 
                or would be prohibited from raising in revenues 
                in order to comply with the Federal 
                intergovernmental mandate; or
                    (ii) in the case of a provision referred to 
                in paragraph (5)(A)(ii), means the amount of 
                Federal financial assistance eliminated or 
                reduced;
                    (B) in the case of a Federal private sector 
                mandate, means the aggregate estimated amounts 
                that the private sector will be required to 
                spend in order to comply with the Federal 
                private sector mandate;
                    (C) shall be determined on the assumption 
                that----
                            (i) State, local, and tribal 
                        governments, and the private sector 
                        will take all reasonable steps 
                        necessary to mitigate the costs 
                        resulting from the Federal mandate, and 
                        will comply with applicable standards 
                        of practice and conduct established by 
                        recognized professional or trade 
                        associations; and
                            (ii) reasonable steps to mitigate 
                        the costs shall not include increases 
                        in State, local, or tribal taxes or 
                        fees; and
                    (D) shall not include----
                            (i) estimated amounts that the 
                        State, local, and tribal governments 
                        (in the case of a Federal 
                        intergovernmental mandate) or the 
                        private sector (in the case of a 
                        Federal private sector mandate) would 
                        spend----
                                    (I) to comply with or carry 
                                out all applicable Federal, 
                                State, local, and tribal laws 
                                and regulations in effect at 
                                the time of the adoption of the 
                                Federal mandate for the same 
                                activity as is affected by that 
                                Federal mandate; or
                                    (II) to comply with or 
                                carry out State, local, and 
                                tribal governmental programs, 
                                or private-sector business or 
                                other activities in effect at 
                                the time of the adoption of the 
                                Federal mandate for the same 
                                activity as is affected by that 
                                mandate; or
                            (ii) expenditures to the extent 
                        that such expenditures will be offset 
                        by any direct savings to the State, 
                        local, and tribal governments, or by 
                        the private sector, as a result of----
                                    (I) compliance with the 
                                Federal mandate; or
                                    (II) other changes in 
                                Federal law or regulation that 
                                are enacted or adopted in the 
                                same bill or joint resolution 
                                or proposed or final Federal 
                                regulation and that govern the 
                                same activity as is affected by 
                                the Federal mandate.
            (4) Direct savings.--The term ``direct savings'', 
        when used with respect to the result of compliance with 
        the Federal mandate----
                    (A) in the case of a Federal 
                intergovernmental mandate, means the aggregate 
                estimated reduction in costs to any State, 
                local, or tribal government as a result of 
                compliance with the Federal intergovernmental 
                mandate; and
                    (B) in the case of a Federal private sector 
                mandate, means the aggregate estimated 
                reduction in costs to the private sector as a 
                result of compliance with the Federal private 
                sector mandate.
            (5) Federal intergovernmental mandate.--The term 
        ``Federal intergovernmental mandate'' means----
                    (A) any provision in legislation, statute, 
                or regulation that----
                            (i) would impose an enforceable 
                        duty upon State, local, or tribal 
                        governments, except----
                                    (I) a condition of Federal 
                                assistance; or
                                    (II) a duty arising from 
                                participation in a voluntary 
                                Federal program, except as 
                                provided in subparagraph (B)) 
                                \1\; or
---------------------------------------------------------------------------
    \1\ So in law. Second closing parenthesis probably should not 
appear.
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                            (ii) would reduce or eliminate the 
                        amount of authorization of 
                        appropriations for----
                                    (I) Federal financial 
                                assistance that would be 
                                provided to State, local, or 
                                tribal governments for the 
                                purpose of complying with any 
                                such previously imposed duty 
                                unless such duty is reduced or 
                                eliminated by a corresponding 
                                amount; or
                                    (II) the control of borders 
                                by the Federal Government; or 
                                reimbursement to State, local, 
                                or tribal governments for the 
                                net cost associated with 
                                illegal, deportable, and 
                                excludable aliens, including 
                                court-mandated expenses related 
                                to emergency health care, 
                                education or criminal justice; 
                                when such a reduction or 
                                elimination would result in 
                                increased net costs to State, 
                                local, or tribal governments in 
                                providing education or 
                                emergency health care to, or 
                                incarceration of, illegal 
                                aliens; except that this 
                                subclause shall not be in 
                                effect with respect to a State, 
                                local, or tribal government, to 
                                the extent that such government 
                                has not fully cooperated in the 
                                efforts of the Federal 
                                Government to locate, 
                                apprehend, and deport illegal 
                                aliens;
                    (B) any provision in legislation, statute, 
                or regulation that relates to a then-existing 
                Federal program under which $500,000,000 or 
                more is provided annually to State, local, and 
                tribal governments under entitlement authority, 
                if the provision----
                            (i)(I) would increase the 
                        stringency of conditions of assistance 
                        to State, local, or tribal governments 
                        under the program; or
                            (II) would place caps upon, or 
                        otherwise decrease, the Federal 
                        Government's responsibility to provide 
                        funding to State, local, or tribal 
                        governments under the program; and
                            (ii) the State, local, or tribal 
                        governments that participate in the 
                        Federal program lack authority under 
                        that program to amend their financial 
                        or programmatic responsibilities to 
                        continue providing required services 
                        that are affected by the legislation, 
                        statute, or regulation.
            (6) Federal mandate.--The term ``Federal mandate'' 
        means a Federal intergovernmental mandate or a Federal 
        private sector mandate, as defined in paragraphs (5) 
        and (7).
            (7) Federal private sector mandate.--The term 
        ``Federal private sector mandate'' means any provision 
        in legislation, statute, or regulation that----
                    (A) would impose an enforceable duty upon 
                the private sector except----
                            (i) a condition of Federal 
                        assistance; or
                            (ii) a duty arising from 
                        participation in a voluntary Federal 
                        program; or
                    (B) would reduce or eliminate the amount of 
                authorization of appropriations for Federal 
                financial assistance that will be provided to 
                the private sector for the purposes of ensuring 
                compliance with such duty.
            (8) Local government.--The term ``local 
        government'' has the same meaning as defined in section 
        6501(6) of title 31, United States Code.
            (9) Private sector.--The term ``private sector'' 
        means all persons or entities in the United States, 
        including individuals, partnerships, associations, 
        corporations, and educational and nonprofit 
        institutions, but shall not include State, local, or 
        tribal governments.
            (10) Regulation; rule.--The term ``regulation'' or 
        ``rule'' (except with respect to a rule of either House 
        of the Congress) has the meaning of ``rule'' as defined 
        in section 601(2) of title 5, United States Code.
            (11) Small government.--The term ``small 
        government'' means any small governmental jurisdictions 
        defined in section 601(5) of title 5, United States 
        Code, and any tribal government.
            (12) State.--The term ``State'' has the same 
        meaning as defined in section 6501(9) of title 31, 
        United States Code.
            (13) Tribal government.--The term ``tribal 
        government'' means any Indian tribe, band, nation, or 
        other organized group or community, including any 
        Alaska Native village or regional or village 
        corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (85 Stat. 688; 
        43 U.S.C. 1601 et seq.) which is recognized as eligible 
        for the special programs and services provided by the 
        United States to Indians because of their special 
        status as Indians.

SEC. 422. [2 U.S.C. 658A] EXCLUSIONS.

    This part shall not apply to any provision in a bill, joint 
resolution, amendment, motion, or conference report before 
Congress that----
            (1) enforces constitutional rights of individuals;
            (2) establishes or enforces any statutory rights 
        that prohibit discrimination on the basis of race, 
        color, religion, sex, national origin, age, handicap, 
        or disability;
            (3) requires compliance with accounting and 
        auditing procedures with respect to grants or other 
        money or property provided by the Federal Government;
            (4) provides for emergency assistance or relief at 
        the request of any State, local, or tribal government 
        or any official of a State, local, or tribal 
        government;
            (5) is necessary for the national security or the 
        ratification or implementation of international treaty 
        obligations;
            (6) the President designates as emergency 
        legislation and that the Congress so designates in 
        statute; or
            (7) relates to the old-age, survivors, and 
        disability insurance program under title II of the 
        Social Security Act (including taxes imposed by 
        sections 3101(a) and 3111(a) of the Internal Revenue 
        Code of 1986 (relating to old-age, survivors, and 
        disability insurance)).

SEC. 423. [2 U.S.C. 658B] DUTIES OF CONGRESSIONAL COMMITTEES.

    (a) In General.--When a committee of authorization of the 
Senate or the House of Representatives reports a bill or joint 
resolution of public character that includes any Federal 
mandate, the report of the committee accompanying the bill or 
joint resolution shall contain the information required by 
subsections (c) and (d).
    (b) Submission of Bills to the Director.--When a committee 
of authorization of the Senate or the House of Representatives 
orders reported a bill or joint resolution of a public 
character, the committee shall promptly provide the bill or 
joint resolution to the Director of the Congressional Budget 
Office and shall identify to the Director any Federal mandates 
contained in the bill or resolution.
    (c) Reports on Federal Mandates.--Each report described 
under subsection (a) shall contain----
            (1) an identification and description of any 
        Federal mandates in the bill or joint resolution, 
        including the direct costs to State, local, and tribal 
        governments, and to the private sector, required to 
        comply with the Federal mandates;
            (2) a qualitative, and if practicable, a 
        quantitative assessment of costs and benefits 
        anticipated from the Federal mandates (including the 
        effects on health and safety and the protection of the 
        natural environment); and
            (3) a statement of the degree to which a Federal 
        mandate affects both the public and private sectors and 
        the extent to which Federal payment of public sector 
        costs or the modification or termination of the Federal 
        mandate as provided under section 425(a)(2) would 
        affect the competitive balance between State, local, or 
        tribal governments and the private sector including a 
        description of the actions, if any, taken by the 
        committee to avoid any adverse impact on the private 
        sector or the competitive balance between the public 
        sector and the private sector.
    (d) Intergovernmental Mandates.--If any of the Federal 
mandates in the bill or joint resolution are Federal 
intergovernmental mandates, the report required under 
subsection (a) shall also contain----
            (1)(A) a statement of the amount, if any, of 
        increase or decrease in authorization of appropriations 
        under existing Federal financial assistance programs, 
        or of authorization of appropriations for new Federal 
        financial assistance, provided by the bill or joint 
        resolution and usable for activities of State, local, 
        or tribal governments subject to the Federal 
        intergovernmental mandates;
            (B) a statement of whether the committee intends 
        that the Federal intergovernmental mandates be partly 
        or entirely unfunded, and if so, the reasons for that 
        intention; and
            (C) if funded in whole or in part, a statement of 
        whether and how the committee has created a mechanism 
        to allocate the funding in a manner that is reasonably 
        consistent with the expected direct costs among and 
        between the respective levels of State, local, and 
        tribal government;
            (2) any existing sources of Federal assistance in 
        addition to those identified in paragraph (1) that may 
        assist State, local, and tribal governments in meeting 
        the direct costs of the Federal intergovernmental 
        mandates; and
            (3) if the bill or joint resolution would make the 
        reduction specified in section 421(5)(B)(i)(II), a 
        statement of how the committee specifically intends the 
        States to implement the reduction and to what extent 
        the legislation provides additional flexibility, if 
        any, to offset the reduction.
    (e) Preemption Clarification and Information.--When a 
committee of authorization of the Senate or the House of 
Representatives reports a bill or joint resolution of public 
character, the committee report accompanying the bill or joint 
resolution shall contain, if relevant to the bill or joint 
resolution, an explicit statement on the extent to which the 
bill or joint resolution is intended to preempt any State, 
local, or tribal law, and, if so, an explanation of the effect 
of such preemption.
    (f) Publication of Statement From the Director.----
            (1) In general.--Upon receiving a statement from 
        the Director under section 424, a committee of the 
        Senate or the House of Representatives shall publish 
        the statement in the committee report accompanying the 
        bill or joint resolution to which the statement relates 
        if the statement is available at the time the report is 
        printed.
            (2) Other publication of statement of director.--If 
        the statement is not published in the report, or if the 
        bill or joint resolution to which the statement relates 
        is expected to be considered by the Senate or the House 
        of Representatives before the report is published, the 
        committee shall cause the statement, or a summary 
        thereof, to be published in the Congressional Record in 
        advance of floor consideration of the bill or joint 
        resolution.

SEC. 424. [2 U.S.C. 658C] DUTIES OF THE DIRECTOR; STATEMENTS ON BILLS 
                    AND JOINT RESOLUTIONS OTHER THAN APPROPRIATIONS 
                    BILLS AND JOINT RESOLUTIONS.

    (a) Federal Intergovernmental Mandates in Reported Bills 
and Resolutions.--For each bill or joint resolution of a public 
character reported by any committee of authorization of the 
Senate or the House of Representatives, the Director of the 
Congressional Budget Office shall prepare and submit to the 
committee a statement as follows:
            (1) Contents.--If the Director estimates that the 
        direct cost of all Federal intergovernmental mandates 
        in the bill or joint resolution will equal or exceed 
        $50,000,000 (adjusted annually for inflation) in the 
        fiscal year in which any Federal intergovernmental 
        mandate in the bill or joint resolution (or in any 
        necessary implementing regulation) would first be 
        effective or in any of the 4 fiscal years following 
        such fiscal year, the Director shall so state, specify 
        the estimate, and briefly explain the basis of the 
        estimate.
            (2) Estimates.--Estimates required under paragraph 
        (1) shall include estimates (and brief explanations of 
        the basis of the estimates) of----
                    (A) the total amount of direct cost of 
                complying with the Federal intergovernmental 
                mandates in the bill or joint resolution;
                    (B) if the bill or resolution contains an 
                authorization of appropriations under section 
                425(a)(2)(B), the amount of new budget 
                authority for each fiscal year for a period not 
                to exceed 10 years beyond the effective date 
                necessary for the direct cost of the 
                intergovernmental mandate; and
                    (C) the amount, if any, of increase in 
                authorization of appropriations under existing 
                Federal financial assistance programs, or of 
                authorization of appropriations for new Federal 
                financial assistance, provided by the bill or 
                joint resolution and usable by State, local, or 
                tribal governments for activities subject to 
                the Federal intergovernmental mandates.
            (3) Additional flexibility information.--The 
        Director shall include in the statement submitted under 
        this subsection, in the case of legislation that makes 
        changes as described in section 421(5)(B)(i)(II)----
                    (A) if no additional flexibility is 
                provided in the legislation, a description of 
                whether and how the States can offset the 
                reduction under existing law; or
                    (B) if additional flexibility is provided 
                in the legislation, whether the resulting 
                savings would offset the reductions in that 
                program assuming the States fully implement 
                that additional flexibility.
            (4) Estimate not feasible.--If the Director 
        determines that it is not feasible to make a reasonable 
        estimate that would be required under paragraphs (1) 
        and (2), the Director shall not make the estimate, but 
        shall report in the statement that the reasonable 
        estimate cannot be made and shall include the reasons 
        for that determination in the statement. If such 
        determination is made by the Director, a point of order 
        under this part shall lie only under section 425(a)(1) 
        and as if the requirement of section 425(a)(1) had not 
        been met.
    (b) Federal Private Sector Mandates in Reported Bills and 
Joint Resolutions.--For each bill or joint resolution of a 
public character reported by any committee of authorization of 
the Senate or the House of Representatives, the Director of the 
Congressional Budget Office shall prepare and submit to the 
committee a statement as follows:
            (1) Contents.--If the Director estimates that the 
        direct cost of all Federal private sector mandates in 
        the bill or joint resolution will equal or exceed 
        $100,000,000 (adjusted annually for inflation) in the 
        fiscal year in which any Federal private sector mandate 
        in the bill or joint resolution (or in any necessary 
        implementing regulation) would first be effective or in 
        any of the 4 fiscal years following such fiscal year, 
        the Director shall so state, specify the estimate, and 
        briefly explain the basis of the estimate.
            (2) Estimates.--Estimates required under paragraph 
        (1) shall include estimates (and a brief explanation of 
        the basis of the estimates) of----
                    (A) the total amount of direct costs of 
                complying with the Federal private sector 
                mandates in the bill or joint resolution; and
                    (B) the amount, if any, of increase in 
                authorization of appropriations under existing 
                Federal financial assistance programs, or of 
                authorization of appropriations for new Federal 
                financial assistance, provided by the bill or 
                joint resolution usable by the private sector 
                for the activities subject to the Federal 
                private sector mandates.
            (3) Estimate not feasible.--If the Director 
        determines that it is not feasible to make a reasonable 
        estimate that would be required under paragraphs (1) 
        and (2), the Director shall not make the estimate, but 
        shall report in the statement that the reasonable 
        estimate cannot be made and shall include the reasons 
        for that determination in the statement.
    (c) Legislation Falling Below the Direct Costs 
Thresholds.--If the Director estimates that the direct costs of 
a Federal mandate will not equal or exceed the thresholds 
specified in subsections (a) and (b), the Director shall so 
state and shall briefly explain the basis of the estimate.
    (d) Amended Bills and Joint Resolutions; Conference 
Reports.--If a bill or joint resolution is passed in an amended 
form (including if passed by one House as an amendment in the 
nature of a substitute for the text of a bill or joint 
resolution from the other House) or is reported by a committee 
of conference in amended form, and the amended form contains a 
Federal mandate not previously considered by either House or 
which contains an increase in the direct cost of a previously 
considered Federal mandate, then the committee of conference 
shall ensure, to the greatest extent practicable, that the 
Director shall prepare a statement as provided in this 
subsection or a supplemental statement for the bill or joint 
resolution in that amended form.

SEC. 425. [2 U.S.C. 658D] LEGISLATION SUBJECT TO POINT OF ORDER. \1\
---------------------------------------------------------------------------

    \1\ Clause 11(a) of Rule XVIII of the Rules of the House of 
Representatives provides for the enforcement of this section. Such 
paragraph provides as follows:
    (a) In the Committee of the Whole on the state of the Union, an 
amendment proposing only to strike an unfunded mandate from the portion 
of the bill then open to amendment, if otherwise in order, may be 
precluded from consideration only by specific terms of a special order 
of the House.
---------------------------------------------------------------------------
    (a) In General.--It shall not be in order in the Senate or 
the House of Representatives to consider----
            (1) any bill or joint resolution that is reported 
        by a committee unless the committee has published a 
        statement of the Director on the direct costs of 
        Federal mandates in accordance with section 423(f) 
        before such consideration, except this paragraph shall 
        not apply to any supplemental statement prepared by the 
        Director under section 424(d); and
            (2) any bill, joint resolution, amendment, motion, 
        or conference report that would increase the direct 
        costs of Federal intergovernmental mandates by an 
        amount that causes the thresholds specified in section 
        424(a)(1) to be exceeded, unless----
                    (A) the bill, joint resolution, amendment, 
                motion, or conference report provides new 
                budget authority or new entitlement authority 
                in the House of Representatives or direct 
                spending authority in the Senate for each 
                fiscal year for such mandates included in the 
                bill, joint resolution, amendment, motion, or 
                conference report in an amount equal to or 
                exceeding the direct costs of such mandate; or
                    (B) the bill, joint resolution, amendment, 
                motion, or conference report includes an 
                authorization for appropriations in an amount 
                equal to or exceeding the direct costs of such 
                mandate, and----
                            (i) identifies a specific dollar 
                        amount of the direct costs of such 
                        mandate for each year up to 10 years 
                        during which such mandate shall be in 
                        effect under the bill, joint 
                        resolution, amendment, motion or 
                        conference report, and such estimate is 
                        consistent with the estimate determined 
                        under subsection (e) for each fiscal 
                        year;
                            (ii) identifies any appropriation 
                        bill that is expected to provide for 
                        Federal funding of the direct cost 
                        referred to under clause (i); and
                            (iii)(I) provides that for any 
                        fiscal year the responsible Federal 
                        agency shall determine whether there 
                        are insufficient appropriations for 
                        that fiscal year to provide for the 
                        direct costs under clause (i) of such 
                        mandate, and shall (no later than 30 
                        days after the beginning of the fiscal 
                        year) notify the appropriate 
                        authorizing committees of Congress of 
                        the determination and submit either----
                                    (aa) a statement that the 
                                agency has determined, based on 
                                a re-estimate of the direct 
                                costs of such mandate, after 
                                consultation with State, local, 
                                and tribal governments, that 
                                the amount appropriated is 
                                sufficient to pay for the 
                                direct costs of such mandate; 
                                or
                                    (bb) legislative 
                                recommendations for either 
                                implementing a less costly 
                                mandate or making such mandate 
                                ineffective for the fiscal 
                                year;
                            (II) provides for expedited 
                        procedures for the consideration of the 
                        statement or legislative 
                        recommendations referred to in 
                        subclause (I) by Congress no later than 
                        30 days after the statement or 
                        recommendations are submitted to 
                        Congress; and
                            (III) provides that such mandate 
                        shall--
                                    (aa) in the case of a 
                                statement referred to in 
                                subclause (I)(aa), cease to be 
                                effective 60 days after the 
                                statement is submitted unless 
                                Congress has approved the 
                                agency's determination by joint 
                                resolution during the 60-day 
                                period;
                                    (bb) cease to be effective 
                                60 days after the date the 
                                legislative recommendations of 
                                the responsible Federal agency 
                                are submitted to Congress under 
                                subclause (I)(bb) unless 
                                Congress provides otherwise by 
                                law; or
                                    (cc) in the case that such 
                                mandate that has not yet taken 
                                effect, continue not to be 
                                effective unless Congress 
                                provides otherwise by law.
    (b) Rule of Construction.--The provisions of subsection 
(a)(2)(B)(iii) shall not be construed to prohibit or otherwise 
restrict a State, local, or tribal government from voluntarily 
electing to remain subject to the original Federal 
intergovernmental mandate, complying with the programmatic or 
financial responsibilities of the original Federal 
intergovernmental mandate and providing the funding necessary 
consistent with the costs of Federal agency assistance, 
monitoring, and enforcement.
    (c) Committee on Appropriations.----
            (1) Application.--The provisions of subsection 
        (a)----
                    (A) shall not apply to any bill or 
                resolution reported by the Committee on 
                Appropriations of the Senate or the House of 
                Representatives; except
                    (B) shall apply to----
                            (i) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate contained in 
                        any bill or resolution reported by the 
                        Committee on Appropriations of the 
                        Senate or House of Representatives;
                            (ii) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate contained in 
                        any amendment offered to a bill or 
                        resolution reported by the Committee on 
                        Appropriations of the Senate or House 
                        of Representatives;
                            (iii) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate in a 
                        conference report accompanying a bill 
                        or resolution reported by the Committee 
                        on Appropriations of the Senate or 
                        House of Representatives; and
                            (iv) any legislative provision 
                        increasing direct costs of a Federal 
                        intergovernmental mandate contained in 
                        any amendments in disagreement between 
                        the two Houses to any bill or 
                        resolution reported by the Committee on 
                        Appropriations of the Senate or House 
                        of Representatives.
            (2) Certain provisions stricken in senate.--Upon a 
        point of order being made by any Senator against any 
        provision listed in paragraph (1)(B), and the point of 
        order being sustained by the Chair, such specific 
        provision shall be deemed stricken from the bill, 
        resolution, amendment, amendment in disagreement, or 
        conference report and may not be offered as an 
        amendment from the floor.
    (d) Determinations of Applicability to Pending 
Legislation.--For purposes of this section, in the Senate, the 
presiding officer of the Senate shall consult with the 
Committee on Governmental Affairs, to the extent practicable, 
on questions concerning the applicability of this part to a 
pending bill, joint resolution, amendment, motion, or 
conference report.
    (e) Determinations of Federal Mandate Levels.--For purposes 
of this section, in the Senate, the levels of Federal mandates 
for a fiscal year shall be determined based on the estimates 
made by the Committee on the Budget.

SEC. 426. [2 U.S.C. 658E] PROVISIONS RELATING TO THE HOUSE OF 
                    REPRESENTATIVES.

    (a) Enforcement in the House of Representatives.--It shall 
not be in order in the House of Representatives to consider a 
rule or order that waives the application of section 425.
    (b) Disposition of Points of Order.----
            (1) Application to the house of representatives.--
        This subsection shall apply only to the House of 
        Representatives.
            (2) Threshold burden.--In order to be cognizable by 
        the Chair, a point of order under section 425 or 
        subsection (a) of this section must specify the precise 
        language on which it is premised.
            (3) Question of consideration.--As disposition of 
        points of order under section 425 or subsection (a) of 
        this section, the Chair shall put the question of 
        consideration with respect to the proposition that is 
        the subject of the points of order.
            (4) Debate and intervening motions.--A question of 
        consideration under this section shall be debatable for 
        10 minutes by each Member initiating a point of order 
        and for 10 minutes by an opponent on each point of 
        order, but shall otherwise be decided without 
        intervening motion except one that the House adjourn or 
        that the Committee of the Whole rise, as the case may 
        be.
            (5) Effect on amendment in order as original 
        text.--The disposition of the question of consideration 
        under this subsection with respect to a bill or joint 
        resolution shall be considered also to determine the 
        question of consideration under this subsection with 
        respect to an amendment made in order as original text.

SEC. 427. [2 U.S.C. 658F] REQUESTS TO THE CONGRESSIONAL BUDGET OFFICE 
                    FROM SENATORS.

    At the written request of a Senator, the Director shall, to 
the extent practicable, prepare an estimate of the direct costs 
of a Federal intergovernmental mandate contained in an 
amendment of such Senator.

SEC. 428. [2 U.S.C. 658G] CLARIFICATION OF APPLICATION.

    (a) In General.--This part applies to any bill, joint 
resolution, amendment, motion, or conference report that 
reauthorizes appropriations, or that amends existing 
authorizations of appropriations, to carry out any statute, or 
that otherwise amends any statute, only if enactment of the 
bill, joint resolution, amendment, motion, or conference 
report----
            (1) would result in a net reduction in or 
        elimination of authorization of appropriations for 
        Federal financial assistance that would be provided to 
        State, local, or tribal governments for use for the 
        purpose of complying with any Federal intergovernmental 
        mandate, or to the private sector for use to comply 
        with any Federal private sector mandate, and would not 
        eliminate or reduce duties established by the Federal 
        mandate by a corresponding amount; or
            (2) would result in a net increase in the aggregate 
        amount of direct costs of Federal intergovernmental 
        mandates or Federal private sector mandates other than 
        as described in paragraph (1).
    (b) Direct Costs.----
            (1) In general.--For purposes of this part, the 
        direct cost of the Federal mandates in a bill, joint 
        resolution, amendment, motion, or conference report 
        that reauthorizes appropriations, or that amends 
        existing authorizations of appropriations, to carry out 
        a statute, or that otherwise amends any statute, means 
        the net increase, resulting from enactment of the bill, 
        joint resolution, amendment, motion, or conference 
        report, in the amount described under paragraph (2)(A) 
        over the amount described under paragraph (2)(B).
            (2) Amounts.--The amounts referred to under 
        paragraph (1) are----
                    (A) the aggregate amount of direct costs of 
                Federal mandates that would result under the 
                statute if the bill, joint resolution, 
                amendment, motion, or conference report is 
                enacted; and
                    (B) the aggregate amount of direct costs of 
                Federal mandates that would result under the 
                statute if the bill, joint resolution, 
                amendment, motion, or conference report were 
                not enacted.
            (3) Extension of authorization of appropriations.--
        For purposes of this section, in the case of 
        legislation to extend authorization of appropriations, 
        the authorization level that would be provided by the 
        extension shall be compared to the authorization level 
        for the last year in which authorization of 
        appropriations is already provided.

    [FOR PART B OF TITLE IV, AS ADDED BY SECTION 101(A)(2) OF THE 
                    UNFUNDED MANDATES REFORM ACT OF 1995 (P.L. 104-4; 
                    109 STAT. 50), SEE APPENDIX.] deg.

                         TITLE V--CREDIT REFORM

 H4  deg.SEC. 500. SHORT TITLE.

    This title may be cited as the ``Federal Credit Reform Act 
of 1990''.

 H4  deg.SEC. 501. [2 U.S.C. 661] PURPOSES.

    The purposes of this title are to----
            (1) measure more accurately the costs of Federal 
        credit programs;
            (2) place the cost of credit programs on a 
        budgetary basis equivalent to other Federal spending;
            (3) encourage the delivery of benefits in the form 
        most appropriate to the needs of beneficiaries; and
            (4) improve the allocation of resources among 
        credit programs and between credit and other spending 
        programs.

 H4  deg.SEC. 502. [2 U.S.C. 661A] DEFINITIONS.

    For purposes of this title----
            (1) The term ``direct loan'' means a disbursement 
        of funds by the Government to a non-Federal borrower 
        under a contract that requires the repayment of such 
        funds with or without interest. The term includes the 
        purchase of, or participation in, a loan made by 
        another lender and financing arrangements that defer 
        payment for more than 90 days, including the sale of a 
        government asset on credit terms. The term does not 
        include the acquisition of a federally guaranteed loan 
        in satisfaction of default claims or the price support 
        loans of the Commodity Credit Corporation.
            (2) The term ``direct loan obligation'' means a 
        binding agreement by a Federal agency to make a direct 
        loan when specified conditions are fulfilled by the 
        borrower.
            (3) The term ``loan guarantee'' means any 
        guarantee, insurance, or other pledge with respect to 
        the payment of all or a part of the principal or 
        interest on any debt obligation of a non-Federal 
        borrower to a non-Federal lender, but does not include 
        the insurance of deposits, shares, or other 
        withdrawable accounts in financial institutions.
            (4) The term ``loan guarantee commitment'' means a 
        binding agreement by a Federal agency to make a loan 
        guarantee when specified conditions are fulfilled by 
        the borrower, the lender, or any other party to the 
        guarantee agreement.
            (5)(A) The term ``cost'' means the estimated long-
        term cost to the Government of a direct loan or loan 
        guarantee or modification thereof, calculated on a net 
        present value basis, excluding administrative costs and 
        any incidental effects on governmental receipts or 
        outlays.
            (B) The cost of a direct loan shall be the net 
        present value, at the time when the direct loan is 
        disbursed, of the following estimated cash flows:
                    (i) loan disbursements;
                    (ii) repayments of principal; and
                    (iii) payments of interest and other 
                payments by or to the Government over the life 
                of the loan after adjusting for estimated 
                defaults, prepayments, fees, penalties, and 
                other recoveries;
        including the effects of changes in loan terms 
        resulting from the exercise by the borrower of an 
        option included in the loan contract.
            (C) The cost of a loan guarantee shall be the net 
        present value, at the time when the guaranteed loan is 
        disbursed, of the following estimated cash flows:
                    (i) payments by the Government to cover 
                defaults and delinquencies, interest subsidies, 
                or other payments; and
                    (ii) payments to the Government including 
                origination and other fees, penalties and 
                recoveries;
        including the effects of changes in loan terms 
        resulting from the exercise by the guaranteed lender of 
        an option included in the loan guarantee contract, or 
        by the borrower of an option included in the guaranteed 
        loan contract.
            (D) The cost of a modification is the difference 
        between the current estimate of the net present value 
        of the remaining cash flows under the terms of a direct 
        loan or loan guarantee contract, and the current 
        estimate of the net present value of the remaining cash 
        flows under the terms of the contract, as modified.
            (E) In estimating net present values, the discount 
        rate shall be the average interest rate on marketable 
        Treasury securities of similar maturity to the cash 
        flows of the direct loan or loan guarantee for which 
        the estimate is being made.
            (F) When funds are obligated for a direct loan or 
        loan guarantee, the estimated cost shall be based on 
        the current assumptions, adjusted to incorporate the 
        terms of the loan contract, for the fiscal year in 
        which the funds are obligated.
            (6) The term ``credit program account'' means the 
        budget account into which an appropriation to cover the 
        cost of a direct loan or loan guarantee program is made 
        and from which such cost is disbursed to the financing 
        account.
            (7) The term ``financing account'' means the non-
        budget account or accounts associated with each credit 
        program account which holds balances, receives the cost 
        payment from the credit program account, and also 
        includes all other cash flows to and from the 
        Government resulting from direct loan obligations or 
        loan guarantee commitments made on or after October 1, 
        1991.
            (8) The term ``liquidating account'' means the 
        budget account that includes all cash flows to and from 
        the Government resulting from direct loan obligations 
        or loan guarantee commitments made prior to October 1, 
        1991. These accounts shall be shown in the budget on a 
        cash basis.
            (9) The term ``modification'' means any Government 
        action that alters the estimated cost of an outstanding 
        direct loan (or direct loan obligation) or an 
        outstanding loan guarantee (or loan guarantee 
        commitment) from the current estimate of cash flows. 
        This includes the sale of loan assets, with or without 
        recourse, and the purchase of guaranteed loans. This 
        also includes any action resulting from new 
        legislation, or from the exercise of administrative 
        discretion under existing law, that directly or 
        indirectly alters the estimated cost of outstanding 
        direct loans (or direct loan obligations) or loan 
        guarantees (or loan guarantee commitments) such as a 
        change in collection procedures.
            (10) The term ``current'' has the same meaning as 
        in section 250(c)(9) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
            (11) The term ``Director'' means the Director of 
        the Office of Management and Budget.

 H4  deg.SEC. 503. [2 U.S.C. 661B] OMB AND CBO ANALYSIS, 
                    COORDINATION, AND REVIEW.

    (a) In General.--For the executive branch, the Director 
shall be responsible for coordinating the estimates required by 
this title. The Director shall consult with the agencies that 
administer direct loan or loan guarantee programs.
    (b) Delegation.--The Director may delegate to agencies 
authority to make estimates of costs. The delegation of 
authority shall be based upon written guidelines, regulations, 
or criteria consistent with the definitions in this title.
    (c) Coordination With the Congressional Budget Office.--In 
developing estimation guidelines, regulations, or criteria to 
be used by Federal agencies, the Director shall consult with 
the Director of the Congressional Budget Office.
    (d) Improving Cost Estimates.--The Director and the 
Director of the Congressional Budget Office shall coordinate 
the development of more accurate data on historical performance 
of direct loan and loan guarantee programs. They shall annually 
review the performance of outstanding direct loans and loan 
guarantees to improve estimates of costs. The Office of 
Management and Budget and the Congressional Budget Office shall 
have access to all agency data that may facilitate the 
development and improvement of estimates of costs.
    (e) Historical Credit Program Costs.--The Director shall 
review, to the extent possible, historical data and develop the 
best possible estimates of adjustments that would convert 
aggregate historical budget data to credit reform accounting.
    (f) Administrative Costs.--The Director and the Director of 
the Congressional Budget Office shall each analyze and report 
to Congress on differences in long-term administrative costs 
for credit programs versus grant programs by January 31, 1992. 
Their reports shall recommend to Congress any changes, if 
necessary, in the treatment of administrative costs under 
credit reform accounting.

 H4  deg.SEC. 504. [2 U.S.C. 661C] BUDGETARY TREATMENT.

    (a) President's Budget.--Beginning with fiscal year 1992, 
the President's budget shall reflect the costs of direct loan 
and loan guarantee programs. The budget shall also include the 
planned level of new direct loan obligations or loan guarantee 
commitments associated with each appropriations request.
    (b) Appropriations Required.--Notwithstanding any other 
provision of law, new direct loan obligations may be incurred 
and new loan guarantee commitments may be made for fiscal year 
1992 and thereafter only to the extent that----
            (1) new budget authority to cover their costs is 
        provided in advance in an appropriations Act;
            (2) a limitation on the use of funds otherwise 
        available for the cost of a direct loan or loan 
        guarantee program has been provided in advance in an 
        appropriations Act; or
            (3) authority is otherwise provided in 
        appropriation Acts.
    (c) Exemption for Mandatory Programs.--Subsections (b) and 
(e) shall not apply to a direct loan or loan guarantee program 
that----
            (1) constitutes an entitlement (such as the 
        guaranteed student loan program or the veterans' home 
        loan guaranty program); or
            (2) all existing credit programs of the Commodity 
        Credit Corporation on the date of enactment of this 
        title.
    (d) Budget Accounting.----
            (1) The authority to incur new direct loan 
        obligations, make new loan guarantee commitments, or 
        modify outstanding direct loans (or direct loan 
        obligations) or loan guarantees (or loan guarantee 
        commitments) shall constitute new budget authority in 
        an amount equal to the cost of the direct loan or loan 
        guarantee in the fiscal year in which definite 
        authority becomes available or indefinite authority is 
        used. Such budget authority shall constitute an 
        obligation of the credit program account to pay to the 
        financing account.
            (2) The outlays resulting from new budget authority 
        for the cost of direct loans or loan guarantees 
        described in paragraph (1) shall be paid from the 
        credit program account into the financing account and 
        recorded in the fiscal year in which the direct loan or 
        the guaranteed loan is disbursed or its costs altered.
            (3) All collections and payments of the financing 
        accounts shall be a means of financing.
    (e) Modifications.--An outstanding direct loan (or direct 
loan obligation) or loan guarantee (or loan guarantee 
commitment) shall not be modified in a manner that increases 
its costs unless budget authority for the additional cost has 
been provided in advance in an appropriations Act.
    (f) Reestimates.--When the estimated cost for a group of 
direct loans or loan guarantees for a given credit program made 
in a single fiscal year is reestimated in a subsequent year, 
the difference between the reestimated cost and the previous 
cost estimate shall be displayed as a distinct and separately 
identified subaccount in the credit program account as a change 
in program costs and a change in net interest. There is hereby 
provided permanent indefinite authority for these reestimates.
    (g) Administrative Expenses.--All funding for an agency's 
administration of a direct loan or loan guarantee program shall 
be displayed as distinct and separately identified subaccounts 
within the same budget account as the program's cost.

 H4  deg.SEC. 505. [2 U.S.C. 661D] AUTHORIZATIONS.

    (a) Authorization of Appropriations for Costs.--There are 
authorized to be appropriated to each Federal agency authorized 
to make direct loan obligations or loan guarantee commitments, 
such sums as may be necessary to pay the cost associated with 
such direct loan obligations or loan guarantee commitments.
    (b) Authorization for Financing Accounts.--In order to 
implement the accounting required by this title, the President 
is authorized to establish such non-budgetary accounts as may 
be appropriate.
    (c) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend 
to, or pay to the financing accounts such amounts as may be 
appropriate. The Secretary of the Treasury may prescribe forms 
and denominations, maturities, and terms and conditions for the 
transactions described above, except that the rate of interest 
charged by the Secretary on lending to financing accounts 
(including amounts treated as lending to financing accounts by 
the Federal Financing Bank (hereinafter in this subsection 
referred to as the ``Bank'') pursuant to section 406(b) \1\) 
and the rate of interest paid to financing accounts on 
uninvested balances in financing accounts shall be the same as 
the rate determined pursuant to section 502(5)(E). For 
guaranteed loans financed by the Bank and treated as direct 
loans by a Federal agency pursuant to section 406(b) \1\, any 
fee or interest surcharge (the amount by which the interest 
rate charged exceeds the rate determined pursuant to section 
502(5)(E)) that the Bank charges to a private borrower pursuant 
to section 6(c) of the Federal Financing Bank Act of 1973 shall 
be considered a cash flow to the Government for the purposes of 
determining the cost of the direct loan pursuant to section 
502(5). All such amounts shall be credited to the appropriate 
financing account. The Bank is authorized to require 
reimbursement from a Federal agency to cover the administrative 
expenses of the Bank that are attributable to the direct loans 
financed for that agency. All such payments by an agency shall 
be considered administrative expenses subject to section 
504(g). This subsection shall apply to transactions related to 
direct loan obligations or loan guarantee commitments made on 
or after October 1, 1991. The authorities described above shall 
not be construed to supersede or override the authority of the 
head of a Federal agency to administer and operate a direct 
loan or loan guarantee program. All of the transactions 
provided in this subsection shall be subject to the provisions 
of subchapter II of chapter 15 of title 31, United States Code. 
Cash balances of the financing accounts in excess of current 
requirements shall be maintained in a form of uninvested funds 
and the Secretary of the Treasury shall pay interest on these 
funds.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``section 405(b)''.
---------------------------------------------------------------------------
    (d) Authorization for Liquidating Accounts.--(1) Amounts in 
liquidating accounts shall be available only for payments 
resulting from direct loan obligations or loan guarantee 
commitments made prior to October 1, 1991, for--
            (A) interest payments and principal repayments to 
        the Treasury or the Federal Financing Bank for amounts 
        borrowed;
            (B) disbursements of loans;
            (C) default and other guarantee claim payments;
            (D) interest supplement payments;
            (E) payments for the costs of foreclosing, 
        managing, and selling collateral that are capitalized 
        or routinely deducted from the proceeds of sales;
            (F) payments to financing accounts when required 
        for modifications;
            (G) administrative expenses, if----
                    (i) amounts credited to the liquidating 
                account would have been available for 
                administrative expenses under a provision of 
                law in effect prior to October 1, 1991; and
                    (ii) no direct loan obligation or loan 
                guarantee commitment has been made, or any 
                modification of a direct loan or loan guarantee 
                has been made, since September 30, 1991; or
            (H) such other payments as are necessary for the 
        liquidation of such direct loan obligations and loan 
        guarantee commitments.
    (2) Amounts credited to liquidating accounts in any year 
shall be available only for payments required in that year. Any 
unobligated balances in liquidating accounts at the end of a 
fiscal year shall be transferred to miscellaneous receipts as 
soon as practicable after the end of the fiscal year.
    (3) If funds in liquidating accounts are insufficient to 
satisfy obligations and commitments of such accounts, there is 
hereby provided permanent, indefinite authority to make any 
payments required to be made on such obligations and 
commitments.
    (e) Authorization of Appropriations for Implementation 
Expenses.--There are authorized to be appropriated to existing 
accounts such sums as may be necessary for salaries and 
expenses to carry out the responsibilities under this title.
    (f) Reinsurance.--Nothing in this title shall be construed 
as authorizing or requiring the purchase of insurance or 
reinsurance on a direct loan or loan guarantee from private 
insurers. If any such reinsurance for a direct loan or loan 
guarantee is authorized, the cost of such insurance and any 
recoveries to the Government shall be included in the 
calculation of the cost.
    (g) Eligibility and Assistance.--Nothing in this title 
shall be construed to change the authority or the 
responsibility of a Federal agency to determine the terms and 
conditions of eligibility for, or the amount of assistance 
provided by a direct loan or a loan guarantee.

SEC. 506. [2 U.S.C. 661E] TREATMENT OF DEPOSIT INSURANCE AND AGENCIES 
                    AND OTHER INSURANCE PROGRAMS.

    (a) In General.--This title shall not apply to the credit 
or insurance activities of the Federal Deposit Insurance 
Corporation, National Credit Union Administration, Resolution 
Trust Corporation, Pension Benefit Guaranty Corporation, 
National Flood Insurance, National Insurance Development Fund, 
Crop Insurance, or Tennessee Valley Authority.
    (b) Study.--The Director and the Director of the 
Congressional Budget Office shall each study whether the 
accounting for Federal deposit insurance programs should be on 
a cash basis on the same basis as loan guarantees, or on a 
different basis. Each Director shall report findings and 
recommendations to the President and the Congress on or before 
May 31, 1991.
    (c) Access to Data.--For the purposes of subsection (b), 
the Office of Management and Budget and the Congressional 
Budget Office shall have access to all agency data that may 
facilitate these studies.

 H4  deg.SEC. 507. [2 U.S.C. 661F] EFFECT ON OTHER LAWS.

    (a) Effect on Other Laws.--This title shall supersede, 
modify, or repeal any provision of law enacted prior to the 
date of enactment of this title to the extent such provision is 
inconsistent with this title. Nothing in this title shall be 
construed to establish a credit limitation on any Federal loan 
or loan guarantee program.
    (b) Crediting of Collections.--Collections resulting from 
direct loans obligated or loan guarantees committed prior to 
October 1, 1991, shall be credited to the liquidating accounts 
of Federal agencies. Amounts so credited shall be available, to 
the same extent that they were available prior to the date of 
enactment of this title, to liquidate obligations arising from 
such direct loans obligated or loan guarantees committed prior 
to October 1, 1991, including repayment of any obligations held 
by the Secretary of the Treasury or the Federal Financing Bank. 
The unobligated balances of such accounts that are in excess of 
current needs shall be transferred to the general fund of the 
Treasury. Such transfers shall be made from time to time but, 
at least once each year.

  [Title VI repealed by Sec. 10118(a) of Public Law 105-33 (111 Stat. 
                                 695)]

                TITLE VII--PROGRAM REVIEW AND EVALUATION

          * * * * * * *
         continuing study of additional budget reform proposals
    Sec. 703. [2 U.S.C. 623] (a) The Committees on the Budget 
of the House of Representatives and the Senate shall study on a 
continuing basis proposals designed to improve and facilitate 
methods of congressional budgetmaking. The proposals to be 
studied shall include, but are not limited to, proposals for--
            (1) improving the information base required for 
        determining the effectiveness of new programs by such 
        means as pilot testing, survey research, and other 
        experimental and analytical techniques;
            (2) improving analytical and systematic evaluation 
        of the effectiveness of existing programs;
            (3) establishing maximum and minimum time 
        limitations for program authorization; and
            (4) developing techniques of human resource 
        accounting and other means of providing noneconomic as 
        well as economic evaluation measures.
    (b) The Committee on the Budget of each House shall, from 
time to time, report to its House the results of the study 
carried on by it under subsection (a), together with its 
recommendations.
    (c) Nothing in this section shall preclude studies to 
improve the budgetary process by any other committee of the 
House of Representatives or the Senate or any joint committee 
of the Congress.
           * * * * * * *

                               TITLE VIII

                                 NOTE:

    Title VIII, which addressed procedures for changing functional 
categories, was superseded by 31 USC Sec.  1104(c). Title VIII provided 
that ``Any change in the functional categories set forth in the Budget 
of the United States Government transmitted pursuant to section 201 of 
the Budget and Accounting Act, 1921, shall be made only in consultation 
with the Committee on Appropriations and the Budget of the House of 
Representatives and Senate.'' The relevant language in 31 USC Sec.  
1104(c) provides ``* * * the President may change the functional 
categories in the budget only in consultation with the Committees on 
Appropriations and on the Budget of both Houses of Congress.''

          TITLE IX--MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

          * * * * * * *
                     exercise of rulemaking powers
    Sec. 904. [2 U.S.C. 621 note] (a) The provisions of this 
title and of titles I, III, IV, and V and the provisions of 
sections 701, 703, and 1017 are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the 
        House of Representatives and the Senate, respectively, 
        and as such they shall be considered as part of the 
        rules of each House, respectively, or of that House to 
        which they specifically apply, and such rules shall 
        supersede other rules only to the extent that they are 
        inconsistent therewith; and
            (2) with full recognition of the constitutional 
        right of either House to change such rules (so far as 
        relating to such House) at any time, in the same 
        manner, and to the same extent as in the case of any 
        other rule of such House.
    (b) Any provision of title III or IV may be waived or 
suspended in the Senate by a majority vote of the Members 
voting, a quorum being present, or by the unanimous consent of 
the Senate.
    (c) Waivers.----
            (1) Permanent.--Sections 305(b)(2), 305(c)(4), 306, 
        310(d)(2), 313, 904(c), and 904(d) of this Act may be 
        waived or suspended in the Senate only by the 
        affirmative vote of three-fifths of the Members, duly 
        chosen and sworn.
            (2) Temporary.--Sections 301(i), 302(c), 302(f), 
        310(g), 311(a), 312(b), and 312(c) of this Act and 
        sections 258(a)(4)(C), 258A(b)(3)(C)(I) \1\, 
        258B(f)(1), 258B(h)(1), 258(h)(3) \2\, 258C(a)(5), and 
        258C(b)(1) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 may be waived or suspended in the 
        Senate only by the affirmative vote of three-fifths of 
        the Members, duly chosen and sworn.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``258A(b)(3)(C)(i)''.
    \2\ So in law. Probably should read ``258B(h)(3)''.
---------------------------------------------------------------------------
    (d) Appeals.----
            (1) Procedure.--Appeals in the Senate from the 
        decisions of the Chair relating to any provision of 
        title III or IV or section 1017 shall, except as 
        otherwise provided therein, be limited to 1 hour, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the resolution, concurrent 
        resolution, reconciliation bill, or rescission bill, as 
        the case may be.
            (2) Permanent.--An affirmative vote of three-fifths 
        of the Members, duly chosen and sworn, shall be 
        required in the Senate to sustain an appeal of the 
        ruling of the Chair on a point of order raised under 
        sections 305(b)(2), 305(c)(4), 306, 310(d)(2), 313, 
        904(c), and 904(d) of this Act.
            (3) Temporary.--An affirmative vote of three-fifths 
        of the Members, duly chosen and sworn, shall be 
        required in the Senate to sustain an appeal of the 
        ruling of the Chair on a point of order raised under 
        sections 301(i), 302(c), 302(f), 310(g), 311(a), 
        312(b), and 312(c) of this Act and sections 
        258(a)(4)(C), 258A(b)(3)(C)(I) \1\, 258B(f)(1), 
        258B(h)(1), 258(h)(3) \2\, 258C(a)(5), and 258C(b)(1) 
        of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
    (e) Expiration of Certain Supermajority Voting 
Requirements\3\.--Subsections (c)(2) and (d)(3) shall expire on 
September 30, 2002.
---------------------------------------------------------------------------
    \3\ Section 205 of S. Con. Res. 21, the concurrent resolution on 
budget for fiscal year 2008 (110th Congress), extended subsections 
(c)(2) and (d)(3) of section 904 through September 30, 2017.
---------------------------------------------------------------------------
          * * * * * * *

                      TITLE X--IMPOUNDMENT CONTROL

                       Part A--General Provisions

                               disclaimer
    Sec. 1001. [2 U.S.C. 681] Nothing contained in this Act, or 
in any amendments made by this Act, shall be construed as--
            (1) asserting or conceding the constitutional 
        powers or limitations of either the Congress or the 
        President;
            (2) ratifying or approving any impoundment 
        heretofore or hereafter executed or approved by the 
        President or any other Federal officer or employee, 
        except insofar as pursuant to statutory authorization 
        then in effect;
            (3) affecting in any way the claims or defenses of 
        any party to litigation concerning any impoundment; or
            (4) superseding any provision of law which requires 
        the obligation of budget authority or the making of 
        outlays thereunder.
          * * * * * * *

     Part B--Congressional Consideration of Proposed Rescissions, 
            Reservations, and Deferrals of Budget Authority

                              definitions
    Sec. 1011. [2 U.S.C. 682] For purposes of this part--
            (1) ``deferral of budget authority'' includes--
                    (A) withholding or delaying the obligations 
                or expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided 
                for projects or activities; or
                    (B) any other type of Executive action or 
                inaction which effectively precludes the 
                obligation or expenditure of budget authority, 
                including authority to obligate by contract in 
                advance of appropriations as specifically 
                authorized by law;
            (2) ``Comptroller General'' means the Comptroller 
        General of the United States;
            (3) ``rescission bill'' means a bill or joint 
        resolution which only recinds in whole or in part, 
        budget authority proposed to be rescinded in a special 
        message transmitted by the President under section 
        1012, and upon which the Congress completes action 
        before the end of the first period of 45 calendar days 
        of continuous session of the Congress after the date on 
        which the President's message is received by the 
        Congress;
            (4) ``impoundment resolution'' means a resolution 
        of the House of Representatives or the Senate which 
        only expresses its disapproval of a proposed deferral 
        of budget authority set forth in a special message 
        transmitted by the President under section 1013; and
            (5) continuity of a session of the Congress shall 
        be considered as broken only by an adjournment of the 
        Congress sine die, and the days on which either House 
        is not in session because of an adjournment of more 
        than 3 days to a day certain shall be excluded in the 
        computation of the 45-day period referred to in 
        paragraph (3) of this section and in section 1012, and 
        the 25-day periods referred to in sections 1016 and 
        1017(b)(1). If a special message is transmitted under 
        section 1012 during any Congress and the last session 
        of such Congress adjourns sine die before the 
        expiration of 45 calendar days of continuous session 
        (or a special message is so transmitted after the last 
        session of the Congress adjourns sine die), the message 
        shall be deemed to have been retransmitted on the first 
        day of the succeeding Congress and the 45-day period 
        referred to in paragraph (3) of this section and 
        section 1012 (with respect to such message) shall 
        commence on the day after such first day.
                     rescission of budget authority
    Sec. 1012. [2 U.S.C. 683] (a) Transmittal of Special 
Message.--Whenever the President determines that all or part of 
any budget authority will not be required to carry out the full 
objectives or scope of programs for which it is provided or 
that such budget authority should be rescinded for fiscal 
policy or other reasons (including the determination of 
authorized projects or activities for which budget authority 
has been provided), or whenever all or part of budget authority 
provided for only one fiscal year is to be reserved from 
obligation for such fiscal year, the President shall transmit 
to both Houses of Congress a special message specifying----
            (1) the amount of budget authority which he 
        proposes to be rescinded or which is to be so reserved;
            (2) any account, department, or establishment of 
        the Government to which such budget authority is 
        available for obligation, and the specific project or 
        governmental functions involved;
            (3) the reasons why the budget authority should be 
        rescinded or is to be so reserved;
            (4) to the maximum extent practicable, the 
        estimated fiscal, economic, and budgetary effect of the 
        proposed rescission or of the reservation; and
            (5) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed rescission or 
        the reservation and the decision to effect the proposed 
        rescission or the reservation, and to the maximum 
        extent practicable, the estimated effect of the 
        proposed rescission or the reservation upon the 
        objects, purposes, and programs for which the budget 
        authority is provided.
    (b) Requirement To Make Available for Obligation.--Any 
amount of budget authority proposed to be rescinded or that is 
to be reserved as set forth in such special message shall be 
made available for obligation unless, within the prescribed 45-
day period, the Congress has completed action on a rescission 
bill rescinding all or part of the amount proposed to be 
rescinded or that is to be reserved. Funds made available for 
obligation under this procedure may not be proposed for 
rescission again.
                 proposed deferrals of budget authority
    Sec. 1013. [2 U.S.C. 684] (a) Transmittal of Special 
Message.--Whenever the President, the Director of the Office of 
Management and Budget, the head of any department or agency of 
the United States, or any officer or employee of the United 
States proposes to defer any budget authority provided for a 
specific purpose or project, the President shall transmit to 
the House of Representatives and the Senate a special message 
specifying----
            (1) the amount of the budget authority proposed to 
        be deferred;
            (2) any account, department, or establishment of 
        the Government to which such budget authority is 
        available for obligation, and the specific project or 
        governmental functions involved;
            (3) the period of time during which the budget 
        authority is proposed to be deferred;
            (4) the reasons for the proposed deferral, 
        including any legal authority invoked to justify the 
        proposed deferral;
            (5) to the maximum extent practicable, the 
        estimated fiscal, economic, and budgetary effect of the 
        proposed deferral; and
            (6) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed deferral and 
        the decision to effect the proposed deferral, including 
        an analysis of such facts, circumstances, and 
        considerations in terms of their application to any 
        legal authority, including specific elements of legal 
        authority, invoked to justify such proposed deferral, 
        and to the maximum extent practicable, the estimated 
        effect of the proposed deferral upon the objects, 
        purposes, and programs for which the budget authority 
        is provided.
A special message may include one or more proposed deferrals of 
budget authority. A deferral may not be proposed for any period 
of time extending beyond the end of the fiscal year in which 
the special message proposing the deferral is transmitted to 
the House and the Senate.
    (b) Consistency With Legislative Policy.--Deferrals shall 
be permissible only--
            (1) to provide for contingencies;
            (2) to achieve savings made possible by or through 
        changes in requirements or greater efficiency of 
        operations; or
            (3) as specifically provided by law.
No officer or employee of the United States may defer any 
budget authority for any other purpose.
    (c) Exception.--The provisions of this section do not apply 
to any budget authority proposed to be rescinded or that is to 
be reserved as set forth in a special message required to be 
transmitted under section 1012.
                 transmission of messages; publication
    Sec. 1014. [2 U.S.C. 685] (a) Delivery to House and 
Senate.--Each special message transmitted under section 1012 or 
1013 shall be transmitted to the House of Representatives and 
the Senate on the same day, and shall be delivered to the Clerk 
of the House of Representatives if the House is not in session, 
and to the Secretary of the Senate if the Senate is not in 
session. Each special message so transmitted shall be referred 
to the appropriate committee of the House of Representatives 
and the Senate. Each such message shall be printed as a 
document of each House.
    (b) Delivery to Comptroller General.--A copy of each 
special message transmitted under section 1012 or 1013 shall be 
transmitted to the Comptroller General on the same day it is 
transmitted to the House of Representatives and the Senate. In 
order to assist the Congress in the exercise of its functions 
under sections 1012 and 1013, the Comptroller General shall 
review each such message and inform the House of 
Representatives and the Senate as promptly as practicable with 
respect to----
            (1) in the case of a special message transmitted 
        under section 1012, the facts surrounding the proposed 
        rescission or the reservation of budget authority 
        (including the probable effects thereof); and
            (2) in the case of a special message transmitted 
        under section 1013, (A) the facts surrounding each 
        proposed deferral of budget authority (including the 
        probable effects thereof) and (B) whether or not (or to 
        what extent), in his judgment, such proposed deferral 
        is in accordance with existing statutory authority.
    (c) Transmission of Supplementary Messages.--If any 
information contained in a special message transmitted under 
section 1012 or 1013 is subsequently revised, the President 
shall transmit to both Houses of Congress and the Comptroller 
General a supplementary message stating and explaining such 
revision. Any such supplementary message shall be delivered, 
referred, and printed as provided in subsection (a). The 
Comptroller General shall promptly notify the House of 
Representatives and the Senate of any change in the information 
submitted by him under subsection (b) which may be necessitated 
by such revision.
    (d) Printing in Federal Register.--Any special message 
transmitted under section 1012 or 1013, and any supplementary 
message transmitted under subsection (c), shall be printed in 
the first issue of the Federal Register published after such 
transmittal.
    (e) Cumulative Reports of Proposed Rescissions, 
Reservations, and Deferrals of Budget Authority.----
            (1) The President shall submit a report to the 
        House of Representatives and the Senate, not later than 
        the 10th day of each month during a fiscal year, 
        listing all budget authority for that fiscal year with 
        respect to which, as of the first day of such month----
                    (A) he has transmitted a special message 
                under section 1012 with respect to a proposed 
                rescission or a reservation; and
                    (B) he has transmitted a special message 
                under section 1013 proposing a deferral.
        Such report shall also contain, with respect to each 
        such proposed rescission or deferral, or each such 
        reservation, the information required to be submitted 
        in the special message with respect thereto under 
        section 1012 or 1013.
            (2) Each report submitted under paragraph (1) shall 
        be printed in the first issue of the Federal Register 
        published after its submission.
                     reports by comptroller general
    Sec. 1015. [2 U.S.C. 686] (a) Failure To Transmit Special 
Message.--If the Comptroller General finds that the President, 
the Director of the Office of Management and Budget, the head 
of any department or agency of the United States, or any other 
officer or employee of the United States--
            (1) is to establish a reserve or proposes to defer 
        budget authority with respect to which the President is 
        required to transmit a special message under section 
        1012 or 1013; or
            (2) has ordered, permitted, or approved the 
        establishment of such a reserve or a deferral of budget 
        authority;
and that the President has failed to transmit a special message 
with respect to such reserve or deferral, the Comptroller 
General shall make a report on such reserve or deferral and any 
available information concerning it to both Houses of Congress. 
The provisions of this part shall apply with respect to such 
reserve or deferral in the same manner and with the same effect 
as if such report of the Comptroller General were a special 
message transmitted by the President under section 1012 or 
1013, and, for purposes of this part, such report shall be 
considered a special message transmitted under section 1012 or 
1013.
    (b) Incorrect Classification of Special Message.--If the 
President has transmitted a special message to both Houses of 
Congress in accordance with section 1012 or 1013, and the 
Comptroller General believes that the President so transmitted 
the special message in accordance with one of those sections 
when the special message should have been transmitted in 
accordance with the other of those sections, the Comptroller 
General shall make a report to both Houses of the Congress 
setting forth his reasons.
                      suits by comptroller general
    Sec. 1016. [2 U.S.C. 687] If, under this title, budget 
authority is required to be made available for obligation and 
such budget authority is not made available for obligation, the 
Comptroller General is hereby expressly empowered, through 
attorneys of his own selection, to bring a civil action in the 
United States District Court for the District of Columbia to 
require such budget authority to be made available for 
obligation, and such court is hereby expressly empowered to 
enter in such civil action, against any department, agency, 
officer, or employee of the United States, any decree, 
judgment, or order, which may be necessary or appropriate to 
make such budget authority available for obligation. No civil 
action shall be brought by the Comptroller General under this 
section until the expiration of 25 calendar days of continuous 
session of the Congress following the date on which an 
explanatory statement by the Comptroller General of the 
circumstances giving rise to the action contemplated has been 
filed with the Speaker of the House of Representatives and the 
President of the Senate.
                     procedure in house and senate
    Sec. 1017. [2 U.S.C. 688] (a) Referral.--Any rescission 
bill introduced with respect to a special message or 
impoundment resolution introduced with respect to a proposed 
deferral of budget authority shall be referred to the 
appropriate committee of the House of Representatives or the 
Senate, as the case may be.
    (b) Discharge of Committee.----
            (1) If the committee to which a rescission bill or 
        impoundment resolution has been referred has not 
        reported it at the end of 25 calendar days of 
        continuous session of the Congress after its 
        introduction, it is in order to move either to 
        discharge the committee from further consideration of 
        the bill or resolution or to discharge the committee 
        from further consideration of any other rescission bill 
        with respect to the same special message or impoundment 
        resolution with respect to the same proposed deferral, 
        as the case may be, which has been referred to the 
        committee.
            (2) A motion to discharge may be made only by an 
        individual favoring the bill or resolution, may be made 
        only if supported by one-fifth of the Members of the 
        House involved (a quorum being present), and is highly 
        privileged in the House and privileged in the Senate 
        (except that it may not be made after the committee has 
        reported a bill or resolution with respect to the same 
        special message or the same proposed deferral, as the 
        case may be); and debate thereon shall be limited to 
        not more than 1 hour, the time to be divided in the 
        House equally between those favoring and those opposing 
        the bill or resolution, and to be divided in the Senate 
        equally between, and controlled by, the majority leader 
        and the minority leader or their designees. An 
        amendment to the motion is not in order, and it is not 
        in order to move to reconsider the vote by which the 
        motion is agreed to or disagreed to.
    (c) Floor Consideration in the House.----
            (1) When the committee of the House of 
        Representatives has reported, or has been discharged 
        from further consideration of a rescission bill or 
        impoundment resolution, it shall at any time thereafter 
        be in order (even though a previous motion to the same 
        effect has been disagreed to) to move to proceed to the 
        consideration of the bill or resolution. The motion 
        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.
            (2) Debate on a rescission bill or impoundment 
        resolution shall be limited to not more than 2 hours, 
        which shall be divided equally between those favoring 
        and those opposing the bill or resolution. A motion 
        further to limit debate shall not be debatable. In the 
        case of an impoundment resolution, no amendment to, or 
        motion to recommit, the resolution shall be in order. 
        It shall not be in order to move to reconsider the vote 
        by which a rescission bill or impoundment resolution is 
        agreed to or disagreed to.
            (3) Motions to postpone, made with respect to the 
        consideration of a rescission bill or impoundment 
        resolution, and motions to proceed to the consideration 
        of other business, shall be decided without debate.
            (4) All appeals from the decisions of the Chair 
        relating to the application of the Rules of the House 
        of Representatives to the procedure relating to any 
        rescission bill or impoundment resolution shall be 
        decided without debate.
            (5) Except to the extent specifically provided in 
        the preceding provisions of this subsection, 
        consideration of any rescission bill or impoundment 
        resolution and amendments thereto (or any conference 
        report thereon) shall be governed by the Rules of the 
        House of Representatives applicable to other bills and 
        resolutions, amendments, and conference reports in 
        similar circumstances.
    (d) Floor Consideration in the Senate.----
            (1) Debate in the Senate on any rescission bill or 
        impoundment resolution, and all amendments thereto (in 
        the case of a rescission bill) and debatable motions 
        and appeals in connection therewith, shall be limited 
        to not more than 10 hours. The time shall be equally 
        divided between, and controlled by, the majority leader 
        and the minority leader or their designees.
            (2) Debate in the Senate on any amendment to a 
        rescission bill shall be limited to 2 hours, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the bill. Debate on any amendment to 
        an amendment, to such a bill, and debate on any 
        debatable motion or appeal in connection with such a 
        bill or an impoundment resolution shall be limited to 1 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the bill or resolution, 
        except that in the event the manager of the bill or 
        resolution is in favor in any such amendment, motion, 
        or appeal, the time in opposition thereto, shall be 
        controlled by the minority leader or his designee. No 
        amendment that is not germane to the provisions of a 
        rescission bill shall be received. Such leaders, or 
        either of them, may, from the time under their control 
        on the passage of a rescission bill or impoundment 
        resolution, allot additional time to any Senator during 
        the consideration of any amendment, debatable motion, 
        or appeal.
            (3) A motion to further limit debate is not 
        debatable. In the case of a rescission bill, a motion 
        to recommit (except a motion to recommit with 
        instructions to report back within a specified number 
        of days, not to exceed 3, not counting any day on which 
        the Senate is not in session) is not in order. Debate 
        on any such motion to recommit shall be limited to one 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the concurrent resolution. 
        In the case of an impoundment resolution, no amendment 
        or motion to recommit is in order.
            (4) The conference report on any rescission bill 
        shall be in order in the Senate at any time after the 
        third day (excluding Saturdays, Sundays, and legal 
        holidays) following the day on which such a conference 
        report is reported and is available to Members of the 
        Senate. A motion to proceed to the consideration of the 
        conference report may be made even though a previous 
        motion to the same effect has been disagreed to.
            (5) During the consideration in the Senate of the 
        conference report on any rescission bill, debate shall 
        be limited to 2 hours, to be equally divided between, 
        and controlled by, the majority leader and minority 
        leader or their designees. Debate on any debatable 
        motion or appeal related to the conference report shall 
        be limited to 30 minutes, to be equally divided 
        between, and controlled by, the mover and the manager 
        of the conference report.
            (6) Should the conference report be defeated, 
        debate on any request for a new conference and the 
        appointment of conferees shall be limited to one hour, 
        to be equally divided, between, and controlled by, the 
        manager of the conference report and the minority 
        leader or his designee, and should any motion be made 
        to instruct the conferees before the conferees are 
        named, debate on such motion shall be limited to 30 
        minutes, to be equally divided between, and controlled 
        by, the mover and the manager of the conference report. 
        Debate on any amendment to any such instructions shall 
        be limited to 20 minutes, to be equally divided 
        between, and controlled by the mover and the manager of 
        the conference report. In all cases when the manager of 
        the conference report is in favor of any motion, 
        appeal, or amendment, the time in opposition shall be 
        under the control of the minority leader or his 
        designee.
            (7) In any case in which there are amendments in 
        disagreement, time on each amendment shall be limited 
        to 30 minutes, to be equally divided between, and 
        controlled by, the manager of the conference report and 
        the minority leader or his designee. No amendment that 
        is not germane to the provisions of such amendments 
        shall be received.

                       Part C--Line Item Veto \1\

                                 NOTE:

            Constitutionality of Line Item Veto Act of 1996

    The United States Supreme Court, in Clinton v. City of New 
York, U.S. Dist. Col. 1998, 118 S.Ct. 2091, 141 L.Ed.2d 393, 
found that the Line Item Veto Act of 1996, Pub.L. 104-130, 
April 9, 1996, 110 Stat. 1200, which is part C of title X of 
the Congressional Budget and Impoundment Control Act of 1974, 
was unconstitutional as a violation of the Presentment Clause 
of the United States Constitution (Art. I, Sec. 7, cl. 2).
---------------------------------------------------------------------------
    \1\ The Line Item Veto Act of 1996 has not been repealed. See 
Appendix for full text of the Line Item Veto Act.
---------------------------------------------------------------------------
          * * * * * * *END OF 
          STATUTE deg.ATTORNEY: RFW/FD (January 14, 
          2000) deg.
    

======================================================================


   SELECTED PROVISIONS OF THE BALANCED BUDGET AND EMERGENCY DEFICIT 
                          CONTROL ACT OF 1985

======================================================================

      
   SELECTED PROVISIONS OF THE BALANCED BUDGET AND EMERGENCY DEFICIT 
                          CONTROL ACT OF 1985

                              ----------                              


 SECTIONS 250(c) and 257 OF THE BALANCED BUDGET AND EMERGENCY DEFICIT 
                          CONTROL ACT OF 1985

 H4  deg.SEC. 250. [2 U.S.C. 900] TABLE OF CONTENTS; STATEMENT 
                    OF BUDGET ENFORCEMENT THROUGH SEQUESTRATION; 
                    DEFINITIONS.

    (a) * * *
          * * * * * * *
    (c) Definitions.----
    As used in this part:
            (1) The terms ``budget authority'', ``new budget 
        authority'', ``outlays'', and ``deficit'' have the 
        meanings given to such terms in section 3 of the 
        Congressional Budget and Impoundment Control Act of 
        1974 and ``discretionary spending limit'' shall mean 
        the amounts specified in section 251 of this Act.
            (2) The terms ``sequester'' and ``sequestration'' 
        refer to or mean the cancellation of budgetary 
        resources provided by discretionary appropriations or 
        direct spending law.
            (3) The term ``breach'' means, for any fiscal year, 
        the amount (if any) by which new budget authority or 
        outlays for that year (within a category of 
        discretionary appropriations) is above that category's 
        discretionary spending limit for new budget authority 
        or outlays for that year, as the case may be.
            (4)(A) The term ``category'' means the subsets of 
        discretionary appropriations in section 251(c). 
        Discretionary appropriations in each of the categories 
        shall be those designated in the joint explanatory 
        statement accompanying the conference report on the 
        Balanced Budget Act of 1997. New accounts or activities 
        shall be categorized only after consultation with the 
        committees on Appropriations and the Budget of the 
        House of Representatives and the Senate and that 
        consultation shall, to the extent practicable, include 
        written communication to such committees that affords 
        such committees the opportunity to comment before 
        official action is taken with respect to new accounts 
        or activities.
            (B) The term ``highway category'' refers to the 
        following budget accounts or portions thereof that are 
        subject to the obligation limitations on contract 
        authority set forth in the Safe, Accountable, Flexible, 
        Efficient Transportation Equity Act: A Legacy for 
        Users:
                    (i) 69-8083-0-7-401 (Federal-Aid Highways).
                    (ii) 69-8020-0-7-401 (Highway Traffic 
                Safety Grants).
                    (iii) 69-8048-0-7-401 (National Motor 
                Carrier Safety Program).
                    (iv) 69-8016-0-7-401 (Operations and 
                Research NHTSA).
                            (v) 69-8362-0-7-401 (National 
                        Driver Registry).
                            (vi) 69-8159-0-7-401 (Motor Carrier 
                        Safety Operations and Programs).
                            (vii) 06-8158-0-7-401 (Motor 
                        Carrier Safety Grants).
                    (C) Mass transit category.--The term ``mass 
                transit category'' means the following budget 
                accounts, or portions of the accounts, that are 
                subject to the obligation limitations on 
                contract authority provided in the Safe, 
                Accountable, Flexible, Efficient Transportation 
                Equity Act: A Legacy for Users or for which 
                appropriations are provided in accordance with 
                authorizations contained in that Act:
                            (i) 69-1120-0-1-401 (Administrative 
                        Expenses).
                            (ii) 69-1134-0-1-401 (Capital 
                        Investment Grants).
                            (iii) 69-8191-0-7-401 
                        (Discretionary Grants).
                            (iv) 69-1129-0-1-401 (Formula 
                        Grants).
                            (v) 69-1127-0-1-401 (Interstate 
                        Transfer Grants--Transit).
                            (vi) 69-1125-0-1-401 (Job Access 
                        and Reverse Commute).
                            (vii) 69-1122-0-1-401 
                        (Miscellaneous Expired Accounts).
                            (viii) 69-1121-0-1-401 (Research, 
                        Training and Human Resources).
                            (ix) 69-8350-0-7-401 (Trust Fund 
                        Share of Expenses).
                            (x) 69-1137-0-1-401 (Transit 
                        Planning and Research).
                            (xi) 69-1136-0-1-401 (University 
                        Transportation Research).
                            (xii) 69-1128-0-1-401 (Washington 
                        Metropolitan Area Transit Authority).
        Such term also refers to the Washington Metropolitan 
        Transit Authority account (69-1128-0-1-401) only for 
        fiscal year 1999 only for appropriations provided 
        pursuant to authorizations contained in section 14 of 
        Public Law 96-184 and Public Law 101-551.
            (D) Special rule.--(i) Any outlays in excess of the 
        discretionary spending limit set forth in section 
        251(c) for the highway or mass transit category, as 
        adjusted, for the budget year shall be considered 
        nondefense category outlays or discretionary category 
        outlays.
            (ii) If the obligation limitations for accounts in 
        the highway or mass transit category provided in an 
        appropriation Act for a fiscal year exceed the 
        obligation limitations set forth in section 8103 of the 
        Transportation Equity Act for the 21st Century for that 
        year, as adjusted, the estimated outlays flowing for 
        each outyear from such excess obligations calculated 
        pursuant to clause (iii) shall be attributed to the 
        discretionary category in that outyear.
            (iii) For purposes of clause (ii), outlays from 
        excess obligations shall be determined using the 
        average of the spendout rates for that category in the 
        baseline.
                    (E) \1\ The term ``conservation spending 
                category'' means discretionary appropriations 
                for conservation activities in the following 
                budget accounts or portions thereof providing 
                appropriations to preserve and protect lands, 
                habitat, wildlife, and other natural resources, 
                to provide recreational opportunities, and for 
                related purposes:
---------------------------------------------------------------------------
    \1\ So in law. Section 801 of P.L. 106-291 (114 Stat. 1026) amended 
this section by adding new subparagraphs (E) through (K). The margins 
of the new subparagraphs do not conform to existing subparagraphs.
---------------------------------------------------------------------------
                            (i) 14-5033 Bureau of Land 
                        Management Land Acquisition.
                            (ii) 14-5020 Fish and Wildlife 
                        Service Land Acquisition.
                            (iii) 14-5035 National Park Service 
                        Land Acquisition and State Assistance.
                            (iv) 12-9923 Forest Service Land 
                        Acquisition.
                            (v) 14-5143 Fish and Wildlife 
                        Service Cooperative Endangered Species 
                        Conservation Fund.
                            (vi) 14-5241 Fish and Wildlife 
                        Service North American Wetlands 
                        Conservation Fund.
                            (vii) 14-1694 Fish and Wildlife 
                        Service State Wildlife Grants.
                            (viii) 14-0804 United States 
                        Geological Survey Surveys, 
                        Investigations, and Research, the State 
                        Planning Partnership programs: 
                        Community/Federal Information 
                        Partnership, Urban Dynamics, and 
                        Decision Support for Resource 
                        Management.
                            (ix) 12-1105 Forest Service State 
                        and Private Forestry, the Forest Legacy 
                        Program, Urban and Community Forestry, 
                        and Smart Growth Partnerships.
                            (x) 14-1031 National Park Service 
                        Urban Park and Recreation Recovery 
                        program.
                            (xi) 14-5140 National Park Service 
                        Historic Preservation Fund.
                            (xii) Youth Conservation Corps.
                            (xiii) 14-1114 Bureau of Land 
                        Management Payments in Lieu of Taxes.
                            (xiv) Federal Infrastructure 
                        Improvement (as established in title 
                        VIII of the Department of the Interior 
                        and Related Agencies Appropriations 
                        Act, 2001).
                            (xv) 13-1460 NOAA Procurement 
                        Acquisition and Construction, the 
                        National Marine Sanctuaries and the 
                        National Estuarine Research Reserve 
                        Systems.
                            (xvi) 13-1450 NOAA Operations, 
                        Research, and Facilities, the Coastal 
                        Zone Management Act programs, the 
                        National Marine Sanctuaries, the 
                        National Estuarine Research Reserve 
                        Systems, and Coral Restoration 
                        programs.
                            (xvii) 13-1451 NOAA Pacific Coastal 
                        Salmon Recovery.
                    (F) \1\ The term ``Federal and State Land 
                and Water Conservation Fund sub-category'' 
                means discretionary appropriations for 
                activities in the accounts described in (E)(i)-
                (E)(iv) or portions thereof.
                    (G) \1\ The term ``State and Other 
                Conservation sub-category'' means discretionary 
                appropriations for activities in the accounts 
                described in (E)(v)-(E)(ix), with the exception 
                of Urban and Community Forestry as described in 
                (E)(ix), or portions thereof.
                    (H) \1\ The term ``Urban and Historic 
                Preservation sub-category'' means discretionary 
                appropriations for activities in the accounts 
                described in (E)(ix)-(E)(xii), with the 
                exception of Forest Legacy and Smart Growth 
                Partnerships as described in (E)(ix), or 
                portions thereof.
                    (I) \1\ The term ``Payments in Lieu of 
                Taxes sub-category'' means discretionary 
                appropriations for activities in the account 
                described in (E)(xiii) or portions thereof.
                    (J) \1\ The term ``Federal Deferred 
                Maintenance sub-category'' means discretionary 
                appropriations for activities in the account 
                described in (E)(xiv) or portions thereof.
                    (K) \1\ The term ``Coastal Assistance sub-
                category'' means discretionary appropriations 
                for activities in the accounts described in 
                (E)(xv)-(E)(xvii) or portions thereof.
            (5) The term ``baseline'' means the projection 
        (described in section 257) of current-year levels of 
        new budget authority, outlays, receipts, and the 
        surplus or deficit into the budget year and the 
        outyears.
            (6) The term ``budgetary resources'' means new 
        budget authority, unobligated balances, direct spending 
        authority, and obligation limitations.
            (7) The term ``discretionary appropriations'' means 
        budgetary resources (except to fund direct-spending 
        programs) provided in appropriation Acts.
            (8) The term ``direct spending'' means----
                    (A) budget authority provided by law other 
                than appropriation Acts;
                    (B) entitlement authority; and
                    (C) the food stamp program.
            (9) The term ``current'' means, with respect to OMB 
        estimates included with a budget submission under 
        section 1105(a) of title 31, United States Code, the 
        estimates consistent with the economic and technical 
        assumptions underlying that budget 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.
            (10) The term ``real economic growth'', with 
        respect to any fiscal year, means the growth in the 
        gross national product during such fiscal year, 
        adjusted for inflation, consistent with Department of 
        Commerce definitions.
            (11) The term ``account'' means an item for which 
        appropriations are made in any appropriation Act and, 
        for items not provided for in appropriation Acts, such 
        term means an item for which there is a designated 
        budget account identification code number in the 
        President's budget.
            (12) The term ``budget year'' means, with respect 
        to a session of Congress, the fiscal year of the 
        Government that starts on October 1 of the calendar 
        year in which that session begins.
            (13) The term ``current year'' means, with respect 
        to a budget year, the fiscal year that immediately 
        precedes that budget year.
            (14) The term ``outyear'' means, with respect to a 
        budget year, any of the first 4 fiscal years that 
        follow the budget year.
            (15) The term ``OMB'' means the Director of the 
        Office of Management and Budget.
            (16) The term ``CBO'' means the Director of the 
        Congressional Budget Office.
            (17) As used in this part, all references to 
        entitlement authority shall include the list of 
        mandatory appropriations included in the joint 
        explanatory statement of managers accompanying the 
        conference report on the Balanced Budget Act of 1997.
            (18) The term ``deposit insurance'' refers to the 
        expenses \1\ the Federal deposit insurance agencies, 
        and other Federal agencies supervising insured 
        depository institutions, resulting from full funding 
        of, and continuation of, the deposit insurance 
        guarantee commitment in effect under current estimates.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``expenses of''.
---------------------------------------------------------------------------
            (19) The term ``asset sale'' means the sale to the 
        public of any asset (except for those assets covered by 
        title V of the Congressional Budget Act of 1974), 
        whether physical or financial, owned in whole or in 
        part by the United States.
          * * * * * * *

 H4  deg.SEC. 257. [2 U.S.C. 907] THE BASELINE.

    (a) In General.--For any budget year, the baseline refers 
to a projection of current-year levels of new budget authority, 
outlays, revenues, and the surplus or deficit into the budget 
year and the outyears based on laws enacted through the 
applicable date.
    (b) Direct Spending and Receipts.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions:
            (1) In general.--Laws providing or creating direct 
        spending and receipts are assumed to operate in the 
        manner specified in those laws for each such year and 
        funding for entitlement authority is assumed to be 
        adequate to make all payments required by those laws.
            (2) Exceptions.--(A)(i) No program established by a 
        law enacted on or before the date of enactment of the 
        Balanced Budget Act of 1997 with estimated current year 
        outlays greater than $50,000,000 shall be assumed to 
        expire in the budget year or the outyears. The scoring 
        of new programs with estimated outlays greater than 
        $50,000,000 a year shall be based on scoring by the 
        Committees on Budget or OMB, as applicable. OMB, CBO, 
        and the Budget Committees shall consult on the scoring 
        of such programs where there are differenes \1\ between 
        CBO and OMB.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``differences''.
---------------------------------------------------------------------------
            (ii) On the expiration of the suspension of a 
        provision of law that is suspended under section 171 of 
        Public Law 104-127 and that authorizes a program with 
        estimated fiscal year outlays that are greater than 
        $50,000,000, for purposes of clause (i), the program 
        shall be assumed to continue to operate in the same 
        manner as the program operated immediately before the 
        expiration of the suspension.
            (B) The increase for veterans' compensation for a 
        fiscal year is assumed to be the same as that required 
        by law for veterans' pensions unless otherwise provided 
        by law enacted in that session.
            (C) Excise taxes dedicated to a trust fund, if 
        expiring, are assumed to be extended at current rates.
            (D) If any law expires before the budget year or 
        any outyear, then any program with estimated current 
        year outlays greater than $50,000,000 that operates 
        under that law shall be assumed to continue to operate 
        under that law as in effect immediately before its 
        expiration.
            (3) Hospital insurance trust fund.--Notwithstanding 
        any other provision of law, the receipts and 
        disbursements of the Hospital Insurance Trust Fund 
        shall be included in all calculations required by this 
        Act.
    (c) Discretionary Appropriations.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions regarding all amounts other than those 
covered by subsection (b):
            (1) Inflation of current-year appropriations.--
        Budgetary resources other than unobligated balances 
        shall be at the level provided for the budget year in 
        full-year appropriation Acts. If for any account a 
        full-year appropriation has not yet been enacted, 
        budgetary resources other than unobligated balances 
        shall be at the level available in the current year, 
        adjusted sequentially and cumulatively for expiring 
        housing contracts as specified in paragraph (2), for 
        social insurance administrative expenses as specified 
        in paragraph (3), to offset pay absorption and for pay 
        annualization as specified in paragraph (4), for 
        inflation as specified in paragraph (5), and to account 
        for changes required by law in the level of agency 
        payments for personnel benefits other than pay.
            (2) Expiring housing contracts.--New budget 
        authority to renew expiring multiyear subsidized 
        housing contracts shall be adjusted to reflect the 
        difference in the number of such contracts that are 
        scheduled to expire in that fiscal year and the number 
        expiring in the current year, with the per-contract 
        renewal cost equal to the average current-year cost of 
        renewal contracts.
            (3) Social insurance administrative expenses.--
        Budgetary resources for the administrative expenses of 
        the following trust funds shall be adjusted by the 
        percentage change in the beneficiary population from 
        the current year to that fiscal year: the Federal 
        Hospital Insurance Trust Fund, the Supplementary 
        Medical Insurance Trust Fund, the Unemployment Trust 
        Fund, and the railroad retirement account.
            (4) Pay annualization; offset to pay absorption.--
        Current-year new budget authority for Federal employees 
        shall be adjusted to reflect the full 12-month costs 
        (without absorption) of any pay adjustment that 
        occurred in that fiscal year.
            (5) Inflators.--The inflator used in paragraph (1) 
        to adjust budgetary resources relating to personnel 
        shall be the percent by which the average of the Bureau 
        of Labor Statistics Employment Cost Index (wages and 
        salaries, private industry workers) for that fiscal 
        year differs from such index for the current year. The 
        inflator used in paragraph (1) to adjust all other 
        budgetary resources shall be the percent by which the 
        average of the estimated gross domestic product chain-
        type price index for that fiscal year differs from the 
        average of such estimated index for the current year.
            (6) Current-year appropriations.--If, for any 
        account, a continuing appropriation is in effect for 
        less than the entire current year, then the current-
        year amount shall be assumed to equal the amount that 
        would be available if that continuing appropriation 
        covered the entire fiscal year. If law permits the 
        transfer of budget authority among budget accounts in 
        the current year, the current-year level for an account 
        shall reflect transfers accomplished by the submission 
        of, or assumed for the current year in, the President's 
        original budget for the budget year.
    (d) Up-to-Date Concepts.--In deriving the baseline for any 
budget year or outyear, current-year amounts shall be 
calculated using the concepts and definitions that are required 
for that budget year.
    (e) Asset Sales.--Amounts realized from the sale of an 
asset shall not be included in estimates under section 251, 
252, or 253 if that sale would result in a financial cost to 
the Federal Government as determined pursuant to scorekeeping 
guidelines.
          * * * * * * *ATTORNEY: RFW/FD (January 14, 
          2000) deg.
    

======================================================================


FREESTANDING PROVISIONS OF SUBTITLES C AND E OF THE BUDGET ENFORCEMENT 
                              ACT OF 1990

     Public Law 101-508, Nov. 5, 1990, 104 Stat. 1388-573, 1388-623

======================================================================

      
FREESTANDING PROVISIONS OF SUBTITLES C AND E OF THE BUDGET ENFORCEMENT 
                              ACT OF 1990

                              ----------                              
START OF STATUTE deg.STATUTE NAME=BUDGET ENFORCEMENT ACT OF 
1990--(Subtitles C and E of title XIV) deg.


      [As Amended Through P.L. 102-590, Enacted November 10, 1992]

                      Subtitle C--Social Security

SEC. 13301. OFF-BUDGET STATUS OF OASDI TRUST FUNDS.

    (a) Exclusion of Social Security from All Budgets.--
Notwithstanding any other provision of law, the receipts and 
disbursements of the Federal Old-Age and Survivors Insurance 
Trust Fund and the Federal Disability Insurance Trust Fund 
shall not be counted as new budget authority, outlays, 
receipts, or deficit or surplus for purposes of----
            (1) the budget of the United States Government as 
        submitted by the President,
            (2) the congressional budget, or
            (3) the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
    (b) Exclusion of Social Security From Congressional 
Budget.--Section 301(a) of the Congressional Budget Act of 1974 
is amended by adding at the end the following: ``The concurrent 
resolution shall not include the outlays and revenue totals of 
the old age, survivors, and disability insurance program 
established under title II of the Social Security Act or the 
related provisions of the Internal Revenue Code of 1986 in the 
surplus or deficit totals required by this subsection or in any 
other surplus or deficit totals required by this title.''.

 H4  deg.SEC. 13302. PROTECTION OF OASDI TRUST FUNDS IN THE 
                    HOUSE OF REPRESENTATIVES.

    (a) In General.--It shall not be in order in the House of 
Representatives to consider any bill or joint resolution, as 
reported, or any amendment thereto or conference report 
thereon, if, upon enactment----
            (1)(A) such legislation under consideration would 
        provide for a net increase in OASDI benefits of at 
        least 0.02 percent of the present value of future 
        taxable payroll for the 75-year period utilized in the 
        most recent annual report of the Board of Trustees 
        provided pursuant to section 201(c)(2) of the Social 
        Security Act, and (B) such legislation under 
        consideration does not provide at least a net increase, 
        for such 75-year period, in OASDI taxes of the amount 
        by which the net increase in such benefits exceeds 0.02 
        percent of the present value of future taxable payroll 
        for such 75-year period,
            (2)(A) such legislation under consideration would 
        provide for a net increase in OASDI benefits (for the 
        5-year estimating period for such legislation under 
        consideration), (B) such net increase, together with 
        the net increases in OASDI benefits resulting from 
        previous legislation enacted during that fiscal year or 
        any of the previous 4 fiscal years (as estimated at the 
        time of enactment) which are attributable to those 
        portions of the 5-year estimating periods for such 
        previous legislation that fall within the 5-year 
        estimating period for such legislation under 
        consideration, exceeds $250,000,000, and (C) such 
        legislation under consideration does not provide at 
        least a net increase, for the 5-year estimating period 
        for such legislation under consideration, in OASDI 
        taxes which, together with net increases in OASDI taxes 
        resulting from such previous legislation which are 
        attributable to those portions of the 5-year estimating 
        periods for such previous legislation that fall within 
        the 5-year estimating period for such legislation under 
        consideration, equals the amount by which the net 
        increase derived under subparagraph (B) exceeds 
        $250,000,000;
            (3)(A) such legislation under consideration would 
        provide for a net decrease in OASDI taxes of at least 
        0.02 percent of the present value of future taxable 
        payroll for the 75-year period utilized in the most 
        recent annual report of the Board of Trustees provided 
        pursuant to section 201(c)(2) of the Social Security 
        Act, and (B) such legislation under consideration does 
        not provide at least a net decrease, for such 75-year 
        period, in OASDI benefits of the amount by which the 
        net decrease in such taxes exceeds 0.02 percent of the 
        present value of future taxable payroll for such 75-
        year period, or
            (4)(A) such legislation under consideration would 
        provide for a net decrease in OASDI taxes (for the 5-
        year estimating period for such legislation under 
        consideration), (B) such net decrease, together with 
        the net decreases in OASDI taxes resulting from 
        previous legislation enacted during that fiscal year or 
        any of the previous 4 fiscal years (as estimated at the 
        time of enactment) which are attributable to those 
        portions of the 5-year estimating periods for such 
        previous legislation that fall within the 5-year 
        estimating period for such legislation under 
        consideration, exceeds $250,000,000, and (C) such 
        legislation under consideration does not provide at 
        least a net decrease, for the 5-year estimating period 
        for such legislation under consideration, in OASDI 
        benefits which, together with net decreases in OASDI 
        benefits resulting from such previous legislation which 
        are attributable to those portions of the 5-year 
        estimating periods for such previous legislation that 
        fall within the 5-year estimating period for such 
        legislation under consideration, equals the amount by 
        which the net decrease derived under subparagraph (B) 
        exceeds $250,000,000.
    (b) Application.--In applying paragraph (3) or (4) of 
subsection (a), any provision of any bill or joint resolution, 
as reported, or any amendment thereto, or conference report 
thereon, the effect of which is to provide for a net decrease 
for any period in taxes described in subsection (c)(2)(A) shall 
be disregarded if such bill, joint resolution, amendment, or 
conference report also includes a provision the effect of which 
is to provide for a net increase of at least an equivalent 
amount for such period in medicare taxes.
    (c) Definitions.--For purposes of this subsection:
            (1) The term ``OASDI benefits'' means the benefits 
        under the old-age, survivors, and disability insurance 
        programs under title II of the Social Security Act.
            (2) The term ``OASDI taxes'' means----
                    (A) the taxes imposed under sections 
                1401(a), 3101(a), and 3111(a) of the Internal 
                Revenue Code of 1986, and
                    (B) the taxes imposed under chapter 1 of 
                such Code (to the extent attributable to 
                section 86 of such Code).
            (3) The term ``medicare taxes'' means the taxes 
        imposed under sections 1401(b), 3101(b), and 3111(b) of 
        the Internal Revenue Code of 1986.
            (4) The term ``previous legislation'' shall not 
        include legislation enacted before fiscal year 1991.
            (5) The term ``5-year estimating period'' means, 
        with respect to any legislation, the fiscal year in 
        which such legislation becomes or would become 
        effective and the next 4 fiscal years.
            (6) No provision of any bill or resolution, or any 
        amendment thereto or conference report thereon, 
        involving a change in chapter 1 of the Internal Revenue 
        Code of 1986 shall be treated as affecting the amount 
        of OASDI taxes referred to in paragraph (2)(B) unless 
        such provision changes the income tax treatment of 
        OASDI benefits.
          * * * * * * *

 H4  deg.SEC. 13305. EXERCISE OF RULEMAKING POWER.

    This title and the amendments made by it are enacted by the 
Congress----
            (1) as an exercise of the rulemaking power of the 
        House of Representatives and the Senate, respectively, 
        and as such they shall be considered as a part of the 
        rules of each House, respectively, or of that House to 
        which they specifically apply, and such rules shall 
        supersede other rules only to the extent that they are 
        inconsistent therewith; and
            (2) with full recognition of the constitutional 
        right of either House to change such rules (so far as 
        relating to such House) at any time, in the same 
        manner, and to the same extent as in the case of any 
        other rule of such House.

 H4  deg.SEC. 13306. EFFECTIVE DATE.

    Sections 13301, 13302, and 13303 and any amendments made by 
such sections shall apply with respect to fiscal years 
beginning on or after October 1, 1990. Section 13304 shall be 
effective for annual reports of the Board of Trustees issued in 
or after calendar year 1991.
          * * * * * * *

              Subtitle E--Government-sponsored Enterprises

SEC. 13501. FINANCIAL SAFETY AND SOUNDNESS OF GOVERNMENT-SPONSORED 
                    ENTERPRISES.

    (a) Definition.--For purposes of this section, the terms 
``Government-sponsored enterprise'' and ``GSE'' mean the Farm 
Credit System (including the Farm Credit Banks, Banks for 
Cooperatives, and Federal Agricultural Mortgage Corporation), 
the Federal Home Loan Bank System, the Federal Home Loan 
Mortgage Corporation, the Federal National Mortgage 
Association, and the Student Loan Marketing Association.
          * * * * * * *
    (d) Access to Relevant Information.----
            (1) For the studies required by this section, each 
        GSE shall provide full and prompt access to the 
        Secretary of the Treasury and the Director of the 
        Congressional Budget Office to its books and records 
        and other information requested by the Secretary of the 
        Treasury or the Director of the Congressional Budget 
        Office.
            (2) In preparing the studies required by this 
        section, the Secretary of the Treasury and the Director 
        of the Congressional Budget Office may request 
        information from, or the assistance of, any Federal 
        department or agency authorized by law to supervise the 
        activities of a GSE.
    (e) Confidentiality of Relevant Information.----
            (1) The Secretary of the Treasury and the Director 
        of the Congressional Budget Office shall determine and 
        maintain the confidentiality of any book, record, or 
        information made available by a GSE under this section 
        in a manner consistent with the level of 
        confidentiality established for the material by the GSE 
        involved.
            (2) The Department of the Treasury shall be exempt 
        from section 552 of title 5, United States Code, for 
        any book, record, or information made available under 
        subsection (d) and determined by the Secretary of the 
        Treasury to be confidential under this subsection.
            (3) Any officer or employee of the Department of 
        the Treasury shall be subject to the penalties set 
        forth in section 1906 of title 18, United States Code, 
        if----
                    (A) by virtue of his or her employment or 
                official position, he or she has possession of 
                or access to any book, record, or information 
                made available under and determined to be 
                confidential under this section; and
                    (B) he or she discloses the material in any 
                manner other than----
                            (i) to an officer or employee of 
                        the Department of the Treasury; or
                            (ii) pursuant to the exception set 
                        forth in such section 1906.
            (4) The Congressional Budget Office shall be exempt 
        from section 203 of the Congressional Budget Act of 
        1974 with respect to any book, record, or information 
        made available under this subsection and determined by 
        the Director to be confidential under paragraph (1).
    (f) President's Budget.--The President's annual budget 
submission shall include an analysis of the financial condition 
of the GSEs and the financial exposure of the Government, if 
any, posed by GSEs.
          * * * * * * *END OF 
          STATUTE deg.ATTORNEY: RFW/FD (January 14, 
          2000) deg.
    

======================================================================


   SELECTED PROVISIONS OF CHAPTER 11 OF TITLE 31, UNITED STATES CODE

======================================================================

      
               CHAPTER 11 OF TITLE 31, UNITED STATES CODE

          * * * * * * *

                    SUBTITLE II--THE BUDGET PROCESS

          * * * * * * *

   CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

          * * * * * * *

Sec. 1105. Budget contents and submission to Congress

    (a) On or after the first Monday in January but not later 
than the first Monday in February of each year, the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information. The President 
shall include in each budget the following:
            (1) information on activities and functions of the 
        Government.
            (2) when practicable, information on costs and 
        achievements of Government programs.
            (3) other desirable classifications of information.
            (4) a reconciliation of the summary information on 
        expenditures with proposed appropriations.
            (5) except as provided in subsection (b) of this 
        section, estimated expenditures and proposed 
        appropriations the President decides are necessary to 
        support the Government in the fiscal year for which the 
        budget is submitted and the 4 fiscal years after that 
        year.
            (6) estimated receipts of the Government in the 
        fiscal year for which the budget is submitted and the 4 
        fiscal years after that year under--
                    (A) laws in effect when the budget is 
                submitted; and
                    (B) proposals in the budget to increase 
                revenues.
            (7) appropriations, expenditures, and receipts of 
        the Government in the prior fiscal year.
            (8) estimated expenditures and receipts, and 
        appropriations and proposed appropriations, of the 
        Government for the current fiscal year.
            (9) balanced statements of the--
                    (A) condition of the Treasury at the end of 
                the prior fiscal year;
                    (B) estimated condition of the Treasury at 
                the end of the current fiscal year; and
                    (C) estimated condition of the Treasury at 
                the end of the fiscal year for which the budget 
                is submitted if financial proposals in the 
                budget are adopted.
            (10) essential information about the debt of the 
        Government.
            (11) other financial information the President 
        decides is desirable to explain in practicable detail 
        the financial condition of the Government.
            (12) for each proposal in the budget for 
        legislation that would establish or expand a Government 
        activity or function, a table showing--
                    (A) the amount proposed in the budget for 
                appropriation and for expenditure because of 
                the proposal in the fiscal year for which the 
                budget is submitted; and
                    (B) the estimated appropriation required 
                because of the proposal for each of the 4 
                fiscal years after that year that the proposal 
                will be in effect.
            (13) an allowance for additional estimated 
        expenditures and proposed appropriations for the fiscal 
        year for which the budget is submitted.
            (14) an allowance for unanticipated uncontrollable 
        expenditures for that year.
            (15) a separate statement on each of the items 
        referred to in section 301(a)(1)-(5) of the 
        Congressional Budget Act of 1974 (2 U.S.C. 632(a)(1)-
        (5)).
            (16) the level of tax expenditures under existing 
        law in the tax expenditures budget (as defined in 
        section 3(a)(3) of the Congressional Budget Act of 1974 
        (2 U.S.C. 622(a)(3)) for the fiscal year for which the 
        budget is submitted, considering projected economic 
        factors and changes in the existing levels based on 
        proposals in the budget.
            (17) information on estimates of appropriations for 
        the fiscal year following the fiscal year for which the 
        budget is submitted for grants, contracts, and other 
        payments under each program for which there is an 
        authorization of appropriations for that following 
        fiscal year when the appropriations are authorized to 
        be included in an appropriation law for the fiscal year 
        before the fiscal year in which the appropriation is to 
        be available for obligation.
            (18) a comparison of the total amount of budget 
        outlays for the prior fiscal year, estimated in the 
        budget submitted for that year, for each major program 
        having relatively uncontrollable outlays with the total 
        amount of outlays for that program in that year.
            (19) a comparison of the total amount of receipts 
        for the prior fiscal year, estimated in the budget 
        submitted for that year, with receipts received in that 
        year, and for each major source of receipts, a 
        comparison of the amount of receipts estimated in that 
        budget with the amount of receipts from that source in 
        that year.
            (20) an analysis and explanation of the differences 
        between each amount compared under clauses (18) and 
        (19) of this subsection.
            (21) a horizontal budget showing--
                    (A) the programs for meteorology and of the 
                National Climate Program established under 
                section 5 of the National Climate Program Act 
                (15 U.S.C. 2904);
                    (B) specific aspects of the program of, and 
                appropriations for, each agency; and
                    (C) estimated goals and financial 
                requirements.
            (22) a statement of budget authority, proposed 
        budget authority, budget outlays, and proposed budget 
        outlays, and descriptive information in terms of--
                    (A) a detailed structure of national needs 
                that refers to the missions and programs of 
                agencies (as defined in section 101 of this 
                title); and
                    (B) the missions and basic programs.
            (23) separate appropriation accounts for 
        appropriations under the Occupational Safety and Health 
        Act of 1970(29 U.S.C. 651 et seq.) and the Federal Mine 
        Safety and Health Act of 1977 (30 U.S.C. 801 et seq.).
            (24) recommendations on the return of Government 
        capital to the Treasury by a mixed-ownership 
        corporation (as defined in section 9101(2) of this 
        title) that the President decides are desirable.
            (25) a separate appropriation account for 
        appropriations for each Office of Inspector General of 
        an establishment defined under section 11(2) of the 
        Inspector General Act of 1978.
            (26) a separate statement of the amount of 
        appropriations requested for the Office of National 
        Drug Control Policy and each program of the National 
        Drug Control Program.
            (27) a separate statement of the amount of 
        appropriations requested for the Office of Federal 
        Financial Management.
            (28) beginning with fiscal year 1999, a Federal 
        Government performance plan for the overall budget as 
        provided for under section 1115.
            (29) information about the Violent Crime Reduction 
        Trust Fund, including a separate statement of amounts 
        in that Trust Fund.
            (30) an analysis displaying, by agency, proposed 
        reductions in full-time equivalent positions compared 
        to the current year's level in order to comply with 
        section 5 of the Federal Workforce Restructuring Act of 
        1994.
            (31) a separate statement of the amount of 
        appropriations requested for the Chief Financial 
        Officer in the Executive Office of the President.
            (32) a statement of the levels of budget authority 
        and outlays for each program assumed to be extended in 
        the baseline as provided in section 257(b)(2)(A) and 
        for excise taxes assumed to be extended under section 
        257(b)(2)(C) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.
            (33) \2\ a separate appropriation account for 
        appropriations for the Council of the Inspectors 
        General on Integrity and Efficiency, and, included in 
        that account, a separate statement of the aggregate 
        amount of appropriations requested for each academy 
        maintained by the Council of the Inspectors General on 
        Integrity and Efficiency.
---------------------------------------------------------------------------
    \2\ Another par. (33) is set out after par. (34).
---------------------------------------------------------------------------
            (34) with respect to the amount of appropriations 
        requested for use by the Export-Import Bank of the 
        United States, a separate statement of the amount 
        requested for its program budget, the amount requested 
        for its administrative expenses, and of the amount 
        requested for its administrative expenses, the amount 
        requested for technology expenses.
            (33) \3\ (A)(i) a detailed, separate analysis, by 
        budget function, by agency, and by initiative area (as 
        determined by the administration) for the prior fiscal 
        year, the current fiscal year, the fiscal years for 
        which the budget is submitted, and the ensuing fiscal 
        year identifying the amounts of gross and net 
        appropriations or obligational authority and outlays 
        that contribute to homeland security, with separate 
        displays for mandatory and discretionary amounts, 
        including--
---------------------------------------------------------------------------
    \3\ So in original. Another par. (33) is set out preceding par. 
(34).
---------------------------------------------------------------------------
                    (I) summaries of the total amount of such 
                appropriations or new obligational authority 
                and outlays requested for homeland security;
                    (II) an estimate of the current service 
                levels of homeland security spending;
                    (III) the most recent risk assessment and 
                summary of homeland security needs in each 
                initiative area (as determined by the 
                administration); and
                    (IV) an estimate of user fees collected by 
                the Federal Government on behalf of homeland 
                security activities;
            (ii) with respect to subclauses (I) through (IV) of 
        clause (i), amounts shall be provided by account for 
        each program, project and activity; and
            (iii) an estimate of expenditures for homeland 
        security activities by State and local governments and 
        the private sector for the prior fiscal year and the 
        current fiscal year.
            (B) In this paragraph, consistent with the Office 
        of Management and Budget's June 2002 ``Annual Report to 
        Congress on Combatting Terrorism'', the term ``homeland 
        security'' refers to those activities that detect, 
        deter, protect against, and respond to terrorist 
        attacks occurring within the United States and its 
        territories.
            (C) In implementing this paragraph, including 
        determining what Federal activities or accounts 
        constitute homeland security for purposes of budgetary 
        classification, the Office of Management and Budget is 
        directed to consult periodically, but at least 
        annually, with the House and Senate Budget Committees, 
        the House and Senate Appropriations Committees, and the 
        Congressional Budget Office.
            (35) as supplementary materials, a separate 
        analysis of the budgetary effects for all prior fiscal 
        years, the current fiscal year, the fiscal year for 
        which the budget is submitted, and ensuing fiscal years 
        of the actions the Secretary of the Treasury has taken 
        or plans to take using any authority provided in the 
        Emergency Economic Stabilization Act of 2008, 
        including--
                    (A) an estimate of the current value of all 
                assets purchased, sold, and guaranteed under 
                the authority provided in the Emergency 
                Economic Stabilization Act of 2008 using 
                methodology required by the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661 et seq.) and 
                section 123 of the Emergency Economic 
                Stabilization Act of 2008;
                    (B) an estimate of the deficit, the debt 
                held by the public, and the gross Federal debt 
                using methodology required by the Federal 
                Credit Reform Act of 1990 and section 123 of 
                the Emergency Economic Stabilization Act of 
                2008;
                    (C) an estimate of the current value of all 
                assets purchased, sold, and guaranteed under 
                the authority provided in the Emergency 
                Economic Stabilization Act of 2008 calculated 
                on a cash basis;
                    (D) a revised estimate of the deficit, the 
                debt held by the public, and the gross Federal 
                debt, substituting the cash-based estimates in 
                subparagraph (C) for the estimates calculated 
                under subparagraph (A) pursuant to the Federal 
                Credit Reform Act of 1990 and section 123 of 
                the Emergency Economic Stabilization Act of 
                2008; and
                    (E) the portion of the deficit which can be 
                attributed to any action taken by the Secretary 
                using authority provided by the Emergency 
                Economic Stabilization Act of 2008 and the 
                extent to which the change in the deficit since 
                the most recent estimate is due to a reestimate 
                using the methodology required by the Federal 
                Credit Reform Act of 1990 and section 123 of 
                the Emergency Economic Stabilization Act of 
                2008.
    (b) Estimated expenditures and proposed appropriations for 
the legislative branch and the judicial branch to be included 
in each budget under subsection (a)(5) of this section shall be 
submitted to the President before October 16 of each year and 
included in the budget by the President without change.
    (c) The President shall recommend in the budget appropriate 
action to meet an estimated deficiency when the estimated 
receipts for the fiscal year for which the budget is submitted 
(under laws in effect when the budget is submitted) and the 
estimated amounts in the Treasury at the end of the current 
fiscal year available for expenditure in the fiscal year for 
which the budget is submitted, are less than the estimated 
expenditures for that year. The President shall make 
recommendations required by the public interest when the 
estimated receipts and estimated amounts in the Treasury are 
more than the estimated expenditures.
    (d) When the President submits a budget or supporting 
information about a budget, the President shall include a 
statement on all changes about the current fiscal year that 
were made before the budget or information was submitted.
    (e)(1) The President shall submit with materials related to 
each budget transmitted under subsection (a) on or after 
January 1, 1985, an analysis for the ensuing fiscal year that 
shall identify requested appropriations or new obligational 
authority and outlays for each major program that may be 
classified as a public civilian capital investment program and 
for each major program that may be classified as a military 
capital investment program, and shall contain summaries of the 
total amount of such appropriations or new obligational 
authority and outlays for public civilian capital investment 
programs and summaries of the total amount of such 
appropriations or new obligational authority and outlays for 
military capital investment programs. In addition, the analysis 
under this paragraph shall contain--
            (A) an estimate of the current service levels of 
        public civilian capital investment and of military 
        capital investment and alternative high and low levels 
        of such investments over a period of ten years in 
        current dollars and over a period of five years in 
        constant dollars;
            (B) the most recent assessment analysis and 
        summary, in a standard format, of public civilian 
        capital investment needs in each major program area 
        over a period of ten years;
            (C) an identification and analysis of the principal 
        policy issues that affect estimated public civilian 
        capital investment needs for each major program; and
            (D) an identification and analysis of factors that 
        affect estimated public civilian capital investment 
        needs for each major program, including but not limited 
        to the following factors:
                    (i) economic assumptions;
                    (ii) engineering standards;
                    (iii) estimates of spending for operation 
                and maintenance;
                    (iv) estimates of expenditures for similar 
                investments by State and local governments; and
                    (v) estimates of demand for public services 
                derived from such capital investments and 
                estimates of the service capacity of such 
                investments.
To the extent that any analysis required by this paragraph 
relates to any program for which Federal financial assistance 
is distributed under a formula prescribed by law, such analysis 
shall be organized by State and within each State by major 
metropolitan area if data are available.
    (2) For purposes of this subsection, any appropriation, new 
obligational authority, or outlay shall be classified as a 
public civilian capital investment to the extent that such 
appropriation, authority, or outlay will be used for the 
construction, acquisition, or rehabilitation of any physical 
asset that is capable of being used to produce services or 
other benefits for a number of years and is not classified as a 
military capital investment under paragraph (3). Such assets 
shall include (but not be limited to)--
            (A) roadways or bridges,
            (B) airports or airway facilities,
            (C) mass transportation systems,
            (D) wastewater treatment or related facilities,
            (E) water resources projects,
            (F) hospitals,
            (G) resource recovery facilities,
            (H) public buildings,
            (I) space or communications facilities,
            (J) railroads, and
            (K) federally assisted housing.
    (3) For purposes of this subsection, any appropriation, new 
obligational authority, or outlay shall be classified as a 
military capital investment to the extent that such 
appropriation, authority, or outlay will be used for the 
construction, acquisition, or rehabilitation of any physical 
asset that is capable of being used to produce services or 
other benefits for purposes of national defense and security 
for a number of years. Such assets shall include military 
bases, posts, installations, and facilities.
    (4) Criteria and guidelines for use in the identification 
of public civilian and military capital investments, for 
distinguishing between public civilian and military capital 
investments, and for distinguishing between major and nonmajor 
capital investment programs shall be issued by the Director of 
the Office of Management and Budget after consultation with the 
Comptroller General and the Congressional Budget Office. The 
analysis submitted under this subsection shall be accompanied 
by an explanation of such criteria and guidelines.
    (5) For purposes of this subsection--
            (A) the term ``construction'' includes the design, 
        planning, and erection of new structures and 
        facilities, the expansion of existing structures and 
        facilities, the reconstruction of a project at an 
        existing site or adjacent to an existing site, and the 
        installation of initial and replacement equipment for 
        such structures and facilities;
            (B) the term ``acquisition'' includes the addition 
        of land, sites, equipment, structures, facilities, or 
        rolling stock by purchase, lease-purchase, trade, or 
        donation; and
            (C) the term ``rehabilitation'' includes the 
        alteration of or correction of deficiencies in an 
        existing structure or facility so as to extend the 
        useful life or improve the effectiveness of the 
        structure or facility, the modernization or replacement 
        of equipment at an existing structure or facility, and 
        the modernization of, or replacement of parts for, 
        rolling stock.
    (f) The budget transmitted pursuant to subsection (a) for a 
fiscal year shall be prepared in a manner consistent with the 
requirements of the Balanced Budget and Emergency Deficit 
Control Act of 1985 that apply to that and subsequent fiscal 
years.
    (g)(1) The Director of the Office of Management and Budget 
shall establish the funding for advisory and assistance 
services for each department and agency as a separate object 
class in each budget annually submitted to the Congress under 
this section.
    (2)(A) In paragraph (1), except as provided in subparagraph 
(B), the term ``advisory and assistance services'' means the 
following services when provided by nongovernmental sources:
            (i) Management and professional support services.
            (ii) Studies, analyses, and evaluations.
            (iii) Engineering and technical services.
    (B) In paragraph (1), the term ``advisory and assistance 
services'' does not include the following services:
            (i) Routine automated data processing and 
        telecommunications services unless such services are an 
        integral part of a contract for the procurement of 
        advisory and assistance services.
            (ii) Architectural and engineering services, as 
        defined in section 1102 of title 40.
            (iii) Research on basic mathematics or medical, 
        biological, physical, social, psychological, or other 
        phenomena.
    (h)(1) If there is a medicare funding warning under section 
801(a)(2) of the Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003 made in a year, the President shall 
submit to Congress, within the 15-day period beginning on the 
date of the budget submission to Congress under subsection (a) 
for the succeeding year, proposed legislation to respond to 
such warning.
    (2) Paragraph (1) does not apply if, during the year in 
which the warning is made, legislation is enacted which 
eliminates excess general revenue medicare funding (as defined 
in section 801(c) of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003) for the 7-fiscal-
year reporting period, as certified by the Board of Trustees of 
each medicare trust fund (as defined in section 801(c)(5) of 
such Act) not later than 30 days after the date of the 
enactment of such legislation.

Sec. 1106. Supplemental budget estimates and changes

    (a) Before July 16 of each year, the President shall submit 
to Congress a supplemental summary of the budget for the fiscal 
year for which the budget is submitted under section 1105(a) of 
this title. The summary shall include----
            (1) for that fiscal year----
                    (A) substantial changes in or reappraisals 
                of estimates of expenditures and receipts;
                    (B) substantial obligations imposed on the 
                budget after its submission;
                    (C) current information on matters referred 
                to in section 1105(a)(8) and (9)(B) and (C) of 
                this title; and
                    (D) additional information the President 
                decides is advisable to provide Congress with 
                complete and current information about the 
                budget and current estimates of the functions, 
                obligations, requirements, and financial 
                condition of the United States Government;
            (2) for the 4 fiscal years following the fiscal 
        year for which the budget is submitted, information on 
        estimated expenditures for programs authorized to 
        continue in future years, or that are considered 
        mandatory, under law; and
            (3) for future fiscal years, information on 
        estimated expenditures of balances carried over from 
        the fiscal year for which the budget is submitted.
    (b) Before July 16 of each year, the President shall submit 
to Congress a statement of changes in budget authority 
requested, estimated budget outlays, and estimated receipts for 
the fiscal year for which the budget is submitted (including 
prior changes proposed for the executive branch of the 
Government) that the President decides are necessary and 
appropriate based on current information. The statement shall 
include the effect of those changes on the information 
submitted under section 1105(a)(1)-(14) and (b) of this title 
and shall include supporting information as practicable. The 
statement submitted before July 16 may be included in the 
information submitted under subsection (a)(1) of this section.
    (c) Subsection (f) of section 1105 shall apply to revisions 
and supplemental summaries submitted under this section to the 
same extent that such subsection applies to the budget 
submitted under section 1105(a) to which such revisions and 
summaries relate.
          * * * * * * *

Sec. 1109. Current programs and activities estimates

    (a) On or before the first Monday after January 3 of each 
year (on or before February 5 in 1986), the President shall 
submit to both Houses of Congress the estimated budget outlays 
and proposed budget authority that would be included in the 
budget for the following fiscal year if programs and activities 
of the United States Government were carried on during that 
year at the same level as the current fiscal year without a 
change in policy. The President shall state the estimated 
budget outlays and proposed budget authority by function and 
subfunction under the classifications in the budget summary 
table under the heading ``Budget Authority and Outlays by 
Function and Agency'', by major programs in each function, and 
by agency. The President also shall include a statement of the 
economic and program assumptions on which those budget outlays 
and budget authority are based, including inflation, real 
economic growth, and unemployment rates, program caseloads, and 
pay increases.
    (b) The Joint Economic Committee shall review the estimated 
budget outlays and proposed budget authority and submit an 
economic evaluation of the budget outlays and budget authority 
to the Committees on the Budget of both Houses before March 1 
of each year.
          * * * * * * *ATTORNEY: RFW/FD (January 14, 
          2000) deg.
    

======================================================================


    SELECTED PROVISIONS OF THE UNFUNDED MANDATES REFORM ACT OF 1995

======================================================================

      
    SELECTED PROVISIONS OF THE UNFUNDED MANDATES REFORM ACT OF 1995

          * * * * * * *

             TITLE I--LEGISLATIVE ACCOUNTABILITY AND REFORM

          * * * * * * *

SEC. 103. [2 U.S.C. 1511] COST OF REGULATIONS.

    (a) Sense of the Congress.--It is the sense of the Congress 
that Federal agencies should review and evaluate planned 
regulations to ensure that the cost estimates provided by the 
Congressional Budget Office will be carefully considered as 
regulations are promulgated.
    (b) Statement of Cost.--At the request of a committee 
chairman or ranking minority member, the Director shall, to the 
extent practicable, prepare a comparison between----
            (1) an estimate by the relevant agency, prepared 
        under section 202 of this Act, of the costs of 
        regulations implementing an Act containing a Federal 
        mandate; and
            (2) the cost estimate prepared by the Congressional 
        Budget Office for such Act when it was enacted by the 
        Congress.
    (c) Cooperation of Office of Management and Budget.--At the 
request of the Director of the Congressional Budget Office, the 
Director of the Office of Management and Budget shall provide 
data and cost estimates for regulations implementing an Act 
containing a Federal mandate covered by part B of title IV of 
the Congressional Budget and Impoundment Control Act of 1974 
(as added by section 101 of this Act).
          * * * * * * *

SEC. 105. [2 U.S.C. 1512] CONSIDERATION FOR FEDERAL FUNDING.

    Nothing in this Act shall preclude a State, local, or 
tribal government that already complies with all or part of the 
Federal intergovernmental mandates included in the bill, joint 
resolution, amendment, motion, or conference report from 
consideration for Federal funding under section 425(a)(2) of 
the Congressional Budget and Impoundment Control Act of 1974 
(as added by section 101 of this Act) for the cost of the 
mandate, including the costs the State, local, or tribal 
government is currently paying and any additional costs 
necessary to meet the mandate.

SEC. 106. [2 U.S.C. 1513] IMPACT ON LOCAL GOVERNMENTS.

    (a) Findings.--The Senate finds that----
            (1) the Congress should be concerned about shifting 
        costs from Federal to State and local authorities and 
        should be equally concerned about the growing tendency 
        of States to shift costs to local governments;
            (2) cost shifting from States to local governments 
        has, in many instances, forced local governments to 
        raise property taxes or curtail sometimes essential 
        services; and
            (3) increases in local property taxes and cuts in 
        essential services threaten the ability of many 
        citizens to attain and maintain the American dream of 
        owning a home in a safe, secure community.
    (b) Sense of the Senate.--It is the sense of the Senate 
that----
            (1) the Federal Government should not shift certain 
        costs to the State, and States should end the practice 
        of shifting costs to local governments, which forces 
        many local governments to increase property taxes;
            (2) States should end the imposition, in the 
        absence of full consideration by their legislatures, of 
        State issued mandates on local governments without 
        adequate State funding, in a manner that may displace 
        other essential government priorities; and
            (3) one primary objective of this Act and other 
        efforts to change the relationship among Federal, 
        State, and local governments should be to reduce taxes 
        and spending at all levels and to end the practice of 
        shifting costs from one level of government to another 
        with little or no benefit to taxpayers.

SEC. 107. [2 U.S.C. 1514] ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

    (a) Motions To Strike in the Committee of the Whole.--
Clause 5 of rule XXIII of the Rules of the House of 
Representatives is amended by adding at the end the following:
    ``(c) In the consideration of any measure for amendment in 
the Committee of the Whole containing any Federal mandate the 
direct costs of which exceed the threshold in section 424(a)(1) 
of the Unfunded Mandate Reform Act of 1995, it shall always be 
in order, unless specifically waived by terms of a rule 
governing consideration of that measure, to move to strike such 
Federal mandate from the portion of the bill then open to 
amendment.''.
    (b) Committee on Rules Reports on Waived Points of Order.--
The Committee on Rules shall include in the report required by 
clause 1(d) of rule XI (relating to its activities during the 
Congress) of the Rules of the House of Representatives a 
separate item identifying all waivers of points of order 
relating to Federal mandates, listed by bill or joint 
resolution number and the subject matter of that measure.
          * * * * * * *

             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

SEC. 201. [2 U.S.C. 1531] REGULATORY PROCESS.

    Each agency shall, unless otherwise prohibited by law, 
assess the effects of Federal regulatory actions on State, 
local, and tribal governments, and the private sector (other 
than to the extent that such regulations incorporate 
requirements specifically set forth in law).

SEC. 202. [2 U.S.C. 1532] STATEMENTS TO ACCOMPANY SIGNIFICANT 
                    REGULATORY ACTIONS.

    (a) In General.--Unless otherwise prohibited by law, before 
promulgating any general notice of proposed rulemaking that is 
likely to result in promulgation of any rule that includes any 
Federal mandate that may result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the 
private sector, of $100,000,000 or more (adjusted annually for 
inflation) in any 1 year, and before promulgating any final 
rule for which a general notice of proposed rulemaking was 
published, the agency shall prepare a written statement 
containing----
            (1) an identification of the provision of Federal 
        law under which the rule is being promulgated;
            (2) a qualitative and quantitative assessment of 
        the anticipated costs and benefits of the Federal 
        mandate, including the costs and benefits to State, 
        local, and tribal governments or the private sector, as 
        well as the effect of the Federal mandate on health, 
        safety, and the natural environment and such an 
        assessment shall include----
                    (A) an analysis of the extent to which such 
                costs to State, local, and tribal governments 
                may be paid with Federal financial assistance 
                (or otherwise paid for by the Federal 
                Government); and
                    (B) the extent to which there are available 
                Federal resources to carry out the 
                intergovernmental mandate;
            (3) estimates by the agency, if and to the extent 
        that the agency determines that accurate estimates are 
        reasonably feasible, of----
                    (A) the future compliance costs of the 
                Federal mandate; and
                    (B) any disproportionate budgetary effects 
                of the Federal mandate upon any particular 
                regions of the nation or particular State, 
                local, or tribal governments, urban or rural or 
                other types of communities, or particular 
                segments of the private sector;
            (4) estimates by the agency of the effect on the 
        national economy, such as the effect on productivity, 
        economic growth, full employment, creation of 
        productive jobs, and international competitiveness of 
        United States goods and services, if and to the extent 
        that the agency in its sole discretion determines that 
        accurate estimates are reasonably feasible and that 
        such effect is relevant and material; and
            (5)(A) a description of the extent of the agency's 
        prior consultation with elected representatives (under 
        section 204) of the affected State, local, and tribal 
        governments;
            (B) a summary of the comments and concerns that 
        were presented by State, local, or tribal governments 
        either orally or in writing to the agency; and
            (C) a summary of the agency's evaluation of those 
        comments and concerns.
    (b) Promulgation.--In promulgating a general notice of 
proposed rulemaking or a final rule for which a statement under 
subsection (a) is required, the agency shall include in the 
promulgation a summary of the information contained in the 
statement.
    (c) Preparation in Conjunction With Other Statement.--Any 
agency may prepare any statement required under subsection (a) 
in conjunction with or as a part of any other statement or 
analysis, provided that the statement or analysis satisfies the 
provisions of subsection (a).

SEC. 203. [2 U.S.C. 1533] SMALL GOVERNMENT AGENCY PLAN.

    (a) Effects on Small Governments.--Before establishing any 
regulatory requirements that might significantly or uniquely 
affect small governments, agencies shall have developed a plan 
under which the agency shall----
            (1) provide notice of the requirements to 
        potentially affected small governments, if any;
            (2) enable officials of affected small governments 
        to provide meaningful and timely input in the 
        development of regulatory proposals containing 
        significant Federal intergovernmental mandates; and
            (3) inform, educate, and advise small governments 
        on compliance with the requirements.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to each agency to carry out the provisions 
of this section and for no other purpose, such sums as are 
necessary.

SEC. 204. [2 U.S.C. 1534] STATE, LOCAL, AND TRIBAL GOVERNMENT INPUT.

    (a) In General.--Each agency shall, to the extent permitted 
in law, develop an effective process to permit elected officers 
of State, local, and tribal governments (or their designated 
employees with authority to act on their behalf) to provide 
meaningful and timely input in the development of regulatory 
proposals containing significant Federal intergovernmental 
mandates.
    (b) Meetings Between State, Local, Tribal and Federal 
Officers.--The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to actions in support of intergovernmental 
communications where----
            (1) meetings are held exclusively between Federal 
        officials and elected officers of State, local, and 
        tribal governments (or their designated employees with 
        authority to act on their behalf) acting in their 
        official capacities; and
            (2) such meetings are solely for the purposes of 
        exchanging views, information, or advice relating to 
        the management or implementation of Federal programs 
        established pursuant to public law that explicitly or 
        inherently share intergovernmental responsibilities or 
        administration.
    (c) Implementing Guidelines.--No later than 6 months after 
the date of enactment of this Act, the President shall issue 
guidelines and instructions to Federal agencies for appropriate 
implementation of subsections (a) and (b) consistent with 
applicable laws and regulations.

SEC. 205. [2 U.S.C. 1535] LEAST BURDENSOME OPTION OR EXPLANATION 
                    REQUIRED.

    (a) In General.--Except as provided in subsection (b), 
before promulgating any rule for which a written statement is 
required under section 202, the agency shall identify and 
consider a reasonable number of regulatory alternatives and 
from those alternatives select the least costly, most cost-
effective or least burdensome alternative that achieves the 
objectives of the rule, for----
            (1) State, local, and tribal governments, in the 
        case of a rule containing a Federal intergovernmental 
        mandate; and
            (2) the private sector, in the case of a rule 
        containing a Federal private sector mandate.
    (b) Exception.--The provisions of subsection (a) shall 
apply unless----
            (1) the head of the affected agency publishes with 
        the final rule an explanation of why the least costly, 
        most cost-effective or least burdensome method of 
        achieving the objectives of the rule was not adopted; 
        or
            (2) the provisions are inconsistent with law.
    (c) OMB Certification.--No later than 1 year after the date 
of the enactment of this Act, the Director of the Office of 
Management and Budget shall certify to Congress, with a written 
explanation, agency compliance with this section and include in 
that certification agencies and rulemakings that fail to 
adequately comply with this section.

SEC. 206. [2 U.S.C. 1536] ASSISTANCE TO THE CONGRESSIONAL BUDGET 
                    OFFICE.

    The Director of the Office of Management and Budget shall--
--
            (1) collect from agencies the statements prepared 
        under section 202; and
            (2) periodically forward copies of such statements 
        to the Director of the Congressional Budget Office on a 
        reasonably timely basis after promulgation of the 
        general notice of proposed rulemaking or of the final 
        rule for which the statement was prepared.

SEC. 207. [2 U.S.C. 1537] PILOT PROGRAM ON SMALL GOVERNMENT 
                    FLEXIBILITY.

    (a) In General.--The Director of the Office of Management 
and Budget, in consultation with Federal agencies, shall 
establish pilot programs in at least 2 agencies to test 
innovative, and more flexible regulatory approaches that----
            (1) reduce reporting and compliance burdens on 
        small governments; and
            (2) meet overall statutory goals and objectives.
    (b) Program Focus.--The pilot programs shall focus on rules 
in effect or proposed rules, or a combination thereof.

SEC. 208. [2 U.S.C. 1538] ANNUAL STATEMENTS TO CONGRESS ON AGENCY 
                    COMPLIANCE.

    No later than 1 year after the effective date of this title 
and annually thereafter, the Director of the Office of 
Management and Budget shall submit to the Congress, including 
the Committee on Governmental Affairs of the Senate and the 
Committee on Government Reform and Oversight of the House of 
Representatives, a written report detailing compliance by each 
agency during the preceding reporting period with the 
requirements of this title.

SEC. 209. [2 U.S.C. 1531 NT] EFFECTIVE DATE.

    This title and the amendments made by this title shall take 
effect on the date of the enactment of this Act.

                 TITLE III--REVIEW OF FEDERAL MANDATES

          * * * * * * *

SEC. 304. [2 U.S.C. 1554] ANNUAL REPORT TO CONGRESS REGARDING FEDERAL 
                    COURT RULINGS.

    No later than 4 months after the date of enactment of this 
Act, and no later than March 15 of each year thereafter, the 
Advisory Commission on Intergovernmental Relations shall submit 
to the Congress, including the Committee on Government Reform 
and Oversight of the House of Representatives and the Committee 
on Governmental Affairs of the Senate, and to the President a 
report describing any Federal court case to which a State, 
local, or tribal government was a party in the preceding 
calendar year that required such State, local, or tribal 
government to undertake responsibilities or activities, beyond 
those such government would otherwise have undertaken, to 
comply with Federal statutes and regulations.

SEC. 305. [2 U.S.C. 1555] DEFINITION.

    Notwithstanding section 3 of this Act, for purposes of this 
title the term ``Federal mandate'' means any provision in 
statute or regulation or any Federal court ruling that imposes 
an enforceable duty upon State, local, or tribal governments 
including a condition of Federal assistance or a duty arising 
from participation in a voluntary Federal program.
          * * * * * * *

                       TITLE IV--JUDICIAL REVIEW

SEC. 401. [2 U.S.C. 1571] JUDICIAL REVIEW.

    (a) Agency Statements on Significant Regulatory Actions.--
--
            (1) In general.--Compliance or noncompliance by any 
        agency with the provisions of sections 202 and 203(a) 
        (1) and (2) shall be subject to judicial review only in 
        accordance with this section.
            (2) Limited review of agency compliance or 
        noncompliance.--(A) Agency compliance or noncompliance 
        with the provisions of sections 202 and 203(a) (1) and 
        (2) shall be subject to judicial review only under 
        section 706(1) of title 5, United States Code, and only 
        as provided under subparagraph (B).
            (B) If an agency fails to prepare the written 
        statement (including the preparation of the estimates, 
        analyses, statements, or descriptions) under section 
        202 or the written plan under section 203(a) (1) and 
        (2), a court may compel the agency to prepare such 
        written statement.
            (3) Review of agency rules.--In any judicial review 
        under any other Federal law of an agency rule for which 
        a written statement or plan is required under sections 
        202 and 203(a) (1) and (2), the inadequacy or failure 
        to prepare such statement (including the inadequacy or 
        failure to prepare any estimate, analysis, statement or 
        description) or written plan shall not be used as a 
        basis for staying, enjoining, invalidating or otherwise 
        affecting such agency rule.
            (4) Certain information as part of record.--Any 
        information generated under sections 202 and 203(a) (1) 
        and (2) that is part of the rulemaking record for 
        judicial review under the provisions of any other 
        Federal law may be considered as part of the record for 
        judicial review conducted under such other provisions 
        of Federal law.
            (5) Application of other federal law.--For any 
        petition under paragraph (2) the provisions of such 
        other Federal law shall control all other matters, such 
        as exhaustion of administrative remedies, the time for 
        and manner of seeking review and venue, except that if 
        such other Federal law does not provide a limitation on 
        the time for filing a petition for judicial review that 
        is less than 180 days, such limitation shall be 180 
        days after a final rule is promulgated by the 
        appropriate agency.
            (6) Effective date.--This subsection shall take 
        effect on October 1, 1995, and shall apply only to any 
        agency rule for which a general notice of proposed 
        rulemaking is promulgated on or after such date.
    (b) Judicial Review and Rule of Construction.--Except as 
provided in subsection (a)----
            (1) any estimate, analysis, statement, description 
        or report prepared under this Act, and any compliance 
        or noncompliance with the provisions of this Act, and 
        any determination concerning the applicability of the 
        provisions of this Act shall not be subject to judicial 
        review; and
            (2) no provision of this Act shall be construed to 
        create any right or benefit, substantive or procedural, 
        enforceable by any person in any administrative or 
        judicial action.ATTORNEY: RFW/FD (January 14, 
        2000) deg.
    

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SELECTED PROVISIONS OF THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

======================================================================

      
SELECTED PROVISIONS OF THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

SEC. 123. CREDIT REFORM.

    1. (a) In General--Subject to subsection (b), the costs of 
purchases of troubled assets made under section 101(a) and 
guarantees of troubled assets under section 102, and any cash 
flows associated with the activities authorized in section 102 
and subsections (a), (b), and (c) of section 106 shall be 
determined as provided under the Federal Credit Reform Act of 
1990 (2 U.S.C. 661 et. seq.).
    (b) Costs--For the purposes of section 502(5) of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))----
    (1) the cost of troubled assets and guarantees of troubled 
assets shall be calculated by adjusting the discount rate in 
section 502(5)(E) (2 U.S.C. 661a(5)(E)) for market risks; and
    (2) the cost of a modification of a troubled asset or 
guarantee of a troubled asset shall be the difference between 
the current estimate consistent with paragraph (1) under the 
terms of the troubled asset or guarantee of the troubled asset 
and the current estimate consistent with paragraph (1) under 
the terms of the troubled asset or guarantee of the troubled 
asset, as modified.
          * * * * * * *

SEC. 134. RECOUPMENT.

    Upon the expiration of the 5-year period beginning upon the 
date of the enactment of this Act, the Director of the Office 
of Management and Budget, in consultation with the Director of 
the Congressional Budget Office, shall submit a report to the 
Congress on the net amount within the Troubled Asset Relief 
Program under this Act. In any case where there is a shortfall, 
the President shall submit a legislative proposal that recoups 
from the financial industry an amount equal to the shortfall in 
order to ensure that the Troubled Asset Relief Program does not 
add to the deficit or national debt.

                  TITLE II--BUDGET-RELATED PROVISIONS

SEC. 201. INFORMATION FOR CONGRESSIONAL SUPPORT AGENCIES.

    Upon request, and to the extent otherwise consistent with 
law, all information used by the Secretary in connection with 
activities authorized under this Act (including the records to 
which the Comptroller General is entitled under this Act) shall 
be made available to congressional support agencies (in 
accordance with their obligations to support the Congress as 
set out in their authorizing statutes) for the purposes of 
assisting the committees of Congress with conducting oversight, 
monitoring, and analysis of the activities authorized under 
this Act.

SEC. 202. REPORTS BY THE OFFICE OF MANAGEMENT AND BUDGET AND THE 
                    CONGRESSIONAL BUDGET OFFICE.

    (a) Reports by the Office of Management and Budget--Within 
60 days of the first exercise of the authority granted in 
section 101(a), but in no case later than December 31, 2008, 
and semiannually thereafter, the Office of Management and 
Budget shall report to the President and the Congress----
    (1) the estimate, notwithstanding section 502(5)(F) of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(F)), as of 
the first business day that is at least 30 days prior to the 
issuance of the report, of the cost of the troubled assets, and 
guarantees of the troubled assets, determined in accordance 
with section 123;
    (2) the information used to derive the estimate, including 
assets purchased or guaranteed, prices paid, revenues received, 
the impact on the deficit and debt, and a description of any 
outstanding commitments to purchase troubled assets; and
    (3) a detailed analysis of how the estimate has changed 
from the previous report.
    Beginning with the second report under subsection (a), the 
Office of Management and Budget shall explain the differences 
between the Congressional Budget Office estimates delivered in 
accordance with subsection (b) and prior Office of Management 
and Budget estimates.
    (b) Reports by the Congressional Budget Office--Within 45 
days of receipt by the Congress of each report from the Office 
of Management and Budget under subsection (a), the 
Congressional Budget Office shall report to the Congress the 
Congressional Budget Office's assessment of the report 
submitted by the Office of Management and Budget, including----
    (1) the cost of the troubled assets and guarantees of the 
troubled assets,
    (2) the information and valuation methods used to calculate 
such cost, and
    (3) the impact on the deficit and the debt.
    (c) Financial Expertise--In carrying out the duties in this 
subsection or performing analyses of activities under this Act, 
the Director of the Congressional Budget Office may employ 
personnel and procure the services of experts and consultants.
    (d) Authorization of Appropriations--There are authorized 
to be appropriated such sums as may be necessary to produce 
reports required by this section.

SEC. 203. ANALYSIS IN PRESIDENT'S BUDGET.\1\

    (a) In General--Section 1105(a) of title 31, United States 
Code, is amended by adding at the end the following new 
paragraph:
---------------------------------------------------------------------------
    \1\ See also section (35) of Sec. 1105 of Chapter 11 of Title 31 of 
the United States Code.
---------------------------------------------------------------------------
    (35) as supplementary materials, a separate analysis of the 
budgetary effects for all prior fiscal years, the current 
fiscal year, the fiscal year for which the budget is submitted, 
and ensuing fiscal years of the actions the Secretary of the 
Treasury has taken or plans to take using any authority 
provided in the Emergency Economic Stabilization Act of 2008, 
including----
    (A) an estimate of the current value of all assets 
purchased, sold, and guaranteed under the authority provided in 
the Emergency Economic Stabilization Act of 2008 using 
methodology required by the Federal Credit Reform Act of 1990 
(2 U.S.C. 661 et seq.) and section 123 of the Emergency 
Economic Stabilization Act of 2008;
    (B) an estimate of the deficit, the debt held by the 
public, and the gross Federal debt using methodology required 
by the Federal Credit Reform Act of 1990 and section 123 of the 
Emergency Economic Stabilization Act of 2008;
    (C) an estimate of the current value of all assets 
purchased, sold, and guaranteed under the authority provided in 
the Emergency Economic Stabilization Act of 2008 calculated on 
a cash basis;
    (D) a revised estimate of the deficit, the debt held by the 
public, and the gross Federal debt, substituting the cash-based 
estimates in subparagraph (C) for the estimates calculated 
under subparagraph (A) pursuant to the Federal Credit Reform 
Act of 1990 and section 123 of the Emergency Economic 
Stabilization Act of 2008; and
    (E) the portion of the deficit which can be attributed to 
any action taken by the Secretary using authority provided by 
the Emergency Economic Stabilization Act of 2008 and the extent 
to which the change in the deficit since the most recent 
estimate is due to a reestimate using the methodology required 
by the Federal Credit Reform Act of 1990 and section 123 of the 
Emergency Economic Stabilization Act of 2008.'
    (b) Consultation--In implementing this section, the 
Director of Office of Management and Budget shall consult 
periodically, but at least annually, with the Committee on the 
Budget of the House of Representatives, the Committee on the 
Budget of the Senate, and the Director of the Congressional 
Budget Office.
    (c) Effective Date--This section and the amendment made by 
this section shall apply beginning with respect to the fiscal 
year 2010 budget submission of the President.

SEC. 204. EMERGENCY TREATMENT.

    All provisions of this Act are designated as an emergency 
requirement and necessary to meet emergency needs pursuant to 
section 204(a) of S. Con. Res 21 (110th Congress), the 
concurrent resolution on the budget for fiscal year 2008 and 
rescissions of any amounts provided in this Act shall not be 
counted for purposes of budget enforcement.
      

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       HOUSE RULES OF THE 110th CONGRESS ON BUDGETARY ENFORCEMENT

======================================================================

      
       HOUSE RULES OF THE 110th CONGRESS ON BUDGETARY ENFORCEMENT

          * * * * * * *

                                RULE X.

                      Organization of Committees.

          * * * * * * *
General oversight responsibilities
          * * * * * * *
    2. (a) * * *
          * * * * * * *
    (d)(1) Not later than February 15 of the first session of a 
Congress, each standing committee shall, in a meeting that is 
open to the public and with a quorum present, adopt its 
oversight plan for that Congress. Such plan shall be submitted 
simultaneously to the Committee on Government Reform and to the 
Committee on House Administration. In developing its plan each 
committee shall, to the maximum extent feasible----
            (A) consult with other committees that have 
        jurisdiction over the same or related laws, programs, 
        or agencies within its jurisdiction with the objective 
        of ensuring maximum coordination and cooperation among 
        committees when conducting reviews of such laws, 
        programs, or agencies and include in its plan an 
        explanation of steps that have been or will be taken to 
        ensure such coordination and cooperation;
            (B) give priority consideration to including in its 
        plan the review of those laws, programs, or agencies 
        operating under permanent budget authority or permanent 
        statutory authority; and
            (C) have a view toward ensuring that all 
        significant laws, programs, or agencies within its 
        jurisdiction are subject to review every 10 years.
          * * * * * * *
Additional functions of committees
    4. (a) * * *
          * * * * * * *
Budget Act responsibilities
    (f)(1) Each standing committee shall submit to the 
Committee on the Budget not later than six weeks after the 
President submits his budget, or at such time as the Committee 
on the Budget may request----
            (A) its views and estimates with respect to all 
        matters to be set forth in the concurrent resolution on 
        the budget for the ensuing fiscal year that are within 
        its jurisdiction or functions; and
            (B) an estimate of the total amounts of new budget 
        authority, and budget outlays resulting therefrom, to 
        be provided or authorized in all bills and resolutions 
        within its jurisdiction that it intends to be effective 
        during that fiscal year.
    (2) The views and estimates submitted by the Committee on 
Ways and Means under subparagraph (1) shall include a specific 
recommendation, made after holding public hearings, as to the 
appropriate level of the public debt that should be set forth 
in the concurrent resolution on the budget and serve as the 
basis for an increase or decrease in the statutory limit on 
such debt under the procedures provided by rule XXIII.
          * * * * * * *
Permanent Select Committee on Intelligence
    11. (a) * * *
          * * * * * * *
    (c)(1) * * *
          * * * * * * *
    (3) Within six weeks after the President submits a budget 
under section 1105(a) of title 31, United States Code, or at 
such time as the Committee on the Budget may request, the 
select committee shall submit to the Committee on the Budget 
the views and estimates described in section 301(d) of the 
Congressional Budget Act of 1974 regarding matters within the 
jurisdiction of the select committee.
          * * * * * * *

                               RULE XIII.

                    Calendars and Committee Reports.

          * * * * * * *
Content of reports
    3. (a) * * *
          * * * * * * *
    (c) The report of a committee on a measure that has been 
approved by the committee shall include, separately set out and 
clearly identified, the following:
            (1)  * * *
            (2) The statement required by section 308(a) of the 
        Congressional Budget Act of 1974, except that an 
        estimate of new budget authority shall include, when 
        practicable, a comparison of the total estimated 
        funding level for the relevant programs to the 
        appropriate levels under current law.
            (3) An estimate and comparison prepared by the 
        Director of the Congressional Budget Office under 
        section 402 of the Congressional Budget Act of 1974 if 
        timely submitted to the committee before the filing of 
        the report.
          * * * * * * *
    (d) Each report of a committee on a public bill or public 
joint resolution shall contain the following:
            (1) A statement citing the specific powers granted 
        to Congress in the Constitution to enact the law 
        proposed by the bill or joint resolution.
            (2)(A) An estimate by the committee of the costs 
        that would be incurred in carrying out the bill or 
        joint resolution in the fiscal year in which it is 
        reported and in each of the five fiscal years following 
        that fiscal year (or for the authorized duration of any 
        program authorized by the bill or joint resolution if 
        less than five years);
            (B) a comparison of the estimate of costs described 
        in subdivision (A) made by the committee with any 
        estimate of such costs made by a Government agency and 
        submitted to such committee; and
            (C) when practicable, a comparison of the total 
        estimated funding level for the relevant programs with 
        the appropriate levels under current law.
            (3)(A) In subparagraph (2) the term ``Government 
        agency'' includes any department, agency, 
        establishment, wholly owned Government corporation, or 
        instrumentality of the Federal Government or the 
        government of the District of Columbia.
            (B) Subparagraph (2) does not apply to the 
        Committee on Appropriations, the Committee on House 
        Administration, the Committee on Rules, or the 
        Committee on Standards of Official Conduct, and does 
        not apply when a cost estimate and comparison prepared 
        by the Director of the Congressional Budget Office 
        under section 402 of the Congressional Budget Act of 
        1974 has been included in the report under paragraph 
        (c)(3).
          * * * * * * *

                              RULE XVIII.

      The Committee of the Whole House on the State of the Union.

          * * * * * * *
Concurrent resolution on the budget
    10. (a) At the conclusion of general debate in the 
Committee of the Whole House on the state of the Union on a 
concurrent resolution on the budget under section 305(a) of the 
Congressional Budget Act of 1974, the concurrent resolution 
shall be considered as read for amendment.
    (b) It shall not be in order in the House or in the 
Committee of the Whole House on the state of the Union to 
consider an amendment to a concurrent resolution on the budget, 
or an amendment thereto, unless the concurrent resolution, as 
amended by such amendment or amendments----
            (1) would be mathematically consistent except as 
        limited by paragraph (c); and
            (2) would contain all the matter set forth in 
        paragraphs (1) through (5) of section 301(a) of the 
        Congressional Budget Act of 1974.
    (c)(1) Except as specified in subparagraph (2), it shall 
not be in order in the House or in the Committee of the Whole 
House on the state of the Union to consider an amendment to a 
concurrent resolution on the budget, or an amendment thereto, 
that proposes to change the amount of the appropriate level of 
the public debt set forth in the concurrent resolution, as 
reported.
    (2) Amendments to achieve mathematical consistency under 
section 305(a)(5) of the Congressional Budget Act of 1974, if 
offered by direction of the Committee on the Budget, may 
propose to adjust the amount of the appropriate level of the 
public debt set forth in the concurrent resolution, as 
reported, to reflect changes made in other figures contained in 
the concurrent resolution.
          * * * * * * *

                               RULE XXI.

                     Restrictions on Certain Bills.

          * * * * * * *
General appropriation bills and amendments
    2. (a) * * *
          * * * * * * *
    (e) A provision other than an appropriation designated an 
emergency under section 251(b)(2) or section 252(e) of the 
Balanced Budget and Emergency Deficit Control Act, a rescission 
of budget authority, or a reduction in direct spending or an 
amount for a designated emergency may not be reported in an 
appropriation bill or joint resolution containing an emergency 
designation under section 251(b)(2) or section 252(e) of such 
Act and may not be in order as an amendment thereto.
          * * * * * * *
    7. It shall not be in order to consider a concurrent 
resolution on the budget, or an amendment thereto, or a 
conference report thereon that contains reconciliation 
directives under section 310 of the Congressional Budget Act of 
1974 that specify changes in law reducing the surplus or 
increasing the deficit for either the period comprising the 
current fiscal year and the five fiscal years beginning with 
the fiscal year that ends in the following calendar year or the 
period comprising the current fiscal year and the ten fiscal 
years beginning with the fiscal year that ends in the following 
calendar year. In determining whether reconciliation directives 
specify changes in law reducing the surplus or increasing the 
deficit, the sum of the directives for each reconciliation bill 
(under section 310 of the Congressional Budget Act of 1974) 
envisioned by that measure shall be evaluated.
    8. With respect to measures considered pursuant to a 
special order of business, points of order under title III of 
the Congressional Budget Act of 1974 shall operate without 
regard to whether the measure concerned has been reported from 
committee. Such points of order shall operate with respect to 
(as the case may be)----
            (a) the form of a measure recommended by the 
        reporting committee where the statute uses the term 
        ``as reported'' (in the case of a measure that has been 
        so reported);
            (b) the form of the measure made in order as an 
        original bill or joint resolution for the purpose of 
        amendment; or
            (c) the form of the measure on which the previous 
        question is ordered directly to passage.
          * * * * * * *
    10. It shall not be in order to consider any bill, joint 
resolution, amendment, or conference report if the provisions 
of such measure affecting direct spending and revenues have the 
net effect of increasing the deficit or reducing the surplus 
for either the period comprising the current fiscal year and 
the five fiscal years beginning with the fiscal year that ends 
in the following calendar year or the period comprising the 
current fiscal year and the ten fiscal years beginning with the 
fiscal year that ends in the following calendar year. The 
effect of such measure on the deficit or surplus shall be 
determined on the basis of estimates made by the Committee on 
the Budget relative to----
            (a) the most recent baseline estimates supplied by 
        the Congressional Budget Office consistent with section 
        257 of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 used in considering a concurrent 
        resolution on the budget; or
            (b) after the beginning of a new calendar year and 
        before consideration of a concurrent resolution on the 
        budget, the most recent baseline estimates supplied by 
        the Congressional Budget Office consistent with section 
        257 of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
          * * * * * * *

                              RULE XXVIII.

                    Statutory Limit on Public Debt.

    1. Upon adoption by Congress of a concurrent resolution on 
the budget under section 301 or 304 of the Congressional Budget 
Act of 1974 that sets forth, as the appropriate level of the 
public debt for the period to which the concurrent resolution 
relates, an amount that is different from the amount of the 
statutory limit on the public debt that otherwise would be in 
effect for that period, the Clerk shall prepare an engrossment 
of a joint resolution increasing or decreasing, as the case may 
be, the statutory limit on the public debt in the form 
prescribed in clause 2. Upon engrossment of the joint 
resolution, the vote by which the concurrent resolution on the 
budget was finally agreed to in the House shall also be 
considered as a vote on passage of the joint resolution in the 
House, and the joint resolution shall be considered as passed 
by the House and duly certified and examined. The engrossed 
copy shall be signed by the Clerk and transmitted to the Senate 
for further legislative action.
    2. The matter after the resolving clause in a joint 
resolution described in clause 1 shall be as follows: ``That 
subsection (b) of section 3101 of title 31, United States Code, 
is amended by striking out the dollar limitation contained in 
such subsection and inserting in lieu thereof `$__'.'', with 
the blank being filled with a dollar limitation equal to the 
appropriate level of the public debt set forth pursuant to 
section 301(a)(5) of the Congressional Budget Act of 1974 in 
the relevant concurrent resolution described in clause 1. If an 
adopted concurrent resolution under clause 1 sets forth 
different appropriate levels of the public debt for separate 
periods, only one engrossed joint resolution shall be prepared 
under clause 1; and the blank referred to in the preceding 
sentence shall be filled with the limitation that is to apply 
for each period.
    3. (a) The report of the Committee on the Budget on a 
concurrent resolution described in clause 1 and the joint 
explanatory statement of the managers on a conference report to 
accompany such a concurrent resolution each shall contain a 
clear statement of the effect the eventual enactment of a joint 
resolution engrossed under this rule would have on the 
statutory limit on the public debt.
    (b) It shall not be in order for the House to consider a 
concurrent resolution described in clause 1, or a conference 
report thereon, unless the report of the Committee on the 
Budget or the joint explanatory statement of the managers 
complies with paragraph (a).
    4. Nothing in this rule shall be construed as limiting or 
otherwise affecting----
            (a) the power of the House or the Senate to 
        consider and pass bills or joint resolutions, without 
        regard to the procedures under clause 1, that would 
        change the statutory limit on the public debt; or
            (b) the rights of Members, Delegates, the Resident 
        Commissioner, or committees with respect to the 
        introduction, consideration, and reporting of such 
        bills or joint resolutions.
    5. In this rule the term ``statutory limit on the public 
debt'' means the maximum face amount of obligations issued 
under authority of chapter 31 of title 31, United States Code, 
and obligations guaranteed as to principal and interest by the 
United States (except such guaranteed obligations as may be 
held by the Secretary of the Treasury), as determined under 
section 3101(b) of such title after the application of section 
3101(a) of such title, that may be outstanding at any one time.
          * * * * * * *

                       H. RES. 6 (110th CONGRESS)

SEC. 511. SEPARATE ORDERS.

    (a) Budget Matters--(1) During the One Hundred Tenth 
Congress, references in section 306 of the Congressional Budget 
Act of 1974 to a resolution shall be construed in the House of 
Representatives as references to a joint resolution.
    (2) During the One Hundred Tenth Congress, in the case of a 
reported bill or joint resolution considered pursuant to a 
special order of business, a point of order under section 303 
of the Congressional Budget Act of 1974 shall be determined on 
the basis of the text made in order as an original bill or 
joint resolution for the purpose of amendment or to the text on 
which the previous question is ordered directly to passage, as 
the case may be.
    (3) During the One Hundred Tenth Congress, a provision in a 
bill or joint resolution, or in an amendment thereto or a 
conference report thereon, that establishes prospectively for a 
Federal office or position a specified or minimum level of 
compensation to be funded by annual discretionary 
appropriations shall not be considered as providing new 
entitlement authority under section 401 of the Congressional 
Budget Act of 1974.
          * * * * * * *
      

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                SELECTED PROVISIONS IN S. CON. RES. 21,
                             110TH CONGRESS

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                SELECTED PROVISIONS IN S. CON. RES. 21,
                             110TH CONGRESS

          * * * * * * *

                        TITLE II--BUDGET PROCESS

SEC. 201. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

    (a) Point of Order.--
            (1) In general.--It shall not be in order in the 
        Senate to consider any direct spending or revenue 
        legislation that would increase the on-budget deficit 
        or cause an on-budget deficit for either of the 
        applicable time periods as measured in paragraphs (5) 
        and (6).
            (2) Applicable time periods.--For purposes of this 
        subsection, the term ``applicable time period'' means 
        either--
                    (A) the period of the current fiscal year, 
                the budget year, and the ensuing 4 fiscal years 
                following the budget year; or
                    (B) the period of the current fiscal year, 
                the budget year, and the ensuing 9 fiscal years 
                following the budget year.
            (3) Direct spending legislation.--For purposes of 
        this subsection and except as provided in paragraph 
        (4), the term ``direct spending legislation'' means any 
        bill, joint resolution, amendment, motion, or 
        conference report that affects direct spending as that 
        term is defined by, and interpreted for purposes of, 
        the Balanced Budget and Emergency Deficit Control Act 
        of 1985.
            (4) Exclusion.--For purposes of this subsection, 
        the terms ``direct spending legislation'' and ``revenue 
        legislation'' do not include--
                    (A) any concurrent resolution on the 
                budget; or
                    (B) any provision of legislation that 
                affects the full funding of, and continuation 
                of, the deposit insurance guarantee commitment 
                in effect on the date of enactment of the 
                Budget Enforcement Act of 1990.
            (5) Baseline.--Estimates prepared pursuant to this 
        subsection shall--
                    (A) use the baseline surplus or deficit 
                used for the most recently adopted concurrent 
                resolution on the budget; and
                    (B) be calculated under the requirements of 
                subsections (b) through (d) of section 257 of 
                the Balanced Budget and Emergency Deficit 
                Control Act of 1985 (as in effect prior to 
                September 30, 2002) for fiscal years beyond 
                those covered by that concurrent resolution on 
                the budget.
            (6) Prior surplus.--If direct spending or revenue 
        legislation increases the on-budget deficit or causes 
        an on-budget deficit when taken individually, it must 
        also increase the on-budget deficit or cause an on-
        budget deficit when taken together with all direct 
        spending and revenue legislation enacted since the 
        beginning of the calendar year not accounted for in the 
        baseline under paragraph (5)(A), except that direct 
        spending or revenue effects resulting in net deficit 
        reduction enacted in any bill pursuant to a 
        reconciliation instruction since the beginning of that 
        same calendar year shall never be made available on the 
        pay-as-you-go ledger and shall be dedicated only for 
        deficit reduction.
    (b) Supermajority Waiver and Appeals.--
            (1) Waiver.--This section may be waived or 
        suspended in the Senate only by the affirmative vote of 
        three-fifths of the Members, duly chosen and sworn.
            (2) Appeals.--Appeals in the Senate from the 
        decisions of the Chair relating to any provision of 
        this section shall be limited to 1 hour, to be equally 
        divided between, and controlled by, the appellant and 
        the manager of the bill or joint resolution, as the 
        case may be. An affirmative vote of three-fifths of the 
        Members of the Senate, duly chosen and sworn, shall be 
        required to sustain an appeal of the ruling of the 
        Chair on a point of order raised under this section.
    (c) Determination of Budget Levels.--For purposes of this 
section, the levels of new budget authority, outlays, and 
revenues for a fiscal year shall be determined on the basis of 
estimates made by the Senate Committee on the Budget.
    (d) Sunset.--This section shall expire on September 30, 
2017.
    (e) Repeal.--In the Senate, section 505 of H. Con. Res. 95 
(108th Congress), the fiscal year 2004 concurrent resolution on 
the budget, shall no longer apply.

SEC. 202. SENATE POINT OF ORDER AGAINST RECONCILIATION LEGISLATION THAT 
                    WOULD INCREASE THE DEFICIT OR REDUCE A SURPLUS.

    (a) In General.--It shall not be in order in the Senate to 
consider any reconciliation bill, resolution, amendment, 
amendment between Houses, motion, or conference report pursuant 
to section 310 of the Congressional Budget Act of 1974 that 
would cause or increase a deficit or reduce a surplus in either 
of the following periods:
            (1) The current fiscal year, the budget year, and 
        the ensuing 4 fiscal years following the budget year.
            (2) The current fiscal year, the budget year, and 
        the ensuing 9 fiscal years following the budget year.
    (b) Supermajority Waiver and Appeal in the Senate.--
            (1) Waiver.--This section may be waived or 
        suspended in the Senate only by an affirmative vote of 
        three-fifths of the Members, duly chosen and sworn.
            (2) Appeal.--An affirmative vote of three-fifths of 
        the Members of the Senate, duly chosen and sworn, shall 
        be required in the Senate to sustain an appeal of the 
        ruling of the Chair on a point of order raised under 
        this section.
    (c) Determination of Budget Levels.--For purposes of this 
section, the levels of net deficit increases shall be 
determined on the basis of estimates provided by the Senate 
Committee on the Budget.
          * * * * * * *

SEC. 204. EMERGENCY LEGISLATION.

    (a) Senate.--
            (1) Authority to designate.--In the Senate, with 
        respect to a provision of direct spending or receipts 
        legislation or appropriations for discretionary 
        accounts that Congress designates as an emergency 
        requirement in such measure, the amounts of new budget 
        authority, outlays, and receipts in all fiscal years 
        resulting from that provision shall be treated as an 
        emergency requirement for the purpose of this 
        subsection.
            (2) Exemption of emergency provisions.--Any new 
        budget authority, outlays, and receipts resulting from 
        any provision designated as an emergency requirement, 
        pursuant to this subsection, in any bill, joint 
        resolution, amendment, or conference report shall not 
        count for purposes of sections 302 and 311 of the 
        Congressional Budget Act of 1974 and sections 201, 203, 
        and 207 of this resolution (relating to pay-as-you-go 
        in the Senate, long-term deficits, and discretionary 
        spending limits).
            (3) Designations.--If a provision of legislation is 
        designated as an emergency requirement under this 
        subsection, the committee report and any statement of 
        managers accompanying that legislation shall include an 
        explanation of the manner in which the provision meets 
        the criteria in paragraph (6).
            (4) Definitions.--In this subsection, the terms 
        ``direct spending'', ``receipts'', and ``appropriations 
        for discretionary accounts'' mean any provision of a 
        bill, joint resolution, amendment, motion, or 
        conference report that affects direct spending, 
        receipts, or appropriations as those terms have been 
        defined and interpreted for purposes of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
            (5) Point of order.--
                    (A) In general.--When the Senate is 
                considering a bill, resolution, amendment, 
                motion, or conference report, if a point of 
                order is made by a Senator against an emergency 
                designation in that measure, that provision 
                making such a designation shall be stricken 
                from the measure and may not be offered as an 
                amendment from the floor.
                    (B) Supermajority waiver and appeals.--
                            (i) Waiver.--Subparagraph (A) may 
                        be waived or suspended in the Senate 
                        only by an affirmative vote of three-
                        fifths of the Members, duly chosen and 
                        sworn.
                            (ii) Appeals.--Appeals in the 
                        Senate from the decisions of the Chair 
                        relating to any provision of this 
                        paragraph shall be limited to 1 hour, 
                        to be equally divided between, and 
                        controlled by, the appellant and the 
                        manager of the bill or joint 
                        resolution, as the case may be. An 
                        affirmative vote of three-fifths of the 
                        Members of the Senate, duly chosen and 
                        sworn, shall be required to sustain an 
                        appeal of the ruling of the Chair on a 
                        point of order raised under this 
                        paragraph.
                    (C) Definition of an emergency 
                designation.--For purposes of subparagraph (A), 
                a provision shall be considered an emergency 
                designation if it designates any item as an 
                emergency requirement pursuant to this 
                subsection.
                    (D) Form of the point of order.--A point of 
                order under subparagraph (A) may be raised by a 
                Senator as provided in section 313(e) of the 
                Congressional Budget Act of 1974.
                    (E) Conference reports.--When the Senate is 
                considering a conference report on, or an 
                amendment between the Houses in relation to, a 
                bill, upon a point of order being made by any 
                Senator pursuant to this subsection, and such 
                point of order being sustained, such material 
                contained in such conference report shall be 
                deemed stricken, and the Senate shall proceed 
                to consider the question of whether the Senate 
                shall recede from its amendment and concur with 
                a further amendment, or concur in the House 
                amendment with a further amendment, as the case 
                may be, which further amendment shall consist 
                of only that portion of the conference report 
                or House amendment, as the case may be, not so 
                stricken. Any such motion in the Senate shall 
                be debatable. In any case in which such point 
                of order is sustained against a conference 
                report (or Senate amendment derived from such 
                conference report by operation of this 
                paragraph), no further amendment shall be in 
                order.
            (6) Criteria.--
                    (A) In general.--For purposes of this 
                subsection, any provision is an emergency 
                requirement if the situation addressed by such 
                provision is--
                            (i) necessary, essential, or vital 
                        (not merely useful or beneficial);
                            (ii) sudden, quickly coming into 
                        being, and not building up over time;
                            (iii) an urgent, pressing, and 
                        compelling need requiring immediate 
                        action;
                            (iv) subject to subparagraph (B), 
                        unforeseen, unpredictable, and 
                        unanticipated; and
                            (v) not permanent, temporary in 
                        nature.
                    (B) Unforeseen.--An emergency that is part 
                of an aggregate level of anticipated 
                emergencies, particularly when normally 
                estimated in advance, is not unforeseen.
            (7) Repeal.--In the Senate, section 402 of H. Con. 
        Res. 95 (109th Congress), the concurrent resolution on 
        the budget for fiscal year 2006, shall no longer apply.
    (b) House.--In the House, if any bill or joint resolution, 
or amendment offered or considered as adopted or conference 
report thereon, that makes appropriations for discretionary 
amounts, and such amounts are designated as necessary to meet 
emergency needs, then the new budget authority and outlays 
resulting therefrom shall not be counted for the purposes of 
titles III and IV of the Congressional Budget Act of 1974.

SEC. 205. EXTENSION OF ENFORCEMENT OF BUDGETARY POINTS OF ORDER IN THE 
                    SENATE.

    Notwithstanding any provision of the Congressional Budget 
Act of 1974, subsections (c)(2) and (d)(3) of section 904 of 
the Congressional Budget Act of 1974 shall remain in effect for 
purposes of Senate enforcement through September 30, 2017, and 
Section 403 of H. Con. Res. 95 (109th Congress) shall no longer 
apply in the Senate.
          * * * * * * *
      

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                SELECTED PROVISIONS OF S. CON. RES. 70,
                             110TH CONGRESS

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                SELECTED PROVISIONS OF S. CON. RES. 70,
                             110TH CONGRESS

          * * * * * * *

                     TITLE III--BUDGET ENFORCEMENT

SEC. 301. PROGRAM INTEGRITY INITIATIVES AND OTHER ADJUSTMENTS.

    (a) Adjustments to Discretionary Spending Limits----
            (1) Continuing Disability Reviews and Supplemental 
        Security Income Redeterminations--In the House, prior 
        to consideration of any bill, joint resolution, 
        amendment, or conference report making appropriations 
        for fiscal year 2009 that appropriates $264,000,000 for 
        continuing disability reviews and Supplemental Security 
        Income redeterminations for the Social Security 
        Administration, and provides an additional 
        appropriation of up to $240,000,000, and the amount is 
        designated for continuing disability reviews and 
        Supplemental Security Income redeterminations for the 
        Social Security Administration, the allocation to the 
        Committee on Appropriations shall be increased by the 
        amount of the additional budget authority and outlays 
        resulting from that budget authority for fiscal year 
        2009.
            (2) Internal Revenue Service Tax Compliance--In the 
        House, prior to consideration of any bill, joint 
        resolution, amendment, or conference report making 
        appropriations for fiscal year 2009 that appropriates 
        $6,997,000,000 to the Internal Revenue Service and the 
        amount is designated to improve compliance with the 
        provisions of the Internal Revenue Code of 1986 and 
        provides an additional appropriation of up to 
        $490,000,000, and the amount is designated to improve 
        compliance with the provisions of the Internal Revenue 
        Code of 1986, the allocation to the Committee on 
        Appropriations shall be increased by the amount of the 
        additional budget authority and outlays resulting from 
        that budget authority for fiscal year 2009.
            (3) Health Care Fraud and Abuse Control Program--In 
        the House, prior to consideration of any bill, joint 
        resolution, amendment, or conference report making 
        appropriations for fiscal year 2009 that appropriates 
        up to $198,000,000 and the amount is designated to the 
        health care fraud and abuse control program at the 
        Department of Health and Human Services, the allocation 
        to the Committee on Appropriations shall be increased 
        by the amount of additional budget authority and 
        outlays resulting from that budget authority for fiscal 
        year 2009.
            (4) Unemployment Insurance Program Integrity 
        Activities--In the House, prior to consideration of any 
        bill, joint resolution, amendment, or conference report 
        making appropriations for fiscal year 2009 that 
        appropriates $10,000,000 for in-person reemployment and 
        eligibility assessments and unemployment insurance 
        improper payment reviews for the Department of Labor 
        and provides an additional appropriation of up to 
        $40,000,000, and the amount is designated for in-person 
        reemployment and eligibility assessments and 
        unemployment insurance improper payment reviews for the 
        Department of Labor, the allocation to the Committee on 
        Appropriations shall be increased by the amount of 
        additional budget authority and outlays resulting from 
        that budget authority for fiscal year 2009.
    (b) Costs of Overseas Deployments and Emergency Needs----
            (1) Overseas Deployments and Related Activities----
                    (A) In the House, if any bill, joint 
                resolution, amendment, or conference report 
                makes appropriations for fiscal year 2008 or 
                fiscal year 2009 for overseas deployments and 
                related activities and such amounts are so 
                designated pursuant to this subparagraph, then 
                the allocation to the Committee on 
                Appropriations may be adjusted by the amounts 
                provided in such legislation for that purpose 
                up to the amounts of budget authority specified 
                in section 104(21) for fiscal year 2008 or 
                fiscal year 2009 and the new outlays resulting 
                therefrom.
                    (B) In the House, if any bill, joint 
                resolution, amendment, or conference report 
                makes appropriations for fiscal year 2008 or 
                fiscal year 2009 for overseas deployments and 
                related activities above the amounts of budget 
                authority and new outlays specified in 
                subparagraph (A) and such amounts are so 
                designated pursuant to this subparagraph, then 
                new budget authority, outlays, or receipts 
                resulting therefrom shall not count for the 
                purposes of titles III and IV of the 
                Congressional Budget Act of 1974.
            (2) Emergency Needs--In the House, if any bill, 
        joint resolution, amendment, or conference report makes 
        appropriations for discretionary amounts and such 
        amounts are designated as necessary to meet emergency 
        needs, then the new budget authority and outlays 
        resulting therefrom shall not count for the purposes of 
        titles III and IV of the Congressional Budget Act of 
        1974.
    (c) Procedure for Adjustments----
            (1) In General--In the House, prior to 
        consideration of any bill, joint resolution, amendment, 
        or conference report, the Chairman of the Committee on 
        the Budget shall make the adjustments set forth in 
        subsection (a) for the incremental new budget authority 
        in that measure and the outlays resulting from that 
        budget authority if that measure meets the requirements 
        set forth in subsection (a), except that no adjustment 
        shall be made for provisions exempted for the purposes 
        of titles III and IV of the Congressional Budget Act of 
        1974 under subsection (b) of this section.
    (2) Matters to be Adjusted--The adjustments referred to in 
paragraph (1) are to be made to the allocations made under this 
concurrent resolution on the budget pursuant to section 302(a) 
of the Congressional Budget Act of 1974.
    (d) Supplemental Appropriations for Fiscal Year 2008--In 
the House, if any measure making supplemental appropriations 
for fiscal year 2008 is enacted, the Chairman of the Committee 
on the Budget shall make the appropriate adjustments in 
allocations and aggregates to reflect the difference between 
such measure and the corresponding levels assumed in this 
resolution.

SEC. 302. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.\1\

    (a) In General--In the House, except as provided in 
subsection (b), any bill, joint resolution, amendment, or 
conference report making a general appropriation or continuing 
appropriation may not provide for advance appropriations.
---------------------------------------------------------------------------
    \1\ See the Appendix for Advance Appropriations Summary.
---------------------------------------------------------------------------
    (b) Exceptions--In the House, an advance appropriation may 
be provided for fiscal year 2010 for programs, projects, 
activities, or accounts identified in the joint explanatory 
statement of managers to accompany this resolution under the 
heading `Accounts Identified for Advance Appropriations' in an 
aggregate amount not to exceed $28,852,000,000 in new budget 
authority, and for 2011, accounts separately identified under 
the same heading.
    (c) Definition--In this section, the term `advance 
appropriation' means any new discretionary budget authority 
provided in a bill or joint resolution making general 
appropriations or any new discretionary budget authority 
provided in a bill or joint resolution continuing 
appropriations for fiscal year 2009 that first becomes 
available for any fiscal year after 2009.

SEC. 311. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-
                    TERM DEFICITS.

    (a) Congressional Budget Office Analysis of Proposals.--The 
Director of the Congressional Budget Office shall, to the 
extent practicable, prepare for each bill and joint resolution 
reported from committee (except measures within the 
jurisdiction of the Committee on Appropriations), and 
amendments thereto and conference reports thereon, an estimate 
of whether the measure would cause, relative to current law, a 
net increase in deficits in excess of $5,000,000,000 in any of 
the 4 consecutive 10-year periods beginning with the first 
fiscal year that is 10 years after the budget year provided for 
in the most recently adopted concurrent resolution on the 
budget.
    (b) Point of Order.--It shall not be in order in the Senate 
to consider any bill, joint resolution, amendment, motion, or 
conference report that would cause a net increase in deficits 
in excess of $5,000,000,000 in any of the 4 consecutive 10-year 
periods described in subsection (a).
    (c) Supermajority Waiver and Appeal in the Senate.----
            (1) Waiver.--This section may be waived or 
        suspended only by the affirmative vote of three-fifths 
        of the Members, duly chosen and sworn.
            (2) Appeal.--An affirmative vote of three-fifths of 
        the Members, duly chosen and sworn, shall be required 
        to sustain an appeal of the ruling of the Chair on a 
        point of order raised under this section.
    (d) Determinations of Budget Levels.--For purposes of this 
section, the levels of net deficit increases shall be 
determined on the basis of estimates provided by the Senate 
Committee on the Budget.
    (e) Sunset.--This section shall expire on September 30, 
2017.
    (f) Repeal.--In the Senate, subsections (a) through (d) and 
subsection (f) of section 203 of S. Con. Res. 21 (110th 
Congress) shall no longer apply.

SEC. 312. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY INITIATIVES, 
                    AND OTHER ADJUSTMENTS.

    (a) Senate Point of Order----
            (1) In General--Except as otherwise provided in 
        this section, it shall not be in order in the Senate to 
        consider any bill or joint resolution (or amendment, 
        motion, or conference report on that bill or joint 
        resolution) that would cause the discretionary spending 
        limits in this section to be exceeded.
            (2) Supermajority Waiver and Appeals----
                    (A) Waiver--This subsection may be waived 
                or suspended in the Senate only by the 
                affirmative vote of three-fifths of the 
                Members, duly chosen and sworn.
                    (B) Appeals--Appeals in the Senate from the 
                decisions of the Chair relating to any 
                provision of this subsection shall be limited 
                to 1 hour, to be equally divided between, and 
                controlled by, the appellant and the manager of 
                the bill or joint resolution. An affirmative 
                vote of three-fifths of the Members of the 
                Senate, duly chosen and sworn, shall be 
                required to sustain an appeal of the ruling of 
                the Chair on a point of order raised under this 
                subsection.
    (b) Senate Discretionary Spending Limits--In the Senate and 
as used in this section, the term `discretionary spending 
limit' means----
            (1) for fiscal year 2008, $1,050,478,000,000 in new 
        budget authority and $1,094,944,000,000 in outlays; and
            (2) for fiscal year 2009, $1,011,718,000,000 in new 
        budget authority and $1,106,112,000,000 in outlays;
    as adjusted in conformance with the adjustment procedures 
in subsection (c).
    (c) Adjustments in the Senate----
            (1) In General--After the reporting of a bill or 
        joint resolution relating to any matter described in 
        paragraph (2), or the offering of an amendment thereto 
        or the submission of a conference report thereon----
                    (A) the Chairman of the Senate Committee on 
                the Budget may adjust the discretionary 
                spending limits, budgetary aggregates, and 
                allocations pursuant to section 302(a) of the 
                Congressional Budget Act of 1974, by the amount 
                of new budget authority in that measure for 
                that purpose and the outlays flowing therefrom; 
                and
                    (B) following any adjustment under 
                subparagraph (A), the Senate Committee on 
                Appropriations may report appropriately revised 
                suballocations pursuant to section 302(b) of 
                the Congressional Budget Act of 1974 to carry 
                out this subsection.
            (2) Matters Described--Matters referred to in 
        paragraph (1) are as follows:
                    (A) Continuing Disability Reviews and SSI 
                Redeterminations--If a bill or joint resolution 
                is reported making appropriations for fiscal 
                year 2009 that appropriates $264,000,000 for 
                continuing disability reviews and Supplemental 
                Security Income redeterminations for the Social 
                Security Administration, and provides an 
                additional appropriation of up to $240,000,000 
                for continuing disability reviews and 
                Supplemental Security Income redeterminations 
                for the Social Security Administration, then 
                the discretionary spending limits, allocation 
                to the Senate Committee on Appropriations, and 
                aggregates may be adjusted by the amounts 
                provided in such legislation for that purpose, 
                but not to exceed $240,000,000 in budget 
                authority and outlays flowing therefrom for 
                fiscal year 2009.
                    (B) Internal Revenue Service Tax 
                Enforcement--If a bill or joint resolution is 
                reported making appropriations for fiscal year 
                2009 that appropriates $6,997,000,000 for the 
                Internal Revenue Service for enhanced tax 
                enforcement to address the Federal tax gap 
                (taxes owed but not paid) and provides an 
                additional appropriation of up to $490,000,000 
                for the Internal Revenue Service for enhanced 
                tax enforcement to address the Federal tax gap, 
                then the discretionary spending limits, 
                allocation to the Senate Committee on 
                Appropriations, and aggregates may be adjusted 
                by the amounts provided in such legislation for 
                that purpose, but not to exceed $490,000,000 in 
                budget authority and outlays flowing therefrom 
                for fiscal year 2009.
                    (C) Health Care Fraud and Abuse Control--If 
                a bill or joint resolution is reported making 
                appropriations for fiscal year 2009 that 
                appropriates up to $198,000,000 to the Health 
                Care Fraud and Abuse Control program at the 
                Department of Health and Human Services, then 
                the discretionary spending limits, allocation 
                to the Senate Committee on Appropriations, and 
                aggregates may be adjusted by the amounts 
                provided in such legislation for that purpose, 
                but not to exceed $198,000,000 in budget 
                authority and outlays flowing therefrom for 
                fiscal year 2009.
                    (D) Unemployment Insurance Improper Payment 
                Reviews--If a bill or joint resolution is 
                reported making appropriations for fiscal year 
                2009 that appropriates $10,000,000 for in-
                person reemployment and eligibility assessments 
                and unemployment insurance improper payment 
                reviews, and provides an additional 
                appropriation of up to $40,000,000 for in-
                person reemployment and eligibility assessments 
                and unemployment insurance improper payment 
                reviews, then the discretionary spending 
                limits, allocation to the Senate Committee on 
                Appropriations, and aggregates may be adjusted 
                by the amounts provided in such legislation for 
                that purpose, but not to exceed $40,000,000 in 
                budget authority and outlays flowing therefrom 
                for fiscal year 2009.
            (3) Adjustments for Overseas Deployments and Other 
        Activities--The Chairman of the Senate Committee on the 
        Budget may adjust the discretionary spending limits, 
        allocations to the Senate Committee on Appropriations, 
        and aggregates for one or more----
                    (A) bills reported by the Senate Committee 
                on Appropriations or passed by the House of 
                Representatives;
                    (B) joint resolutions or amendments 
                reported by the Senate Committee on 
                Appropriations;
                    (C) amendments between the Houses received 
                from the House of Representatives or Senate 
                amendments offered by the authority of the 
                Senate Committee on Appropriations; or
                    (D) conference reports;
    making appropriations for fiscal year 2008 or 2009 for 
overseas deployments and other activities, by the amounts 
provided in such legislation for those purposes (and so 
designated pursuant to this paragraph), up to the amounts of 
budget authority specified in section 104(21) for fiscal years 
2008 and 2009 and the new outlays flowing therefrom.
    (d) Supplemental Appropriations for Fiscal Year 2008- If 
legislation making supplemental appropriations for fiscal year 
2008 is enacted, the Chairman of the Senate Committee on the 
Budget may make the appropriate adjustments in allocations, 
aggregates, discretionary spending limits, and other levels of 
new budget authority and outlays for 2008 and 2009 to reflect 
the difference between such measure and the corresponding 
levels assumed in this resolution.
    (e) Inapplicability--In the Senate, subsections (a), (b), 
(c), (e), and (f) of section 207 of S. Con. Res. 21 (110th 
Congress) shall no longer apply.

SEC. 313. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.\2\

    (a) In General----
            (1) Point of Order--Except as provided in 
        subsection (b), it shall not be in order in the Senate 
        to consider any bill, joint resolution, motion, 
        amendment, or conference report that would provide an 
        advance appropriation.
            (2) Definition--In this section, the term `advance 
        appropriation' means any new budget authority provided 
        in a bill or joint resolution making appropriations for 
        fiscal year 2009 that first becomes available for any 
        fiscal year after 2009, or any new budget authority 
        provided in a bill or joint resolution making general 
        appropriations or continuing appropriations for fiscal 
        year 2010, that first becomes available for any fiscal 
        year after 2010.
    (b) Exceptions--Advance appropriations may be provided----
            (1) for fiscal years 2010 and 2011 for programs, 
        projects, activities, or accounts identified in the 
        joint explanatory statement of managers accompanying 
        this resolution under the heading `Accounts Identified 
        for Advance Appropriations' in an aggregate amount not 
        to exceed $28,852,000,000 in new budget authority in 
        each year; and
            (2) for the Corporation for Public Broadcasting.
    (c) Supermajority Waiver and Appeal----
            (1) Waiver--In the Senate, subsection (a) may be 
        waived or suspended only by an affirmative vote of 
        three-fifths of the Members, duly chosen and sworn.
            (2) Appeal--An affirmative vote of three-fifths of 
        the Members of the Senate, duly chosen and sworn, shall 
        be required to sustain an appeal of the ruling of the 
        Chair on a point of order raised under subsection (a).
    (d) Form of Point of Order--A point of order under 
subsection (a) may be raised by a Senator as provided in 
section 313(e) of the Congressional Budget Act of 1974.
    (e) Conference Reports--When the Senate is considering a 
conference report on, or an amendment between the Houses in 
relation to, a bill, upon a point of order being made by any 
Senator pursuant to this section, and such point of order being 
sustained, such material contained in such conference report 
shall be deemed stricken, and the Senate shall proceed to 
consider the question of whether the Senate shall recede from 
its amendment and concur with a further amendment, or concur in 
the House amendment with a further amendment, as the case may 
be, which further amendment shall consist of only that portion 
of the conference report or House amendment, as the case may 
be, not so stricken. Any such motion in the Senate shall be 
debatable. In any case in which such point of order is 
sustained against a conference report (or Senate amendment 
derived from such conference report by operation of this 
subsection), no further amendment shall be in order.
    (f) Inapplicability--In the Senate, section 206(a) of S. 
Con. Res. 21 (110th Congress) shall no longer apply.
---------------------------------------------------------------------------
    \2\ See the Appendix for Advance Appropriations Summary.
---------------------------------------------------------------------------

SEC. 314. SENATE POINT OF ORDER AGAINST PROVISIONS OF APPROPRIATIONS 
                    LEGISLATION THAT CONSTITUTE CHANGES IN MANDATORY 
                    PROGRAMS WITH NET COSTS.

    (a) In General.--In the Senate, it shall not be in order to 
consider any appropriations legislation, including any 
amendment thereto, motion in relation thereto, or conference 
report thereon, that includes any provision which constitutes a 
change in a mandatory program producing net costs, as defined 
in subsection (b), that would have been estimated as affecting 
direct spending or receipts under section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (as in effect 
prior to September 30, 2002) were they included in legislation 
other than appropriations legislation. A point of order 
pursuant to this section shall be raised against such provision 
or provisions as described in subsections (e) and (f).
    (b) Changes in Mandatory Programs Producing Net Costs.--A 
provision or provisions shall be subject to a point of order 
pursuant to this section if----
            (1) the provision would increase budget authority 
        in at least 1 of the 9 fiscal years that follow the 
        budget year and over the period of the total of the 
        budget year and the 9 fiscal years following the budget 
        year;
            (2) the provision would increase net outlays over 
        the period of the total of the 9 fiscal years following 
        the budget year; and
            (3) the sum total of all changes in mandatory 
        programs in the legislation would increase net outlays 
        as measured over the period of the total of the 9 
        fiscal years following the budget year.
    (c) Determination.--The determination of whether a 
provision is subject to a point of order pursuant to this 
section shall be made by the Committee on the Budget of the 
Senate.
    (d) Supermajority Waiver and Appeal.--This section may be 
waived or suspended in the Senate only by an affirmative vote 
of three-fifths of the Members, duly chosen and sworn. An 
affirmative vote of three-fifths of the Members of the Senate, 
duly chosen and sworn, shall be required to sustain an appeal 
of the ruling of the Chair on a point of order raised under 
this section.
    (e) General Point of Order.--It shall be in order for a 
Senator to raise a single point of order that several 
provisions of a bill, resolution, amendment, motion, or 
conference report violate this section. The Presiding Officer 
may sustain the point of order as to some or all of the 
provisions against which the Senator raised the point of order. 
If the Presiding Officer so sustains the point of order as to 
some of the provisions (including provisions of an amendment, 
motion, or conference report) against which the Senator raised 
the point of order, then only those provisions (including 
provision of an amendment, motion, or conference report) 
against which the Presiding Officer sustains the point of order 
shall be deemed stricken pursuant to this section. Before the 
Presiding Officer rules on such a point of order, any Senator 
may move to waive such a point of order as it applies to some 
or all of the provisions against which the point of order was 
raised. Such a motion to waive is amendable in accordance with 
rules and precedents of the Senate. After the Presiding Officer 
rules on such a point of order, any Senator may appeal the 
ruling of the Presiding Officer on such a point of order as it 
applies to some or all of the provisions on which the Presiding 
Officer ruled.
    (f) Form of the Point of Order.--When the Senate is 
considering a conference report on, or an amendment between the 
Houses in relation to, a bill, upon a point of order being made 
by any Senator pursuant to this section, and such point of 
order being sustained, such material contained in such 
conference report or amendment shall be deemed stricken, and 
the Senate shall proceed to consider the question of whether 
the Senate shall recede from its amendment and concur with a 
further amendment, or concur in the House amendment with a 
further amendment, as the case may be, which further amendment 
shall consist of only that portion of the conference report or 
House amendment, as the case may be, not so stricken. Any such 
motion shall be debatable. In any case in which such point of 
order is sustained against a conference report (or Senate 
amendment derived from such conference report by operation of 
this subsection), no further amendment shall be in order.
    (g) Effectiveness.--This section shall not apply to any 
provision constituting a change in a mandatory program in 
appropriations legislation if such provision has been enacted 
in each of the 3 fiscal years prior to the budget year.
    (h) Inapplicability.--In the Senate, section 209 of S. Con. 
Res. 21 (110th Congress) shall no longer apply.

SEC. 315. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING SHORT-
                    TERM DEFICIT.

    (a) Point of Order.--It shall not be in order in the Senate 
to consider any bill, joint resolution, amendment, motion, or 
conference report (except measures within the jurisdiction of 
the Committee on Appropriations) that would cause a net 
increase in the deficit in excess of $10,000,000,000 in any 
fiscal year provided for in the most recently adopted 
concurrent resolution on the budget unless it is fully offset 
over the period of all fiscal years provided for in the most 
recently adopted concurrent resolution on the budget.
    (b) Supermajority Waiver and Appeal in the Senate.----
            (1) Waiver.--This section may be waived or 
        suspended only by the affirmative vote of three-fifths 
        of the Members, duly chosen and sworn.
            (2) Appeal.--An affirmative vote of three-fifths of 
        the Members, duly chosen and sworn, shall be required 
        to sustain an appeal of the ruling of the Chair on a 
        point of order raised under this section.
    (c) Determinations of Budget Levels.--For purposes of this 
section, the levels shall be determined on the basis of 
estimates provided by the Senate Committee on the Budget.
    (d) Sunset.--This section shall expire on September 30, 
2017.

SEC. 321. OVERSIGHT OF GOVERNMENT PERFORMANCE.

    All committees are directed to review programs within their 
jurisdiction to root out waste, fraud, and abuse in program 
spending, giving particular scrutiny to issues raised by 
Government Accountability Office reports. Based on these 
oversight efforts and committee performance reviews of programs 
within their jurisdiction, committees are directed to include 
recommendations for improved governmental performance in their 
annual views and estimates reports required under section 
301(d) of the Congressional Budget Act of 1974 to the 
appropriate Committee on the Budget.

SEC. 322. BUDGETARY TREATMENT OF CERTAIN DISCRETIONARY ADMINISTRATIVE 
                    EXPENSES.

    (a) In General--In the House and Senate, notwithstanding 
section 302(a)(1) of the Congressional Budget Act of 1974, 
section 13301 of the Budget Enforcement Act of 1990, and 
section 2009a of title 39, United States Code, the joint 
explanatory statement accompanying the conference report on any 
concurrent resolution on the budget shall include in its 
allocations under section 302(a) of the Congressional Budget 
Act of 1974 to the Committees on Appropriations amounts for the 
discretionary administrative expenses of the Social Security 
Administration and of the Postal Service.
    (b) Special Rule--In the House, for purposes of applying 
section 302(f) of the Congressional Budget Act of 1974, 
estimates of the level of total new budget authority and total 
outlays provided by a measure shall include any off-budget 
discretionary amounts.

SEC. 323. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND 
                    AGGREGATES.

    (a) Application--Any adjustments of allocations and 
aggregates made pursuant to this resolution shall----
            (1) apply while that measure is under 
        consideration;
            (2) take effect upon the enactment of that measure; 
        and
            (3) be published in the Congressional Record as 
        soon as practicable.
    (b) Effect of Changed Allocations and Aggregates- Revised 
allocations and aggregates resulting from these adjustments 
shall be considered for the purposes of the Congressional 
Budget Act of 1974 as allocations and aggregates contained in 
this resolution.
    (c) Budget Committee Determinations--For purposes of this 
resolution, the levels of new budget authority, outlays, direct 
spending, new entitlement authority, revenues, deficits, and 
surpluses for a fiscal year or period of fiscal years shall be 
determined on the basis of estimates made by the appropriate 
Committee on the Budget.
    (d) Adjustments--The Chairmen of the Budget Committees in 
the House and the Senate may adjust the aggregates, 
allocations, and other levels in this resolution for 
legislation which has received final Congressional approval in 
the same form by the House of Representatives and the Senate, 
and is either waiting to be presented to the President or 
awaiting Presidential signature at the time of final 
consideration of this resolution.

SEC. 324. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND DEFINITIONS.

    Upon the enactment of any bill or joint resolution 
providing for a change in concepts or definitions, the Chairman 
of the appropriate Committee on the Budget may make adjustments 
to the levels and allocations in this resolution in accordance 
with section 251(b) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (as in effect prior to September 
30, 2002).

SEC. 325. EXERCISE OF RULEMAKING POWERS.

    Congress adopts the provisions of this title----
            (1) as an exercise of the rulemaking power of the 
        House of Representatives and the Senate and as such 
        they shall be considered as part of the rules of each 
        House or of that House to which they specifically 
        apply, and these rules shall supersede other rules only 
        to the extent that they are inconsistent with other 
        such rules; and
            (2) with full recognition of the constitutional 
        right of either the House of Representatives or the 
        Senate to change those rules at any time, in the same 
        manner, and to the same extent as in the case of any 
        other rule of the House of Representatives or the 
        Senate.ATTORNEY: RFW/FD (September 9, 
        1999) deg.
      

======================================================================


                 JURISDICTIONS OF THE HOUSE AND SENATE 
                           BUDGET COMMITTEES

======================================================================

      
                 JURISDICTION OF HOUSE BUDGET COMMITTEE

                                RULE X.

                      Organization of Committees.

Committees and their legislative jurisdictions
    1. There shall be in the House the following standing 
committees, each of which shall have the jurisdiction and 
related functions assigned by this clause and clauses 2, 3, and 
4. All bills, resolutions, and other matters relating to 
subjects within the jurisdiction of the standing committees 
listed in this clause shall be referred to those committees, in 
accordance with clause 2 of rule XII, as follows:
            (a) * * *
          * * * * * * *
            (d) Committee on the Budget.
                    (1) Concurrent resolutions on the budget 
                (as defined in section 3(4) of the 
                Congressional Budget Act of 1974), other 
                matters required to be referred to the 
                committee under titles III and IV of that Act, 
                and other measures setting forth appropriate 
                levels of budget totals for the United States 
                Government.
                    (2) Budget process generally.
                    (3) Establishment, extension, and 
                enforcement of special controls over the 
                Federal budget, including the budgetary 
                treatment of off-budget Federal agencies and 
                measures providing exemption from reduction 
                under any order issued under part C of the 
                Balanced Budget and Emergency Deficit Control 
                Act of 1985.
          * * * * * * *
Special oversight functions
    3. (a) * * *
    (b) The Committee on the Budget shall study on a continuing 
basis the effect on budget outlays of relevant existing and 
proposed legislation and report the results of such studies to 
the House on a recurring basis.
          * * * * * * *
Additional functions of committees
    4. (a) * * *
    (b) The Committee on the Budget shall----
            (1) review on a continuing basis the conduct by the 
        Congressional Budget Office of its functions and 
        duties;
            (2) hold hearings and receive testimony from 
        Members, Senators, Delegates, the Resident 
        Commissioner, and such appropriate representatives of 
        Federal departments and agencies, the general public, 
        and national organizations as it considers desirable in 
        developing concurrent resolutions on the budget for 
        each fiscal year;
            (3) make all reports required of it by the 
        Congressional Budget Act of 1974;
            (4) study on a continuing basis those provisions of 
        law that exempt Federal agencies or any of their 
        activities or outlays from inclusion in the Budget of 
        the United States Government, and report to the House 
        from time to time its recommendations for terminating 
        or modifying such provisions;
            (5) study on a continuing basis proposals designed 
        to improve and facilitate the congressional budget 
        process, and report to the House from time to time the 
        results of such studies, together with its 
        recommendations; and
            (6) request and evaluate continuing studies of tax 
        expenditures, devise methods of coordinating tax 
        expenditures, policies, and programs with direct budget 
        outlays, and report the results of such studies to the 
        House on a recurring basis.
          * * * * * * *
                JURISDICTION OF SENATE BUDGET COMMITTEE

                                RULE XXV

                           STANDING COMMITTEES

    1. The following standing committees shall be appointed at 
the commencement of each Congress, and shall continue and have 
the power to act until their successors are appointed, with 
leave to report by bill or otherwise on matters within their 
respective jurisdictions:
    (a) * * *
          * * * * * * *
    (e)(1) Committee on the Budget, to which committee shall be 
referred all concurrent resolutions on the budget (as defined 
in section 3(a)(4) of the Congressional Budget Act of 1974) and 
all other matters required to be referred to that committee 
under titles III and IV of that Act, and messages, petitions, 
memorials, and other matters relating thereto.
    (2) Such committee shall have the duty----
            (A) to report the matters required to be reported 
        by it under titles III and IV of the Congressional 
        Budget Act of 1974;
            (B) to make continuing studies of the effect on 
        budget outlays of relevant existing and proposed 
        legislation and to report the results of such studies 
        to the Senate on a recurring basis;
            (C) to request and evaluate continuing studies of 
        tax expenditures, to devise methods of coordinating tax 
        expenditures, policies, and programs with direct budget 
        outlays, and to report the results of such studies to 
        the Senate on a recurring basis; and
            (D) to review, on a continuing basis, the conduct 
        by the Congressional Budget Office of its functions and 
        duties.
          * * * * * * *
                              ----------                              


            UNANIMOUS CONSENT AGREEMENT OF JANUARY 30, 1975

    (as modified on April 11, 1986) with respect to Rescissions and 
  Deferrals (which had the effect of adopting the language of Senate 
               Resolution 45 which is set forth below)):
    Resolved,
    1. That messages received pursuant to title X of the 
Congressional Budget and Impoundment Control Act be referred 
concurrently to the Appropriations Committee, to the Budget 
Committee, and to any other appropriate authorizing committee.
    2. That bills, resolutions and joint resolutions introduced 
with respect to rescissions and deferrals shall be refered to 
the Appropriations Committee, and Budget Committee, and pending 
implementations of section 401 of the Congressional Budget and 
Impoundment Control Act and subject to section 401(d), to any 
other committee exercising jurisdiction over contract and 
borrowing authority programs as defined by section 401(c)(2)(A) 
and (B). The Budget Committee and such other committees shall 
report their views, if any, to the Appropriations Committee 
within 20 days following referral of such messages, bills, 
resolutions, or joint resolutions. The Budget Committee's 
consideration shall extend only to macroeconomic implications, 
impact on priorities and aggregate spending levels, and the 
legality of the President's use of the deferral and rescission 
mechanism under title X. The Appropriations and authorizing 
committees shall exercise their normal responsibilities over 
programs and priorities.
    3. If any Committee to which a bill or resolution has been 
referred recommends its passage, the Appropriations Committee 
shall report the bill or resolution together with its views and 
reports of the Budget and any appropriate authorizing 
committees to the Senate within:
            (A) the time remaining under the act in the case of 
        rescissions, or
            (B) within 20 days in the case of deferrals.
    4. The 20 day period referred to herein means 20 calendar 
days; and for the purposes of computing the 20 days, recesses 
or adjournments of the Senate for more than 3 days, to a day 
certain shall not be counted; and for recesses and adjournments 
of more than 30 calendar days, continuous duration or the sine 
die adjournment of a session, the 20 day period shall begin 
anew on the day following the reconvening of the Senate.

    (Agreed to January 30, 1975 (94th Cong., 1st Sess.), found at page 
S1917 of the Congressional Record and as modified on April 11, 1986 
(99th Cong., 2d Sess.), found on pages S7918-19 of the Congressional 
Record.
                               __________

                    S. RES. 445 (108th CONGRESS) \1\

    Sec. 101. (a) * * *
---------------------------------------------------------------------------
    \1\ Sections 101(d) and (e) of S. Res. 445 (108th Congress) 
superseded the Unanimous Consent Agreement of August 4, 1977, regarding 
legislation affecting the budget process.
---------------------------------------------------------------------------
    (d) JURISDICTION OF BUDGET COMMITTEE--Notwithstanding 
paragraph (b)(3) of this section, and except as otherwise 
provided in the Congressional Budget Act of 1974, the Committee 
on the Budget shall have exclusive jurisdiction over measures 
affecting the congressional budget process, which are----
    (1) the functions, duties, and powers of the Budget 
Committee;
    (2) the functions, duties, and powers of the Congressional 
Budget Office;
    (3) the process by which Congress annually establishes the 
appropriate levels of budget authority, outlays, revenues, 
deficits or surpluses, and public debt--including subdivisions 
thereof--and including the establishment of mandatory ceilings 
on spending and appropriations, a floor on revenues, timetables 
for congressional action on concurrent resolutions, on the 
reporting of authorization bills, and on the enactment of 
appropriation bills, and enforcement mechanisms for budgetary 
limits and timetables;
    (4) the limiting of backdoor spending devices;
    (5) the timetables for Presidential submission of 
appropriations and authorization requests;
    (6) the definitions of what constitutes impoundment--such 
as `rescissions' and `deferrals';
    (7) the process and determination by which impoundments 
must be reported to and considered by Congress;
    (8) the mechanisms to insure Executive compliance with the 
provisions of the Impoundment Control Act, title X--such as GAO 
review and lawsuits; and
    (9) the provisions which affect the content or 
determination of amounts included in or excluded from the 
congressional budget or the calculation of such amounts, 
including the definition of terms provided by the Budget Act.
    (e) OMB NOMINEES--The Committee on the Budget and the 
Committee on Homeland Security and Governmental Affairs shall 
have joint jurisdiction over the nominations of persons 
nominated by the President to fill the positions of Director 
and Deputy Director for Budget within the Office of Management 
and Budget, and if one committee votes to order reported such a 
nomination, the other must report within 30 calendar days 
session, or be automatically discharged.
      

======================================================================


                                APPENDIX

======================================================================

      
         SELECTED PROVISIONS OF THE UNITED STATES CONSTITUTION

Article I, Section 7, First Clause

    All Bills for raising Revenue shall originate in the House 
of Representatives; but the Senate may propose or concur with 
Amendments as on other Bills.

Article I, Section 8, First and Second Clauses

    The Congress shall have Power To lay and collect Taxes, 
Duties, Imposts and Excises, to pay the Debts and provide for 
the common Defence and general Welfare of the United States; 
but all Duties, Imposts and Excises shall be uniform throughout 
the United States;
    To borrow Money on the credit of the United States;

Article I, Section 9, Seventh Clause

    No Money shall be drawn from the Treasury, but in 
Consequence of Appropriations made by Law; and a regular 
Statement and Account of the Receipts and Expenditures of all 
public Money shall be published from time to time.
                              ----------                              

  SCOREKEEPING GUIDELINES OF THE CONGRESSIONAL BUDGET OFFICE AND THE 
                  OFFICE OF MANAGEMENT AND BUDGET \1\

    These budget scorekeeping guidelines are to be used by the 
House and Senate Budget Committees, the Congressional Budget 
Office, and the Office of Management and Budget (the 
``scorekeepers'') in measuring compliance with the 
Congressional Budget Act of 1974 (CBA), as amended, and GRH \2\ 
as amended. The purpose of the guidelines is to ensure that the 
scorekeepers measure the effects of legislation on the deficit 
consistent with established scorekeeping conventions and with 
the specific requirements in those Acts regarding discretionary 
spending, direct spending, and receipts. These rules shall be 
reviewed annually by the scorekeepers and revised as necessary 
to adhere to the purpose. These rules shall not be changed 
unless all of the scorekeepers agree. New accounts or 
activities shall be classified only after consultation among 
the scorekeepers. Accounts and activities shall not be 
reclassified unless all of the scorekeepers agree.
---------------------------------------------------------------------------
    \1\ From the Joint Explanatory Statement of the Committee of 
Conference on H.R. 2015 (105th Congress) and Appendix A of Circular No. 
A-11.
    \2\ GRH refers to the Balanced Budget and Emergency Deficit Control 
Act of 1985, also known as the Gramm-Rudman-Hollings Act, which is 
included in the Appendix. Although GRH expired, certain sections of the 
law remain relevant for scorekeeping purposes.
---------------------------------------------------------------------------
                  1. classification of appropriations
    Following the guidelines (pages 1014--1053 of conference 
report) is a list of appropriations that are normally enacted 
in appropriations acts. The list identifies appropriated 
entitlements and other mandatory spending in appropriations 
acts, and it identifies discretionary appropriations by 
category.
                            2. outlays prior
    Outlays from prior-year appropriations will be classified 
consistent with the discretionary/mandatory classification of 
the account from which the outlays occur.
                      3. direct spending programs
    Entitlements and other mandatory programs (including 
offsetting receipts) will be scored at current law levels as 
defined in section 257 of GRH, unless Congressional action 
modifies the authorization legislation. Substantive changes to 
or restrictions on entitlement law or other mandatory spending 
law in appropriations laws will be scored against the 
Appropriations Committee section 302(b) allocations in the 
House and the Senate. For the purpose of CBA scoring, direct 
spending savings that are included in both an appropriation 
bill and a reconciliation bill will be scored to the 
reconciliation bill and not to the appropriation bill. For 
scoring under sections 251 or 252 of GRH, such provisions will 
be scored to the first bill enacted.
     4. transfer of budget authority from a mandatory account to a 
                         discretionary account
    The transfer of budget authority to a discretionary account 
will be scored as an increase in discretionary budget authority 
and outlays in the gaining account. The losing account will not 
show an offsetting reduction if the account is an entitlement 
or mandatory.
                    5. permissive transfer authority
    Permissive transfers will be assumed to occur (in full or 
in part) unless sufficient evidence exists to the contrary. 
Outlays from such transfers will be estimated based on the best 
information available, primarily historical experience and, 
where applicable, indications of executive or congressional 
intent.
    This guideline will apply both to specific transfers 
(transfers where the gaining and losing accounts and the 
amounts subject to transfer can be ascertained) and general 
transfer authority.
                          6. reappropriations
    Reappropriations of expiring balances of budget authority 
will be scored as new budget authority in the fiscal year in 
which the balances become newly available.
                       7. advance appropriations
    Advance appropriations of budget authority will be scored 
as new budget authority in the fiscal year in which the funds 
become newly available for obligation, not when the 
appropriations are enacted.
          8. rescissions and transfers of unobligated balances
    Rescissions of unobligated balances will be scored as 
reductions in current budget authority and outlays in the year 
the money is rescinded.
    Transfers of unobligated balances will be scored as 
reductions in current budget authority and outlays in the 
account from which the funds are being transferred, and as 
increases in budget authority and outlays in the account to 
which these funds are being transferred.
    In certain instances, these transactions will result in a 
net negative budget authority amounts in the source accounts. 
For purposes of section 257 of GRH, such amounts of budget 
authority will be projected at zero. Outlay estimates for both 
the transferring and receiving accounts will be based on the 
spending patterns appropriate to the respective accounts.
                        9. delay of obligations
    Appropriation acts specify a date when funds will become 
available for obligation. It is this date that determines the 
year for which new budget authority is scored. In the absence 
of such a date, the act is assumed to be effective upon 
enactment.
    If a new appropriation provides that a portion of the 
budget authority shall not be available for obligation until a 
future fiscal year, that portion shall be treated as an advance 
appropriation of budget authority. If a law defers existing 
budget authority (or unobligated balances) from a year in which 
is was available for obligation to a year in which it was not 
available for obligation, that law shall be scored as a 
rescission in the current year and a reappropriation in the 
year in which obligational authority is extended.
                       10. contingent legislation
    If the authority to obligate is contingent on the enactment 
of a subsequent appropriation, new budget authority and outlays 
will be scored with the subsequent appropriation. If a 
discretionary appropriation is contingent on enactment of a 
subsequent authorization, new budget authority and outlays will 
be scored with the appropriation. If a discretionary 
appropriation is contingent on the fulfillment of some action 
by the Executive Branch or some other event normally estimated, 
new budget authority will be scored with the appropriation and 
outlays will be estimated based on the best information about 
when (or if) the contingency will be met. Non-law making 
contingencies within the control of the Congress are not 
scoreable events.
 11. scoring purchases, lease-purchases, capital leases, and operating 
                                 leases
    When a law provides the authority for an agency to enter 
into a contract for the purchase, lease-purchase, or lease of 
an asset, budget authority and outlays will be scored as 
follows:
    For lease-purchases and capital leases, budget authority 
will be scored against the legislation in the year in which the 
budget authority is first made available in the amount of the 
estimated net present value of the government's total estimated 
legal obligations over the life of the contract, except for 
imputed interest costs calculated at Treasury rates for 
marketable debt instruments of similar maturity to the lease 
period and identifiable annual operating expenses that would be 
paid by the government as owner (such as utilities, 
maintenance, and insurance). Property taxes will not be 
considered to be an operating cost. Imputed interest costs will 
be classified as mandatory and will not be scored against the 
legislation or for current level but will count for other 
purposes.
    For operating leases, budget authority will be scored 
against the legislation in the year in which the budget 
authority is first made available in the amount necessary to 
cover the government's legal obligations. The amount scored 
will include the estimated total payments expected to arise 
under the full term of a lease contract or, if the contract 
will include a cancellation clause, an amount sufficient to 
cover the lease payments for the first fiscal year during which 
the contract is in effect, plus an amount sufficient to cover 
the costs associated with cancellation of the contract. For 
funds that are self-insuring under existing authority, only 
budget authority to cover the annual lease payment is required 
to be scored.
    Outlays for lease-purchase in which the Federal government 
assumes substantial risk--for example, through an explicit 
government guarantee of third party financing--will be spread 
across the period during which the contractor constructs, 
manufactures, or purchases the asset. Outlays for an operating 
lease, a capital lease, or a lease-purchase in which the 
private sector retains substantial risk, will be spread across 
the lease period. In all cases, the total amount of outlays 
scored over time against legislation will equal the amount of 
budget authority scored against that legislation.
    No special rules apply to scoring purchases of assets 
(whether the asset is exiting or is to be manufactured or 
constructed). Budget authority is scored in the year in which 
the authority to purchase is first made available in the amount 
of the government's estimated legal obligations. Outlays scored 
will equal the estimated disbursements by the government based 
on the particular purchase arrangement, and over time will 
equal the amount of budget authority scored against that 
legislation.
    Existing contracts will not be rescored.
    To distinguish lease purchases and capital leases from 
operating leases, the following criteria will be used for 
defining an operating lease:
    Ownership of the asset remains with the lessor during the 
term of the lease and is not transferred to the government at 
or shortly after the end of the lease period.
    The lease does not contain a bargain-price purchase option.
    The lease term does not exceed 75 percent of the estimated 
economic lifetime of the asset.
    The present value of the minimum lease payments over the 
life of the lease does not exceed 90 percent of the fair market 
value of the asset at the inception of the lease.
    The asset is a general purpose asset rather than being for 
a special purpose of the government and is not built to unique 
specification for the government as lessee.
    There is a private-sector market for the asset.
    Risks of ownership of the asset should remain with the 
lessor.
    Risk is defined in terms of how governmental in nature the 
project is. If a project is less governmental in nature, the 
private-sector risk is considered to be higher. To evaluate the 
level of private-sector risk associated with a lease-purchase, 
legislation and lease-purchase contracts will be considered 
against the following type of illustrative criteria, which 
indicate ways in which the project is less governmental:
    There should be no provision of government financing and no 
explicit government guarantee of third party financing.
    Risks of ownership of the asset should remain with the 
lessor unless the Government was at fault for such losses.
    The asset should be a general purpose asset rather than for 
a special purpose of the Government and should not be built to 
unique specification for the Government as lessee.
    There should be a private-sector market for the asset.
    The project should not be constructed on Government land.
    Language that attempts to waive the Anti-Deficiency Act, or 
to limit the amount or timing of obligations recorded, does not 
change the government's obligations or obligational authority, 
and so will not affect the scoring of budget authority or 
outlays.
    Unless language that authorizes a project clearly states 
that no obligations are allowed unless budget authority is 
provided specifically for that project in an appropriations 
bill in advance of the obligation, the legislation will be 
interpreted as providing obligation authority, in an amount to 
be estimated by the scorekeepers.
12. write-offs of uncashed checks, unredeemed food stamps, and similar 
                              instruments
    Exceptional write-offs of uncashed checks, unredeemed food 
stamps, and similar instruments (i.e., cumulative balances that 
have built up over several years or have been on the books for 
several years) shall be scored as an adjustment to the means of 
financing the deficit rather than as an offset. An estimate of 
write-offs or similar adjustments that are part of a continuing 
routing process shall be netted against outlays in the year in 
which the write-off will occur. Such write-offs shall be 
recorded in the account in which the outlay was originally 
recorded.
                13. reclassification after an agreement
    Except to the extent assumed in a budget agreement, a law 
that has the effect of altering the classification of spending 
and revenues (e.g., from discretionary to mandatory, special 
fund to revolving fund, on-budget to off-budget, revenue to 
offsetting receipt), will not be scored as reclassified for the 
purpose of enforcing a budget agreement.
  14. scoring of receipt increases or direct spending reductions for 
        additional administration or program management expenses
    No increase in receipts or decrease in direct spending will 
be scored as a result of provisions of a law that provides 
direct spending for administration or program management 
activities.
                            15. asset sales
    If the net financial cost to the government of an asset 
sale is zero or negative (a savings), the amount scored shall 
be the estimated change in receipts and mandatory outlays in 
each fiscal year on a cost basis. If the cost of the government 
is positive (a loss), the proceeds from the sale shall not be 
scored for the purposes of the CBA or GRH.
    The net financial cost to the Federal government of an 
asset sale shall be the net present value of the cash flows 
from:
            (1) estimated proceeds from the asset sale;
            (2) the net effect on Federal revenues, if any, 
        based on special tax treatments specified in the 
        legislation;
            (3) the loss of future offsetting receipts that 
        would otherwise be collected under continued government 
        ownership (using baseline levels for the projection 
        period and estimated levels thereafter); and
            (4) changes in future spending, both discretionary 
        and mandatory, from levels that would otherwise occur 
        under continued government ownership (using baseline 
        levels for the projection period and at levels 
        estimated to be necessary to operate and maintain the 
        asset thereafter).
    The discount rate used to estimate the net present value 
shall be the average interest rate on marketable Treasury 
securities of similar maturity to the expected remaining useful 
life of the asset for which the estimate is being made, plus 2 
percentage points to reflect the economic effects of continued 
ownership by the Government.
   16. indefinite borrowing authority and limits on outstanding debt
    If legislation imposes or changes a limit on outstanding 
debt for an account financed by indefinite budget authority in 
the form of borrowing authority, the legislation will be scored 
as changing budget authority only if and to the extent the 
imposition of a limit or the change in the existing limit 
alters the estimated amount of obligations that will be 
incurred.
                              ----------                              

                     ADVANCE APPROPRIATIONS SUMMARY

    An appropriation bill provides budget authority (BA) that 
allows the federal government to incur obligations that will 
result in money being spent (outlays). Typically, an 
appropriations bill provides funding that becomes available 
sometime during the fiscal year covered by the bill (for most 
accounts, on October 1). For example, an appropriations bill 
for fiscal year 2009 would include BA that becomes available to 
be spent on October 1, 2008, which is the first day of fiscal 
year 2009.
    Advance appropriations are BA provided in a bill making 
appropriations for one year that first becomes available for a 
subsequent fiscal year, usually the year immediately after the 
one covered by the bill. Congress uses advance appropriations 
for programs that do not need the funding immediately, often 
for programs that follow an academic year and therefore use the 
bulk of their funding for the year following the fiscal year in 
which it is provided. For example, an education program's 
advance appropriations for fiscal year 2010 contained in a 
fiscal year 2009 appropriations bill become available on 
October 1, 2009, and are thus scored in fiscal year 2010 and 
not included in the bill's fiscal year 2009 score.
    Recent congressional budget resolutions have limited 
advance appropriations to a specific total, and allowed their 
use only for programs listed in the Statement of Managers 
accompanying the budget conference agreement. The fiscal year 
2009 budget resolution limits advance appropriations to no more 
than $28.852 billion.
    

======================================================================


       BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985

          Public Law 99-177, December 12, 1985, 99 Stat. 1037

======================================================================


Major Amendments:

Balanced Budget and Emergency Deficit Reaffirmation Act of 
        1987; Public Law 100-119, Title I, September 28, 1987; 
        101 Stat. 754.

Budget Enforcement Act of 1990; Public Law 101-508, Title XIV, 
        Subtitle A, Part I; November 5, 1990; 104 Stat. 1388-
        573, 1388-574.

Omnibus Budget Reconciliation Act of 1993; Public Law 103-66, 
        Title XIV; August 10, 1993; 107 Stat. 312, 683.

Violent Crime Control and Law Enforcement Act of 1994; Public 
        Law 103-322, Title XXXI; September 13, 1994; 108 Stat. 
        1796, 2102.

The Balanced Budget Act of 1997; Public Law 105-33, August 5, 
        1997; 111 Stat. 251.

Transportation Equity Act for the 21st Century; June 9, 1998; 
        112 Stat. 488.

TEA 21 Restortation Act; Public Law 105-206; July 22, 1998. 115 
        Stat. 865.
       [As Amended Through P.L. 109-59, Enacted August 10, 2005]

                                 NOTE:

Expiration of Balanced Budget and Emergency Deficit Conrtol Act of 1985

    As of September 30, 2006, all provisions of the Balanced 
Budget and Emergency Deficit Conrtol Act of 1985 expired. See 
section 275(b) of that Act.

  PART C--EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM 
                             DEFICIT AMOUNT

 H4  deg.SEC. 250. [2 U.S.C. 900] TABLE OF CONTENTS; STATEMENT 
                    OF BUDGET ENFORCEMENT THROUGH SEQUESTRATION; 
                    DEFINITIONS.

    (a) Table of Contents.--

Sec. 250. Table of contents; budget enforcement statement; definitions.
Sec. 251.  Enforcing discretionary spending limits.
Sec. 252.  Enforcing pay-as-you-go.
Sec. 253.  Enforcing deficit targets.
Sec. 254.  Reports and orders.
Sec. 255.  Exempt programs and activities.
Sec. 256.  General and special sequestration rules.\1\
Sec. 257.  The baseline.
Sec. 258.  Suspension in the event of war or low growth.
Sec. 258A. Modification of presidential order.
Sec. 258B. Alternative defense sequestration.
Sec. 258C. Special reconciliation process.

    (b) General Statement of Budget Enforcement Through 
Sequestration.--This part provides for budget enforcement as 
called for in House Concurrent Resolution 84 (105th Congress, 
1st session).
---------------------------------------------------------------------------
    \1\ Section 10208(a)(2) of Public Law 105-33 (111 Stat. 708) added 
this item to the table of contents, inadvertently adding it in all 
caps.
---------------------------------------------------------------------------
    (c) Definitions.----
    As used in this part:
            (1) The terms ``budget authority'', ``new budget 
        authority'', ``outlays'', and ``deficit'' have the 
        meanings given to such terms in section 3 of the 
        Congressional Budget and Impoundment Control Act of 
        1974 and ``discretionary spending limit'' shall mean 
        the amounts specified in section 251 of this Act.
            (2) The terms ``sequester'' and ``sequestration'' 
        refer to or mean the cancellation of budgetary 
        resources provided by discretionary appropriations or 
        direct spending law.
            (3) The term ``breach'' means, for any fiscal year, 
        the amount (if any) by which new budget authority or 
        outlays for that year (within a category of 
        discretionary appropriations) is above that category's 
        discretionary spending limit for new budget authority 
        or outlays for that year, as the case may be.
            (4)(A) \1\ The term ``category'' means the subsets 
        of discretionary appropriations in section 251(c). 
        Discretionary appropriations in each of the categories 
        shall be those designated in the joint explanatory 
        statement accompanying the conference report on the 
        Balanced Budget Act of 1997. New accounts or activities 
        shall be categorized only after consultation with the 
        committees on Appropriations and the Budget of the 
        House of Representatives and the Senate and that 
        consultation shall, to the extent practicable, include 
        written communication to such committees that affords 
        such committees the opportunity to comment before 
        official action is taken with respect to new accounts 
        or activities.
---------------------------------------------------------------------------
    \1\ See footnote to section 251(c).
---------------------------------------------------------------------------
            (B) The term ``highway category'' refers to the 
        following budget accounts or portions thereof that are 
        subject to the obligation limitations on contract 
        authority set forth in the Safe, Accountable, Flexible, 
        Efficient Transportation Equity Act: A Legacy for 
        Users:
                    (i) 69-8083-0-7-401 (Federal-Aid Highways).
                    (ii) 69-8020-0-7-401 (Highway Traffic 
                Safety Grants).
                    (iii) 69-8048-0-7-401 (National Motor 
                Carrier Safety Program).
                    (iv) 69-8016-0-7-401 (Operations and 
                Research NHTSA).
                            (v) 69-8362-0-7-401 (National 
                        Driver Registry).
                            (vi) 69-8159-0-7-401 (Motor Carrier 
                        Safety Operations and Programs).
                            (vii) 06-8158-0-7-401 (Motor 
                        Carrier Safety Grants).
                    (C) Mass transit category.--The term ``mass 
                transit category'' means the following budget 
                accounts, or portions of the accounts, that are 
                subject to the obligation limitations on 
                contract authority provided in the Safe, 
                Accountable, Flexible, Efficient Transportation 
                Equity Act: A Legacy for Users or for which 
                appropriations are provided in accordance with 
                authorizations contained in that Act:
                            (i) 69-1120-0-1-401 (Administrative 
                        Expenses).
                            (ii) 69-1134-0-1-401 (Capital 
                        Investment Grants).
                            (iii) 69-8191-0-7-401 
                        (Discretionary Grants).
                            (iv) 69-1129-0-1-401 (Formula 
                        Grants).
                            (v) 69-1127-0-1-401 (Interstate 
                        Transfer Grants--Transit).
                            (vi) 69-1125-0-1-401 (Job Access 
                        and Reverse Commute).
                            (vii) 69-1122-0-1-401 
                        (Miscellaneous Expired Accounts).
                            (viii) 69-1121-0-1-401 (Research, 
                        Training and Human Resources).
                            (ix) 69-8350-0-7-401 (Trust Fund 
                        Share of Expenses).
                            (x) 69-1137-0-1-401 (Transit 
                        Planning and Research).
                            (xi) 69-1136-0-1-401 (University 
                        Transportation Research).
                            (xii) 69-1128-0-1-401 (Washington 
                        Metropolitan Area Transit Authority).
        Such term also refers to the Washington Metropolitan 
        Transit Authority account (69-1128-0-1-401) only for 
        fiscal year 1999 only for appropriations provided 
        pursuant to authorizations contained in section 14 of 
        Public Law 96-184 and Public Law 101-551.
            (D) Special rule.--(i) Any outlays in excess of the 
        discretionary spending limit set forth in section 
        251(c) for the highway or mass transit category, as 
        adjusted, for the budget year shall be considered 
        nondefense category outlays or discretionary category 
        outlays.
            (ii) If the obligation limitations for accounts in 
        the highway or mass transit category provided in an 
        appropriation Act for a fiscal year exceed the 
        obligation limitations set forth in section 8103 of the 
        Transportation Equity Act for the 21st Century for that 
        year, as adjusted, the estimated outlays flowing for 
        each outyear from such excess obligations calculated 
        pursuant to clause (iii) shall be attributed to the 
        discretionary category in that outyear.
            (iii) For purposes of clause (ii), outlays from 
        excess obligations shall be determined using the 
        average of the spendout rates for that category in the 
        baseline.
                    (E) \1\ The term ``conservation spending 
                category'' means discretionary appropriations 
                for conservation activities in the following 
                budget accounts or portions thereof providing 
                appropriations to preserve and protect lands, 
                habitat, wildlife, and other natural resources, 
                to provide recreational opportunities, and for 
                related purposes:
---------------------------------------------------------------------------
    \1\ So in law. Section 801 of P.L. 106-291 (114 Stat. 1026) amended 
this section by adding new subparagraphs (E) through (K). The margins 
of the new subparagraphs do not conform to existing subparagraphs.
---------------------------------------------------------------------------
                            (i) 14-5033 Bureau of Land 
                        Management Land Acquisition.
                            (ii) 14-5020 Fish and Wildlife 
                        Service Land Acquisition.
                            (iii) 14-5035 National Park Service 
                        Land Acquisition and State Assistance.
                            (iv) 12-9923 Forest Service Land 
                        Acquisition.
                            (v) 14-5143 Fish and Wildlife 
                        Service Cooperative Endangered Species 
                        Conservation Fund.
                            (vi) 14-5241 Fish and Wildlife 
                        Service North American Wetlands 
                        Conservation Fund.
                            (vii) 14-1694 Fish and Wildlife 
                        Service State Wildlife Grants.
                            (viii) 14-0804 United States 
                        Geological Survey Surveys, 
                        Investigations, and Research, the State 
                        Planning Partnership programs: 
                        Community/Federal Information 
                        Partnership, Urban Dynamics, and 
                        Decision Support for Resource 
                        Management.
                            (ix) 12-1105 Forest Service State 
                        and Private Forestry, the Forest Legacy 
                        Program, Urban and Community Forestry, 
                        and Smart Growth Partnerships.
                            (x) 14-1031 National Park Service 
                        Urban Park and Recreation Recovery 
                        program.
                            (xi) 14-5140 National Park Service 
                        Historic Preservation Fund.
                            (xii) Youth Conservation Corps.
                            (xiii) 14-1114 Bureau of Land 
                        Management Payments in Lieu of Taxes.
                            (xiv) Federal Infrastructure 
                        Improvement (as established in title 
                        VIII of the Department of the Interior 
                        and Related Agencies Appropriations 
                        Act, 2001).
                            (xv) 13-1460 NOAA Procurement 
                        Acquisition and Construction, the 
                        National Marine Sanctuaries and the 
                        National Estuarine Research Reserve 
                        Systems.
                            (xvi) 13-1450 NOAA Operations, 
                        Research, and Facilities, the Coastal 
                        Zone Management Act programs, the 
                        National Marine Sanctuaries, the 
                        National Estuarine Research Reserve 
                        Systems, and Coral Restoration 
                        programs.
                            (xvii) 13-1451 NOAA Pacific Coastal 
                        Salmon Recovery.
                    (F) \1\ The term ``Federal and State Land 
                and Water Conservation Fund sub-category'' 
                means discretionary appropriations for 
                activities in the accounts described in (E)(i)-
                (E)(iv) or portions thereof.
                    (G) \1\ The term ``State and Other 
                Conservation sub-category'' means discretionary 
                appropriations for activities in the accounts 
                described in (E)(v)-(E)(ix), with the exception 
                of Urban and Community Forestry as described in 
                (E)(ix), or portions thereof.
                    (H) \1\ The term ``Urban and Historic 
                Preservation sub-category'' means discretionary 
                appropriations for activities in the accounts 
                described in (E)(ix)-(E)(xii), with the 
                exception of Forest Legacy and Smart Growth 
                Partnerships as described in (E)(ix), or 
                portions thereof.
                    (I) \1\ The term ``Payments in Lieu of 
                Taxes sub-category'' means discretionary 
                appropriations for activities in the account 
                described in (E)(xiii) or portions thereof.
                    (J) \1\ The term ``Federal Deferred 
                Maintenance sub-category'' means discretionary 
                appropriations for activities in the account 
                described in (E)(xiv) or portions thereof.
                    (K) \1\ The term ``Coastal Assistance sub-
                category'' means discretionary appropriations 
                for activities in the accounts described in 
                (E)(xv)-(E)(xvii) or portions thereof.
            (5) The term ``baseline'' means the projection 
        (described in section 257) of current-year levels of 
        new budget authority, outlays, receipts, and the 
        surplus or deficit into the budget year and the 
        outyears.
            (6) The term ``budgetary resources'' means new 
        budget authority, unobligated balances, direct spending 
        authority, and obligation limitations.
            (7) The term ``discretionary appropriations'' means 
        budgetary resources (except to fund direct-spending 
        programs) provided in appropriation Acts.
            (8) The term ``direct spending'' means----
                    (A) budget authority provided by law other 
                than appropriation Acts;
                    (B) entitlement authority; and
                    (C) the food stamp program.
            (9) The term ``current'' means, with respect to OMB 
        estimates included with a budget submission under 
        section 1105(a) of title 31, United States Code, the 
        estimates consistent with the economic and technical 
        assumptions underlying that budget 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.
            (10) The term ``real economic growth'', with 
        respect to any fiscal year, means the growth in the 
        gross national product during such fiscal year, 
        adjusted for inflation, consistent with Department of 
        Commerce definitions.
            (11) The term ``account'' means an item for which 
        appropriations are made in any appropriation Act and, 
        for items not provided for in appropriation Acts, such 
        term means an item for which there is a designated 
        budget account identification code number in the 
        President's budget.
            (12) The term ``budget year'' means, with respect 
        to a session of Congress, the fiscal year of the 
        Government that starts on October 1 of the calendar 
        year in which that session begins.
            (13) The term ``current year'' means, with respect 
        to a budget year, the fiscal year that immediately 
        precedes that budget year.
            (14) The term ``outyear'' means, with respect to a 
        budget year, any of the first 4 fiscal years that 
        follow the budget year.
            (15) The term ``OMB'' means the Director of the 
        Office of Management and Budget.
            (16) The term ``CBO'' means the Director of the 
        Congressional Budget Office.
            (17) As used in this part, all references to 
        entitlement authority shall include the list of 
        mandatory appropriations included in the joint 
        explanatory statement of managers accompanying the 
        conference report on the Balanced Budget Act of 1997.
            (18) The term ``deposit insurance'' refers to the 
        expenses \1\ the Federal deposit insurance agencies, 
        and other Federal agencies supervising insured 
        depository institutions, resulting from full funding 
        of, and continuation of, the deposit insurance 
        guarantee commitment in effect under current estimates.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``expenses of''.
---------------------------------------------------------------------------
            (19) The term ``asset sale'' means the sale to the 
        public of any asset (except for those assets covered by 
        title V of the Congressional Budget Act of 1974), 
        whether physical or financial, owned in whole or in 
        part by the United States.

 H4  deg.SEC. 251. [2 U.S.C. 901] ENFORCING DISCRETIONARY 
                    SPENDING 
                    LIMITS.

    (a) Enforcement.----
            (1) Sequestration.--Within 15 calendar days after 
        Congress adjourns to end a session and on the same day 
        as a sequestration (if any) under section 252 and 
        section 253, there shall be a sequestration to 
        eliminate a budget-year breach, if any, within any 
        category.
            (2) Eliminating a breach.--Each non-exempt account 
        within a category shall be reduced by a dollar amount 
        calculated by multiplying the baseline level of 
        sequestrable budgetary resources in that account at 
        that time by the uniform percentage necessary to 
        eliminate a breach within that category; except that 
        the health programs set forth in section 256(e) shall 
        not be reduced by more than 2 percent and the uniform 
        percent applicable to all other programs under this 
        paragraph shall be increased (if necessary) to a level 
        sufficient to eliminate that breach. If, within a 
        category, the discretionary spending limits for both 
        new budget authority and outlays are breached, the 
        uniform percentage shall be calculated by----
                    (A) first, calculating the uniform 
                percentage necessary to eliminate the breach in 
                new budget authority, and
                    (B) second, if any breach in outlays 
                remains, increasing the uniform percentage to a 
                level sufficient to eliminate that breach.
            (3) Military personnel.--If the President uses the 
        authority to exempt any military personnel from 
        sequestration under section 255(f), each account within 
        subfunctional category 051 (other than those military 
        personnel accounts for which the authority provided 
        under section 255(f) has been exercised) shall be 
        further reduced by a dollar amount calculated by 
        multiplying the enacted level of non-exempt budgetary 
        resources in that account at that time by the uniform 
        percentage necessary to offset the total dollar amount 
        by which outlays are not reduced in military personnel 
        accounts by reason of the use of such authority.
            (4) Part-year appropriations.--If, on the date 
        specified in paragraph (1), there is in effect an Act 
        making or continuing appropriations for part of a 
        fiscal year for any budget account, then the dollar 
        sequestration calculated for that account under 
        paragraphs (2) and (3) shall be subtracted from----
                    (A) the annualized amount otherwise 
                available by law in that account under that or 
                a subsequent part-year appropriation; and
                    (B) when a full-year appropriation for that 
                account is enacted, from the amount otherwise 
                provided by the full-year appropriation.
            (5) Look-back.--If, after June 30, an appropriation 
        for the fiscal year in progress is enacted that causes 
        a breach within a category for that year (after taking 
        into account any sequestration of amounts within that 
        category), the discretionary spending limits for that 
        category for the next fiscal year shall be reduced by 
        the amount or amounts of that breach.
            (6) Within-session sequestration.--If an 
        appropriation for a fiscal year in progress is enacted 
        (after Congress adjourns to end the session for that 
        budget year and before July 1 of that fiscal year) that 
        causes a breach within a category for that year (after 
        taking into account any prior sequestration of amounts 
        within that category), 15 days later there shall be a 
        sequestration to eliminate that breach within that 
        category following the procedures set forth in 
        paragraphs (2) through (4).
            (7) Estimates.----
                    (A) CBO estimates.--As soon as practicable 
                after Congress completes action on any 
                discretionary appropriation, CBO, after 
                consultation with the Committees on the Budget 
                of the House of Representatives and the Senate, 
                shall provide OMB with an estimate of the 
                amount of discretionary new budget authority 
                and outlays for the current year (if any) and 
                the budget year provided by that legislation.
                    (B) OMB estimates and explanation of 
                differences.--Not later than 7 calendar days 
                (excluding Saturdays, Sundays, and legal 
                holidays) after the date of enactment of any 
                discretionary appropriation, OMB shall transmit 
                a report to the House of Representatives and to 
                the Senate containing the CBO estimate of that 
                legislation, an OMB estimate of the amount of 
                discretionary new budget authority and outlays 
                for the current year (if any) and the budget 
                year provided by that legislation, and an 
                explanation of any difference between the 2 
                estimates. If during the preparation of the 
                report OMB determines that there is a 
                significant difference between OMB and CBO, OMB 
                shall consult with the Committees on the Budget 
                of the House of Representatives and the Senate 
                regarding that difference and that consultation 
                shall include, to extent practicable, written 
                communication to those committees that affords 
                such committees the opportunity to comment 
                before the issuance of the report.
                    (C) Assumptions and guidelines.--OMB 
                estimates under this paragraph shall be made 
                using current economic and technical 
                assumptions. OMB shall use the OMB estimates 
                transmitted to the Congress under this 
                paragraph. OMB and CBO shall prepare estimates 
                under this paragraph in conformance with 
                scorekeeping guidelines determined after 
                consultation among the House and Senate 
                Committees on the Budget, CBO, and OMB.
                    (D) Annual appropriations.--For purposes of 
                this paragraph, amounts provided by annual 
                appropriations shall include any new budget 
                authority and outlays for the current year (if 
                any) and the budget year in accounts for which 
                funding is provided in that legislation that 
                result from previously enacted legislation.
    (b) Adjustments to Discretionary Spending Limits.----
            (1) Preview Report.----
                    (A) Concepts and definitions.--When the 
                President submits the budget under section 1105 
                of title 31, United States Code, OMB shall 
                calculate and the budget shall include 
                adjustments to discretionary spending limits 
                (and those limits as cumulatively adjusted) for 
                the budget year and each outyear to reflect 
                changes in concepts and definitions. Such 
                changes shall equal the baseline levels of new 
                budget authority and outlays using up-to-date 
                concepts and definitions minus those levels 
                using the concepts and definitions in effect 
                before such changes. Such changes may only be 
                made after consultation with the committees \1\ 
                on Appropriations and the Budget of the House 
                of Representatives and the Senate and that 
                consultation shall include written 
                communication to such committees that affords 
                such committees the opportunity to comment 
                before official action is taken with respect to 
                such changes.
---------------------------------------------------------------------------
    \1\ So in law. Probably should be ``Committees''.
---------------------------------------------------------------------------
                    (B) Adjustment to align highway spending 
                with revenues.--(i) When the President submits 
                the budget under section 1105 of title 31, 
                United States Code, OMB shall calculate and the 
                budget shall make adjustments to the highway 
                category for the budget year and each outyear 
                as provided in clause (ii)(I)(cc).
                    (ii)(I)(aa) OMB shall take the actual level 
                of highway receipts for the year before the 
                current year and subtract the sum of the 
                estimated level of highway receipts in 
                subclause (II) plus any amount previously 
                calculated under item (bb) for that year.
                    (bb) OMB shall take the current estimate of 
                highway receipts for the current year and 
                subtract the estimated level of receipts for 
                that year.
                    (cc) OMB shall add one-half of the sum of 
                the amount calculated under items (aa) and (bb) 
                to the obligation limitations set forth in the 
                section 8003 of the Safe, Accountable, 
                Flexible, Efficient Transportation Equity Act: 
                A Legacy for Users and, using current 
                estimates, calculate the outlay change 
                resulting from the change in obligations for 
                the budget year and the first outyear and the 
                outlays flowing therefrom through subsequent 
                fiscal years. After making the calculations 
                under the preceding sentence, OMB shall adjust 
                the amount of obligations set forth in that 
                section for the budget year and the first 
                outyear by adding one-half of the sum of the 
                amount calculated under items (aa) and (bb) to 
                each such year.
                    (II) The estimated level of highway 
                receipts for the purposes of this clause are--
                --
                            (aa) for fiscal year 2005, 
                        $31,562,000,000;
                            (bb) for fiscal year 2006, 
                        $33,712,000,000;
                            (cc) for fiscal year 2007, 
                        $34,623,000,000
                            (dd) for fiscal year 2008, 
                        $35,449,000,000; and
                            (ee) for fiscal year 2009, 
                        $36,220,000,000.
                    (III) In this clause, the term ``highway 
                receipts'' means the governmental receipts 
                credited to the highway account of the Highway 
                Trust Fund.
                    (C) In addition to the adjustment required 
                by subparagraph (B), when the President submits 
                the budget under section 1105 of title 31, 
                United States Code, for fiscal year 2007, 2008, 
                or 2009, OMB shall calculate and the budget 
                shall include for the budget year and each 
                outyear an adjustment to the limits on outlays 
                for the highway category and the mass transit 
                category equal to----
                            (i) the outlays for the applicable 
                        category calculated assuming obligation 
                        levels consistent with the estimates 
                        prepared pursuant to subparagraph (D), 
                        as adjusted, using current technical 
                        assumptions; minus
                            (ii) the outlays for the applicable 
                        category set forth in the subparagraph 
                        (D) estimates, as adjusted.
                    (D)(i) When OMB and CBO submit their final 
                sequester report for fiscal year 2006, that 
                report shall include an estimate of the outlays 
                for each of the categories that would result in 
                fiscal years 2007 through 2010 from obligations 
                at the levels specified in section 8003 of the 
                Safe, Accountable, Flexible, Efficient 
                Transportation Equity Act: A Legacy for Users 
                using current assumptions.
                    (ii) When the President submits the budget 
                under section 1105 of title 31, United States 
                Code, for fiscal year 2007, 2008, 2009, or 
                2010, OMB shall adjust the estimates made in 
                clause (i) by the adjustments by subparagraphs 
                (B) and (C).
                    (E) OMB shall consult with the Committees 
                on the Budget and include a report on 
                adjustments under subparagraphs (B) and (C) in 
                the preview report.
            (2) \1\ Sequestration reports.--When OMB submits a 
        sequestration report under section 254(e), (f), or (g) 
        for a fiscal year, OMB shall calculate, and the 
        sequestration report and subsequent budgets submitted 
        by the President under section 1105(a) of title 31, 
        United States Code, shall include adjustments to 
        discretionary spending limits (and those limits as 
        adjusted) for the fiscal year and each succeeding year, 
        as follows:
---------------------------------------------------------------------------
    \1\ See clause 2(e) of rule XXI of the Rules of the House of 
Representatives.
---------------------------------------------------------------------------
                    (A) Emergency appropriations.--If, for any 
                fiscal year, appropriations for discretionary 
                accounts are enacted that the President 
                designates as emergency requirements and that 
                the Congress so designates in statute, the 
                adjustment shall be the total of such 
                appropriations in discretionary accounts 
                designated as emergency requirements and the 
                outlays flowing in all fiscal years from such 
                appropriations. This subparagraph shall not 
                apply to appropriations to cover agricultural 
                crop disaster assistance.
                    (B) Special outlay allowance.--If, in any 
                fiscal year, outlays for a category exceed the 
                discretionary spending limit for that category 
                but new budget authority does not exceed its 
                limit for that category (after application of 
                the first step of a sequestration described in 
                subsection (a)(2), if necessary), the 
                adjustment in outlays for a fiscal year is the 
                amount of the excess but not to exceed 0.5 
                percent of the sum of the adjusted 
                discretionary spending limits on outlays for 
                that fiscal year.
                    (C) Continuing disability reviews.--(i) If 
                a bill or joint resolution making 
                appropriations for a fiscal year is enacted 
                that specifies an amount for continuing 
                disability reviews under the heading 
                ``Limitation on Administrative Expenses'' for 
                the Social Security Administration, the 
                adjustments for that fiscal year shall be the 
                additional new budget authority provided in 
                that Act for such reviews for that fiscal year 
                and the additional outlays flowing from such 
                amounts, but shall not exceed----
                            (I) for fiscal year 1998, 
                        $290,000,000 in additional new budget 
                        authority and $338,000,000 in 
                        additional outlays;
                            (II) for fiscal year 1999, 
                        $520,000,000 in additional new budget 
                        authority and $520,000,000 in 
                        additional outlays;
                            (III) for fiscal year 2000, 
                        $520,000,000 in additional new budget 
                        authority and $520,000,000 in 
                        additional outlays;
                            (IV) for fiscal year 2001, 
                        $520,000,000 in additional new budget 
                        authority and $520,000,000 in 
                        additional outlays; and
                            (V) for fiscal year 2002, 
                        $520,000,000 in additional new budget 
                        authority and $520,000,000 in 
                        additional outlays.
                    (ii) As used in this subparagraph----
                            (I) the term ``continuing 
                        disability reviews'' means reviews or 
                        redeterminations as defined under 
                        section 201(g)(1)(A) of the Social 
                        Security Act and reviews and 
                        redeterminations authorized under 
                        section 211 of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996;
                            (II) the term ``additional new 
                        budget authority'' means the amount 
                        provided for a fiscal year, in excess 
                        of $200,000,000, in an appropriations 
                        Act and specified to pay for the costs 
                        of continuing disability reviews under 
                        the heading ``Limitation on 
                        Administrative Expenses'' for the 
                        Social Security Administration; and
                            (III) the term ``additional 
                        outlays'' means outlays, in excess of 
                        $200,000,000 in a fiscal year, flowing 
                        from the amounts specified for 
                        continuing disability reviews under the 
                        heading ``Limitation on Administrative 
                        Expenses'' for the Social Security 
                        Administration, including outlays in 
                        that fiscal year flowing from amounts 
                        specified in Acts enacted for prior 
                        fiscal years (but not before 1996).
                    (D) Allowance for imf.--If an appropriation 
                bill or joint resolution is enacted for a 
                fiscal year through 2002 that includes an 
                appropriation with respect to clause (i) or 
                (ii), the adjustment shall be the amount of 
                budget authority in the measure that is the 
                dollar equivalent of the Special Drawing Rights 
                with respect to----
                            (i) an increase in the United 
                        States quota as part of the 
                        International Monetary Fund Eleventh 
                        General Review of Quotas (United States 
                        Quota); or
                            (ii) any increase in the maximum 
                        amount available to the Secretary of 
                        the Treasury pursuant to section 17 of 
                        the Bretton Woods Agreements Act, as 
                        amended from time to time (New 
                        Arrangements to Borrow).
                    (E) Allowance for international 
                arrearages.----
                            (i) Adjustments.--If an 
                        appropriation bill or joint resolution 
                        is enacted for fiscal year 1998, 1999, 
                        or 2000 that includes an appropriation 
                        for arrearages for international 
                        organizations, international 
                        peacekeeping, and multilateral 
                        development banks for that fiscal year, 
                        the adjustment shall be the amount of 
                        budget authority in that measure and 
                        the outlays flowing in all fiscal years 
                        from that budget authority.
                            (ii) Limitations.--The total amount 
                        of adjustments made pursuant to this 
                        subparagraph for the period of fiscal 
                        years 1998 through 2000 shall not 
                        exceed $1,884,000,000 in budget 
                        authority.
                    (F) EITC compliance initiative.--If an 
                appropriation bill or joint resolution is 
                enacted for a fiscal year that includes an 
                appropriation for an earned income tax credit 
                compliance initiative, the adjustment shall be 
                the amount of budget authority in that measure 
                for that initiative and the outlays flowing in 
                all fiscal years from that budget authority, 
                but not to exceed----
                            (i) with respect to fiscal year 
                        1998, $138,000,000 in new budget 
                        authority and $131,000,000 in outlays;
                            (ii) with respect to fiscal year 
                        1999, $143,000,000 in new budget 
                        authority and $143,000,000 in outlays;
                            (iii) with respect to fiscal year 
                        2000, $144,000,000 in new budget 
                        authority and $144,000,000 in outlays;
                            (iv) with respect to fiscal year 
                        2001, $145,000,000 in new budget 
                        authority and $145,000,000 in outlays; 
                        and
                            (v) with respect to fiscal year 
                        2002, $146,000,000 in new budget 
                        authority and $146,000,000 in outlays.
                    (G) Adoption incentive payments.--Whenever 
                a bill or joint resolution making 
                appropriations for fiscal year 1999, 2000, 
                2001, 2002, or 2003 is enacted that specifies 
                an amount for adoption incentive payments 
                pursuant to this part for the Department of 
                Health and Human 
                Services----
                            (i) the adjustments for new budget 
                        authority shall be the amounts of new 
                        budget authority provided in that 
                        measure for adoption incentive 
                        payments, but not to exceed 
                        $20,000,000; and
                            (ii) the adjustment for outlays 
                        shall be the 
                        additional outlays flowing from such 
                        amount.
                    (H) Conservation spending.--(i) If a bill 
                or resolution making appropriations for any 
                fiscal year appropriates an amount for the 
                conservation spending category that is less 
                than the limit for the conservation spending 
                category as specified in subsection (c), then 
                the adjustment for new budget authority and 
                outlays for the following fiscal year for that 
                category shall be the amount of new budget 
                authority and outlays that equals the 
                difference between the amount appropriated and 
                the amount of that category specified in 
                subsection (c).
                    (ii) If a bill or resolution making 
                appropriations for any fiscal year appropriates 
                an amount for any conservation spending sub-
                category that is less than the limit for that 
                conservation spending sub-category as specified 
                in subsections (c)(11)-(c)(16), then the 
                adjustment for new budget authority for the 
                following fiscal year for that sub-category 
                shall be the amount of new budget authority 
                that equals the difference between the amount 
                appropriated and the amount of that sub-
                category specified in subsection (c)(11)-
                (c)(16).
                    (iii) The total amount provided for any 
                conservation activity within the conservation 
                spending category may not exceed any authorized 
                ceiling for that activity.
    (c) Discretionary Spending Limit.--As used in this part, 
the term ``discretionary spending limit'' means----
            (1) with respect to fiscal year 2005----
                    (A) for the highway category: 
                $31,277,000,000 in outlays;
                    (B) for the mass transit category: 
                $955,792,000 in new budget authority and 
                $6,674,000,000 in outlays;
            (2) with respect to fiscal year 2006----
                    (A) for the highway category: 
                $33,942,000,000 in outlays;
                    (B) for the mass transit category: 
                $1,643,000,000 in new budget authority and 
                $7,359,000,000 in outlays;
            (3) with respect to fiscal year 2007----
                    (A) for the highway category: 
                $36,960,000,000 in outlays;
                    (B) for the mass transit category: 
                $1,712,000,000 in new budget authority and 
                $8,120,000,000 in outlays;
            (4) with respect to fiscal year 2008----
                    (A) for the highway category: 
                $39,123,000,000 in outlays;
                    (B) for the mass transit category: 
                $1,858,000,000 in new budget authority and 
                $8,742,000,000 in outlays;
            (5) with respect to fiscal year 2009----
                    (A) for the highway category: 
                $40,660,000,000 in outlays;
                    (B) for the mass transit category: 
                $1,977,500,000 in new budget authority and 
                $9,180,000,000 in outlays;
            (6) with respect to fiscal year 2005 for the 
        conservation spending category: $2,240,000,000, in new 
        budget authority and $2,192,000,000 in outlays;
            (7) with respect to fiscal year 2006 for the 
        conservation spending category: $2,400,000,000, in new 
        budget authority and $2,352,000,000 in outlays;
            (8) with respect to each fiscal year 2002 through 
        2006 for the Federal and State Land and Water 
        Conservation Fund sub-category of the conservation 
        spending category: $540,000,000 in new budget authority 
        and the outlays flowing therefrom;
            (9) with respect to each fiscal year 2002 through 
        2006 for the State and Other Conservation sub-category 
        of the conservation spending category: $300,000,000 in 
        new budget authority and the outlays flowing therefrom;
            (10) with respect to each fiscal year 2002 through 
        2006 for the Urban and Historic Preservation sub-
        category of the conservation spending category: 
        $160,000,000 in new budget authority and the outlays 
        flowing therefrom;
            (11) with respect to each fiscal year 2002 through 
        2006 for the Payments in Lieu of Taxes sub-category of 
        the conservation spending category: $50,000,000 in new 
        budget authority and the outlays flowing therefrom;
            (12) with respect to each fiscal year 2002 through 
        2006 for the Federal Deferred Maintenance sub-category 
        of the conservation spending category: $150,000,000 in 
        new budget authority and the outlays flowing therefrom;
            (13) with respect to fiscal year 2002 for the 
        Coastal Assistance sub-category of the conservation 
        spending category: $440,000,000 in new budget authority 
        and the outlays flowing therefrom; with respect to 
        fiscal year 2003 for the Coastal Assistance sub-
        category of the conservation spending category: 
        $480,000,000 in new budget authority and the outlays 
        flowing therefrom; with respect to fiscal year 2004 for 
        the Coastal Assistance sub-category of the conservation 
        spending category: $520,000,000 in new budget authority 
        and the outlays flowing therefrom; with respect to 
        fiscal year 2005 for the Coastal Assistance sub-
        category of the conservation spending category: 
        $560,000,000 in new budget authority and the outlays 
        flowing therefrom; and with respect to fiscal year 2006 
        for the Coastal Assistance sub-category of the 
        conservation spending category: $600,000,000 in new 
        budget authority and the outlays flowing therefrom;
as adjusted in strict conformance with subsection (b).

 H4  deg.SEC. 252. [2 U.S.C. 902] ENFORCING PAY-AS-YOU-GO.

    (a) Purpose.--The purpose of this section is to assure that 
any legislation enacted before October 1, 2002, affecting 
direct spending or receipts that increases the deficit will 
trigger an offsetting sequestration.
    (b) Sequestration.----
            (1) Timing.--Not later than 15 calendar days after 
        the date Congress adjourns to end a session and on the 
        same day as a sequestration (if any) under section 251 
        or 253, there shall be a sequestration to offset the 
        amount of any net deficit increase caused by all direct 
        spending and receipts legislation enacted before 
        October 1, 2002, as calculated under paragraph (2).
            (2) Calculation of deficit increase.--OMB shall 
        calculate the amount of deficit increase or decrease by 
        adding----
                    (A) all OMB estimates for the budget year 
                of direct spending and receipts legislation 
                transmitted under subsection (d);
                    (B) the estimated amount of savings in 
                direct spending programs applicable to budget 
                year \1\ resulting from the prior year's 
                sequestration under this section or section 
                253, if any, as published in OMB's final 
                sequestration report for that prior year; and
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``to the budget year''.
---------------------------------------------------------------------------
                    (C) any net deficit increase or decrease in 
                the current year resulting from all OMB 
                estimates for the current year of direct 
                spending and receipts legislation transmitted 
                under subsection (d) that were not reflected in 
                the final OMB sequestration report for the 
                current year.
    (c) Eliminating a Deficit Increase.--(1) The amount 
required to be sequestered in a fiscal year under subsection 
(b) shall be obtained from non-exempt direct spending accounts 
from actions taken in the following order:
            (A) First.--All reductions in automatic spending 
        increases specified in section 256(a) shall be made.
            (B) Second.--If additional reductions in direct 
        spending accounts are required to be made, the maximum 
        reductions permissible under sections 256(b) 
        (guaranteed and direct student loans) and 256(c) 
        (foster care and adoption assistance) shall be made.
            (C) Third.--(i) If additional reductions in direct 
        spending accounts are required to be made, each 
        remaining non-exempt direct spending account shall be 
        reduced by the uniform percentage necessary to make the 
        reductions in direct spending required by paragraph (1) 
        \2\; except that the medicare programs specified in 
        section 256(d) shall not be reduced by more than 4 
        percent and the uniform percentage applicable to all 
        other direct spending programs under this paragraph 
        shall be increased (if necessary) to a level sufficient 
        to achieve the required reduction in direct spending.
---------------------------------------------------------------------------
    \2\ So in law. Probably should refer to subsection (b).
---------------------------------------------------------------------------
            (ii) For purposes of determining reductions under 
        clause (i), outlay reductions (as a result of 
        sequestration of Commodity Credit Corporation commodity 
        price support contracts in the fiscal year of a 
        sequestration) that would occur in the following fiscal 
        year shall be credited as outlay reductions in the 
        fiscal year of the sequestration.
    (2) For purposes of this subsection, accounts shall be 
assumed to be at the level in the baseline.
    (d) Estimates.----
            (1) CBO estimates.--As soon as practicable after 
        Congress completes action on any direct spending or 
        receipts legislation, CBO shall provide an estimate to 
        OMB of that legislation.
            (2) OMB estimates.--Not later than 7 calendar days 
        (excluding Saturdays, Sundays, and legal holidays) 
        after the date of enactment of any direct spending or 
        receipts legislation, OMB shall transmit a report to 
        the House of Representatives and to the Senate 
        containing----
                    (A) the CBO estimate of that legislation;
                    (B) an OMB estimate of that legislation 
                using current economic and technical 
                assumptions; and
                    (C) an explanation of any difference 
                between the 2 estimates.
            (3) Significant differences.--If during the 
        preparation of the report under paragraph (2) OMB 
        determines that there is a significant difference 
        between the OMB and CBO estimates, OMB shall consult 
        with the Committees on the Budget of the House of 
        Representatives and the Senate regarding that 
        difference and that consultation, to the extent 
        practicable, shall include written communication to 
        such committees that affords such committees the 
        opportunity to comment before the issuance of that 
        report.
            (4) Scope of estimates.--The estimates under this 
        section shall include the amount of change in outlays 
        or receipts for the current year (if applicable), the 
        budget year, and each outyear excluding any amounts 
        resulting from----
                    (A) full funding of, and continuation of, 
                the deposit insurance guarantee commitment in 
                effect under current estimates; and
                    (B) emergency provisions as designated 
                under subsection (e).
            (5) Scorekeeping guidelines.--OMB and CBO, after 
        consultation with each other and the Committees on the 
        Budget of the House of Representatives and the Senate, 
        shall----
                    (A) determine common scorekeeping 
                guidelines; and
                    (B) in conformance with such guidelines, 
                prepare estimates under this section.
    (e) \1\ Emergency Legislation.--If a provision of direct 
spending or receipts legislation is enacted that the President 
designates as an emergency requirement and that the Congress so 
designates in statute, the amounts of new budget authority, 
outlays, and receipts in all fiscal years resulting from that 
provision shall be designated as an emergency requirement in 
the reports required under subsection (d). This subsection 
shall not apply to direct spending provisions to cover 
agricultural crop disaster assistance.
---------------------------------------------------------------------------
    \1\ See clause 2(e) of rule XXI of the Rules of the House of 
Representatives.
---------------------------------------------------------------------------

 H4  deg.SEC. 253. [2 U.S.C. 903] ENFORCING DEFICIT TARGETS.

    (a) Sequestration.--Within 15 calendar days after Congress 
adjourns to end a session (other than of the One Hundred First 
Congress) and on the same day as a sequestration (if any) under 
section 251 and section 252, but after any sequestration 
required by section 251 (enforcing discretionary spending 
limits) or section 252 (enforcing pay-as-you-go), there shall 
be a sequestration to eliminate the excess deficit (if any 
remains) if it exceeds the margin.
    (b) Excess Deficit; Margin.--The excess deficit is, if 
greater than zero, the estimated deficit for the budget year, 
minus----
            (1) the maximum deficit amount for that year;
            (2) the amounts for that year designated as 
        emergency direct spending or receipts legislation under 
        section 252(e); and
            (3) for any fiscal year in which there is not a 
        full adjustment for technical and economic reestimates, 
        the deposit insurance reestimate for that year, if any, 
        calculated under subsection (h).
The ``margin'' for fiscal year 1992 or 1993 is zero and for 
fiscal year 1994 or 1995 is $15,000,000,000.
    (c) Dividing the Sequestration.--To eliminate the excess 
deficit in a budget year, half of the required outlay 
reductions shall be obtained from non-exempt defense accounts 
(accounts designated as function 050 in the President's fiscal 
year 1991 budget submission) and half from non-exempt, non-
defense accounts (all other non-exempt accounts).
    (d) Defense.--Each non-exempt defense account shall be 
reduced by a dollar amount calculated by multiplying the level 
of sequestrable budgetary resources in that account at that 
time by the uniform percentage necessary to carry out 
subsection (c), except that, if any military personnel are 
exempt, adjustments shall be made under the procedure set forth 
in section 251(a)(3).
    (e) Non-Defense.--Actions to reduce non-defense accounts 
shall be taken in the following order:
            (1) First.--All reductions in automatic spending 
        increases under section 256(a) shall be made.
            (2) Second.--If additional reductions in non-
        defense accounts are required to be made, the maximum 
        reduction permissible under sections 256(b) (guaranteed 
        student loans) and 256(c) (foster care and adoption 
        assistance) shall be made.
            (3) Third.--(A) If additional reductions in non-
        defense accounts are required to be made, each 
        remaining non-exempt, non-defense account shall be 
        reduced by the uniform percentage necessary to make the 
        reductions in non-defense outlays required by 
        subsection (c), except that----
                    (i) the medicare program specified in 
                section 256(d) shall not be reduced by more 
                than 2 percent in total including any reduction 
                of less than 2 percent made under section 252 
                or, if it has been reduced by 2 percent or more 
                under section 252, it may not be further 
                reduced under this section; and
                    (ii) the health programs set forth in 
                section 256(e) shall not be reduced by more 
                than 2 percent in total (including any 
                reduction made under section 251),
        and the uniform percent applicable to all other 
        programs under this subsection shall be increased (if 
        necessary) to a level sufficient to achieve the 
        required reduction in non-defense outlays.
            (B) For purposes of determining reductions under 
        subparagraph (A), outlay reduction (as a result of 
        sequestration of Commodity Credit Corporation commodity 
        price support contracts in the fiscal year of a 
        sequestration) that would occur in the following fiscal 
        year shall be credited as outlay reductions in the 
        fiscal year of the sequestration.
    (f) Baseline Assumptions; Part-year Appropriations.----
            (1) Budget assumptions.--For purposes of 
        subsections (b), (c), (d), and (e), accounts shall be 
        assumed to be at the level in the baseline minus any 
        reductions required to be made under sections 251 and 
        252.
            (2) Part-year appropriations.--If, on the date 
        specified in subsection (a), there is in effect an Act 
        making or continuing appropriations for part of a 
        fiscal year for any non-exempt budget account, then the 
        dollar sequestration calculated for that account under 
        subsection (d) or (e), as applicable, shall be 
        subtracted from----
                    (A) the annualized amount otherwise 
                available by law in that account under that or 
                a subsequent part-year appropriation; and
                    (B) when a full-year appropriation for that 
                account is enacted, from the amount otherwise 
                provided by the full-year appropriation; except 
                that the amount to be sequestered from that 
                account shall be reduced (but not below zero) 
                by the savings achieved by that appropriation 
                when the enacted amount is less than the 
                baseline for that account.
    (g) Adjustments to Maximum Deficit Amounts.----
            (1) Adjustments.----
                    (A) When the President submits the budget 
                for fiscal year 1992, the maximum deficit 
                amounts for fiscal years 1992, 1993, 1994, and 
                1995 shall be adjusted to reflect up-to-date 
                reestimates of economic and technical 
                assumptions and any changes in concepts or 
                definitions. When the President submits the 
                budget for fiscal year 1993, the maximum 
                deficit amounts for fiscal years 1993, 1994, 
                and 1995 shall be further adjusted to reflect 
                up-to-date reestimates of economic and 
                technical assumptions and any changes in 
                concepts or definitions.
                    (B) When submitting the budget for fiscal 
                year 1994, the President may choose to adjust 
                the maximum deficit amounts for fiscal years 
                1994 and 1995 to reflect up-to-date reestimates 
                of economic and technical assumptions. If the 
                President chooses to adjust the maximum deficit 
                amount when submitting the fiscal year 1994 
                budget, the President may choose to invoke the 
                same adjustment procedure when submitting the 
                budget for fiscal year 1995. In each case, the 
                President must choose between making no 
                adjustment or the full adjustment described in 
                paragraph (2). If the President chooses to make 
                that full adjustment, then those procedures for 
                adjusting discretionary spending limits 
                described in sections 251(b)(1)(C) and 
                251(b)(2)(E), otherwise applicable through 
                fiscal year 1993 or 1994 (as the case may be), 
                shall be deemed to apply for fiscal year 1994 
                (and 1995 if applicable).
                    (C) When the budget for fiscal year 1994 or 
                1995 is submitted and the sequestration reports 
                for those years under section 254 are made (as 
                applicable), if the President does not choose 
                to make the adjustments set forth in 
                subparagraph (B), the maximum deficit amount 
                for that fiscal year shall be adjusted by the 
                amount of the adjustment to discretionary 
                spending limits first applicable for that year 
                (if any) under section 251(b).
                    (D) For each fiscal year the adjustments 
                required to be made with the submission of the 
                President's budget for that year shall also be 
                made when OMB submits the sequestration update 
                report and the final sequestration report for 
                that year, but OMB shall continue to use the 
                economic and technical assumptions in the 
                President's budget for that year.
        Each adjustment shall be made by increasing or 
        decreasing the maximum deficit amounts set forth in 
        section 601 of the Congressional Budget Act of 1974.
            (2) Calculations of adjustments.--The required 
        increase or decrease shall be calculated as follows:
                    (A) The baseline deficit or surplus shall 
                be calculated using up-to-date economic and 
                technical assumptions, using up-to-date 
                concepts and definitions, and, in lieu of the 
                baseline levels of discretionary 
                appropriations, using the discretionary 
                spending limits set forth in section 601 of the 
                Congressional Budget Act of 1974 as adjusted 
                under section 251.
                    (B) The net deficit increase or decrease 
                caused by all direct spending and receipts 
                legislation enacted after the date of enactment 
                of this section (after adjusting for any 
                sequestration of direct spending accounts) 
                shall be calculated for each fiscal year by 
                adding----
                            (i) the estimates of direct 
                        spending and receipts legislation 
                        transmitted under section 252(d) 
                        applicable to each such fiscal year; 
                        and
                            (ii) the estimated amount of 
                        savings in direct spending programs 
                        applicable to each such fiscal year 
                        resulting from the prior year's 
                        sequestration under this section or 
                        section 252 of direct spending, if any, 
                        as contained in OMB's final 
                        sequestration report for that year.
                    (C) The amount calculated under 
                subparagraph (B) shall be subtracted from the 
                amount calculated under subparagraph (A).
                    (D) The maximum deficit amount set forth in 
                section 601 of the Congressional Budget Act of 
                1974 shall be subtracted from the amount 
                calculated under subparagraph (C).
                    (E) The amount calculated under 
                subparagraph (D) shall be the amount of the 
                adjustment required by paragraph (1).
    (h) Treatment of Deposit Insurance.----
            (1) Initial estimates.--The initial estimates of 
        the net costs of federal deposit insurance for fiscal 
        year 1994 and fiscal year 1995 (assuming full funding 
        of, and continuation of, the deposit insurance 
        guarantee commitment in effect on the date of the 
        submission of the budget for fiscal year 1993) shall be 
        set forth in that budget.
            (2) Reestimates.--For fiscal year 1994 and fiscal 
        year 1995, the amount of the reestimate of deposit 
        insurance costs shall be calculated by subtracting the 
        amount set forth under paragraph (1) for that year from 
        the current estimate of deposit insurance costs (but 
        assuming full funding of, and continuation of, the 
        deposit insurance guarantee commitment in effect on the 
        date of submission of the budget for fiscal year 1993).

 H4  deg.SEC. 254. [2 U.S.C. 904] REPORTS AND ORDERS.

    (a) Timetable.--The timetable with respect to this part for 
any budget year is as follows:

Date:               Action to be completed:
  January 21........Notification regarding optional adjustment of ......
                    maximum deficit amount.
  5 days before the CBO sequestration preview report....................
  The President's buOMB sequestration preview report....................
  August 10.........Notification regarding military personnel...........
  August 15.........CBO sequestration update report.....................
  August 20.........OMB sequestration update report.....................
  10 days after end CBO final sequestration report......................
  15 days after end OMB final sequestration report; Presidential order..

    (b) Submission and Availability of Reports.--Each report 
required by this section shall be submitted, in the case of 
CBO, to the House of Representatives, the Senate and OMB and, 
in the case of OMB, to the House of Representatives, the 
Senate, and the President on the day it is issued. On the 
following day a notice of the report shall be printed in the 
Federal Register.
    (c) Sequestration Preview Reports.----
            (1) Reporting requirement.--On the dates specified 
        in subsection (a), OMB and CBO shall issue a preview 
        report regarding discretionary, pay-as-you-go, and 
        deficit sequestration based on laws enacted through 
        those dates.
            (2) Discretionary sequestration report.--The 
        preview reports shall set forth estimates for the 
        current year and each subsequent year through 2002 of 
        the applicable discretionary spending limits for each 
        category and an explanation of any adjustments in such 
        limits under section 251.
            (3) Pay-as-you-go sequestration reports.--The 
        preview reports shall set forth, for the current year 
        and the budget year, estimates for each of the 
        following:
                    (A) The amount of net deficit increase or 
                decrease, if any, calculated under subsection 
                \1\ 252(b).
---------------------------------------------------------------------------
    \1\ So in law. Probably should be ``section''.
---------------------------------------------------------------------------
                    (B) A list identifying each law enacted and 
                sequestration implemented after the date of 
                enactment of this section included in the 
                calculation of the amount of deficit increase 
                or decrease and specifying the budgetary effect 
                of each such law.
                    (C) The sequestration percentage or (if the 
                required sequestration percentage is greater 
                than the maximum allowable percentage for 
                medicare) percentages necessary to eliminate a 
                deficit increase under section 252(c).
            (4) Deficit sequestration reports.--The preview 
        reports shall set forth for the budget year estimates 
        for each of the following:
                    (A) The maximum deficit amount, the 
                estimated deficit calculated under section 
                253(b), the excess deficit, and the margin.
                    (B) The amount of reductions required under 
                section 252, the excess deficit remaining after 
                those reductions have been made, and the amount 
                of reductions required from defense accounts 
                and the reductions required from non-defense 
                accounts.
                    (C) The sequestration percentage necessary 
                to achieve the required reduction in defense 
                accounts under section 253(d).
                    (D) The reductions required under sections 
                253(e)(1) and 253(e)(2).
                    (E) The sequestration percentage necessary 
                to achieve the required reduction in non-
                defense accounts under section 253(e)(3).
        The CBO report need not set forth the items other than 
        the maximum deficit amount for fiscal year 1992, 1993, 
        or any fiscal year for which the President notifies the 
        House of Representatives and the Senate that he will 
        adjust the maximum deficit amount under the option 
        under section 253(g)(1)(B).
            (5) Explanation of differences.--The OMB reports 
        shall explain the differences between OMB and CBO 
        estimates for each item set forth in this subsection.
    (d) Notification Regarding Military Personnel.--On or 
before the date specified in subsection (a), the President 
shall notify the Congress of the manner in which he intends to 
exercise flexibility with respect to military personnel 
accounts under section 255(f).
    (e) Sequestration Update Reports.--On the dates specified 
in subsection (a), OMB and CBO shall issue a sequestration 
update report, reflecting laws enacted through those dates, 
containing all of the information required in the sequestration 
preview reports.
    (f) Final Sequestration Reports.----
            (1) Reporting requirement.--On the dates specified 
        in subsection (a), OMB and CBO shall issue a final 
        sequestration report, updated to reflect laws enacted 
        through those dates.
            (2) Discretionary sequestration reports.--The final 
        reports shall set forth estimates for each of the 
        following:
                    (A) For the current year and each 
                subsequent year through 2002 the applicable 
                discretionary spending limits for each category 
                and an explanation of any adjustments in such 
                limits under section 251.
                    (B) For the current year and the budget 
                year the estimated new budget authority and 
                outlays for each category and the breach, if 
                any, in each category.
                    (C) For each category for which a 
                sequestration is required, the sequestration 
                percentages necessary to achieve the required 
                reduction.
                    (D) For the budget year, for each account 
                to be sequestered, estimates of the baseline 
                level of sequesterable budgetary resources and 
                resulting outlays and the amount of budgetary 
                resources to be sequestered and resulting 
                outlay reductions.
            (3) Pay-as-you-go and deficit sequestration 
        reports.--The final reports shall contain all the 
        information required in the pay-as-you-go and deficit 
        sequestration preview reports. In addition, these 
        reports shall contain, for the budget year, for each 
        account to be sequestered, estimates of the baseline 
        level of sequestrable budgetary resources and resulting 
        outlays and the amount of budgetary resources to be 
        sequestered and resulting outlay reductions. The 
        reports shall also contain estimates of the effects on 
        outlays of the sequestration in each outyear for direct 
        spending programs.
            (4) Explanation of differences.--The OMB report 
        shall explain any differences between OMB and CBO 
        estimates of the amount of any net deficit change 
        calculated under subsection \1\ 252(b), any excess 
        deficit, any breach, and any required sequestration 
        percentage. The OMB report shall also explain 
        differences in the amount of sequesterable \2\ 
        resources for any budget account to be reduced if such 
        difference is greater than $5,000,000.
---------------------------------------------------------------------------
    \1\ So in law. Probably should be ``section''.
    \2\ So in law. Probably should be ``sequestrable''.
---------------------------------------------------------------------------
            (5) Presidential order.--On the date specified in 
        subsection (a), if in its final sequestration report 
        OMB estimates that any sequestration is required, the 
        President shall issue an order fully implementing 
        without change all sequestrations required by the OMB 
        calculations set forth in that report. This order shall 
        be effective on issuance.
    (g) Within-Session Sequestration Reports and Order.--If an 
appropriation for a fiscal year in progress is enacted (after 
Congress adjourns to end the session for that budget year and 
before July 1 of that fiscal year) that causes a breach, 10 
days later CBO shall issue a report containing the information 
required in paragraph (f)(2). Fifteen days after enactment, OMB 
shall issue a report containing the information required in 
paragraphs (f)(2) and (f)(4). On the same day as the OMB 
report, the President shall issue an order fully implementing 
without change all sequestrations required by the OMB 
calculations set forth in that report. This order shall be 
effective on issuance.
    (h) 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.
    (i) Low-Growth Report.--At any time, CBO shall notify the 
Congress if----
            (1) during the period consisting of the quarter 
        during which such notification is given, the quarter 
        preceding such notification, and the 4 quarters 
        following such notification, CBO or OMB has determined 
        that real economic growth is projected or estimated to 
        be less than zero with respect to each of any 2 
        consecutive quarters within such period; or
            (2) the most recent of the Department of Commerce's 
        advance preliminary or final reports of actual real 
        economic growth indicate that the rate of real economic 
        growth for each of the most recently reported quarter 
        and the immediately preceding quarter is less than one 
        percent.
    (j) 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. 255. [2 U.S.C. 905] EXEMPT PROGRAMS AND ACTIVITIES.

    (a) Social Security Benefits and Tier I Railroad Retirement 
Benefits.--Benefits payable under the old-age, survivors, and 
disability insurance program established under title II of the 
Social Security Act, and benefits payable under section 3(a), 
3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act of 1974, 
shall be exempt from reduction under any order issued under 
this part.
    (b) Veterans Programs.--The following programs shall be 
exempt from reduction under any order issued under this part:
            National Service Life Insurance Fund (36-8132-0-7-
        701);
            Service-Disabled Veterans Insurance Fund (36-4012-
        0-3-701);
            Veterans Special Life Insurance Fund (36-8455-0-8-
        701);
            Veterans Reopened Insurance Fund (36-4010-0-3-701);
            United States Government Life Insurance Fund (36-
        8150-0-7-701);
            Veterans Insurance and Indemnities (36-0120-0-1-
        701);
            Special Therapeutic and Rehabilitation Activities 
        Fund (36-4048-0-3-703);
            Canteen Service Revolving Fund (36-4014-0-3-705);
            Benefits under chapter 21 of title 38, United 
        States Code, relating to specially adapted housing and 
        mortgage-protection life insurance for certain veterans 
        with service-connected disabilities (36-0120-0-1-701);
            Benefits under section 907 of title 38, United 
        States Code, relating to burial benefits for veterans 
        who die as a result of service-connected disability 
        (36-0155-0-1-701);
            Benefits under chapter 39 of title 38, United 
        States Code, relating to automobiles and adaptive 
        equipment for certain disabled veterans and members of 
        the Armed Forces (36-0137-0-1-702);
            Compensation (36-0153-0-1-701); and
            Pensions (36-0154-0-1-701).
            Benefits under chapter 35 of title 38, United 
        States Code, related to educational assistance for 
        survivors and dependents of certain veterans with 
        service-connected disabilities (36-0137-0-1-702);
            Assistance and services under chapter 31 of title 
        38, United States Code, relating to training and 
        rehabilitation for certain veterans with service-
        connected disabilities (36-0137-0-1-702);
            Benefits under subchapters I, II, and III of 
        chapter 37 of title 38, United States Code, relating to 
        housing loans for certain veterans and for the spouses 
        and surviving spouses of certain veterans Guaranty and 
        Indemnity Program Account (36-1119-0-1-704);
            Loan Guaranty Program Account (36-1025-0-1-704); 
        and
            Direct Loan Program Account (36-1024-0-1-704).
    (c) Net Interest.--No reduction of payments for net 
interest (all of major functional category 900) shall be made 
under any order issued under this part.
    (d) Earned Income Tax Credit.--Payments to individuals made 
pursuant to section 32 of the Internal Revenue Code of 1954 
shall be exempt from reduction under any order issued under 
this part.
    (e) Non-defense Unobligated Balances.--Unobligated balances 
of budget authority carried over from prior fiscal years, 
except balances in the defense category, shall be exempt from 
reduction under any order issued under this part.
    (f) Optional Exemption of Military Personnel.----
            (1) In general.--The President may, with respect to 
        any military personnel account, exempt that account 
        from sequestration or provide for a lower uniform 
        percentage reduction than would otherwise apply.
            (2) Limitation.--The President may not use the 
        authority provided by paragraph (1) unless the 
        President notifies the Congress of the manner in which 
        such authority will be exercised on or before the date 
        specified in section 254(a) for the budget year.
    (g) Other Programs and Activities.----
            (1)(A) The following budget accounts and activities 
        shall be exempt from reduction under any order issued 
        under this part:
                    Activities resulting from private 
                donations, bequests, or voluntary contributions 
                to the Government;
                    Activities financed by voluntary payments 
                to the Government for goods or services to be 
                provided for such payments;
                    Administration of Territories, Northern 
                Mariana Islands Covenant grants (14-0412-0-1-
                806);
                    Alaska Power Administration, Operations and 
                maintenance (89-0304-0-1-271);
                    Appropriations for the District of Columbia 
                (to the extent they are appropriations of 
                locally raised funds);
                    Bonneville Power Administration fund and 
                borrowing authority established pursuant to 
                section 13 of Public Law 93-454 (1974), as 
                amended (89-4045-0-3-271);
                    Bureau of Indian Affairs, Indian land and 
                water claims settlements and miscellaneous 
                payments to Indians (14-2303-0-1-452);  
                    Bureau of Indian Affairs Miscellaneous 
                trust funds (14-9973-0-7-999);
                    Claims, judgments, and relief acts (20-
                1895-0-1-808);
                    Compact of Free Association (14-0415-0-1-
                808);
                    Compensation of the President (11-0001-0-1-
                802);
                    Conservation Reserve Program (12-2319-0-1-
                302);
                    Customs Service, miscellaneous permanent 
                appropriations (20-9922-0-2-806);
                    Comptroller of the Currency, Assessment 
                funds (20-8413-0-8-373);
                    Dual benefits payments account (60-0111-0-
                1-601);
                    Exchange stabilization fund (20-4444-0-3-
                155);
                    Farm Credit Administration, Limitation on 
                Administrative Expenses (78-4131-0-3-351);
                    Farm Credit System Financial Assistance 
                Corporation, interest payment (20-1850-0-1-
                908);
                    Farm Credit System Financial Assistance 
                Corporation, interest payment (20-1850-0-1-
                351);
                    Federal Deposit Insurance Corporation, Bank 
                Insurance Fund (51-4064-0-3-373);
                    Federal Deposit Insurance Corporation, 
                FSLIC Resolution Fund (51-4065-0-3-373);
                    Federal Deposit Insurance Corporation, 
                Savings Association Insurance Fund (51-4066-0-
                3-373); \1\
                    Federal Housing Finance Board (95-4039-0-3-
                371);
                    Federal payment to the railroad retirement 
                accounts (60-0113-0-1-601);
                    Foreign military sales trust fund (11-8242-
                0-7-155);
                    Health professions graduate student loan 
                insurance fund program account (75-0340-0-1-
                552);
                    Higher education facilities loans (91-0240-
                01-502);
                    Internal Revenue collections for Puerto 
                Rico (20-5737-0-2-806);
                    Intragovernmental funds, including those 
                from which the outlays are derived primarily 
                from resources paid in from other government 
                accounts, except to the extent such funds are 
                augmented by direct appropriations for the 
                fiscal year during which an order is in effect;
                    Panama Canal Commission, Panama Canal 
                Revolving Fund (95-4061-0-3-403);
                    Medical facilities guarantee and loan fund, 
                Federal interest subsidies for medical 
                facilities (75-9931-0-3-550);
                    National Credit Union Administration 
                operating fund (25-4056-0-3-373);
                    National Credit Union Administration, 
                Central liquidity facility (25-4470-0-3-373);
                    National Credit Union Administration, 
                Credit union share insurance fund (25-4468-0-3-
                373);
                    Office of Thrift Supervision (20-4108-0-3-
                373);
                    Payment of Vietnam and USS Pueblo prisoner-
                of-war claims (15-0104-0-1-153);
                    Payment to civil service retirement and 
                disability fund (24-0200-0-1-805);
                    Payment to Judiciary Trust Funds (10-0941-
                0-1-752);
                    Payments to copyright owners (03-5175-0-2-
                376);
                    Payments to health care trust funds (75-
                0580-0-1-571);
                    Payments to military retirement fund (97-
                0040-0-1-054);
                    Payments to social security trust funds 
                (75-0404-0-1-651);
                    Payments to the foreign service retirement 
                and disability fund (11-1036-0-1-153 and 19-
                0540-0-1-153);
                    Payments to trust funds from excise taxes 
                or other receipts properly creditable to such 
                trust funds;
                    Payments to the United States territories, 
                fiscal assistance (14-0418-0-1-806);
                    Payments to widows and heirs of deceased 
                Members of Congress (00-0215-0-1-801);
                    Postal service fund (18-4020-0-3-372);
                    Resolution Trust Corporation Revolving Fund 
                (22-4055-0-3-373);
                    Salaries of Article III judges;
                    Soldiers and Airmen's Home, payment of 
                claims (84-8930-0-7-705);
                    Southeastern Power Administration, 
                Operations and maintenance (89-0302-0-1-271);
                    Southwestern Power Administration, 
                Operations and maintenance (89-0303-0-1-271);
                    Tennessee Valley Authority fund, except 
                non-power programs and activities (64-4110-0-3-
                999);
                    Thrift Savings Fund;
                    United States Enrichment Corporation (95-
                4054-0-3-271);
                    Vaccine Injury Compensation (75-0320-0-1-
                551);
                    Vaccine Injury Compensation Program Trust 
                Fund (20-8175-0-7-551);
                    United States Enrichment Corporation;
                    Washington Metropolitan Area Transit 
                Authority, interest payments (46-0300-0-1-401);
                    Western Area Power Administration, 
                Construction, rehabilitation, operations, and 
                maintenance (89-5068-0-2-271); and
                    Western Area Power Administration, Colorado 
                River basins power marketing fund (89-4452-0-3-
                271).
            (B) The following Federal retirement and disability 
        accounts and activities shall be exempt from reduction 
        under any order issued under this part:
                    Black Lung Disability Trust Fund (20-8144-
                0-7-601);
                    Central Intelligence Agency retirement and 
                disability system fund (56-3400-0-1-054);
                    Civil service retirement and disability 
                fund (24-8135-0-7-602);
                    Comptrollers general retirement system (05-
                0107-0-1-801);
                    Foreign service retirement and disability 
                fund (19-8186-0-7-602);
                    Judicial survivors' annuities fund (10-
                8110-0-7-602);
                    Judicial Officers' Retirement Fund (10-
                8122-0-7-602);
                    Claims Judges' Retirement Fund (10-8124-0-
                7-602);
                    Special workers compensation expenses, 
                Longshoremen's and harborworkers' compensation 
                benefits (16-9971-0-7-601);
                    Military retirement fund (97-8097-0-7-602);
                    National Oceanic and Atmospheric 
                Administration retirement (13-1450-0-1-306);
                    Pensions for former Presidents (47-0105-0-
                1-802);
                    Railroad Industry Pension Fund (60-8011-0-
                7-601);
            Railroad \1\ supplemental annuity pension fund (60-
        8012-0-7-602);
---------------------------------------------------------------------------
    \1\ So in law. Probably should not be indented.
---------------------------------------------------------------------------
                    Retired pay, Coast Guard (69-0241-0-1-403);
                    Retirement pay and medical benefits for 
                commissioned officers, Public Health Service 
                (75-0379-0-1-551);
                    Special benefits, Federal Employees' 
                Compensation Act (16-1521-0-1-600);
                    Special benefits for disabled coal miners 
                (75-0409-0-1-601); and
                    Tax Court judges survivors annuity fund 
                (23-8115-0-7-602).
            (2) Prior legal obligations of the Government in 
        the following budget accounts and activities shall be 
        exempt from any order issued under this part:
                    Biomass energy development (20-0114-0-1-
                271);
                    United States Treasury check forgery 
                insurance fund (20-4109-0-3-803);
                    Credit liquidating accounts;
                    Employees life insurance fund (24-8424-0-8-
                602);
                    Energy security reserve (Synthetic Fuels 
                Corporation) (20-0112-0-1-271);
                    Federal Aviation Administration, Aviation 
                insurance revolving fund (69-4120-0-3-402);
                    Federal Crop Insurance Corporation fund 
                (12-4085-0-3-351);
                    Federal Emergency Management Agency, 
                National flood insurance fund (58-4236-0-3-
                453);
                    Federal Emergency Management Agency, 
                National insurance development fund (58-4235-0-
                3-451);
                    Geothermal resources development fund (89-
                0206-0-1-271);
                    Homeowners assistance fund, Defense (97-
                4090-0-3-051);
                    International Trade Administration, 
                Operations and administration (13-1250-0-1-
                376);
                    Low-rent public housing, Loans and other 
                expenses (86-4098-0-3-604);
                    Maritime Administration, War-risk insurance 
                revolving fund (69-4302-0-3-403);
                    Overseas Private Investment Corporation 
                (71-4030-0-3-151);
                    Pension Benefit Guaranty Corporation fund 
                (16-4204-0-3-601);
                    Rail service assistance (69-0122-0-1-401);
                    Department of Veterans Affairs, 
                Servicemen's group life insurance fund (36-
                4009-0-3-701).
    (h) Low-Income Programs.--The following programs shall be 
exempt from reduction under any order issued under this part:
            Block grants to States for temporary assistance for 
        needy families; \1\
---------------------------------------------------------------------------
    \1\ Superceded by temporary assistance for needy families as part 
of section 103 of the Personal Responsibility and Work Opportunity Act 
of 1996.
---------------------------------------------------------------------------
            Child nutrition programs (with the exception of 
        special milk programs) (12-3539-0-1-605);
            Temporary assistance for needy families (75-1552-0-
        1-609);
            Contingency fund (75-1522-0-1-609);
            Child care entitlement to States (75-1550-0-1-609);
            Commodity supplemental food program (12-3512-0-1-
        605);
            Food stamp programs (12-3505-0-1-605 and 12-3550-0-
        1-605);
            Grants to States for Medicaid (75-0512-0-1-55l);
            Supplemental Security Income Program (75-0406-0-1-
        609); and \2\
---------------------------------------------------------------------------
    \2\ So in law. The word ``and'' is extraneous.
---------------------------------------------------------------------------
            Special supplemental nutrition program for women, 
        infants, and children (WIC) (12-3510-0-1-605); \3\
---------------------------------------------------------------------------
    \3\ So in law. Probably should have the word ``and'' after the 
semicolon.
---------------------------------------------------------------------------
            Family support payments to States (75-1501-0-1-
        609); \4\
---------------------------------------------------------------------------
    \4\ So in law. Probably should end with a period.
---------------------------------------------------------------------------
    (i) Identification of Programs.--For purposes of 
subsections (b), (g), and (h), each account is identified by 
the designated budget account identification code number set 
forth in the Budget of the United States Government 1998-
Appendix, and an activity within an account is designated by 
the name of the activity and the identification code number of 
the account.

SEC. 256. [2 U.S.C. 906] GENERAL AND SPECIAL SEQUESTRATION RULES.

    (a) Automatic Spending Increases.--Automatic spending 
increases are increases in outlays due to changes in indexes in 
the following programs:
            (1) Special milk program; and
            (2) Vocational rehabilitation basic State grants.
In those programs all amounts other than the automatic spending 
increases shall be exempt from reduction under any order issued 
under this part.
    (b) Student Loans.--For all student loans under part B or D 
of title IV of the Higher Education Act of 1965 made during the 
period when a sequestration order under section 254 is in 
effect as required by section 252 or 253, origination fees 
under sections 438(c)(2) and 455(c) of that Act shall each be 
increased by 0.50 percentage point.
    (c) Treatment of Foster Care and Adoption Assistance 
Programs.--Any order issued by the President under section 254 
shall make the reduction which is otherwise required under the 
foster care and adoption assistance programs (established by 
part E of title IV of the Social Security Act) only with 
respect to payments and expenditures made by States in which 
increases in foster care maintenance payment rates or adoption 
assistance payment rates (or both) are to take effect during 
the fiscal year involved, and only to the extent that the 
required reduction can be accomplished by applying a uniform 
percentage reduction to the Federal matching payments that each 
such State would otherwise receive under section 474 of that 
Act (for such fiscal year) for that portion of the State's 
payments which is attributable to the increases taking effect 
during that year. No State's matching payments from the Federal 
Government for foster care maintenance payments or for adoption 
assistance maintenance payments may be reduced by a percentage 
exceeding the applicable domestic sequestration percentage. No 
State may, after the date of the enactment of this joint 
resolution, make any change in the timetable for making 
payments under a State plan approved under part E of title IV 
of the Social Security Act which has the effect of changing the 
fiscal year in which expenditures under such part are made.
    (d) Special Rules for Medicare Program.----
            (1) Calculation of reduction in individual payment 
        amounts.--To achieve the total percentage reduction in 
        those programs required by sections 252 and 253, and 
        notwithstanding section 710 of the Social Security Act, 
        OMB shall determine, and the applicable Presidential 
        order under section 254 shall implement, the percentage 
        reduction that shall apply to payments under the health 
        insurance programs under title XVIII of the Social 
        Security Act for services furnished after the order is 
        issued, such that the reduction made in payments under 
        that order shall achieve the required total percentage 
        reduction in those payments for that fiscal year as 
        determined on a 12-month basis.
            (2) Timing of application of reductions.----
                    (A) In general.--Except as provided in 
                subparagraph (B), if a reduction is made under 
                paragraph (1) in payment amounts pursuant to a 
                sequestration order, the reduction shall be 
                applied to payment for services furnished 
                during the effective period of the order. For 
                purposes of the previous sentence, in the case 
                of inpatient services furnished for an 
                individual, the services shall be considered to 
                be furnished on the date of the individual's 
                discharge from the inpatient facility.
                    (B) Payment on the basis of cost reporting 
                periods.--In the case in which payment for 
                services of a provider of services is made 
                under title XVIII of the Social Security Act on 
                a basis relating to the reasonable cost 
                incurred for the services during a cost 
                reporting period of the provider, if a 
                reduction is made under paragraph (1) in 
                payment amounts pursuant to a sequestration 
                order, the reduction shall be applied to 
                payment for costs for such services incurred at 
                any time during each cost reporting period of 
                the provider any part of which occurs during 
                the effective period of the order, but only 
                (for each such cost reporting period) in the 
                same proportion as the fraction of the cost 
                reporting period that occurs during the 
                effective period of the order.
            (3) No increase in beneficiary charges in 
        assignment-related cases.--If a reduction in payment 
        amounts is made under paragraph (1) for services for 
        which payment under part B of title XVIII of the Social 
        Security Act is made on the basis of an assignment 
        described in section 1842(b)(3)(B)(ii), in accordance 
        with section 1842(b)(6)(B), or under the procedure 
        described in section 1870(f)(1), of such Act, the 
        person furnishing the services shall be considered to 
        have accepted payment of the reasonable charge for the 
        services, less any reduction in payment amount made 
        pursuant to a sequestration order, as payment in full.
            (4) No effect on computation of aapcc.--In 
        computing the adjusted average per capita cost for 
        purposes of section 1876(a)(4) of the Social Security 
        Act, the Secretary of Health and Human Services shall 
        not take into account any reductions in payment amounts 
        which have been or may be effected under this part.
    (e) Community and Migrant Health Centers, Indian Health 
Services and Facilities, and Veterans' Medical Care.----
            (1) The maximum permissible reduction in budget 
        authority for any account listed in paragraph (2) for 
        any fiscal year, pursuant to an order issued under 
        section 254, shall be 2 percent.
            (2) The accounts referred to in paragraph (1) are 
        as follows:
                    (A) Community health centers (75-0350-0-1-
                550).
                    (B) Migrant health centers (75-0350-0-1-
                550).
                    (C) Indian health facilities (75-0391-0-1-
                551).
                    (D) Indian health services (75-0390-0-1-
                551).
                    (E) Veterans' medical care (36-0160-0-1-
                703).
        For purposes of the preceding provisions of this 
        paragraph, programs are identified by the designated 
        budget account identification code numbers set forth in 
        the Budget of the United States Government--Appendix.
    (f) Treatment of Child Support Enforcement Program.--
Notwithstanding any change in the display of budget accounts, 
any order issued by the President under section 254 shall 
accomplish the full amount of any required reduction in 
expenditures under sections 455 and 458 of the Social Security 
Act by reducing the Federal matching rate for State 
administrative costs under such program, as specified (for the 
fiscal year involved) in section 455(a) of such Act, to the 
extent necessary to reduce such expenditures by that amount.
    (g) Federal Pay.----
            (1) In general.--For purposes of any order issued 
        under section 254----
                    (A) Federal pay under a statutory pay 
                system, and
                    (B) elements of military pay,
        shall be subject to reduction under an order in the 
        same manner as other administrative expense components 
        of the Federal budget; except that no such order may 
        reduce or have the effect of reducing the rate of pay 
        to which any individual is entitled under any such 
        statutory pay system (as increased by any amount 
        payable under section 5304 of title 5, United States 
        Code, or section 302 of the Federal Employees Pay 
        Comparability Act of 1990) or the rate of any element 
        of military pay to which any individual is entitled 
        under title 37, United States Code, or any increase in 
        rates of pay which is scheduled to take effect under 
        section 5303 of title 5, United States Code, section 
        1009 of title 37, United States Code, or any other 
        provision of law.
            (2) Definitions.--For purposes of this subsection:
                    (A) The term ``statutory pay system'' shall 
                have the meaning given that term in section 
                5302(1) of title 5, United States Code.
                    (B) The term ``elements of military pay'' 
                means----
                            (i) the elements of compensation of 
                        members of the uniformed services 
                        specified in section 1009 of title 37, 
                        United States Code,
                            (ii) allowances provided members of 
                        the uniformed services under sections 
                        403a and 405 of such title, and
                            (iii) cadet pay and midshipman pay 
                        under section 203(c) of such title.
                    (C) The term ``uniformed services'' shall 
                have the meaning given that term in section 
                101(3) of title 37, United States Code.
    (h) Treatment of Federal Administrative Expenses.----
            (1) Notwithstanding any other provision of this 
        title, administrative expenses incurred by the 
        departments and agencies, including independent 
        agencies, of the Federal Government in connection with 
        any program, project, activity, or account shall be 
        subject to reduction pursuant to an order issued under 
        section 254, without regard to any exemption, 
        exception, limitation, or special rule which is 
        otherwise applicable with respect to such program, 
        project, activity, or account under this part.
            (2) Notwithstanding any other provision of law, 
        administrative expenses of any program, project, 
        activity, or account which is self-supporting and does 
        not receive appropriations shall be subject to 
        reduction under a sequester order, unless specifically 
        exempted in this part.
            (3) Payments made by the Federal Government to 
        reimburse or match administrative costs incurred by a 
        State or political subdivision under or in connection 
        with any program, project, activity, or account shall 
        not be considered administrative expenses of the 
        Federal Government for purposes of this section, and 
        shall be subject to reduction or sequestration under 
        this part to the extent (and only to the extent) that 
        other payments made by the Federal Government under or 
        in connection with that program, project, activity, or 
        account are subject to such reduction or sequestration; 
        except that Federal payments made to a State as 
        reimbursement of administrative costs incurred by such 
        State under or in connection with the unemployment 
        compensation programs specified in subsection (h)(1) 
        shall be subject to reduction or sequestration under 
        this part notwithstanding the exemption otherwise 
        granted to such programs under that subsection.
            (4) Notwithstanding any other provision of law, 
        this subsection shall not apply with respect to the 
        following:
                    (A) Comptroller of the Currency.
                    (B) Federal Deposit Insurance Corporation.
                    (C) Office of Thrift Supervision.
                    (D) National Credit Union Administration.
                    (E) National Credit Union Administration, 
                central liquidity facility.
                    (F) Federal Retirement Thrift Investment 
                Board.
                    (G) Resolution Trust Corporation.
                    (H) Farm Credit Administration.
    (i) Treatment of Payments and Advances Made With Respect to 
Unemployment Compensation Programs.--(1) For purposes of 
section 254----
            (A) any amount paid as regular unemployment 
        compensation by a State from its account in the 
        Unemployment Trust Fund (established by section 904(a) 
        of the Social Security Act),
            (B) any advance made to a State from the Federal 
        unemployment account (established by section 904(g) of 
        such Act) under title XII of such Act and any advance 
        appropriated to the Federal unemployment account 
        pursuant to section 1203 of such Act, and
            (C) any payment made from the Federal Employees 
        Compensation Account (as established under section 909 
        of such Act) for the purpose of carrying out chapter 85 
        of title 5, United States Code, and funds appropriated 
        or transferred to or otherwise deposited in such 
        Account,
shall not be subject to reduction.
    (2)(A) A State may reduce each weekly benefit payment made 
under the Federal-State Extended Unemployment Compensation Act 
of 1970 for any week of unemployment occurring during any 
period with respect to which payments are reduced under an 
order issued under section 254 by a percentage not to exceed 
the percentage by which the Federal payment to the State under 
section 204 of such Act is to be reduced for such week as a 
result of such order.
    (B) A reduction by a State in accordance with subparagraph 
(A) shall not be considered as a failure to fulfill the 
requirements of section 3304(a)(11) of the Internal Revenue 
Code of 1954.
    (j) Commodity Credit Corporation.----
            (1) Powers and authorities of the commodity credit 
        corporation.--This title shall not restrict the 
        Commodity Credit Corporation in the discharge of its 
        authority and responsibility as a corporation to buy 
        and sell commodities in world trade, to use the 
        proceeds as a revolving fund to meet other obligations 
        and otherwise operate as a corporation, the purpose for 
        which it was created.
            (2) Reduction in payments made under contracts.--
        (A) Loan eligibility under any contract entered into 
        with a person by the Commodity Credit Corporation prior 
        to the time an order has been issued under section 254 
        shall not be reduced by an order subsequently issued. 
        Subject to subparagraph (B), after an order is issued 
        under such section for a fiscal year, any cash payments 
        for loans or loan deficiencies made by the Commodity 
        Credit Corporation shall be subject to reduction under 
        the order.
            (B) Each loan contract entered into with producers 
        or producer cooperatives with respect to a particular 
        crop of a commodity and subject to reduction under 
        subparagraph (A) shall be reduced in accordance with 
        the same terms and conditions. If some, but not all, 
        contracts applicable to a crop of a commodity have been 
        entered into prior to the issuance of an order under 
        section 254, the order shall provide that the necessary 
        reduction in payments under contracts applicable to the 
        commodity be uniformly applied to all contracts for the 
        next succeeding crop of the commodity, under the 
        authority provided in paragraph (3).
            (3) Delayed reduction in outlays permissible.--
        Notwithstanding any other provision of this title, if 
        an order under section 254 is issued with respect to a 
        fiscal year, any reduction under the order applicable 
        to contracts described in paragraph (1) may provide for 
        reductions in outlays for the account involved to occur 
        in the fiscal year following the fiscal year to which 
        the order applies.
            (4) Uniform percentage rate of reduction and other 
        limitations.--All reductions described in paragraph (2) 
        which are required to be made in connection with an 
        order issued under section 254 with respect to a fiscal 
        year shall be made so as to ensure that outlays for 
        each program, project, activity, or account involved 
        are reduced by a percentage rate that is uniform for 
        all such programs, projects, activities, and accounts, 
        and may not be made so as to achieve a percentage rate 
        of reduction in any such item exceeding the rate 
        specified in the order.
            (5) Dairy program.--Notwithstanding any other 
        provision of this subsection, as the sole means of 
        achieving any reduction in outlays under the milk price 
        support program, the Secretary of Agriculture shall 
        provide for a reduction to be made in the price 
        received by producers for all milk produced in the 
        United States and marketed by producers for commercial 
        use. That price reduction (measured in cents per 
        hundred weight of milk marketed) shall occur under 
        section 201(d)(2)(A) of the Agricultural Act of 1949 (7 
        U.S.C. 1446(d)(2)(A)), shall begin on the day any 
        sequestration order is issued under section 254, and 
        shall not exceed the aggregate amount of the reduction 
        in outlays under the milk price support program that 
        otherwise would have been achieved by reducing payments 
        for the purchase of milk or the products of milk under 
        this subsection during the applicable fiscal year.
            (6) Certain authority not to be limited.--Nothing 
        in this joint resolution shall limit or reduce, in any 
        way, any appropriation that provides the Commodity 
        Credit Corporation with budget authority to cover the 
        Corporation's net realized losses.
    (k) Effects of Sequestration.--The effects of sequestration 
shall be as follows:
            (1) Budgetary resources sequestered from any 
        account shall be permanently cancelled, except as 
        provided in paragraph (5) \1\.
---------------------------------------------------------------------------
    \1\ So in law. Probably should refer to paragraph (6).
---------------------------------------------------------------------------
            (2) Except as otherwise provided, the same 
        percentage sequestration 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).
            (3) Administrative regulations or similar actions 
        implementing a sequestration shall be made within 120 
        days of the sequestration order. To the extent that 
        formula allocations differ at different levels of 
        budgetary resources within an account, program, 
        project, or activity, the sequestration shall be 
        interpreted as producing a lower total appropriation, 
        with the remaining amount of the appropriation being 
        obligated in a manner consistent with program 
        allocation formulas in substantive law.
            (4) Except as otherwise provided, obligations in 
        sequestered accounts shall be reduced only in the 
        fiscal year in which a sequester occurs.
            (5) If an automatic spending increase is 
        sequestered, the increase (in the applicable index) 
        that was disregarded as a result of that sequestration 
        shall not be taken into account in any subsequent 
        fiscal year.
            (6) Budgetary resources sequestered in revolving, 
        trust, and special fund accounts and offsetting 
        collections sequestered in appropriation accounts shall 
        not be available for obligation during the fiscal year 
        in which the sequestration occurs, but shall be 
        available in subsequent years to the extent otherwise 
        provided in law.

 H4  deg.SEC. 257. [2 U.S.C. 907] THE BASELINE.

    (a) In General.--For any budget year, the baseline refers 
to a projection of current-year levels of new budget authority, 
outlays, revenues, and the surplus or deficit into the budget 
year and the outyears based on laws enacted through the 
applicable date.
    (b) Direct Spending and Receipts.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions:
            (1) In general.--Laws providing or creating direct 
        spending and receipts are assumed to operate in the 
        manner specified in those laws for each such year and 
        funding for entitlement authority is assumed to be 
        adequate to make all payments required by those laws.
            (2) Exceptions.--(A)(i) No program established by a 
        law enacted on or before the date of enactment of the 
        Balanced Budget Act of 1997 with estimated current year 
        outlays greater than $50,000,000 shall be assumed to 
        expire in the budget year or the outyears. The scoring 
        of new programs with estimated outlays greater than 
        $50,000,000 a year shall be based on scoring by the 
        Committees on Budget or OMB, as applicable. OMB, CBO, 
        and the Budget Committees shall consult on the scoring 
        of such programs where there are differenes \1\ between 
        CBO and OMB.
---------------------------------------------------------------------------
    \1\ So in law. Probably should read ``differences''.
---------------------------------------------------------------------------
            (ii) On the expiration of the suspension of a 
        provision of law that is suspended under section 171 of 
        Public Law 104-127 and that authorizes a program with 
        estimated fiscal year outlays that are greater than 
        $50,000,000, for purposes of clause (i), the program 
        shall be assumed to continue to operate in the same 
        manner as the program operated immediately before the 
        expiration of the suspension.
            (B) The increase for veterans' compensation for a 
        fiscal year is assumed to be the same as that required 
        by law for veterans' pensions unless otherwise provided 
        by law enacted in that session.
            (C) Excise taxes dedicated to a trust fund, if 
        expiring, are assumed to be extended at current rates.
            (D) If any law expires before the budget year or 
        any outyear, then any program with estimated current 
        year outlays greater than $50,000,000 that operates 
        under that law shall be assumed to continue to operate 
        under that law as in effect immediately before its 
        expiration.
            (3) Hospital insurance trust fund.--Notwithstanding 
        any other provision of law, the receipts and 
        disbursements of the Hospital Insurance Trust Fund 
        shall be included in all calculations required by this 
        Act.
    (c) Discretionary Appropriations.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions regarding all amounts other than those 
covered by subsection (b):
            (1) Inflation of current-year appropriations.--
        Budgetary resources other than unobligated balances 
        shall be at the level provided for the budget year in 
        full-year appropriation Acts. If for any account a 
        full-year appropriation has not yet been enacted, 
        budgetary resources other than unobligated balances 
        shall be at the level available in the current year, 
        adjusted sequentially and cumulatively for expiring 
        housing contracts as specified in paragraph (2), for 
        social insurance administrative expenses as specified 
        in paragraph (3), to offset pay absorption and for pay 
        annualization as specified in paragraph (4), for 
        inflation as specified in paragraph (5), and to account 
        for changes required by law in the level of agency 
        payments for personnel benefits other than pay.
            (2) Expiring housing contracts.--New budget 
        authority to renew expiring multiyear subsidized 
        housing contracts shall be adjusted to reflect the 
        difference in the number of such contracts that are 
        scheduled to expire in that fiscal year and the number 
        expiring in the current year, with the per-contract 
        renewal cost equal to the average current-year cost of 
        renewal contracts.
            (3) Social insurance administrative expenses.--
        Budgetary resources for the administrative expenses of 
        the following trust funds shall be adjusted by the 
        percentage change in the beneficiary population from 
        the current year to that fiscal year: the Federal 
        Hospital Insurance Trust Fund, the Supplementary 
        Medical Insurance Trust Fund, the Unemployment Trust 
        Fund, and the railroad retirement account.
            (4) Pay annualization; offset to pay absorption.--
        Current-year new budget authority for Federal employees 
        shall be adjusted to reflect the full 12-month costs 
        (without absorption) of any pay adjustment that 
        occurred in that fiscal year.
            (5) Inflators.--The inflator used in paragraph (1) 
        to adjust budgetary resources relating to personnel 
        shall be the percent by which the average of the Bureau 
        of Labor Statistics Employment Cost Index (wages and 
        salaries, private industry workers) for that fiscal 
        year differs from such index for the current year. The 
        inflator used in paragraph (1) to adjust all other 
        budgetary resources shall be the percent by which the 
        average of the estimated gross domestic product chain-
        type price index for that fiscal year differs from the 
        average of such estimated index for the current year.
            (6) Current-year appropriations.--If, for any 
        account, a continuing appropriation is in effect for 
        less than the entire current year, then the current-
        year amount shall be assumed to equal the amount that 
        would be available if that continuing appropriation 
        covered the entire fiscal year. If law permits the 
        transfer of budget authority among budget accounts in 
        the current year, the current-year level for an account 
        shall reflect transfers accomplished by the submission 
        of, or assumed for the current year in, the President's 
        original budget for the budget year.
    (d) Up-to-Date Concepts.--In deriving the baseline for any 
budget year or outyear, current-year amounts shall be 
calculated using the concepts and definitions that are required 
for that budget year.
    (e) Asset Sales.--Amounts realized from the sale of an 
asset shall not be included in estimates under section 251, 
252, or 253 if that sale would result in a financial cost to 
the Federal Government as determined pursuant to scorekeeping 
guidelines.

 H4  deg.SEC. 258. [2 U.S.C. 907A] SUSPENSION IN THE EVENT OF 
                    WAR OR LOW GROWTH.

    (a) Procedures in the Event of a Low Growth Report.----
            (1) Trigger.--Whenever CBO issues a low-growth 
        report under section 254(j) \1\, the Majority Leader of 
        the House of Representatives may, and the Majority 
        Leader of the Senate shall, introduce a joint 
        resolution (in the form set forth in paragraph (2)) 
        declaring that the conditions specified in section 
        254(j) \1\ are met and suspending the relevant 
        provisions of this title, titles III and VI of the 
        Congressional Budget Act of 1974, and section 1103 of 
        title 31, United States Code.
---------------------------------------------------------------------------
    \1\ So in law. Probably should be section 254(i).
---------------------------------------------------------------------------
            (2) Form of joint resolution.----
                    (A) The matter after the resolving clause 
                in any joint resolution introduced pursuant to 
                paragraph (1) shall be as follows: ``That the 
                Congress declares that the conditions specified 
                in section 254(j) \1\ of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 are 
                met, and the implementation of the 
                Congressional Budget and Impoundment Control 
                Act of 1974, chapter 11 of title 31, United 
                States Code, and part C of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 are 
                modified as described in section 258(b) of the 
                Balanced Budget and Emergency Deficit Control 
                Act of 1985.''.
                    (B) The title of the joint resolution shall 
                be ``Joint resolution suspending certain 
                provisions of law pursuant to section 258(a)(2) 
                of the Balanced Budget and Emergency Deficit 
                Control Act of 1985.''; and the joint 
                resolution shall not contain any preamble.
            (3) Committee action.--Each joint resolution 
        introduced pursuant to paragraph (1) shall be referred 
        to the appropriate committees of the House of 
        Representatives or the Committee on the Budget of the 
        Senate, as the case may be; and such Committee shall 
        report the joint resolution to its House without 
        amendment on or before the fifth day on which such 
        House is in session after the date on which the joint 
        resolution is introduced. If the Committee fails to 
        report the joint resolution within the five-day period 
        referred to in the preceding sentence, it shall be 
        automatically discharged from further consideration of 
        the joint resolution, and the joint resolution shall be 
        placed on the appropriate calendar.
            (4) Consideration of joint resolution.----
                    (A) A vote on final passage of a joint 
                resolution reported to the Senate or discharged 
                pursuant to paragraph (3) shall be taken on or 
                before the close of the fifth calendar day of 
                session after the date on which the joint 
                resolution is reported or after the Committee 
                has been discharged from further consideration 
                of the joint resolution. If prior to the 
                passage by one House of a joint resolution of 
                that House, that House receives the same joint 
                resolution from the other House, then----
                            (i) the procedure in that House 
                        shall be the same as if no such joint 
                        resolution had been received from the 
                        other House, but
                            (ii) the vote on final passage 
                        shall be on the joint resolution of the 
                        other House.
                When the joint resolution is agreed to, the 
                Clerk of the House of Representatives (in the 
                case of a House joint resolution agreed to in 
                the House of Representatives) or the Secretary 
                of the Senate (in the case of a Senate joint 
                resolution agreed to in the Senate) shall cause 
                the joint resolution to be engrossed, 
                certified, and transmitted to the other House 
                of the Congress as soon as practicable.
                    (B)(i) In the Senate, a joint resolution 
                under this paragraph shall be privileged. It 
                shall not be in order to move to reconsider the 
                vote by which the motion is agreed to or 
                disagreed to.
                    (ii) Debate in the Senate on a joint 
                resolution under this paragraph, and all 
                debatable motions and appeals in connection 
                therewith, shall be limited to not more than 
                five hours. The time shall be equally divided 
                between, and controlled by, the majority leader 
                and the minority leader or their designees.
                    (iii) Debate in the Senate on any debatable 
                motion or appeal in connection with a joint 
                resolution under this paragraph shall be 
                limited to not more than one hour, to be 
                equally divided between, and controlled by, the 
                mover and the manager of the joint resolution, 
                except that in the event the manager of the 
                joint resolution is in favor of any such motion 
                or appeal, the time in opposition thereto shall 
                be controlled by the minority leader or his 
                designee.
                    (iv) A motion in the Senate to further 
                limit debate on a joint resolution under this 
                paragraph is not debatable. A motion to table 
                or to recommit a joint resolution under this 
                paragraph is not in order.
                    (C) No amendment to a joint resolution 
                considered under this paragraph shall be in 
                order in the Senate.
    (b) Suspension of Sequestration Procedures.--Upon the 
enactment of a declaration of war or a joint resolution 
described in subsection (a)----
            (1) the subsequent issuance of any sequestration 
        report or any sequestration order is precluded;
            (2) sections 302(f), 310(d), 311(a), and title VI 
        of the Congressional Budget Act of 1974 are suspended; 
        and
            (3) section 1103 of title 31, United States Code, 
        is suspended.
    (c) Restoration of Sequestration Procedures.----
            (1) In the event of a suspension of sequestration 
        procedures due to a declaration of war, then, effective 
        with the first fiscal year that begins in the session 
        after the state of war is concluded by Senate 
        ratification of the necessary treaties, the provisions 
        of subsection (b) triggered by that declaration of war 
        are no longer effective.
            (2) In the event of a suspension of sequestration 
        procedures due to the enactment of a joint resolution 
        described in subsection (a), then, effective with 
        regard to the first fiscal year beginning at least 12 
        months after the enactment of that resolution, the 
        provisions of subsection (b) triggered by that 
        resolution are no longer effective.

 H4  deg.SEC. 258A. [2 U.S.C. 907B] MODIFICATION OF 
                    PRESIDENTIAL ORDER.

    (a) Introduction of Joint Resolution.--At any time after 
the Director of OMB issues a final sequestration report under 
section 254 for a fiscal year, but before the close of the 
twentieth calendar day of the session of Congress beginning 
after the date of issuance of such report, the majority leader 
of either House of Congress may introduce a joint resolution 
which contains provisions directing the President to modify the 
most recent order issued under section 254 or provide an 
alternative to reduce the deficit for such fiscal year. After 
the introduction of the first such joint resolution in either 
House of Congress in any calendar year, then no other joint 
resolution introduced in such House in such calendar year shall 
be subject to the procedures set forth in this section.
    (b) Procedures for Consideration of Joint Resolutions.----
            (1) Referral to committee.--A joint resolution 
        introduced in the Senate under subsection (a) shall not 
        be referred to a committee of the Senate and shall be 
        placed on the calendar pending disposition of such 
        joint resolution in accordance with this subsection.
            (2) Consideration in the senate.--On or after the 
        third calendar day (excluding Saturdays, Sundays, and 
        legal holidays) beginning after a joint resolution is 
        introduced under subsection (a), notwithstanding any 
        rule or precedent of the Senate, including Rule XXII of 
        the Standing Rules of the Senate, it is in order (even 
        though a previous motion to the same effect has been 
        disagreed to) for any Member of the Senate to move to 
        proceed to the consideration of the joint resolution. 
        The motion is not in order after the eighth calendar 
        day (excluding Saturdays, Sundays, and legal holidays) 
        beginning after a joint resolution (to which the motion 
        applies) is introduced. The joint resolution is 
        privileged in the Senate. A motion to reconsider the 
        vote by which the motion is agreed to or disagreed to 
        shall not be in order. If a motion to proceed to the 
        consideration of the joint resolution is agreed to, the 
        Senate shall immediately proceed to consideration of 
        the joint resolution without intervening motion, order, 
        or other business, and the joint resolution shall 
        remain the unfinished business of the Senate until 
        disposed of.
            (3) Debate in the senate.----
                    (A) In the Senate, debate on a joint 
                resolution introduced under subsection (a), 
                amendments thereto, and all debatable motions 
                and appeals in connection therewith shall be 
                limited to not more than 10 hours, which shall 
                be divided equally between the majority leader 
                and the minority leader (or their designees).
                    (B) A motion to postpone, or a motion to 
                proceed to the consideration of other business 
                is not in order. A motion to reconsider the 
                vote by which the joint resolution is agreed to 
                or disagreed to is not in order, and a motion 
                to recommit the joint resolution is not in 
                order.
                    (C)(i) No amendment that is not germane to 
                the provisions of the joint resolution or to 
                the order issued under section 254 shall be in 
                order in the Senate. In the Senate, an 
                amendment, any amendment to an amendment, or 
                any debatable motion or appeal is debatable for 
                not to exceed 30 minutes to be equally divided 
                between, and controlled by, the mover and the 
                majority leader (or their designees), except 
                that in the event that the majority leader 
                favors the amendment, motion, or appeal, the 
                minority leader (or the minority leader's 
                designee) shall control the time in opposition 
                to the amendment, motion, or appeal.
                    (ii) In the Senate, an amendment that is 
                otherwise in order shall be in order 
                notwithstanding the fact that it amends the 
                joint resolution in more than one place or 
                amends language previously amended. It shall 
                not be in order in the Senate to vote on the 
                question of agreeing to such a joint resolution 
                or any amendment thereto unless the figures 
                then contained in such joint resolution or 
                amendment are mathematically consistent.
            (4) Vote on final passage.--Immediately following 
        the conclusion of the debate on a joint resolution 
        introduced under subsection (a), a single quorum call 
        at the conclusion of the debate if requested in 
        accordance with the rules of the Senate, and the 
        disposition of any pending amendments under paragraph 
        (3), the vote on final passage of the joint resolution 
        shall occur.
            (5) Appeals.--Appeals from the decisions of the 
        Chair shall be decided without debate.
            (6) Conference reports.--In the Senate, points of 
        order under titles III, IV, and VI of the Congressional 
        Budget Act of 1974 are applicable to a conference 
        report on the joint resolution or any amendments in 
        disagreement thereto.
            (7) Resolution from other house.--If, before the 
        passage by the Senate of a joint resolution of the 
        Senate introduced under subsection (a), the Senate 
        receives from the House of Representatives a joint 
        resolution introduced under subsection (a), then the 
        following procedures shall apply:
                    (A) The joint resolution of the House of 
                Representatives shall not be referred to a 
                committee and shall be placed on the calendar.
                    (B) With respect to a joint resolution 
                introduced under subsection (a) in the Senate--
                --
                            (i) the procedure in the Senate 
                        shall be the same as if no joint 
                        resolution had been received from the 
                        House; but
                            (ii)(I) the vote on final passage 
                        shall be on the joint resolution of the 
                        House if it is identical to the joint 
                        resolution then pending for passage in 
                        the Senate; or
                            (II) if the joint resolution from 
                        the House is not identical to the joint 
                        resolution then pending for passage in 
                        the Senate and the Senate then passes 
                        the Senate joint resolution, the Senate 
                        shall be considered to have passed the 
                        House joint resolution as amended by 
                        the text of the Senate joint 
                        resolution.
                    (C) Upon disposition of the joint 
                resolution received from the House, it shall no 
                longer be in order to consider the resolution 
                originated in the Senate.
            (8) Senate action on house resolution.--If the 
        Senate receives from the House of Representatives a 
        joint resolution introduced under subsection (a) after 
        the Senate has disposed of a Senate originated 
        resolution which is identical to the House passed joint 
        resolution, the action of the Senate with regard to the 
        disposition of the Senate originated joint resolution 
        shall be deemed to be the action of the Senate with 
        regard to the House originated joint resolution. If it 
        is not identical to the House passed joint resolution, 
        then the Senate shall be considered to have passed the 
        joint resolution of the House as amended by the text of 
        the Senate joint resolution.

 H4  deg.SEC. 258B. [2 U.S.C. 907C] FLEXIBILITY AMONG DEFENSE 
                    PROGRAMS, PROJECTS, AND ACTIVITIES.

    (a) Subject to subsections (b), (c), and (d), new budget 
authority and unobligated balances for any programs, projects, 
or activities within major functional category 050 (other than 
a military personnel account) may be further reduced beyond the 
amount specified in an order issued by the President under 
section 254 for such fiscal year. To the extent such additional 
reductions are made and result in additional outlay reductions, 
the President may provide for lesser reductions in new budget 
authority and unobligated balances for other programs, 
projects, or activities within major functional category 050 
for such fiscal year, but only to the extent that the resulting 
outlay increases do not exceed the additional outlay 
reductions, and no such program, project, or activity may be 
increased above the level actually made available by law in 
appropriation Acts (before taking sequestration into account). 
In making calculations under this subsection, the President 
shall use account outlay rates that are identical to those used 
in the report by the Director of OMB under section 254.
    (b) No actions taken by the President under subsection (a) 
for a fiscal year may result in a domestic base closure or 
realignment that would otherwise be subject to section 2687 of 
title 10, United States Code.
    (c) The President may not exercise the authority provided 
by this paragraph \1\ for a fiscal year unless----
---------------------------------------------------------------------------
    \1\ So in law. Probably should be ``section''.
---------------------------------------------------------------------------
            (1) the President submits a single report to 
        Congress specifying, for each account, the detailed 
        changes proposed to be made for such fiscal year 
        pursuant to this section;
            (2) that report is submitted within 5 calendar days 
        of the start of the next session of Congress; and
            (3) a joint resolution affirming or modifying the 
        changes proposed by the President pursuant to this 
        paragraph \1\ becomes law.
    (d) Within 5 calendar days of session after the President 
submits a report to Congress under subsection (c)(1) for a 
fiscal year, the majority leader of each House of Congress 
shall (by request) introduce a joint resolution which contains 
provisions affirming the changes proposed by the President 
pursuant to this paragraph. \1\
    (e)(1) The matter after the resolving clause in any joint 
resolution introduced pursuant to subsection (d) shall be as 
follows: ``That the report of the President as submitted on 
[Insert Date] under section 258B is hereby approved.''.
    (2) The title of the joint resolution shall be ``Joint 
resolution approving the report of the President submitted 
under section 258B of the Balanced Budget and Emergency Deficit 
Control Act of 1985.''.
    (3) Such joint resolution shall not contain any preamble.
    (f)(1) A joint resolution introduced in the Senate under 
subsection (d) shall be referred to the Committee on 
Appropriations, and if not reported within 5 calendar days 
(excluding Saturdays, Sundays, and legal holidays) from the 
date of introduction shall be considered as having been 
discharged therefrom and shall be placed on the appropriate 
calendar pending disposition of such joint resolution in 
accordance with this subsection. In the Senate, no amendment 
proposed in the Committee on Appropriations shall be in order 
other than an amendment (in the nature of a substitute) that is 
germane or relevant to the provisions of the joint resolution 
or to the order issued under section 254. For purposes of this 
paragraph, an amendment shall be considered to be relevant if 
it relates to function 050 (national defense).
    (2) On or after the third calendar day (excluding 
Saturdays, Sundays, and legal holidays) beginning after a joint 
resolution is placed on the Senate calendar, notwithstanding 
any rule or precedent of the Senate, including Rule XXII of the 
Standing Rules of the Senate, it is in order (even though a 
previous motion to the same effect has been disagreed to) for 
any Member of the Senate to move to proceed to the 
consideration of the joint resolution. The motion is not in 
order after the eighth calendar day (excluding Saturdays, 
Sundays, and legal holidays) beginning after such joint 
resolution is placed on the appropriate calendar. The motion is 
not debatable. The joint resolution is privileged in the 
Senate. A motion to reconsider the vote by which the motion is 
agreed to or disagreed to shall not be in order. If a motion to 
proceed to the consideration of the joint resolution is agreed 
to, the Senate shall immediately proceed to consideration of 
the joint resolution without intervening motion, order, or 
other business, and the joint resolution shall remain the 
unfinished business of the Senate until disposed of.
    (g)(1) In the Senate, debate on a joint resolution 
introduced under subsection (d), amendments thereto, and all 
debatable motions and appeals in connection therewith shall be 
limited to not more than 10 hours, which shall be divided 
equally between the majority leader and the minority leader (or 
their designees).
    (2) A motion to postpone, or a motion to proceed to the 
consideration of other business is not in order. A motion to 
reconsider the vote by which the joint resolution is agreed to 
or disagreed to is not in order. In the Senate, a motion to 
recommit the joint resolution is not in order.
    (h)(1) No amendment that is not germane or relevant to the 
provisions of the joint resolution or to the order issued under 
section 254 shall be in order in the Senate. For purposes of 
this paragraph, an amendment shall be considered to be relevant 
if it relates to function 050 (national defense). In the 
Senate, an amendment, any amendment to an amendment, or any 
debatable motion or appeal is debatable for not to exceed 30 
minutes to be equally divided between, and controlled by, the 
mover and the majority leader (or their designees), except that 
in the event that the majority leader favors the amendment, 
motion, or appeal, the minority leader (or the minority 
leader's designee) shall control the time in opposition to the 
amendment, motion, or appeal.
    (2) In the Senate, an amendment that is otherwise in order 
shall be in order notwithstanding the fact that it amends the 
joint resolution in more than one place or amends language 
previously amended, so long as the amendment makes or maintains 
mathematical consistency. It shall not be in order in the 
Senate to vote on the question of agreeing to such a joint 
resolution or any amendment thereto unless the figures then 
contained in such joint resolution or amendment are 
mathematically consistent.
    (3) It shall not be in order in the Senate to consider any 
amendment to any joint resolution introduced under subsection 
(d) or any conference report thereon if such amendment or 
conference report would have the effect of decreasing any 
specific budget outlay reductions below the level of such 
outlay reductions provided in such joint resolution unless such 
amendment or conference report makes a reduction in other 
specific budget outlays at least equivalent to any increase in 
outlays provided by such amendment or conference report.
    (4) For purposes of the application of paragraph (3), the 
level of outlays and specific budget outlay reductions provided 
in an amendment shall be determined on the basis of estimates 
made by the Committee on the Budget of the Senate.
    (i) Immediately following the conclusion of the debate on a 
joint resolution introduced under subsection (d), a single 
quorum call at the conclusion of the debate if requested in 
accordance with the rules of the Senate, and the disposition of 
any pending amendments under subsection (h), the vote on final 
passage of the joint resolution shall occur.
    (j) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure 
relating to a joint resolution described in subsection (d) 
shall be decided without debate.
    (k) In the Senate, points of order under titles III and IV 
of the Congressional Budget Act of 1974 (including points of 
order under sections 302(c), 303(a), 306, and 401(b)(1)) are 
applicable to a conference report on the joint resolution or 
any amendments in disagreement thereto.
    (l) If, before the passage by the Senate of a joint 
resolution of the Senate introduced under subsection (d), the 
Senate receives from the House of Representatives a joint 
resolution introduced under subsection (d), then the following 
procedures shall apply:
            (1) The joint resolution of the House of 
        Representatives shall not be referred to a committee.
            (2) With respect to a joint resolution introduced 
        under subsection (d) in the Senate----
                    (A) the procedure in the Senate shall be 
                the same as if no joint resolution had been 
                received from the House; but
                    (B)(i) the vote on final passage shall be 
                on the joint resolution of the House if it is 
                identical to the joint resolution then pending 
                for passage in the Senate; or
                    (ii) if the joint resolution from the House 
                is not identical to the joint resolution then 
                pending for passage in the Senate and the 
                Senate then passes the Senate joint resolution, 
                the Senate shall be considered to have passed 
                the House joint resolution as amended by the 
                text of the Senate joint resolution.
    (3) Upon disposition of the joint resolution received from 
the House, it shall no longer be in order to consider the joint 
resolution originated in the Senate.
    (m) If the Senate receives from the House of 
Representatives a joint resolution introduced under subsection 
(d) after the Senate has disposed of a Senate originated joint 
resolution which is identical to the House passed joint 
resolution, the action of the Senate with regard to the 
disposition of the Senate originated joint resolution shall be 
deemed to be the action of the Senate with regard to the House 
originated joint resolution. If it is not identical to the 
House passed joint resolution, then the Senate shall be 
considered to have passed the joint resolution of the House as 
amended by the text of the Senate joint resolution.

 H4  deg.SEC. 258C. [2 U.S.C. 907D] SPECIAL RECONCILIATION 
                    PROCESS.

    (a) Reporting of Resolutions and Reconciliation Bills and 
Resolutions, in the Senate.----
            (1) Committee alternatives to presidential order.--
        After the submission of an OMB sequestration update 
        report under section 254 that envisions a sequestration 
        under section 252 or 253, each standing committee of 
        the Senate may, not later than October 10, submit to 
        the Committee on the Budget of the Senate information 
        of the type described in section 301(d) of the 
        Congressional Budget Act of 1974 with respect to 
        alternatives to the order envisioned by such report 
        insofar as such order affects laws within the 
        jurisdiction of the committee.
            (2) Initial budget committee action.--After the 
        submission of such a report, the Committee on the 
        Budget of the Senate may, not later than October 15, 
        report to the Senate a resolution. The resolution may 
        affirm the impact of the order envisioned by such 
        report, in whole or in part. To the extent that any 
        part is not affirmed, the resolution shall state which 
        parts are not affirmed and shall contain instructions 
        to committees of the Senate of the type referred to in 
        section 310(a) of the Congressional Budget Act of 1974, 
        sufficient to achieve at least the total level of 
        deficit reduction contained in those sections which are 
        not affirmed.
            (3) Response of committees.--Committees instructed 
        pursuant to paragraph (2), or affected thereby, shall 
        submit their responses to the Budget Committee no later 
        than 10 days after the resolution referred to in 
        paragraph (2) is agreed to, except that if only one 
        such Committee is so instructed such Committee shall, 
        by the same date, report to the Senate a reconciliation 
        bill or reconciliation resolution containing its 
        recommendations in response to such instructions. A 
        committee shall be considered to have complied with all 
        instructions to it pursuant to a resolution adopted 
        under paragraph (2) if it has made recommendations with 
        respect to matters within its jurisdiction which would 
        result in a reduction in the deficit at least equal to 
        the total reduction directed by such instructions.
            (4) Budget committee action.--Upon receipt of the 
        recommendations received in response to a resolution 
        referred to in paragraph (2), the Budget Committee 
        shall report to the Senate a reconciliation bill or 
        reconciliation resolution, or both, carrying out all 
        such recommendations without any substantive revisions. 
        In the event that a committee instructed in a 
        resolution referred to in paragraph (2) fails to submit 
        any recommendation (or, when only one committee is 
        instructed, fails to report a reconciliation bill or 
        resolution) in response to such instructions, the 
        Budget Committee shall include in the reconciliation 
        bill or reconciliation resolution reported pursuant to 
        this subparagraph legislative language within the 
        jurisdiction of the noncomplying committee to achieve 
        the amount of deficit reduction directed in such 
        instructions.
            (5) Point of order.--It shall not be in order in 
        the Senate to consider any reconciliation bill or 
        reconciliation resolution reported under paragraph (4) 
        with respect to a fiscal year, any amendment thereto, 
        or any conference report thereon if----
                    (A) the enactment of such bill or 
                resolution as reported;
                    (B) the adoption and enactment of such 
                amendment; or
                    (C) the enactment of such bill or 
                resolution in the form recommended in such 
                conference report,
        would cause the amount of the deficit for such fiscal 
        year to exceed the maximum deficit amount for such 
        fiscal year, unless the low-growth report submitted 
        under section 254 projects negative real economic 
        growth for such fiscal year, or for each of any two 
        consecutive quarters during such fiscal year.
            (6) Treatment of certain amendments.--In the 
        Senate, an amendment which adds to a resolution 
        reported under paragraph (2) an instruction of the type 
        referred to in such paragraph shall be in order during 
        the consideration of such resolution if such amendment 
        would be in order but for the fact that it would be 
        held to be non-germane on the basis that the 
        instruction constitutes new matter.
            (7) Definition.--For purposes of paragraphs (1), 
        (2), and (3), the term ``day'' shall mean any calendar 
        day on which the Senate is in session.
    (b) Procedures.----
            (1) In general.--Except as provided in paragraph 
        (2), in the Senate the provisions of sections 305 and 
        310 of the Congressional Budget Act of 1974 for the 
        consideration of concurrent resolutions on the budget 
        and conference reports thereon shall also apply to the 
        consideration of resolutions, and reconciliation bills 
        and reconciliation resolutions reported under this 
        paragraph and conference reports thereon.
            (2) Limit on debate.--Debate in the Senate on any 
        resolution reported pursuant to subsection (a)(2), and 
        all amendments thereto and debatable motions and 
        appeals in connection therewith, shall be limited to 10 
        hours.
            (3) Limitation on amendments.--Section 310(d)(2) of 
        the Congressional Budget Act shall apply to 
        reconciliation bills and reconciliation resolutions 
        reported under this subsection.
            (4) Bills and resolutions received from the 
        house.--Any bill or resolution received in the Senate 
        from the House, which is a companion to a 
        reconciliation bill or reconciliation resolution of the 
        Senate for the purposes of this subsection, shall be 
        considered in the Senate pursuant to the provisions of 
        this subsection.
            (5) Definition.--For purposes of this subsection, 
        the term ``resolution'' means a simple, joint, or 
        concurrent resolution.
          * * * * * * *

              PART E--MISCELLANEOUS AND RELATED PROVISIONS

          * * * * * * *

SEC. 274. [2 U.S.C. 922] JUDICIAL REVIEW.

    (a) Expedited Review.----
            (1) Any Member of Congress may bring an action, in 
        the United States District Court for the District of 
        Columbia, for declaratory judgment and injunctive 
        relief on the ground that any order that might be 
        issued pursuant to section 254 violates the 
        Constitution.
            (2) Any Member of Congress, or any other person 
        adversely affected by any action taken under this 
        title, may bring an action, in the United States 
        District Court for the District of Columbia, for 
        declaratory judgment and injunctive relief concerning 
        the constitutionality of this title.
            (3) Any Member of Congress may bring an action, in 
        the United States District Court for the District of 
        Columbia, for declaratory and injunctive relief on the 
        ground that the terms of an order issued under section 
        254 do not comply with the requirements of this title.
            (4) A copy of any complaint in an action brought 
        under paragraph (1), (2), or (3) shall be promptly 
        delivered to the Secretary of the Senate and the Clerk 
        of the House of Representatives, and each House of 
        Congress shall have the right to intervene in such 
        action.
            (5) Any action brought under paragraph (1), (2), or 
        (3) shall be heard and determined by a three-judge 
        court in accordance with section 2284 of title 28, 
        United States Code.
Nothing in this section or in any other law shall infringe upon 
the right of the House of Representatives to intervene in an 
action brought under paragraph (1), (2), or (3) without the 
necessity of adopting a resolution to authorize such 
intervention.
    (b) Appeal to Supreme Court.--Notwithstanding any other 
provision of law, any order of the United States District Court 
for the District of Columbia which is issued pursuant to an 
action brought under paragraph (1), (2), or (3) of subsection 
(a) shall be reviewable by appeal directly to the Supreme Court 
of the United States. Any such appeal shall be taken by a 
notice of appeal filed within 10 days after such order is 
entered; and the jurisdictional statement shall be filed within 
30 days after such order is entered. No stay of an order issued 
pursuant to an action brought under paragraph (1), (2), or (3) 
of subsection (a) shall be issued by a single Justice of the 
Supreme Court.
    (c) Expedited Consideration.--It shall be the duty of the 
District Court for the District of Columbia and the Supreme 
Court of the United States to advance on the docket and to 
expedite to the greatest possible extent the disposition of any 
matter brought under subsection (a).
    (d) Noncompliance With Sequestration Procedures.----
            (1) If it is finally determined by a court of 
        competent jurisdiction that an order issued by the 
        President under section 254 for any fiscal year----
                    (A) does not reduce automatic spending 
                increases under any program specified in 
                section 256(a) if such increases are required 
                to be reduced by part C of this title (or 
                reduces such increases by a greater extent than 
                is so required), or
                    (B) does not sequester the amount of 
                budgetary resources which is required to be 
                sequestered by such part (or sequesters more 
                than that amount) with respect to any program, 
                project, activity, or account,
        the President shall, within 20 days after such 
        determination is made, revise the order in accordance 
        with such determination.
            (2) If the order issued by the President under 
        section 254 for any fiscal year----
                    (A) does not reduce any automatic spending 
                increase to the extent that such increase is 
                required to be reduced by part C of this title,
                    (B) does not sequester any amount of new 
                budget authority, new loan guarantee 
                commitments, new direct loan obligations, or 
                spending authority which is required to be 
                sequestered by such part, or
                    (C) does not reduce any obligation 
                limitation by the amount by which such 
                limitation is required to be reduced under such 
                part,
        on the claim or defense that the constitutional powers 
        of the President prevent such sequestration or 
        reduction or permit the avoidance of such sequestration 
        or reduction, and such claim or defense is finally 
        determined by the Supreme Court of the United States to 
        be valid, then the entire order issued pursuant to 
        section 254 for such fiscal year shall be null and 
        void.
    (e) Timing of Relief.--No order of any court granting 
declaratory or injunctive relief from the order of the 
President issued under section 254, including but not limited 
to relief permitting or requiring the expenditure of funds 
sequestered by such order, shall take effect during the 
pendency of the action before such court, during the time 
appeal may be taken, or, if appeal is taken, during the period 
before the court to which such appeal is taken has entered its 
final order disposing of such action.
    (f) Preservation of Other Rights.--The rights created by 
this section are in addition to the rights of any person under 
law, subject to subsection (e).
    (g) Economic Data, Assumptions, and Methodologies.--The 
economic data and economic assumptions used by the Director of 
OMB in computing the figures specified in any report issued by 
the Director of OMB under section 254, shall not be subject to 
review in any judicial or administrative proceeding.

 SEC. 275. [2 U.S.C. 900 NOTE] EFFECTIVE DATES.

    (a) In General.----
            (1) Except as provided in paragraph (2) and in 
        subsections (b) and (c), this title and the amendments 
        made by this title shall become effective on the date 
        of the enactment of this title and shall apply with 
        respect to fiscal years beginning after September 30, 
        1985.
            (2)(A) The amendment made by section 201(a)(2), and 
        the amendment made by section 201(b) insofar as it 
        relates to subsections (c), (f), and (g) of section 302 
        of the Congressional Budget Act of 1974 and to 
        subsections (c), (d), and (g) of section 310 of that 
        Act), shall become effective April 15, 1986.
            (B) The amendment made by section 212 shall become 
        effective February 1, 1986.
    (b) Expiration.--Sections 251, 253, 258B, and 271(b) of 
this Act, and sections 1105(f) and 1106(c) of title 31, United 
States Code, shall expire September 30, 2002. The remaining 
sections of part C of this title shall expire September 30, 
2006.
    (c) OASDI Trust Funds.--The amendments made by part D shall 
apply as provided in such part.END OF STATUTE deg.
                       LINE ITEM VETO ACT OF 1996

                                 NOTE:

                  Constitutionality of Line Item Veto

    The United States Supreme Court, in Clinton v. City of New 
York, U.S. Dist. Col. 1998, 118 S.Ct. 2091, 141 L.Ed.2d 393, 
found that the Line Item Veto Act of 1996, Pub.L. 104-130, 
April 9, 1996, 110 Stat. 1200, which is part C of title X of 
the Congressional Budget and Impoundment Control Act of 1974, 
was unconstitutional as a violation of the Presentment Clause 
of the United States Constitution (Art. I, Sec. 7, cl. 2).

                         Part C--Line Item Veto

                        line item veto authority
    Sec. 1021. [2 U.S.C. 691] (a) In General.--Notwithstanding 
the provisions of parts A and B, and subject to the provisions 
of this part, the President may, with respect to any bill or 
joint resolution that has been signed into law pursuant to 
Article I, section 7, of the Constitution of the United States, 
cancel in whole----
            (1) any dollar amount of discretionary budget 
        authority;
            (2) any item of new direct spending; or
            (3) any limited tax benefit;
if the President----
            (A) determines that such cancellation will----
                    (i) reduce the Federal budget deficit;
                    (ii) not impair any essential Government 
                functions; and
                    (iii) not harm the national interest; and
            (B) notifies the Congress of such cancellation by 
        transmitting a special message, in accordance with 
        section 1022, within five calendar days (excluding 
        Sundays) after the enactment of the law providing the 
        dollar amount of discretionary budget authority, item 
        of new direct spending, or limited tax benefit that was 
        canceled.
    (b) Identification of Cancellations.--In identifying dollar 
amounts of discretionary budget authority, items of new direct 
spending, and limited tax benefits for cancellation, the 
President shall----
            (1) consider the legislative history, construction, 
        and purposes of the law which contains such dollar 
        amounts, items, or benefits;
            (2) consider any specific sources of information 
        referenced in such law or, in the absence of specific 
        sources of information, the best available information; 
        and
            (3) use the definitions contained in section 1026 
        in applying this part to the specific provisions of 
        such law.
    (c) Exception for Disapproval Bills.--The authority granted 
by subsection (a) shall not apply to any dollar amount of 
discretionary budget authority, item of new direct spending, or 
limited tax benefit contained in any law that is a disapproval 
bill as defined in section 1026.
                            special messages
    Sec. 1022. [2 U.S.C. 691a] (a) In General.--For each law 
from which a cancellation has been made under this part, the 
President shall transmit a single special message to the 
Congress.
    (b) Contents.----
            (1) The special message shall specify----
                    (A) the dollar amount of discretionary 
                budget authority, item of new direct spending, 
                or limited tax benefit which has been canceled, 
                and provide a corresponding reference number 
                for each cancellation;
                    (B) the determinations required under 
                section 1021(a), together with any supporting 
                material;
                    (C) the reasons for the cancellation;
                    (D) to the maximum extent practicable, the 
                estimated fiscal, economic, and budgetary 
                effect of the cancellation;
                    (E) all facts, circumstances and 
                considerations relating to or bearing upon the 
                cancellation, and to the maximum extent 
                practicable, the estimated effect of the 
                cancellation upon the objects, purposes and 
                programs for which the canceled authority was 
                provided; and
                    (F) include the adjustments that will be 
                made pursuant to section 1024 to the 
                discretionary spending limits under section 
                251(c) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 and an evaluation 
                of the effects of those adjustments upon the 
                sequestration procedures of section 251 of the 
                Balanced Budget and Emergency Deficit Control 
                Act of 1985.
            (2) In the case of a cancellation of any dollar 
        amount of discretionary budget authority or item of new 
        direct spending, the special message shall also 
        include, if applicable----
                    (A) any account, department, or 
                establishment of the Government for which such 
                budget authority was to have been available for 
                obligation and the specific project or 
                governmental functions involved;
                    (B) the specific States and congressional 
                districts, if any, affected by the 
                cancellation; and
                    (C) the total number of cancellations 
                imposed during the current session of Congress 
                on States and congressional districts 
                identified in subparagraph (B).
    (c) Transmission of Special Messages to House and Senate.--
--
            (1) The President shall transmit to the Congress 
        each special message under this part within five 
        calendar days (excluding Sundays) after enactment of 
        the law to which the cancellation applies. Each special 
        message shall be transmitted to the House of 
        Representatives and the Senate on the same calendar 
        day. Such special message shall be delivered to the 
        Clerk of the House of Representatives if the House is 
        not in session, and to the Secretary of the Senate if 
        the Senate is not in session.
            (2) Any special message transmitted under this part 
        shall be printed in the first issue of the Federal 
        Register published after such transmittal.
               cancellation effective unless disapproved
    Sec. 1023. [2 U.S.C. 691b] (a) In General.--The 
cancellation of any dollar amount of discretionary budget 
authority, item of new direct spending, or limited tax benefit 
shall take effect upon receipt in the House of Representatives 
and the Senate of the special message notifying the Congress of 
the cancellation. If a disapproval bill for such special 
message is enacted into law, then all cancellations disapproved 
in that law shall be null and void and any such dollar amount 
of discretionary budget authority, item of new direct spending, 
or limited tax benefit shall be effective as of the original 
date provided in the law to which the cancellation applied.
    (b) Commensurate Reductions in Discretionary Budget 
Authority.--Upon the cancellation of a dollar amount of 
discretionary budget authority under subsection (a), the total 
appropriation for each relevant account of which that dollar 
amount is a part shall be simultaneously reduced by the dollar 
amount of that cancellation.
                           deficit reduction
    Sec. 1024. [2 U.S.C. 691c] (a) In General.----
            (1) Discretionary budget authority.--OMB shall, for 
        each dollar amount of discretionary budget authority 
        and for each item of new direct spending canceled from 
        an appropriation law under section 1021(a)----
                    (A) reflect the reduction that results from 
                such cancellation in the estimates required by 
                section 251(a)(7) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 in 
                accordance with that Act, including an estimate 
                of the reduction of the budget authority and 
                the reduction in outlays flowing from such 
                reduction of budget authority for each outyear; 
                and
                    (B) include a reduction to the 
                discretionary spending limits for budget 
                authority and outlays in accordance with the 
                Balanced Budget and Emergency Deficit Control 
                Act of 1985 for each applicable fiscal year set 
                forth in section 251(c) of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 by 
                amounts equal to the amounts for each fiscal 
                year estimated pursuant to subparagraph (A).
            (2) Direct spending and limited tax benefits.--(A) 
        OMB shall, for each item of new direct spending or 
        limited tax benefit canceled from a law under section 
        1021(a), estimate the deficit decrease caused by the 
        cancellation of such item or benefit in that law and 
        include such estimate as a separate entry in the report 
        prepared pursuant to section 252(d) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
            (B) OMB shall not include any change in the deficit 
        resulting from a cancellation of any item of new direct 
        spending or limited tax benefit, or the enactment of a 
        disapproval bill for any such cancellation, under this 
        part in the estimates and reports required by sections 
        252(b) and 254 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.
    (b) Adjustments to Spending Limits.--After ten calendar 
days (excluding Sundays) after the expiration of the time 
period in section 1025(b)(1) for expedited congressional 
consideration of a disapproval bill for a special message 
containing a cancellation of discretionary budget authority, 
OMB shall make the reduction included in subsection (a)(1)(B) 
as part of the next sequester report required by section 254 of 
the Balanced Budget and Emergency Deficit Control Act of 1985.
    (c) Exception.--Subsection (b) shall not apply to a 
cancellation if a disapproval bill or other law that 
disapproves that cancellation is enacted into law prior to 10 
calendar days (excluding Sundays) after the expiration of the 
time period set forth in section 1025(b)(1).
    (d) Congressional Budget Office Estimates.--As soon as 
practicable after the President makes a cancellation from a law 
under section 1021(a), the Director of the Congressional Budget 
Office shall provide the Committees on the Budget of the House 
of Representatives and the Senate with an estimate of the 
reduction of the budget authority and the reduction in outlays 
flowing from such reduction of budget authority for each 
outyear.
       expedited congressional consideration of disapproval bills
    Sec. 1025. [2 U.S.C. 691d] (a) Receipt and Referral of 
Special Message.--Each special message transmitted under this 
part shall be referred to the Committee on the Budget and the 
appropriate committee or committees of the Senate and the 
Committee on the Budget and the appropriate committee or 
committees of the House of Representatives. Each such message 
shall be printed as a document of the House of Representatives.
    (b) Time Period for Expedited Procedures.----
            (1) There shall be a congressional review period of 
        30 calendar days of session, beginning on the first 
        calendar day of session after the date on which the 
        special message is received in the House of 
        Representatives and the Senate, during which the 
        procedures contained in this section shall apply to 
        both Houses of Congress.
            (2) In the House of Representatives the procedures 
        set forth in this section shall not apply after the end 
        of the period described in paragraph (1).
            (3) If Congress adjourns at the end of a Congress 
        prior to the expiration of the period described in 
        paragraph (1) and a disapproval bill was then pending 
        in either House of Congress or a committee thereof 
        (including a conference committee of the two Houses of 
        Congress), or was pending before the President, a 
        disapproval bill for the same special message may be 
        introduced within the first five calendar days of 
        session of the next Congress and shall be treated as a 
        disapproval bill under this part, and the time period 
        described in paragraph (1) shall commence on the day of 
        introduction of that disapproval bill.
    (c) Introduction of Disapproval Bills.--(1) In order for a 
disapproval bill to be considered under the procedures set 
forth in this section, the bill must meet the definition of a 
disapproval bill and must be introduced no later than the fifth 
calendar day of session following the beginning of the period 
described in subsection (b)(1).
    (2) In the case of a disapproval bill introduced in the 
House of Representatives, such bill shall include in the first 
blank space referred to in section 1026(6)(C) a list of the 
reference numbers for all cancellations made by the President 
in the special message to which such disapproval bill relates.
    (d) Consideration in the House of Representatives.--(1) Any 
committee of the House of Representatives to which a 
disapproval bill is referred shall report it without amendment, 
and with or without recommendation, not later than the seventh 
calendar day of session after the date of its introduction. If 
any committee fails to report the bill within that period, it 
is in order to move that the House discharge the committee from 
further consideration of the bill, except that such a motion 
may not be made after the committee has reported a disapproval 
bill with respect to the same special message. A motion to 
discharge may be made only by a Member favoring the bill (but 
only at a time or place designated by the Speaker in the 
legislative schedule of the day after the calendar day on which 
the Member offering the motion announces to the House his 
intention to do so and the form of the motion). The motion is 
highly privileged. Debate thereon shall be limited to not more 
than one hour, the time to be divided in the House equally 
between a proponent and an opponent. The previous question 
shall be considered as ordered on the motion to its adoption 
without intervening motion. A motion to reconsider the vote by 
which the motion is agreed to or disagreed to shall not be in 
order.
    (2) After a disapproval bill is reported or a committee has 
been discharged from further consideration, it is in order to 
move that the House resolve into the Committee of the Whole 
House on the State of the Union for consideration of the bill. 
If reported and the report has been available for at least one 
calendar day, all points of order against the bill and against 
consideration of the bill are waived. If discharged, all points 
of order against the bill and against consideration of the bill 
are waived. The motion is highly privileged. A motion to 
reconsider the vote by which the motion is agreed to or 
disagreed to shall not be in order. During consideration of the 
bill in the Committee of the Whole, the first reading of the 
bill shall be dispensed with. General debate shall proceed, 
shall be confined to the bill, and shall not exceed one hour 
equally divided and controlled by a proponent and an opponent 
of the bill. The bill shall be considered as read for amendment 
under the five-minute rule. Only one motion to rise shall be in 
order, except if offered by the manager. No amendment to the 
bill is in order, except any Member if supported by 49 other 
Members (a quorum being present) may offer an amendment 
striking the reference number or numbers of a cancellation or 
cancellations from the bill. Consideration of the bill for 
amendment shall not exceed one hour excluding time for recorded 
votes and quorum calls. No amendment shall be subject to 
further amendment, except pro forma amendments for the purposes 
of debate only. At the conclusion of the consideration of the 
bill for amendment, the Committee shall rise and report the 
bill to the House with such amendments as may have been 
adopted. The previous question shall be considered as ordered 
on the bill and amendments thereto to final passage without 
intervening motion. A motion to reconsider the vote on passage 
of the bill shall not be in order.
    (3) Appeals from decisions of the Chair regarding 
application of the rules of the House of Representatives to the 
procedure relating to a disapproval bill shall be decided 
without debate.
    (4) It shall not be in order to consider under this 
subsection more than one disapproval bill for the same special 
message except for consideration of a similar Senate bill 
(unless the House has already rejected a disapproval bill for 
the same special message) or more than one motion to discharge 
described in paragraph (1) with respect to a disapproval bill 
for that special message.
    (e) Consideration in the Senate.----
            (1) Referral and reporting.--Any disapproval bill 
        introduced in the Senate shall be referred to the 
        appropriate committee or committees. A committee to 
        which a disapproval bill has been referred shall report 
        the bill not later than the seventh day of session 
        following the date of introduction of that bill. If any 
        committee fails to report the bill within that period, 
        that committee shall be automatically discharged from 
        further consideration of the bill and the bill shall be 
        placed on the Calendar.
            (2) Disapproval bill from house.--When the Senate 
        receives from the House of Representatives a 
        disapproval bill, such bill shall not be referred to 
        committee and shall be placed on the Calendar.
            (3) Consideration of single disapproval bill.--
        After the Senate has proceeded to the consideration of 
        a disapproval bill for a special message, then no other 
        disapproval bill originating in that same House 
        relating to that same message shall be subject to the 
        procedures set forth in this subsection.
            (4) Amendments.----
                    (A) Amendments in order.--The only 
                amendments in order to a disapproval bill are--
                --
                            (i) an amendment that strikes the 
                        reference number of a cancellation from 
                        the disapproval bill; and
                            (ii) an amendment that only inserts 
                        the reference number of a cancellation 
                        included in the special message to 
                        which the disapproval bill relates that 
                        is not already contained in such bill.
                    (B) Waiver or appeal.--An affirmative vote 
                of three-fifths of the Senators, duly chosen 
                and sworn, shall be required in the Senate----
                            (i) to waive or suspend this 
                        paragraph; or
                            (ii) to sustain an appeal of the 
                        ruling of the Chair on a point of order 
                        raised under this paragraph.
            (5) Motion nondebatable.--A motion to proceed to 
        consideration of a disapproval bill under this 
        subsection shall not be debatable. It shall not be in 
        order to move to reconsider the vote by which the 
        motion to proceed was adopted or rejected, although 
        subsequent motions to proceed may be made under this 
        paragraph.
            (6) Limit on consideration.--(A) After no more than 
        10 hours of consideration of a disapproval bill, the 
        Senate shall proceed, without intervening action or 
        debate (except as permitted under paragraph (9)), to 
        vote on the final disposition thereof to the exclusion 
        of all amendments not then pending and to the exclusion 
        of all motions, except a motion to reconsider or to 
        table.
            (B) A single motion to extend the time for 
        consideration under subparagraph (A) for no more than 
        an additional five hours is in order prior to the 
        expiration of such time and shall be decided without 
        debate.
            (C) The time for debate on the disapproval bill 
        shall be equally divided between the Majority Leader 
        and the Minority Leader or their designees.
            (7) Debate on amendments.--Debate on any amendment 
        to a disapproval bill shall be limited to one hour, 
        equally divided and controlled by the Senator proposing 
        the amendment and the majority manager, unless the 
        majority manager is in favor of the amendment, in which 
        case the minority manager shall be in control of the 
        time in opposition.
            (8) No motion to recommit.--A motion to recommit a 
        disapproval bill shall not be in order.
            (9) Disposition of senate disapproval bill.--If the 
        Senate has read for the third time a disapproval bill 
        that originated in the Senate, then it shall be in 
        order at any time thereafter to move to proceed to the 
        consideration of a disapproval bill for the same 
        special message received from the House of 
        Representatives and placed on the Calendar pursuant to 
        paragraph (2), strike all after the enacting clause, 
        substitute the text of the Senate disapproval bill, 
        agree to the Senate amendment, and vote on final 
        disposition of the House disapproval bill, all without 
        any intervening action or debate.
            (10) Consideration of house message.--Consideration 
        in the Senate of all motions, amendments, or appeals 
        necessary to dispose of a message from the House of 
        Representatives on a disapproval bill shall be limited 
        to not more than four hours. Debate on each motion or 
        amendment shall be limited to 30 minutes. Debate on any 
        appeal or point of order that is submitted in 
        connection with the disposition of the House message 
        shall be limited to 20 minutes. Any time for debate 
        shall be equally divided and controlled by the 
        proponent and the majority manager, unless the majority 
        manager is a proponent of the motion, amendment, 
        appeal, or point of order, in which case the minority 
        manager shall be in control of the time in opposition.
    (f) Consideration in Conference.----
            (1) Convening of conference.--In the case of 
        disagreement between the two Houses of Congress with 
        respect to a disapproval bill passed by both Houses, 
        conferees should be promptly appointed and a conference 
        promptly convened, if necessary.
            (2) House consideration.--(A) Notwithstanding any 
        other rule of the House of Representatives, it shall be 
        in order to consider the report of a committee of 
        conference relating to a disapproval bill provided such 
        report has been available for one calendar day 
        (excluding Saturdays, Sundays, or legal holidays, 
        unless the House is in session on such a day) and the 
        accompanying statement shall have been filed in the 
        House.
            (B) Debate in the House of Representatives on the 
        conference report and any amendments in disagreement on 
        any disapproval bill shall each be limited to not more 
        than one hour equally divided and controlled by a 
        proponent and an opponent. A motion to further limit 
        debate is not debatable. A motion to recommit the 
        conference report is not in order, and it is not in 
        order to move to reconsider the vote by which the 
        conference report is agreed to or disagreed to.
            (3) Senate consideration.--Consideration in the 
        Senate of the conference report and any amendments in 
        disagreement on a disapproval bill shall be limited to 
        not more than four hours equally divided and controlled 
        by the Majority Leader and the Minority Leader or their 
        designees. A motion to recommit the conference report 
        is not in order.
            (4) Limits on scope.--(A) When a disagreement to an 
        amendment in the nature of a substitute has been 
        referred to a conference, the conferees shall report 
        those cancellations that were included in both the bill 
        and the amendment, and may report a cancellation 
        included in either the bill or the amendment, but shall 
        not include any other matter.
            (B) When a disagreement on an amendment or 
        amendments of one House to the disapproval bill of the 
        other House has been referred to a committee of 
        conference, the conferees shall report those 
        cancellations upon which both Houses agree and may 
        report any or all of those cancellations upon which 
        there is disagreement, but shall not include any other 
        matter.
                              definitions
    Sec. 1026. [2 U.S.C. 691e] As used in this part:
            (1) Appropriation law.--The term ``appropriation 
        law'' means an Act referred to in section 105 of title 
        1, United States Code, including any general or special 
        appropriation Act, or any Act making supplemental, 
        deficiency, or continuing appropriations, that has been 
        signed into law pursuant to Article I, section 7, of 
        the Constitution of the United States.
            (2) Calendar day.--The term ``calendar day'' means 
        a standard 24-hour period beginning at midnight.
            (3) Calendar days of session.--The term ``calendar 
        days of session'' shall mean only those days on which 
        both Houses of Congress are in session.
            (4) Cancel.--The term ``cancel'' or 
        ``cancellation'' means----
                    (A) with respect to any dollar amount of 
                discretionary budget authority, to rescind;
                    (B) with respect to any item of new direct 
                spending----
                            (i) that is budget authority 
                        provided by law (other than an 
                        appropriation law), to prevent such 
                        budget authority from having legal 
                        force or effect;
                            (ii) that is entitlement authority, 
                        to prevent the specific legal 
                        obligation of the United States from 
                        having legal force or effect; or
                            (iii) through the food stamp 
                        program, to prevent the specific 
                        provision of law that results in an 
                        increase in budget authority or outlays 
                        for that program from having legal 
                        force or effect; and
                    (C) with respect to a limited tax benefit, 
                to prevent the specific provision of law that 
                provides such benefit from having legal force 
                or effect.
            (5) Direct spending.--The term ``direct spending'' 
        means----
                    (A) budget authority provided by law (other 
                than an appropriation law);
                    (B) entitlement authority; and
                    (C) the food stamp program.
            (6) Disapproval bill.--The term ``disapproval 
        bill'' means a bill or joint resolution which only 
        disapproves one or more cancellations of dollar amounts 
        of discretionary budget authority, items of new direct 
        spending, or limited tax benefits in a special message 
        transmitted by the President under this part and----
                    (A) the title of which is as follows: ``A 
                bill disapproving the cancellations transmitted 
                by the President on ____'', the blank space 
                being filled in with the date of transmission 
                of the relevant special message and the public 
                law number to which the message relates;
                    (B) which does not have a preamble; and
                    (C) which provides only the following after 
                the enacting clause: ``That Congress 
                disapproves of cancellations ____'', the blank 
                space being filled in with a list by reference 
                number of one or more cancellations contained 
                in the President's special message, ``as 
                transmitted by the President in a special 
                message on ____'', the blank space being filled 
                in with the appropriate date, ``regarding 
                ____.'', the blank space being filled in with 
                the public law number to which the special 
                message relates.
            (7) Dollar amount of discretionary budget 
        authority.--(A) Except as provided in subparagraph (B), 
        the term ``dollar amount of discretionary budget 
        authority'' means the entire dollar amount of budget 
        authority----
                    (i) specified in an appropriation law, or 
                the entire dollar amount of budget authority 
                required to be allocated by a specific proviso 
                in an appropriation law for which a specific 
                dollar figure was not included;
                    (ii) represented separately in any table, 
                chart, or explanatory text included in the 
                statement of managers or the governing 
                committee report accompanying such law;
                    (iii) required to be allocated for a 
                specific program, project, or activity in a law 
                (other than an appropriation law) that mandates 
                the expenditure of budget authority from 
                accounts, programs, projects, or activities for 
                which budget authority is provided in an 
                appropriation law;
                    (iv) represented by the product of the 
                estimated procurement cost and the total 
                quantity of items specified in an appropriation 
                law or included in the statement of managers or 
                the governing committee report accompanying 
                such law; or
                    (v) represented by the product of the 
                estimated procurement cost and the total 
                quantity of items required to be provided in a 
                law (other than an appropriation law) that 
                mandates the expenditure of budget authority 
                from accounts, programs, projects, or 
                activities for which budget authority is 
                provided in an appropriation law.
            (B) The term ``dollar amount of discretionary 
        budget authority'' does not include----
                    (i) direct spending;
                    (ii) budget authority in an appropriation 
                law which funds direct spending provided for in 
                other law;
                    (iii) any existing budget authority 
                rescinded or canceled in an appropriation law; 
                or
                    (iv) any restriction, condition, or 
                limitation in an appropriation law or the 
                accompanying statement of managers or committee 
                reports on the expenditure of budget authority 
                for an account, program, project, or activity, 
                or on activities involving such expenditure.
            (8) Item of new direct spending.--The term ``item 
        of new direct spending'' means any specific provision 
        of law that is estimated to result in an increase in 
        budget authority or outlays for direct spending 
        relative to the most recent levels calculated pursuant 
        to section 257 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.
            (9) Limited tax benefit.--(A) The term ``limited 
        tax benefit'' means----
                    (i) any revenue-losing provision which 
                provides a Federal tax deduction, credit, 
                exclusion, or preference to 100 or fewer 
                beneficiaries under the Internal Revenue Code 
                of 1986 in any fiscal year for which the 
                provision is in effect; and
                    (ii) any Federal tax provision which 
                provides temporary or permanent transitional 
                relief for 10 or fewer beneficiaries in any 
                fiscal year from a change to the Internal 
                Revenue Code of 1986.
            (B) A provision shall not be treated as described 
        in subparagraph (A)(i) if the effect of that provision 
        is that----
                    (i) all persons in the same industry or 
                engaged in the same type of activity receive 
                the same treatment;
                    (ii) all persons owning the same type of 
                property, or issuing the same type of 
                investment, receive the same treatment; or
                    (iii) any difference in the treatment of 
                persons is based solely on----
                            (I) in the case of businesses and 
                        associations, the size or form of the 
                        business or association involved;
                            (II) in the case of individuals, 
                        general demographic conditions, such as 
                        income, marital status, number of 
                        dependents, or tax return filing 
                        status;
                            (III) the amount involved; or
                            (IV) a generally-available election 
                        under the Internal Revenue Code of 
                        1986.
            (C) A provision shall not be treated as described 
        in subparagraph (A)(ii) if----
                    (i) it provides for the retention of prior 
                law with respect to all binding contracts or 
                other legally enforceable obligations in 
                existence on a date contemporaneous with 
                congressional action specifying such date; or
                    (ii) it is a technical correction to 
                previously enacted legislation that is 
                estimated to have no revenue effect.
            (D) For purposes of subparagraph (A)----
                    (i) all businesses and associations which 
                are related within the meaning of sections 
                707(b) and 1563(a) of the Internal Revenue Code 
                of 1986 shall be treated as a single 
                beneficiary;
                    (ii) all qualified plans of an employer 
                shall be treated as a single beneficiary;
                    (iii) all holders of the same bond issue 
                shall be treated as a single beneficiary; and
                    (iv) if a corporation, partnership, 
                association, trust or estate is the beneficiary 
                of a provision, the shareholders of the 
                corporation, the partners of the partnership, 
                the members of the association, or the 
                beneficiaries of the trust or estate shall not 
                also be treated as beneficiaries of such 
                provision.
            (E) For purposes of this paragraph, the term 
        ``revenue-losing provision'' means any provision which 
        results in a reduction in Federal tax revenues for any 
        one of the two following periods----
                    (i) the first fiscal year for which the 
                provision is effective; or
                    (ii) the period of the 5 fiscal years 
                beginning with the first fiscal year for which 
                the provision is effective.
            (F) The terms used in this paragraph shall have the 
        same meaning as those terms have generally in the 
        Internal Revenue Code of 1986, unless otherwise 
        expressly provided.
            (10) OMB.--The term ``OMB'' means the Director of 
        the Office of Management and Budget.
                 identification of limited tax benefits
    Sec. 1027. [2 U.S.C. 691f] (a) Statement by Joint Tax 
Committee.--The Joint Committee on Taxation shall review any 
revenue or reconciliation bill or joint resolution which 
includes any amendment to the Internal Revenue Code of 1986 
that is being prepared for filing by a committee of conference 
of the two Houses, and shall identify whether such bill or 
joint resolution contains any limited tax benefits. The Joint 
Committee on Taxation shall provide to the committee of 
conference a statement identifying any such limited tax 
benefits or declaring that the bill or joint resolution does 
not contain any limited tax benefits. Any such statement shall 
be made available to any Member of Congress by the Joint 
Committee on Taxation immediately upon request.
    (b) Statement Included in Legislation.--(1) Notwithstanding 
any other rule of the House of Representatives or any rule or 
precedent of the Senate, any revenue or reconciliation bill or 
joint resolution which includes any amendment to the Internal 
Revenue Code of 1986 reported by a committee of conference of 
the two Houses may include, as a separate section of such bill 
or joint resolution, the information contained in the statement 
of the Joint Committee on Taxation, but only in the manner set 
forth in paragraph (2).
    (2) The separate section permitted under paragraph (1) 
shall read as follows: ``Section 1021(a)(3) of the 
Congressional Budget and Impoundment Control Act of 1974 shall 
____ apply to ______.'', with the blank spaces being filled in 
with----
            (A) in any case in which the Joint Committee on 
        Taxation identifies limited tax benefits in the 
        statement required under subsection (a), the word 
        ``only'' in the first blank space and a list of all of 
        the specific provisions of the bill or joint resolution 
        identified by the Joint Committee on Taxation in such 
        statement in the second blank space; or
            (B) in any case in which the Joint Committee on 
        Taxation declares that there are no limited tax 
        benefits in the statement required under subsection 
        (a), the word ``not'' in the first blank space and the 
        phrase ``any provision of this Act'' in the second 
        blank space.
    (c) President's Authority.--If any revenue or 
reconciliation bill or joint resolution is signed into law 
pursuant to Article I, section 7, of the Constitution of the 
United States----
            (1) with a separate section described in subsection 
        (b)(2), then the President may use the authority 
        granted in section 1021(a)(3) only to cancel any 
        limited tax benefit in that law, if any, identified in 
        such separate section; or
            (2) without a separate section described in 
        subsection (b)(2), then the President may use the 
        authority granted in section 1021(a)(3) to cancel any 
        limited tax benefit in that law that meets the 
        definition in section 1026.
    (d) Congressional Identifications of Limited Tax 
Benefits.--There shall be no judicial review of the 
congressional identification under subsections (a) and (b) of a 
limited tax benefit in a conference report.END OF 
STATUTE deg.

                                  
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