Truth in Budgeting and Social Security Protection Act of 2005 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) (BBEDC) to extend discretionary spending caps and pay-as-you-go (PAYGO) requirements.
Amends the Congressional Budget Act of 1974 (CBA) to prescribe authority and criteria for designation of emergency requirements, as well as points of order against such a designation.
Amends BBEDC to extend indefinitely certain budget enforcement mechanisms of discretionary spending limits (caps).
Amends CBA to require: (1) proposed legislation to contain a projection by the Congressional Budget Office (CBO) of the cost of debt servicing for measures; (2) conference reports to contain amounts allocated to the Committee on Appropriations subcommittees; and (3) the CBO to report on proposed legislation or conference reports by any committee that contain cost riders that are likely to increase the cost path of a measure.
Requires the President to report to specified congressional committees in January of each year on the fiscal exposures of the Federal Government and their implications for long-term financial health.
Federal Insurance Budgeting Act of 2005 - Requires that, starting FY 2008, the President's budget submission to Congress be based upon the risk-assumed cost of Federal insurance programs for accrual budgeting purposes. Amends cost requirements of Federal insurance programs.
Requires agencies responsible for Federal insurance programs to develop models to estimate their risk-assumed cost by year.
Amends CBA to revise the Federal and congressional budget processes by establishing a two-year budgeting and appropriations cycle and timetable. Defines the budget biennium as the two consecutive fiscal years beginning on October 1 of any odd-numbered year.
Establishes the Commission on Federal Budget Concepts.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 568 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 568
To balance the budget and protect the Social Security Trust Fund
surpluses.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 8, 2005
Mr. Voinovich (for himself and Mr. Feingold) introduced the following
bill; which was read twice and referred to the Committee on the Budget
_______________________________________________________________________
A BILL
To balance the budget and protect the Social Security Trust Fund
surpluses.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Truth in Budgeting
and Social Security Protection Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--GENERAL REFORMS
Sec. 101. Extension of the discretionary spending caps.
Sec. 102. Extension of Pay-as-You-Go requirement.
Sec. 103. Point of order to require compliance with the caps and Pay-
as-You-Go.
Sec. 104. Disclosure of interest costs.
Sec. 105. Executive branch report on fiscal exposures.
Sec. 106. Senate sets 302(b) allocations.
Sec. 107. Long-Term Cost Recognition Point of Order.
TITLE II--REFORM OF BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
Sec. 201. Federal insurance programs.
TITLE III--BIENNIAL BUDGETING AND APPROPRIATIONS
Sec. 301. Revision of timetable.
Sec. 302. Amendments to the Congressional Budget and Impoundment
Control Act of 1974.
Sec. 303. Amendments to title 31, United States Code.
Sec. 304. Two-year appropriations; title and style of appropriations
Acts.
Sec. 305. Multiyear authorizations.
Sec. 306. Government plans on a biennial basis.
Sec. 307. Biennial appropriations bills.
Sec. 308. Report on two-year fiscal period.
Sec. 309. Effective date.
TITLE IV--COMMISSION ON FEDERAL BUDGET CONCEPTS
Sec. 401. Establishment of Commission on Federal Budget Concepts.
Sec. 402. Powers and duties of Commission.
Sec. 403. Membership.
Sec. 404. Staff and support services.
Sec. 405. Report.
Sec. 406. Termination.
Sec. 407. Funding.
TITLE I--GENERAL REFORMS
SEC. 101. EXTENSION OF THE DISCRETIONARY SPENDING CAPS.
(a) In General.--Section 251(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by striking paragraphs
(7) through (16) and inserting the following:
``(7) with respect to fiscal years 2006 through 2011 an
amount equal to the appropriated amount of discretionary
spending in budget authority and outlays for fiscal year 2003
adjusted to reflect inflation;''.
(b) Emergency Designation.--Section 314 of the Congressional Budget
Act of 1974 (2 U.S.C. 645) is amended by adding at the end the
following:
``(f) Emergency Legislation.--
``(1) Authority to designate.--If a provision of direct
spending or receipts legislation, not to include revisions to
the income tax, is enacted or if appropriations for
discretionary accounts are enacted that the President
designates as an emergency requirement and that Congress so
designates in statute, the amounts of new budget authority,
outlays, and receipts in all fiscal years resulting from that
provision shall be designated as an emergency requirement for
the purpose of subsection (b)(1).
``(2) Designations.--
``(A) Guidance.--If a provision of legislation is
designated as an emergency requirement under paragraph
(1), the committee report and any statement of managers
accompanying that legislation shall analyze whether a
proposed emergency requirement meets all the criteria
in subparagraph (B).
``(B) Criteria.--
``(i) In general.--The criteria to be
considered in determining whether a proposed
expenditure or tax change is an emergency
requirement are that the expenditure or tax
change is--
``(I) necessary, essential, or
vital (not merely useful or
beneficial);
``(II) sudden, quickly coming into
being, and not building up over time;
``(III) an urgent, pressing, and
compelling need requiring immediate
action;
``(IV) subject to subparagraph (B),
unforeseen, unpredictable, and
unanticipated; and
``(V) not permanent, temporary in
nature.
``(ii) Unforeseen.--An emergency that is
part of an aggregate level of anticipated
emergencies, particularly when normally
estimated in advance, is not unforeseen.
``(C) Justification for use of designation.--When
an emergency designation is proposed in any bill, joint
resolution, or conference report thereon, the committee
report and the statement of managers accompanying a
conference report, as the case may be, shall provide a
written justification of why the provision meets the
criteria set forth in subparagraph (B).
``(3) Definitions.--In this subsection, the terms `direct
spending', `receipts', and `appropriations for discretionary
accounts' means any provision of a bill, joint resolution,
amendment, motion or conference report that affects direct
spending, receipts, or appropriations as those terms have been
defined and interpreted for purposes of the Balanced Budget and
Emergency Deficit Control Act of 1985.
``(4) Definition of an emergency requirement.--A provision
shall be considered an emergency designation if it designates
any item as an emergency requirement pursuant to paragraph (1).
``(5) Point of order.--
``(A) In general.--When the Senate is considering a
bill, resolution, amendment, motion, or conference
report, a point of order may be made by a Senator
against an emergency designation in that measure and if
the Presiding Officer sustains that point of order,
that provision making such a designation shall be
stricken from the measure and may not be offered as an
amendment from the floor.
``(B) Waiver and appeal.--This subsection may be
waived or suspended in the Senate only by an
affirmative vote of \3/5\ of the Members, duly chosen
and sworn. An affirmative vote of \3/5\ of the Members
of the Senate, duly chosen and sworn, shall be required
to sustain an appeal of the ruling of the Chair on a
point of order raised under this section.
``(C) Form of the point of order.--A point of order
under this subsection may be raised by a Senator as
provided in section 313(e).
``(D) Conference reports.--If a point of order is
sustained under this subsection against a conference
report, the report shall be disposed of as provided in
section 313(d).
``(E) Exception for defense and homeland security
spending.--Subparagraph (A) shall not apply against an
emergency designation for a provision making
discretionary appropriations in the defense category
and for homeland security programs.''.
(c) Expiration.--Section 275(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 note) is amended by
striking subsection (b).
SEC. 102. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.
Section 252(a) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended by striking ``enacted before October 1, 2002,''
both places it appears.
SEC. 103. POINT OF ORDER TO REQUIRE COMPLIANCE WITH THE CAPS AND PAY-
AS-YOU-GO.
Section 312(b) of the Congressional Budget Act of 1974 (2 U.S.C.
643(b)) is amended to read as follows:
``(b) Discretionary Spending and Pay-as-You-Go Point of Order in
the Senate.--
``(1) In general.--Except as otherwise provided in this
subsection, it shall not be in order in the Senate to consider
any bill or resolution or any separate provision of a bill or
resolution (or amendment, motion, or conference report on that
bill or resolution) that would--
``(A) exceed any of the discretionary spending
limits in section 251(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985; or
``(B) for direct spending or revenue legislation,
would cause or increase an on-budget deficit for any
one of the following three applicable time periods--
``(i) the first year covered by the most
recently adopted concurrent resolution on the
budget;
``(ii) the period of the first 5 fiscal
years covered by the most recently adopted
concurrent resolution on the budget; or
``(iii) the period of the 5 fiscal years
following the first five fiscal years covered
in the most recently adopted concurrent
resolution on the budget.
``(2) Point of order against a specific provision.--If the
Presiding Officer sustains a point of order under paragraph (1)
with respect to any separate provision of a bill or resolution,
that provision shall be stricken from the measure and may not
be offered as an amendment from the floor.
``(3) Form of the point of order.--A point of order under
this section may be raised by a Senator as provided in section
313(e) of the Congressional Budget Act of 1974.
``(4) Conference reports.--If a point of order is sustained
under this section against a conference report the report shall
be disposed of as provided in section 313(d) of the
Congressional Budget Act of 1974.
``(5) Exceptions.--This subsection shall not apply if a
declaration of war by the Congress is in effect or if a joint
resolution pursuant to section 258 of the Balanced Budget and
Emergency Deficit Control Act of 1985 has been enacted.''.
SEC. 104. DISCLOSURE OF INTEREST COSTS.
Section 308(a)(1) of the Congressional Budget Act of 1974 (2 U.S.C.
639(a)(1)) is amended--
(1) in subparagraph (B), by striking ``and'' after the
semicolon;
(2) in subparagraph (C), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(D) containing a projection by the Congressional
Budget Office of the cost of the debt servicing that
would be caused by such measure for such fiscal year
(or fiscal years) and each of the 4 ensuing fiscal
years.''.
SEC. 105. EXECUTIVE BRANCH REPORT ON FISCAL EXPOSURES.
(a) In General.--The President shall submit to the Committees on
Appropriations, Budget, Finance, and Homeland Security and Governmental
Affairs of the Senate, and the Committees on Appropriations, Budget,
Government Reform, and Ways and Means of the House of Representatives,
not later than 2 weeks before the first Monday in February of each
year, a report (in this section referred to as the ``report'') on the
fiscal exposures of the United States Federal Government and their
implications for long-term financial health. The report shall also be
included as part of the Consolidated Financial Statement of the United
States Government.
(b) Contents.--
(1) In general.--The report shall include fiscal exposures
for the following categories of fiscal exposures:
(A) Debt.--Debt, including--
(i) total gross debt;
(ii) publicly held debt; and
(iii) debt held by Government accounts.
(B) Other financial liabilities.--Other financial
liabilities, including--
(i) civilian and military pensions;
(ii) post-retirement health benefits;
(iii) environmental liabilities;
(iv) accounts payable;
(v) loan guarantees; and
(vi) Social Security benefits due and
payable.
(C) Financial commitments.--Financial commitments,
including--
(i) undelivered orders; and
(ii) long-term operating leases.
(D) Financial contingencies and other exposure.--
Financial contingencies and other exposures,
including--
(i) unadjudicated claims;
(ii) Federal insurance programs (including
both the financial contingency for and risk
assumed by such programs);
(iii) net future benefits under Social
Security, Medicare Part A, Medicare Part B, and
other social insurance programs;
(iv) life cycle costs, including deferred
and future maintenance and operating costs
associated with operating leases and the
maintenance of capital assets;
(v) unfunded portions of incrementally
funded capital projects;
(vi) disaster relief; and
(vii) others as deemed appropriate.
(2) Estimates.--Where available, estimates for each
exposure should be included. Where reasonable estimates are not
available, a range of estimates may be appropriate.
(3) Other exposures.--Exposures that are analogous to those
specified in paragraph (1) shall also be included in the
exposure categories identified in such paragraph.
(c) Format.--The report shall include a 1-page list of all
exposures. Additional disclosures shall include descriptions of
exposures, the estimation methodologies and significant assumptions
used, and an analysis of the implications of the exposures for the
long-term financial outlook. Additional analysis deemed informative may
be provided on subsequent pages.
(d) Review With Congress.--Following the submission of the report
on fiscal exposures to the Senate and the House of Representatives, the
Comptroller General shall review and report to the committee reviewing
the report on the report, discussing--
(1) the extent to which all required disclosures under this
section have been made;
(2) the quality of the cost estimates;
(3) the scope of the information;
(4) the long-range financial outlook; and
(5) any other matters deemed appropriate.
(e) Definitions.--In this section:
(1) Liabilities.--The terms ``liabilities'',
``commitments'', and ``contingencies'' shall be defined in
accordance with generally accepted accounting principles and
standards of the United States Federal Government.
(2) Net future benefit payments.--The term ``net future
benefit payments'' means the net present value of negative
cashflow. Negative cashflow is to be calculated as the current
amount of funds needed to cover projected shortfalls, excluding
trust fund balances, over a 75-year period. This estimate
should include births during the period and individuals below
age 15 as of January 1 of the valuation year.
(3) Risk assumed.--The term ``risk assumed'' means the full
portion of the risk premium based on the expected cost of
losses inherent in the Government's commitment that is not
charged to the insured. For example, the present value of
unpaid expected losses net of associated premiums, based on the
risk assumed as a result of insurance coverage.
SEC. 106. SENATE SETS 302(B) ALLOCATIONS.
The Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.) is
amended--
(1) in section 301(e)(2)(F) (2 U.S.C. 632(e)(2)(F)), by
striking ``section 302(a)'' and inserting ``subsections (a) and
(b) of section 302''; and
(2) in section 302 (2 U.S.C. 633), by striking subsection
(b) and inserting the following:
``(b) Suballocations for Appropriations Committee.--The joint
explanatory statement accompanying a conference report on a concurrent
resolution on the budget shall include suballocations of amounts
allocated to the Committees on Appropriations of each amount allocated
to those committees under subsection (a) among each of the
subcommittees of those committees.''.
SEC. 107. LONG-TERM COST RECOGNITION POINT OF ORDER.
(a) In General.--Title III of the Congressional Budget Act of 1974
is amended by adding at the end the following:
``long-term cost recognition point of order
``Sec. 318. (a) Congressional Budget Office Analysis.--
``(1) In general.--CBO shall, in conjunction with the
analysis required by section 402, prepare and submit to the
Committees on the Budget of the House of Representatives and
Senate a report on each bill, joint resolution, amendment,
motion, or conference report reported by any committee of the
House of Representatives or the Senate that contains any cost
drivers that CBO concludes are likely to have the effect of
increasing the cost path of that measure such that the
estimated discounted cash flows of the measure in the 10 years
following the 10th year after the measure takes effect would be
150 percent or greater of the level of the estimated discounted
cash flows of the measure at the end of the 10 years following
the enactment of the measure.
``(2) Projections.--Where possible, CBO should use existing
long-term projections of cost drivers prepared by the
appropriate Federal agency.
``(3) Limit.--Nothing in this section requires CBO to
develop cost estimates for a measure beyond the 10th year after
the measure takes effect.
``(b) Cost Drivers.--Cost drivers CBO shall consider under
subsection (a) include--
``(1) demographic changes;
``(2) new technologies; and
``(3) environmental factors.
``(c) Point of Order.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, motion, or conference report that CBO determines will
increase the level of the estimated discounted cash flows of that
measure as reported in subsection (a) by 150 percent or more.''.
TITLE II--REFORM OF BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
SEC. 201. FEDERAL INSURANCE PROGRAMS.
(a) In General.--The Congressional Budget Act of 1974 is amended by
adding after title V the following new title:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``SEC. 601. SHORT TITLE.
``This title may be cited as the `Federal Insurance Budgeting Act
of 2005'.
``SEC. 602. BUDGETARY TREATMENT.
``(a) President's Budget.--Beginning with fiscal year 2010, the
budget of the Government submitted pursuant to section 1105(a) of title
31, United States Code, shall be based on the risk-assumed cost of
Federal insurance programs.
``(b) Budget Accounting.--For any Federal insurance program--
``(1) the program account shall--
``(A) pay the risk-assumed cost borne by taxpayers
to the financing account; and
``(B) pay actual insurance program administrative
costs; and
``(2) the financing account shall--
``(A) receive premiums and other income;
``(B) pay all claims for insurance and receive all
recoveries; and
``(C) transfer to the program account on not less
than an annual basis amounts necessary to pay insurance
program administrative costs;
``(3) a negative risk-assumed cost shall be transferred
from the financing account to the program account, and shall be
transferred from the program account to the general fund; and
``(4) all payments by or receipts of the financing accounts
shall be treated in the budget as a means of financing.
``(c) Appropriations Required.--(1) Notwithstanding any other
provision of law, insurance commitments may be made for fiscal year
2008 and thereafter only to the extent that new budget authority to
cover their risk-assumed cost is provided in advance in an
appropriation Act.
``(2) An outstanding insurance commitment shall not be modified in
a manner that increases its risk-assumed cost unless budget authority
for the additional cost has been provided in advance.
``(3) Paragraph (1) shall not apply to Federal insurance programs
that constitute entitlements.
``(d) Reestimates.--
``(1) In general.--The risk-assumed cost for a fiscal year
shall be reestimated in each subsequent year. Such reestimate
can equal zero. In the case of a positive reestimate, the
amount of the reestimate shall be paid from the program account
to the financing account. In the case of a negative reestimate,
the amount of the reestimate shall be paid from the financing
account to the program account, and shall be transferred from
the program account to the general fund. Reestimates shall be
displayed as a distinct and separately identified subaccount in
the program account.
``(2) Appropriations.--There are appropriated such sums as
are necessary to fund a positive reestimate under paragraph
(1).
``(e) Administrative Expenses.--All funding for an agency's
administration of a Federal insurance program shall be displayed as a
distinct and separately identified subaccount in the program account.
``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR
FEDERAL INSURANCE PROGRAMS.
``(a) Agency Requirements.--Agencies with responsibility for
Federal insurance programs shall develop models to estimate their risk-
assumed cost by year through the budget horizon and shall submit those
models, all relevant data, a justification for critical assumptions,
and the annual projected risk-assumed costs to OMB with their budget
requests each year starting with the request for fiscal year 2007.
Agencies will likewise provide OMB with annual estimates of
modifications, if any, and reestimates of program costs.
``(b) Disclosure.--When the President submits a budget of the
Government pursuant to section 1105(a) of title 31, United States Code,
for fiscal year 2007, OMB shall publish a notice in the Federal
Register advising interested persons of the availability of information
describing the models, data (including sources), and critical
assumptions (including explicit or implicit discount rate assumptions)
that it or other executive branch entities would use to estimate the
risk-assumed cost of Federal insurance programs and giving such persons
an opportunity to submit comments. At the same time, the chairman of
the Committee on the Budget shall publish a notice for CBO in the
Federal Register advising interested persons of the availability of
information describing the models, data (including sources), and
critical assumptions (including explicit or implicit discount rate
assumptions) that it would use to estimate the risk-assumed cost of
Federal insurance programs and giving such interested persons an
opportunity to submit comments.
``(c) Revision.--After consideration of comments pursuant to
subsection (b), and in consultation with the Committees on the Budget
of the House of Representatives and the Senate, OMB and CBO shall
revise the models, data, and major assumptions they would use to
estimate the risk-assumed cost of Federal insurance programs.
``(d) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months
after the budget submission of the President pursuant to section
1105(a) of title 31, United States Code, for fiscal year 2009, OMB,
CBO, and GAO shall each submit to the Committees on the Budget of the
House of Representatives and the Senate a report that evaluates the
advisability and appropriate implementation of this title.
``(2) Each report made pursuant to paragraph (1) shall address the
following:
``(A) The adequacy of risk-assumed estimation models used
and alternative modeling methods.
``(B) The availability and reliability of data or
information necessary to carry out this title.
``(C) The appropriateness of the explicit or implicit
discount rate used in the various risk-assumed estimation
models.
``(D) The advisability of specifying a statutory discount
rate (such as the Treasury rate) for use in risk-assumed
estimation models.
``(E) The ability of OMB, CBO, or GAO, as applicable, to
secure any data or information directly from any Federal agency
necessary to enable it to carry out this title.
``(F) The relationship between risk-assumed accrual
budgeting for Federal insurance programs and the specific
requirements of the Balanced Budget and Emergency Deficit
Control Act of 1985.
``(G) Whether Federal budgeting is improved by the
inclusion of risk-assumed cost estimates for Federal insurance
programs.
``(H) The advisability of including each of the programs
currently estimated on a risk-assumed cost basis in the Federal
budget on that basis.
``SEC. 604. DEFINITIONS.
``For purposes of this title:
``(1) The term `CBO' means the Director of the
Congressional Budget Office.
``(2) The term `current' has the same meaning as in section
250(c)(9) of the Balanced Budget and Emergency Deficit Control
Act of 1985.
``(3) The term `Federal insurance program' means a program
that makes insurance commitments and includes the list of such
programs as to be defined by the budget concepts commission, as
required by title IV of the Truth in Budgeting and Social
Security Protection Act of 2005.
``(4) The term `financing account' means the nonbudget
account that is associated with each program account which
receives payments from or makes payments to the program
account, receives premiums and other payments from the public,
pays insurance claims, and holds balances.
``(5) The term `GAO' means the Comptroller General of the
United States.
``(6) The term `insurance commitment' means an agreement in
advance by a Federal agency to indemnify a non-Federal entity
against specified losses. This term does not include loan
guarantees as defined in title V or benefit programs such as
social security, medicare, and similar existing social
insurance programs.
``(7) The term `model' means any actuarial, financial,
econometric, probabilistic, or other methodology used to
estimate the expected frequency and magnitude of loss-producing
events, expected premiums or collections from or on behalf of
the insured, expected recoveries, and administrative expenses.
``(8) The term `modification' means any Government action
that alters the risk-assumed cost of an existing insurance
commitment from the current estimate of cash flows. This
includes any action resulting from new legislation, or from the
exercise of administrative discretion under existing law, that
directly or indirectly alters the estimated cost of existing
insurance commitments.
``(9) The term `OMB' means the Director of the Office of
Management and Budget.
``(10) The term `program account' means the budget account
for the risk-assumed cost, and for paying all costs of
administering the insurance program, and is the account from
which the risk-assumed cost is disbursed to the financing
account.
``(11)(A) The term `risk-assumed cost' means the net
present value of the estimated cash flows to and from the
Government resulting from an insurance commitment or
modification thereof.
``(B) The cash flows associated with an insurance
commitment include--
``(i) expected claims payments inherent in the
Government's commitment;
``(ii) net premiums (expected premium collections
received from or on behalf of the insured less expected
administrative expenses);
``(iii) expected recoveries; and
``(iv) expected changes in claims, premiums, or
recoveries resulting from the exercise by the insured
of any option included in the insurance commitment.
``(C) The cost of a modification is the difference between
the current estimate of the net present value of the remaining
cash flows under the terms of the insurance commitment, and the
current estimate of the net present value of the remaining cash
flows under the terms of the insurance commitment as modified.
``(D) The cost of a reestimate is the difference between
the net present value of the amount currently required by the
financing account to pay estimated claims and other
expenditures and the amount currently available in the
financing account. The cost of a reestimate shall be accounted
for in the current year in the budget of the Government
submitted pursuant to section 1105(a) of title 31, United
States Code.
``(E) For purposes of this definition, expected
administrative expenses shall be construed as the amount
estimated to be necessary for the proper administration of the
insurance program. This amount may differ from amounts actually
appropriated or otherwise made available for the administration
of the program.
``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST
ACCOUNT.
``(a) Authorization of Appropriations.--There is authorized to be
appropriated $600,000 for each of fiscal years 2006 through 2011 to the
Director of the Office of Management and Budget and each agency
responsible for administering a Federal program to carry out this
title.
``(b) Treasury Transactions With the Financing Accounts.--The
Secretary of the Treasury shall borrow from, receive from, lend to, or
pay the insurance financing accounts such amounts as may be
appropriate. The Secretary of the Treasury may prescribe forms and
denominations, maturities, and terms and conditions for the
transactions described above. The authorities described above shall not
be construed to supersede or override the authority of the head of a
Federal agency to administer and operate an insurance program. All the
transactions provided in this subsection shall be subject to the
provisions of subchapter II of chapter 15 of title 31, United States
Code. Cash balances of the financing accounts in excess of current
requirements shall be maintained in a form of uninvested funds, and the
Secretary of the Treasury shall pay interest on these funds.
``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost
of Insurance Commitments at Transition Date.--(1) A financing account
is established on September 30, 2009, for each Federal insurance
program.
``(2) These financing accounts shall be used in implementing the
budget accounting required by this title.
``SEC. 606. EFFECTIVE DATE.
``(a) In General.--This title shall take effect immediately and
shall expire on September 30, 2011.
``(b) Special Rule.--If this title is not reauthorized by September
30, 2011, then the accounting structure and budgetary treatment of
Federal insurance programs shall revert to the accounting structure and
budgetary treatment in effect immediately before the date of enactment
of this title.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment Control Act of
1974 is amended by inserting after the item relating to section 507 the
following new items:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting
for Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial
cost account.
``Sec. 606. Effective date.''.
TITLE III--BIENNIAL BUDGETING AND APPROPRIATIONS
SEC. 301. REVISION OF TIMETABLE.
Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631)
is amended to read as follows:
``timetable
``Sec. 300. (a) In General.--Except as provided by subsection (b),
the timetable with respect to the congressional budget process for any
Congress (beginning with the second session of the One Hundred Ninth
Congress) 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 Committees submit views and
submission. estimates to Budget Committees.
April 1............................... Budget Committees report
concurrent resolution on the
biennial budget.
May 15................................ Congress completes action on
concurrent resolution on the
biennial budget.
May 15................................ Biennial appropriation bills may
be considered in the House.
June 10............................... House Appropriations Committee
reports last biennial
appropriation bill.
June 30............................... House completes action on
biennial appropriation bills.
August 1.............................. Congress completes action on
reconciliation legislation.
October 1............................. Biennium begins.
Second Session
On or before: Action to be completed:
February 15........................... President submits budget review.
Not later than 6 weeks after President Congressional Budget Office
submits budget review. 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 immediately following a leap year and during
which the term of a President (except a President who succeeds himself)
begins, the following dates shall supersede those set forth in
subsection (a):
`` First Session
On or before: Action to be completed:
First Monday in April................. President submits budget
recommendations.
April 20.............................. Committees submit views and
estimates to Budget Committees.
May 15................................ Budget Committees report
concurrent resolution on the
biennial budget.
June 1................................ Congress completes action on
concurrent resolution on the
biennial budget.
July 1................................ Biennial appropriation bills may
be considered in the House.
July 20............................... House completes action on
biennial appropriation bills.
August 1.............................. Congress completes action on
reconciliation legislation.
October 1............................. Biennium begins.''.
SEC. 302. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT
CONTROL ACT OF 1974.
(a) Declaration of Purpose.--Section 2(2) of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended
by striking ``each year'' and inserting ``biennially''.
(b) Definitions.--
(1) Budget resolution.--Section 3(4) of such Act (2 U.S.C.
622(4)) is amended by striking ``fiscal year'' each place it
appears and inserting ``biennium''.
(2) Biennium.--Section 3 of such Act (2 U.S.C. 622) is
further amended by adding at the end the following new
paragraph:
``(11) The term `biennium' means the period of 2
consecutive fiscal years beginning on October 1 of any odd-
numbered year.''.
(c) Biennial Concurrent Resolution on the Budget.--
(1) Contents of resolution.--Section 301(a) of such Act (2
U.S.C. 632(a)) is amended--
(A) in the matter preceding paragraph (1) by--
(i) striking ``April 15 of each year'' and
inserting ``May 15 of each odd-numbered year'';
(ii) striking ``the fiscal year beginning
on October 1 of such year'' the first place it
appears and inserting ``the biennium beginning
on October 1 of such year''; and
(iii) striking ``the fiscal year beginning
on October 1 of such year'' the second place it
appears and inserting ``each fiscal year in
such period'';
(B) in paragraph (6), by striking ``for the fiscal
year'' and inserting ``for each fiscal year in the
biennium''; and
(C) in paragraph (7), by striking ``for the first
fiscal year'' and inserting ``for each fiscal year in
the biennium''.
(2) Additional matters.--Section 301(b)(3) of such Act (2
U.S.C. 632(b)) is amended by striking ``for such fiscal year''
and inserting ``for either fiscal year in such biennium''.
(3) Views of other committees.--Section 301(d) of such Act
(2 U.S.C. 632(d)) is amended by inserting ``(or, if applicable,
as provided by section 300(b))'' after ``United States Code''.
(4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C.
632(e)) is amended by--
(A) striking ``fiscal year'' and inserting
``biennium''; and
(B) inserting after the second sentence the
following: ``On or before April 1 of each odd-numbered
year (or, if applicable, as provided by section
300(b)), the Committee on the Budget of each House
shall report to its House the concurrent resolution on
the budget referred to in subsection (a) for the
biennium beginning on October 1 of that year.''.
(5) Goals for reducing unemployment.--Section 301(f) of
such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal
year'' each place it appears and inserting ``biennium''.
(6) Economic assumptions.--Section 301(g)(1) of such Act (2
U.S.C. 632(g)(1)) is amended by striking ``for a fiscal year''
and inserting ``for a biennium''.
(7) Section heading.--The section heading of section 301 of
such Act is amended by striking ``annual'' and inserting
``biennial''.
(8) Table of contents.--The item relating to section 301 in
the table of contents set forth in section 1(b) of such Act is
amended by striking ``Annual'' and inserting ``Biennial''.
(d) Committee Allocations.--Section 302 of such Act (2 U.S.C. 633)
is amended--
(1) in subsection (a)(1), by--
(A) striking ``for the first fiscal year of the
resolution,'' and inserting ``for each fiscal year in
the biennium,'';
(B) striking ``for that period of fiscal years''
and inserting ``for all fiscal years covered by the
resolution''; and
(C) striking ``for the fiscal year of that
resolution'' and inserting ``for each fiscal year in
the biennium'';
(2) in subsection (f)(1), by striking ``for a fiscal year''
and inserting ``for a biennium'';
(3) in subsection (f)(1), by striking ``first fiscal year''
and inserting ``each fiscal year of the biennium'';
(4) in subsection (f)(2)(A), by--
(A) striking ``first fiscal year'' and inserting
``each fiscal year of the biennium''; and
(B) striking ``the total of fiscal years'' and
inserting ``the total of all fiscal years covered by
the resolution''; and
(5) in subsection (g)(1)(A), by striking ``April'' and
inserting ``May''.
(e) Section 303 Point of Order.--
(1) In general.--Section 303(a) of such Act (2 U.S.C.
634(a)) is amended by striking ``first fiscal year'' and
inserting ``each fiscal year of the biennium''.
(2) Exceptions in the house.--Section 303(b)(1) of such Act
(2 U.S.C. 634(b)) is amended--
(A) in subparagraph (A), by striking ``the budget
year'' and inserting ``the biennium''; and
(B) in subparagraph (B), by striking ``the fiscal
year'' and inserting ``the biennium''.
(3) Application to the senate.--Section 303(c)(1) of such
Act (2 U.S.C. 634(c)) is amended by--
(A) striking ``fiscal year'' and inserting
``biennium''; and
(B) striking ``that year'' and inserting ``each
fiscal year of that biennium''.
(f) Permissible Revisions of Concurrent Resolutions on the
Budget.--Section 304(a) of such Act (2 U.S.C. 635) is amended--
(1) by striking ``fiscal year'' the first two places it
appears and inserting ``biennium'';
(2) by striking ``for such fiscal year''; and
(3) by inserting before the period ``for such biennium''.
(g) Procedures for Consideration of Budget Resolutions.--Section
305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended by striking
``fiscal year'' and inserting ``biennium''.
(h) Completion of House Action on Appropriation Bills.--Section 307
of such Act (2 U.S.C. 638) is amended--
(1) by striking ``each year'' and inserting ``each odd-
numbered year'';
(2) by striking ``annual'' and inserting ``biennial'';
(3) by striking ``fiscal year'' and inserting ``biennium'';
and
(4) by striking ``that year'' and inserting ``each odd-
numbered year''.
(i) Completion of Action on Regular Appropriation Bills.--Section
309 of such Act (2 U.S.C. 640) is amended--
(1) by inserting ``of any odd-numbered calendar year''
after ``July'';
(2) by striking ``annual'' and inserting ``biennial''; and
(3) by striking ``fiscal year'' and inserting ``biennium''.
(j) Reconciliation Process.--Section 310(a) of such Act (2 U.S.C.
641(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``any fiscal year'' and inserting ``any biennium''; and
(2) in paragraph (1) by striking ``such fiscal year'' each
place it appears and inserting ``any fiscal year covered by
such resolution''.
(k) Section 311 Point of Order.--
(1) In the house.--Section 311(a)(1) of such Act (2 U.S.C.
642(a)) is amended--
(A) by striking ``for a fiscal year'' and inserting
``for a biennium'';
(B) by striking ``the first fiscal year'' each
place it appears and inserting ``either fiscal year of
the biennium''; and
(C) by striking ``that first fiscal year'' and
inserting ``each fiscal year in the biennium''.
(2) In the senate.--Section 311(a)(2) of such Act is
amended--
(A) in subparagraph (A), by striking ``for the
first fiscal year'' and inserting ``for either fiscal
year of the biennium''; and
(B) in subparagraph (B)--
(i) by striking ``that first fiscal year''
the first place it appears and inserting ``each
fiscal year in the biennium''; and
(ii) by striking ``that first fiscal year
and the ensuing fiscal years'' and inserting
``all fiscal years''.
(3) Social security levels.--Section 311(a)(3) of such Act
is amended by--
(A) striking ``for the first fiscal year'' and
inserting ``each fiscal year in the biennium''; and
(B) striking ``that fiscal year and the ensuing
fiscal years'' and inserting ``all fiscal years''.
(l) MDA Point of Order.--Section 312(c) of the Congressional Budget
Act of 1974 (2 U.S.C. 643) is amended--
(1) by striking ``for a fiscal year'' and inserting ``for a
biennium'';
(2) in paragraph (1), by striking ``first fiscal year'' and
inserting ``either fiscal year in the biennium'';
(3) in paragraph (2), by striking ``that fiscal year'' and
inserting ``either fiscal year in the biennium''; and
(4) in the matter following paragraph (2), by striking
``that fiscal year'' and inserting ``the applicable fiscal
year''.
SEC. 303. AMENDMENTS TO TITLE 31, UNITED STATES CODE.
(a) Definition.--Section 1101 of title 31, United States Code, is
amended by adding at the end thereof the following new paragraph:
``(3) `biennium' has the meaning given to such term in
paragraph (11) of section 3 of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.
(b) Budget Contents and Submission to Congress.--
(1) Schedule.--The matter preceding paragraph (1) in
section 1105(a) of title 31, United States Code, is amended to
read as follows:
``(a) On or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 300(b) of the
Congressional Budget Act of 1974), beginning with the One Hundred
Seventh Congress, the President shall transmit to Congress, the budget
for the biennium beginning on October 1 of such calendar year. The
budget transmitted under this subsection shall include a budget message
and summary and supporting information. The President shall include in
each budget the following:''.
(2) Expenditures.--Section 1105(a)(5) of title 31, United
States Code, is amended by striking ``the fiscal year for which
the budget is submitted and the 4 fiscal years after that
year'' and inserting ``each fiscal year in the biennium for
which the budget is submitted and in the succeeding 4 years''.
(3) Receipts.--Section 1105(a)(6) of title 31, United
States Code, is amended by striking ``the fiscal year for which
the budget is submitted and the 4 fiscal years after that
year'' and inserting ``each fiscal year in the biennium for
which the budget is submitted and in the succeeding 4 years''.
(4) Balance statements.--Section 1105(a)(9)(C) of title 31,
United States Code, is amended by striking ``the fiscal year''
and inserting ``each fiscal year in the biennium''.
(5) Functions and activities.--Section 1105(a)(12) of title
31, United States Code, is amended in subparagraph (A), by
striking ``the fiscal year'' and inserting ``each fiscal year
in the biennium''.
(6) Allowances.--Section 1105(a)(13) of title 31, United
States Code, is amended by striking ``the fiscal year'' and
inserting ``each fiscal year in the biennium''.
(7) Allowances for uncontrolled expenditures.--Section
1105(a)(14) of title 31, United States Code, is amended by
striking ``that year'' and inserting ``each fiscal year in the
biennium for which the budget is submitted''.
(8) Tax expenditures.--Section 1105(a)(16) of title 31,
United States Code, is amended by striking ``the fiscal year''
and inserting ``each fiscal year in the biennium''.
(9) Future years.--Section 1105(a)(17) of title 31, United
States Code, is amended--
(A) by striking ``the fiscal year following the
fiscal year'' and inserting ``each fiscal year in the
biennium following the biennium'';
(B) by striking ``that following fiscal year'' and
inserting ``each such fiscal year''; and
(C) by striking ``fiscal year before the fiscal
year'' and inserting ``biennium before the biennium''.
(10) Prior year outlays.--Section 1105(a)(18) of title 31,
United States Code, is amended--
(A) by striking ``the prior fiscal year'' and
inserting ``each of the 2 most recently completed
fiscal years,'';
(B) by striking ``for that year'' and inserting
``with respect to those fiscal years''; and
(C) by striking ``in that year'' and inserting ``in
those fiscal years''.
(11) Prior year receipts.--Section 1105(a)(19) of title 31,
United States Code, is amended--
(A) by striking ``the prior fiscal year'' and
inserting ``each of the 2 most recently completed
fiscal years'';
(B) by striking ``for that year'' and inserting
``with respect to those fiscal years''; and
(C) by striking ``in that year'' each place it
appears and inserting ``in those fiscal years''.
(c) Estimated Expenditures of Legislative and Judicial Branches.--
Section 1105(b) of title 31, United States Code, is amended by striking
``each year'' and inserting ``each even-numbered year''.
(d) Recommendations To Meet Estimated Deficiencies.--Section
1105(c) of title 31, United States Code, is amended--
(1) by striking ``the fiscal year for'' the first place it
appears and inserting ``each fiscal year in the biennium for'';
(2) by striking ``the fiscal year for'' the second place it
appears and inserting ``each fiscal year of the biennium, as
the case may be,''; and
(3) by striking ``that year'' and inserting ``for each year
of the biennium''.
(e) Capital Investment Analysis.--Section 1105(e)(1) of title 31,
United States Code, is amended by striking ``ensuing fiscal year'' and
inserting ``biennium to which such budget relates''.
(f) Supplemental Budget Estimates and Changes.--
(1) In general.--Section 1106(a) of title 31, United States
Code, is amended--
(A) in the matter preceding paragraph (1), by--
(i) striking ``Before July 16 of each
year,'' and inserting ``Before February 15 of
each even numbered year,''; and
(ii) striking ``fiscal year'' and inserting
``biennium'';
(B) in paragraph (1), by striking ``that fiscal
year'' and inserting ``each fiscal year in such
biennium'';
(C) in paragraph (2), by striking ``4 fiscal years
following the fiscal year'' and inserting ``4 fiscal
years following the biennium''; and
(D) in paragraph (3), by striking ``fiscal year''
and inserting ``biennium''.
(2) Changes.--Section 1106(b) of title 31, United States
Code, is amended by--
(A) striking ``the fiscal year'' and inserting
``each fiscal year in the biennium'';
(B) striking ``April 11 and July 16 of each year''
and inserting ``February 15 of each even-numbered
year''; and
(C) striking ``July 16'' and inserting ``February
15 of each even-numbered year.''.
(g) Current Programs and Activities Estimates.--
(1) In general.--Section 1109(a) of title 31, United States
Code, is amended--
(A) by striking ``On or before the first Monday
after January 3 of each year (on or before February 5
in 1986)'' and inserting ``At the same time the budget
required by section 1105 is submitted for a biennium'';
and
(B) by striking ``the following fiscal year'' and
inserting ``each fiscal year of such period''.
(2) Joint economic committee.--Section 1109(b) of title 31,
United States Code, is amended by striking ``March 1 of each
year'' and inserting ``within 6 weeks of the President's budget
submission for each odd-numbered year (or, if applicable, as
provided by section 300(b) of the Congressional Budget Act of
1974)''.
(h) Year-Ahead Requests for Authorizing Legislation.--Section 1110
of title 31, United States Code, is amended by--
(1) striking ``May 16'' and inserting ``March 31''; and
(2) striking ``year before the year in which the fiscal
year begins'' and inserting ``calendar year preceding the
calendar year in which the biennium begins''.
SEC. 304. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATIONS
ACTS.
Section 105 of title 1, United States Code, is amended to read as
follows:
``Sec. 105. Title and style of appropriations Acts
``(a) The style and title of all Acts making appropriations for the
support of the Government shall be as follows: `An Act making
appropriations (here insert the object) for each fiscal year in the
biennium of fiscal years (here insert the fiscal years of the
biennium).'.
``(b) All Acts making regular appropriations for the support of the
Government shall be enacted for a biennium and shall specify the amount
of appropriations provided for each fiscal year in such period.
``(c) For purposes of this section, the term `biennium' has the
same meaning as in section 3(11) of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.
SEC. 305. MULTIYEAR AUTHORIZATIONS.
(a) In General.--Title III of the Congressional Budget Act of 1974
is amended by adding at the end the following new section:
``authorizations of appropriations
``Sec. 319. (a) Point of Order.--It shall not be in order in the
House of Representatives or the Senate to consider--
``(1) any bill, joint resolution, amendment, motion, or
conference report that authorizes appropriations for a period
of less than 2 fiscal years, unless the program, project, or
activity for which the appropriations are authorized will
require no further appropriations and will be completed or
terminated after the appropriations have been expended; and
``(2) in any odd-numbered year, any authorization or
revenue bill or joint resolution until Congress completes
action on the biennial budget resolution, all regular biennial
appropriations bills, and all reconciliation bills.
``(b) Applicability.--In the Senate, subsection (a) shall not apply
to--
``(1) any measure that is privileged for consideration
pursuant to a rule or statute;
``(2) any matter considered in Executive Session; or
``(3) an appropriations measure or reconciliation bill.''.
(b) Amendment to Table of Contents.--The table of contents set
forth in section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by adding after the item relating to
section 318 the following new item:
``Sec. 319. Authorizations of appropriations.''.
SEC. 306. GOVERNMENT PLANS ON A BIENNIAL BASIS.
(a) Strategic Plans.--Section 306 of title 5, United States Code,
is amended--
(1) in subsection (a), by striking ``September 30, 1997''
and inserting ``September 30, 2005'';
(2) in subsection (b)--
(A) by striking ``at least every three years'' and
inserting ``at least every four years''; and
(B) by striking ``five years forward'' and
inserting ``six years forward''; and
(3) in subsection (c), by inserting a comma after
``section'' the second place it appears and adding ``including
a strategic plan submitted by September 30, 2005 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 2006, a biennial''.
(c) Performance Plans.--Section 1115 of title 31, United States
Code, is amended--
(1) in subsection (a)--
(A) in the matter before paragraph (1)--
(i) by striking ``section 1105(a)(29)'' and
inserting ``section 1105(a)(28)''; and
(ii) by striking ``an annual'' and
inserting ``a biennial'';
(B) in paragraph (1), by inserting after ``program
activity'' the following: ``for both years 1 and 2 of
the biennial plan'';
(C) in paragraph (5), by striking ``and'' after the
semicolon;
(D) in paragraph (6), by striking the period and
inserting a semicolon; and inserting ``and'' after the
inserted semicolon; and
(E) by adding after paragraph (6) the following:
``(7) cover a 2-year period beginning with the first fiscal
year of the next biennial budget cycle.'';
(2) in subsection (d), by striking ``annual'' and inserting
``biennial''; and
(3) in paragraph (6) of subsection (f), by striking
``annual'' and inserting ``biennial''.
(d) Managerial Accountability and Flexibility.--Section 9703 of
title 31, United States Code, relating to managerial accountability, is
amended--
(1) in subsection (a)--
(A) in the first sentence by striking ``annual'';
and
(B) by striking ``section 1105(a)(29)'' and
inserting ``section 1105(a)(28)''; and
(2) in subsection (e)--
(A) in the first sentence by striking ``one or''
before ``years'';
(B) in the second sentence by striking ``a
subsequent year'' and inserting ``for a subsequent 2-
year period''; and
(C) in the third sentence by striking ``three'' and
inserting ``four''.
(e) Pilot Projects for Performance Budgeting.--Section 1119 of
title 31, United States Code, is amended--
(1) in paragraph (1) of subsection (d), by striking
``annual'' and inserting ``biennial''; and
(2) in subsection (e), by striking ``annual'' and inserting
``biennial''.
(f) Strategic Plans.--Section 2802 of title 39, United States Code,
is amended--
(1) in subsection (a), by striking ``September 30, 1997''
and inserting ``September 30, 2003'';
(2) in subsection (b), by striking ``at least every three
years'' and inserting ``at least every 4 years'';
(3) by striking ``five years forward'' and inserting ``six
years forward''; and
(4) in subsection (c), by inserting a comma after
``section'' the second place it appears and inserting
``including a strategic plan submitted by September 30, 2005
meeting the requirements of subsection (a)''.
(g) Performance Plans.--Section 2803(a) of title 39, United States
Code, is amended--
(1) in the matter before paragraph (1), by striking ``an
annual'' and inserting ``a biennial'';
(2) in paragraph (1), by inserting after ``program
activity'' the following: ``for both years 1 and 2 of the
biennial plan'';
(3) in paragraph (5), by striking ``and'' after the
semicolon;
(4) in paragraph (6), by striking the period and inserting
``; and''; and
(5) by adding after paragraph (6) the following:
``(7) cover a 2-year period beginning with the first fiscal
year of the next biennial budget cycle.''.
(h) Committee Views of Plans and Reports.--Section 301(d) of the
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the
end ``Each committee of the Senate or the House of Representatives
shall review the strategic plans, performance plans, and performance
reports, required under section 306 of title 5, United States Code, and
sections 1115 and 1116 of title 31, United States Code, of all agencies
under the jurisdiction of the committee. Each committee may provide its
views on such plans or reports to the Committee on the Budget of the
applicable House.''.
(i) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on March 1, 2007.
(2) Agency actions.--Effective on and after the date of
enactment of this Act, each agency shall take such actions as
necessary to prepare and submit any plan or report in
accordance with the amendments made by this Act.
SEC. 307. BIENNIAL APPROPRIATIONS BILLS.
(a) In General.--Title III of the Congressional Budget Act of 1974
(2 U.S.C. 631 et seq.) is amended by adding at the end the following:
``consideration of biennial appropriations bills
``Sec. 320. It shall not be in order in the House of
Representatives or the Senate in any odd-numbered year to consider any
regular bill providing new budget authority or a limitation on
obligations under the jurisdiction of any of the subcommittees of the
Committees on Appropriations for only the first fiscal year of a
biennium, unless the program, project, or activity for which the new
budget authority or obligation limitation is provided will require no
additional authority beyond 1 year and will be completed or terminated
after the amount provided has been expended.''.
(b) Amendment to Table of Contents.--The table of contents set
forth in section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by adding after the item relating to
section 319 the following new item:
``Sec. 320. Consideration of biennial appropriations bills.''.
SEC. 308. REPORT ON TWO-YEAR FISCAL PERIOD.
Not later than 180 days after the date of enactment of this
subpart, the Director of OMB shall--
(1) determine the impact and feasibility of changing the
definition of a fiscal year and the budget process based on
that definition to a 2-year fiscal period with a biennial
budget process based on the 2-year period; and
(2) report the findings of the study to the Committees on
the Budget of the House of Representatives and the Senate.
SEC. 309. EFFECTIVE DATE.
(a) In General.--Except as provided in sections 306 and 308 and
subsection (b), this title and the amendments made by this title shall
take effect on January 1, 2007, and shall apply to budget resolutions
and appropriations for the biennium beginning with fiscal year 2008.
(b) Authorizations for the Biennium.--For purposes of
authorizations for the biennium beginning with fiscal year 2006, the
provisions of this title and the amendments made by this title relating
to 2-year authorizations shall take effect January 1, 2005.
TITLE IV--COMMISSION ON FEDERAL BUDGET CONCEPTS
SEC. 401. ESTABLISHMENT OF COMMISSION ON FEDERAL BUDGET CONCEPTS.
There is established a commission to be known as the Commission on
Federal Budget Concepts (referred to in this title as the
``Commission'').
SEC. 402. POWERS AND DUTIES OF COMMISSION.
(a) Duties of the Commission.--
(1) In general.--The duties of the Commission shall
include--
(A) a review of the 1967 report of the President's
Commission on Budget Concepts and assessment of the
implementation of the recommendations of that report;
(B) identification and evaluation of the structure,
concepts, classifications, and bases of accounting of
the Federal budget;
(C) identification of any applicable general
accounting principles and practices in the private
sector and evaluation of their value to budget
practices in the Federal sector; and
(D) a report that shall include recommendations for
modifications to the structure, concepts,
classifications, and bases of accounting of the Federal
budget that would enhance the usefulness of the budget
for public policy and financial planning.
(2) Specific areas of consideration.--Specific areas for
consideration by the Commission shall include the following:
(A) Should part ownership by the Government be
sufficient to make an entity Federal and to include it
in the budget?
(B) When is Federal control of an entity, including
control exercised through Federal regulations,
sufficient to cause it to be included in the budget?
(C) Are privately owned assets under long-term
leases to the Federal Government effectively purchased
by the Government during the lease period?
(D) Should there be an ``off-budget'' section of
the budget? How should the Federal Government
differentiate between spending and receipts?
(E) Should the total costs of refundable tax
credits belong on the spending side of the budget?
(F) When should Federal Reserve earnings be
reported as receipts or offsetting receipts (negative
spending) in the net interest portion of the budget?
(G) What is a ``user fee'' and under what
circumstances is it properly an offset to spending or a
governmental receipt? What uses do trust funds have?
(H) Do trust fund balances provide misleading
information? Do the roughly 200 trust funds add clarity
or confusion to the budget process?
(I) Are there better ways than trust fund
accounting to identify long-term liabilities?
(J) Should accrual budgetary accounting be adopted
for Federal retirement, military retirement, or Social
Security and other entitlements?
(K) Are off-budget accounts suitable for capturing
accruals in the budget?
(L) What is the appropriate budgetary treatment
of--
(i) purchases and sales of financial
assets, including equities, bonds, and foreign
currencies;
(ii) emergency spending;
(iii) the cost of holding fixed assets
(cost of capital);
(iv) sales of physical assets; and
(v) seigniorage on coins and currency?
(M) When policy changes have strong but indirect
feedback effects on revenues and other aggregates,
should they be reported in budget estimates?
(N) How should the policies that are one-sided bets
on economic events (probabilistic scoring) be
represented in the budget?
(b) Powers of the Commission.--
(1) Conduct of business.--The Commission may hold hearings,
take testimony, receive evidence, and undertake such other
activities necessary to carry out its duties.
(2) Access to information.--The Commission may secure
directly from any department or agency of the United States
information necessary to carry out its duties. Upon request of
the Chair of the Commission, the head of that department or
agency shall furnish that information to the Commission.
(3) Postal service.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the United States.
SEC. 403. MEMBERSHIP.
(a) Membership.--The Commission shall be composed of 12 members as
follows:
(1) Three members appointed by the chairman of the
Committee on the Budget of the Senate.
(2) Three members appointed by the chairman of the
Committee on the Budget of the House of Representatives.
(3) Three members appointed by the ranking member of the
Committee on the Budget of the Senate.
(4) Three members appointed by the ranking member of the
Committee on the Budget of the House of Representatives.
(b) Qualifications and Term.--
(1) Qualifications.--Members appointed to the Commission
pursuant to subsection (a) shall--
(A) have expertise and experience in the fields or
disciplines related to the subject areas to be
considered by the Commission; and
(B) not be Members of Congress.
(2) Term of appointment.--The term of an appointment to the
Commission shall be for the life of the Commission.
(3) Chair and vice chair.--The Chair and Vice Chair may be
elected from among the members of the Commission. The Vice
Chair shall assume the duties of the Chair in the Chair's
absence.
(c) Meetings; Quorum; and Vacancies.--
(1) Meetings.--The Commission shall meet at least once a
month on a day to be decided by the Commission. The Commission
may meet at such other times at the call of the Chair or of a
majority of its voting members. The meetings of the Commission
shall be open to the public, unless by public vote, the
Commission shall determine to close a meeting or any portion of
a meeting to the public.
(2) Quorum.--A majority of the voting membership shall
constitute a quorum of the Commission, except that 3 or more
voting members may conduct hearings.
(3) Vacancies.--A vacancy on the Commission shall be filled
in the same manner in which the original appointment was filled
under subsection (a).
(d) Compensation and Expenses.--Members of the Commission shall
serve without pay for their service on the Commission, but may receive
travel expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of chapter 57
of title 5, United States Code.
SEC. 404. STAFF AND SUPPORT SERVICES.
(a) Staff.--With the advance approval of the Commission, the
executive director may appoint such personnel as is appropriate. The
staff of the Commission shall be appointed without regard to political
affiliation and without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service, and may
be paid without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classifications and General
Schedule pay rates.
(b) Executive Director.--The Chairman shall appoint an executive
director, who shall be paid the rate of basic pay for level II of the
Executive Schedule.
(c) Experts and Consultants.--With the advance approval of the
Commission, the executive director may procure temporary and
intermittent services under section 3109(b) of title 5, United States
Code.
(d) Technical and Administrative Assistance.--Upon the request of
the Commission--
(1) the head of any agency, office, or establishment within
the executive or legislative branches of the United States
shall provide, without reimbursement, such technical assistance
as the Commission determines is necessary to carry out its
duties; and
(2) the Administrator of General Services shall provide, on
a reimbursable basis, such administrative support services as
the Commission may require.
(e) Detail of Federal Personnel.--Upon the request of the
Commission, the head of an agency, office, or establishment in the
executive or legislative branch of the United States is authorized to
detail, without reimbursement, any of the personnel of that agency,
office, or establishment to the Commission to assist the Commission in
carrying out its duties. Any such detail shall not interrupt or
otherwise affect the employment status or privileges of that employee.
(f) CBO.--The Director of the Congressional Budget Office shall
provide the Commission with its latest research on the accuracy of its
past budget and economic projections as compared to those of the Office
of Management and Budget and, if possible, those of private sector
forecasters. The Commission shall work with the Directors of the
Congressional Budget Office and the Office of Management and Budget in
their efforts to explain the factors affecting the accuracy of budget
projections.
SEC. 405. REPORT.
Not later than July 1, 2006, the Commission shall transmit a report
to the President and to each House of Congress. The report shall
contain a detailed statement of the findings and conclusions of the
Commission, together with its recommendations for such legislative or
administrative actions as it considers appropriate. No finding,
conclusion, or recommendation may be made by the Commission unless
approved by a majority of those voting, a quorum being present. At the
request of any Commission member, the report shall include that
member's dissenting findings, conclusions, or recommendations.
SEC. 406. TERMINATION.
The Commission shall terminate 30 days after the date of
transmission of the report required in section 405.
SEC. 407. FUNDING.
There are authorized to be appropriated not more than $1,000,000 to
carry out this title. Sums so appropriated shall remain available until
expended.
<all>
Introduced in Senate
Read twice and referred to the Committee on the Budget.
Sponsor introductory remarks on measure. (CR S2422-2424)
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