Text: H.R.3964 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (10/29/2009)


111th CONGRESS
1st Session
H. R. 3964

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


IN THE HOUSE OF REPRESENTATIVES
October 29, 2009

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


A BILL

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

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

SECTION 1. Short title; table of contents.

(a) Short Title.—This Act may be cited as the “Spending, Deficit, and Debt Control Act of 2009”.

(b) Table of Contents.—


Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Purposes.

Sec. 4. Effective date.

Sec. 100. Short title.

Sec. 101. Purposes.

Sec. 102. Timetable.

Sec. 103. Joint resolution on the budget.

Sec. 104. Budget required before spending bills may be considered.

Sec. 105. Amendments to joint resolutions on the budget.

Sec. 111. Repeal of adjustments for emergencies.

Sec. 112. Emergency criteria.

Sec. 113. Development of guidelines for application of emergency definition.

Sec. 114. Reserve fund for emergencies in President’s budget.

Sec. 115. Adjustments and reserve rund for emergencies in joint budget resolutions.

Sec. 116. Application of section 306 to emergencies in excess of amounts in reserve fund.

Sec. 117. Up-to-date tabulations.

Sec. 118. Prohibition on amendments to the emergency reserve fund.

Sec. 121. Effective date.

Sec. 122. Revision of timetable.

Sec. 123. Amendments to the Congressional Budget and Impoundment Control Act of 1974.

Sec. 124. Amendments to Rules of the House of Representatives.

Sec. 125. Two-year appropriations; title and style of appropriation Acts.

Sec. 126. Multiyear authorizations.

Sec. 127. Government strategic and performance plans on a biennial basis.

Sec. 128. Biennial appropriation bills.

Sec. 129. Assistance by Federal agencies to standing committees of the Senate and the House of Representatives.

Sec. 131. Amendment to Title 31.

Sec. 141. Elimination of inflation adjustment.

Sec. 142. The President’s budget.

Sec. 143. The congressional budget.

Sec. 144. Congressional Budget Office reports to committees.

Sec. 145. Treatment of emergencies.

Sec. 200. Short title.

Sec. 201. Discretionary spending limits.

Sec. 202. Direct spending limits.

Sec. 203. Total spending limits.

Sec. 204. Deficit limits.

Sec. 211. Reports and orders.

Sec. 212. Spending and deficit limits enforcement.

Sec. 213. Spending reduction orders.

Sec. 300. Short title; purposes.

Sec. 301. CBO and OMB projections.

Sec. 302. GAO and OMB statements of the Federal Government’s financial condition.

Sec. 303. Five-year Fiscal Sustainability Review.

Sec. 304. Long-term reconciliation.

Sec. 305. Long-term spending increase point of order.

Sec. 400. Short title.

Sec. 401. Review and abolishment of Federal agencies.

Sec. 402. Establishment of commission.

Sec. 403. Review of efficiency and need for Federal agencies.

Sec. 404. Criteria for review.

Sec. 405. Commission oversight.

Sec. 406. Rulemaking authority.

Sec. 407. Relocation of Federal employees.

Sec. 408. Program inventory.

Sec. 409. Definition of agency.

Sec. 410. Short title.

Sec. 411. Legislative line-item veto.

Sec. 412. Technical and conforming amendments.

Sec. 413. Rescission measures considered.

Sec. 420. Short title.

Sec. 421. Establishment of Commission.

Sec. 422. Duties of the Commission.

Sec. 423. Powers of the Commission.

Sec. 424. Commission personnel matters.

Sec. 425. Termination of the Commission.

Sec. 426. Congressional consideration of reform proposals.

Sec. 427. Authorization of appropriations.

Sec. 500. Short title.

Sec. 501. Civil Service Retirement System.

Sec. 502. Central Intelligence Agency Retirement and Disability System.

Sec. 503. Foreign Service Retirement and Disability System.

Sec. 504. Public Health Service Commissioned Corps Retirement System.

Sec. 505. National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement System.

Sec. 506. Coast Guard Military Retirement System.

Sec. 511. Federal Employees Health Benefits Fund.

Sec. 512. Funding Uniformed Services health benefits for all retirees.

Sec. 513. Effective date.

Sec. 521. Joint Select Committee on Earmark Reform.

Sec. 522. Moratorium on consideration of earmarks.

Sec. 531. Limit on public debt.

Sec. 532. Repeal of the Gephardt Rule.

Sec. 541. Market Adjusted Rate for Federal Credit Reform Act of 1990.

Sec. 542. CBO and GAO study.

Sec. 600. Short title.

Sec. 601. Points of order in the House of Representatives and the Senate.

Sec. 602. Point of order waiver protection.

Sec. 603. Application of the limitation on reconciliation legislation.

Sec. 604. Twenty-percent limit on new direct spending in reconciliation legislation.

Sec. 605. Treatment of extraneous appropriations.

Sec. 606. Establishment of Discretionary Deficit Reduction Account.

Sec. 607. Establishment of Mandatory Deficit Reduction Account.

Sec. 608. Conforming amendment.

Sec. 611. Suspension of certain requirements regarding the House of Representatives committee term limits committee.

Sec. 612. Establishment of the select committee on requirements regarding the House of Representatives Budget Committee.

Sec. 613. Procedure.

Sec. 614. Composition.

Sec. 615. Reporting.

Sec. 616. Administrative provisions.

Sec. 617. Dissolution.

Sec. 621. Judicial review.

Sec. 622. Severability.

SEC. 2. Findings.

Congress finds that—

(1) the Congressional Budget Office, the Government Accountability Office, and the chairman of the Federal Reserve have all found that unsustainable fiscal trends, driven by Federal spending, represent a serious threat to the United States economy and the prosperity of the American people;

(2) the current Federal budget process fails to fully allocate resources for national priorities and lacks the means to control Federal spending, deficits, and debt;

(3) budgeting is essential to governing; and

(4) the effectiveness of the budget depends on the strength of the budget process.

SEC. 3. Purposes.

The purposes of this Act are as follows—

(1) to reform and strengthen the Federal budget process by enacting a comprehensive set of sound, reasonable, and enforceable measures;

(2) to properly focus the Federal budget process on controlling spending, deficits, and debt;

(3) to provide Congress with the tools for stronger and more durable control of spending and deficits;

(4) to increase transparency and provide a comprehensive assessment of the budget’s commitments; and

(5) to reform the budget process to give Congress a thorough assessment of the long-term budget commitments, to establish sustainable benchmarks for major programs, and to provide the means to reform major entitlement programs to ensure sustainable levels of Federal spending, deficits, and debt.

SEC. 4. Effective date.

Except as otherwise specifically provided, this Act and the amendments made by this Act shall become effective on the date of enactment of this Act and shall apply with respect to fiscal years beginning after September 30, 2010.

SEC. 100. Short title.

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

SEC. 101. Purposes.

Paragraphs (1) and (2) of section 2 of the Congressional Budget and Impoundment Control Act of 1974 are amended to read as follows:

“(1) to assure effective control over the budgetary process; and

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

SEC. 102. Timetable.

Section 300 of the Congressional Budget Act of 1974 is amended to read as follows:

Timetable

“Sec. 300. The timetable with respect to the Congressional budget process for any fiscal year is as follows:

SEC. 103. Joint resolution on the budget.

(a) Content of Joint Resolutions on the Budget.—Section 301(a)(4) of the Congressional Budget Act of 1974 is amended to read as follows:

“(4) subtotals of new budget authority and outlays for nondefense discretionary spending, defense discretionary spending, Medicare, Medicaid, other direct spending (excluding interest), and interest; and for emergencies (for the reserve fund in section 317(b) and for military operations in section 317(C));”.

(b) Additional Matters in Joint Resolution.—Section 301(b) of the Congressional Budget Act of 1974 is amended as follows:

(1) Strike paragraphs (1), and (6) through (9).

(2) Redesignate paragraphs (2), (3), (4), and (5) accordingly.

(3) Amend paragraph (3), as redesignated, to read as follows:

“(3) set forth such other matters, and require such other procedures, relating to the budget as may be appropriate to carry out the purposes of the Act, but shall not include a suspension or alteration of the application of the motion to strike a provision as set forth in section 310(d)(2) or (h)(2)(F).”.

(c) Required Contents of Report.—Section 301(e)(2) of the Congressional Budget Act of 1974 is amended as follows:

(1) Redesignate subparagraphs (A), (B), (C), (D), (E), and (F) as subparagraphs (B), (C), (E), (F), (H), and (I), respectively.

(2) Before subparagraph (B) (as redesignated), insert the following new subparagraph:

“(A) new budget authority and outlays for each major functional category, based on allocations of the total levels set forth pursuant to subsection (a)(1);”.

(3) In subparagraph (C) (as redesignated), strike “mandatory” and insert “direct spending”.

(4) After subparagraph (C) (as redesignated), insert the following new subparagraph:

“(D) a measure, as a percentage of gross domestic product, of total outlays, total Federal revenues, the surplus or deficit, and new outlays for nondefense discretionary spending, defense spending, Medicare, Medicaid and other direct spending as set forth in such resolution;”.

(5) After subparagraph (F) (as redesignated), insert the following new subparagraph:

“(G) if the joint resolution on the budget includes any allocation to a committee other than the Committee on Appropriations of levels in excess of current law levels, a justification for not subjecting any program, project, or activity (for which the allocation is made) to annual discretionary appropriations;”.

(d) Additional Contents of Report.—Section 301(e)(3) of the Congressional Budget Act of 1974 is amended as follows:

(1) Redesignate subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively, strike subparagraphs (C) and (D), and redesignate subparagraph (E) as subparagraph (D) and strike the period and insert “; and”.

(2) Before subparagraph (B), insert the following new subparagraph:

“(A) new budget authority and outlays for each major functional category, based on allocations of the total levels set forth pursuant to subsection (a)(1);”.

(3) At the end, add the following new subparagraph:

“(E) set forth, if required by subsection (f), the calendar year in which, in the opinion of the Congress, the goals for reducing unemployment set forth in section 4(b) of the Employment Act of 1946 should be achieved.”.

(e) Budget Presentation.—After section 301(e)(3) add the following new paragraph:

“(4) BUDGET FORMAT.—In addition to the contents that may be included in the report pursuant to paragraph (3), a presentation of the functional categories may also be included as follows:

“(A) PRINCIPAL FEDERAL OBLIGATIONS.—Activities intrinsic to the Federal Government (including both discretionary and mandatory spending) as follows:

“(i) National defense;

“(ii) International affairs;

“(iii) Veterans benefits and services; and

“(iv) Administration of justice.

“(B) FEDERALLY SUPPORTED DOMESTIC PRIORITIES.—The total domestic discretionary spending levels as follows:

“(i) Total domestic discretionary spending.

“(ii) Optional inclusion of additional specific recommended levels.

“(C) MAJOR DOMESTIC ENTITLEMENTS.—Major domestic direct spending programs as follows:

“(i) Medicare.

“(ii) Medicaid.

“(iii) Other direct spending.

“(iv) Optional inclusion of additional specific recommended levels.

“(D) GENERAL GOVERNMENT AND FINANCIAL MANAGEMENT.—Funding for financing government operations as follows:

“(i) General government.

“(ii) Net interest.

“(iii) Allowances.

“(iv) Offsetting receipts.”.

(f) President’s Budget Submission to Congress.—(1) The first two sentences of section 1105(a) of title 31, United States Code, are amended to read as follows: “On or after the first Monday in January but not later than the first Monday in February of each year the President shall submit a budget of the United States Government for the following fiscal year which shall set forth the following levels:

“(A) Totals of new budget authority and outlays.

“(B) Total Federal revenues and the amount, if any, by which the aggregate level of Federal revenues should be increased or decreased by bills and resolutions to be reported by the appropriate committees.

“(C) The surplus or deficit in the budget.

“(D) Subtotals of new budget authority and outlays for nondefense discretionary spending, defense discretionary spending, direct spending (excluding interest), and interest, and for emergencies (for the reserve fund in section 317(b) and for military operations in section 317(c).

“(E) The public debt.

Each budget submission shall include a budget message and summary and supporting information and, as a separately delineated statement, the levels requires in the preceding sentence for at least each of the 4 ensuing fiscal years.”.

(2) The third sentence of section 1105(a) of title 31, United States Code, is amended by inserting “submission” after “budget”.

(g) Limitation on the Content of Budget Resolutions.—Section 305 of the Congressional Budget Act of 1974 is amended by adding at the end the following new subsection:

“(e) Limitation on Contents.—(1) It shall not be in order in the House of Representatives or in the Senate to consider any joint resolution on the budget or any amendment thereto or conference report thereon that contains any matter referred to in paragraph (2).

“(2) Any joint resolution on the budget or any amendment thereto or conference report thereon that contains any matter not permitted in section 301(a) or (b) shall not be treated in the House of Representatives or the Senate as a budget resolution under subsection (a) or (b) or as a conference report on a budget resolution under subsection (c) of this section.”.

SEC. 104. Budget required before spending bills may be considered.

(a) Amendments to Section 302.—Section 302 of the Congressional Budget Act of 1974 is amended—

(1) in subsection (a), by striking paragraph (5); and

(2) in subsection (f)(1)(A), by striking “as reported”.

(b) Amendments to Section 303 and Conforming Amendments.—(1) Section 303 of the Congressional Budget Act of 1974 is amended by striking “(a) In General.—”, by striking “has been agreed to” and inserting “takes effect in subsection (a)”, and by striking subsections (b) and (c); and

(2) by striking its section heading and inserting the following new section heading: “consideration of budget-related legislation before budget becomes law”.

(c) Expedited Procedures Upon Veto of Joint Resolution on the Budget.—(1) Title III of the Congressional Budget Act of 1974 is amended by adding after section 315 the following new section:

Expedited Procedures Upon Veto of Joint Resolution on the Budget

“Sec. 316. (a) Special Rule.—If the President vetoes a joint resolution on the budget for a fiscal year, the majority leader of the House of Representatives or Senate (or his designee) shall introduce a concurrent resolution on the budget or joint resolution on the budget for such fiscal year. If the Committee on the Budget of either House fails to report such concurrent or joint resolution referred to it within five calendar days (excluding Saturdays, Sundays, or legal holidays except when that House of Congress is in session) after the date of such referral, the committee shall be automatically discharged from further consideration of such resolution and such resolution shall be placed on the appropriate calendar.

“(b) Procedure in the House of Representatives and the Senate.—

“(1) Except as provided in paragraph (2), the provisions of section 305 for the consideration in the House of Representatives and in the Senate of joint resolutions on the budget and conference reports thereon shall also apply to the consideration of concurrent resolutions on the budget introduced under subsection (a) and conference reports thereon.

“(2) Debate in the Senate on any concurrent resolution on the budget or joint resolution on the budget introduced under subsection (a), and all amendments thereto and debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours and in the House of Representatives such debate shall be limited to not more than 3 hours.

“(c) Contents of Concurrent Resolutions.—Any concurrent resolution on the budget introduced under subsection (a) shall be in compliance with section 301.

“(d) Effect of Concurrent Resolution on the Budget.—Notwithstanding any other provision of this title, whenever a concurrent resolution on the budget described in subsection (a) is agreed to, then the aggregates, allocations, and reconciliation directives (if any) contained in the report accompanying such concurrent resolution or in such concurrent resolution shall be considered to be the aggregates, allocations, and reconciliation directives for all purposes of sections 302, 303, and 311 for the applicable fiscal years and such concurrent resolution shall be deemed to be a joint resolution for all purposes of this title and the Rules of the House of Representatives and any reference to the date of enactment of a joint resolution on the budget shall be deemed to be a reference to the date agreed to when applied to such concurrent resolution.”.

(2) The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 315 the following new item:


“Sec. 316. Expedited procedures upon veto of joint resolution on the budget.”.

SEC. 105. Amendments to joint resolutions on the budget.

(a) Definition.—Paragraph (4) of section 3 of the Congressional Budget Act of 1974 is amended to read as follows:

“(4) the term ‘joint resolution on the budget’ means—

“(A) a joint resolution setting forth the budget for the United States Government for a fiscal year as provided in section 301; and

“(B) any other joint resolution revising the budget for the United States Government for a fiscal year as described in section 304.”.

(b) Additional Amendments to the Congressional Budget and Impoundment Control Act of 1974.—(1)(A) Sections 301, 302, 303, 305, 308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.) are amended by striking “concurrent” each place it appears and inserting “joint”.

(B) Section 301 of the Congresional Budget Act of 1974 is further amended by striking the last sentence.

(C)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the Congressional Budget Act of 1974 are amended by striking “most recently agreed to concurrent resolution on the budget” each place it occurs and inserting “most recently enacted joint resolution on the budget or agreed to concurrent resolution on the budget (as applicable)”.

(ii) The section heading of section 301 is amended by striking “annual adoption of concurrent resolution” and inserting “joint resolutions”; and

(iii) Section 304 of such Act is amended to read as follows:

Permissible Revisions of Budget Resolutions

“Sec. 304. At any time after the joint resolution on the budget for a fiscal year has been enacted pursuant to section 301, and before the end of such fiscal year, the two Houses and the President may enact a joint resolution on the budget which revises or reaffirms the joint resolution on the budget for such fiscal year most recently enacted, and for purposes of the enforcement of the Congressional Budget Act of 1974, the chairman of the Budget Committee of the House of Representatives or the Senate, as applicable, may adjust levels as needed for the enforcement off of the budget resolution.”.

(D) Sections 302, 303, 310, and 311, of such Act are amended by striking “agreed to” each place it appears and by inserting “enacted”.

(2)(A) Paragraph (4) of section 3 of the Congressional Budget and Impoundment Control Act of 1974 is amended by striking “concurrent” each place it appears and by inserting “joint”.

(B) The table of contents set forth in section 1(b) of such Act is amended—

(i) in the item relating to section 301, by striking “Annual adoption of concurrent resolution” and inserting “Joint resolutions”;

(ii) by striking the item relating to section 303 and inserting the following:


“Sec. 303. Consideration of budget-related legislation before budget becomes law.”.

(iii) by striking “concurrent” and inserting “joint” in the item relating to section 305.

(c) Conforming Amendments to the Rules of the House of Representatives.—Clauses 1(d)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), and 4(f)(2) of rule X, clause 10 of rule XVIII, clause 10 of rule XX, and clauses 7 and 10 of rule XXI of the Rules of the House of Representatives are amended by striking “concurrent” each place it appears and inserting “joint”.

(d) Conforming Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985.—Section 258C(b)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is amended by striking “concurrent” and inserting “joint”.

(e) Conforming Amendments to Section 310 Regarding Reconciliation Directives.—(1) The side heading of section 310(a) of the Congressional Budget Act of 1974 (as amended by section 105(b)) is further amended by inserting “Joint Explanatory Statement Accompanying Conference Report on” before “Joint”.

(2) Section 310(a) of such Act is amended by striking “A” and inserting “The joint explanatory statement accompanying the conference report on a”.

(3) The first sentence of section 310(b) of such Act is amended by striking “If” and inserting “If the joint explanatory statement accompanying the conference report on”.

(4) Section 310(c)(1) of such Act is amended by inserting “the joint explanatory statement accompanying the conference report on” after “pursuant to”.

(f) Conforming Amendments to Section 3 Regarding Direct Spending.—Section 3 of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding at the end the following new paragraph:

“(11) The term ‘direct spending’ has the meaning given to such term in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985.”.

SEC. 111. Repeal of adjustments for emergencies.

(a) Elimination of Emergency Designation.—Sections 251(b)(2)(A), 252(e), and 252(d)(4)(B) of the Balanced Budget and Emergency Deficit Control Act of 1985 are repealed.

(b) Elimination of Emergency Adjustments.—Section 314(b) of the Congressional Budget Act of 1974 is amended by striking paragraph (1) and by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively.

(c) Conforming Amendment.—Clause 2 of rule XXI of the Rules of the House of Representatives is amended by repealing paragraph (e) and by redesignating paragraph (f) as paragraph (e).

SEC. 112. Emergency criteria.

(a) Definition of Emergency.—Section 3 of the Congressional Budget and Impoundment Control Act of 1974 (as amended by section 105(f)) is further amended by adding at the end the following new paragraph:

“(12)(A) The term ‘emergency’ means a situation that—

“(i) requires new budget authority and outlays (or new budget authority and the outlays flowing therefrom) for the prevention or mitigation of, or response to, loss of life or property, or a threat to national security; and

“(ii) is unanticipated.

“(B) As used in subparagraph (A), the term ‘unanticipated’ means that the situation is—

“(i) sudden, which means quickly coming into being or not building up over time;

“(ii) urgent, which means a pressing and compelling need requiring immediate action;

“(iii) unforeseen, which means not predicted or anticipated as an emerging need; and

“(iv) temporary, which means not of a permanent duration.”.

(b) Conforming Amendment.—The term “emergency” has the meaning given to such term in section 3 of the Congressional Budget and Impoundment Control Act of 1974.

SEC. 113. Development of guidelines for application of emergency definition.

Not later than 5 months after the date of enactment of this Act, the chairmen of the Committees on the Budget (in consultation with the President) shall, after consulting with the chairmen of the Committees on Appropriations and applicable authorizing committees of their respective Houses and the Directors of the Congressional Budget Office and the Office of Management and Budget, jointly publish in the Congressional Record guidelines for application of the definition of emergency set forth in section 3(12) of the Congressional Budget and Impoundment Control Act of 1974.

SEC. 114. Reserve fund for emergencies in President’s budget.

Section 1105(f) of title 31, United States Code, is amended by adding at the end the following new sentence: “Such budget submission shall also comply with the requirements of subsections (b) and (c) of section 317 of the Congressional Budget Act of 1974 and, in the case of any budget authority requested for an emergency, such submission shall include a detailed justification of why such emergency is an emergency within the meaning of section 3(12) of the Congressional Budget Act of 1974.”.

SEC. 115. Adjustments and reserve fund for emergencies in joint budget resolutions.

(a) Emergencies.—Title III of the Congressional Budget Act of 1974 (as amended by section 104(c)) is further amended by adding at the end the following new section:

Emergencies

“Sec. 317. (a) Adjustments.—

“(1) ADJUSTMENT AUTHORITY.—Except as provided by subsection (b)(4), if a bill or joint resolution is reported, or an amendment is offered thereto (or considered as adopted) or a conference report is filed thereon, that provides new budget authority (and outlays flowing therefrom), and such provision is designated as an emergency pursuant to this section, the chairman of the Committee on the Budget of the House of Representatives or the Senate, as applicable, shall make adjustments to the allocations and aggregates set forth in the most recently agreed to joint resolution on the budget, for the purpose of enforcing the points of order set forth in title III of the Congressional Budget Act of 1974, up to the amount of such provisions if such chairman determines and certifies, pursuant to the guidelines referred to in section 113 of the Spending, Deficit, and Debt Control Act of 2009, the portion (if any) of the amount so specified that is for an emergency within the meaning of section 3(12).

“(2) LIMITATION ON ADJUSTMENT AUTHORITY.—The adjustments referred to in paragraph (1) made to the allocations made pursuant to section 302(a) shall not exceed the amount reserved for emergencies pursuant to the requirements of subsections (b) and (c).

“(3) EMERGENCY AMOUNTS EXCEEDING ADJUSTMENT AUTHORITY.—Before any adjustment is made pursuant to this section for any bill, joint resolution, concurrent resolution, or conference report that designates a provision an emergency, the enactment of which causes the total amount of the reserve fund to be exceeded:

“(A) The chairman of the Committee on the Budget of the House of Representatives or the Senate shall convene a meeting of that committee, where it shall be in order, subject to the terms set forth in this section, for one motion described in subparagraph (B) to be made to authorize the chairman to make adjustments above the maximum amount of adjustments set forth in subsection (a).

“(B) The motion referred to in subparagraph (A) shall be in the following form: ‘I move that the chairman of the Committee on the Budget be authorized to adjust the allocations and aggregates set forth in the joint resolution on the budget for fiscal year ____ by the following amount: $____ for fiscal year ____.’, with the second blank being filled in with amount determined by the chairman of the Committee on the Budget and the first and third blank being filled in by the applicable fiscal year.

“(C) The motion set forth in subparagraph (B) shall be open for debate and amendment, but any amendment offered thereto is only in order if limited to changing an amount in the motion.

“(D) The chairman of the applicable Committee on the Budget may make any adjustments he deems necessary under this section if he determines the enactment of any provision designated as an emergency is essential to respond to an urgent and imminent need, the chairman determines that exceptional circumstances exist and the committee cannot convene to consider the motion referred to in this section in a timely fashion.

“(4) The adjustments made pursuant to subsection (a)(1) or (2) shall—

“(A) apply while that bill, joint resolution, conference report, or amendment is under consideration; and

“(B) take effect upon the enactment of that legislation.

“(5) Such bill or joint resolution shall be referred to the Committee on the Budget of the House of Representatives or the Senate with instructions to report it without amendment, other than that specified in paragraph (2), within 5 legislative days of the day in which it is reported from the originating committee. If the Committee on the Budget of either House fails to report a bill or joint resolution referred to it under this paragraph within such 5-day period, the committee shall be automatically discharged from further consideration of such bill or joint resolution and such bill or joint resolution shall be placed on the appropriate calendar.

“(6) An amendment to such a bill or joint resolution referred to in this subsection shall only consist of an exemption from section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 of all or any part of the provisions that provide budget authority (and the outlays flowing therefrom) for such emergency if the committee determines, pursuant to the guidelines referred to in section 113 of the Spending, Deficit, and Debt Control Act of 2009, that such budget authority is for an emergency within the meaning of section 3(12).

“(b) Reserve Fund.—The amount set forth in the reserve fund for emergencies for budget authority and outlays for a fiscal year pursuant to section 301(a)(4) shall equal:

“(1) The average of the enacted levels of budget authority for emergencies (other than those covered by subsection (c)) in the 10 fiscal years preceding the current year; omitting in such average the fiscal years with the highest and lowest levels of budget authority.

“(2) The average of the levels of outlays for emergencies in the 10 fiscal years preceding the current year flowing from the budget authority referred to in paragraph (1), but only in the fiscal year for which such budget authority first becomes available for obligation.

“(3) The adjustments made pursuant to subsection (a)(1) or (2) shall—

“(A) apply while that bill, joint resolution, conference report, or amendment is under consideration; and

“(B) take effect upon the enactment of that legislation.

“(4) Such bill or joint resolution shall be referred to the Committee on the Budget of the House of Representatives or the Senate with instructions to report it without amendment, other than that specified in paragraph (2), within 5 legislative days of the day in which it is reported from the originating committee. If the Committee on the Budget of either House fails to report a bill or joint resolution referred to it under this paragraph within such 5-day period, the committee shall be automatically discharged from further consideration of such bill or joint resolution and such bill or joint resolution shall be placed on the appropriate calendar.

“(5) An amendment to such a bill or joint resolution referred to in this subsection shall only consist of an exemption from section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 of all or any part of the provisions that provide budget authority (and the outlays flowing therefrom) for such emergency if the committee determines, pursuant to the guidelines referred to in section 113 of the Spending, Deficit, and Debt Control Act of 2009, that such budget authority is for an emergency within the meaning of section 3(12).

“(c) Treatment of Emergencies To Fund Certain Military Operations.—Whenever the Committee on Appropriations reports any bill or joint resolution that provides budget authority for any emergency that is a threat to national security and the funding of which carries out a military operation authorized by a declaration of war or a joint resolution authorizing the use of military force (or economic assistance funding in furtherance of such operation) and the report accompanying that bill or joint resolution identifies any provision that increases outlays or provides budget authority (and the outlays flowing therefrom) for such emergency, the enactment of which causes the total amount of budget authority or outlays provided for emergencies for the budget year in the joint resolution on the budget (pursuant to section 301(a)(4)) to be exceeded:

“(1) Such bill or joint resolution shall be referred to the Committee on the Budget of the House of Representatives or the Senate, as the case may be, with instructions to report it without amendment, other than that specified in paragraph (2), within 5 legislative days of the day in which it is reported from the originating committee. If the Committee on the Budget of either House fails to report a bill or joint resolution referred to it under this paragraph within such 5-day period, the committee shall be automatically discharged from further consideration of such bill or joint resolution and such bill or joint resolution shall be placed on the appropriate calendar.

“(2) An amendment to such a bill or joint resolution referred to in this subsection shall only consist of an exemption from section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 of all or any part of the provisions that provide budget authority (and the outlays flowing therefrom) for such emergency if the committee determines, pursuant to the guidelines referred to in section 113 of the Spending, Deficit, and Debt Control Act of 2009, that such budget authority is for an emergency within the meaning of section 3(12).

“(3) If such a bill or joint resolution is reported with an amendment specified in paragraph (2) by the Committee on the Budget of the House of Representatives or the Senate, then the budget authority and resulting outlays that are the subject of such amendment shall not be included in any determinations under section 302(f) or 311(a) for any bill, joint resolution, amendment, motion, or conference report.”.

(b) Conforming Amendment.—The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 316 the following new item:


“Sec. 317. Emergencies.”.

SEC. 116. Application of section 306 to emergencies in excess of amounts in reserve fund.

Section 306 of the Congressional Budget Act of 1974 is amended by inserting at the end the following new sentence: “No amendment reported by the Committee on the Budget (or from the consideration of which such committee has been discharged) pursuant to section 317 may be amended.”.

SEC. 117. Up-to-date tabulations.

Section 308(b)(2) of the Congressional Budget Act of 1974 is amended by striking “and” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “; and”, and by adding at the end the following new subparagraph:

“(D) shall include an up-to-date tabulation of amounts remaining in the reserve fund for emergencies.”.

SEC. 118. Prohibition on amendments to the emergency reserve fund.

(a) Point of Order.—Section 305 of the Congressional Budget Act of 1974 (as amended by section 103(f)) is further amended by adding at the end the following new subsection:

“(f) Point of Order Regarding Emergency Reserve Fund.—It shall not be in order in the House of Representatives or in the Senate to consider an amendment to a joint resolution on the budget which changes the amount of budget authority and outlays set forth in section 301(a)(4) for the emergency reserve fund.”.

(b) Technical Amendment.—(1) Section 904(C)(1) of the Congressional Budget Act of 1974 is amended by inserting “305(e), 305(f),” after “305(c)(4),”.

(2) Section 904(d)(2) of the Congressional Budget Act of 1974 is amended by inserting “305(e), 305(f),” after “305(c)(4),”.

SEC. 121. Effective date.

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

SEC. 122. Revision of timetable.

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

Timetable

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


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

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

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


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

SEC. 123. Amendments to the Congressional Budget and Impoundment Control Act of 1974.

(a) Declaration of Purpose.—Section 2(2) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended by striking “each year” and inserting “biennially”.

(b) Definitions.—

(1) BUDGET RESOLUTION.—Section 3(4) of such Act (2 U.S.C. 622(4)) is amended by striking “fiscal year” each place it appears and inserting “biennium”.

(2) BIENNIUM.—Section 3 of such Act (2 U.S.C. 622) (as amended by section 113(a)) is further amended by adding at the end the following new paragraph:

“(13) The term ‘biennium’ means the period of 2 consecutive fiscal years beginning on October 1 of any odd-numbered year.”.

(c) Biennial Joint Resolution on the Budget.—

(1) CONTENTS OF RESOLUTION.—Section 301(a) of such Act (2 U.S.C. 632(a)) is amended—

(A) in the matter preceding paragraph (1) by—

(i) striking “April 15 of each year” and inserting “May 15 of each odd-numbered year”;

(ii) striking “the fiscal year beginning on October 1 of such year” the first place it appears and inserting “the biennium beginning on October 1 of such year”;

(iii) striking “the fiscal year beginning on October 1 of such year” the second place it appears and inserting “each fiscal year in such period”; and

(iv) striking “each of the four ensuing fiscal years” and inserting “each fiscal year in the next 2 bienniums”;

(B) in paragraph (6), by striking “for the fiscal year” and inserting “for each fiscal year in the biennium”; and

(C) in paragraph (7), by striking “for the fiscal year” and inserting “for each fiscal year in the biennium”.

(2) ADDITIONAL MATTERS.—Section 301(b) of such Act (2 U.S.C. 632(b)) is amended—

(A) in paragraph (3), by striking “for such fiscal year” and inserting “for either fiscal year in such biennium”; and

(B) in paragraph (7), by striking “for the first fiscal year” and inserting “for each fiscal year in the biennium”.

(3) VIEWS OF OTHER COMMITTEES.—Section 301(d) of such Act (2 U.S.C. 632(d)) is amended by inserting “(or, if applicable, as provided by section 300(b))” after “United States Code”.

(4) HEARINGS.—Section 301(e)(1) of such Act (2 U.S.C. 632(e)) is amended by—

(A) striking “fiscal year” and inserting “biennium”; and

(B) inserting after the second sentence the following: “On or before April 1 of each odd-numbered year (or, if applicable, as provided by section 300(b)), the Committee on the Budget of each House shall report to its House the joint resolution on the budget referred to in subsection (a) for the biennium beginning on October 1 of that year.”.

(5) GOALS FOR REDUCING UNEMPLOYMENT.—Section 301(f) of such Act (2 U.S.C. 632(f)) is amended by striking “fiscal year” each place it appears and inserting “biennium”.

(6) ECONOMIC ASSUMPTIONS.—Section 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is amended by striking “for a fiscal year” and inserting “for a biennium”.

(7) SECTION HEADING.—The section heading of section 301 of such Act is amended by striking “annual” and inserting “biennial”.

(8) TABLE OF CONTENTS.—The item relating to section 301 in the table of contents set forth in section 1(b) of such Act is amended by striking “Annual” and inserting “Biennial”.

(d) Committee Allocations.—Section 302 of such Act (2 U.S.C. 633) is amended—

(1) in subsection (a)(1) by—

(A) striking “for the first fiscal year of the resolution,” and inserting “for each fiscal year in the biennium,”;

(B) striking “for that period of fiscal years” and inserting “for all fiscal years covered by the resolution”; and

(C) striking “for the fiscal year of that resolution” and inserting “for each fiscal year in the biennium”;

(2) in subsection (f)(1), by striking “for a fiscal year” and inserting “for a biennium”;

(3) in subsection (f)(1), by striking “first fiscal year” and inserting “either fiscal year of the biennium”;

(4) in subsection (f)(2)(A), by—

(A) striking “first fiscal year” and inserting “each fiscal year of the biennium”; and

(B) striking “the total of fiscal years” and inserting “the total of all fiscal years covered by the resolution”; and

(5) in subsection (g)(1)(A), by striking “April” and inserting “May”.

(e) Section 303 Point of Order.—Section 303 of such Act (2 U.S.C. 634(a)) is amended by striking “for a fiscal year” and inserting “for a biennium” and by striking “the first fiscal year” and inserting “each fiscal year of the biennium”.

(f) Permissible Revisions of Joint Resolutions on the Budget.—Section 304 of such Act (2 U.S.C. 635) is amended—

(1) by striking “fiscal year” the first two places it appears and inserting “biennium”;

(2) by striking “for such fiscal year”; and

(3) by inserting before the period “for such biennium”.

(g) Procedures for Consideration of Budget Resolutions.—Section 305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended by striking “fiscal year” and inserting “biennium”.

(h) Completion of House Committee Action on Appropriation Bills.—Section 307 of such Act (2 U.S.C. 638) is amended—

(1) by striking “each year” and inserting “each odd-numbered year (or, if applicable, as provided by section 300(b), July 1)”;

(2) by striking “annual” and inserting “biennial”;

(3) by striking “fiscal year” and inserting “biennium”; and

(4) by striking “that year” and inserting “each odd-numbered year”.

(i) Completion of House Action on Regular Appropriation Bills.—Section 309 of such Act (2 U.S.C. 640) is amended—

(1) by striking “It” and inserting “Except whenever section 300(b) is applicable, it”;

(2) by inserting “of any odd-numbered calendar year” after “July”;

(3) by striking “annual” and inserting “biennial”; and

(4) by striking “fiscal year” and inserting “biennium”.

(j) Reconciliation Process.—Section 310 of such Act (2 U.S.C. 641) is amended—

(1) in subsection (a), in the matter preceding paragraph (1), by striking “any fiscal year” and inserting “any biennium”;

(2) in subsection (a)(1), by striking “such fiscal year” each place it appears and inserting “any fiscal year covered by such resolution”; and

(3) by striking subsection (f) and redesignating subsection (g) as subsection (f).

(k) Section 311 Point of Order.—

(1) IN THE HOUSE OF REPRESENTATIVES.—Section 311(a)(1) of such Act (2 U.S.C. 642(a)) is amended—

(A) by striking “for a fiscal year” and inserting “for a biennium”;

(B) by striking “the first fiscal year” each place it appears and inserting “either fiscal year of the biennium”; and

(C) by striking “that first fiscal year” and inserting “each fiscal year in the biennium”.

(2) IN THE SENATE.—Section 311(a)(2) of such Act is amended—

(A) in subparagraph (A), by striking “for the first fiscal year” and inserting “for either fiscal year of the biennium”; and

(B) in subparagraph (B)—

(i) by striking “that first fiscal year” the first place it appears and inserting “each fiscal year in the biennium”; and

(ii) by striking “that first fiscal year and the ensuing fiscal years” and inserting “all fiscal years”.

(3) SOCIAL SECURITY LEVELS.—Section 311(a)(3) of such Act is amended by—

(A) striking “for the first fiscal year” and inserting “each fiscal year in the biennium”; and

(B) striking “that fiscal year and the ensuing fiscal years” and inserting “all fiscal years”.

(l) Maximum Deficit Amount Point of Order.—Section 312(c) of the Congressional Budget Act of 1974 (2 U.S.C. 643) is amended—

(1) by striking “for a fiscal year” and inserting “for a biennium”;

(2) in paragraph (1), by striking “first fiscal year” and inserting “either fiscal year in the biennium”;

(3) in paragraph (2), by striking “that fiscal year” and inserting “either fiscal year in the biennium”; and

(4) in the matter following paragraph (2), by striking “that fiscal year” and inserting “the applicable fiscal year”.

SEC. 124. Amendments to Rules of the House of Representatives.

(a) Clause 4(a)(1)(A) of rule X of the Rules of the House of Representatives is amended by inserting “odd-numbered” after “each”.

(b) Clause 4(a)(4) of rule X of the Rules of the House of Representatives is amended by striking “fiscal year” and inserting “biennium”.

(c) Clause 4(b)(2) of rule X of the Rules of the House of Representatives is amended by striking “each fiscal year” and inserting “the biennium”.

(d) Clause 4(b) of rule X of the Rules of the House of Representatives is amended by striking “and” at the end of subparagraph (5), by striking the period and inserting “; and” at the end of subparagraph (6), and by adding at the end the following new subparagraph:

“(7) use the second session of each Congress to study issues with long-term budgetary and economic implications, including holding hearings to receive testimony from committees of jurisdiction to identify problem areas and to report on the results of oversight; and by January 1 of each odd-number year, issuing a report to the Speaker which identifies the key issues facing the Congress in the next biennium.”.

(e) Clause 4(e) of rule X of the Rules of the House of Representatives is amended by striking “annually” each place it appears and inserting “biennially” and by striking “annual” and inserting “biennial”.

(f) Clause 4(f) of rule X of the Rules of the House of Representatives is amended—

(1) by inserting “during each odd-numbered year” after “submits his budget”;

(2) by striking “fiscal year” the first place it appears and inserting “biennium”; and

(3) by striking “that fiscal year” and inserting “each fiscal year in such ensuing biennium”.

(g) Clause 11(i) of rule X of the Rules of the House of Representatives is amended by striking “during the same or preceding fiscal year”.

(h) Clause 3(d)(2)(A) of rule XIII of the Rules of the House of Representatives is amended by striking “five” both places it appears and inserting “six”.

(i) Clause 5(a)(1) of rule XIII of the Rules of the House of Representatives is amended by striking “fiscal year after September 15 in the preceding fiscal year” and inserting “biennium after September 15 of the calendar year in which such biennium begins”.

SEC. 125. Two-year appropriations; title and style of appropriation Acts.

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

§ 105. Title and style of appropriations Acts

“(a) The style and title of all Acts making appropriations for the support of the Government shall be as follows: ‘An Act making appropriations (here insert the object) for each fiscal year in the biennium of fiscal years (here insert the fiscal years of the biennium).’.

“(b) All Acts making regular appropriations for the support of the Government shall be enacted for a biennium and shall specify the amount of appropriations provided for each fiscal year in such period.

“(c) For purposes of this section, the term ‘biennium’ has the same meaning as in section 3(13) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 622(13)).”.

SEC. 126. Multiyear authorizations.

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

Multiyear authorizations of appropriations

“Sec. 318. (a) It shall not be in order in the House of Representatives or the Senate to consider any measure that contains a specific authorization of appropriations for any purpose unless the measure includes such a specific authorization of appropriations for that purpose for not less than each fiscal year in one or more bienniums.

“(b)(1) For purposes of this section, a specific authorization of appropriations is an authorization for the enactment of an amount of appropriations or amounts not to exceed an amount of appropriations (whether stated as a sum certain, as a limit, or as such sums as may be necessary) for any purpose for a fiscal year.

“(2) Subsection (a) does not apply with respect to an authorization of appropriations for a single fiscal year for any program, project, or activity if the measure containing that authorization includes a provision expressly stating the following: ‘Congress finds that no authorization of appropriation will be required for [Insert name of applicable program, project, or activity] for any subsequent fiscal year.’.

“(c) For purposes of this section, the term ‘measure’ means a bill, joint resolution, amendment, motion, or conference report.”.

(b) Amendment to Table of Contents.—The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding after the item relating to section 317 the following new item:


“Sec. 318. Multiyear authorizations of appropriations.”.

SEC. 127. Government strategic and performance plans on a biennial basis.

(a) Strategic Plans.—Section 306 of title 5, United States Code, is amended—

(1) in subsection (a), by striking “September 30, 1997” and inserting “September 30, 2010”;

(2) in subsection (b)—

(A) by striking “at least every three years” and all that follows thereafter and inserting “at least every 4 years, except that strategic plans submitted by September 30, 2010, shall be updated and revised by September 30, 2012”; and

(B) by striking “five years forward” and inserting “six years forward”; and

(3) in subsection (c), by inserting a comma after “section” the second place it appears and adding “including a strategic plan submitted by September 30, 2010, meeting the requirements of subsection (a)”.

(b) Budget Contents and Submission to Congress.—Paragraph (28) of section 1105(a) of title 31, United States Code, is amended by striking “beginning with fiscal year 1999, a” and inserting “beginning with fiscal year 2012, a biennial”.

(c) Performance Plans.—Section 1115 of title 31, United States Code, is amended—

(1) in subsection (a)—

(A) in the matter before paragraph (1) by striking “an annual” and inserting “a biennial”;

(B) in paragraph (1) by inserting after “program activity” the following: “for both years 1 and 2 of the biennial plan”;

(C) in paragraph (5) by striking “and” after the semicolon;

(D) in paragraph (6) by striking the period and inserting a semicolon; and inserting “and” after the inserted semicolon; and

(E) by adding after paragraph (6) the following:

“(7) cover each fiscal year of the biennium beginning with the first fiscal year of the next biennial budget cycle.”;

(2) in subsection (d) by striking “annual” and inserting “biennial”; and

(3) in paragraph (6) of subsection (g) by striking “annual” and inserting “biennial”.

(d) Managerial Accountability and Flexibility.—Section 9703 of title 31, United States Code, relating to managerial accountability, is amended—

(1) in subsection (a)—

(A) in the first sentence by striking “annual”; and

(B) by striking “section 1105(a)(29)” and inserting “section 1105(a)(28)”;

(2) in subsection (e)—

(A) in the first sentence by striking “one or” before “two years”;

(B) in the second sentence by striking “a subsequent year” and inserting “for a subsequent 2-year period”; and

(C) in the third sentence by striking “three” and inserting “four”.

(e) Strategic Plans.—Section 2802 of title 39, United States Code, is amended—

(1) in subsection (a), by striking “September 30, 1997” and inserting “September 30, 2010”;

(2) in subsection (b), by striking “at least every three years” and inserting “at least every 4 years except that strategic plans submitted by September 30, 2010, shall be updated and revised by September 30, 2013”;

(3) in subsection (b), by striking “five years forward” and inserting “six years forward”; and

(4) in subsection (c), by inserting a comma after “section” the second place it appears and inserting “including a strategic plan submitted by September 30, 2010, meeting the requirements of subsection (a)”.

(f) Performance Plans.—Section 2803(a) of title 39, United States Code, is amended—

(1) in the matter before paragraph (1), by striking “an annual” and inserting “a biennial”;

(2) in paragraph (1), by inserting after “program activity” the following: “for both years 1 and 2 of the biennial plan”;

(3) in paragraph (5), by striking “and” after the semicolon;

(4) in paragraph (6), by striking the period and inserting “; and”; and

(5) by adding after paragraph (6) the following:

“(7) cover each fiscal year of the biennium beginning with the first fiscal year of the next biennial budget cycle.”.

(g) Committee Views of Plans and Reports.—Section 301(d) of the Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the end “Each committee of the Senate or the House of Representatives shall review the strategic plans, performance plans, and performance reports, required under section 306 of title 5, United States Code, and sections 1115 and 1116 of title 31, United States Code, of all agencies under the jurisdiction of the committee. Each committee may provide its views on such plans or reports to the Committee on the Budget of the applicable House.”.

SEC. 128. Biennial appropriation bills.

(a) In the House of Representatives.—Clause 2(a) of rule XXI of the Rules of the House of Representatives is amended by adding at the end the following new subparagraph:

“(3)(A) Except as provided by subdivision (B), an appropriation may not be reported in a general appropriation bill (other than a supplemental appropriation bill), and may not be in order as an amendment thereto, unless it provides new budget authority or establishes a level of obligations under contract authority for each fiscal year of a biennium.

“(B) Subdivision (A) does not apply with respect to an appropriation for a single fiscal year for any program, project, or activity if the bill or amendment thereto containing that appropriation includes a provision expressly stating the following: ‘Congress finds that no additional funding beyond one fiscal year will be required and the [Insert name of applicable program, project, or activity] will be completed or terminated after the amount provided has been expended.’.

“(C) For purposes of paragraph (b), the statement set forth in subdivision (B) with respect to an appropriation for a single fiscal year for any program, project, or activity may be included in a general appropriation bill or amendment thereto.”.

(b) Conforming Amendment.—Clause 5(b)(1) of rule XXII of the House of Representatives is amended by striking “or (C)” and inserting “or (3) or 2(C)”.

SEC. 129. Assistance by Federal agencies to standing committees of the Senate and the House of Representatives.

(a) Information Regarding Agency Appropriations Requests.—To assist each standing committee of the House of Representatives and the Senate in carrying out its responsibilities, the head of each Federal agency which administers the laws or parts of laws under the jurisdiction of such committee shall provide to such committee such studies, information, analyses, reports, and assistance as may be requested by the chairman and ranking minority member of the committee.

(b) Information Regarding Agency Program Administration.—To assist each standing committee of the House of Representatives and the Senate in carrying out its responsibilities, the head of any agency shall furnish to such committee documentation, containing information received, compiled, or maintained by the agency as part of the operation or administration of a program, or specifically compiled pursuant to a request in support of a review of a program, as may be requested by the chairman and ranking minority member of such committee.

(c) Summaries by Comptroller General.—Within 30 days after the receipt of a request from a chairman and ranking minority member of a standing committee having jurisdiction over a program being reviewed and studied by such committee under this section, the Comptroller General of the United States shall furnish to such committee summaries of any audits or reviews of such program which the Comptroller General has completed during the preceding 6 years.

(d) Congressional Assistance.—Consistent with their duties and functions under law, the Comptroller General of the United States, the Director of the Congressional Budget Office, and the Director of the Congressional Research Service shall continue to furnish (consistent with established protocols) to each standing committee of the House of Representatives or the Senate such information, studies, analyses, and reports as the chairman and ranking minority member may request to assist the committee in conducting reviews and studies of programs under this section.

SEC. 131. Amendment to title 31.

(a) In General.—Chapter 13 of title 31, United States Code, is amended by inserting after section 1310 the following new section:

§ 1311. Continuing appropriations

“(a)(1) If any regular appropriation bill for a fiscal year (or, if applicable, for each fiscal year in a biennium) does not become law before the beginning of such fiscal year or a joint resolution making continuing appropriations is not in effect, there are appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, excluding any budget authority designated as an emergency or temporary funding for projects or activities that are not part of ongoing operations, to such sums as may be necessary to continue any project or activity for which funds were provided in the preceding fiscal year—

“(A) in the corresponding regular appropriation Act for such preceding fiscal year; or

“(B) if the corresponding regular appropriation bill for such preceding fiscal year did not become law, then in a joint resolution making continuing appropriations for such preceding fiscal year.

“(2) Appropriations and funds made available, and authority granted, for a project or activity for any fiscal year pursuant to this section shall be at a rate of operations not in excess of the lower of—

“(A) the rate of operations provided for in the regular appropriation Act providing for such project or activity for the preceding fiscal year;

“(B) in the absence of such an Act, the rate of operations provided for such project or activity pursuant to a joint resolution making continuing appropriations for such preceding fiscal year;

“(C) the rate of operations provided for in the regular appropriation bill as passed by the House of Representatives or the Senate for the fiscal year in question, except that the lower of these two versions shall be ignored for any project or activity for which there is a budget request if no funding is provided for that project or activity in either version; or

“(D) the annualized rate of operations provided for in the most recently enacted joint resolution making continuing appropriations for part of that fiscal year or any funding levels established under the provisions of this Act.

“(3) Appropriations and funds made available, and authority granted, for any fiscal year pursuant to this section for a project or activity shall be available for the period beginning with the first day of a lapse in appropriations and ending with the earlier of—

“(A) the date on which the applicable regular appropriation bill for such fiscal year becomes law (whether or not such law provides for such project or activity) or a continuing resolution making appropriations becomes law, as the case may be; or

“(B) the last day of such fiscal year.

“(b) An appropriation or funds made available, or authority granted, for a project or activity for any fiscal year pursuant to this section shall be subject to the terms and conditions imposed with respect to the appropriation made or funds made available for the preceding fiscal year, or authority granted for such project or activity under current law.

“(c) Appropriations and funds made available, and authority granted, for any project or activity for any fiscal year pursuant to this section shall cover all obligations or expenditures incurred for such project or activity during the portion of such fiscal year for which this section applies to such project or activity.

“(d) Expenditures made for a project or activity for any fiscal year pursuant to this section shall be charged to the applicable appropriation, fund, or authorization whenever a regular appropriation bill or a joint resolution making continuing appropriations until the end of a fiscal year providing for such project or activity for such period becomes law.

“(e) This section shall not apply to a project or activity during a fiscal year if any other provision of law (other than an authorization of appropriations)—

“(1) makes an appropriation, makes funds available, or grants authority for such project or activity to continue for such period; or

“(2) specifically provides that no appropriation shall be made, no funds shall be made available, or no authority shall be granted for such project or activity to continue for such period.

“(f) For purposes of this section, the term ‘regular appropriation bill’ means any annual appropriation bill making appropriations, otherwise making funds available, or granting authority, for any of the following categories of projects and activities:

“(1) Agriculture, rural development, Food and Drug Administration, and related agencies programs.

“(2) The Department of Defense.

“(3) Energy and water development, and related agencies.

“(4) State, foreign operations, and related programs.

“(5) The Department of Homeland Security.

“(6) The Department of the Interior, Environmental Protection Agency, and related agencies.

“(7) The Departments of Labor, Health and Human Services, and Education, and related agencies.

“(8) Military construction, veterans affairs, and related agencies.

“(9) Science, the Departments of State, Justice, and Commerce, and related agencies.

“(10) The Departments of Transportation, Housing and Urban Development, and related agencies.

“(11) The Legislative Branch.

“(12) Financial services and general government.”.

(b) Clerical Amendment.—The analysis of chapter 13 of title 31, United States Code, is amended by inserting after the item relating to section 1310 the following new item:


“1311. Continuing appropriations.”.

SEC. 141. Elimination of inflation adjustment.

Section 257(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended—

(1) in paragraph (1) by striking “for inflation as specified in paragraph (5),”; and

(2) by striking paragraph (5) and redesignating paragraph (6) as paragraph (5).

SEC. 142. The President’s budget.

(a) Paragraph (5) of section 1105(a) of title 31, United States Code, is amended to read as follows:

“(5) except as provided in subsection (b) of this section, estimated expenditures and appropriations for the current year and estimated expenditures and proposed appropriations the President decides are necessary to support the Government in the fiscal year for which the budget is submitted and at least the 4 fiscal years following that year, and, except for detailed budget estimates, the percentage change from the current year to the fiscal year for which the budget is submitted for estimated expenditures and for appropriations.”.

(b) Section 1105(a)(6) of title 31, United States Code, is amended to read as follows:

“(6) estimated receipts of the Government in the current year and the fiscal year for which the budget is submitted and at least the 4 fiscal years after that year under—

“(A) laws in effect when the budget is submitted; and

“(B) proposals in the budget to increase revenues,

and the percentage change (in the case of each category referred to in subparagraphs (A) and (B)) between the current year and the fiscal year for which the budget is submitted and between the current year and each of the 9 fiscal years after the fiscal year for which the budget is submitted.”.

(c) Section 1105(a)(12) of title 31, United States Code, is amended to read as follows:

“(12) for each proposal in the budget for legislation that establishes or expands a Government activity or function, a table showing—

“(A) the amount proposed in the budget for appropriation and for expenditure because of the proposal in the fiscal year for which the budget is submitted;

“(B) the estimated appropriation required because of the proposal for each of at least the 4 fiscal years after that year that the proposal will be in effect; and

“(C) the estimated amount for the same activity or function, if any, in the current fiscal year,

and, except for detailed budget estimates, the percentage change (in the case of each category referred to in subparagraphs (A), (B), and (C)) between the current year and the fiscal year for which the budget is submitted.”.

(d) Section 1105(a)(18) of title 31, United States Code, is amended by inserting “new budget authority and” before “budget outlays”.

(e) Section 1105(a) of title 31, United States Code, is amended by adding at the end the following new paragraphs:

“(36) a comparison of levels of estimated expenditures and proposed appropriations for each function and subfunction in the current fiscal year and the fiscal year for which the budget is submitted, along with the proposed increase or decrease of spending in percentage terms for each function and subfunction.

“(37) a table on sources of growth in total direct spending under current law and as proposed in this budget submission for the budget year and at least the ensuing 9 fiscal years, which shall include changes in outlays attributable to the following: cost-of-living adjustments; changes in the number of program recipients; increases in medical care prices, utilization and intensity of medical care; and residual factors.”.

(f) Section 1109(a) of title 31, United States Code, is amended by inserting after the first sentence the following new sentence: “For discretionary spending, these estimates shall assume the levels no higher than those set forth in the discretionary spending limits under section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985, as adjusted, for the appropriate fiscal years (and if no such limits are in effect, these estimates shall assume adjusted levels no higher than those for the most recent fiscal year for which such levels were in effect).”.

SEC. 143. The congressional budget.

Section 301(e) of the Congressional Budget Act of 1974 (as amended by section 103) is further amended—

(1) in paragraph (1), by inserting at the end the following: “The basis of deliberations in developing such joint resolution shall be the estimated budgetary levels for the preceding fiscal year. Any budgetary levels pending before the committee and the text of the joint resolution shall be accompanied by a document comparing such levels or such text to the estimated levels of the prior fiscal year.”; and

(2) in paragraph (2), by striking “and” at the end of subparagraph (H) (as redesignated), by striking the period and inserting “; and” at the end of subparagraph (I) (as redesignated), and by adding at the end the following new subparagraph:

“(J) a comparison of levels for the current fiscal year with proposed spending and revenue levels for the subsequent fiscal years along with the proposed increase or decrease of spending in percentage terms for each function.”.

SEC. 144. Congressional Budget Office reports to committees.

(a) Comparable Levels.—The first sentence of section 202(e)(1) of the Congressional Budget Act of 1974 is amended by inserting “compared to comparable levels for the current year” before the comma at the end of subparagraph (A) and before the comma at the end of subparagraph (B).

(b) Sources of Spending Growth.—Section 202(e)(1) of the Congressional Budget Act of 1974 is amended by inserting after the first sentence the following new sentence: “Such report shall also include a table on sources of spending growth in total direct spending, revenue, deficit and debt for the budget year and the ensuing 4 fiscal years, which shall include changes in outlays attributable to the following: cost-of-living adjustments; changes in the number of program recipients; increases in medical care prices, utilization and intensity of medical care; and residual factors.”.

(c) Comparison of Levels.—Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is amended by inserting “and shall include a comparison of those levels to comparable levels for the current fiscal year” before “if timely submitted”.

SEC. 145. Treatment of emergencies.

Section 257(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (as amended by section 141) is further amended by adding at the end the following new paragraph:

“(6) EMERGENCIES.—Budgetary resources for emergencies shall be at the level provided in the reserve fund for emergencies for that fiscal year pursuant to section 301(a)(4) of the Congressional Budget Act of 1974.”.

SEC. 200. Short title.

This title may be cited as the “Spending Enforcement and Reform Act of 2009”.

SEC. 201. Discretionary spending limits.

(a) Discretionary Spending Limits.—Section 251 of the Balanced Budget and Emergency Deficit Control of Act of 1985 is amended to read as follows:

“(a) Discretionary Spending Limits.—For each fiscal year set forth in this subsection, the total level of discretionary spending for all nonexempt discretionary spending programs, projects, and activities shall not exceed the following levels:

“(1) with respect to fiscal year 2011—

“(A) $1,058,021,000,000 in new budget authority; and

“(B) $1,216,924,000,000 in outlays;

“(2) with respect to fiscal year 2012—

“(A) $1,068,938,000,000 in new budget authority; and

“(B) $1,164,593,000,000 in outlays;

“(3) with respect to fiscal year 2013—

“(A) $1,079,387,000,000 in new budget authority; and

“(B) $1,158,941,000,000 in outlays;

“(4) with respect to fiscal year 2014—

“(A) $1,094,344,000,000 in new budget authority; and

“(B) $1,160,021,000,000 in outlays;

“(5) with respect to fiscal year 2015—

“(A) $1,113,727,000,000 in new budget authority; and

“(B) $1,168,741,000,000 in outlays;

“(6) with respect to fiscal year 2016—

“(A) $1,138,053,000,000 in new budget authority; and

“(B) $1,189,434,000,000 in outlays;

“(7) with respect to fiscal year 2017—

“(A) $1,162,849,000,000 in new budget authority; and

“(B) $1,207,686,000,000 in outlays; and

“(8) with respect to fiscal year 2018—

“(A) $1,187,516,000,000 in new budget authority; and

“(B) $1,226,788,000,000 in outlays; and

“(9) with respect to fiscal year 2019—

“(A) $1,214,197,000,000 in new budget authority; and

“(B) $1,256,883,000,000 in outlays.

“(b) Sequence of Sequestration Reports.—Within 15 calendar days after Congress adjourns to end a session and on the same day as a spending reduction ordered under sections 252A, 252B, and 253, but prior to any spending reduction required by sections 252A, 252B, and 253, OMB shall issue a final spending reduction report to reduce an excess spending amount.

“(c) Spending Reduction Order.—A spending reduction ordered pursuant to subsection (b) shall be implemented using the procedures set forth in section 256.”.

(b) Conforming Amendment.—The item relating to section 251 in the table of contents set forth in 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:


“Sec. 251. Discretionary spending limits.”.

SEC. 202. Direct spending limits.

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

“SEC. 252A. Direct Spending Limits.

“(a) Direct Spending Limits.—For fiscal year 2011 and each ensuing fiscal year through fiscal year 2019, the total level of direct spending for all direct spending programs, projects, and activities for any such fiscal year shall not exceed the total level of spending for all such programs, projects, and activities for the previous fiscal year after the direct spending for each such program, project, or activity is increased by the calculation made pursuant to section 257.

“(b) Sequence of Sequestration Reports.—Within 15 calendar days after Congress adjourns to end a session and on the same day as a spending reduction ordered under sections 251, 253, 252B, but after any spending reduction required by section 251 and section 252A, OMB shall issue a final spending reduction report to reduce an excess spending amount (if any remains).

“(c) Spending Reduction Order.—A spending reduction ordered pursuant to subsection (b) shall be implemented using the procedures set forth in section 256.”.

(b) Conforming Amendment.—The table of contents set forth in 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by amending the item relating to section 256 to read as follows:


“Sec. 252A. Enforcing direct spending limits.”.

SEC. 203. Total spending limits.

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

“SEC. 252B. Total spending limits.

“(a) Projections.—

“(1) SPENDING PROJECTIONS.—For the current fiscal year and each subsequent ten fiscal years:

“(A) OMB shall prepare a report comparing projected total spending under section 257 and the total spending limits in subsection (d), and include such report in the budget as submitted by the President annually under section 1105(a) of title 31, United States Code.

“(B) CBO shall prepare a report comparing projected total spending under section 257 and the total spending limits in subsection (d) and include such report in the CBO annual baseline and reestimate of the President’s budget.

“(2) INCLUSION IN SPENDING REDUCTION ORDERS.—Reports prepared pursuant to subsection (a) shall be included in the spending reduction report set forth in subsection (b).

“(b) Spending Reduction Report.—Within 15 calendar days after Congress adjourns to end a session and on the same day as a spending reduction ordered under sections 251, 252A, and 253, but after any spending reduction required by sections 251 and 252A, but before section 253, OMB shall issue a spending reduction report to reduce an excess spending amount (if any remains).

“(c) Spending Reduction Order.—A spending reduction ordered pursuant to subsection (b) shall be implemented using the procedures set forth in section 256.

“(d) Total Spending Limits.—

“(1) fiscal year 2010: 25 percent;

“(2) fiscal year 2011: 24 percent;

“(3) fiscal year 2012: 22 percent;

“(4) fiscal year 2013: 22 percent;

“(5) fiscal year 2014: 22 percent;

“(6) fiscal year 2015: 22 percent;

“(7) fiscal year 2016: 22 percent;

“(8) fiscal year 2017: 21 percent;

“(9) fiscal year 2018: 21 percent; and

“(10) fiscal year 2019 and each year thereafter: 20 percent;

of the projected GDP for the budget year.

“(e) Temporary Adjustment Authority.—OMB shall make adjustments to the total spending limits set forth in subsection (d)(6) and the years thereafter equal to the percentage level of—

“(1) the average per capita benefit for OASDI and Medicare eligible retirees born during the period of fiscal years 1946 through 1964 receiving benefits under the OASDI and Medicare programs in fiscal year 2014;

“(2) multiplied by the increase in the number of such beneficiaries in the applicable fiscal year from the number of such beneficiaries in fiscal year 2014;

“(3) adjusted for—

“(A) the blend of the Consumer Price Index and the Medical Economic Index for Medicare programs; and

“(B) the Consumer Price Index for OASDI programs; and

“(4) as a percentage of the gross domestic product of the applicable fiscal year.

OMB may modify the adjustments required by this subsection in order that the spending limits accommodate the OASDI and Medicare benefits of individuals who were born during the period of fiscal years 1946 through 1964.

“(f) Additional Temporary Adjustment Authority.—OMB shall make further adjustments to the total spending limits for any fiscal year set forth in subsection (d) to ensure that any individual who is at least 55 years of age on January 1 of the calendar year in which this subsection is enacted shall receive full benefits under the OASDI and Medicare programs.”.

(b) Definitions.—Section 3 of such Act (2 U.S.C. 622) is further amended by adding at the end the following new paragraph:

“(14) The term ‘total spending’ means all outlays of the Federal Government including those from off-budget entities and budget authority and outlays flowing therefrom, as applicable, designated as emergencies.”.

(c) Conforming Amendment.—The table of contents set forth in 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by inserting after the item relating to section 252A the following new item:


“Sec. 252B. Total spending limits.”.

SEC. 204. Deficit limits.

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

“SEC. 253. Deficit limits.

“(a) Deficit Projections.—

“(1) DEFICIT AMOUNTS.—For the current fiscal year and each subsequent ten fiscal years:

“(A) OMB shall prepare a report comparing projected total deficits and the Deficit Limits in subsection (d), and include such report in the budget as submitted by the President annually under section 1105(a) of title 31, United States Code.

“(B) CBO shall prepare a report comparing projected deficits amounts and the Deficit Limits in subsection (d) and include such report in the CBO annual baseline and reestimate of the President’s budget.

“(2) INCLUSION IN SPENDING REDUCTION ORDERS.—Reports prepared pursuant to subsection (a) shall be included in the spending reduction report set forth in subsection (c).

“(b) Deficit reduction report.—Within 15 calendar days after Congress adjourns to end a session and on the same day as a spending reduction ordered under sections 251, 252A, and 252B, but after any spending reduction required by section 251, OMB shall issue a spending reduction report to reduce an excess spending amount (if any remains).

“(c) Deficit reduction order.—A spending reduction ordered pursuant to subsection (b) shall be implemented using the procedures set forth in section 256.

“(d) Deficit Limits.—In this section, the term ‘Deficit Limit’ means an amount that equals with respect to—

“(1) fiscal year 2011: 6.9 percent;

“(2) fiscal year 2012: 4.8 percent;

“(3) fiscal year 2013: 4.3 percent;

“(4) fiscal year 2014: 4.2 percent;

“(5) fiscal year 2015: 3.9 percent;

“(6) fiscal year 2016: 3.6 percent;

“(7) fiscal year 2017: 3.1 percent;

“(8) fiscal year 2018: 2.6 percent; and

“(9) fiscal year 2019: 2.0 percent.

of the projected GDP for the budget year.

“(e) Temporary Adjustment Authority.—OMB shall make adjustments to the Deficit Limits set forth in subsection (d)(5) and the years thereafter consistent with any adjustments made pursuant to subsections (e) and (f) of section 252B.”.

(b) Conforming Amendment.—The item relating to section 253 in the table of contents set forth in section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:


“Sec. 253. Deficit limits.”.

SEC. 211. Reports and orders.

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

“SEC. 254. Reports and Orders.

“(a) Timetable.—

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

“(b) Submission and Availability of Reports.—Each report required by this section shall be submitted to the Budget Committees of the House of Representatives and the Senate. On the following day a notice of the report shall be printed in the Federal Register.

“(c) Sequestration Preview Reports.—

“(1) REPORTING REQUIREMENT.—On the dates specified in subsection (a), OMB and CBO shall issue a preview report regarding discretionary, pay-as-you-go, and deficit sequestration based on laws enacted through those dates.

“(2) DISCRETIONARY SPENDING LIMIT SEQUESTRATION REPORT.—The preview reports shall set forth estimates for the current year and each subsequent year through 2019 of the applicable discretionary spending limits and an explanation of any adjustments in such limits under section 251.

“(3) DIRECT SPENDING LIMIT SEQUESTRATION REPORT.—The preview reports shall set forth, for the current year and the budget year, estimates for each of the following:

“(A) The amount of total direct spending, if any, calculated under subsection 252A(b).

“(B) A list identifying each law enacted and sequestration implemented after the date of enactment of this section included in the calculation of the amount of deficit increase or decrease and specifying the budgetary effect of each such law.

“(C) The sequestration percentage or percentages necessary to eliminate a deficit increase under section 252A(C).

“(4) TOTAL SPENDING LIMIT SEQUESTRATION REPORT.—The preview reports shall set forth for the budget year estimates for each of the following:

“(A) The total spending limit and the estimated total spending amount calculated under section 252A, and the excess deficit.

“(B) The amount of reductions required under sections 251 and 252A, the excess total spending amount remaining after those reductions have been made.

“(C) The sequestration percentage necessary to achieve the required reduction in any fiscal year for which a Deficit Limit is set forth pursuant to this Act.

“(5) DEFICIT LIMIT SEQUESTRATION REPORT.—The preview reports shall set forth for the budget year estimates for each of the following:

“(A) The maximum deficit amount, the estimated deficit calculated under section 253(b), the excess deficit;

“(B) The amount of reductions required under sections 251, 252A and 252B, the excess deficit remaining after those reductions have been made; and

“(C) The sequestration percentage necessary to achieve the required reduction in any fiscal year for which a Deficit Limit is set forth pursuant to this Act.

“(6) EXPLANATION OF DIFFERENCES.—The OMB reports shall explain the differences between OMB and CBO estimates for each item set forth in this subsection.

“(d) Sequestration Update Reports.—On the dates specified in subsection (a), OMB and CBO shall issue a sequestration update report, reflecting laws enacted through those dates, containing all of the information required in the sequestration preview reports.

“(e) Final Sequestration Reports.—

“(1) REPORTING REQUIREMENT.—On the dates specified in subsection (a), OMB and CBO shall issue a final sequestration report, updated to reflect laws enacted through those dates.

“(2) DISCRETIONARY SPENDING SEQUESTRATION REPORTS.—The final reports shall set forth estimates for each of the following:

“(A) For the current year and each subsequent year the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 251.

“(B) For the current year and the budget year the estimated new budget authority and outlays for each category and the breach, if any, in each category.

“(C) For each category for which a sequestration is required, the sequestration percentages necessary to achieve the required reduction.

“(D) For the budget year, for each account to be sequestered, estimates of the baseline level of budgetary resources subject to sequestration and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions.

“(3) DIRECT SPENDING, TOTAL SPENDING, AND DEFICIT LIMIT SEQUESTRATION REPORTS.—The final reports shall contain all the information required in the direct spending, total spending, and Deficit Limit sequestration preview reports. In addition, these reports shall contain, for the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions. The reports shall also contain estimates of the effects on outlays of the sequestration in each outyear for direct spending programs.

“(4) EXPLANATION OF DIFFERENCES.—The OMB report shall explain any differences between OMB and CBO estimates of the amount of any net direct spending change calculated under section 252A, any excess deficit, any breach, and any required sequestration percentage. The OMB report shall also explain differences in the amount of sequesterable resources for any budget account to be reduced if such difference is greater than $5,000,000.

“(5) PRESIDENTIAL ORDER.—On the date specified in subsection (a), if in its final sequestration report OMB estimates that any sequestration is required, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.

“(f) Within-Session Sequestration Reports.—If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach, 10 days later CBO shall issue a report containing the information required in subsection (e)(2). Fifteen days after enactment, OMB shall issue a report containing the information required in subsections (e)(2) and (e)(4). On the same day as the OMB report, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.

“(g) GAO Compliance Report.—Upon request of the Committee on the Budget of the House of Representatives or the Senate, the Comptroller General shall submit to the Congress and the President a report on—

“(1) the extent to which each order issued by the President under this section complies with all of the requirements contained in this part, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not; and

“(2) the extent to which each report issued by OMB or CBO under this section complies with all of the requirements contained in this part, either certifying that the report fully and accurately complies with such requirements or indicating the respects in which it does not.

“(h) Low-Growth Report.—At any time, CBO shall notify the Congress if—

“(1) during the period consisting of the quarter during which such notification is given, the quarter preceding such notification, and the 4 quarters following such notification, CBO or OMB has determined that real economic growth is projected or estimated to be less than zero with respect to each of any 2 consecutive quarters within such period; or

“(2) the most recent of the Department of Commerce’s advance preliminary or final reports of actual real economic growth indicate that the rate of real economic growth for each of the most recently reported quarter and the immediately preceding quarter is less than one percent.

“(i) Economic and Technical Assumptions.—In all reports required by this section, OMB shall use the same economic and technical assumptions as used in the most recent budget submitted by the President under section 1105(a) of title 31, United States Code”.

SEC. 212. Spending and deficit limits enforcement.

(a) Conforming Amendments to Section 312.—Section 312 of the Congressional Budget Act of 1974 is amended—

(1) by striking subsection (a) and inserting the following:

“(a) Budget Committee Determinations.—For purposes of this title, the levels of new budget authority, outlays, direct spending, deficits, revenues, and debt, or the increases or decreases of such levels for purpose of section 303, shall be determined on the basis of estimates made by the Committee on the Budget of the House of Representatives or the Senate, as applicable.”.

(2) by striking subsections (b) and (c) and redesignating subsections (d), (e), and (f) as (h), (i), and (j).

(b) Enforcement Amendments to Section 312.—Section 312 of the Congressional Budget Act of 1974 is further amended by adding at the end the following new subsections after subsection (a):

“(b) Discretionary Spending Limit Point of Order.—It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, concurrent resolution, or conference report that—

“(1) causes the discretionary spending limits for the budget year to be breached;

“(2) increases the discretionary spending limits for the budget year or any ensuing fiscal year; or

“(3) includes any provision that has the effect of modifying the application of section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985.

“(c) Direct Spending Limit Point of Order.—It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, concurrent resolution, or conference report that—

“(1) causes the direct spending limits for the budget year to be breached; or

“(2) increases aggregate level of direct spending for any ensuing fiscal year.

“(d) Total Spending Limit Point of Order.—It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, concurrent resolution, amendment, or conference report that—

“(1) causes the total spending limits for the budget year, as a percentage of gross domestic product, to be breached; or

“(2) increases outlays above the total spending limits, as a percentage of gross domestic product, for the budget year or any ensuing fiscal year after the budget year.

“(e) Deficit Limit Point of Order.—It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, concurrent resolution, or conference report that—

“(1) causes the Deficit Limits for the budget year, as a percentage of gross domestic product, to be breached; or

“(2) increases the amount of deficit, as a percentage of gross domestic product, for the budget year or any ensuing fiscal year.

“(f) Sequestration Application.—It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, concurrent resolution, or conference report that—

“(1) includes any provision that has the effect of modifying the application of section 256 of the Balanced Budget and Emergency Deficit Control Act of 1985 to any program subject to sequestration or exempt from sequestration; and

“(2) includes any provision that has the effect of modifying the application of section 251, 252A, 252B or 253 to any program subject to sequestration or exempt from sequestration.

“(g) Waiver or Suspension.—The provisions of this section may be waived or suspended:

“(1) IN THE SENATE.—In the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

“(2) IN THE HOUSE OF REPRESENTATIVES.—In the House of Representatives:

“(A) Only by a rule or order proposing only to waive such provisions by an affirmative vote of two-thirds of the Members, duly chosen and sworn.

“(B) It shall not be in order to consider a rule or order that waives the application of subparagraph (A).

“(C) It shall not be in order for the Speaker to entertain a motion to suspend the application of this section under clause 1 of rule XV of the Rules of the House of Representatives.”.

SEC. 213. Spending reduction orders.

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

“SEC. 256. Spending Reduction Order.

“(a) Application.—A spending reduction order issued pursuant to this part shall apply to eliminate breaches of the limits set forth in sections 251 (discretionary spending limits), 252A (direct spending limits), 253 (Deficit Limits) and 252B (total spending limits).

“(b) Waiver or Suspension.—(1) In the Senate, the provisions of this section may be waived or suspended in the Senate only by the affirmative vote of two-thirds of the Members, duly chosen and sworn.

“(2) In the House—

“(A) The provisions of this section may be waived or suspended in the House of Representatives only by a rule or order proposing only to waive such provisions by an affirmative vote of two-thirds of the Members, duly chosen and sworn.

“(B) It shall not be in order to consider a rule or order that waives the application of paragraph (1).

“(C) It shall not be in order for the Speaker to entertain a motion to suspend the application of this section under clause 1 of rule XV of the Rules of the House of Representatives.

“(c) General Rules.—

“(1) CALCULATION OF SPENDING REDUCTION PERCENTAGE.—OMB shall include in its final spending sequestration report a requirement that each nonexempt spending account shall be reduced by an amount of budget authority calculated by multiplying the baseline level of budgetary resources in that account at that time by the uniform percentage necessary to reduce outlays sufficient to eliminate an excess spending amount.

“(2) EXEMPTIONS.—The following shall be exempt from reduction under any order issued under this part:

“(A) Payments for net interest.

“(B) Benefits payable under the old-age, survivors, and disability insurance program established under title II of the Social Security Act if—

“(i) OASDI Trust Funds are actuarially solvent in the 75-year period utilized in the most recent annual report of the Board of Trustees provided pursuant to section 201(C)(2) of the Social Security Act; and

“(ii) OASDI Trust Funds have not run a cash deficit in the fiscal year prior to the transmittal of the most recent Sequestration Preview Report.

“(C) Benefits provided to veterans defined as direct spending payable by the Department of Veterans affairs.

“(D) Obligated balances of budget authority carried over from prior fiscal years.

“(E) Any obligations of the Federal Government required to be paid under the United States Constitution or legally contractual obligations.

“(F) Provisions of spending legislation designated by the President, and so designated in statute, as an emergency, except an amount of budget authority and the outlays flowing therefrom so designated that is above the emergency reserve fund as calculated in section 317(b) of the Congressional Budget Act of 1974 shall not be exempt.

“(G) Any program whose growth in the budget year is equal to or less than the consumer price index.

“(H) Intergovernmental transfers.

“(3) ONE-PERCENT REDUCTION LIMITATION.—No program shall be subject to a spending reduction of more than one percent of its budgetary resources.

“(4) CALCULATION OF SPENDING REDUCTION.—The percentage required to produce a spending reduction, as ordered by a spending reduction order, shall be calculated by OMB by adding all budgetary resources of the Government, and reducing that amount by an amount sufficient to reduce the total amount of outlays of the Government to equal, or lower, a level of outlays than the amount set forth in the guideline period.

“(5) APPLICATION.—Once issued, a spending reduction shall be applied to nonexempt programs as follows:

“(A) Budgetary resources subject to a spending reduction to any discretionary account shall be permanently canceled.

“(B) The same percentage spending reduction shall apply to all programs, projects, and activities within a budget account (with programs, projects, and activities as delineated in the appropriation Act or accompanying report for the relevant fiscal year covering that account, or for accounts not included in appropriation Acts, as delineated in the most recently submitted President's budget).

“(C) Administrative regulations implementing a spending reduction shall be made within 120 days of the issue of a spending reduction order.

“(6) OASDI SPECIAL PROCEDURES.—If the OASDI Trust Funds are subject to sequestration, then payments from such Trust Funds shall be treated the same as other programs, except—

“(A) reductions from such Trust Funds shall not exceed one percent of the 75-year unfunded liability set forth in the most current Social Security Trustees Report;

“(B) reduction in individual benefits shall be implemented by increasing the Normal Retirement Age (NRA) by an amount certified by the Social Security Office of the Chief Actuary;

“(C) the increase in the NRA shall not be applied to any beneficiary born in a year 55 years or before—

“(i) the year of the enactment of the Spending, Deficit, and Debt Control Act of 2009; or

“(ii) the year in which the final spending sequestration report is issued; and

“(D) no change in the NRA shall be made before it is fully phased-in under the Social Security Act as in effect before the date of enactment of the Spending, Deficit, and Debt Control Act of 2009.

“(d) Discretionary Spending Sequestration.—

“(1) ELIMINATING A BREACH.—Each nonexempt account shall be reduced by an amount of budget authority calculated by multiplying the baseline level of budgetary resources subject to sequestration in that account at that time by the uniform percentage necessary to eliminate a breach by—

“(A) first, calculating the uniform percentage necessary to eliminate a breach in new budget authority, if any, and

“(B) second, if any breach in outlays remains, increasing the uniform percentage to a level sufficient to eliminate that breach.

“(2) EMERGENCY SPENDING ABOVE THE RESERVE FUND.—An amount of budget authority and the outlays flowing therefrom designated in statute as an emergency that is above level in the emergency reserve fund as calculated in Section 317(b) of the Congressional Budget Act of 1974 shall count toward the discretionary spending limits.

“(3) PART-YEAR APPROPRIATIONS.—If, on the date specified in paragraph (1), there is in effect an Act making or continuing appropriations for part of a fiscal year for any budget account, then the dollar sequestration calculated for that account under paragraph (2) shall be subtracted from—(A) the annualized amount otherwise available by law in that account under that or a subsequent part-year appropriation; and (B) when a full-year appropriation for that account is enacted, from the amount otherwise provided by the full year appropriation.

“(4) LOOK-BACK.—If, after June 30, an appropriation for the fiscal year in progress is enacted that causes a breach for that year, the discretionary spending limits for the next fiscal year shall be reduced by the amount of the breach.

“(5) WITHIN-SESSION SEQUESTRATION.—If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach for that year (after taking into account any prior sequestration of amounts), 15 days later there shall be a sequestration to eliminate that breach following the procedures set forth in paragraphs (2) through (3).

“(6) ESTIMATES.—

“(A) CBO ESTIMATES.—As soon as practicable after Congress completes action on any discretionary appropriation, CBO, after consultation with the Committees on the Budget of the House of Representatives and the Senate, shall provide OMB with an estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation.

“(B) OMB ESTIMATES.—Not later than seven calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any discretionary appropriation, OMB shall transmit a report to the House of Representatives and to the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation, and an explanation of any difference between the two estimates.

“(C) EXPLANATION OF DIFFERENCES BETWEEN OMB AND OMB ESTIMATES.—If OMB determines that there is a significant difference between OMB and CBO reports prepared pursuant to subparagraph (A) and (B), OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate regarding that difference and that consultation shall include, to extent practicable, written communication to those committees that affords such committees the opportunity to comment before the issuance of the report.

“(D) ASSUMPTIONS AND GUIDELINES.—OMB estimates under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House of Representatives and Senate Committees on the Budget, CBO, and OMB.

“(E) ANNUAL APPROPRIATIONS.—For purposes of this paragraph, amounts provided by annual appropriations shall include any new budget authority and outlays for the current year (if any) and the budget year in accounts for which funding is provided in that legislation that result from previously enacted legislation.

“(7) DISCRETIONARY SEQUESTRATION LIMITATION.—If appropriations for a fiscal year do not require a sequester pursuant to the discretionary spending limits set forth in this Act, discretionary accounts shall not be subject to sequestration under sections 252A, 252B or 253.”.

(b) Low-Growth Amendment.—Amend section 258(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 to read as follows:

“(b) Suspension of Sequestration Procedures.—Upon the enactment of a declaration of war or a joint resolution described in subsection (a)—

“(1) the subsequent issuance of any sequestration report to enforce the spending limits in section 252B or the Deficit Limits in section 253 order is precluded;

“(2) sections 302(f), 310(d), 311(a), of the Congressional Budget Act of 1974 are suspended; and

“(3) section 1103 of title 31, United States Code, is suspended.”.

(c) Technical and Conforming Amendments.—(1) REPEALS.—section 255 of the Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.

(2) Conforming amendment.—the item relating to section 256 in the table of contents set forth in section 250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:


“Sec. 256. Spending reduction order.”.

SEC. 300. Short title; purposes.

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

SEC. 301. CBO and OMB projections.

(a) Congressional Budget Office.—At the end of section 308 of the Congressional Budget Act of 1974, add the following:

“(d) Long-Term Projections.—Not later than February 15 of each calendar year after the date of enactment of this subsection, the Director of the Congressional Budget Office shall issue a report projecting total spending, revenue, deficits, and debt for 75 years beginning with such fiscal year as a percentage of gross domestic product annually based on current law levels as modified to maintain current policy.

“(e) CBO Spending Review Report Issuance.—As a component of the report required by subsection (d), the Congressional Budget Office shall issue a Spending Review Report and transmit such report to the Committees on the Budget of the House of Representatives and the Senate.

“(f) Content of Spending Review Report.—The content of the Spending Review Report referred to in subsection (e) shall include analyses of the following:

“(1) OASDI.—The solvency of the Old-Age, Survivors, and Disability Insurance Trust Fund;

“(2) MEDICARE.—The long-range sustainability of the spending levels of Medicare;

“(3) MEDICAID.—The long-range sustainability of the spending levels of Medicaid; and

“(4) OTHER DIRECT SPENDING.—The long-range sustainability of spending levels of other direct spending.

“(g) Definitions.—For purposes of the development of the Spending Review Report referred to in subsection (b):

“(1) SOLVENCY OF THE OASDI.—The term ‘solvency’ as used in this section means the solvency of the Old-Age Security and Disability Insurance Trust Funds over a 75-year period beginning in the year the Spending Review Report is reported.

“(2) SUSTAINABILITY.—The term ‘sustainability’ means the following:

“(A) MEDICARE.—The Medicare program is sustainable if it is projected to grow, beginning in the tenth year following the date of the enactment of this Act from the fixed percentage of Gross Domestic Product in the year prior to the date of enactment of this subsection, adjusted by the adjustment formula as set forth in section 252B(e) of the Balanced Budget and Emergency Deficit Control Act of 1985;

“(B) MEDICAID.—The Medicaid program is sustainable if its outlays, excluding those designated as emergencies, are projected to grow from the fixed percentage of Gross Domestic Product in the year prior to the date of the enactment of this Act, adjusted by a rate no higher than a blend of the Consumer Price Index and the Medical Economic Index, as adjusted after fiscal year 2018 using the same calculation, excluding benefits provided from the OASDI Trust funds, as that set forth in section 252B(e) of the Balanced Budget and Emergency Deficit Control Act of 1985 to reflect the increase in the the number of Medicare eligible retirees receiving benefiits in the program relative to fiscal year 2018.

“(C) OTHER DIRECT SPENDING.—Other direct spending is direct spending other than OASDI, the Medicare and Medicaid program and is sustainable if it grows from a fixed percentage of gross domestic product in fiscal year 2008.”.

(b) Office of Management and Budget.—Section 1105(a) of title 31, United States Code, (as amended by section 142(e)) is further amended by adding at the end the following:

“(38) long-term projections of total spending over 75 years as a percentage of gross domestic product annually and the impact of proposed policies over that period.”.

SEC. 302. GAO and OMB statements of the Federal Government’s financial condition.

(a) Government Accountability Office.—On or before April 15 of each fiscal year, the Government Accountability Office shall submit a report on the federal government’s financial condition, including the long-term unfunded obligations.

(b) Definition of Long-Term Unfunded Obligations.—Section 3 of the Congressional Budget Act of 1974 is further amended by adding at the end the following new paragraph, and redesignate the paragraph accordingly:

“(11) UNFUNDED OBLIGATIONS.—The term ‘Unfunded Obligations’ means the dollar sum of the Total Net Position as displayed in the United States Government Balance Sheets contained within the most recently published Financial Report of the United States Government; plus the 75-year actuarial balances, using the intermediate open-group assumption, of Medicare’s Hospital Insurance, Supplementary Medical Insurance, and Prescription Drug programs contained within the most recently published Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds; plus the 75-year actuarial balance, using the intermediate open group assumption, of the Old-Age Survivors and Disability Insurance program contained within the most recently published Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds.”.

(c) Office of Management and Budget.—Section 1105(a) of title 31, United States Code, (as amended by section 301(b)) is further amended by adding at the end the following:

“(39) a report on the Federal Government’s financial condition, the including the long-term unfunded obligations.”.

SEC. 303. Five-year Fiscal Sustainability Review.

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

Five-year Fiscal Sustainability Review

“Sec. 319. (a) Congressional Spending Review Report.—Not later than 15 calendar days after the date of the transmittal of the report referred to in subsection 308(e), the Committees on the Budget of the House of Representatives and the Senate shall issue, and have printed in the Congressional Record, an assessment of such report.

“(b) Committee Recommendations.—Not later than 15 calendar days after the date of the report of the review referred to in subsection (c), the committees of the House of Representatives and the Senate shall consider and vote to submit to the Committees on the Budget of the House of Representatives and Senate, as applicable, recommendations, if any, such committees deem appropriate in response to the Spending Review Report issued pursuant to subsection (c).

“(c) Expedited Consideration of Spending Review Legislation.—

“(1) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.—

“(A) INTRODUCTION OF SPENDING REVIEW LEGISLATION.—

“(i) If the report referred to in section 308 indicates that the OASDI Trust Funds are not solvent, or that Medicare, Medicaid or other direct spending programs are not sustainable, or total spending exceeds the limits set forth in section 252B for any year within the 75-year period referred to in such report, then not later than 30 calendar days after the transmittal of the report referred to in subsection (a), if any, the majority leader and minority leader of the House of Representatives shall each introduce legislation implementing to the extent practicable the recommendations referred to in subsection (d), or if necessary additional spending reduction sufficient to achieve the spending levels referred to in subsection (b).

“(ii) If Spending Review Legislation is not introduced pursuant to this subparagraph by the majority leader or minority leader, then not later than 45 calendar days after the transmittal of the report referred to in subsection (a), the chairman or ranking member of the Committee on the Budget shall introduce Spending Review Legislation sufficient to achieve the same spending levels.

“(iii) Spending review legislation shall be referred solely to the House of Representatives Budget Committee, which shall have sole jurisdiction of such legislation.

“(iv) Spending review legislation introduced pursuant to this section shall cause total spending to be reduced by an amount equal or greater than the amount of the breach of the limits set forth in section 252B, and shall cause the OASDI Trust Funds to achieve solvency, and shall cause Medicare, Medicaid, and other direct spending programs to achieve sustainability.

“(B) REFERRAL AND REPORTING.—The Committee on the Budget of the House of Representatives shall report Spending Review Legislation to the House of Representatives not later than the seventh legislative day after the date of introduction of the legislation referred to in subparagraph (A). If such committee fails to report the Spending Review Legislation within that period or the House of Representatives has adopted a concurrent resolution providing for adjournment sine die at the end of a Congress, such committee shall be automatically discharged from further consideration of the Spending Review Legislation and it shall be placed on the appropriate calendar.

“(C) PROCEEDING TO CONSIDERATION.—After Spending Review Legislation is reported by or discharged from the Committee on the Budget or the House of Representatives has adopted a concurrent resolution providing for adjournment sine die at the end of a Congress, it shall be in order to move to proceed to consider the Spending Review Legislation in the House of Representatives. Such a motion shall be in order in the legislative schedule within two legislative days after the day on which the proponent announces his intention to offer the motion. Such a motion shall not be in order after the House of Representatives has disposed of a motion to proceed with respect to that special message. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. A motion to reconsider the vote by which the motion is disposed of shall not be in order.

“(D) CONSIDERATION.—The Spending Review Legislation shall be considered as read. All points of order against Spending Review Legislation and against its consideration are waived. The previous question shall be considered as ordered on an Spending Review Legislation to its passage without intervening motion except five hours of debate equally divided and controlled by the proponent and an opponent and one motion to limit debate on the Spending Review Legislation. A motion to reconsider the vote on passage of the Spending Review Legislation shall not be in order.

“(E) SENATE SPENDING REVIEW LEGISLATION.—Spending Review Legislation received from the Senate shall not be referred to committee.

“(2) CONSIDERATION IN THE SENATE.—

“(A) MOTION TO PROCEED TO CONSIDERATION.—A motion to proceed to the consideration of Spending Review Legislation under this subsection in the Senate shall not be debatable. It shall not be in order to move to reconsider the vote by which the motion to proceed is agreed to or disagreed to.

“(B) LIMITS ON DEBATE.—Debate in the Senate on Spending Review Legislation under this subsection, and all debatable motions and appeals in connection therewith (including debate pursuant to subparagraph (D)), shall not exceed 10 hours, equally divided and controlled in the usual form.

“(C) APPEALS.—Debate in the Senate on any debatable motion or appeal in connection with Spending Review Legislation under this subsection shall be limited to not more than 1 hour, to be equally divided and controlled in the usual form.

“(D) MOTION TO LIMIT DEBATE.—A motion in the Senate to further limit debate on Spending Review Legislation under this subsection is not debatable.

“(E) MOTION TO RECOMMIT.—A motion to recommit Spending Review Legislation under this subsection is not in order.

“(F) CONSIDERATION OF THE HOUSE OF REPRESENTATIVES SPENDING REVIEW LEGISLATION.—

“(i) IN GENERAL.—If the Senate has received the House of Representatives companion resolution to the Spending Review Legislation introduced in the Senate prior to the vote required under paragraph (1)(C), then the Senate may consider, and the vote under paragraph (1)(C) may occur on, the House of Representatives companion resolution.

“(ii) PROCEDURE AFTER VOTE ON SENATE SPENDING REVIEW LEGISLATION.—If the Senate votes, pursuant to paragraph (1)(C), on the Spending Review Legislation introduced in the Senate, then immediately following that vote, or upon receipt of the House of Representatives companion resolution, the House of Representatives Spending Review Legislation shall be deemed to be considered, read the third time, and the vote on passage of the Senate resolution shall be considered to be the vote on the Spending Review Legislation received from the House of Representatives.

“(3) JURISDICTION.—The Committees on the Budget of the House of Representatives and Senate shall have exclusive jurisdiction over any Spending Review Legislation and all the provisions therein for all purposes of the rules of either House.”.

SEC. 304. Long-term reconciliation.

(a) Long-Term Reconciliation.—Section 310 of the Congressional Budget Act of 1974 is amended as follows:

“(h) Long-Term Reconciliation Directives in a Joint Resolution on the Budget.—

“(1) LONG-TERM RECONCILIATION DIRECTIVES.—In addition to a reconciliation measure as set forth in subsection (a), a joint resolution on the budget for any fiscal year, to the extent necessary to effectuate the spending levels as set forth for such categories in section 301(a) (providing for long-term spending levels as a percentage of gross domestic product) of such resolution, shall—

“(A) specify the total amount by which Medicare, Medicaid, the OASDI Trust Funds, and other direct spending outlays are to be reduced within the jurisdiction of a committee as a percentage of gross domestic product of such fiscal year; and

“(B) direct that committee to determine and recommend changes to accomplish a reduction of such total amount for such categories as a percentage of gross domestic product.

“(2) LIMITATION ON AMENDMENTS TO LONG-TERM RECONCILIATION LEGISLATION.—

“(A) It shall not be in order in the House of Representatives to consider any amendment to a reconciliation bill or reconciliation resolution if such amendment decreases outlay reductions below the level of such outlay reductions provided (for the fiscal years covered) in the reconciliation instructions which relate to such long-term reconciliation bill.

“(B) It shall not be in order in the Senate to consider any amendment to a reconciliation bill or reconciliation resolution if such amendment decreases outlay reductions below the level of such outlay reductions provided (for the fiscal years covered) in the reconciliation instructions which relate to such long-term reconciliation bill.

“(C) Subparagraphs (A) and (B) shall not apply if a declaration of war by the Congress is in effect.

“(D) For purposes of this section, the levels of outlays as a percentage of a gross domestic product for a fiscal year shall be determined on the basis of estimates made by the Committee on the Budget of the House of Representatives or of the Senate.

“(E) The Committee on Rules of the House of Representatives may make in order amendments to achieve outlay reductions specified by reconciliation directives contained in a joint resolution on the budget if a committee or committees of the House of Representatives fail to submit recommended reductions in outlays as a percentage or gross domestic product to its Committee on the Budget pursuant to its instruction.

“(F) In the Senate, a motion to strike a provision shall always be in order.

“(3) SUBJECT MATTER.—Subject matter included in a long-term reconciliation bill may be any of the following:

“(A) Any part of the Medicare program.

“(B) Medicaid.

“(C) The Old-Age, Survivors, and Disability Insurance Trust Fund.

“(D) Other direct spending.

“(4) APPLICATION.—Subsections (c), (d), and (g) shall not apply to long-term reconciliation measures reported under this subsection.”.

(b) Conforming Amendment.—In section 310(b) of the Congressional Budget Act of 1974, strike “subsection (a)” and insert “subsections (a) and (h)”.

SEC. 305. Long-term spending increase point of order.

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

Long-term Spending Increase Point of Order

“Sec. 320. (a) Congressional Budget Office Analysis of Proposals.—The Director of the Congressional Budget Office shall, to the extent practicable, prepare for each bill and joint resolution reported from committee (except measures within the jurisdiction of the Committee on Appropriations), and amendments thereto and conference reports thereon, an estimate of whether the measure causes, relative to current law, a net increase in direct spending in excess of $5,000,000,000 in any of the four 10-year periods beginning in fiscal year 2019 through fiscal year 2058.

“(b) In the Senate.—

“(1) POINT OF ORDER.—It shall not be in order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report that causes a net increase in deficits in excess of $5,000,000,000 in any of the four 10-year periods beginning in 2019 through 2058.

“(2) SUPERMAJORITY WAIVER AND APPEAL.—

“(A) This section may be waived or suspended only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

“(B) An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this section.

“(c) In the House of Representatives.—

“(1) POINT OF ORDER.—It shall not be in order in the House of Representatives to consider any bill, joint resolution, amendment, motion, or conference report that causes a net increase in deficits in excess of $5,000,000,000 in any of the four 10-year periods beginning in 2019 through 2058.

“(2) SUPERMAJORITY WAIVER AND APPEAL.—

“(A) This section may be waived or suspended only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

“(B) An affirmative vote of two-thirds of the Members, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this section.

“(d) Determinations of Budget Levels.—For purposes of this section, the levels of net deficit increases shall be determined on the basis of estimates provided by the chairmen of the Senate and House Committees on the Budget, as applicable.”.

(b) Conforming Amendment.—The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 319 the following new item:


“Sec. 320. Long-term spending increase point of order.”.

SEC. 400. Short title.

This subtitle may be cited as the “Federal Program Sunset Act of 2009”.

SEC. 401. Review and abolishment of Federal agencies.

(a) Schedule for Review.—Not later than one year after the date of the enactment of this Act, the Federal Agency Sunset Commission established under section 402 (in this subtitle referred to as the “Commission”) shall submit to Congress a schedule for review by the Commission, at least once every 12 years (or less, if determined appropriate by Congress), of the abolishment or reorganization of each agency.

(b) Review of Agencies Performing Related Functions.—In determining the schedule for review of agencies under subsection (a), the Commission shall provide that agencies that perform similar or related functions be reviewed concurrently to promote efficiency and consolidation.

(c) Abolishment of Agencies.—

(1) IN GENERAL.—Each agency shall—

(A) be reviewed according to the schedule created pursuant to this section; and

(B) be abolished not later than one year after the date that the Commission completes its review of the agency pursuant to such schedule, unless the agency is reauthorized by the Congress.

(2) EXTENSION.—The deadline for abolishing an agency may be extended for an additional two years after the date described in paragraph (1)(B) if the Congress enacts legislation extending such deadline by a vote of a super majority of the House of Representatives and the Senate.

SEC. 402. Establishment of Commission.

(a) Establishment.—There is established a commission to be known as the “Federal Agency Sunset Commission”.

(b) Composition.—The Commission shall be composed of 12 members (in this subtitle referred to as the “members”) who shall be appointed as follows:

(1) Six members shall be appointed by the Speaker of the House of Representatives, with minority members appointed with the consent of the minority leader of the House of Representatives.

(2) Six members shall be appointed by the majority leader of the Senate, with minority members appointed with the consent of the minority leader of the Senate.

(c) Qualifications of Members.—

(1) IN GENERAL.—(A) Of the members appointed under subsection (b)(1), four shall be members of the House of Representatives (not more than two of whom may be of the same political party), and two shall be an individual described in subparagraph (C).

(B) Of the members appointed under subsection (b)(2), four shall be members of the Senate (not more than two of whom may be of the same political party) and two shall be an individual described in subparagraph (C).

(C) An individual under this subparagraph is an individual—

(i) who is not a member of Congress; and

(ii) with expertise in the operation and administration of Government programs.

(2) CONTINUATION OF MEMBERSHIP.—If a member was appointed to the Commission as a Member of Congress and the member ceases to be a Member of Congress, that member shall cease to be a member of the Commission. The validity of any action of the Commission shall not be affected as a result of a member becoming ineligible to serve as a member for the reasons described in this paragraph.

(d) Initial Appointments.—All initial appointments to the Commission shall be made not later than 90 days after the date of the enactment of this Act.

(e) Chairman; Vice-Chairman.—

(1) INITIAL CHAIRMAN.—An individual shall be designated by the Speaker of the House of Representatives from among the members initially appointed under subsection (b)(1) to serve as chairman of the Commission for a period of 2 years.

(2) INITIAL VICE-CHAIRMAN.—An individual shall be designated by the majority leader of the Senate from among the individuals initially appointed under subsection (b)(2) to serve as vice-chairman of the Commission for a period of two years.

(3) ALTERNATE APPOINTMENTS OF CHAIRMEN AND VICE-CHAIRMEN.—Following the termination of the two-year period described in paragraphs (1) and (2), the Speaker and the majority leader shall alternate every two years in appointing the chairman and vice-chairman of the Commission.

(f) Terms of Members.—

(1) MEMBERS OF CONGRESS.—Each member appointed to the Commission who is a member of Congress shall serve for a term of six years, except that, of the members first appointed under paragraphs (1) and (2) of subsection (b), 2 members shall be appointed to serve a term of three years under each such paragraph.

(2) OTHER MEMBERS.—Each member of the Commission who is not a member of Congress shall serve for a term of three years.

(3) TERM LIMITS.—(A) A member of the Commission who is a member of Congress and who serves more than three years of a term may not be appointed to another term as a member.

(B) A member of the Commission who is not a member of Congress and who serves as a member of the Commission for more than 56 months may not be appointed to another term as a member.

(g) Powers of Commission.—

(1) HEARINGS AND SESSIONS.—The Commission may, for the purpose of carrying out this subtitle, hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Commission considers appropriate. The Commission may administer oaths to witnesses appearing before it.

(2) OBTAINING INFORMATION.—The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out its duties under this subtitle. Upon request of the chairman, the head of that department or agency shall furnish that information to the Commission in a full and timely manner.

(3) SUBPOENA POWER.—(A) The Commission may issue a subpoena to require the attendance and testimony of witnesses and the production of evidence relating to any matter under investigation by the Commission.

(B) If a person refuses to obey an order or subpoena of the Commission that is issued in connection with a Commission proceeding, the Commission may apply to the United States district court in the judicial district in which the proceeding is held for an order requiring the person to comply with the subpoena or order.

(4) IMMUNITY.—The Commission is an agency of the United States for purposes of part V of title 18, United States Code (relating to immunity of witnesses).

(5) CONTRACT AUTHORITY.—The Commission may contract with and compensate government and private agencies or persons for services without regard to section 3709 of the Revised Statutes (41 U.S.C. 5).

(h) Commission Procedures.—

(1) MEETINGS.—The Commission shall meet at the call of the chairman.

(2) QUORUM.—Seven members of the Commission shall constitute a quorum but a lesser number may hold hearings.

(i) Personnel Matters.—

(1) COMPENSATION.—Members shall not be paid by reason of their service as members.

(2) TRAVEL EXPENSES.—Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code.

(3) DIRECTOR.—The Commission shall have a Director who shall be appointed by the chairman. The Director shall be paid at a rate not to exceed the maximum rate of basic pay payable for GS–15 of the General Schedule.

(4) STAFF.—The Director may appoint and fix the pay of additional personnel as the director considers appropriate.

(5) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—The director and staff of the Commission shall be appointed subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates.

(j) Other Administrative Matters.—

(1) POSTAL AND PRINTING SERVICES.—The Commission may use the United States mails and obtain printing and binding services in the same manner and under the same conditions as other departments and agencies of the United States.

(2) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request of the Commission, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, the administrative support services necessary for the Commission to carry out its duties under this subtitle.

(3) EXPERTS AND CONSULTANTS.—The Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code.

(k) Sunset of Commission.—The Commission shall terminate on December 31, 2033, unless reauthorized by Congress.

SEC. 403. Review of efficiency and need for Federal agencies.

(a) In General.—The Commission shall review the efficiency and public need for each agency in accordance with the criteria described in section 404.

(b) Recommendations; Report to Congress.—The Commission shall submit to Congress and the President not later than September 1 of each year a report containing—

(1) an analysis of the efficiency of operation and public need for each agency to be reviewed in the year in which the report is submitted pursuant to the schedule submitted to Congress under section 2;

(2) recommendations on whether each such agency should be abolished or reorganized;

(3) recommendations on whether the functions of any other agencies should be consolidated, transferred, or reorganized in an agency to be reviewed in the year in which the report is submitted pursuant to the schedule submitted to Congress under section 2; and

(4) recommendations for administrative and legislative action with respect to each such agency, but not including recommendations for appropriation levels.

(c) Draft Legislation.—The Commission shall submit to Congress and the President not later than September 1 of each year a draft of legislation to carry out the recommendations of the Commission under subsection (b).

(d) Information Gathering.—The Commission shall—

(1) conduct public hearings on the abolishment of each agency reviewed under subsection (b);

(2) provide an opportunity for public comment on the abolishment of each such agency;

(3) require the agency to provide information to the Commission as appropriate; and

(4) consult with the Government Accountability Office, the Office of Management and Budget, the Congressional Budget Office, and the chairman and ranking minority members of the committees of Congress with oversight responsibility for the agency being reviewed regarding the operation of the agency.

(e) Use of Program Inventory.—The Commission shall use the program inventory prepared under section 9 in reviewing the efficiency and public need for each agency under subsection (a).

SEC. 404. Criteria for review.

The Commission shall evaluate the efficiency and public need for each agency pursuant to section 403 using the following criteria:

(1) The effectiveness, and the efficiency of the operation of, the programs carried out by each such agency.

(2) Whether the programs carried out by the agency are cost effective.

(3) Whether the agency has acted outside the scope of its original authority, and whether the original objectives of the agency have been achieved.

(4) Whether less restrictive or alternative methods exist to carry out the functions of the agency.

(5) The extent to which the jurisdiction of, and the programs administered by, the agency duplicate or conflict with the jurisdiction and programs of other agencies.

(6) The potential benefits of consolidating programs administered by the agency with similar or duplicative programs of other agencies, and the potential for consolidating such programs.

(7) The number and types of beneficiaries or persons served by programs carried out by the agency.

(8) The extent to which any trends, developments, and emerging conditions that are likely to affect the future nature and extent of the problems or needs that the programs carried out by the agency are intended to address.

(9) The extent to which the agency has complied with the provisions contained in the Government Performance and Results Act of 1993 (Public Law 103–62; 107 Stat. 285).

(10) The promptness and effectiveness with which the agency seeks public input and input from State and local governments on the efficiency and effectiveness of the performance of the functions of the agency.

(11) Whether the agency has worked to enact changes in the law that are intended to benefit the public as a whole rather than the specific business, institution, or individuals that the agency regulates.

(12) The extent to which the agency has encouraged participation by the public as a whole in making its rules and decisions rather than encouraging participation solely by those it regulates.

(13) The extent to which the public participation in rulemaking and decision making of the agency has resulted in rules and decisions compatible with the objectives of the agency.

(14) The extent to which the agency complies with section 552 of title 5, United States Code (commonly known as the “Freedom of Information Act”).

(15) The extent to which the agency complies with equal employment opportunity requirements regarding equal employment opportunity.

(16) The extent of the regulatory, privacy, and paperwork impacts of the programs carried out by the agency.

(17) The extent to which the agency has coordinated with State and local governments in performing the functions of the agency.

(18) The potential effects of abolishing the agency on State and local governments.

(19) The extent to which changes are necessary in the authorizing statutes of the agency in order that the functions of the agency can be performed in the most efficient and effective manner.

SEC. 405. Commission oversight.

(a) Monitoring of Implementation of Recommendations.—The Commission shall monitor implementation of laws enacting provisions that incorporate recommendations of the Commission with respect to abolishment or reorganization of agencies.

(b) Monitoring of Other Relevant Legislation.—

(1) IN GENERAL.—The Commission shall review and report to Congress on all legislation introduced in either house of Congress that establishes—

(A) a new agency; or

(B) a new program to be carried out by an existing agency.

(2) REPORT TO CONGRESS.—The Commission shall include in each report submitted to Congress under paragraph (1) an analysis of whether—

(A) the functions of the proposed agency or program could be carried out by one or more existing agencies;

(B) the functions of the proposed agency or program could be carried out in a less restrictive manner than the manner proposed in the legislation; and

(C) the legislation provides for public input regarding the performance of functions by the proposed agency or program.

SEC. 406. Rulemaking authority.

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

SEC. 407. Relocation of Federal employees.

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

SEC. 408. Program inventory.

(a) Preparation.—The Comptroller General and the Director of the Congressional Budget Office, in cooperation with the Director of the Congressional Research Service, shall prepare an inventory of Federal programs (in this subtitle referred to as the “program inventory”) within each agency.

(b) Purpose.—The purpose of the program inventory is to advise and assist the Congress and the Commission in carrying out the requirements of this subtitle. Such inventory shall not in any way bind the committees of the Senate or the House of Representatives with respect to their responsibilities under this subtitle and shall not infringe on the legislative and oversight responsibilities of such committees. The Comptroller General shall compile and maintain the inventory and the Director of the Congressional Budget Office shall provide budgetary information for inclusion in the inventory.

(c) Inventory Content.—The program inventory shall set forth for each program each of the following matters:

(1) The specific provision or provisions of law authorizing the program.

(2) The committees of the Senate and the House of Representatives which have legislative or oversight jurisdiction over the program.

(3) A brief statement of the purpose or purposes to be achieved by the program.

(4) The committees which have jurisdiction over legislation providing new budget authority for the program, including the appropriate subcommittees of the Committees on Appropriations of the Senate and the House of Representatives.

(5) The agency and, if applicable, the subdivision thereof responsible for administering the program.

(6) The grants-in-aid, if any, provided by such program to State and local governments.

(7) The next reauthorization date for the program.

(8) A unique identification number which links the program and functional category structure.

(9) The year in which the program was originally established and, where applicable, the year in which the program expires.

(10) Where applicable, the year in which new budget authority for the program was last authorized and the year in which current authorizations of new budget authority expire.

(d) Budget Authority.—The report also shall set forth for each program whether the new budget authority provided for such programs is—

(1) authorized for a definite period of time;

(2) authorized in a specific dollar amount but without limit of time;

(3) authorized without limit of time or dollar amounts;

(4) not specifically authorized; or

(5) permanently provided,

as determined by the Director of the Congressional Budget Office.

(e) CBO Information.—For each program or group of programs, the program inventory also shall include information prepared by the Director of the Congressional Budget Office indicating each of the following matters:

(1) The amounts of new budget authority authorized and provided for the program for each of the preceding four fiscal years and, where applicable, the four succeeding fiscal years.

(2) The functional and subfunctional category in which the program is presently classified and was classified under the fiscal year 2010 budget.

(3) The identification code and title of the appropriation account in which budget authority is provided for the program.

(f) Mutual Exchange of Information.—The Government Accountability Office, the Congressional Research Service, and the Congressional Budget Office shall permit the mutual exchange of available information in their possession which aids in the compilation of the program inventory.

(g) Assistance by Executive Branch.—The Office of Management and Budget, and the Executive agencies and the subdivisions thereof shall, to the extent necessary and possible, provide the Government Accountability Office with assistance requested by the Comptroller General in the compilation of the program inventory.

SEC. 409. Definition of agency.

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

SEC. 410. Short title.

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

SEC. 411. Legislative line-item veto.

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

Line-item veto authority

“Sec. 1011. (a) Proposed Cancellations.—Within 45 calendar days after the enactment of any bill or joint resolution providing any discretionary budget authority, item of direct spending, limited tariff benefit, or targeted tax benefit, the President may propose, in the manner provided in subsection (b), the cancellation of any dollar amount of such discretionary budget authority, item of direct spending, or targeted tax benefit. If the 45 calendar-day period expires during a period where either House of Congress stands adjourned sine die at the end of a Congress or for a period greater than 45 calendar days, the President may propose a cancellation under this section and transmit a special message under subsection (b) on the first calendar day of session following such a period of adjournment.

“(b) Transmittal of Special Message.—

“(1) SPECIAL MESSAGE.—

“(A) IN GENERAL.—The President may transmit to the Congress a special message proposing to cancel any dollar amounts of discretionary budget authority, items of direct spending, limited tariff benefits, or targeted tax benefits.

“(B) CONTENTS OF SPECIAL MESSAGE.—Each special message shall specify, with respect to the discretionary budget authority, items of direct spending proposed, limited tariff benefits, or targeted tax benefits to be canceled—

“(i) the dollar amount of discretionary budget authority, the specific item of direct spending (that OMB, after consultation with CBO, estimates to increase budget authority or outlays as required by section 1017(9)), the limited tariff benefit, or the targeted tax benefit that the President proposes be canceled;

“(ii) any account, department, or establishment of the Government to which such discretionary budget authority is available for obligation, and the specific project or governmental functions involved;

“(iii) the reasons why such discretionary budget authority, item of direct spending, limited tariff benefit, or targeted tax benefit should be canceled;

“(iv) to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect (including the effect on outlays and receipts in each fiscal year) of the proposed cancellation;

“(v) to the maximum extent practicable, all facts, circumstances, and considerations relating to or bearing upon the proposed cancellation and the decision to propose the cancellation, and the estimated effect of the proposed cancellation upon the objects, purposes, or programs for which the discretionary budget authority, item of direct spending, limited tariff benefit, or the targeted tax benefit is provided;

“(vi) a numbered list of cancellations to be included in an approval bill that, if enacted, cancels discretionary budget authority, items of direct spending, limited tariff benefit, or targeted tax benefits proposed in that special message; and

“(vii) if the special message is transmitted subsequent to or at the same time as another special message, a detailed explanation why the proposed cancellations are not substantially similar to any other proposed cancellation in such other message.

“(C) DUPLICATIVE PROPOSALS PROHIBITED.—The President may not propose to cancel the same or substantially similar discretionary budget authority, item of direct spending, limited tariff benefit, or targeted tax benefit more than one time under this Act.

“(D) MAXIMUM NUMBER OF SPECIAL MESSAGES.—The President may not transmit to the Congress more than 5 special messages under this subsection related to any bill or joint resolution described in subsection (a), but may transmit not more than 10 special messages for any omnibus budget reconciliation or appropriation measure.

“(2) ENACTMENT OF APPROVAL BILL.—

“(A) DEFICIT REDUCTION.—Amounts of budget authority, items of direct spending, limited tariff benefit, or targeted tax benefits which are canceled pursuant to enactment of a bill as provided under this section shall be dedicated only to reducing the deficit or increasing the surplus.

“(B) ADJUSTMENT OF LEVELS IN THE JOINT RESOLUTION ON THE BUDGET.—Not later than 5 days after the date of enactment of an approval bill as provided under this section, the chairs of the Committees on the Budget of the Senate and the House of Representatives shall revise allocations and aggregates and other appropriate levels under the appropriate joint resolution on the budget to reflect the cancellation, and the applicable committees shall report revised suballocations pursuant to section 302(b), as appropriate.

“(C) ADJUSTMENTS TO STATUTORY LIMITS.—After enactment of an approval bill as provided under this section, the Office of Management and Budget shall revise applicable limits under the Balanced Budget and Emergency Deficit Control Act of 1985, as appropriate.

“(D) TRUST FUNDS AND SPECIAL FUNDS.—Notwithstanding subparagraph (A), nothing in this part shall be construed to require or allow the deposit of amounts derived from a trust fund or special fund which are canceled pursuant to enactment of a bill as provided under this section to any other fund.

Procedures for expedited consideration

“Sec. 1012. (a) Expedited Consideration.—

“(1) IN GENERAL.—The majority leader or minority leader of each House or his designee shall (by request) introduce an approval bill as defined in section 1017 not later than the third day of session of that House after the date of receipt of a special message transmitted to the Congress under section 1011(b). If the bill is not introduced as provided in the preceding sentence in either House, then, on the fourth day of session of that House after the date of receipt of the special message, any Member of that House may introduce the bill.

“(2) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.—

“(A) REFERRAL AND REPORTING.—Any committee of the House of Representatives to which an approval bill is referred shall report it to the House of Representatives without amendment not later than the seventh legislative day after the date of its introduction. If a committee fails to report the bill within that period or the House of Representatives has adopted a joint resolution providing for adjournment sine die at the end of a Congress, such committee shall be automatically discharged from further consideration of the bill and it shall be placed on the appropriate calendar.

“(B) PROCEEDING TO CONSIDERATION.—After an approval bill is reported by or discharged from committee or the House of Representatives has adopted a joint resolution providing for adjournment sine die at the end of a Congress, it shall be in order to move to proceed to consider the approval bill in the House of Representatives within two legislative days after the day on which the proponent announces his intention to offer the motion. Such a motion shall not be in order after the House of Representatives has disposed of a motion to proceed with respect to that special message. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. A motion to reconsider the vote by which the motion is disposed of shall not be in order.

“(C) CONSIDERATION.—The approval bill shall be considered as read. All points of order against an approval bill and against its consideration are waived. The previous question shall be considered as ordered on an approval bill to its passage without intervening motion except five hours of debate equally divided and controlled by the proponent and an opponent and one motion to limit debate on the bill. A motion to reconsider the vote on passage of the bill shall not be in order.

“(D) SENATE BILL.—An approval bill received from the Senate shall not be referred to committee.

“(3) CONSIDERATION IN THE SENATE.—

“(A) MOTION TO PROCEED TO CONSIDERATION.—A motion to proceed to the consideration of a bill under this subsection in the Senate shall not be debatable. It shall not be in order to move to reconsider the vote by which the motion to proceed is agreed to or disagreed to.

“(B) LIMITS ON DEBATE.—Debate in the Senate on a bill under this subsection, and all debatable motions and appeals in connection therewith (including debate pursuant to subparagraph (D)), shall not exceed 10 hours, equally divided and controlled in the usual form.

“(C) APPEALS.—Debate in the Senate on any debatable motion or appeal in connection with a bill under this subsection shall be limited to not more than 1 hour, to be equally divided and controlled in the usual form.

“(D) MOTION TO LIMIT DEBATE.—A motion in the Senate to further limit debate on a bill under this subsection is not debatable.

“(E) MOTION TO RECOMMIT.—A motion to recommit a bill under this subsection is not in order.

“(F) CONSIDERATION OF THE HOUSE OF REPRESENTATIVES BILL.—

“(i) IN GENERAL.—If the Senate has received the House of Representatives companion bill to the bill introduced in the Senate prior to the vote required under paragraph (1)(C), then the Senate may consider, and the vote under paragraph (1)(c) may occur on, the House of Representatives companion bill.

“(ii) PROCEDURE AFTER VOTE ON SENATE BILL.—If the Senate votes, pursuant to paragraph (1)(C), on the bill introduced in the Senate, then immediately following that vote, or upon receipt of the House of Representatives companion bill, the House of Representatives bill shall be deemed to be considered, read the third time, and the vote on passage of the Senate bill shall be considered to be the vote on the bill received from the House of Representatives.

“(b) Amendments Prohibited.—No amendment to, or motion to strike a provision from, a bill considered under this section shall be in order in either the Senate or the House of Representatives.

Presidential deferral authority

“Sec. 1013. (a) Temporary Presidential Authority To Withhold Discretionary Budget Authority.—

“(1) IN GENERAL.—At the same time as the President transmits to the Congress a special message pursuant to section 1011(b), the President may direct that any dollar amount of discretionary budget authority to be canceled in that special message shall not be made available for obligation for a period not to exceed 45 calendar days from the date the President transmits the special message to the Congress.

“(2) EARLY AVAILABILITY.—The President shall make any dollar amount of discretionary budget authority deferred pursuant to paragraph (1) available at a time earlier than the time specified if he determines that continuation of the deferral not further the purposes of this Act.

“(b) Temporary Presidential Authority To Suspend Direct Spending.—

“(1) IN GENERAL.—At the same time as the President transmits to the Congress a special message pursuant to section 1011(b), the President may suspend the implementation of any item of direct spending proposed to be canceled in that special message for a period not to exceed 45 calendar days from the date the President transmits the special message to the Congress.

“(2) EARLY AVAILABILITY.—The President shall terminate the suspension of any item of direct spending at a time earlier than the time specified if he determines that continuation of the suspension will not further the purposes of this Act.

“(c) Temporary Presidential Authority To Suspend a Limited Tariff Benefit.—

“(1) IN GENERAL.—At the same time as the President transmits to the Congress a special message pursuant to section 1011(b), the President may suspend the implementation of any limited tariff benefit proposed to be canceled in that special message for a period not to exceed 45 calendar days from the date the President transmits the special message to the Congress.

“(2) EARLY AVAILABILITY.—The President shall terminate the suspension of any limited tariff benefit at a time earlier than the time specified if he determines that continuation of the suspension will not further the purposes of this Act.

“(d) Temporary Presidential Authority To Suspend a Targeted Tax Benefit.—

“(1) IN GENERAL.—At the same time as the President transmits to the Congress a special message pursuant to section 1011(b), the President may suspend the implementation of any targeted tax benefit proposed to be repealed in that special message for a period not to exceed 45 calendar days from the date the President transmits the special message to the Congress.

“(2) EARLY AVAILABILITY.—The President shall terminate the suspension of any targeted tax benefit at a time earlier than the time specified if he determines that continuation of the suspension will not further the purposes of this Act.

“(e) Extension of 45-Day Period.—The President may transmit to the Congress not more than one supplemental special message to extend the period to suspend the implementation of any discretionary budget authority, item of direct spending, limited tariff benefit, or targeted tax benefit, as applicable, by an additional 45 calendar days. Any such supplemental message may not be transmitted to the Congress before the 40th day of the 45-day period set forth in the preceding message or later than the last day of such period.

Identification of targeted tax benefits

“Sec. 1014. (a) Statement.—The chairman of the Committee on Ways and Means of the House of Representatives and the chairman of the Committee on Finance of the Senate acting jointly (hereafter in this subsection referred to as the ‘chairmen’) shall review any revenue or reconciliation bill or joint resolution which includes any amendment to the Internal Revenue Code of 1986 that is being prepared for filing by a committee of conference of the two Houses, and shall identify whether such bill or joint resolution contains any targeted tax benefits. The chairmen shall provide to the committee of conference a statement identifying any such targeted tax benefits or declaring that the bill or joint resolution does not contain any targeted tax benefits. Any such statement shall be made available to any Member of Congress by the chairmen immediately upon request.

“(b) Statement Included in Legislation.—

“(1) IN GENERAL.—Notwithstanding any other rule of the House of Representatives or any rule or precedent of the Senate, any revenue or reconciliation bill or joint resolution which includes any amendment to the Internal Revenue Code of 1986 reported by a committee of conference of the two Houses may include, as a separate section of such bill or joint resolution, the information contained in the statement of the chairmen, but only in the manner set forth in paragraph (2).

“(2) APPLICABILITY.—The separate section permitted under subparagraph (A) shall read as follows: ‘Section 1021 of the Congressional Budget and Impoundment Control Act of 1974 shall ______ apply to ________.’, with the blank spaces being filled in with—

“(A) in any case in which the chairmen identify targeted tax benefits in the statement required under subsection (a), the word ‘only’ in the first blank space and a list of all of the specific provisions of the bill or joint resolution in the second blank space; or

“(B) in any case in which the chairmen declare that there are no targeted tax benefits in the statement required under subsection (a), the word ‘not’ in the first blank space and the phrase ‘any provision of this Act’ in the second blank space.

“(c) Identification in Revenue Estimate.—With respect to any revenue or reconciliation bill or joint resolution with respect to which the chairmen provide a statement under subsection (a), the Joint Committee on Taxation shall—

“(1) in the case of a statement described in subsection (b)(2)(A), list the targeted tax benefits in any revenue estimate prepared by the Joint Committee on Taxation for any conference report which accompanies such bill or joint resolution, or

“(2) in the case of a statement described in 13 subsection (b)(2)(B), indicate in such revenue estimate that no provision in such bill or joint resolution has been identified as a targeted tax benefit.

“(d) President’s Authority.—If any revenue or reconciliation bill or joint resolution is signed into law—

“(1) with a separate section described in subsection (b)(2), then the President may use the authority granted in this section only with respect to any targeted tax benefit in that law, if any, identified in such separate section; or

“(2) without a separate section described in subsection (b)(2), then the President may use the authority granted in this section with respect to any targeted tax benefit in that law.

Treatment of cancellations

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

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

“Sec. 1017. As used in this part:

“(1) APPROPRIATION LAW.—The term ‘appropriation law’ means an Act referred to in section 105 of title 1, United States Code, including any general or special appropriation Act, or any Act making supplemental, deficiency, or continuing appropriations, that has been signed into law pursuant to Article I, section 7, of the Constitution of the United States.

“(2) APPROVAL BILL.—The term ‘approval bill’ means a bill or joint resolution which only approves proposed cancellations of dollar amounts of discretionary budget authority, items of new direct spending, limited tariff benefits, or targeted tax benefits in a special message transmitted by the President under this part and—

“(A) the title of which is as follows: ‘A bill approving the proposed cancellations transmitted by the President on ___’, the blank space being filled in with the date of transmission of the relevant special message and the public law number to which the message relates;

“(B) which does not have a preamble; and

“(C) which provides only the following after the enacting clause: ‘That the Congress approves of proposed cancellations ___’, the blank space being filled in with a list of the cancellations contained in the President’s special message, ‘as transmitted by the President in a special message on ____’, the blank space being filled in with the appropriate date, ‘regarding ____.’, the blank space being filled in with the public law number to which the special message relates;

“(D) which only includes proposed cancellations that are estimated by CBO to meet the definition of discretionary budgetary authority or items of direct spending, or limited tariff benefits, or that are identified as targeted tax benefits pursuant to section 1014;

“(E) if any proposed cancellation other than discretionary budget authority or targeted tax benefits is estimated by CBO to not meet the definition of item of direct spending, then the approval bill shall include at the end: ‘The President shall cease the suspension of the implementation of the following under section 1013 of the Impoundment Control Act of 1974: _____’, the blank space being filled in with the list of such proposed cancellations; and

“(F) if no CBO estimate is available, then the entire list of legislative provisions proposed by the President is inserted in the second blank space in subparagraph (C).

“(3) CALENDAR DAY.—The term ‘calendar day’ means a standard 24-hour period beginning at midnight.

“(4) CANCEL OR CANCELLATION.—The terms ‘cancel’ or ‘cancellation’ means to prevent—

“(A) budget authority from having legal force or effect;

“(B) in the case of entitlement authority, to prevent the specific legal obligation of the United States from having legal force or effect;

“(C) in the case of the food stamp program, to prevent the specific provision of law that provides such benefit from having legal force or effect; or

“(D) a limited tariff benefit from having legal force or effect, and to make any necessary, conforming statutory change to ensure that such limited tariff benefit is not implemented; or

“(E) a targeted tax benefit from having legal force or effect, and to make any necessary, conforming statutory change to ensure that such targeted tax benefit is not implemented and that any budgetary resources are appropriately canceled.

“(5) CONGRESSIONAL BUDGET OFFICE.—The term ‘CBO’ means the Director of the Congressional Budget Office.

“(6) DIRECT SPENDING.—The term ‘direct spending’ means—

“(A) budget authority provided by law (other than an appropriation law);

“(B) entitlement authority; and

“(C) the food stamp program.

“(7) AMOUNT OF DISCRETIONARY BUDGET AUTHORITY.—(A) Except as provided in subparagraph (B), the term ‘dollar amount of discretionary budget authority’ means the entire dollar amount of budget authority—

“(i) specified in an appropriation law, or the entire dollar amount of budget authority or obligation limitation required to be allocated by a specific proviso in an appropriation law for which a specific dollar figure was not included;

“(ii) represented separately in any table, chart, or explanatory text included in the statement of managers or the governing committee report accompanying such law;

“(iii) required to be allocated for a specific program, project, or activity in a law (other than an appropriation law) that mandates the expenditure of budget authority from accounts, programs, projects, or activities for which budget authority is provided in an appropriation law;

“(iv) represented by the product of the estimated procurement cost and the total quantity of items specified in an appropriation law or included in the statement of managers or the governing committee report accompanying such law; or

“(v) represented by the product of the estimated procurement cost and the total quantity of items required to be provided in a law (other than an appropriation law) that mandates the expenditure of budget authority from accounts, programs, projects, or activities for which budget authority is provided in an appropriation law.

“(B) The term ‘dollar amount of discretionary budget authority’ does not include—

“(i) direct spending;

“(ii) budget authority in an appropriation law which funds direct spending provided for in other law;

“(iii) any existing budget authority canceled in an appropriation law; or

“(iv) any restriction, condition, or limitation in an appropriation law or the accompanying statement of managers or committee reports on the expenditure of budget authority for an account, program, project, or activity, or on activities involving such expenditure.

“(8) ITEM OF DIRECT SPENDING.—The term ‘item of direct spending’ means any provision of law that results in an increase in budget authority or outlays for direct spending relative to the most recent levels calculated consistent with the methodology used to calculate a baseline under section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 and included with a budget submission under section 1105(a) of title 31, United States Code, in the first year or the 5-year period for which the item is effective. However, such item does not include an extension or reauthorization of existing direct spending, but instead only refers to provisions of law that increase such direct spending.

“(9) LIMITED TARIFF BENEFIT.—The term ‘limited tariff benefit’ means any provision of law that modifies the Harmonized Tariff Schedule of the United States in a manner that benefits 10 or fewer entities (as defined in paragraph (12)(B)).

“(10) OMB.—The term ‘OMB’ means the Director of the Office of Management and Budget.

“(11) OMNIBUS RECONCILIATION OR APPROPRIATION MEASURE.—The term ‘omnibus reconciliation or appropriation measure’ means—

“(A) in the case of a reconciliation bill, any such bill that is reported to its House by the Committee on the Budget; or

“(B) in the case of an appropriation measure, any such measure that provides appropriations for programs, projects, or activities falling within 2 or more section 302(b) suballocations.

“(12) TARGETED TAX BENEFIT.—(A) The term ‘targeted tax benefit’ means any revenue-losing provision that provides a Federal tax deduction, credit, exclusion, or preference to ten or fewer beneficiaries (determined with respect to either present law or any provision of which the provision is a part) under the Internal Revenue Code of 1986 in any year for which the provision is in effect;

“(B) for purposes of subparagraph (A)—

“(i) all businesses and associations that are members of the same controlled group of corporations (as defined in section 1563(a) of the Internal Revenue Code of 1986) shall be treated as a single beneficiary;

“(ii) all shareholders, partners, members, or beneficiaries of a corporation, partnership, association, or trust or estate, respectively, shall be treated as a single beneficiary;

“(iii) all employees of an employer shall be treated as a single beneficiary;

“(iv) all qualified plans of an employer shall be treated as a single beneficiary;

“(v) all beneficiaries of a qualified plan shall be treated as a single beneficiary;

“(vi) all contributors to a charitable organization shall be treated as a single beneficiary;

“(vii) all holders of the same bond issue shall be treated as a single beneficiary; and

“(viii) if a corporation, partnership, association, trust or estate is the beneficiary of a provision, the shareholders of the corporation, the partners of the partnership, the members of the association, or the beneficiaries of the trust or estate shall not also be treated as beneficiaries of such provision;

“(C) for the purpose of this paragraph, the term ‘revenue-losing provision’ means any provision that is estimated to result in a reduction in Federal tax revenues (determined with respect to either present law or any provision of which the provision is a part) for any one of the two following periods—

“(i) the first fiscal year for which the provision is effective; or

“(ii) the period of the five fiscal years beginning with the first fiscal year for which the provision is effective;

“(D) the term ‘targeted tax benefit’ does not include any provision which applies uniformly to an entire industry; and

“(E) the terms used in this paragraph shall have the same meaning as those terms have generally in the Internal Revenue Code of 1986, unless otherwise expressly provided.

Expiration

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

“Sec. 1019. All spending reductions related to this title shall be for deficit reduction.”.

SEC. 412. Technical and conforming amendments.

(a) Exercise of Rulemaking Powers.—Section 904 of the Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended—

(1) in subsection (a), by striking “1017” and inserting “1012”; and

(2) in subsection (d), by striking “section 1017” and inserting “section 1012”.

(b) Analysis by Congressional Budget Office.—Section 402 of the Congressional Budget Act of 1974 is amended by inserting “(a)” after “402.” and by adding at the end the following new subsection:

“(b) Upon the receipt of a special message under section 1011 proposing to cancel any item of direct spending, the Director of the Congressional Budget Office shall prepare an estimate of the savings in budget authority or outlays resulting from such proposed cancellation relative to the most recent levels calculated consistent with the methodology used to calculate a baseline under section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 and included with a budget submission under section 1105(a) of title 31, United States Code, and transmit such estimate to the chairmen of the Committees on the Budget of the House of Representatives and Senate.”.

(c) Clerical Amendments.—(1) Section 1(a) of the Congressional Budget and Impoundment Control Act of 1974 is amended by striking the last sentence.

(2) Section 1021(c) of such Act (as redesignated) is amended is amended by striking “rescinded or that is to be reserved” and insert “canceled” and by striking “1012” and inserting “1011”.

(3) Table of Contents.—The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by deleting the contents for parts B and C of title X and inserting the following:


“Sec. 1011. Line-item veto authority.

“Sec. 1012. Procedures for expedited consideration.

“Sec. 1013. Presidential deferral authority.

“Sec. 1014. Identification of targeted tax benefits.

“Sec. 1015. Treatment of cancellations.

“Sec. 1016. Reports by Comptroller General.

“Sec. 1017. Definitions.

“Sec. 1018. Expiration.

“Sec. 1019. Deficit reduction.

“Sec. 1020. Suits by Comptroller General.

“Sec. 1021. Proposed deferrals of budget authority.”.

(d) Effective Date.—The amendments made by this subtitle shall take effect on the date of its enactment and apply only to any dollar amount of discretionary budget authority, item of direct spending, or targeted tax benefit provided in an Act enacted on or after the date of enactment of this Act.

SEC. 413. Rescission measures considered.

(a) Rules Amendment.—Clause 6(c) of rule XIII of the Rules of the House of Representatives is amended by inserting before the period “, or a rule or order that limits any amendment otherwise in order to a rescission bill”.

(b) Automatic Allocations Reductions.—Clause 4(b) of rule X of the Rules of the House of Representatives is amended by inserting “(1)” after “(b)”, by redesignating subparagraphs (1) through (6) as subdivisions (A) through (F), respectively, and by adding at the end the following:

“(2)(A) Whenever a rescission bill passes the House of Representatives, the Committee on the Budget shall immediately reduce the applicable allocations under section 302(a) of the Congressional Budget Act of 1974 by the total amount of reductions in budget authority and in outlays resulting from such rescission bill.

“(B) As used in this subparagraph, the term ‘rescission bill’ means a bill or joint resolution which only rescinds, in whole or in part, budget authority and which includes only titles corresponding to the most recently enacted appropriation bills that continue to include unobligated balances.”.

(c) Privileged Discharge Resolutions.—Rule XIII of the Rules of the House of Representatives is amended by adding at the end the following new clause:

“8. (a) By February 1, May 1, July 30, and November 11 of each session, the majority leader shall introduce a rescission bill. If such bill is not introduced by that date, then whenever a rescission bill is introduced during a session on or after that date, a motion to discharge the committee from its consideration shall be privileged after the 10-legislative day period beginning on that date for the first 5 such bills.

“(b) It shall not be in order to offer any amendment to a rescission bill except an amendment that increases the amount of budget authority that such bill rescinds.

“(c) As used in this clause and in clause 6, the term ‘rescission bill’ has the meaning given such term in clause 4(b)(2)(B) of rule X.”.

(d) Point of Order.—Rule XXI of the Rules of the House of Representatives (as amended by subsection (d)) is further amended by adding at the end the following new clause:

“ 9. (a) It shall not be in order to consider any rescission bill, or conference report thereon or amendment thereto, unless—

“(1) in the case of such bill or conference report thereon, it is made available to Members and the general public on the Internet for at least 48 hours before its consideration; or

“(2)(A) in the case of an amendment to such rescission bill made in order by a rule, it is made available to Members and the general public on the Internet within one hour after the rule is filed; or

“(B) in the case of an amendment under an open rule, it is made available to Members and the general public on the Internet immediately after being offered; in a format that is searchable and sortable.

“(3) No amendment to an amendment to a rescission bill shall be in order unless germane to the amendment to which it is offered.”.

SEC. 420. Short title.

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

SEC. 421. Establishment of Commission.

(a) Establishment.—There is established the Commission on the Accountability and Review of Federal Agencies (hereafter in this Act referred to as the “Commission”).

(b) Membership.—

(1) NUMBER AND APPOINTMENT.—

(A) IN GENERAL.—The Commission shall be composed of 7 members, whom shall have experience in finance and the analysis of Federal spending, appointed by the President after consultation with the majority and minorities leaders of the House of Representatives and the Senate, as follows:

(i) One in consultation with the Speaker of the House of Representatives.

(ii) One in consultation with the minority leader of the House of Representatives.

(iii) One in consultation with the majority leader of the Senate.

(iv) One in consultation with the minority leader of the Senate.

(v) Three other members.

(B) EX OFFICIO MEMBERS.—The President may appoint up to 4 Members of Congress (up to 2 from each House) as nonvoting ex officio members of the Commission.

(2) CHAIRMAN AND VICE-CHAIRMAN.—The President shall appoint a chairman and vice-chairman from among the members of the Commission.

(c) Period of Appointment; Vacancies.—Members shall be appointed for the life of the Commission. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment.

(d) Initial Meeting.—Not later than 30 days after the date on which all members of the Commission have been appointed, the Commission shall hold its first meeting.

(e) Meetings.—The Commission shall meet at the call of the chairman.

(f) Quorum.—A majority of the members of the Commission shall constitute a quorum, but a lesser number of members may hold hearings.

SEC. 422. Duties of the Commission.

(a) Definition.—The term “agency”, as used in this section, has the meaning given the term “executive agency” under section 105 of title 5, United States Code.

(b) In General.—The Commission shall—

(1) evaluate all agencies and programs within those agencies, using the criteria under subsection (c); and

(2) submit to Congress—

(A) a plan with recommendations of the agencies and programs that should be realigned or eliminated; and

(B) proposed legislation to implement the plan under subparagraph (A), but shall be limited in content to matters directly related to the purpose of the Commission.

(c) Criteria.—

(1) COST EFFECTIVE.—Whether the agency or program as carried out by the agency is cost effective and achieves its stated purpose of goals.

(2) MISSION.—The extent to which the program has achieved or completed its intended purpose.

(3) DUPLICATIVE.—The extent to which the agency or program duplicates or conflicts with other Federal agencies, State and local government, or the private sector.

(4) COORDINATION WITH STATE AND LOCAL GOVERNMENTS.—The extent to which the agency coordinates effectively with State and local governments in performing the functions of the program.

(5) PERFORMANCE.—The extent to which the program failed to meet its objectives or a national priority or purpose

(6) MANAGEMENT STRUCTURE.—The extent to which changes in the management structure of the agency or program or its placement in the Executive Branch are needed to improve the overall efficiency, effectiveness, or accountability of Executive Branch operations.

(7) NATIONAL NEEDS.—The extent to which the program benefits special interest groups and does not meet a national priority or purpose.

(d) Report.—

(1) IN GENERAL.—Not later than 2 years after the date of enactment of this Act, the Commission shall submit to the President and Congress a report that includes—

(A) the plan described under subsection (b)(1) with supporting documentation for all recommendations; and

(B) the proposed legislation described under subsection (b)(2).

(2) USE OF SAVINGS.—The proposed legislation under paragraph (1)(B) shall provide that all funds saved by the implementation of the plan under paragraph (1)(A) shall be used for deficit reduction.

SEC. 423. Powers of the Commission.

(a) Hearings and Subpoena Power.—The Commission or, at its direction, any subcommittee or member of the Commission, may, for the purpose of carrying out this Act—

(1) hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and administer such oaths as any member of the Commission considers advisable;

(2) require, by subpoena or otherwise, the attendance and testimony of such witnesses as any member of the Commission considers advisable; and

(3) require, by subpoena or otherwise, the production of such books, records, correspondence, memoranda, papers, documents, tapes, and other evidentiary materials relating to any matter under investigation by the Commission.

(b) Enforcement of Subpoenas.—The Commission may issue subpoenas as follows:

(1) ISSUANCE.—Subpoenas shall only be issued pursuant to this section if approved by a vote of the Commission, shall bear the signature of the chairman of the Commission, and shall be served by a person or class of persons designated by the chairman for that purpose.

(2) ENFORCEMENT.—In the case of contumacy or failure to obey a subpoena issued under subsection (a), the United States district court for the judicial district in which the subpoenaed person resides, is served, or may be found, may issue an order requiring such person to appear at any designated place to testify or to produce documentary or other evidence. Any failure to obey the order of the court may be punished by the court as a contempt of that court.

(3) LIMITATION ON ISSUANCE AND ENFORCEMENT.—Subpoenas may only be issued pursuant to this section to Federal agencies, Federal contractors, or persons or entities receiving Federal funds, and only for information or matter directly related to the purpose of the Commission.

(c) Information From Federal Agencies.—The Commission may secure directly from any Federal department or agency such information as the Commission considers necessary to carry out this Act. Upon request of the chairman of the Commission, the head of such department or agency shall furnish such information to the Commission.

(d) Postal Services.—The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.

SEC. 424. Commission personnel matters.

(a) Compensation of Members.—

(1) NON-FEDERAL MEMBERS.—Except as provided under subsection (b), each member of the Commission who is not an officer or employee of the Federal Government shall not be compensated.

(2) FEDERAL OFFICERS OR EMPLOYEES.—All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States.

(b) Travel Expenses.—The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.

(c) Staff.—

(1) IN GENERAL.—The chairman of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment of an executive director shall be subject to confirmation by the Commission.

(2) COMPENSATION.—Upon the approval of the chairman, the executive director may fix the compensation of the executive director and other personnel without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the maximum rate payable for a position at GS–15 of the General Schedule under section 5332 of such title.

(3) PERSONNEL AS FEDERAL EMPLOYEES.—

(A) IN GENERAL.—The executive director and any personnel of the Commission who are employees shall be employees under section 2105 of title 5, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.

(B) MEMBERS OF COMMISSION.—Subparagraph (A) shall not be construed to apply to members of the Commission.

(d) Detail of Government Employees.—Any Federal Government employee may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.

(e) Procurement of Temporary and Intermittent Services.—The chairman of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.

SEC. 425. Termination of the Commission.

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

SEC. 426. Congressional consideration of reform proposals.

(a) Definitions.—In this section—

(1) the term “implementation bill” means only a bill which is introduced as provided under subsection (b), and contains the proposed legislation included in the report submitted to Congress under section 3, without modification; and

(2) the term “calendar day” means a calendar day other than 1 on which either House is not in session because of an adjournment of more than 3 days to a date certain.

(b) Introduction; Referral; and Report or Discharge.—

(1) INTRODUCTION.—On the first calendar day on which both Houses are in session, on or immediately following the date on which the report is submitted to Congress under section 3, a single implementation bill shall be introduced (by request)—

(A) in the Senate by the majority leader of the Senate, for himself and the minority leader of the Senate, or by Members of the Senate designated by the majority leader and minority leader of the Senate; and

(B) in the House of Representatives by the majority leader of the House of Representatives, for himself and the minority leader of the House of Representatives, or by Members of the House of Representatives designated by the Speaker and minority leader of the House of Representatives.

(2) REFERRAL.—The implementation bills introduced under paragraph (1) shall be referred to any appropriate committee of jurisdiction in the Senate and any appropriate committee of jurisdiction in the House of Representatives. A committee to which an implementation bill is referred under this paragraph may report such bill to the respective House without substantive revision.

(3) REPORT OR DISCHARGE.—If a committee to which an implementation bill is referred has not reported such bill by the end of the 30th calendar day, excepting Saturdays and Sundays, after the date of the introduction of such bill, such committee shall be immediately discharged from further consideration of such bill, and upon being reported or discharged from the committee, such bill shall be placed on the appropriate calendar.

(c) Floor Consideration.—

(1) IN GENERAL.—When the committee to which an implementation bill is referred has reported, or has been discharged under subsection (b)(3), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for any Member of the respective House to move to proceed to the consideration of the implementation bill, and all points of order against such legislation and against its consideration) are waived, except those arising under sections 302(f) and 311 of the Congressional Budget Act of 1974. The motion is highly privileged in the House of Representatives and is privileged in the Senate and is not debatable. The motion is not subject to amendment, or to a motion to postpone, or motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the implementation bill is agreed to, it shall remain the unfinished business of the respective House until disposed of.

(2) COST ESTIMATE.—An implementation bill may not be considered pursuant to paragraph (1) unless a cost estimate has been prepared for such bill by the Congressional Budget Office and been publicly available for 72 hours prior to consideration.

(3) AMENDMENTS.—An implementation bill may not be amended in the Senate or the House of Representatives.

(4) DEBATE.—Debate on the implementation bill, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the implementation bill is not in order. A motion to reconsider the vote by which the implementation bill is agreed to or disagreed to is not in order.

(5) VOTE ON FINAL PASSAGE.—Immediately following the conclusion of the debate on an implementation bill, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the appropriate House, the vote on final passage of the implementation bill shall occur.

(6) RULINGS OF THE CHAIR ON PROCEDURE.—Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to an implementation bill shall be decided without debate.

(d) Coordination With Action by Other House.—If, before the passage by 1 House of an implementation bill of that House, that House receives from the other House an implementation bill, then the following procedures shall apply:

(1) NON-REFERRAL.—The implementation bill of the other House shall not be referred to a committee.

(2) VOTE ON BILL OF OTHER HOUSE.—With respect to an implementation bill of the House receiving the implementation bill—

(A) the procedure in that House shall be the same as if no implementation bill had been received from the other House; but

(B) the vote on final passage shall be on the implementation bill of the other House.

(e) Rules of the Senate and the House of Representatives.—This section is enacted by Congress—

(1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of an implementation bill described in subsection (a), and it supersedes other rules only to the extent that it is inconsistent with such rules; and

(2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

SEC. 427. Authorization of appropriations.

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

SEC. 500. Short title.

This title may be cited as the “Transparency in Budgeting Act of 2009”.

SEC. 501. Civil Service Retirement System.

(a) Civil Service Retirement and Disability Fund.—Chapter 83 of title 5, United States Code, is amended—

(1) in section 8331—

(A) in paragraph (17)—

(i) by striking “normal cost” and inserting “normal cost percentage”; and

(ii) by inserting “and standards (using dynamic assumptions)” after “practice”;

(B) by amending paragraph (18) to read as follows:

“(18) ‘Fund balance’ means the current net assets of the Fund available for payment of benefits, as determined by the Office in accordance with appropriate accounting standards, but does not include any amount attributable to—

“(A) the Federal Employees’ Retirement System; or

“(B) contributions made under the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 by or on behalf of any individual who became subject to the Federal Employees’ Retirement System;”

(C) by amending paragraph (19) to read as follows:

“(19) ‘accrued liability’ means the estimated excess of the present value of all benefits payable from the Fund to employees and Members, and former employees and Members, subject to this subchapter, and their survivors, over the present value of deductions to be withheld from the future basic pay of employees and Members currently subject to this subchapter and of future agency contributions to be made in their behalf;”

(D) in paragraph (27) by striking “and” at the end;

(E) in paragraph (28) by striking the period at the end and inserting a semicolon; and

(F) by adding at the end the following paragraphs:

“(29) ‘dynamic assumptions’ means economic assumptions that are used in determining actuarial costs and liabilities of a retirement system and in anticipating the effects of long-term future—

“(A) investment yields;

“(B) increases in rates of basic pay; and

“(C) rates of price inflation; and

“(30) ‘unfunded liability’ means the estimated excess of—

“(A) the actuarial present value of all future benefits payable from the Fund under this subchapter based on the service of current or former employees or Members, over

“(B) the sum of—

“(i) the actuarial present value of deductions to be withheld from the future basic pay of employees and Members currently subject to this chapter pursuant to section 8334;

“(ii) the actuarial present value of the future contributions to be made pursuant to section 8334 with respect to employees and Members currently subject to this subchapter;

“(iii) the Fund balance, as defined in paragraph (18), as of the date the unfunded liability is determined; and

“(iv) any other appropriate amount, as determined by the Office of Personnel Management in accordance with generally accepted actuarial practices and principles.”;

(2) in section 8334—

(A) in subsection (a)(1)—

(i) by striking the last two sentences;

(ii) by redesignating that subsection, as so amended, as (a)(1)(A); and

(iii) by adding at the end the following new subparagraphs:

“(B) Except as provided in subparagraph (E), each employing agency having any employees or Members subject to subparagraph (A) shall contribute from amounts available for salaries and expenses an amount equal to the sum of—

“(i) the product of—

“(I) the normal cost percentage, as determined for employees (other than employees covered by clause (ii)), multiplied by

“(II) the aggregate amount of basic pay payable by the agency, for the period involved, to employees (under subclause (I)) who are within such agency; and

“(ii) the product of—

“(I) the normal cost percentage, as determined for Members, Congressional employees, law enforcement officers, firefighters, air traffic controllers, bankruptcy judges, Court of Federal Claims judges, United States magistrates, judges of the United States Court of Appeals for the Armed Forces, members of the Capitol Police, nuclear materials couriers, and members of the Supreme Court Police, multiplied by

“(II) the aggregate amount of basic pay payable by the agency for the period involved, to employees and Members (under subclause (I)) who are within such agency.

“(C) In determining the normal cost percentage to be applied under subparagraph (B), amounts provided for under subparagraph (A) shall be taken into account.

“(D) Contributions under this paragraph shall be paid—

“(i) in the case of law enforcement officers, firefighters, air traffic controllers, bankruptcy judges, Court of Federal Claims judges, United States magistrates, judges of the United States Court of Appeals for the Armed Forces, members of the Supreme Court Police, nuclear materials couriers and other employees, from the appropriations or fund used to pay such law enforcement officers, firefighters, air traffic controllers, bankruptcy judges, Court of Federal Claims judges, United States magistrates, judges of the United States Court of Appeals for the Armed Forces, members of the Supreme Court Police, nuclear materials couriers and other employees, respectively;

“(ii) in the case of elected officials, from an appropriation or fund available for payment of other salaries of the same office or establishment; and

“(iii) in the case of employees of the legislative branch paid by the Clerk of the House of Representatives, from the contingent fund of the House of Representatives.

“(E) In the case of the United States Postal Service, the Metropolitan Washington Airports Authority, and the government of the District of Columbia, an amount equal to that withheld under subparagraph (A) shall be contributed from the appropriation or fund used to pay the employee.”;

(B) in subsection (k)—

(i) in paragraph (1)—

(I) in subparagraph (A) by striking “the first sentence of subsection (a)(1) of this section” and inserting “subsection (a)(1)(A)”; and

(II) by amending subparagraph (B) to read as follows:

“(B) the amount of the contribution under subsection (a)(1)(B) shall be the amount contributed under such subsection if this subsection had not been enacted.”

(ii) in paragraph (2)(C)(iii) by striking “the first sentence of subsection (a)(1)” and inserting “subsection (a)(1)(A)”; and

(3) in section 8348—

(A) by repealing subsection (f);

(B) by amending subsection (g) to read as follows:

“(g)(1)(A) Not later than June 30, 2011, the Office of the Actuary shall determine the unfunded liability of the Fund, as of September 30, 2010, attributable to benefits payable under this chapter and make recommendations regarding its liquidation. After considering such recommendations, the Office shall establish an amortization schedule, including a series of annual installments commencing October 1, 2011, which provides for the liquidation of such liability by October 1, 2049.

“(B) The Office shall redetermine the unfunded liability of the Fund as of the close of the fiscal year, for each fiscal year beginning after September 30, 2010, through the fiscal year ending September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability by October 1, 2049.

“(C) The Office shall redetermine the unfunded liability of the Fund as of the close of the fiscal year for each fiscal year beginning after September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability over five years.

“(D) Amortization schedules established under this paragraph shall be set in accordance with generally accepted actuarial practices and principles, with interest computed at the rate used in the most recent valuation of the Civil Service Retirement System.

“(2) At the beginning of each fiscal year, beginning on October 1, 2011, the Office shall notify the Secretary of the Treasury of the amount of the first installment under the most recent amortization schedule established under paragraph (1). The Secretary shall credit that amount to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated.

“(3) For the purpose of carrying out paragraph (1) with respect to any fiscal year, the Office may—

“(A) require the Board of Actuaries of the Civil Service Retirement System to make actuarial determinations and valuations, make recommendations, and maintain records in accordance with section 8347(f); and

“(B) use the latest actuarial determinations and valuations made by such Board of Actuaries.”;

(C) in subsections (h), (i), and (m) by striking “unfunded” and inserting “accrued” each place it appears; and

(D) by adding at the end the following new subsection:

“(n) Under regulations prescribed by the Office, the head of an agency may request reconsideration of any amount determined to be payable with respect to such agency under section 8334(a)(1)(B)–(D). Any such request shall be referred to the Board of Actuaries of the Civil Service Retirement System. The Board of Actuaries shall review the computations of the Office and may make any adjustment with respect to any such amount which the Board determines appropriate. A determination by the Board of Actuaries under this subsection shall be final.”.

(b) Government Contributions.—Section 8423 of title 5, United States Code, is amended—

(1) in subsection (a)(2) by striking “section 8422” and inserting “section 8422(a)”; and

(2) in subsection (b)(2) by striking “equal annual installments” and inserting “annual installments set in accordance with generally accepted actuarial practices and principles”.

SEC. 502. Central Intelligence Agency Retirement and Disability System.

(a) Section 101 of the Central Intelligence Agency Retirement Act (50 U.S.C. 2001) is amended—

(1) in paragraph (5), to read as follows:

“(5) UNFUNDED LIABILITY.—The term ‘unfunded liability’ means the estimated excess of—

“(A) the actuarial present value of all future benefits payable from the Fund under title II of this Act based on the service of current or former participants, over

“(B) the sum of—

“(i) the actuarial present value of deductions to be withheld from the future basic pay of participants currently subject to title II of this Act pursuant to section 211;

“(ii) the actuarial present value of the future contributions to be made pursuant to section 211 with respect to participants currently subject to title II of this Act;

“(iii) the Fund balance, as defined in paragraph (4), as of the date the unfunded liability is determined; and

“(iv) any other appropriate amount, as determined by the Director in accordance with generally accepted actuarial practices and principles.”;

(2) in paragraph (6)—

(A) by striking “ ‘normal cost’” and inserting “ ‘normal cost percentage’”; and

(B) by inserting “and standards (using dynamic assumptions)” after “practice”; and

(3) by adding at the end the following paragraph:

“(10) DYNAMIC ASSUMPTIONS.—The term ‘dynamic assumptions’ means economic assumptions that are used in determining actuarial costs and liabilities of a retirement system and in anticipating the effects of long-term future—

“(A) investment yields;

“(B) increases in rates of basic pay; and

“(C) rates of price inflation.”.

(b) Section 202 of such Act (50 U.S.C. 2012) is amended by adding at the end the following: “The Fund is appropriated for the payment of benefits as provided by this title.”.

(c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is amended to read as follows:

“(2) AGENCY CONTRIBUTIONS.—The Agency shall contribute to the Fund the amount computed in a manner similar to that used under section 8334(a) of title 5, United States Code, pursuant to determinations of the normal cost percentage of the Central Intelligence Agency Retirement and Disability System by the Director. Contributions under this paragraph shall be paid from amounts available for salaries and expenses.”.

(d) Section 261 of such Act (50 U.S.C. 2091) is amended—

(1) by striking subsections (c), (d), and (e); and

(2) by inserting after subsection (b) the following new subsections:

“(c)(1) Not later than June 30, 2011, the Director shall cause to be made actuarial valuations of the Fund that determine the unfunded liability of the Fund, as of September 30, 2010, attributable to benefits payable under this title and make recommendations regarding its liquidation. After considering such recommendations, the Director shall establish an amortization schedule, including a series of annual installments commencing October 1, 2011, which provides for the liquidation of such liability by October 1, 2049.

“(2) The Director shall redetermine the unfunded liability of the Fund as of the close of the fiscal year, for each fiscal year beginning after September 30, 2010, through the fiscal year ending September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability by October 1, 2049.

“(3) The Director shall redetermine the unfunded liability of the Fund as of the close of the fiscal year for each fiscal year beginning after September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability over five years.

“(4) Amortization schedules established under this subsection shall be set in accordance with generally accepted actuarial practices and principles, with interest computed at the rate used in the most recent valuation of the Civil Service Retirement and Disability System.

“(d) At the beginning of each fiscal year, beginning on October 1, 2011, the Director shall notify the Secretary of the Treasury of the amount of the first installment under the most recent amortization schedule established under subsection (c). The Secretary shall credit that amount to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated. For the purposes of section 504 of the National Security Act of 1947, this amount shall be considered authorized.”.

(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is amended by adding at the end the following new section:

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

“(a) In addition to other government contributions required by law, the Agency shall contribute to the Civil Service Retirement and Disability Fund (hereinafter in this section referred to as the ‘Fund’) amounts calculated in accordance with section 8423 of title 5, United States Code, based on the projected number of employees to be designated pursuant to section 302 of this Act. In addition, the Agency, in a manner similar to that established for employee contributions to the Fund by section 8422 of title 5, United States Code, will contribute an amount equal to the difference between that contributed by the number of employees projected to be designated under section 302 and the amounts that are actually being deducted and contributed from the basic pay of an equal number of employees pursuant to section 8422. The amounts of the Agency’s contributions under this subsection shall be determined by the Director of the Office of Personnel Management, in consultation with the Director, and shall be paid by the Agency from funds available for salaries and expenses. Agency employees designated pursuant to section 302 of this Act shall, commencing with such designation, have deducted from their basic pay the full amount required by section 8422 of title 5, United States Code, and such deductions shall be contributed to the Fund.

“(b)(1) The Director of the Office of Personnel Management, in consultation with the Director, shall determine the total amount of unpaid contributions (government and employee contributions) and interest attributable to the number of individuals employed with the Agency on September 30, 2011, who are projected to be designated under section 302 of this Act, but are not yet designated under that section as of that date. The amount shall be referred to as the section 302 unfunded liability.

“(2) Not later than June 30, 2012, the Director of the Office of Personnel Management, in consultation with the Director, shall establish an amortization schedule, setting forth a series of annual installments commencing September 30, 2012, which provides for the liquidation of the section 302 unfunded liability by September 30, 2019.

“(3) At the end of each fiscal year, beginning on September 30, 2012, the Director shall notify the Secretary of the Treasury of the amount of the annual installment under the amortization schedule established under paragraph (2) of this subsection. Before closing the accounts for that fiscal year, the Secretary shall credit that amount to the Fund, out of any money in the Treasury of the United States not otherwise appropriated.

“(c) Amounts paid by the Agency pursuant to this section are deemed to be specifically authorized by the Congress for the purposes of section 504 of the National Security Act of 1947.”.

(2) The table of contents of such Act is amended by inserting after the item relating to section 307 the following new item:


“Sec. 308. Full funding of retiree costs for employees designated under section 302.”.

SEC. 503. Foreign Service Retirement and Disability System.

(a) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended in section 804 (22 U.S.C. 4044)—

(1) by amending paragraph (5) to read as follows:

“(5) ‘normal cost percentage’ means the entry-age normal cost computed in accordance with generally accepted actuarial practice and standards (using dynamic assumptions) and expressed as a level percentage of aggregate basic pay.”;

(2) by amending paragraph (14) to read as follows:

“(14) ‘unfunded liability’ means the estimated excess of—

“(A) the actuarial present value of all future benefits payable from the Fund under this part based on the service of current or former participants, over

“(B) the sum of—

“(i) the actuarial present value of deductions to be withheld from the future basic pay of participants currently subject to this part pursuant to section 805;

“(ii) the actuarial present value of the future contributions to be made pursuant to section 805 with respect to participants currently subject to this part;

“(iii) the Fund balance, as defined in paragraph (7), as of the date the unfunded liability is determined, excluding any amount attributable to the Foreign Service Pension System, or contributions made under the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 by or on behalf of any individual who became subject to the Foreign Service Pension System; and

“(iv) any other appropriate amount, as determined by the Secretary of the Treasury in accordance with generally accepted actuarial practices and principles.”

(3)(A) by striking the period at the end of paragraph (15) and inserting “; and”; and

(B) by adding at the end the following new paragraph:

“(16) ‘dynamic assumptions’ means economic assumptions that are used in determining actuarial costs and liabilities of a retirement system and in anticipating the effects of long-term future—

“(A) investment yields;

“(B) increases in rates of basic pay; and

“(C) rates of price inflation.”.

(b) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended in section 852 (22 U.S.C. 4071a)—

(1) in paragraph (4)—

(A) by striking “normal cost” and inserting “normal cost percentage”; and

(B) by striking “by the Secretary of State”;

(2) in paragraph (7)—

(A) by striking “supplemental” and inserting “unfunded”;

(B) in subparagraph (B)(i) by striking “(I)” and “and (II) contributions for past civilian and military service”; and

(C) in subparagraph (B)(ii) by inserting before the semicolon “with respect to participants currently subject to this part”; and

(3)(A) at the end of paragraph (8) by striking “and”;

(B) at the end of paragraph (9) by striking the period and inserting “; and”; and

(C) by adding at the end the following new paragraph:

“(10) ‘dynamic assumptions’ means economic assumptions that are used in determining actuarial costs and liabilities of a retirement system and in anticipating the effects of long-term future—

“(A) investment yields;

“(B) increases in rates of basic pay; and

“(C) rates of price inflation.”.

(c) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended in section 805(a)(1) (22 U.S.C. 4045(a))—

(1) by striking the second sentence;

(2) (by redesignating that subsection, as so amended, as (a)(1)(A);

(3) by redesignating the last sentence of that subsection, as so amended as (a)(1)(C);

(4) by inserting after subparagraph (A) the following new subparagraph:

“(B) Each employing agency having participants shall contribute to the Fund the amount computed in a manner similar to that used under section 8334(a) of title 5, United States Code, pursuant to determinations of the normal cost percentage of the Foreign Service Retirement and Disability System. Contributions under this subparagraph shall be paid from the appropriations or fund used for payment of the salary of the participant.”;

(5) in subsection (a)(2)(A) by striking “An equal amount shall be contributed by the Department” and inserting in its place “Each employing agency having participants shall contribute to the Fund the amount computed in a manner similar to that used under section 8334(a) of title 5, United States Code, pursuant to determinations of the normal cost percentage of the Foreign Service Retirement and Disability System”; and

(6) in subsection (a)(2)(B) by striking “An equal amount shall be contributed by the Department” and inserting in its place “Each employing agency having participants shall contribute to the Fund from amounts available for salaries and expenses the amount computed in a manner similar to that used under section 8334(a) of title 5, United States Code, pursuant to determinations of the normal cost percentage of the Foreign Service Retirement and Disability System”.

(d) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended by repealing sections 821 and 822 (22 U.S.C. 4061 and 4062) and by adding the following new section:

§ 821. Unfunded liability

“(a)(1) Not later than June 30, 2011, the Secretary of State shall cause to be made actuarial valuations of the Fund that determine the unfunded liability of the Fund, as of September 30, 2010, attributable to benefits payable under this subchapter and make recommendations regarding its liquidation. After considering such recommendations, the Secretary of State shall establish an amortization schedule, including a series of annual installments commencing October 1, 2010, which provides for the liquidation of such liability by October 1, 2049.

“(2) The Secretary of State shall redetermine the unfunded liability of the Fund as of the close of the fiscal year, for each fiscal year beginning after September 30, 2010, through the fiscal year ending September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability by October 1, 2049.

“(3) The Secretary of State shall redetermine the unfunded liability of the Fund as of the close of the fiscal year for each fiscal year beginning after September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability over five years.

“(4) Amortization schedules established under this subsection shall be set in accordance with generally accepted actuarial practices and principles, with interest computed at the rate used in the most recent valuation of the Foreign Service Retirement and Disability System.

“(b) At the beginning of each fiscal year, beginning on October 1, 2011, the Secretary of State shall notify the Secretary of the Treasury of the amount of the first installment under the most recent amortization schedule established under paragraph (1). The Secretary of the Treasury shall credit that amount to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated.”.

(e) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by striking “equal annual installments” and inserting “annual installments set in accordance with generally accepted actuarial practices and principles”.

(f) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended in section 859 (22 U.S.C. 4071h) by adding “percentage” after “normal cost”.

(g) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended in section 802 (22 U.S.C. 4042) by adding at the end the following: “The Fund is appropriated for the payment of benefits as provided by this subchapter.”.

(h) Chapter 8 of title I of the Foreign Service Act of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further amended in section 818 (22 U.S.C. 4058) by striking “System” and inserting “Systems under this subchapter”.

SEC. 504. Public Health Service Commissioned Corps Retirement System.

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

“Part CPublic Health Service Commissioned Corps Retirement System

Establishment and Purpose of Fund

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

Assets of the Fund

“Sec. 252. There shall be deposited into the Fund the following, which shall constitute the assets of the Fund:

“(1) Amounts paid into the Fund under section 255.

“(2) Any return on investment of the assets of the Fund.

“(3) Amounts transferred into the Fund pursuant to section 504(c) of the Spending, Deficit, and Debt Control Act of 2009.

Payment From the Fund

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

Determination of Contributions to the Fund

“Sec. 254. (a)(1) Not later than June 30, 2011, the Secretary shall determine the unfunded liability of the Fund attributable to service performed as of September 30, 2010, which is ‘active service’ for the purpose of section 212. The Secretary shall establish an amortization schedule, including a series of annual installments commencing October 1, 2011, which provides for the liquidation of such liability by October 1, 2049.

“(2) The Secretary shall redetermine the unfunded liability of the Fund as of the close of the fiscal year, for each fiscal year beginning after September 30, 2010, through the fiscal year ending September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability by October 1, 2049.

“(3) The Secretary shall redetermine the unfunded liability of the Fund as of the close of the fiscal year for each fiscal year beginning after September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability over five years.

“(b) The Secretary shall determine each fiscal year, in sufficient time for inclusion in the budget request for the following fiscal year, the total amount of Department of Health and Human Services contributions to be made to the Fund during the fiscal year under section 255(a). That amount shall be the sum of—

“(1) the product of—

“(A) the current estimate of the value of the single level percentage of basic pay to be determined under subsection (c)(1) at the time of the most recent actuarial valuation under subsection (c); and

“(B) the total amount of basic pay expected to be paid during that fiscal year to commissioned officers of the Public Health Service on active duty (other than active duty for training); and

“(2) the product of—

“(A) the current estimate of the value of the single level percentage of basic pay and of compensation (paid pursuant to section 206 of title 37, United States Code) to be determined under subsection (c)(2) at the time of the most recent actuarial valuation under subsection (c); and

“(B) the total amount of basic pay and of compensation (paid pursuant to section 206 of title 37, United States Code) expected to be paid during the fiscal year to commissioned officers of the Reserve Corps of the Public Health Service (other than officers on full-time duty other than for training) who are not otherwise described in subparagraph (A).

“(c) Not less often than every four years thereafter (or by the fiscal year end prior to the effective date of any statutory change affecting benefits payable on account of retirement, disability, or death to commissioned officers or their survivors), the Secretary shall carry out an actuarial valuation of benefits payable on account of retirement, disability, or death to commissioned officers of the Public Health Service and to their survivors pursuant to part A of this title. Each such actuarial valuation shall be signed by an enrolled Actuary and shall include—

“(1) a determination (using the aggregate entry-age normal cost method) of a single level percentage of basic pay for commissioned officers of the Public Health Service on active duty (other than active duty for training); and

“(2) a determination (using the aggregate entry-age normal cost method) of a single level percentage of basic pay and of compensation (paid pursuant to section 206 of title 37, United States Code) of commissioned officers of the Reserve Corps of the Public Health Service (other than officers on full time duty other than for training) who are not otherwise described in paragraph (1).

“(d) All determinations under this section shall be in accordance with generally accepted actuarial principles and practices and, where appropriate, shall follow the general pattern of methods and assumptions approved by the Department of Defense Retirement Board of Actuaries.

“(e) The Secretary shall provide for the keeping of such records as are necessary for determining the actuarial status of the Fund.

Payments into the Fund

“Sec. 255. (a) From amounts available to the Department of Health and Human Services for salaries and expenses, the Secretary shall pay into the Fund at the end of each month the amount that is the sum of—

“(1) the product of—

“(A) the level percentage of basic pay determined using all the methods and assumptions approved for the most recent (as of the first day of the current fiscal year) actuarial valuation under sections 254(C)(1) (except that any statutory change affecting benefits payable on account of retirement, disability, or death to commissioned officers or their survivors that is effective after the date of that valuation and on or before the first day of the current fiscal year shall be used in such determination); and

“(B) the total amount of basic pay accrued for that month by commissioned officers of the Public Health Service on active duty (other than active duty for training); and

“(2) the product of—

“(A) the level percentage of basic pay and of compensation (paid pursuant to section 206 of title 37, United States Code) determined using all the methods and assumptions approved for the most recent (as of the first day of the current fiscal year) actuarial valuation under section 254(C)(2) (except that any statutory change affecting benefits payable on account of retirement, disability, or death to commissioned officers or their survivors that is effective after the date of that valuation and on or before the first day of the current fiscal year shall be used in such determinations); and

“(B) the total amount of basic pay and of compensation (paid pursuant to section 206 of title 37, United States Code) accrued for that month by commissioned officers of the Reserve Corps of the Public Health Service (other than officers on full-time duty other than for training).

“(b) At the beginning of each fiscal year, beginning on October 1, 2011, the Secretary shall certify to the Secretary of the Treasury the amount of the first installment under the most recent amortization schedule established under section 254(a). The Secretary of the Treasury shall pay into the Fund from the General Fund of the Treasury the amount so certified. Such payment shall be the contribution to the Fund for that fiscal year.

Investments of Assets of Fund

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

Implementation Year Exceptions

“Sec. 257. (a) To avoid funding shortfalls in the first year should formal actuarial determinations not be available in time for budget preparation, the amounts used in the first year in sections 255(a)(1)(A) and 255(a)(2)(A) shall be set equal to those estimates in sections 254(b)(1)(A) and 254(b)(2)(A) if final determinations are not available. The original unfunded liability as defined in section 254(a) shall include an adjustment to correct for this difference between the formal actuarial determinations and the estimates in sections 254(b)(1)(A) and 254(b)(2)(A).”.

(b) Conforming Amendments.—Section 214 of the Public Health Service Act (42 U.S.C. 215) is amended by adding at the end the following new subsection:

“(e) The Secretary shall condition any detail under subsection (a), (b), or (c) upon the agreement of the executive department, State, subdivision, Committee of the Congress, or institution concerned to pay to the Department of Health and Human Services, in advance or by way of reimbursement, for the full cost of the detail including that portion of the contributions under section 255(a) that is attributable to the detailed personnel.”.

(c) Transfer of Appropriations.—There shall be transferred on October 1, 2012, into the fund established under section 251 of the Public Health Service Act, as added by subsection (a), any obligated or unobligated balances of appropriations made to the Department of Health and Human Services that are currently available for benefits payable on account of retirement, disability, or death to commissioned officers of the Public Health Service and to their survivors pursuant to part A of title II of the Public Health Service Act, and amounts so transferred shall be part of the assets of the Fund.

SEC. 505. National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement System.

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

“SEC. 246A National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement System.

“(a) Establishment and Purpose of NOAA Commissioned Officer Corps Retirement Fund.—

“(1) There is established on the books of the Treasury a fund to be known as the National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement Fund (hereinafter in this section referred to as the ‘Fund’), which shall be administered by the Secretary. The Fund shall be used for the accumulation of funds in order to finance on an actuarially sound basis liabilities of the Department of Commerce under military retirement and survivor benefit programs for the commissioned officers corps.

“(2) The term ‘military retirement and survivor benefit program’ means—

“(A) the provisions of this title and title 10, United States Code, creating entitlement to, or determining, the amount of retired pay;

“(B) the programs under the jurisdiction of the Department of Defense providing annuities for survivors and members and former members of the Armed Forces, including chapter 73 of title 10, section 4 of Public Law 92–425, and section 5 of Public Law 96–202, as made applicable to the commissioned officer corps by section 261.

“(b) Assets of the Fund.—There shall be deposited into the Fund the following, which shall constitute the assets of the Fund:

“(1) Amounts paid into the Fund under subsection (e).

“(2) Any return on investment of the assets of the Fund.

“(3) Amounts transferred into the Fund pursuant to section 405(b) of the Spending, Deficit, and Debt Control Act of 2009.

“(c) Payments From the Fund.—There shall be paid from the Fund benefits payable on account of military retirement and survivor benefit programs to commissioned officers of the commissioned officer corps and their survivors.

“(d) Determination of Contributions to the Fund.—(1)(A) Not later than June 30, 2010, the Secretary shall determine the unfunded liability of the Fund attributable to service performed as of September 30, 2010, which is ‘active service’ for the purpose of this title. The Secretary shall establish an amortization schedule, including a series of annual installments commencing October 1, 2011, which provides for the liquidation of such liability by October 1, 2049.

“(B) The Secretary shall redetermine the unfunded liability of the Fund as of the close of the fiscal year, for each fiscal year beginning after September 30, 2010, through the fiscal year ending September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for the liquidation of such liability by October 1, 2049.

“(C) The Secretary shall redetermine the unfunded liability of the Fund as of the close of the fiscal year for each fiscal year beginning after September 30, 2044, and shall establish a new authorization schedule, including series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability over five years.

“(2) The Secretary shall determine each fiscal year, in sufficient time for inclusion in the budget request for the following fiscal year, the total amount of Department of Commerce contributions to be made to the Fund during that fiscal year under (e). The amount shall be the product of—

“(A) the current estimate of the value of the single level percentage of basic pay to be determined under subsection (e) at the time of the most recent actuarial valuation under paragraph (3); and

“(B) the total amount of basic pay expected to be paid during that fiscal year to commissioned officers of NOAA on active duty.

“(3) Not less often then every four years (or by the fiscal year end before the effective date of any statutory change affecting benefits payable on account of retirement, disability, or death to commissioned officers or their survivors), the Secretary shall carry out an actuarial valuation of benefits payable on account of military retirement and survivor benefit programs to commissioned officers of the Administration and to their survivors. Each such actuarial valuation shall be signed by an enrolled Actuary and shall include a determination (using the aggregate entry-age normal cost method) of a single level percentage of basic pay for commissioned officers on active duty.

“(4) All determinations under this section shall be in accordance with generally accepted actuarial principles and practices, and, where appropriate, shall follow the general pattern of methods and assumptions approved by the Department of Defense Retirement Board of Actuaries.

“(5) The Secretary shall provide for the keeping of such records as are necessary for determining the actuarial status of the Fund.

“(e) Payments Into the Fund.—(1) From amounts appropriated to the National Oceanic Atmospheric Administration for salaries and expenses, the Secretary shall pay into the Fund at the end of each month the amount that is the product of—

“(A) the level percentage of basic pay determined using all the methods and assumptions approved for the most recent (as of the first day of the current fiscal year) actuarial valuation under subsection (d) (except that any statutory change affecting benefits payable on account of military retirement and survivor benefit programs to commissioned officers of the Administration and to their survivors that is effective date after the date of that valuation and on or before the first day of the current fiscal year shall be used in such determination); and

“(B) the total amount of basic pay accrued for that month by commissioned officers on active duty.

“(2)(A) At the beginning of each fiscal year, the Secretary shall determine the sum of—

“(i) the amount of the payment for that year under the amortization of the original unfunded liability of the Fund;

“(ii) the amount (including any negative amount) for that year under the most recent amortization schedule determined by the Secretary for the amortization of any cumulative actuarial gain or loss to the Fund, resulting from changes in benefits; and

“(iii) the amount (including any negative amount) for that year under the most recent amortization schedule determined by the Secretary for the amortization or any cumulative actuarial gain or loss to the Fund resulting from changes in actuarial assumptions and from experience different from the assumed since the last valuation.

The Secretary shall promptly certify the amount of the sum to the Secretary of the Treasury.

“(B) Upon receiving the certification pursuant to paragraph (1), the Secretary of the Treasury shall promptly pay into the Fund from the General Fund of the Treasury the amount so certified. Such payment shall be the contribution to the Fund for that fiscal year.

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

“(g) Implementation Year Exceptions.—(1) To avoid funding shortfalls in the first year should formal actuarial determinations not be available in time for budget preparation, the amounts used in the first year in subsection (e)(1)(A) shall be set equal to the estimate in subsection (d)(2)(A) if final determinations are not available. The original unfunded liability as determined in subsection (d)(1) shall include an adjustment to correct for this difference between the formal actuarial determinations and the estimates in subsection (d)(2)(A).”.

(b) Transfer of Appropriations.—There shall be transferred on October 1, 2012, into the fund established under section 246A(a) of the National Oceanic and Atmospheric Administration Commissioned Officer Corps Act of 2002 (title II of Public Law 107–372, as added by subsection (a)), any obligated and unobligated balance of appropriations made to the Department of Commerce that are available as of the date of the enactment of this Act for benefits payable on account of military retirement and survivor benefit programs to commissioned officers of the NOAA Commissioned Officer Corps and to their survivors, and amounts so transferred shall be part of the assets of the Fund, effective October 1, 2012.

(c) Effective Date.—Subsection (c) (relating to payments from the Fund) and (e) (relating to payments into the Fund) of section 246A of the National Oceanic and Atmospheric Administration Commissioned Officer Corps Act of 2002 (title II of Public Law 107–372, as added by subsection (a)), shall take effect on October 1, 2010.

SEC. 506. Coast Guard Military Retirement System.

(a) Accrual Funding for Coast Guard Retirement.—

(1) IN GENERAL.—Chapter 11 of title 14, United States Code, is amended by adding at the end the following new subchapter:

“SUBCHAPTER VCOAST GUARD MILITARY RETIREMENT FUND

§ 441. Establishment and purpose of Fund; definitions

“(a) Establishment of Fund; Purpose.—There is established on the books of the Treasury a fund to be known as the Coast Guard Military Retirement Fund (hereinafter in this subchapter referred to as the ‘Fund’), which shall be administered by the Secretary. The Fund shall be used for the accumulations of funds in order to finance on an actuarially sound basis liabilities of the Coast Guard under military retirement and survivor benefit programs.

“(b) Military Retirement and Survivor Benefit Programs Defined.—In this subchapter, the term ‘military retirement and survivor benefit programs’ means—

“(1) the provisions of this title and title 10 creating entitlement to, or determining the amount of, retired pay;

“(2) the programs providing annuities for survivors of members and former members of the armed forces, including chapter 73 of title 10, section 4 of Public Law 92–425, and section 5 of Public Law 96–402; and

“(3) the authority provided in section 1048(h) of title 10.

“(c) Secretary Defined.—In this subchapter, the term ‘Secretary’ means the Secretary of Homeland Security when the Coast Guard is not operating as a service in the Navy and the Secretary of Defense when the Coast Guard is operating as a service in the Navy.

§ 442. Assets of the Fund

“There shall be deposited into the Fund the following, which shall constitute the assets of the Fund:

“(1) Amounts paid into the Fund under section 445 of this title.

“(2) Any return on investment of the assets of the Fund.

“(3) Amounts transferred into the Fund pursuant to section 406(d) of the Spending, Deficit, and Debt Control Act of 2009.

§ 443. Payments from the Fund

“(a) In General.—There shall be paid from the Fund the following:

“(1) Retired pay payable to persons on the retired list of the Coast Guard.

“(2) Retired pay payable under chapter 1223 of title 10 to former members of the Coast Guard and the former United States Lighthouse Service.

“(3) Benefits payable under programs that provide annuities for survivors of members and former members of the armed forces, including chapter 73 of title 10, section 4 of Public Law 92–425, and section 5 of Public Law 96–402.

“(4) Amounts payable under section 1048(h) of title 10.

“(b) Availability of Assets of the Fund.—The assets of the Fund are hereby made available for payments under subsection (a).

§ 444. Determination of contributions to the Fund

“(a) Initial Unfunded Liability.—(1) Not later than June 30, 2011, the Secretary shall determine the unfunded liability of the Fund attributable to service performed as of September 30, 2010, which is ‘active service’ for the purposes of section 212. The Secretary shall establish an amortization schedule, including a series of annual installments commencing October 1, 2011, which provides for the liquidation of such liability by October 1, 2049.

“(2) The Secretary shall redetermine the unfunded liability of the Fund as of the close of the fiscal year, for each beginning after September 30, 2010, through the fiscal year ending September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability by October 1, 2049.

“(3) The Secretary shall redetermine the unfunded liability of the Fund as of the close of the fiscal year for each fiscal year beginning after September 30, 2044, and shall establish a new amortization schedule, including a series of annual installments commencing on October 1 of the second subsequent fiscal year, which provides for the liquidation of such liability over five years.

“(b) Annual Contributions for Current Services.—(1) The Secretary shall determine each fiscal year, in sufficient time for inclusion in the budget request for the following fiscal year, the total amount of Department of Homeland Security, or Department of Defense, contributions to be made to the Fund during that fiscal year under section 445(a) of this title. That amount shall be the sum of the following:

“(A) The product of—

“(i) the current estimate of the value of the single level percentage of basic pay to be determined under subsection (c)(1)(A) at the time of the most recent actuarial valuation under subsection (c); and

“(ii) the total amount of basic pay expected to be paid during that fiscal year to members of the Coast Guard on active duty (other than active duty for training).

“(B) The product of—

“(i) the current estimate of the value of the single level percentage of basic pay and of compensation (paid pursuant to section 206 of title 37) to be determined under subsection (c)(1)(B) at the time of the most recent actuarial valuation under subsection (c); and

“(ii) the total amount of basic pay and compensation (paid pursuant to section 206 of title 37) expected to be paid during that fiscal year to members of the Coast Guard Ready Reserve (other than members on full-time Reserve duty other than for training) who are not otherwise described in subparagraph (A)(ii).

“(2) The amount determined under paragraph (1) for any fiscal year is the amount needed to be appropriated to the Department of Homeland Security for that fiscal year for payments to be made to the Fund during that year under section 445(a) of this title. The President shall include not less than the full amount so determined in the budget transmitted to Congress for that fiscal year under section 1105 of title 31. The President may comment and make recommendations concerning any such amount.

“(c) Periodic Actuarial Valuations.—(1) Not less often than every four years (or before the effective date of any statutory change affecting benefits payable on account of retirement, disability, or death to members of the Coast Guard or their survivors), the Secretary shall carry out an actuarial valuation of the Coast Guard military retirement and survivor benefit programs. Each actuarial valuation of such programs shall be signed by an enrolled actuary and shall include—

“(A) a determination (using the aggregate entry-age normal cost method) of a single level percentage of basic pay for members of the Coast Guard on active duty (other than active duty for training); and

“(B) a determination (using the aggregate entry-age normal cost method) of single level percentage of basic pay and of compensation (paid pursuant to section 206 of title 37) for members of the Ready Reserve of the Coast Guard (other than members on full-time Reserve duty other than for training) who are not otherwise described in subparagraph (A).

“(2) Such single level percentages shall be used for the purposes of subsection (b) and section 445(a) of this title.

“(d) Use of Generally Accepted Actuarial Principles and Practices.—All determinations under this section shall be in accordance with generally accepted actuarial principles and practices and, where appropriate, shall follow the general pattern of methods and assumptions approved by the Department of Defense Retirement Board of Actuaries.

“(e) Records.—The Secretary shall provide for the keeping of such records as are necessary for determining the actuarial status of the Fund.

§ 445. Payments into the Fund

“(a) Monthly Accrual Charge for Current Services.—From amounts appropriated to the Coast Guard for salaries and expenses, the Secretary shall pay into the Fund at the end of each month as the Department of Homeland Security, or Department of Defense, contribution to the Fund for that month the amount that is the sum of the following:

“(1) The product of—

“(A) the level percentage of basic pay determined using all the methods and assumptions approved for the most recent (as of the first day of the current fiscal year) actuarial valuation under section 444(c)(1)(A) of this title (except that any statutory change in the military retirement and survivor benefit systems that is effective after the date of that valuation and on or before the first day of the current fiscal year shall be used in such determination); and

“(B) the total amount of basic pay accrued for that month by members of the Coast Guard on active duty (other than active duty for training).

“(2) The product of—

“(A) the level percentage of basic pay and compensation (accrued pursuant to section 206 of title 37) determined using all the methods and assumptions approved for the most recent (as of the first day of the current fiscal year) actuarial valuation under section 444(c)(1)(B) of this title (except that any statutory change in the military retirement and survivor benefit systems that is effective after the date of that valuation and on or before the first day of the current fiscal year shall be used in such determination); and

“(B) the total amount of basic pay and of compensation (paid pursuant to section 206 of title 37) accrued for that month by members of the Ready Reserve (other than members of full-time Reserve duty other than for training) who are not otherwise described in paragraph (1)(B).

“(b) Annual Payment for Unfunded Liabilities.—(1) At the beginning of each fiscal year, beginning on October 1, 2011, the Secretary shall certify to the Secretary of the Treasury the amount of the first installment under the most recent amortization schedule established under section 254(a). The Secretary of the Treasury shall promptly pay into the Fund from the General Fund of the Treasury the amount so certified. Such payment shall be the contribution to the Fund for that fiscal year.

§ 446. Investment of assets of the Fund

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

(2) TECHNICAL AMENDMENTS.—Such chapter is further amended—

(A) by amending the center heading after the table of sections to read as follows:

“SUBCHAPTER IOFFICERS

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

“SUBCHAPTER IIENLISTED MEMBERS

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

“SUBCHAPTER IIIGENERAL PROVISIONS

and

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

“SUBCHAPTER IVSPECIAL PROVISIONS

(3) CLERICAL AMENDMENTS.—The table of sections at the beginning of such chapter is amended—

(A) by striking “officers” at the beginning of the table and inserting “subchapter I—officers”;

(B) by striking “enlisted members” after the item relating to section 336 and inserting “subchapter ii—enlisted members”;

(C) by striking “general provisions” after the item relating to section 373 and inserting “subchapter iii—general provisions”;

(D) by striking “special provisions” after the item relating to section 425 and inserting “subchapter iv—special provisions”; and

(E) by adding at the end the following:

“SUBCHAPTER V—COAST GUARD MILITARY RETIREMENT FUND”.

“441. Establishment and purpose of Fund; definitions.

“442. Assets of the Fund.

“443. Payments from the Fund.

“444. Determination of contributions to the Fund.

“445. Payments into the Fund.

“446. Investment of assets of the Fund.”.

(b) Implementation Year Exceptions.—To avoid funding shortfalls in the first year of implementation of subchapter V of chapter 11 of title 14, United States Code, as added by subsection (a), if formal actuarial determinations are not available in time for budget preparation, the amounts used in the first year under sections 445(a)(1)(A) and 445(a)(2)(A) of such title shall be set equal to those estimates in sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively, of such title if final determinations are not available. The original unfunded liability, as defined in section 444(a) of such title, shall include an adjustment to correct for this difference between the formal actuarial determinations and the estimates in sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title.

(c) Transfer of Existing Balances.—

(1) TRANSFER.—There shall be transferred into the Fund on October 1, 2011, any obligated and unobligated balances of appropriations made to the Department of Homeland Security that are currently available for retired pay, and amounts so transferred shall be part of the assets of the Fund.

(2) FUND DEFINED.—For purposes of paragraph (1), the term “Fund” means the Coast Guard Military Retirement Fund established under section 441 of title 14, United States Code, as added by subsection (a).

(d) Effective Date.—Sections 443 (relating to payments from the Fund) and 445 (relating to payments into the Fund) of title 14, United States Code, as added by subsection (a), shall take effect on October 1, 2011.

SEC. 511. Federal Employees Health Benefits Fund.

(a) Section 8906 of title 5, United States Code, is amended—

(1) by redesignating subsection (c) as subsection (c)(1) and by adding at the end the following new paragraphs:

“(2) In addition to Government contributions required by subsection (b) and paragraph (1), each employing agency shall contribute amounts as determined by the Office to be necessary to prefund the accruing actuarial cost of post-retirement health benefits for each of the agency’s current employees who are eligible for Government contributions under this section. Amounts under this paragraph shall be paid by the employing agency separate from other contributions under this section, from the appropriations or fund used for payment of the salary of the employee, on a schedule to be determined by the Office.

“(3) Paragraph (2) shall not apply to the United States Postal Service or the Government of the District of Columbia.”

(2) by amending subsection (g)(1) to read as follows:

“(g)(1) Except as provided in paragraphs (2) and (3), all Government contributions authorized by this section for health benefits for an annuitant shall be paid from the Employees Health Benefits Fund to the extent that funds are available in accordance with section 8909(h)(6) and, if necessary, from annual appropriations which are authorized to be made for that purpose and which may be made available until expended.”.

(b) Section 8909 of title 5, United States Code, is amended by adding at the end the following new subsection:

“(h)(1) Not later than June 30, 2012, the Office shall determine the existing liability of the Fund for post-retirement health benefits, excluding the liability of the United States Postal Service for service under section 8906(g)(2), under this chapter as of September 30, 2012. The Office shall establish an amortization schedule, including a series of annual installments commencing September 30, 2012, which provides for the liquidation of such liability by September 30, 2048.

“(2) At the close of each fiscal year, for fiscal years beginning after September 30, 2011, the Office shall determine the supplemental liability of the Fund for post-retirement health benefits, excluding the liability attributable to the United States Postal Service for service subject to section 8906(g)(2), and shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for liquidation of such supplemental liability over 30 years.

“(3) Amortization schedules established under this paragraph shall be set in accordance with generally accepted actuarial practices and principles.

“(4) At the end of each fiscal year on and after September 30, 2012, the Office shall notify the Secretary of the Treasury of the amounts of the next installments under the most recent amortization schedules established under paragraphs (1) and (2). Before closing the accounts for the fiscal year, the Secretary shall credit the sum of these amounts (including in that sum any negative amount for the amortization of the supplemental liability) to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated.

“(5) For the purpose of carrying out paragraphs (1) and (2), the Office shall perform or arrange for actuarial determinations and valuations and shall prescribe retention of such records as it considers necessary for making periodic actuarial valuations of the Fund.

“(6) Notwithstanding subsection (b), the amounts deposited into the Fund pursuant to this subsection and section 8906(C)(2) to prefund post-retirement health benefits costs shall be segregated within the Fund so that such amounts, as well as earnings and proceeds under subsection (c) attributable to them, may be used exclusively for the purpose of paying Government contributions for post-retirement health benefits costs. When such amounts are used in combination with amounts withheld from annuitants to pay for health benefits, a portion of the contributions shall then be set aside in the Fund as described in subsection (b).

“(7) Under this subsection, ‘supplemental liability’ means—

“(A) the actuarial present value for future post-retirement health benefits that are the liability of the Fund, less

“(B) the sum of—

“(i) the actuarial present value of all future contributions by agencies and annuitants to the Fund toward those benefits pursuant to section 8906;

“(ii) the present value of all scheduled amortization payments to the Fund pursuant to paragraphs (1) and (2);

“(iii) the Fund balance as of the date the supplemental liability is determined, to the extent that such balance is attributable to post-retirement benefits; and

“(iv) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles.”.

SEC. 512. Funding Uniformed Services health benefits for all retirees.

Title 10, United States Code, is amended—

(1) in the title of chapter 56, by striking “DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE” and inserting “UNIFORMED SERVICES”;

(2) in section 1111—

(A) in subsection (a)—

(i) by striking “Department of Defense Medicare-Eligible” and inserting “Uniformed Services”;

(ii) by striking “Department of Defense under”; and

(iii) by striking “for Medicare-eligible beneficiaries”;

(B) in subsection (c)—

(i) by striking “The Secretary of Defense may” and inserting “The Secretary of Defense shall”;

(ii) by striking “with any other” and inserting “with each”;

(iii) by striking “Any such agreement” and inserting “Such agreements”; and

(iv) by striking “administering Secretary may” and inserting “administrative Secretary shall”;

(3) in section 1113—

(A) in subsection (a)—

(i) by striking “and are Medicare eligible”;

(ii) by striking “who are Medicare eligible”; and

(iii) by adding at the end the following new sentence: “For the fiscal year starting October 1, 2010, only, the payments will be solely for the costs of members or former members of a uniformed service who are entitled to retired or retainer pay and are Medicare-eligible, and eligible dependents or survivors who are Medicare-eligible.”;

(B) in subsection (c)(1), by striking “who are Medicare-eligible”;

(C) in subsection (d), by striking “who are Medicare-eligible”; and

(D) in subsection (f), by striking “If” and inserting “When”;

(4) in section 1114, in subsection (a)(1), by striking “Department of Defense Medicare-Eligible” and inserting “Uniformed Services”;

(5) in section 1115—

(A) in subsection (b)(2), by striking “The amount determined under paragraph (1) for any fiscal year is the amount needed to be appropriated to the Department of Defense (or to the other executive department having jurisdiction over the participating uniformed service)” and inserting “The amount determined under paragraph (1), or the amount determined under section 1111(c) for a participating uniformed service, for any fiscal year, is the amount needed to be appropriated to the Department of Defense (or to any other executive department having jurisdiction over a participating uniformed service)”;

(B) in subsection (c)(2), by striking “for Medicare eligible beneficiaries”; and

(C) by adding at the end the following new subsection:

“(f) For the fiscal year starting October 1, 2010, only, the amounts in this section shall be based solely on the costs of Medicare-eligible benefits of beneficiaries and the costs for their eligible dependents or survivors who are Medicare-eligible, and shall be recalculated thereafter to reflect the cost of beneficiaries defined in section 1111.”.

(6) in section 1116—

(A) in subsection (a)(1)(A), by striking “for Medicare-eligible beneficiaries”;

(B) in subsection (a)(2)(A), by striking “for Medicare-eligible beneficiaries”; and

(C) in subsection (c), by striking “subsection (a) shall be paid from funds available for the health care programs” and inserting “subsection (a) and section 1111(c) shall be paid from funds available for the pay of members of the participating uniformed services under the jurisdiction of the respective administering secretaries”.

SEC. 513. Effective date.

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

SEC. 521. Joint Select Committee on Earmark Reform.

(a) Establishment and Composition.—There is hereby established a Joint Select Committee on Earmark Reform (hereinafter referred to as the “joint select committee”). The joint select committee shall be composed of 16 members as follows:

(1) Eight Members of the House of Representatives, 4 appointed from the majority party by the Speaker of the House, and 4 from the minority party by the Speaker upon the recommendation of the minority leader.

(2) Eight Members of the Senate, 4 appointed from the majority party by the majority leader of the Senate, and 4 from the minority party to be appointed by the minority leader.

A vacancy in the joint select committee shall not affect the power of the remaining members to execute the functions of the joint select committee, and shall be filled in the same manner as the original selection.

(b) Study and Report.—

(1) Study.—The joint select committee shall make a full study of the practices of the House, Senate, and Executive Branch regarding earmarks in authorizing, appropriation, tax, and tariff measures. As part of the study, the joint select committee shall consider the efficacy of—

(A) the disclosure requirements of clause 9 of rule XXI and clause 17 of rule XXIII of the Rules of the House of Representatives and rule XLIV of the Standing Rules of the Senate, and the definitions contained therein;

(B) requiring full transparency in the process, with earmarks listed in bills at the outset of the legislative process and continuing throughout consideration;

(C) requiring that earmarks not be placed in any bill after initial committee consideration;

(D) requiring that Members be permitted to offer amendments to remove earmarks at subcommittee, full committee, floor consideration, and during conference committee meetings;

(E) requiring that bill sponsors and majority and minority managers certify the validity of earmarks contained in their bills;

(F) recommending changes to earmark requests made by the Executive Branch through the annual budget submitted to Congress pursuant to section 1105 of title 31, United States Code;

(G) requiring that House and Senate amendments meet earmark disclosure requirements, including amendments adopted pursuant to a special order of business;

(H) establishing new categories for earmarks, including—

(i) projects with National scope;

(ii) military projects; and

(iii) local or provincial projects, including the level of matching funds required for such project.

(2) Report.—

(A) The joint select committee shall submit to the House and the Senate a report of its findings and recommendations not later than 6 months after adoption of this joint resolution.

(B) No recommendation shall be made by the joint select committee except upon the majority vote of the members from each House, respectively.

(C) Notwithstanding any other provision of this resolution, any recommendation with respect to the rules and procedures of one House that only affects matters related solely to that House may only be made and voted on by members of the joint select committee from that House and, upon its adoption by a majority of such members, shall be considered to have been adopted by the full committee as a recommendation of the joint select committee.

In conducting the study under paragraph (1), the joint select committee shall hold not fewer than 5 public hearings.

(c) Resources and Dissolution.—

(1) The joint select committee may utilize the resources of the House and Senate.

(2) The joint select committee shall cease to exist 30 days after the submission of the report described in subsection (a)(2).

(d) Definition.—For purposes of this section, the term “earmark” shall include congressional earmarks, congressionally directed spending items, limited tax benefits, or limited tariff benefits as those terms are used in clause 9 of rule XXI of the Rules of the House of Representatives and rule XLIV of the Standing Rules of the Senate. Nothing in this subsection shall confine the study of the joint select committee or otherwise limit its recommendations.

SEC. 522. Moratorium on Consideration of Earmarks.

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

(b) In the Senate.—[To be supplied.]

SEC. 531. Limit on public debt.

Upon the enactment of a joint resolution setting forth the debt limit consistent with this section, section 3101 of title 31, United States Code, is amended to read as follows, with the blank to be set at the level provided for in such joint resolution:

§ 3101. Public debt limit

“(a) In this section, the current redemption value of an obligation issued on a discount basis and redeemable before maturity at the option of its holder is deemed to be the face amount of the obligation.

“(b) The face amount of obligations issued under this chapter and the face amount of obligations whose principal and interest are guaranteed by the United States Government (except guaranteed obligations held by the Secretary of the Treasury and intragovernmental holdings) may not be more than $________ outstanding at one time, subject to changes periodically made in that amount as provided by law.

“(c) For purposes of this section, the face amount, for any month, of any obligation issued on a discount basis that is not redeemable before maturity at the option of the holder of the obligation is an amount equal to the sum of—

“(1) the original issue price of the obligation, plus

“(2) the portion of the discount on the obligation attributable to periods before the beginning of such month (as determined under the principles of section 1272(a) of the Internal Revenue Code of 1986 without regard to any exceptions contained in paragraph (2) of such section).

“(d) For purposes of this section, the term ‘intragovernment holding’ is any obligation issued by the Secretary of the Treasury to any Federal trust fund or Government account, whether in respect of public money, money otherwise required to be deposited in the Treasury, or amounts appropriated.”.

SEC. 532. Repeal of the Gephardt Rule.

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

SEC. 541. Market Adjusted Rate for Federal Credit Reform Act of 1990.

Amend section 502(5)(E) of the Federal Credit Reform Act of 1990 to read as follows:

“(E) In estimating net present values, the discount rate shall be the average interest rate on marketable Treasury securities of similar maturity to the cash flows of the direct loan or loan guarantee for which the estimate is being made, as adjusted for market risks; and”.

SEC. 542. CBO and GAO study.

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

SEC. 600. Short title.

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

SEC. 601. Points of order in the House of Representatives and the Senate.

Section 904 of the Congressional Budget Act of 1974 is amended as follows:

(1) In subsection (c)(1), insert “312(g), (h), (i), and (j),” before “313,”, and insert “316, 317, 322, 323,” before “904(C),”;

(2) In subsection (d)(2), insert “312(g), (h), (i), and (j),” before “313,”, and insert “316, 317, 322, 323,” before “904(C),”;

(3) In subsections (C)(2) and (d)(3), strike “311(a),”;

(4) “In subsections (C)(1) and (d)(2) insert ‘311(a),’ after ‘310(d)(2),’.”;

(5) In subsections (C)(1), (C)(2), (d)(2), and (d)(3) by inserting “or the House of Representatives” after “Senate” each place it appears, and

(6) Strike subsection (e).

SEC. 602. Point of order waiver protection.

Rule XIII of the Rules of the House of Representatives (as amended by section 313) is further amended by adding at the end the following new clause:

“10. (a) It shall not be in order to consider a rule or order that waives the provisions of any section of the Congressional Budget Act of 1974 referred to in section 904(C)(1) of such Act or of section 212 of the Spending, Deficit, and Debt Control Act of 2009.

“(b) As disposition of a point of order under paragraph (a), the Chair shall put the question of consideration with respect to the proposition that is the subject of the point of order. A question of consideration under this clause shall be debatable for 10 minutes by the Member initiating the point of order and for 10 minutes by an opponent of the point of order, but shall otherwise be decided without intervening motion except one that the House of Representatives adjourn or that the Committee of the Whole rise, as the case may be.

“(c) The disposition of the question of consideration under this clause with respect to a bill or joint resolution shall be considered also to determine the question of consideration under this clause with respect to an amendment made in order as original text.”.

SEC. 603. Application of the limitation on reconciliation legislation.

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

SEC. 604. Twenty-percent limit on new direct spending in reconciliation legislation.

At the end of section 313 of the Congressional Budget Act add the following subsection:

“(f) Direct Spending Limitation.—

“(1) POINT OF ORDER.—In the House of Representatives and the Senate, it shall not be in order to consider any reconciliation bill, joint resolution, motion, amendment, or any conference report on, or an amendment between the House of Representatives in relation to, a reconciliation bill pursuant to section 310(a) or (h) of the Congressional Budget Act of 1974, that produces an increase in outlays, if—

“(A) the effect of all the provisions in the jurisdiction of any committee is to create gross new direct spending that exceeds 20 percent of the total savings instruction to the committee; or

“(B) the effect of the adoption of an amendment results in gross new direct spending that exceeds 20 percent of the total savings instruction to the committee.

“(2) APPLICATION OF SECTION 313.—

“(A) A point of order under paragraph (1) may be raised by a Senator as provided in section 313(e) of the Congressional Budget Act of 1974.

“(B) Paragraph (1) may be waived or suspended only by an affirmative vote of three-fifths of the Members, duly chosen and sworn. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under paragraph (1).

“(C) If a point of order is sustained under paragraph (1) against a conference report in the Senate, the report shall be disposed of as provided in section 313(d) of the Congressional Budget Act of 1974.”.

SEC. 605. Treatment of extraneous appropriations.

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

Treatment of extraneous appropriations in omnibus appropriation measures

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

(b) Conforming Amendment.—The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 320 the following new item:


“Sec. 321. Treatment of extraneous appropriations in omnibus appropriation measures.”.

(c) Advance Appropriation Point of Order.—Section 312 of the Congressional Budget Act of 1974 (as amended by section 601) is further amended by adding at the end the following new subsection:

“(l) Advance Appropriation Point of Order.—It shall not be in order in the House of Representatives or the Senate to consider any appropriation bill or joint resolution, or amendment thereto or conference report thereon, that provides advance discretionary new budget authority that first becomes available for any fiscal year after the budget year at an amount for any program, project, or activity above the amount of appropriations for fiscal year 2007 for such program, project, or activity.”.

SEC. 606. Establishment of Discretionary Deficit Reduction Account.

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

Discretionary Deficit Reduction Account

“Sec. 322. (a) Establishment of Account.—The chairman of the Committee on the Budget of the House of Representatives and of the Senate shall each maintain an account to be known as the ‘deficit reduction Discretionary Account’. The Account shall be divided into entries corresponding to the subcommittees of the Committee on Appropriations of that House and each entry shall consist of the ‘deficit reduction Balance’.

“(b) Components.—Each entry shall consist only of amounts credited to it under subsection (c). No entry of a negative amount shall be made.

“(c) Crediting of Amounts to Account.—

“(1) Whenever a Member or Senator, as the case may be, offers an amendment to an appropriation bill to reduce new budget authority in any account, that Member or Senator may state the portion of such reduction that shall be credited to—

“(A) the deficit reduction Balance;

“(B) used to offset an increase in new budget authority in any other account; or

“(C) allowed to remain within the applicable section 302(b) suballocation.

“(2) If no such statement is made, the amount of reduction in new budget authority resulting from the amendment shall be credited to the deficit reduction Balance, as applicable, if the amendment is agreed to.

“(3) Except as provided by paragraph (4), the chairman of the Committee on the Budget of the House of Representatives or Senate, as applicable, shall, upon the engrossment of any appropriation bill by the House of Representatives or Senate, as applicable, credit to the applicable entry balances amounts of new budget authority and outlays equal to the net amounts of reductions in budget authority and in outlays resulting from amendments agreed to by that House to that bill.

“(4) When computing the net amounts of reductions in new budget authority and in outlays resulting from amendments agreed to by the House of Representatives or Senate, as applicable, to an appropriation bill, the chairman of the Committee on the Budget of that House shall only count those portions of such amendments agreed to that were so designated by the Members offering such amendments as amounts to be credited to the deficit reduction Balance, or that fall within the last sentence of paragraph (1).

“(5) The chairman of the Committee on the Budget of the House of Representatives and of the Senate shall each maintain a running tally of the amendments adopted reflecting increases and decreases of budget authority in the bill as reported to its House. This tally shall be available to Members or Senators during consideration of any bill by that House.

“(d) Calculation of Savings in Deficit Reduction Accounts in the House of Representatives and Senate.—

“(1) For the purposes of enforcing section 302(a), upon the engrossment of any appropriation bill by the House of Representatives or Senate, as applicable, the amount of budget authority and outlays calculated pursuant to subsection (c)(3) shall be counted against the 302(a) allocation provided to the Committee on Appropriations as if the amount calculated pursuant to subsection (c)(3) was included in the bill just engrossed.

“(2) For purposes of enforcing section 302(b), upon the engrossment of any appropriation bill by the House of Representatives or Senate, as applicable, the 302(b) allocation provided to the subcommittee for the bill just engrossed shall be deemed to have been reduced by the amount of budget authority and outlays calculated, pursuant to subsection (c)(3).

“(e) Definition.—As used in this section, the term ‘appropriation bill’ means any general or special appropriation bill, and any bill or joint resolution making supplemental, deficiency, or continuing appropriations through the end of fiscal year 2010 or any subsequent fiscal year, as the case may be.”.

SEC. 607. Establishment of Mandatory Deficit Reduction Account.

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

Mandatory Deficit Reduction Account

“Sec. 323. (a) Establishment of Account.—The chairman of the Committee on the Budget of the House of Representatives and of the Senate shall each maintain an account to be known as the ‘deficit reduction Mandatory Account’. The Account shall be divided into entries corresponding to the House of Representatives or Senate committees, as applicable, that received allocations under section 302(a) in the most recently adopted joint resolution on the budget, except that it shall not include the Committee on Appropriations of that House and each entry shall consist of the ‘First Year deficit reduction Account’ and the ‘Five Year deficit reduction Account’ or the period covered by the resolution on the budget for that fiscal year, as applicable.

“(b) Components.—Each entry shall consist only of amounts credited to it under subsection (c). No entry of a negative amount shall be made.

“(c) Calculation of Account Savings in House and Senate.—For the purposes of enforcing section 302(a), upon the engrossment of any bill, other than an appropriation bill, by the House of Representatives or Senate, as applicable, the amount of budget authority and outlays calculated pursuant to subsection (c)(3) shall be counted against the 302(a) allocation provided to the applicable committee or committees of that House which reported the bill as if the amount calculated pursuant to subsection (c)(3) was included in the bill just engrossed.

“(d) Crediting of Amounts to Account.—

“(1) Whenever a Member or Senator, as the case may be, offers an amendment to a bill that reduces the amount of mandatory budget authority provided either under current law or proposed to be provided by the bill under consideration, that Member or Senator may state the portion of such reduction achieved in the first year covered by the most recently adopted joint resolution on the budget and in addition the portion of such reduction achieved in the first five years covered by the most recently adopted joint resolution on the budget that shall be credited to the First Year deficit reduction Balance and the Five Year deficit reduction Balance, as applicable, if the amendment is agreed to.

“(2) Except as provided by paragraph (3), the chairman of the Committee on the Budget of the House of Representatives or Senate, as applicable, shall, upon the engrossment of any bill, other than an appropriation bill, by the House of Representatives or Senate, as applicable, credit to the applicable entry balances amounts of new budget authority and outlays equal to the net amounts of reductions in budget authority and in outlays resulting from amendments agreed to by that House to that bill.

“(3) When computing the net amounts of reductions in budget authority and in outlays resulting from amendments agreed to by the House of Representatives or Senate, as applicable, to a bill, the chairman of the Committee on the Budget of that House shall only count those portions of such amendments agreed to that were so designated by the Members or Senators offering such amendments as amounts to be credited to the First Year deficit reduction Balance and the Five-Year deficit reduction Balance, or that fall within the last sentence of paragraph (1).

“(4) The chairman of the Committee on the Budget of the House of Representatives and of the Senate shall each maintain a running tally of the amendments adopted reflecting increases and decreases of budget authority in the bill as reported to its House. This tally shall be available to Members or Senators during consideration of any bill by that House.

“(e) Definition.—As used in this section, the term ‘appropriation bill’ means any general or special appropriation bill, and any bill or joint resolution making supplemental, deficiency, or continuing appropriations through the end of fiscal year 2009 or any subsequent fiscal year, as the case may be.”.

SEC. 608. Conforming amendment.

The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 321 the following new items:


“Sec. 322. Discretionary deficit reduction account.

“Sec. 323. Mandatory deficit reduction account.”.

SEC. 611. Suspension of certain requirements regarding the House of Representatives committee term limits committee.

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

SEC. 612. Establishment of the select committee on requirements regarding the House of Representatives Budget Committee.

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

SEC. 613. Procedure.

(a) Legislative Jurisdiction.—The select committee shall not have legislative jurisdiction and shall have no authority to take legislative action on any bill or resolution.

(b) Study.—The select committee shall study and make recommendations about the effectiveness of limiting the membership on the House of Representatives Budget Committee to four Congresses within a period of six successive Congresses.

SEC. 614. Composition.

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

SEC. 615. Reporting.

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

SEC. 616. Administrative Provisions.

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

SEC. 617. Dissolution.

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

SEC. 621. Judicial review.

(a) Expedited Review.—

(1) any Member of Congress or any individual adversely affected by this Act may bring an action, in the United States District Court for the District of Columbia, for declaratory judgment and injunctive relief on the ground that any provision of this part violates the Constitution.

(2) a copy of any complaint in an action brought under paragraph (1) shall be promptly delivered to the Secretary of the Senate and the Clerk of the House of Representatives, and each House of Congress shall have the right to intervene in such action.

(3) nothing in this section or in any other law shall infringe upon the right of the House of Representatives to intervene in an action brought under paragraph (1) without the necessity of adopting a resolution to authorize such intervention.

(b) Appeal to Supreme Court.—Notwithstanding any other provision of law, any order of the United States District Court for the District of Columbia which is issued pursuant to an action brought under paragraph (1) of subsection (a) shall be reviewable by appeal directly to the Supreme Court of the United States. Any such appeal shall be taken by a notice of appeal filed within 10 calendar days after such order is entered; and the jurisdictional statement shall be filed within 30 calendar days after such order is entered. No stay of an order issued pursuant to an action brought under paragraph (1) of subsection (a) shall be issued by a single Justice of the Supreme Court.

(c) Expedited Consideration.—It shall be the duty of the District Court for the District of Columbia and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of any matter brought under subsection (a).

SEC. 622. Severability.

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