[Congressional Record Volume 149, Number 46 (Friday, March 21, 2003)]
[Senate]
[Pages S4288-S4295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. VOINOVICH (for himself and Mr. Feingold):
  S. 689. A bill to balance the budget and protect the Social Security 
Trust Fund surpluses; to the Committee on Governmental Affairs and the 
Committee on the Budget, jointly, pursuant to the order of August 4, 
1977, with instructions that if one Committee reports, the other 
Committee have thirty days to report or be discharged.
  Mr. VOINOVICH. Mr. President, I ask unanimous consent that the text 
of this bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 689

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Truth in 
     Budgeting and Social Security Protection Act of 2003''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                        TITLE I--GENERAL REFORMS

Sec. 101. Extension of the discretionary spending caps.
Sec. 102. Extension of pay-as-you-go requirement.
Sec. 103. Point of order to require compliance with the caps and pay-
              as-you-go.
Sec. 104. Disclosure of interest costs.
Sec. 105. Executive branch report on fiscal exposures.
Sec. 106. Senate sets 302(b) allocations.
Sec. 107. Long-Term Cost Recognition Point of Order.

 TITLE II--REFORM OF BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

Sec. 201. Federal insurance programs.

            TITLE III--BIENNIAL BUDGETING AND APPROPRIATIONS

Sec. 301. Revision of timetable.
Sec. 302. Amendments to the Congressional Budget and Impoundment 
              Control Act of 1974.
Sec. 303. Amendments to title 31, United States Code.
Sec. 304. Two-year appropriations; title and style of appropriations 
              Acts.
Sec. 305. Multiyear authorizations.
Sec. 306. Government plans on a biennial basis.
Sec. 307. Biennial appropriations bills.
Sec. 308. Report on two-year fiscal period.
Sec. 309. Effective date.

            TITLE IV--COMMISSION ON FEDERAL BUDGET CONCEPTS

Sec. 401. Establishment of Commission on Federal Budget Concepts.
Sec. 402. Powers and duties of Commission.
Sec. 403. Membership.
Sec. 404. Staff and support services.
Sec. 405. Report.
Sec. 406. Termination.
Sec. 407. Funding.

                        TITLE I--GENERAL REFORMS

     SEC. 101. EXTENSION OF THE DISCRETIONARY SPENDING CAPS.

       (a) In General.--Section 251(c) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended by striking 
     paragraphs (7) through (16) and inserting the following:
       ``(7) with respect to fiscal years 2004 through 2009 an 
     amount equal to the appropriated amount of discretionary 
     spending in budget authority and outlays for fiscal year 2003 
     adjusted to reflect inflation;''.
       (b) Expiration.--Section 275(b) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 900 note) is 
     amended by striking subsection (b).
       (c) Additional Enforcement.--Section 205(g) of H. Con. Res. 
     290 (106th Congress) is repealed.

     SEC. 102. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.

       Section 252(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 is amended by striking ``enacted before 
     October 1, 2002,'' both places it appears.

     SEC. 103. POINT OF ORDER TO REQUIRE COMPLIANCE WITH THE CAPS 
                   AND PAY-AS-YOU-GO.

       Section 312(b) of the Congressional Budget Act of 1974 (2 
     U.S.C. 643(b)) is amended to read as follows:
       ``(b) Discretionary Spending and Pay-as-You-Go 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 any separate provision of 
     a bill or resolution (or amendment, motion, or conference 
     report on that bill or resolution) that would--
       ``(A) exceed any of the discretionary spending limits in 
     section 251(c) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(B) for direct spending or revenue legislation, would 
     cause or increase an on-budget deficit for any one of the 
     following three applicable time periods--
       ``(i) the first year covered by the most recently adopted 
     concurrent resolution on the budget;
       ``(ii) the period of the first 5 fiscal years covered by 
     the most recently adopted concurrent resolution on the 
     budget; or
       ``(iii) the period of the 5 fiscal years following the 
     first five fiscal years covered in the most recently adopted 
     concurrent resolution on the budget.
       ``(2) Point of order against a specific provision.--If the 
     Presiding Officer sustains a point of order under paragraph 
     (1) with respect to any separate provision of a bill or 
     resolution, that provision shall be stricken from the measure 
     and may not be offered as an amendment from the floor.
       ``(3) Form of the point of order.--A point of order under 
     this section may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       ``(4) Conference reports.--If a point of order is sustained 
     under this section against a conference report the report 
     shall be disposed of as provided in section 313(d) of the 
     Congressional Budget Act of 1974.
       ``(5) Enforcement by the presiding officer.--In the Senate, 
     if a point of order lies against a bill or resolution (or 
     amendment, motion, or conference report on that bill or 
     resolution) under this section, and no Senator has raised the 
     point of order, and the Senate has not waived the point of 
     order, then before the Senate may vote on the bill or 
     resolution (or amendment, motion, or

[[Page S4289]]

     conference report on that bill or resolution), the Presiding 
     Officer shall on his or her own motion raise a point of order 
     under this section.
       ``(6) 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.''.

     SEC. 104. DISCLOSURE OF INTEREST COSTS.

       Section 308(a)(1) of the Congressional Budget Act of 1974 
     (2 U.S.C. 639(a)(1)) is amended--
       (1) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) containing a projection by the Congressional Budget 
     Office of the cost of the debt servicing that would be caused 
     by such measure for such fiscal year (or fiscal years) and 
     each of the 4 ensuing fiscal years.''.

     SEC. 105. EXECUTIVE BRANCH REPORT ON FISCAL EXPOSURES.

       (a) In General.--The President shall submit to the 
     Committees on Appropriations, Budget, Finance, and 
     Governmental Affairs of the Senate, and the Committees on 
     Appropriations, Budget, Government Reform, and Ways and Means 
     of the House of Representatives, not later than 2 weeks 
     before the first Monday in February of each year, a report 
     (in this section referred to as the ``report'') on the fiscal 
     exposures of the United States Federal Government and their 
     implications for long-term financial health. The report shall 
     also be included as part of the Consolidated Financial 
     Statement of the United States Government.
       (b) Contents.--
       (1) In general.--The report shall include fiscal exposures 
     for the following categories of fiscal exposures:
       (A) Debt.--Debt, including--
       (i) total gross debt;
       (ii) publicly held debt; and
       (iii) debt held by Government accounts.
       (B) Other financial liabilities.--Other financial 
     liabilities, including--
       (i) civilian and military pensions;
       (ii) post-retirement health benefits;
       (iii) environmental liabilities;
       (iv) accounts payable;
       (v) loan guarantees; and
       (vi) Social Security benefits due and payable.
       (C) Financial commitments.--Financial commitments, 
     including--
       (i) undelivered orders; and
       (ii) long-term operating leases.
       (D) Financial contingencies and other exposure.--Financial 
     contingencies and other exposures, including--
       (i) unadjudicated claims;
       (ii) Federal insurance programs (including both the 
     financial contingency for and risk assumed by such programs);
       (iii) net future benefits under Social Security, Medicare 
     Part A, Medicare Part B, and other social insurance programs;
       (iv) life cycle costs, including deferred and future 
     maintenance and operating costs associated with operating 
     leases and the maintenance of capital assets;
       (v) unfunded portions of incrementally funded capital 
     projects;
       (vi) disaster relief; and
       (vii) others as deemed appropriate.
       (2) Estimates.--Where available, estimates for each 
     exposure should be included. Where reasonable estimates are 
     not available, a range of estimates may be appropriate.
       (3) Other exposures.--Exposures that are analogous to those 
     specified in paragraph (1) shall also be included in the 
     exposure categories identified in such paragraph.
       (c) Format.--The report shall include a 1-page list of all 
     exposures. Additional disclosures shall include descriptions 
     of exposures, the estimation methodologies and significant 
     assumptions used, and an analysis of the implications of the 
     exposures for the long-term financial outlook. Additional 
     analysis deemed informative may be provided on subsequent 
     pages.
       (d) Review With Congress.--Following the submission of the 
     report on fiscal exposures to the Senate and the House of 
     Representatives, the Comptroller General shall review and 
     report to the committee reviewing the report on the report, 
     discussing--
       (1) the extent to which all required disclosures under this 
     section have been made;
       (2) the quality of the cost estimates;
       (3) the scope of the information;
       (4) the long-range financial outlook; and
       (5) any other matters deemed appropriate.
       (e) Definitions.--In this section:
       (1) Liabilities.--The terms ``liabilities'', 
     ``commitments'', and ``contingencies'' shall be defined in 
     accordance with generally accepted accounting principles and 
     standards of the United States Federal Government.
       (2) Risk assumed.--The term ``risk assumed'' means the full 
     portion of the risk premium based on the expected cost of 
     losses inherent in the Government's commitment that is not 
     charged to the insured. For example, the present value of 
     unpaid expected losses net of associated premiums, based on 
     the risk assumed as a result of insurance coverage.
       (3) Net future benefit payments.--The term ``net future 
     benefit payments'' means the net present value of negative 
     cashflow. Negative cashflow is to be calculated as the 
     current amount of funds needed to cover projected shortfalls, 
     excluding trust fund balances, over a 75-year period. This 
     estimate should include births during the period and 
     individuals below age 15 as of January 1 of the valuation 
     year.

     SEC. 106. SENATE SETS 302(B) ALLOCATIONS.

       The Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.) 
     is amended--
       (1) in section 301(e)(2)(F) (2 U.S.C. 632(e)(2)(F)), by 
     striking ``section 302(a)'' and inserting ``subsections (a) 
     and (b) of section 302''; and
       (2) in section 302 (2 U.S.C. 633), by striking subsection 
     (b) and inserting the following:
       ``(b) Suballocations for Appropriations Committee.--The 
     joint explanatory statement accompanying a conference report 
     on a concurrent resolution on the budget shall include 
     suballocations of amounts allocated to the Committees on 
     Appropriations of each amount allocated to those committees 
     under subsection (a) among each of the subcommittees of those 
     committees.''.

     SEC. 107. LONG-TERM COST RECOGNITION POINT OF ORDER.

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


              ``long-term cost recognition point of order

       ``Sec. 318. (a) Congressional Budget Office Analysis.--
       ``(1) In general.--CBO shall, in conjunction with the 
     analysis required by section 402, prepare and submit to the 
     Committees on the Budget of the House of Representatives and 
     Senate a report on each bill, joint resolution, amendment, 
     motion, or conference report reported by any committee of the 
     House of Representatives or the Senate that contains any cost 
     drivers that CBO concludes are likely to have the effect of 
     increasing the cost path of that measure such that the 
     estimated discounted cash flows of the measure in the 10 
     years following the 10th year after the measure takes effect 
     would be 150 percent or greater of the level of the estimated 
     discounted cash flows of the measure at the end of the 10 
     years following the enactment of the measure.
       ``(2) Projections.--Where possible, CBO should use existing 
     long-term projections of cost drivers prepared by the 
     appropriate Federal agency.
       ``(3) Limit.--Nothing in this section requires CBO to 
     develop cost estimates for a measure beyond the 10th year 
     after the measure takes effect.
       ``(b) Cost Drivers.--Cost drivers CBO shall consider under 
     subsection (a) include--
       ``(1) demographic changes;
       ``(2) new technologies; and
       ``(3) environmental factors.
       ``(c) Point of Order.--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 
     that CBO determines will increase the level of the estimated 
     discounted cash flows of that measure as reported in 
     subsection (a) by 150 percent or more.''.

 TITLE II--REFORM OF BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

     SEC. 201. FEDERAL INSURANCE PROGRAMS.

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

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

     ``SEC. 601. SHORT TITLE.

       ``This title may be cited as the `Federal Insurance 
     Budgeting Act of 2003'.

     ``SEC. 602. BUDGETARY TREATMENT.

       ``(a) President's Budget.--Beginning with fiscal year 2008, 
     the budget of the Government submitted pursuant to section 
     1105(a) of title 31, United States Code, shall be based on 
     the risk-assumed cost of Federal insurance programs.
       ``(b) Budget Accounting.--For any Federal insurance 
     program--
       ``(1) the program account shall--
       ``(A) pay the risk-assumed cost borne by taxpayers to the 
     financing account; and
       ``(B) pay actual insurance program administrative costs; 
     and
       ``(2) the financing account shall--
       ``(A) receive premiums and other income;
       ``(B) pay all claims for insurance and receive all 
     recoveries; and
       ``(C) transfer to the program account on not less than an 
     annual basis amounts necessary to pay insurance program 
     administrative costs; and
       ``(3) a negative risk-assumed cost shall be transferred 
     from the financing account to the program account, and shall 
     be transferred from the program account to the general fund;
       ``(4) all payments by or receipts of the financing accounts 
     shall be treated in the budget as a means of financing.
       ``(c) Appropriations Required.--(1) Notwithstanding any 
     other provision of law, insurance commitments may be made for 
     fiscal year 2006 and thereafter only to the extent that new 
     budget authority to cover their risk-assumed cost is provided 
     in advance in an appropriation Act.
       ``(2) An outstanding insurance commitment shall not be 
     modified in a manner that increases its risk-assumed cost 
     unless budget authority for the additional cost has been 
     provided in advance.
       ``(3) Paragraph (1) shall not apply to Federal insurance 
     programs that constitute entitlements.
       ``(d) Reestimates.--
       ``(1) In general.--The risk-assumed cost for a fiscal year 
     shall be reestimated in each subsequent year. Such reestimate 
     can equal

[[Page S4290]]

     zero. In the case of a positive reestimate, the amount of the 
     reestimate shall be paid from the program account to the 
     financing account. In the case of a negative reestimate, the 
     amount of the reestimate shall be paid from the financing 
     account to the program account, and shall be transferred from 
     the program account to the general fund. Reestimates shall be 
     displayed as a distinct and separately identified subaccount 
     in the program account.
       ``(2) Appropriations.--There are appropriated such sums as 
     are necessary to fund a positive reestimate under paragraph 
     (1).
       ``(e) Administrative Expenses.--All funding for an agency's 
     administration of a Federal insurance program shall be 
     displayed as a distinct and separately identified subaccount 
     in the program account.

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

       ``(a) Agency Requirements.--Agencies with responsibility 
     for Federal insurance programs shall develop models to 
     estimate their risk-assumed cost by year through the budget 
     horizon and shall submit those models, all relevant data, a 
     justification for critical assumptions, and the annual 
     projected risk-assumed costs to OMB with their budget 
     requests each year starting with the request for fiscal year 
     2005. Agencies will likewise provide OMB with annual 
     estimates of modifications, if any, and reestimates of 
     program costs.
       ``(b) Disclosure.--When the President submits a budget of 
     the Government pursuant to section 1105(a) of title 31, 
     United States Code, for fiscal year 2005, OMB shall publish a 
     notice in the Federal Register advising interested persons of 
     the availability of information describing the models, data 
     (including sources), and critical assumptions (including 
     explicit or implicit discount rate assumptions) that it or 
     other executive branch entities would use to estimate the 
     risk-assumed cost of Federal insurance programs and giving 
     such persons an opportunity to submit comments. At the same 
     time, the chairman of the Committee on the Budget shall 
     publish a notice for CBO in the Federal Register advising 
     interested persons of the availability of information 
     describing the models, data (including sources), and 
     critical assumptions (including explicit or implicit 
     discount rate assumptions) that it would use to estimate 
     the risk-assumed cost of Federal insurance programs and 
     giving such interested persons an opportunity to submit 
     comments.
       ``(c) Revision.--After consideration of comments pursuant 
     to subsection (b), and in consultation with the Committees on 
     the Budget of the House of Representatives and the Senate, 
     OMB and CBO shall revise the models, data, and major 
     assumptions they would use to estimate the risk-assumed cost 
     of Federal insurance programs.
       ``(d) Display.--
       ``(1) In general.--For fiscal years 2005, 2006, and 2007 
     the budget submissions of the President pursuant to section 
     1105(a) of title 31, United States Code, and CBO's reports on 
     the economic and budget outlook pursuant to section 202(e)(1) 
     and the President's budgets, shall for display purposes only, 
     estimate the risk-assumed cost of existing or proposed 
     Federal insurance programs.
       ``(2) OMB.--The display in the budget submissions of the 
     President for fiscal years 2005, 2006, and 2007 shall 
     include--
       ``(A) a presentation for each Federal insurance program in 
     budget-account level detail of estimates of risk-assumed 
     cost;
       ``(B) a summary table of the risk-assumed costs of Federal 
     insurance programs; and
       ``(C) an alternate summary table of budget functions and 
     aggregates using risk-assumed rather than cash-based cost 
     estimates for Federal insurance programs.
       ``(3) CBO.--In the second session of the 108th Congress and 
     the 109th Congress, CBO shall include in its estimates under 
     section 308, for display purposes only, the risk-assumed cost 
     of existing Federal insurance programs, or legislation that 
     CBO, in consultation with the Committees on the Budget of the 
     House of Representatives and the Senate, determines would 
     create a new Federal insurance program.
       ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 
     months after the budget submission of the President pursuant 
     to section 1105(a) of title 31, United States Code, for 
     fiscal year 2007, OMB, CBO, and GAO shall each submit to the 
     Committees on the Budget of the House of Representatives and 
     the Senate a report that evaluates the advisability and 
     appropriate implementation of this title.
       ``(2) Each report made pursuant to paragraph (1) shall 
     address the following:
       ``(A) The adequacy of risk-assumed estimation models used 
     and alternative modeling methods.
       ``(B) The availability and reliability of data or 
     information necessary to carry out this title.
       ``(C) The appropriateness of the explicit or implicit 
     discount rate used in the various risk-assumed estimation 
     models.
       ``(D) The advisability of specifying a statutory discount 
     rate (such as the Treasury rate) for use in risk-assumed 
     estimation models.
       ``(E) The ability of OMB, CBO, or GAO, as applicable, to 
     secure any data or information directly from any Federal 
     agency necessary to enable it to carry out this title.
       ``(F) The relationship between risk-assumed accrual 
     budgeting for Federal insurance programs and the specific 
     requirements of the Balanced Budget and Emergency Deficit 
     Control Act of 1985.
       ``(G) Whether Federal budgeting is improved by the 
     inclusion of risk-assumed cost estimates for Federal 
     insurance programs.
       ``(H) The advisability of including each of the programs 
     currently estimated on a risk-assumed cost basis in the 
     Federal budget on that basis.

     ``SEC. 604. DEFINITIONS.

       ``For purposes of this title:
       ``(1) The term `Federal insurance program' means a program 
     that makes insurance commitments and includes the list of 
     such programs as to be defined by the budget concepts 
     commission, as required by title IV of the Truth in Budgeting 
     and Social Security Protection Act of 2003.
       ``(2) The term `insurance commitment' means an agreement in 
     advance by a Federal agency to indemnify a non-Federal entity 
     against specified losses. This term does not include loan 
     guarantees as defined in title V or benefit programs such as 
     social security, medicare, and similar existing social 
     insurance programs.
       ``(3)(A) The term `risk-assumed cost' means the net present 
     value of the estimated cash flows to and from the Government 
     resulting from an insurance commitment or modification 
     thereof.
       ``(B) The cash flows associated with an insurance 
     commitment include--
       ``(i) expected claims payments inherent in the Government's 
     commitment;
       ``(ii) net premiums (expected premium collections received 
     from or on behalf of the insured less expected administrative 
     expenses);
       ``(iii) expected recoveries; and
       ``(iv) expected changes in claims, premiums, or recoveries 
     resulting from the exercise by the insured of any option 
     included in the insurance commitment.
       ``(C) The cost of a modification is the difference between 
     the current estimate of the net present value of the 
     remaining cash flows under the terms of the insurance 
     commitment, and the current estimate of the net present value 
     of the remaining cash flows under the terms of the insurance 
     commitment as modified.
       ``(D) The cost of a reestimate is the difference between 
     the net present value of the amount currently required by the 
     financing account to pay estimated claims and other 
     expenditures and the amount currently available in the 
     financing account. The cost of a reestimate shall be 
     accounted for in the current year in the budget of the 
     Government submitted pursuant to section 1105(a) of title 
     31, United States Code.
       ``(E) For purposes of this definition, expected 
     administrative expenses shall be construed as the amount 
     estimated to be necessary for the proper administration of 
     the insurance program. This amount may differ from amounts 
     actually appropriated or otherwise made available for the 
     administration of the program.
       ``(4) The term `program account' means the budget account 
     for the risk-assumed cost, and for paying all costs of 
     administering the insurance program, and is the account from 
     which the risk-assumed cost is disbursed to the financing 
     account.
       ``(5) The term `financing account' means the nonbudget 
     account that is associated with each program account which 
     receives payments from or makes payments to the program 
     account, receives premiums and other payments from the 
     public, pays insurance claims, and holds balances.
       ``(6) The term `modification' means any Government action 
     that alters the risk-assumed cost of an existing insurance 
     commitment from the current estimate of cash flows. This 
     includes any action resulting from new legislation, or from 
     the exercise of administrative discretion under existing law, 
     that directly or indirectly alters the estimated cost of 
     existing insurance commitments.
       ``(7) The term `model' means any actuarial, financial, 
     econometric, probabilistic, or other methodology used to 
     estimate the expected frequency and magnitude of loss-
     producing events, expected premiums or collections from or on 
     behalf of the insured, expected recoveries, and 
     administrative expenses.
       ``(8) The term `current' has the same meaning as in section 
     250(c)(9) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985.
       ``(9) The term `OMB' means the Director of the Office of 
     Management and Budget.
       ``(10) The term `CBO' means the Director of the 
     Congressional Budget Office.
       ``(11) The term `GAO' means the Comptroller General of the 
     United States.

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

       ``(a) Authorization of Appropriations.--There is authorized 
     to be appropriated $600,000 for each of fiscal years 2004 
     through 2009 to the Director of the Office of Management and 
     Budget and each agency responsible for administering a 
     Federal program to carry out this title.
       ``(b) Treasury Transactions With the Financing Accounts.--
     The Secretary of the Treasury shall borrow from, receive 
     from, lend to, or pay the insurance financing accounts such 
     amounts as may be appropriate. The Secretary of the Treasury 
     may prescribe forms and denominations, maturities, and terms 
     and conditions for the transactions described above. The 
     authorities described above shall not be construed to 
     supersede or

[[Page S4291]]

     override the authority of the head of a Federal agency to 
     administer and operate an insurance program. All the 
     transactions provided in this subsection shall be subject to 
     the provisions of subchapter II of chapter 15 of title 31, 
     United States Code. Cash balances of the financing accounts 
     in excess of current requirements shall be maintained in a 
     form of uninvested funds, and the Secretary of the Treasury 
     shall pay interest on these funds.
       ``(c) Appropriation of Amount Necessary to Cover Risk-
     Assumed Cost of Insurance Commitments at Transition Date.--
     (1) A financing account is established on September 30, 2007, 
     for each Federal insurance program.
       ``(2) There is appropriated to each financing account the 
     amount of the risk-assumed cost of Federal insurance 
     commitments outstanding for that program as of the close of 
     September 30, 2007.
       ``(3) These financing accounts shall be used in 
     implementing the budget accounting required by this title.

     ``SEC. 606. EFFECTIVE DATE.

       ``(a) In General.--This title shall take effect immediately 
     and shall expire on September 30, 2009.
       ``(b) Special Rule.--If this title is not reauthorized by 
     September 30, 2009, then the accounting structure and 
     budgetary treatment of Federal insurance programs shall 
     revert to the accounting structure and budgetary treatment in 
     effect immediately before the date of enactment of this 
     title.''.
       (b) Conforming Amendment.--The table of contents set forth 
     in section 1(b) of the Congressional Budget and Impoundment 
     Control Act of 1974 is amended by inserting after the item 
     relating to section 507 the following new items:

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

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

            TITLE III--BIENNIAL BUDGETING AND APPROPRIATIONS

     SEC. 301. REVISION OF TIMETABLE.

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


                              ``timetable

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


                             ``First Session
                                  ``On or before:     Action to be
                                                       completed:
 
  ..............................  First Monday in     President submits
                                   February.           budget
                                                       recommendations.
  ..............................  February 15.......  Congressional
                                                       Budget Office
                                                       submits report to
                                                       Budget
                                                       Committees.
  ..............................  Not later than 6    Committees submit
                                   weeks after         views and
                                   budget submission.  estimates to
                                                       Budget
                                                       Committees.
  ..............................  April 1...........  Budget Committees
                                                       report concurrent
                                                       resolution on the
                                                       biennial budget.
  ..............................  May 15............  Congress completes
                                                       action on
                                                       concurrent
                                                       resolution on the
                                                       biennial budget.
  ..............................  May 15............  Biennial
                                                       appropriation
                                                       bills may be
                                                       considered in the
                                                       House.
  ..............................  June 10...........  House
                                                       Appropriations
                                                       Committee reports
                                                       last biennial
                                                       appropriation
                                                       bill.
  ..............................  June 30...........  House completes
                                                       action on
                                                       biennial
                                                       appropriation
                                                       bills.
  ..............................  August 1..........  Congress completes
                                                       action on
                                                       reconciliation
                                                       legislation.
  ..............................  October 1.........  Biennium begins.
 
                            ``Second Session
 
                                  ``On or before:     Action to be
                                                       completed:
 
  ..............................  February 15.......  President submits
                                                       budget review.
  ..............................  Not later than 6    Congressional
                                   weeks after         Budget Office
                                   President submits   submits report to
                                   budget review.      Budget
                                                       Committees.
  ..............................  The last day of     Congress completes
                                   the session.        action on bills
                                                       and resolutions
                                                       authorizing new
                                                       budget authority
                                                       for the
                                                       succeeding
                                                       biennium.
 

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


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

     SEC. 302. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND 
                   IMPOUNDMENT CONTROL ACT OF 1974.

       (a) Declaration of Purpose.--Section 2(2) of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 621(2)) is amended by striking ``each year'' and 
     inserting ``biennially''.
       (b) Definitions.--
       (1) Budget resolution.--Section 3(4) of such Act (2 U.S.C. 
     622(4)) is amended by striking ``fiscal year'' each place it 
     appears and inserting ``biennium''.
       (2) Biennium.--Section 3 of such Act (2 U.S.C. 622) is 
     further amended by adding at the end the following new 
     paragraph:
       ``(11) The term `biennium' means the period of 2 
     consecutive fiscal years beginning on October 1 of any odd-
     numbered year.''.
       (c) Biennial Concurrent Resolution on the Budget.--
       (1) Contents of resolution.--Section 301(a) of such Act (2 
     U.S.C. 632(a)) is amended--
       (A) in the matter preceding paragraph (1) by--
       (i) striking ``April 15 of each year'' and inserting ``May 
     15 of each odd-numbered year'';
       (ii) striking ``the fiscal year beginning on October 1 of 
     such year'' the first place it appears and inserting ``the 
     biennium beginning on October 1 of such year''; and
       (iii) striking ``the fiscal year beginning on October 1 of 
     such year'' the second place it appears and inserting ``each 
     fiscal year in such period'';
       (B) in paragraph (6), by striking ``for the fiscal year'' 
     and inserting ``for each fiscal year in the biennium''; and
       (C) in paragraph (7), by striking ``for the first fiscal 
     year'' and inserting ``for each fiscal year in the 
     biennium''.
       (2) Additional matters.--Section 301(b)(3) of such Act (2 
     U.S.C. 632(b)) is amended by striking ``for such fiscal 
     year'' and inserting ``for either fiscal year in such 
     biennium''.
       (3) Views of other committees.--Section 301(d) of such Act 
     (2 U.S.C. 632(d)) is amended by inserting ``(or, if 
     applicable, as provided by section 300(b))'' after ``United 
     States Code''.
       (4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C. 
     632(e)) is amended by--
       (A) striking ``fiscal year'' and inserting ``biennium''; 
     and
       (B) inserting after the second sentence the following: ``On 
     or before April 1 of each odd-numbered year (or, if 
     applicable, as provided by section 300(b)), the Committee on 
     the Budget of each House shall report to its House the 
     concurrent resolution on the budget referred to in subsection 
     (a) for the biennium beginning on October 1 of that year.''.

[[Page S4292]]

       (5) Goals for reducing unemployment.--Section 301(f) of 
     such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal 
     year'' each place it appears and inserting ``biennium''.
       (6) Economic assumptions.--Section 301(g)(1) of such Act (2 
     U.S.C. 632(g)(1)) is amended by striking ``for a fiscal 
     year'' and inserting ``for a biennium''.
       (7) Section heading.--The section heading of section 301 of 
     such Act is amended by striking ``ANNUAL'' and inserting 
     ``BIENNIAL''.
       (8) Table of contents.--The item relating to section 301 in 
     the table of contents set forth in section 1(b) of such Act 
     is amended by striking ``Annual'' and inserting ``Biennial''.
       (d) Committee Allocations.--Section 302 of such Act (2 
     U.S.C. 633) is amended--
       (1) in subsection (a)(1) by--
       (A) striking ``for the first fiscal year of the 
     resolution,'' and inserting ``for each fiscal year in the 
     biennium,'';
       (B) striking ``for that period of fiscal years'' and 
     inserting ``for all fiscal years covered by the resolution''; 
     and
       (C) striking ``for the fiscal year of that resolution'' and 
     inserting ``for each fiscal year in the biennium'';
       (2) in subsection (f)(1), by striking ``for a fiscal year'' 
     and inserting ``for a biennium'';
       (3) in subsection (f)(1), by striking ``first fiscal year'' 
     and inserting ``each fiscal year of the biennium'';
       (4) in subsection (f)(2)(A), by--
       (A) striking ``first fiscal year'' and inserting ``each 
     fiscal year of the biennium''; and
       (B) striking ``the total of fiscal years'' and inserting 
     ``the total of all fiscal years covered by the resolution''; 
     and
       (5) in subsection (g)(1)(A), by striking ``April'' and 
     inserting ``May''.
       (e) Section 303 Point of Order.--
       (1) In general.--Section 303(a) of such Act (2 U.S.C. 
     634(a)) is amended by striking ``first fiscal year'' and 
     inserting ``each fiscal year of the biennium''.
       (2) Exceptions in the house.--Section 303(b)(1) of such Act 
     (2 U.S.C. 634(b)) is amended--
       (A) in subparagraph (A), by striking ``the budget year'' 
     and inserting ``the biennium''; and
       (B) in subparagraph (B), by striking ``the fiscal year'' 
     and inserting ``the biennium''.
       (3) Application to the senate.--Section 303(c)(1) of such 
     Act (2 U.S.C. 634(c)) is amended by--
       (A) striking ``fiscal year'' and inserting ``biennium''; 
     and
       (B) striking ``that year'' and inserting ``each fiscal year 
     of that biennium''.
       (f) Permissible Revisions of Concurrent Resolutions on the 
     Budget.--Section 304(a) of such Act (2 U.S.C. 635) is 
     amended--
       (1) by striking ``fiscal year'' the first two places it 
     appears and inserting ``biennium'';
       (2) by striking ``for such fiscal year''; and
       (3) by inserting before the period ``for such biennium''.
       (g) Procedures for Consideration of Budget Resolutions.--
     Section 305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended 
     by striking ``fiscal year'' and inserting ``biennium''.
       (h) Completion of House Action on Appropriation Bills.--
     Section 307 of such Act (2 U.S.C. 638) is amended--
       (1) by striking ``each year'' and inserting ``each odd-
     numbered year'';
       (2) by striking ``annual'' and inserting ``biennial'';
       (3) by striking ``fiscal year'' and inserting ``biennium''; 
     and
       (4) by striking ``that year'' and inserting ``each odd-
     numbered year''.
       (i) Completion of Action on Regular Appropriation Bills.--
     Section 309 of such Act (2 U.S.C. 640) is amended--
       (1) by inserting ``of any odd-numbered calendar year'' 
     after ``July'';
       (2) by striking ``annual'' and inserting ``biennial''; and
       (3) by striking ``fiscal year'' and inserting ``biennium''.
       (j) Reconciliation Process.--Section 310(a) of such Act (2 
     U.S.C. 641(a)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``any fiscal year'' and inserting ``any biennium''; and
       (2) in paragraph (1) by striking ``such fiscal year'' each 
     place it appears and inserting ``any fiscal year covered by 
     such resolution''.
       (k) Section 311 Point of Order.--
       (1) In the house.--Section 311(a)(1) of such Act (2 U.S.C. 
     642(a)) is amended--
       (A) by striking ``for a fiscal year'' and inserting ``for a 
     biennium'';
       (B) by striking ``the first fiscal year'' each place it 
     appears and inserting ``either fiscal year of the biennium''; 
     and
       (C) by striking ``that first fiscal year'' and inserting 
     ``each fiscal year in the biennium''.
       (2) In the senate.--Section 311(a)(2) of such Act is 
     amended--
       (A) in subparagraph (A), by striking ``for the first fiscal 
     year'' and inserting ``for either fiscal year of the 
     biennium''; and
       (B) in subparagraph (B)--
       (i) by striking ``that first fiscal year'' the first place 
     it appears and inserting ``each fiscal year in the 
     biennium''; and
       (ii) by striking ``that first fiscal year and the ensuing 
     fiscal years'' and inserting ``all fiscal years''.
       (3) Social security levels.--Section 311(a)(3) of such Act 
     is amended by--
       (A) striking ``for the first fiscal year'' and inserting 
     ``each fiscal year in the biennium''; and
       (B) striking ``that fiscal year and the ensuing fiscal 
     years'' and inserting ``all fiscal years''.
       (l) MDA Point of Order.--Section 312(c) of the 
     Congressional Budget Act of 1974 (2 U.S.C. 643) is amended--
       (1) by striking ``for a fiscal year'' and inserting ``for a 
     biennium'';
       (2) in paragraph (1), by striking ``first fiscal year'' and 
     inserting ``either fiscal year in the biennium'';
       (3) in paragraph (2), by striking ``that fiscal year'' and 
     inserting ``either fiscal year in the biennium''; and
       (4) in the matter following paragraph (2), by striking 
     ``that fiscal year'' and inserting ``the applicable fiscal 
     year''.

     SEC. 303. AMENDMENTS TO TITLE 31, UNITED STATES CODE.

       (a) Definition.--Section 1101 of title 31, United States 
     Code, is amended by adding at the end thereof the following 
     new paragraph:
       ``(3) `biennium' has the meaning given to such term in 
     paragraph (11) of section 3 of the Congressional Budget and 
     Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.
       (b) Budget Contents and Submission to the Congress.--
       (1) Schedule.--The matter preceding paragraph (1) in 
     section 1105(a) of title 31, United States Code, is amended 
     to read as follows:
       ``(a) On or before the first Monday in February of each 
     odd-numbered year (or, if applicable, as provided by section 
     300(b) of the Congressional Budget Act of 1974), beginning 
     with the One Hundred Seventh Congress, the President shall 
     transmit to the Congress, the budget for the biennium 
     beginning on October 1 of such calendar year. The budget 
     transmitted under this subsection shall include a budget 
     message and summary and supporting information. The President 
     shall include in each budget the following:''.
       (2) Expenditures.--Section 1105(a)(5) of title 31, United 
     States Code, is amended by striking ``the fiscal year for 
     which the budget is submitted and the 4 fiscal years after 
     that year'' and inserting ``each fiscal year in the biennium 
     for which the budget is submitted and in the succeeding 4 
     years''.
       (3) Receipts.--Section 1105(a)(6) of title 31, United 
     States Code, is amended by striking ``the fiscal year for 
     which the budget is submitted and the 4 fiscal years after 
     that year'' and inserting ``each fiscal year in the biennium 
     for which the budget is submitted and in the succeeding 4 
     years''.
       (4) Balance statements.--Section 1105(a)(9)(C) of title 31, 
     United States Code, is amended by striking ``the fiscal 
     year'' and inserting ``each fiscal year in the biennium''.
       (5) Functions and activities.--Section 1105(a)(12) of title 
     31, United States Code, is amended in subparagraph (A), by 
     striking ``the fiscal year'' and inserting ``each fiscal year 
     in the biennium''.
       (6) Allowances.--Section 1105(a)(13) of title 31, United 
     States Code, is amended by striking ``the fiscal year'' and 
     inserting ``each fiscal year in the biennium''.
       (7) Allowances for uncontrolled expenditures.--Section 
     1105(a)(14) of title 31, United States Code, is amended by 
     striking ``that year'' and inserting ``each fiscal year in 
     the biennium for which the budget is submitted''.
       (8) Tax expenditures.--Section 1105(a)(16) of title 31, 
     United States Code, is amended by striking ``the fiscal 
     year'' and inserting ``each fiscal year in the biennium''.
       (9) Future years.--Section 1105(a)(17) of title 31, United 
     States Code, is amended--
       (A) by striking ``the fiscal year following the fiscal 
     year'' and inserting ``each fiscal year in the biennium 
     following the biennium'';
       (B) by striking ``that following fiscal year'' and 
     inserting ``each such fiscal year''; and
       (C) by striking ``fiscal year before the fiscal year'' and 
     inserting ``biennium before the biennium''.
       (10) Prior year outlays.--Section 1105(a)(18) of title 31, 
     United States Code, is amended--
       (A) by striking ``the prior fiscal year'' and inserting 
     ``each of the 2 most recently completed fiscal years,'';
       (B) by striking ``for that year'' and inserting ``with 
     respect to those fiscal years''; and
       (C) by striking ``in that year'' and inserting ``in those 
     fiscal years''.
       (11) Prior year receipts.--Section 1105(a)(19) of title 31, 
     United States Code, is amended--
       (A) by striking ``the prior fiscal year'' and inserting 
     ``each of the 2 most recently completed fiscal years'';
       (B) by striking ``for that year'' and inserting ``with 
     respect to those fiscal years''; and
       (C) by striking ``in that year'' each place it appears and 
     inserting ``in those fiscal years''.
       (c) Estimated Expenditures of Legislative and Judicial 
     Branches.--Section 1105(b) of title 31, United States Code, 
     is amended by striking ``each year'' and inserting ``each 
     even-numbered year''.
       (d) Recommendations To Meet Estimated Deficiencies.--
     Section 1105(c) of title 31, United States Code, is amended--
       (1) by striking ``the fiscal year for'' the first place it 
     appears and inserting ``each fiscal year in the biennium 
     for'';
       (2) by striking ``the fiscal year for'' the second place it 
     appears and inserting ``each fiscal year of the biennium, as 
     the case may be,''; and
       (3) by striking ``that year'' and inserting ``for each year 
     of the biennium''.
       (e) Capital Investment Analysis.--Section 1105(e)(1) of 
     title 31, United States Code, is amended by striking 
     ``ensuing fiscal year'' and inserting ``biennium to which 
     such budget relates''.

[[Page S4293]]

       (f) Supplemental Budget Estimates and Changes.--
       (1) In general.--Section 1106(a) of title 31, United States 
     Code, is amended--
       (A) in the matter preceding paragraph (1), by--
       (i) striking ``Before July 16 of each year,'' and inserting 
     ``Before February 15 of each even numbered year,''; and
       (ii) striking ``fiscal year'' and inserting ``biennium'';
       (B) in paragraph (1), by striking ``that fiscal year'' and 
     inserting ``each fiscal year in such biennium'';
       (C) in paragraph (2), by striking ``4 fiscal years 
     following the fiscal year'' and inserting ``4 fiscal years 
     following the biennium''; and
       (D) in paragraph (3), by striking ``fiscal year'' and 
     inserting ``biennium''.
       (2) Changes.--Section 1106(b) of title 31, United States 
     Code, is amended by--
       (A) striking ``the fiscal year'' and inserting ``each 
     fiscal year in the biennium'';
       (B) striking ``April 11 and July 16 of each year'' and 
     inserting ``February 15 of each even-numbered year''; and
       (C) striking ``July 16'' and inserting ``February 15 of 
     each even-numbered year.''.
       (g) Current Programs and Activities Estimates.--
       (1) In general.--Section 1109(a) of title 31, United States 
     Code, is amended--
       (A) by striking ``On or before the first Monday after 
     January 3 of each year (on or before February 5 in 1986)'' 
     and inserting ``At the same time the budget required by 
     section 1105 is submitted for a biennium''; and
       (B) by striking ``the following fiscal year'' and inserting 
     ``each fiscal year of such period''.
       (2) Joint economic committee.--Section 1109(b) of title 31, 
     United States Code, is amended by striking ``March 1 of each 
     year'' and inserting ``within 6 weeks of the President's 
     budget submission for each odd-numbered year (or, if 
     applicable, as provided by section 300(b) of the 
     Congressional Budget Act of 1974)''.
       (h) Year-Ahead Requests for Authorizing Legislation.--
     Section 1110 of title 31, United States Code, is amended by--
       (1) striking ``May 16'' and inserting ``March 31''; and
       (2) striking ``year before the year in which the fiscal 
     year begins'' and inserting ``calendar year preceding the 
     calendar year in which the biennium begins''.

     SEC. 304. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF 
                   APPROPRIATIONS ACTS.

       Section 105 of title 1, United States Code, is amended to 
     read as follows:

     ``Sec. 105. Title and style of appropriations Acts

       ``(a) The style and title of all Acts making appropriations 
     for the support of the Government shall be as follows: `An 
     Act making appropriations (here insert the object) for each 
     fiscal year in the biennium of fiscal years (here insert the 
     fiscal years of the biennium).'.
       ``(b) All Acts making regular appropriations for the 
     support of the Government shall be enacted for a biennium and 
     shall specify the amount of appropriations provided for each 
     fiscal year in such period.
       ``(c) For purposes of this section, the term `biennium' has 
     the same meaning as in section 3(11) of the Congressional 
     Budget and Impoundment Control Act of 1974 (2 U.S.C. 
     622(11)).''.

     SEC. 305. MULTIYEAR AUTHORIZATIONS.

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


                   ``authorizations of appropriations

       ``Sec. 319. (a) Point of Order.--It shall not be in order 
     in the House of Representatives or the Senate to consider--
       ``(1) any bill, joint resolution, amendment, motion, or 
     conference report that authorizes appropriations for a period 
     of less than 2 fiscal years, unless the program, project, or 
     activity for which the appropriations are authorized will 
     require no further appropriations and will be completed or 
     terminated after the appropriations have been expended; and
       ``(2) in any odd-numbered year, any authorization or 
     revenue bill or joint resolution until Congress completes 
     action on the biennial budget resolution, all regular 
     biennial appropriations bills, and all reconciliation bills.
       ``(b) Applicability.--In the Senate, subsection (a) shall 
     not apply to--
       ``(1) any measure that is privileged for consideration 
     pursuant to a rule or statute;
       ``(2) any matter considered in Executive Session; or
       ``(3) an appropriations measure or reconciliation bill.''.
       (b) Amendment to Table of Contents.--The table of contents 
     set forth in section 1(b) of the Congressional Budget and 
     Impoundment Control Act of 1974 is amended by adding after 
     the item relating to section 313 the following new item:

``Sec. 319. Authorizations of appropriations.''.

     SEC. 306. GOVERNMENT PLANS ON A BIENNIAL BASIS.

       (a) Strategic Plans.--Section 306 of title 5, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``September 30, 1997'' 
     and inserting ``September 30, 2003'';
       (2) in subsection (b)--
       (A) by striking ``at least every three years'' and 
     inserting ``at least every 4 years''; and
       (B) by striking ``five years forward'' and inserting ``six 
     years forward''; and
       (3) in subsection (c), by inserting a comma after 
     ``section'' the second place it appears and adding 
     ``including a strategic plan submitted by September 30, 2003 
     meeting the requirements of subsection (a)''.
       (b) Budget Contents and Submission to Congress.--Paragraph 
     (28) of section 1105(a) of title 31, United States Code, is 
     amended by striking ``beginning with fiscal year 1999, a'' 
     and inserting ``beginning with fiscal year 2004, a 
     biennial''.
       (c) Performance Plans.--Section 1115 of title 31, United 
     States Code, is amended--
       (1) in subsection (a)--
       (A) in the matter before paragraph (1)--
       (i) by striking ``section 1105(a)(29)'' and inserting 
     ``section 1105(a)(28)''; and
       (ii) by striking ``an annual'' and inserting ``a 
     biennial'';
       (B) in paragraph (1) by inserting after ``program 
     activity'' the following: ``for both years 1 and 2 of the 
     biennial plan'';
       (C) in paragraph (5) by striking ``and'' after the 
     semicolon,
       (D) in paragraph (6) by striking the period and inserting a 
     semicolon; and inserting ``and'' after the inserted 
     semicolon; and
       (E) by adding after paragraph (6) the following:
       ``(7) cover a 2-year period beginning with the first fiscal 
     year of the next biennial budget cycle.'';
       (2) in subsection (d) by striking ``annual'' and inserting 
     ``biennial''; and
       (3) in paragraph (6) of subsection (f) by striking 
     ``annual'' and inserting ``biennial''.
       (d) Managerial Accountability and Flexibility.--Section 
     9703 of title 31, United States Code, relating to managerial 
     accountability, is amended--
       (1) in subsection (a)--
       (A) in the first sentence by striking ``annual''; and
       (B) by striking ``section 1105(a)(29)'' and inserting 
     ``section 1105(a)(28)'';
       (2) in subsection (e)--
       (A) in the first sentence by striking ``one or'' before 
     ``years'';
       (B) in the second sentence by striking ``a subsequent 
     year'' and inserting ``for a subsequent 2-year period''; and
       (C) in the third sentence by striking ``three'' and 
     inserting ``four''.
       (e) Pilot Projects for Performance Budgeting.--Section 1119 
     of title 31, United States Code, is amended--
       (1) in paragraph (1) of subsection (d), by striking 
     ``annual'' and inserting ``biennial''; and
       (2) in subsection (e), by striking ``annual'' and inserting 
     ``biennial''.
       (f) Strategic Plans.--Section 2802 of title 39, United 
     States Code, is amended--
       (1) is subsection (a), by striking ``September 30, 1997'' 
     and inserting ``September 30, 2003'';
       (2) in subsection (b), by striking ``at least every three 
     years'' and inserting ``at least every 4 years'';
       (3) by striking ``five years forward'' and inserting ``six 
     years forward''; and
       (4) in subsection (c), by inserting a comma after 
     ``section'' the second place it appears and inserting 
     ``including a strategic plan submitted by September 30, 2003 
     meeting the requirements of subsection (a)''.
       (g) Performance Plans.--Section 2803(a) of title 39, United 
     States Code, is amended--
       (1) in the matter before paragraph (1), by striking ``an 
     annual'' and inserting ``a biennial'';
       (2) in paragraph (1), by inserting after ``program 
     activity'' the following: ``for both years 1 and 2 of the 
     biennial plan'';
       (3) in paragraph (5), by striking ``and'' after the 
     semicolon;
       (4) in paragraph (6), by striking the period and inserting 
     ``; and''; and
       (5) by adding after paragraph (6) the following:
       ``(7) cover a 2-year period beginning with the first fiscal 
     year of the next biennial budget cycle.''.
       (h) Committee Views of Plans and Reports.--Section 301(d) 
     of the Congressional Budget Act (2 U.S.C. 632(d)) is amended 
     by adding at the end ``Each committee of the Senate or the 
     House of Representatives shall review the strategic plans, 
     performance plans, and performance reports, required under 
     section 306 of title 5, United States Code, and sections 1115 
     and 1116 of title 31, United States Code, of all agencies 
     under the jurisdiction of the committee. Each committee may 
     provide its views on such plans or reports to the Committee 
     on the Budget of the applicable House.''.
       (i) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on March 1, 2003.
       (2) Agency actions.--Effective on and after the date of 
     enactment of this Act, each agency shall take such actions as 
     necessary to prepare and submit any plan or report in 
     accordance with the amendments made by this Act.

     SEC. 307. BIENNIAL APPROPRIATIONS BILLS.

       (a) In General.--Title III of the Congressional Budget Act 
     of 1974 (2 U.S.C. 631 et seq.) is amended by adding at the 
     end the following:


            ``consideration of biennial appropriations bills

       ``Sec. 320. It shall not be in order in the House of 
     Representatives or the Senate in any odd-numbered year to 
     consider any regular bill providing new budget authority or a

[[Page S4294]]

     limitation on obligations under the jurisdiction of any of 
     the subcommittees of the Committees on Appropriations for 
     only the first fiscal year of a biennium, unless the program, 
     project, or activity for which the new budget authority or 
     obligation limitation is provided will require no additional 
     authority beyond 1 year and will be completed or terminated 
     after the amount provided has been expended.''.
       (b) Amendment to Table of Contents.--The table of contents 
     set forth in section 1(b) of the Congressional Budget and 
     Impoundment Control Act of 1974 is amended by adding after 
     the item relating to section 313 the following new item:

``Sec. 320. Consideration of biennial appropriations bills.''.

     SEC. 308. REPORT ON TWO-YEAR FISCAL PERIOD.

       Not later than 180 days after the date of enactment of this 
     subpart, the Director of OMB shall--
       (1) determine the impact and feasibility of changing the 
     definition of a fiscal year and the budget process based on 
     that definition to a 2-year fiscal period with a biennial 
     budget process based on the 2-year period; and
       (2) report the findings of the study to the Committees on 
     the Budget of the House of Representatives and the Senate.

     SEC. 309. EFFECTIVE DATE.

       (a) In General.--Except as provided in sections 306 and 308 
     and subsection (b), this title and the amendments made by 
     this title shall take effect on January 1, 2003, and shall 
     apply to budget resolutions and appropriations for the 
     biennium beginning with fiscal year 2004.
       (b) Authorizations for the Biennium.--For purposes of 
     authorizations for the biennium beginning with fiscal year 
     2004, the provisions of this title and the amendments made by 
     this title relating to 2-year authorizations shall take 
     effect January 1, 2003.

            TITLE IV--COMMISSION ON FEDERAL BUDGET CONCEPTS

     SEC. 401. ESTABLISHMENT OF COMMISSION ON FEDERAL BUDGET 
                   CONCEPTS.

       There is established a commission to be known as the 
     Commission on Federal Budget Concepts (referred to in this 
     title as the ``Commission'').

     SEC. 402. POWERS AND DUTIES OF COMMISSION.

       (a) Duties of the Commission.--
       (1) In general.--The duties of the Commission shall 
     include--
       (A) a review of the 1967 report of the President's 
     Commission on Budget Concepts and assessment of the 
     implementation of the recommendations of that report;
       (B) identification and evaluation of the structure, 
     concepts, classifications, and bases of accounting of the 
     Federal budget;
       (C) identification of any applicable general accounting 
     principles and practices in the private sector and evaluation 
     of their value to budget practices in the Federal sector;
       (D) a report that shall include recommendations for 
     modifications to the structure, concepts, classifications, 
     and bases of accounting of the Federal budget that would 
     enhance the usefulness of the budget for public policy and 
     financial planning.
       (2) Specific areas of consideration.--Specific areas for 
     consideration by the Commission shall include the following:
       (A) Should part ownership by the Government be sufficient 
     to make an entity Federal and to include it in the budget?
       (B) When is Federal control of an entity, including control 
     exercised through Federal regulations, sufficient to cause it 
     to be included in the budget?
       (C) Are privately owned assets under long-term leases to 
     the Federal Government effectively purchased by the 
     Government during the lease period?
       (D) Should there be an ``off-budget'' section of the 
     budget? How should the Federal Government differentiate 
     between spending and receipts?
       (E) Should the total costs of refundable tax credits belong 
     on the spending side of the budget?
       (F) When should Federal Reserve earnings be reported as 
     receipts or offsetting receipts (negative spending) in the 
     net interest portion of the budget?
       (G) What is a ``user fee'' and under what circumstances is 
     it properly an offset to spending or a governmental receipt? 
     What uses do trust funds have?
       (H) Do trust fund balances provide misleading information? 
     Do the roughly 200 trust funds add clarity or confusion to 
     the budget process?
       (I) Are there better ways than trust fund accounting to 
     identify long-term liabilities?
       (J) Should accrual budgetary accounting be adopted for 
     Federal retirement, military retirement, or Social Security 
     and other entitlements?
       (K) Are off-budget accounts suitable for capturing accruals 
     in the budget?
       (L) What is the appropriate budgetary treatment of--
       (i) purchases and sales of financial assets, including 
     equities, bonds, and foreign currencies;
       (ii) emergency spending;
       (iii) the cost of holding fixed assets (cost of capital);
       (iv) sales of physical assets; and
       (v) seigniorage on coins and currency?
       (M) When policy changes have strong but indirect feedback 
     effects on revenues and other aggregates, should they be 
     reported in budget estimates?
       (N) How should the policies that are one-sided bets on 
     economic events (probabilistic scoring) be represented in the 
     budget?
       (b) Powers of the Commission.--
       (1) Conduct of business.--The Commission may hold hearings, 
     take testimony, receive evidence, and undertake such other 
     activities necessary to carry out its duties.
       (2) Access to information.--The Commission may secure 
     directly from any department or agency of the United States 
     information necessary to carry out its duties. Upon request 
     of the Chair of the Commission, the head of that department 
     or agency shall furnish that information to the Commission.
       (3) Postal service.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the United States.

     SEC. 403. MEMBERSHIP.

       (a) Membership.--The Commission shall be composed of 12 
     members as follows:
       (1) Three members appointed by the chairman of the 
     Committee on the Budget of the Senate.
       (2) Three members appointed by the chairman of the 
     Committee on the Budget of the House of Representatives.
       (3) Three members appointed by the ranking member of the 
     Committee on the Budget of the Senate.
       (4) Three members appointed by the ranking member of the 
     Committee on the Budget of the House of Representatives.
       (b) Qualifications and Term.--
       (1) Qualifications.--Members appointed to the Commission 
     pursuant to subsection (a) shall--
       (A) have expertise and experience in the fields or 
     disciplines related to the subject areas to be considered by 
     the Commission; and
       (B) not be Members of Congress.
       (2) Term of appointment.--The term of an appointment to the 
     Commission shall be for the life of the Commission.
       (3) Chair and vice chair.--The Chair and Vice Chair may be 
     elected from among the members of the Commission. The Vice 
     Chair shall assume the duties of the Chair in the Chair's 
     absence.
       (c) Meetings; Quorum; and Vacancies.--
       (1) Meetings.--The Commission shall meet at least once a 
     month on a day to be decided by the Commission. The 
     Commission may meet at such other times at the call of the 
     Chair or of a majority of its voting members. The meetings of 
     the Commission shall be open to the public, unless by public 
     vote, the Commission shall determine to close a meeting or 
     any portion of a meeting to the public.
       (2) Quorum.--A majority of the voting membership shall 
     constitute a quorum of the Commission, except that 3 or more 
     voting members may conduct hearings.
       (3) Vacancies.--A vacancy on the Commission shall be filled 
     in the same manner in which the original appointment was 
     filled under subsection (a).
       (d) Compensation and Expenses.--Members of the Commission 
     shall serve without pay for their service on the Commission, 
     but may receive travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code.

     SEC. 404. STAFF AND SUPPORT SERVICES.

       (a) Staff.--With the advance approval of the Commission, 
     the executive director may appoint such personnel as is 
     appropriate. The staff of the Commission shall be appointed 
     without regard to political affiliation and without regard to 
     the provisions of title 5, United States Code, governing 
     appointments in the competitive service, and may be paid 
     without regard to the provisions of chapter 51 and subchapter 
     III of chapter 53 of such title relating to classifications 
     and General Schedule pay rates.
       (b) Executive Director.--The Chairman shall appoint an 
     executive director, who shall be paid the rate of basic pay 
     for level II of the Executive Schedule.
       (c) Experts and Consultants.--With the advance approval of 
     the Commission, the executive director may procure temporary 
     and intermittent services under section 3109(b) of title 5, 
     United States Code.
       (d) Technical and Administrative Assistance.--Upon the 
     request of the Commission--
       (1) the head of any agency, office, or establishment within 
     the executive or legislative branches of the United States 
     shall provide, without reimbursement, such technical 
     assistance as the Commission determines is necessary to carry 
     out its duties; and
       (2) the Administrator of the General Services 
     Administration shall provide, on a reimbursable basis, such 
     administrative support services as the Commission may 
     require.
       (e) Detail of Federal Personnel.--Upon the request of the 
     Commission, the head of an agency, office, or establishment 
     in the executive or legislative branch of the United States 
     is authorized to detail, without reimbursement, any of the 
     personnel of that agency, office, or establishment to the 
     Commission to assist the Commission in carrying out its 
     duties. Any such detail shall not interrupt or otherwise 
     affect the employment status or privileges of that employee.
       (f) CBO.--The Director of the Congressional Budget Office 
     shall provide the Commission with its latest research on the 
     accuracy of its past budget and economic projections as 
     compared to those of the Office of Management and Budget and, 
     if possible,

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     those of private sector forecasters. The Commission shall 
     work with the Directors of the Congressional Budget Office 
     and the Office of Management and Budget in their efforts to 
     explain the factors affecting the accuracy of budget 
     projections.

     SEC. 405. REPORT.

       Not later than __________