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 99 STAT. 1060 98 Stat. 2324.

PUBLIC LAW 99-177—DEC. 12, 1985

agency for purposes of section 1105 of title 31, United States Code, and for purposes of this Act. "MEMBER USER GROUP

2 USC 656.

"SEC. 407. The Speaker of the House of Representatives, after consulting with the Minority Leader of the House, may appoint a Member User Group for the purpose of reviewing budgetary scorekeeping rules and practices of the House and advising the Speaker from time to time on the effect and impact of such rules and practices.".

Subpart III—Additional Provisions to Improve Budget Procedures SEC. 221. CONGRESSIONAL BUDGET OFFICE.

2 USC 602.

Report.

(a) REPORTING DATE.—Section 202(fKl) of the Congressional Budget Act of 1974 is amended by striking out "April 1" in the first sentence and inserting in lieu thereof "February 15". Qa) ADDITIONAL REPORTING REQUIREMENT.—Section 202(f) of such Act is further amended by adding at the end thereof the following new paragraph: "(3) On or before January 15 of each year, the Director, after consultation with the appropriate committees of the House of Representatives and Senate, shall submit to the Congress a report listing (A) all programs and activities funded during the fiscal year ending September 30 of that calendar year for which authorizations for appropriations have not been enacted for that fiscal year, and (B) all programs and activities for which authorizations for appropriations have been enacted for the fiscal year ending September 30 of that calendar year, but for which no authorizations for appropriations have been enacted for the fiscal year beginning October 1 of that calendar year.". (c) STUDIES.—Section 202 of such Act is further amended by adding at the end thereof the following new subsection: "(h) STUDIES.—The Director shall conduct continuing studies to enhance comparisons of budget outlays, credit authority, and tax expenditures.'. SEC. 222. CURRENT SERVICES BUDGET FOR CONGRESSIONAL BUDGET PURPOSES.

(a) CURRENT SERVICES BUDGET.—The first sentence of section 1109(a) of title 31, United States Code, is amended by striking out "Before November 11 of each year" and inserting in lieu thereof "On or before the first Monday after January 3 of each year (on or before February 5 in 1986)". Oa) JOINT ECONOMIC COMMITTEE REVIEW.—Section 1109(b) of title 31, United States Code, is amended by striking out "January 1" and inserting in lieu thereof "March 1". SEC. 223. STUDY OF OFF-BUDGET AGENCIES.

Repeal.

Section 606 of the Congressional Budget Act of 1974 is repealed

2 USC 661. SEC. 224. CHANGES IN FUNCTIONAL CATEGORIES.

Section 1104(c) of title 31, United States Code, is amended by adding at the end thereof the following new sentence: "Committees

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99 STAT. 1061

of the House of Representatives and Senate shall receive prompt notification of all such changes.". SEC. 225. JURISDICTION OF COMMITTEE ON GOVERNMENT OPERATIONS.

Clause l(j) of Rule X of the Rules of the House of Representatives is amended by inserting after item (5) the following new item: "(6) Measures providing for off-budget treatment of Federal agencies or programs.'. SEC. 226. CONTINUING STUDY OF CONGRESSIONAL BUDGET PROCESS.

Clause 3 of Rule X of the Rules of the House of Representatives is amended by adding at the end thereof the following: "(i) The Committee on Rules shall have the function of reviewing Report. and studying, on a continuing bsisis, the congressional budget process, and the committee shall, from time to time, report its findings and recommendations to the House.". SEC. 227. EARLY ELECTION OF COMMITTEES OF THE HOUSE.

Clause 6(a)(1) of Rule X of the Rules of the House of Representatives is amended by striking out "at" and inserting in lieu thereof "within the seventh calendar day beginning after", and by adding at the end thereof the following new sentence: "It shall always be in order to consider resolutions recommended by the respective party caucuses to change the composition of standing committees.". SEC. 228. RESCISSIONS AND TRANSFERS IN APPROPRIATION BILLS.

(a) RESCISSIONS.—Clause 2(b) of Rule XXI of the Rules of the House of Representatives is amended by inserting before the period at the end thereof the following: ", and except rescissions of appropriations contained in appropriation Acts". (b) TRANSFERS.—Clause 6 of Rule XXI of the Rules of the House of Representatives is amended by inserting before the period at the end thereof the following: ", and shall not apply to transfers of unexpended balances within the department or agency for which they were originally appropriated, reported by the Committee on Appropriations".

Subpart IV—Technical and Conforming Amendments SEC. 231. TABLE OF CONTENTS.

The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 with respect to title III is amended to read as follows: "TITLE III—CONGRESSIONAL BUDGET PROCESS "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec.

300. Timetable. 301. Annual adoption of concurrent resolution on the budget. 302. Committee allocations. 303. Concurrent resolution on the budget must be adopted before legislation providing new budget authority, new spending authority, new credit authority or changes in revenues or the public debt limit is considered. 304. Permissible revisions of concurrent resolutions on the budget. 305. Procedures relating to consideration of concurrent resolutions on the budget. 306. Legislation dealing with congressional budget must be handled by budget committees. 307. House committee action on all appropriation bills to be completed by June 10. 308. Reports, summaries, and projections of congressional budget actions. 309. House approval of regular appropriation bills.

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 99 STAT. 1062

PUBLIC LAW 99-177—DEC. 12, 1985

"Sec. 310. Reconciliation. "Sec. 311. New budget authority, new spending authority, and revenue legislation must be within appropriate levels.". SEC. 232. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS. (a) 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— (1) by striking out the item relating to section 402 and inserting in lieu thereof the following new item: "Sec. 402. Legislation providing new credit authority.";

(2) by inserting after the item relating to section 404 the following new items: "Sec. 405. Study by the General Accounting Office of forms of Federal financial commitment that are not reviewed annually by Congress. "Sec. 406. Off-budget agencies, programs, and activities. "Sec. 407. Member user group."; and

2 USC 622.

(3) by striking out the item relating to section 606. 0?) TECHNICAL AMENDMENT.—Paragraph (4) of section 3 of the Congressional Budget and Impoundment Control Act of 1974 is amended— (1) by adding "and" after the semicolon at the end of subparagraph (A); (2) by striking out subparagraph (B); and (3) by redesignating subparagraph (C) as subparagraph (B). (c) TECHNICAL AMENDMENT.—Subparagraph (2) of clause 40?) of rule X of the Rules of the House of Representatives is amended by striking out "first concurrent resolution" and inserting in lieu thereof "concurrent resolutions". (d) TECHNICAL AMENDMENT.—Clause 4(g) of rule X of the Rules of the House of Representatives is amended by striking out "March 15" and inserting in lieu thereof "February 25". (e) TECHNICAL AMENDMENT.—Clause 2(1)(1) of rule XI of the Rules of the House of Representatives is amended— (1) by striking out "(except as provided in subdivision (C))" in subparagraph (A) thereof; and (2) by repealing subparagraph (C) thereof. (f) TECHNICAL AMENDMENT.—Clause 2(1)(3)(B) of rule XI of the Rules of the House of Representatives is amended by inserting "(1)" after "section 308(a)", and by striking out "new budget authority or new or increased tax expenditures" and inserting in lieu thereof "new budget authority (other than continuing appropriations), new spending authority described in section 401(c)(2) of such Act, new credit authority, or an increase or decrease in revenues or tax expenditures". (g) TECHNICAL AMENDMENT.—Rule XLIX of the Rules of the House of Representatives is amended by striking out ", 304, or 310" in clause 1 and inserting in lieu thereof "or 304". (h) TECHNICAL AMENDMENT.—Clause 1(e)(2) of Rule X of the Rules of the House of Representatives is amended by inserting before the period at the end thereof the following: ", and any resolution pursuant to section 2540t)) of the Balanced Budget and Emergency Deficit Control Act of 1985.

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99 STAT. 1063

PART B—BUDGET SUBMITTED BY THE PRESIDENT SEC. 241. SUBMISSION OF PRESIDENT'S BUDGET; MAXIMUM DEFICIT AMOUNT MAY NOT BE EXCEEDED.

(a) SUBMISSION OF PRESIDENT'S BUDGET.—The first sentence of section 1105(a) of title 31, United States Code, is amended by strik- 98 Stat. 2324. ing out "During the first 15 days of each regular session of Congress" and inserting in lieu thereof the following: "On or before the first Monday after January 3 of each year (or on or before February 5 in 1986)". 03) MAXIMUM DEFICIT AMOUNT MAY NOT B E EXCEEDED.—Section

1105 of title 31, United States Code, is amended by adding at the end thereof the following new subsection: "(f)(1) The budget transmitted pursuant to subsection (a) for a fiscal year shall be prepared on the basis of the best estimates then available, in such a manner as to ensure that the deficit for such fiscal year shall not exceed the maximum deficit amount for such fiscal year as determined under paragraph (7) of section 3 of the Congressional Budget and Impoundment Control Act of 1974. "(2) The deficit set forth in the budget so transmitted for any fiscal year shall not exceed the maximum deficit amount for such fiscal year as determined under paragraph (7) of section 3 of the Congressional Budget and Impoundment Control Act of 1974, with budget outlays and Federal revenues at such levels as the President may consider most desirable and feasible. "(3) Paragraphs (1) and (2) shall not apply if a declaration of war by the Congress is in effect.".

Ante, p. 1039.

SEC. 242. SUPPLEMENTAL BUDGET ESTIMATES AND CHANGES.

(a) CHANGE IN DATE OF SUBMISSION.—The first sentence of section ll6(b) of title 31, United States Code, is amended by striking out "April 11 and". (b) REVISIONS AND SUPPLEMENTAL SUMMARIES.—Section 1106

of

title 31 of such Code is further amended by adding at the end thereof the following new subsection: "(c) Subsection (f) of section 1105 shall apply to revisions and Supra. supplemental summaries submitted under this section to the same extent that such subsection applies to the budget submitted under section 1105(a) to which such revisions and summaries relate.".

PART C—EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM DEFICIT AMOUNT SEC. 251. REPORTING OF EXCESS DEFICITS. (a) INITIAL ESTIMATES, DETERMINATIONS, AND REPORT BY O M B AND

CBO.(1) ESTIMATES AND DETERMINATIONS.—The Director of the Office of Management and Budget and the Director of the Congressional Budget Office (in this part referred to as the "Directors") shall with respect to each fiscal year— (A) estimate the budget base levels of total revenues and budget outlays that may be anticipated for such fiscal year as of August 15 of the calendar year in which such fiscal

2 USC 901.

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 99 STAT. 1064

PUBLIC LAW 99-177—DEC. 12, 1985 year begins (or as of January 10, 1986, in the case of the fiscal year 1986), (B) determine whether the projected deficit for such fiscal year will exceed the maximum deficit amount for such fiscal year and whether such deficit excess will be greater than $10,000,000,000 (zero in the case of fiscal years 1986 and 1991), and (C) estimate the rate of real economic growth that will occur during such fiscal year, the rate of real economic growth that will occur during each quarter of such fiscal year, and the rate of real economic growth that will have occurred during each of the last two quarters of the preceding fiscal year. (2) REPORT.—The Directors jointly shall report to the Comptroller General on August 20 of the calendar year in which such fiscal year begins (or on January 15, 1986, in the case of the fiscal year 1986), estimating the budget base levels of total revenues and total budget outlays for such fiscal year, identifying the amount of any deficit excess for such fiscal year, stating whether such excess is greater than $10,000,000,000 (zero in the case of fiscal years 1986 and 1991), specifying the estimated rate of real economic growth for such fiscal year, for each quarter of such fiscal year, and for each of the last two quarters of the preceding fiscal year, indicating whether the estimate includes two or more consecutive quarters of negative real economic growth, and specifying (if the excess is greater than $10,000,000,000, or zero in the case of fiscal years 1986 and 1991), by account, for non-defense programs, and by account and programs, projects, and activities within each account, for defense programs, the base from which reductions are taken and the amounts and percentages by which such accounts must be reduced during such fiscal year, in accordance with the succeeding provisions of this part, in order to eliminate such excess. (3)

Post, pp. 1082, 1086, 1092.

DETERMINATION

OF

REDUCTIONS.—The

amounts

and

percentages by which such accounts must be reduced during a fiscal year shall be determined as follows: (A)(i) If the deficit excess for the fiscal year is greater than $10,000,000,000 (zero in the case of fiscal years 1986 and 1991), such deficit excess shall be divided into halves. (ii) In the case of fiscal year 1986, the amount of such excess— (I) shall be multiplied by seven twelfths before being divided into halves in accordance with clause (i), and (II) shall not exceed $11,700,000,000. (B) Subject to the exemptions, exceptions, limitations, special rules, and definitions set forth in this section and in sections 255, 256, and 257, the reductions necessary to eliminate one-half of the deficit excess for the fiscal year (as adjusted under subparagraph (A)(ii) in the case of fiscal year 1986) shall be made in outlays under accounts within major functional category 050 (in this part referred to as outlays under "defense programs"), and the reductions necessary to eliminate the other half of the deficit excess (or the adjusted deficit excess, in the case of fiscal year 1986) shall be made in outlays under other accounts of the Federal Government (in this part referred to as outlays under "non-defense programs").

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(C)(i) The total amount by which outlays for automatic spending increases scheduled to take effect during the fiscal year are to be reduced shall be determined in accordance with clause (ii) of this subparagraph. (ii) Each such automatic spending increase shall be reduced— (I) to zero (a uniform percentage reduction of 100 percent), or (II) by a uniform percentsige reduction of less than 100 percent calculated in a manner to reduce total outlays for the fiscal year by one-half of the deficit excess (or the adjusted deficit excess, in the case of fiscal year 1986), if the elimination of all such increases would reduce total outlays for the fiscal year by more than one-half of the deficit excess (or the adjusted deficit excess, in the case of fiscal year 1986) for the fiscal year. (D) The total amount of the outlay reductions determined under subparagraph (C) shall be divided into two amounts: (i) an amount equal to the outlay reductions attributable to programs specified in subparagraph (A) of section 257(1); and (ii) an amount equal to the outlay reductions attributable to p r c ^ a m s specified in subparagraph (B) of section 257(1). (E)(i) For purposes of subparagraph (B), one-half of the amount of the reductions determined under clause (i) of subparagraph (D) shall be credited as reductions in outlays under defense programs, and the total emiount of reductions in outlays under defense programs required under subparagraph (B) shall be reduced accordingly. (ii) Sequestration of new budget authority and unobligated balances to achieve the remaining reductions in outlays under defense programs required under subparagraph (B) shall be determined as provided in subsection (d). (F)(i) For purposes of subparagraph (B)— (I) one-half of the amount of the reductions determined under clause (i) of subparagraph (D), and (II) the amount of the reductions determined under clause (ii) of subparagraph (D), shall be credited as reductions in outlays under non-defense programs, and the total amount of reductions in outlays under non-defense programs required under subparagraph (B) shall be reduced accordingly. (ii) The maximum reduction permissible for each program to which an exception, limitation, or special rule set forth in subsection (c) or (f) of section 256 applies shall be determined, and the total amount of reductions in outlays under non-defense programs required under subparagraph (B) shall be reduced by the amount of the reduction determined with respect to each such program. (iiiXD Except as provided in subclause (II), the maximum reduction permissible for each of the programs to which the special rules set forth in sections 256(d) and 256(k) apply shall be determined, and the total amount of outlays under non-defense programs required under subparagraph (B)

Post, p. 1092.

Defense and national security.

Post, p. 1086.

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 99 STAT. 1066

Ante, p. 1056.

Post, p. 1072.

Report.

Post, p. 1092.

Post, p. 1086.

PUBLIC LAW 99-177—DEC. 12, 1985 shall be reduced by the amount of the maximum reductions so determined. (II) If the maximum reduction determined in accordance with subclause (I) with respect to the programs to which that subclause relates would reduce outlays for such programs by an amount in excess of the remaining amount of the reduction in outlays in non-defense programs required under subparagraph (B), outlays for such programs shall instead be reduced proportionately by such lesser percentage as will achieve such remaining required reductions. (iv)(I) Sequestrations and reductions under the remaining non-defense programs shall be applied on a uniform percentage basis so as to reduce new budget authority, new loan guarantee commitments, new direct loan obligations, obligation limitations, and spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974 to the extent necessary to achieve any remaining required outlay reductions. (II) For purposes of determining reductions under subclause (I), any reduction in outlays of the Commodity Credit Corporation under an order issued by the President under section 252 for a fiscal year, with respect to contracts entered into during that fiscal year, that will occur during the succeeding fiscal year, shall be credited as reductions in outlays for the fiscal year in which the order is issued. The determination of which accounts are within major functional category 050 and which are not, for purposes of subparagraph (B), shall be made by the Directors in a manner consistent with the budget submitted by the President for the fiscal year 1986; except that for such purposes no part of the accounts entitled "Federal Emergency Management Agency, Salaries and expenses (58-0100-0-1-999)" and "Federal Emergency Management Agency, Emergency management planning and assistance (58-0101-0-1-999)" shall be treated as being within functional category 050. (4) ADDITIONAL SPECIFICATIONS.—The report submitted under paragraph (2) must also specify (with respect to the fiscal year involved)— (A) the amount of the automatic spending increase (if any) which is scheduled to take effect in the case of each program providing for such increases, the amount and percentage by which such increase is to be reduced, the amount by which the deficit excess (as adjusted under paragraph (3)(A)(ii), in the case of fiscal year 1986) will be reduced as a result of the elimination or reduction of automatic spending increases (stated separately for increases under programs listed in subparagraph (A) of section 257(1) and increases under programs listed in subparagraph (B) of that section), and the amount (if any) of each such increase, stated in terms of percentage points, which will take effect after reduction under this part; (B) the amount of the savings (if any) to be achieved in the application of each of the special rules set forth in subsections (c) through (1) of section 256, along with a statement of (i) the new Federal matching rate resulting from the application of subsection (e) of that section, and (ii) the amount of the percentage reduction in payments to the

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99 STAT. 1067

States under section 204 of the Federal-State Extended Unemployment Compensation Act of 1970; and (C)(i) for defense programs, by account and by program, project, and activity within each account, the reduction (stated in terms of both percentage and amount) in new budget authority and unobligated balances, together with the estimated outlay reductions resulting therefrom; and (ii) for non-defense programs, by account, the reduction, stated in terms of both percentage and amount, in new budget authority, new loan guarantee commitments, new direct loan obligations, obligation limitations, and spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974, together with the estimated outlay reductions resulting therefrom.

26 USC 3304 note. Defense and national security.

Ante, p. 1056.

(5) BASIS FOR DIRECTORS' ESTIMATES, DETERMINATIONS, AND

SPECIFICATIONS.—The estimates, determinations, and specifications of the Directors under the preceding provisions of this subsection and under subsection (c)(1) shall utilize the budget base, criteria, and guidelines set forth in paragraph (6) and in sections 255, 256, and 257. In the event that the Directors are unable to agree on any items required to be set forth in the report, they shall avergige their differences to the extent necessary to produce a single, consistent set of data that achieves the required deficit reduction. The report of the Directors shall also indicate the amount initially proposed for each averaged item by each Director. (6) BUDGET BASE.—In computing the amounts and percentages by which accounts must be reduced during a fiscal year as set forth in any report required under this subsection for such fiscal year, the budget base shall be determined by— (A) assuming (subject to subparagraph (C)) the continuation of current law in the case of revenues and spending authority as defined in section 401(c)(2) of the Congression^ Budget Act of 1974; (B) assuming, in the case of all accounts to which subparagraph (A) does not apply, appropriations equal to the prior year's appropriations except to the extent that annual appropriations or continuing appropriations for the entire fiscal year have been enacted; (C) assuming that expiring provisions of law providing revenues and spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974 do expire, except that excise taxes dedicated to a trust fund and agricultural price support programs administered through the Commodity Credit Corporation are extended at current rates; and (D) assuming (i) that Federal pay adjustments for statutory pay systems (I) will be as recommended by the President, but (II) will in no case result in a reduction in the levels of pay in effect immediately before such adjustments; and (ii) that medicare spending levels for inpatient hospital services will be based upon the regulations most recently issued in final form or proposed by the Health Care Financing Administration pursuant to sections 1886(b)(3)(B), 1886(d)(3)(A), and 1886(e)(4) of the Social Security Act. Deferrals proposed under section 1013 of the Impoundment Control Act of 1974 during the period beginning October 1 of

Post, pp. 1082, 1086, 1092.

Ante, p. 1056.

98 Stat. 1075. 42 USC 1395ww. 2 USC 684.

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 99 STAT. 1068

Post, p. 1072.

PUBLIC LAW 99-177—DEC. 12, 1985 such fiscal year (or the date of the enactment of this joint resolution in the case of fiscal year 1986) and ending with the date on which the final order is issued under section 252(b) for such fiscal year (or February 1, 1986, in the case of fiscal year 1986) shall not be taken into account in determining such budget base.

(b) REPORT TO PRESIDENT AND CONGRESS BY COMPTROLLER GENERAL.— (1) REPORT TO BE BASED ON OMB-CBO REPORT.—The Comptroller

Post, pp. 1082, 1086, 1092.

General shall review and consider the report issued by the Directors for the fiscal year and, with due regard for the data, assumptions, and methodologies used in reaching the conclusions set forth therein, shall issue a report to the President and the Congress on August 25 of the calendar year in which such fiscal year begins (or on January 20, 1986, in the case of the fiscal year 1986), estimating the budget base levels of total revenues and total budget outlays for such fiscal year, identifying the amount of any deficit excess for such fiscal year (adjusted in accordance with subsection (a)(3)(A)(ii), in the case of fiscal year 1986), stating whether such deficit excess (or adjusted deficit excess, in the case of fiscal year 1986) will be greater than $10,000,000,000 (zero in the case of fiscal years 1986 and 1991), specifying the estimated rate of real economic growth for such fiscal year, for each quarter of such fiscal year, and for each of the last two quarters of the preceding fiscal year, indicating whether the estimate includes two or more consecutive quarters of negative economic growth, and specifying (if the excess is greater than $10,000,000,000, or zero in the case of fiscal years 1986 and 1991), by account, for non-defense programs, and by account and programs, projects, and activities within each account, for defense programs, the base from which reductions are taken and the amounts and percentages by which such accounts must be reduced during such fiscal year in order to eliminate such deficit excess (or adjusted deficit excess, in the case of fiscal year 1986). Such report shall be based on the estimates, determinations, and specifications of the Directors and shall utilize the budget base, criteria, and guidelines set forth in subsection (a)(6) and in sections 255, 256, and 257. (2) CONTENTS OF REPORT.—The report of the Comptroller General under this subsection shall— (A) provide for the determination of reductions in the manner specified in subsection (a)(3); and (B) contain estimates, determinations, and specifications for all of the items contained in the report submitted by the Directors under subsection (a). Such report shall explain fully any differences between the contents of such report and the report of the Directors. (c) REVISED ESTIMATES, DETERMINATIONS, AND REPORTS.— (1) REPORT BY OMB AND CBO.—On October 5 of the fiscal

year (except in the case of the fiscal year 1986), the Directors shall submit to the Comptroller General a revised report— (A) indicating whether and to what extent, as a result of laws enacted and regulations promulgated after the submission of their initial report under subsection (a), the excess deficit (adjusted in accordance with subsection (a)(3)(A)(ii), in the case of fiscal year 1986) identified in the report

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99 STAT. 1069

submitted under such subsection has been eliminated, reduced, or increased, and (B) adjusting the determinations made under subsection (a) to the extent necessary. The revised report submitted under this paragraph shall contain estimates, determinations, and specifications for all of the items contained in the initial report and authorized under subsection (d)(3)(D)(i) and shall be based on the same economic and technical assumptions, employ the same methodologies, and utilize the same definition of the budget base and the same criteria and guidelines as those used in the report submitted by the Directors under subsection (a) (except that subdivision (II) of paragraph (6)(D)(i) of such subsection shall not apply), and shall provide for the determination of reductions in the manner specified in subsection (a)(3). (2) REPORT BY COMPTROLLER GENERAL.—

(A) On October 10 of the fiscal year (except in the case of the fiscal year 1986), the Comptroller General shall submit to the President and the Congress a report revising the report submitted by the Comptroller General under subsection (b), adjusting the estimates, determinations, and specifications contained in that report to the extent necessary in the light of the revised report submitted to him by the Directors under paragraph (1) of this subsection. (B) The revised report of the Comptroller General under this paragraph shall provide for the determination of reductions as specified in subsection (a)(3) and shall contain all of the estimates, determinations, and specifications required (in the case of the report submitted under subsection 0^)) pursuant to subsection (b)(2)(B). (d) SEQUESTRATION OF DEFENSE PROGRAMS.— (1) DETERMINATION OF UNIFORM PERCENTAGE.—The

total amount of reductions in outlays under defense programs required for a fiscal year under subsection (a)(3)(B) after the reduction under subsection (a)(3)(E)(i) shall be calculated as a percentage of the total amount of outlays for the fiscal year estimated to result from new budget authority and unobligated balances for defense programs. (2) SEQUESTRATION OF NEW BUDGET AUTHORITY AND UNOBLIGATED BALANCES.—

(A) Sequestration to achieve the remaining reduction in outlays under defense programs shall be made by reducing new budget authority and unobligated balances (if any) in each program, project, or activity under accounts within defense programs by the percentage determined under paragraph (1), computed on the basis of the combined outlay rate for new budget authority and unobligated balances for such program, project, or activity determined under subparagraph (B). (B)(i) The combined outlay rate for new budget authority and unobligated balances for a program, project, or activity shall be determined by the Directors from data then available to them as supplemented by additional data from the heads of the appropriate departments or agencies of the executive branch. If the outlay rate for unobligated balances is not available for any program, project, or activity,

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1092

 99 STAT. 1070

PUBLIC LAW 99-177—DEC. 12, 1985 the outlay rate used shall be the outlay rate for new budget authority. (ii) The weighted average (by budget authority) for the combined outlay rates so determined for all the programs, projects, and activities within an account shall be compared to the historical outlay rates for that account previously estimated by the Directors. If the Directors determine that it is necessary to make the combined outlay rate for a program, project, or activity as determined under the first sentence of this subparagraph consistent with the historical rates for such account, they may adjust the outlay rate for such program, project, or activity. (C) For purposes of this paragraph: (i) The term "outlay rate", with respect to any program, project, or activity, means— (I) the ratio of outlays resulting in the fiscal year involved from new budget authority for such program, project, or activity to such new budget authority; or (II) the ratio of outlays resulting in the fiscal year involved from unobligated balances for such program, project, or activity to such unobligated balances. (ii) The term "combined outlay rate", with respect to any program, project, or activity, means the weighted average (by budget authority) of the ratios determined under subclauses (I) and (II) of clause (i) for such program, project, or activity. (3) SEQUESTRATION FROM NATIONAL DEFENSE ACCOUNTS THROUGH TERMINATION OR MODIFICATION OF EXISTING CON-

President of U.S. Report.

TRACTS.— (A)(i) Subject to the provisions of this paragraph, the President, with respect to any fiscal year, may provide for— (I) the termination or modification of an existing contract within any program, project, or activity within a account within major functional category 050; and (II) the crediting, to the amount of new budget authority and unobligated balances otherwise required to be reduced from such program, project, or activity, of the net reduction achieved for the appropriate fiscal year by such termination or modification, based upon the combined outlay rate for such program, project, or activity determined under paragraph (2)(B). (ii) The remaining required outlay reductions in such program, project, or activity shall be achieved by sequestering new budget authority and unobligated balances based upon the combined outlay rate for such program, project, or activity determined under paragraph (2)(B). (B) Not later than September 5 of the calendar year in which the fiscal year begins (January 15 in the case of fiscal year 1986), the President shall transmit to the C!omptroller General and the Committees on Armed Services and on Appropriations of the Senate and House of Representatives and make available to the Directors a report concerning the contracts proposed to be terminated or modified under this paragraph for such fiscal year. The report shall—

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 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1071

(i) identify the contracts proposed to be terminated or Contracts. modified and the proposed date of termination or modification of each such contract; (ii) identify the anticipated outlay savings for the fiscal year involved and the anticipated reduction in obligated balances with respect to each such proposed termination or modification, together with an explanation of the relationship between the obligated balances that could be cancelled and the estimated outlay savings resulting therefrom; (iii) provide documentation of the anticipated savings in outlays and obligated balances; and (iv) provide a complete rationale for the effect of each proposed termination or modification on the contract concerned and on the program, project, or activity involved. (C) Not later than September 30 of the calendar year in which the fiscal year begins (February 15 in the case of fiscal year 1986), the Comptroller General shall certify to the President and the Congress, with respect to each contract which is proposed to be terminated or modified— (i) whether the Comptroller General is able to verify that the estimated outlay savings for the fiscal year involved are achievable and would be achieved in that year; and (ii) whether the ratio between the projected outlay savings and the anticipated reduction in obligated balances is reasonable. (D)(i) In the case of a fiscal year other than fiscal year Report. 1986, each proposed contract termination or modification described in subparagraph (A) with respect to which the certification by the Comptroller General under subparagraph (C) is affirmative (with respect to both clause (i) and clause (ii) of such subparagraph) shall be included in the report of the Directors under subsection (c)(1). The report shall include the information about each such contract described in subparagraph (B)(ii). (ii) In the case of fiscal year 1986, each proposed contract termination or modification described in subparagraph (A) with respect to which the certification by the Comptroller General under subparagraph (C) is affirmative (with respect to both clause (i) and (ii) of such subparagraph) shall be included in the modification authorized by section 252(a)(6)(D)(iii) in the order issued by the President under Post, p. 1072. section 252(a)(1) with respect to fiscal year 1986. (iii) The authority of the President described in subparagraph (A) is not effective in the case of any proposed contract termination or modification with respect to which the certification by the Comptroller General under subparagraph (C) is not affirmative (with respect to both clause (i) and clause (ii) of such subparagraph). (E) For any contract termination or modification proposed pursuant to this paragraph, the President shall certify to Congress, within thirty days after the effective date of the contract termination or modification, that the amounts proposed for deobligation under such contract have in fact been deobligated and cancelled.

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1094

 99 STAT. 1072

PUBLIC LAW 99-177—DEC. 12, 1985 (e) DATES FOR SUBMISSION OF REPORTS AND ISSUANCE OF ORDERS.—

Infra.

Federal Register, publication.

2 USC 902. Report. Ante, p. 1063.

Post, pp. 1082, 1086, 1092.

2 USC 621 note.

Ante, p. 1056.

Ante, p. 1063.

If the date specified for the submission of a report by the Directors or the Comptroller General under this section or for the issuance of an order by the President under section 252 falls on a Sunday or legal holiday, such report shall be submitted or such order issued on the following day. (0 PRINTING OF REPORTS.—Each report submitted under this section shall be printed in the Federal Register on the date it is issued; and the reports of the Comptroller General submitted to the Congress under subsections (b) and (c)(2) shall be printed as documents of the House of Representatives and the Senate. (g) EXCEPTION.—The preceding provisions of this section shall not apply if a declaration of war by the Congress is in effect. SEC. 252. PRESIDENTIAL ORDER (a) ISSUANCE OF INITIAL ORDER.—

(1) IN GENERAL.—On September 1 following the submission of a report by the Comptroller General under section 251(b) which identifies an amount greater than $10,000,000,000 (zero in the case of fiscal years 1986 and 1991) by which the deficit for a fiscal year will exceed the maximum deficit amount for such fiscal year (or on February 1, 1986, in the case of the fiscal year 1986), the President, in strict accordance with the requirements of paragraph (3) and section 251(a)(3) and (4) and subject to the exemptions, exceptions, limitations, special rules, and definitions set forth in sections 255, 256, and 257, shall eliminate the full amount of the deficit excess (as adjusted by the Comptroller General in such report in accordance with section 251(a)(3)(A)(ii), in the case of fiscal year 1986) by issuing an order that (notwithstanding the Impoundment Control Act of 1974)— (A) modifies or suspends the operation of each provision of Federal law that would (but for such order) require an automatic spending increase to take effect during such fiscal year, in such a manner as to prevent such increase from taking effect, or reduce such increase, in accordance with such report; and (B) eliminates the remainder of such deficit excess (or adjusted deficit excess, in the case of fiscal year 1986) by sequestering new budget authority, unobligated balances, new loan guarantee commitments, new direct loan obligations, and spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974, and reducing obligation limitations, in accordance with such report— (i) for funds provided in annual appropriation Acts, from each affected program, project, and activity (as set forth in the most recently enacted applicable appropriation Acts and accompanying committee reports for the progrgmi, project, or activity involved, including joint resolutions providing continuing appropriations and committee reports accompanying Acts referred to in such resolutions), applying the same reduction percentage as the percentage by which the account involved is reduced in the report submitted under section 251(b), or from each affected budget account if the program, project, or activity is not so set forth, and (ii) for funds not provided in annual appropriation Acts, from each budget account activity as identified in

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text:
Author:Donald Edward Keyhoe

Works

 * The Flying Saucers are Real

title: Author:Donald Edward Keyhoe


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/1095

 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1073

the program and financing schedules contained in the appendix to the Budget of the United States Government for that fiscal year, applying the same reduction percentage as the percentage by which the account is reduced in such report. (2) SPECIAL SEQUESTRATION PROCEDURES FOR NATIONAL DEFENSE FOR FISCAL YEAR 1986.—

(A) IN GENERAL.—Notwithstanding subparagraph (B)(i) of paragraph (1), the order issued by the President under paragraph (1) with respect to fiscal year 1986 shall sequester, from each program, project, or activity within an account within major functional category 050, such amounts of new budget authority and unobligated balances as are specified (in accordance with section 251(a)(3)(E)(ii)) in the Ante, p. 1063. report submitted by the Comptroller General under section 251(b). (B) FLEXIBILITY WITH RESPECT TO MILITARY PERSONNEL ACCOUNTS.—

(i) Notwithstanding subparagraph (B)(i) of paragraph (1), the order issued by the President under paragraph (1) with respect to fiscal year 1986 may, with respect to any military personnel account— (I) exempt any program, project, or activity within such account from the order; (II) provide for a lower uniform percentage to be applied to reduce any program, project, or activity within such account than would otherwise apply; or (III) take actions described in both subclauses (I) and (II). (ii) If the President uses the authority under clause (i), the total amount by which outlays are not reduced for fiscal year 1986 in military personnel accounts by reason of the use of such authority shall be determined. Reductions in outlays under defense programs in such total amount shall be achieved by a uniform percentage sequestration of new budget authority and unobligated balances in each program, project, and activity within each account within major functional category 050 other than those military personnel accounts for which the authority provided under clause (i) has been exercised, computed on the basis of the outlay rate for each such program, project, and activity determined under section 251(d). Ante, p. 1063. (iii) The President may not use the authority provided by clause (i) unless he notifies the Comptroller General and the Congress on or before January 10, 1986, of the manner in which such authority will be exercised. (C) FLEXIBILITY AMONG PROGRAMS, PROJECTS, AND ACTIVITIES WITHIN ACCOUNTS.—

(i) New budget authority and unobligated balances for any program, project, or activity within an account within major functional category 050 may be reduced under an order issued by the President under paragraph (1) for fiscal year 1986, subject to clauses (ii) and (iii) of this subparagraph, by up to two times the

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1096

 99 STAT. 1074

Ante, p. 716.

Ante, p. 1063.

PUBLIC LAW 99-177—DEC. 12, 1985 percentage otherwise applicable to the program, project, or activity (determined after any reduction under subparagraph (B)). To the extent such reductions are made under such an order, the President may provide in the order for an increase in new budget authority and unobligated balances for another program, project, or activity within the same account within major functional category 050 for fiscal year 1986, but such program, project, or activity may not be increased above the level in the base set forth in such order. (ii) No order issued by the President under paragraph (1) for fiscal year 1986 may result in a base closure or realignment that would otherwise be subject to section 2687 of title 10, United States Code. (iii) New budget authority and unobligated balances for any program, project, or activity within major functional category 050 for fiscal year 1986 which is 10 percent (or more) greater than the amount requested in the budget submitted by the President under section 1105 of title 31, United States Code, for fiscal year 1986 may not be reduced by more than the percentage applicable to the program, project, or activity (determined after any reduction under subparagraph (B)). (3) ORDER TO BE BASED ON COMPTROLLER GENERAL'S REPORT.—

Ante, p. 1063.

The order must provide for reductions in the manner specified in section 251(a)(3), must incorporate the provisions of the report submitted under section 251(b), and must be consistent with such report in all respects. The President may not modify or recalculate any of the estimates, determinations, specifications, bases, amounts, or percentages set forth in the report submitted under section 251(b) in determining the reductions to be specified in the order with respect to programs, projects, and activities, or with respect to budget activities, within an account, with the exception of the authority granted to the President for fiscal year 1986 with respect to defense programs pursuant to paragraph (2)(C). (4) EFFECT OF SEQUESTRATION UNDER INFITAL ORDER.—Notwith-

Post, p. 1092.

President of U.S.

Ante, p. 1063.

standing section 257(7), amounts sequestered under an order issued by the President under paragraph (1) for fiscal year 1987 or any subsequent fiscal year shall be withheld from obligation pending the issuance of a final order under subsection (b) and shall be permanently cancelled in accordance with such final order upon the issuance of such order. (5) ACCOMPANYING MESSAGE.—At the time the actions described in the preceding provisions of this subsection with respect to any fiscal year are taken, the President shall transmit to both Houses of the Congress a message containing all the information required by section 251(a)(4) and further specifying in strict accordance with paragraph id)— (A) within each account, for each program, project, and activity, or budget account activity, the base from which each sequestration or reduction is taken and the amounts which are to be sequestered or reduced for each such program, project, and activity or budget account activity; and (B) such other supporting details as the President may determine to be appropriate.

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1097

 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1075

Upon receipt in the Senate and the House of Representatives, the message (and any accompanying proposals made under subsection (c)) shall be referred to all committees with jurisdiction over programs, projects, and activities affected by the order. (6) EFFECTIVE DATE OF INITIAL ORDER.— (A) FISCAL YEAR 1986.—The order issued by the President

under paragraph (1) with respect to the fiscal year 1986 shall be effective as of March 1, 1986. (B) FISCAL YEARS 1987-1991.—The order issued by the President of U.S. President under paragraph (1) with respect to the fiscal year 1987 or any subsequent fiscal year shall be effective as of October 1 of such fiscal year (and the President shall withhold from obligation as provided in paragraph (4), pending the issuance of his final order under subsection (b), any amounts that are to be sequestered or reduced under such order). (C) TREATMENT OF AUTOMATIC SPENDING INCREASES.— (i) FISCAL YEAR 1986.—Notwithstanding any other

provision of law, any automatic spending increase that would (but for this clause) be first paid during the period beginning with the date of the enactment of this joint resolution and ending with the effective date of an order issued by the President under paragraph (1) for the fiscal year 1986 shall be suspended until such order becomes effective, and the amounts that would otherwise be expended during such period with respect to such increases shall be withheld. If such order provides that automatic spending increases shall be reduced to zero during such fiscal year, the increases suspended pursuant to the preceding sentence and any legal rights thereto shall be permanently cancelled. If such order provides for the payment of automatic spending increases during such fiscal year in amounts that are less than would have been paid but for such order, or provides for the payment of the full amount of such increases, the increases suspended pursuant to such sentence shall be restored to the extent necessary to pay such reduced or full increases, and lump-sum payments in the amounts necessary to pay such reduced or full increases shall be made, for the period for which such increases were suspended pursuant to this clause. (ii) FISCAL YEARS 1987-1991.—Notwithstanding

any

other provision of law, any automatic spending increase that would (but for this clause) be first paid during the period beginning with the first day of such fiscal year and ending with the date on which a final order is issued pursuant to subsection (b) shall be suspended until such final order becomes effective, and the amounts that would otherwise be expended during such period with respect to such increases shall be withheld. If such final order provides that automatic spending increases shall be reduced to zero during such fiscal year, the increases suspended pursuant to the preceding sentence and any legal rights thereto shall be permanently cancelled. If such final order provides for the payment of automatic spending increases

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1098

 99 STAT. 1076

PUBLIC LAW 99-177—DEC. 12, 1985 during such fiscal year in amounts that are less than would have been paid but for such final order, or provides for the payment of the full amount of such increases, the increases suspended pursuant to such sentence shall be restored to the extent necessary to pay such reduced or full increases, and lump-sum payments in the amounts necessary to pay such reduced or full increases shall be made, for the period for which such increases were suspended pursuant to this clause. (iii) PROHIBITION AGAINST RECOUPMENT.—Notwith-

standing clauses (i) and (ii), if an amount required by either such clause to be withheld is paid, no recoupment shall be made against an individual to whom payment was made. (iv) EFFECT OF LUMP-SUM PAYMENTS ON NEEDS-RELATED

PROGRAMS.—Lump-sum payments made under the last sentence of clause (i) or clause (ii) shall not be considered as income or resources or otherwise taken into account in determining the eligibility of any individual for aid, assistance, or benefits under any Federal or federally-assisted program which conditions such eligibility to any extent upon the income or resources of such individual or his or her family or household, or in determining the amount or duration of such aid, assistance, or benefits. (D) SPECIAL RULES FOR FISCAL YEAR 1986.—(i) For purposes

Ante, p. 1063.

of applying this section and section 251 with respect to the fiscal year 1986— (I) the order issued by the President under paragraph (1) of this subsection shall be considered the final order of the President under this section; and (II) the Committees on Appropriations of the House of Representatives and the Senate may, after consultation with each other, define the term "program, project, and activity", and report to their respective Houses, with respect to matters within their jurisdiction, and the order issued by the President shall sequester funds in accordance with such definition. (ii) If the Comptroller General declares in the report issued under section 251(b) for fiscal year 1986 that as a result of laws enacted and regulations promulgated after the date of the enactment of this joint resolution and prior to the issuance of such report the excess deficit for the fiscal year (adjusted in accordance with section 251(a)(3)(A)(ii) has been eliminated, the order issued under this subsection for the fiscal year shall so state (and shall make available for obligation and expenditure any amounts withheld pursuant to subparagraph (C)(i) of this paragraph). (iii) The order issued by the President under paragraph (1) with respect to fiscal year 1986 shall be modified before the effective date for such order prescribed under subparagraph (A) to include in the order the changes in budget authority and unobligated balances, and related changes in outlay reductions, authorized for such fiscal year under section 251(d)(3)(D)(ii). (b) ISSUANCE OF FINAL ORDER.—

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1099

 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1077

(1) IN GENERAL.—On October 15 of the fiscal year (except in President of U.S. the case of the fiscal year 1986), after the submission of the ^"-te, p. 1063. revised report submitted by the Comptroller General under section 251(c)(2), the President shall issue a final order under this section to eliminate the full amount of the deficit excess as identified by the Comptroller General in the revised report submitted under section 251(c)(2) but only to the extent and in the manner provided in such report. The order issued under this subsection— (A) shall include the same reductions and sequestrations as the initial order issued under subsection (a), adjusted to the extent necessary to take account of any changes in relevant amounts or percentages determined by the .ifnh Comptroller General in the revised report submitted under section 251(c)(2), (B) shall make such reductions and sequestrations in strict accordance with the requirements of section 251(a)(3) and (4), and (C) shall utilize the same criteria and guidelines as those which were used in the issuance of such initial order under subsection (a). The provisions of subsection (a)(3) shall apply to the revised report submitted under section 251(c)(2) and to the order issued under this subsection in the same manner as such provisions apply to the initial report issued under section 251(b) and to the order issued under subsection (a). (2) ORDER REQUIRED IF EXCESS DEFICIT IS EUMINATED.—If the Report. Comptroller General issues a revised report under section 251(c)(2) stating that as a result of laws enacted and regulations promulgated after the submission of the initial report of the Comptroller General under section 251(b) the excess deficit for a fiscal year (adjusted in accordance with section 251(a)(3)(A)(ii), in the case of fiscal year 1986) has been eliminated, the order issued under this subsection shall so state and shall make available for obligation and expenditure any amounts withheld pursuant to subsection (a)(4) or (a)(6)(C). (3) EFFECTIVE DATE OF FINAL ORDER.—

(A) Except as provided in subsection (a)(6)(A), the final order issued by the President under paragraph (1) shall become effective on the date of its issuance, and shall supersede the order issued under subsection (a)(D(B) Any modification or suspension by such order of the operation of a provision of law that would (but for such order) require an automatic spending increase to take effect during the fiscal year shall apply for the one-year period beginning with the date on which such automatic increase would have taken effect during such fiscal year (but for such order). (c) PROPOSAL OF ALTERNATIVES BY THE PRESIDENT.—A message transmitted pursuant to subsection (a)(5) with respect to a fiscal year may be accompanied by a proposal setting forth in full detail alternative ways to reduce the deficit for such fiscal year to an amount not greater than the msiximum deficit amount for such fiscal year. (d) EXISTING PROGRAMS, PROJECTS, AND ACTIVITIES NOT TO B E Prohibition. EUMINATED.—No action taken by the President under subsection (a)

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1100

 99 STAT. 1078

PUBLIC LAW 99-177—DEC. 12, 1985

or (b) of this section shall have the effect of eliminating any program, project, or activity of the Federal Government. Prohibition.

2 USC 903.

Ante, p. 1072.

2 USC 904.

(e) RELATIVE BUDGET PRIORITIES NOT To B E ALTERED.—Nothing in

the preceding provisions of this section shall be construed to give the President new authority to alter the relative priorities in the Federal budget that are established by law, and no person who is or becomes eligible for benefits under any provision of law shall be denied eligibility by reason of any order issued under this part. SEC. 253. COMPLIANCE REPORT BY COMPTROLLER GENERAL. On or before November 15 of each fiscal year (or on or before April 1, 1986, in the case of the fiscal year 1986), the Comptroller General shall submit to the Congress and the President a report on the extent to which the President's order issued under section 252(b) for such fiscal year complies with all of the requirements contained in section 252, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not. SEC. 254. CONGRESSIONAL ACTION. (a) SPECIAL PROCEDURES IN THE EVENT OF A RECESSION.—

(1) IN GENERAL.—The Director of the Congressional Budget Office shall notify the Congress at any time if— (A) during the period consisting of the quarter during which such notification is given, the quarter preceding such notification, and the four quarters following such notification, such Office or the Office of Management and Budget has determined that real economic growth is projected or estimated to be less than zero with respect to each of any two consecutive quarters within such period, or (B) the Department of Commerce preliminary reports of actual real economic growth (or any subsequent revision thereof) indicate that the rate of real economic growth for each of the most recent reported quarter and the immediately preceding quarter is less than one percent. Upon such notification the Majority Leader of each House shall introduce a joint resolution (in the form set forth in paragraph (2)) declaring that the conditions specified in this paragraph are met and suspending the relevant provisions of this title for the remainder of the current fiscal year or for the following fiscal year or both. (2) FORM OF JOINT RESOLUTION.—

Ante, pp. 1039, 1040, 1044, 1047, Ante p 1063 Ante, p. 1063!

(A) The matter after the resolving clause in any joint resolution introduced pursuant to paragraph (1) shall be as follows: "That the Congress declares that the conditions specified in section 254(a)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 are met; and— "(1) the provisions of sections 3(7), 301(i), 302(f), 304(b), and 311(a) of the Congressional Budget and Impoundment Control Act of 1974, section 1106(c) of title 31, United States Code, and part C of the Balanced Budget and Emergency Deficit Control Act of 1985 are suspended for the remainder of the current fiscal year, and "(2) the provisions of sections 3(7), 301(i), 304(b), and 311(a) (insofar as it relates to section 3(7)) of the Congressional Budget and Impoundment Control Act of

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1101

 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1079

1974, sections 302(f) and 311(a) (except insofar as it relates to section 3(7)) of that Act (but only if a concurrent resolution on the budget under section 301 of that Act, for the fiscal year following the current fiscal year, has been agreed to prior to the introduction of this joint resolution), sections 1105(f) and 1106(c) of title 31, United States Code, and part C of the Balanced Budget and Emergency Deficit Control Act of 1985 are suspended for the fiscal year following the current fiscal year. This joint resolution shall not have the effect of suspending any final order which was issued for the current fiscal year under section 2520)) of the Balsuiced Budget and Emergency Deficit Control Act of 1985 if such order was issued before the date of the enactment of this joint resolution.". (B) The title of the joint resolution shall be "Joint resolution suspending certain provisions of law pursuant to section 254(a)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985."; and the joint resolution shall not contain any preamble. (3) COMMITTEE ACTION.—Each joint resolution introduced pursuant to paragraph (1) shall be referred to the Committee on the Budget of the House involved; and such Committee shall report the joint resolution to its House without amendment on or before the fifth day on which such House is in session after the date on which the joint resolution is introduced. If the Committee fails to report the joint resolution within the fiveday period referred to in the preceding sentence, it shall be automatically discharged from further consideration of the joint resolution, and the joint resolution shall be placed on the appropriate calendar. (4) CONSIDERATION OF JOINT RESOLUTION.—

(A) A vote on final passage of a joint resolution reported to a House of the Congress or discharged pursuant to paragraph (3) shall be taken on or before the close of the fifth calendar day of session of such House after the date on which the joint resolution is reported to such House or after the Committee has been discharged from further consideration of the joint resolution. If prior to the passage by one House of a joint resolution of that House, that House receives the same joint resolution from the other House, then— (i) the procedure in that House shall be the same as if no such joint resolution had been received from the other House, but (ii) the vote on final passage shall be on the joint resolution of the other House. When the joint resolution is agreed to, the Clerk of the House of Representatives (in the case of a House joint resolution agreed to in the House of Representatives) or the Secretary of the Senate (in the case of a Senate joint resolution agreed to in the Senate) shall cause the joint resolution to be engrossed, certified, and transmitted to the other House of the Congress as soon as practicable. (B)(i) A motion in the House of Representatives to proceed to the consideration of a joint resolution under this paragraph shall be highly privileged and not debatable. An

Ante, pp. 1044, 1055. ^"J^' P- f r^^" ^' PAnte, p. 1063. Ante, p. 1063.

Ante, p. 1072.

Ante, p. 1078.

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1102

 99 STAT. 1080

PUBLIC LAW 99-177—DEC. 12, 1985 amendment to the motion shall not be in order, nor shall it be in order to move to reconsider the vote by which the motion is agreed to or disagreed to. (ii) Debate in the House of Representatives on a joint resolution under this paragraph shall be limited to not more than five hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to postpone, made in the House of Representatives with respect to the consideration of a joint resolution under this paragraph, and a motion to proceed to the consideration of other business, shall not be in order. A motion further to limit debate shall not be debatable. It shall not be in order to move to table or to recommit a joint resolution under this paragraph or to move to reconsider the vote by which the joint resolution is agreed to or disagreed to. (iii) All appeals from the decisions of the Chair relating to the application of the Rules of the House of Representatives to the procedure relating to a joint resolution under this paragraph shall be decided without debate. (iv) Except to the extent specifically provided in the preceding provisions of this subsection or in subparagraph (D), consideration of a joint resolution under this subparagraph shall be governed by the Rules of the House of Representatives. (C)(i) A motion in the Senate to proceed to the consideration of a joint resolution under this paragraph shall be privileged and not debatable. An amendment to the motion shall not be in order, nor shall it be in order to move to reconsider the vote by which the motion is agreed to or disagreed to. (ii) Debate in the Senate on a joint resolution under this paragraph, and all debatable motions and appeals in connection therewith, shall be limited to not more than five hours. The time shall be equally divided between, and controlled by, the majority leader and the minority leader or their designees. (iii) Debate in the Senate on any debatable motion or appeal in connection with a joint resolution under this paragraph shall be limited to not more than one hour, to be equally divided between, and controlled by, the mover and the manager of the joint resolution, except that in the event the manager of the joint resolution is in favor of any such motion or appeal, the time in opposition thereto shall be controlled by the minority leader or his designee. (iv) A motion in the Senate to further limit debate on a joint resolution under this paragraph is not debatable. A motion to table or to recommit a joint resolution under this paragraph is not in order. (D) No amendment to a joint resolution considered under this paragraph shall be in order in either the House of Representatives or the Senate, (b) CONGRESSIONAL RESPONSE TO PRESIDENTIAL ORDER.— (1) REPORTING OF RESOLUTIONS, AND RECONCIUATION BILLS AND RESOLUTIONS, IN THE SENATE.— (A) COMMITTEE ALTERNATIVES TO PRESIDENTIAL ORDER.—

Within two days after the submission of a report by the

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1103

 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1081

Comptroller General under section 251(c)(2), each standing committee of the Senate may submit to the Committee on the Budget of the Senate information of the type described in section 301(d) of the Congressional Budget Act of 1974 with respect to alternatives to the order envisioned by such report insofar as such order affects laws within the jurisdiction of the committee. (B) INITIAL BUDGET COMMITTEE ACTION.—Not later than two days after issuance of a final order by the President under section 252(b) with respect to a fiscal year, the Committee on the Budget of the Senate may report to the Senate a resolution. The resolution may affirm the impact of the order issued under such section, in whole or in part. To the extent that any part of the order is not affirmed, the resolution shall state which parts are not affirmed and shall contain instructions to committees of the Senate of the type referred to in section 310(a) of the Congressional Budget Act of 1974, sufficient to achieve at least the total level of deficit reduction contained in those sections which are not affirmed. (C) RESPONSE OF COMMITTEES.—Committees instructed pursuant to subparagraph (B), or affected thereby, shall submit their responses to the Budget Committee no later than 10 days after the resolution referred to in subparagraph (B) is agreed to, except that if only one such Committee is so instructed such Committee shall, by the same date, report to the Senate a reconciliation bill or reconciliation resolution containing its recommendations in response to such instructions. A committee shall be considered to have complied with all instructions to it pursuant to a resolution adopted under subparagraph (B) if it has made recommendations with respect to matters within its jurisdiction which would result in a reduction in the deficit at least equal to the total reduction directed by such instructions. (D) BUDGET COMMITTEE ACTION.—Upon receipt of the recommendations received in response to a resolution referred to in subparagraph (B), the Budget Committee shall report to the Senate a reconciliation bill or reconciliation resolution, or both, carrying out all such recommendations without any substantive revisions. In the event that a committee instructed in a resolution referred to in subparagraph (B) fails to submit any recommendation (or, when only one committee is instructed, fails to report a reconciliation bill or resolution) in response to such instructions, the Budget Committee shall include in the reconciliation bill or reconciliation resolution reported pursuant to this subparagraph legislative language within the jurisdiction of the noncomplying committee to achieve the amount of deficit reduction directed in such instructions. (E) POINT OF ORDER.—It shall not be in order in the

Senate to consider any reconciliation bill or reconciliation resolution reported under subparagraph (D) with respect to a fiscal year, any amendment thereto, or any conference report thereon if— (i) the enactment of such bill or resolution as reported;

Ante, p. 1063. Ante, p. 1040.

Report, Ante, p. 1072.

Ante, p. 1053.

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1104

 99 STAT. 1082

PUBLIC LAW 99-177—DEC. 12, 1985 (ii) the adoption and enactment of such amendment; or

Ante, p. 1063.
 * . I

(iii) the enactment of such bill or resolution in the form recommended in such conference report, would cause the amount of the deficit for such fiscal year to exceed the maximum deficit amount for such fiscal year. unless the report submitted under section 251(c)(l) projects negative real economic growth for such fiscal year, or for each of any two consecutive quarters during such fiscal year. (F) TREATMENT OF CERTAIN AMENDMENTS.—In the Senate, an amendment which adds to a resolution reported under subparagraph (B) an instruction of the type referred to in such subparagraph shall be in order during the consideration of such resolution if such amendment would be in order but for the fact that it would be held to be nongermane on the basis that the instruction constitutes new matter. (G) DEFINITION.—For purposes of subparagraphs (A), (B), and (C), the term "day' shall mean any calendar day on which the Senate is in session. (2) PROCEDURES.—

Ante, pp. 1047, 1053.

(A) IN GENERAL.—Except as provided in subparagraph (B), in the Senate the provisions of sections 305 and 310 of the Congressional Budget Act of 1974 for the consideration of concurrent resolutions on the budget and conference reports thereon shall also apply to the consideration of resolutions, and reconciliation bills and reconciliation resolutions reported under this paragraph and conference reports thereon. (B) LIMIT ON DEBATE.—Debate in the Senate on any reso-

lution reported pursuant to paragraph (I)(B), and all amendments thereto and debatable motions and appeals in connection therewith, shall be limited to 10 hours. (C) LIMITATION ON AMENDMENTS.—Section 310(d)(2) of the

Ante, p. 1058.

Congressional Budget Act shall apply to reconciliation bills and reconciliation resolutions reported under this subsection. (D) BILLS AND RESOLUTIONS RECEIVED FROM THE HOUSE.—

Any bill or resolution received in the Senate from the House, which is a companion to a reconciliation bill or reconciliation resolution of the Senate for the purposes of this subsection, shall be considered in the Senate pursuant to the provisions of this subsection. (E) DEFINITION.—For purposes of this subsection, the term "resolution" means a simple, joint, or concurrent resolution. (c) CERTAIN RESOLUTIONS TREATED AS RECONCILIATION BILLS.—

2 USC 621 note. 2 USC 905.

Resolutions described in subsection 0>) of this section and bills reported as a result thereof shall be considered in the Senate to be reconciliation bills or resolutions for purposes of the Congressional Budget Act of 1974. SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES. (a) SOCIAL SECURITY BENEFITS AND TIER I RAILROAD RETIREMENT

BENEFITS.—Increases in benefits payable under the old-age, survivors, and disability insurance program established under title II of

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 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1083

the Social Security Act, or in benefits payable under section 3(a), 3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act of 1974, shall not be considered "automatic spending increases" for purposes of this title; and no reduction in any such increase or in any of the benefits involved shall be made under any order issued under this part. (b) VETERANS PROGRAMS.—The following programs shall be exempt from reduction under any order issued under this part: Veterans' compensation (36-0153-0-1-701); and Veterans' pensions (36-0154-0-1-701). (c) NET INTEREST.—No reduction of payments for net interest (all of major functional category 900) shall be made under any order issued under this part. (d) EARNED INCOME TAX CREDFT.—Pajmients to individuals made pursuant to section 32 of the Internal Revenue Code of 1954 shall be exempt from reduction under any order issued under this part.

42 USC 401. 45 USC 231b, 231c.

26 USC 32.

(e) OFFSETTING RECEIPTS AND COLLECTIONS.—Offsetting receipts

and collections shall not be reduced under any order issued under this part. (f) CERTAIN PROGRAM BASES.—Outlays for programs specified in

paragraph (1) of section 257 shall be subject to reduction only in Post, p. 1092. accordance with the procedures established in section 251(a)(3)(C) Ante, p. 1063. Post, p. 1086. and 256(b). (g) OTHER PROGRAMS AND AcnvmES.—

(1) The following budget accounts and activities shall be eiaims. exempt from reduction under any order issued under this part: Activities resulting from private donations, bequests, or voluntary contributions to the Government; Alaska Power Administration, Operations and maintenance (89-0304-0-1-271); Appropriations for the District of Columbia (to the extent they are appropriations of locally raised funds); Bonneville Power Administration fund and borrowing authority established pursuant to section 13 of Public Law 93-454 (1974), as amended (89-4045-0-3-271); 16 USC 838k. Bureau of Indian Affairs miscellaneous trust funds, tribal trust funds (14-9973-0-7-999); Claims, defense (97-0102-0-1-051); Claims, judgments, and relief acts (20-1895-0-1-806); Coinage profit fund (20-5811-0-2-803); Compensation of the President (11-0001-0-1-802); President of U.S. Eastern Indian land claims settlement fund (14-2202-01-806); Exchange stabilization fund (20-4444-0-3-155); Federal payment to the railroad retirement account (600113-0-1-601); Foreign military sales trust fund (11-8242-0-7-155); Health professions graduate student loan insurance fund (Health Education Assistance Loan Program) (75-4305-0-3553); Intragovernmental funds, including those from which the outlays are derived primarily from resources paid in from other government accounts, except to the extent such funds are augmented by direct appropriations for the fiscal year during which an order is in effect; Payment of Vietnam and USS Pueblo prisoner-of-war claims (15-0104-0-1-153);

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1106

 99 STAT. 1084

,;

PUBLIC LAW 99-177—DEC. 12, 1985 Payment to civil service retirement and disability fund (24-0200-0-1-805); Payments to copyright owners (03-5175-0-2-376); Payments to health care trust funds (75-0580-0-1-572); Payments to military retirement fund (97-0040-0-1-054); Pa3mients to social security trust funds (75-0404-0-1571); Payments to state and local government fiscal assistance trust fund (20-2111-0-1-851); Payments to the foreign service retirement and disability fund (11-1036-0-1-153 and 19-0540-0-1-153); Payments to trust funds from excise taxes or other receipts properly creditable to such trust funds; Postal service fund (18-4020-0-3-372); Salaries of Article III judges; Soldiers and Airmen's Home, payment of claims (848930-0-7-705); Southeastern Power Administration, Operations and maintenance (89-0302-0-1-271); Southwestern Power Administration, Operations and maintenance (89-0303-0-1-271); Tennessee Valley Authority fund, except non-power programs and activities (64-4110-0-3-999); Western Area Power Administration, Construction, rehabilitation, operations, and medntenance (89-5068-0-2271); and Western Area Power Administration, Colorado River basins power marketing fund (89-4452-0-3-271). (2) Prior legal obligations of the Government in the following budget accounts and activities shall be exempt from any order issued under this part: Agency for International Development, Housing, and other credit guarantee programs (72-4340-0-3-151); Agricultural credit insurance fund (12-4140-0-3-351); Biomass energy development (20-0114-0-1-271); Check forgery insurance fund (20-4109-0-3-803); Community development grant loan guarantees (860162-0-1-451); Credit union share insurance fund (25-4468-0-3-371); Economic development revolving fund (13-4406-0-3-452); Employees life insurance fund (24-8424-0-8-602); Energy security reserve (Synthetic Fuels Corporation) (20-0112-0-1-271); Export-Import Bank of the United States, Limitation of program activity (83-4027-0-3-155); Federal Aviation Administration, Aviation insurance revolving fund (69-4120-0-3-402); Federal Crop Insurance Corporation fund (12-4085-0-3351); Federal Deposit Insurance Corporation (51-8419-0-8371); Federal Emergency Management Agency, National flood insurance fund (58-4236-0-3-453); Federal Emergency Management Agency, National insurance development fund (58-4235-0-3-451); Federal Housing Administration fund (86-4070-0-3-371);

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 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1085

Federal Savings and Loan Insurance Corporation fund (82-4037-0-3-371); Federal ship financing fund (69-4301-0-3-403); Federal ship financing fund, fishing vessels (13-4417-0-3376); Geothermal resources development fund (89-0206-0-1271); Government National Mortgage Association, Guarantees of mortgage-backed securities (86-4238-0-3-371); Health education loans (75-4307-0-3-553); Homeowners assistance fund, Defense (97-4090-0-3-051); Indian loan guarantee and insurance fund (14-4410-0-3452); International Trade Administration, Operations and administration (13-1250-0-1-376); Low-rent public housing, Loans and other expenses (864098-0-3-604); Maritime Administration, War-risk insurance revolving fund (69-4302-0-3-403); Overseas Private Investment Corporation (71-4030-0-3151); Pension Benefit Guaranty Corporation fund (16-4204-03-601); Rail service assistance (69-0122-0-1-401); Railroad rehabilitation and improvement financing fund (69-4411-0-3-401); Rural development insurance fund (12-4155-0-3-452); Rural electric and telephone revolving fund (12-4230-83-271); Rural housing insurance fund (12-4141-0-3-371); Small Business Administration, Business loan and investment fund (73-4154-0-3-376); Small Business Administration, Lease guarantees revolving fund (73-4157-0-3-376); Small Business Administration, Pollution control equipment contract guarantee revolving fund (73-4147-0-3-376); Small Business Administration, Surety bond guarantees revolving fund (73-4156-0-3-376); Veterans Administration, Loan guaranty revolving fund (36-4025-0-3-704); Veterans Administration, National service life insurance fund (36-8132-0-7-701); Veterans Administration, Service-disabled veterans insurance fund (36-4012-0-3-701); Veterans Administration, Servicemen's group life insurance fund (36-4009-0-3-701); Veterans Administration, United States Government life insurance fund (36-8150-0-7-701); Veterans Administration, Veterans insurance and indemnities (36-0120-0-1-701); Veterans Administration, Veterans reopened insurance fund (36-4010-0-3-701); and Veterans Administration, Veterans special life insurance fund (36-8455-0-8-701). (h) LOW-INCOME PROGRAMS.—The following programs shall be exempt from reduction under any order issued under this part: Aid to families with dependent children (75-0412-0-1-609);

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1108

 99 STAT. 1086

PUBLIC LAW 99-177—DEC. 12, 1985

Child nutrition (12-3539-0-1-605); Food stamp programs (12-3505-0-1-605 and 12-3550-0-1605); Grants to States for Medicaid (75-0512-0-1-551); Supplemental Security Income Program (75-0406-0-1-609); and Women, infants, and children program (12-3510-0-1-605). (i) IDENTIFICATION OF PROGRAMS.—For purposes of subsections (g) and (h), programs are identified by the designated budget account identification code numbers set forth in the Budget of the United States Government, 1986—Appendix. 2 USC 906.

SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES. (a) EFFECT OF REDUCTIONS AND SEQUESTRATIONS.— (1) REDUCTIONS IN AUTOMATIC SPENDING INCREASES.—Notwith-

Post, p. 1092. Ante, p. 1072.

Ante, p. 1056. Ante, p. 1072.

standing any other provision of law, any change in the Consumer Price Index or any other index measuring costs, prices, or wages (or in any component of any such index), under a program listed in section 257(1), that is not taken into account for purposes of determining the amount of an automatic spending increase (if any) under such program for a fiscal year for which an order is issued under section 252 shall not be taken into account for purposes of determining any automatic spending increase during any fiscal year thereafter. (2) SEQUESTRATIONS.—Any amount of new budget authority, unobligated balances, obligated balances, new loan guarantee commitments, new direct loan obligations, spending authority (as defined in section 401(c)(2) of the Congressional Budget Act of 1974), or obligation limitations which is sequestered or reduced pursuant to an order issued under section 252 is permanently cancelled, with the exception of amounts sequestered in special or trust funds, which shall remain in such funds and be available in accordance with and to the extent permitted by law, including the provisions of this Act. (b) TREATMENT OF FEDERAL ADMINISTRATIVE EXPENSES.—

State and local governments.

(1) Notwithstanding any other provision of this title, administrative expenses incurred by the departments and agencies, including independent agencies, of the Federal Government in connection with any program, project, activity, or account shall be subject to reduction pursuant to an order issued under section 252, without regard to any exemption, exception, limitation, or special rule which is otherwise applicable with respect to such program, project, activity, or account under this part. (2) Notwithstanding any other provision of law, administrative expenses of any program, project, activity, or account which is self-supporting and does not receive appropriations shall be subject to reduction under a sequester order, unless specifically exempted in this joint resolution. (3) Payments made by the Federal Government to reimburse or match administrative costs incurred by a State or political subdivision under or in connection with any program, project, activity, or account shall not be considered administrative expenses of the Federal Government for purposes of this section, and shall be subject to reduction or sequestration under this part to the extent (and only to the extent) that other payments made by the Federal Government under or in connection with that program, project, activity, or account are subject to such

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1109

 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1087

reduction or sequestration; except that Federal payments made to a State as reimbursement of administrative costs incurred by such State under or in connection with the unemployment compensation programs specified in subsection (h)(1) shall be subject to reduction or sequestration under this part notwithstanding the exemption otherwise granted to such programs under that subsection. (c) EFFECT OF ORDERS ON THE GUARANTEED STUDENT LOAN PROGRAM.—(1) Any reductions which are required to be achieved from the student loan programs operated pursuant to part B of title IV of the Higher Education Act of 1965, as a consequence of an order issued pursuant to section 252, shall be achieved only from loans described in paragraphs (2) and (3) by the application of the measures described in such paragraphs. (2) For any loan made during the period beginning on the date that an order issued under section 252 takes effect with respect to a fiscal year and ending at the close of such fiscal year, the rate used in computing the special allowance payment pursuant to section 438(b)(2)(A)(iii) of such Act for each of the first four special allowance payments for such loan shall be adjusted by reducing such rate by the lesser of— (A) 0.40 percent, or (B) the percentage by which the rate specified in such section exceeds 3 percent. (3) For any loan made during the period beginning on the date that an order issued under section 252 takes effect with respect to a fiscal year and ending at the close of such fiscal year, the origination fee which is authorized to be collected pursuant to section 438(c)(2) of such Act shall be increased by 0.50 percent.

Education. 20 USC 1071. ^"^^^ P- 1072.

20 USC 1087-1.

20 USC 1087-1.

(d) SPECIAL RULES FOR MEDICARE PROGRAM.— (1) MAXIMUM PERCENTAGE REDUCTION IN INDIVIDUAL PAYMENT

AMOUNTS.—The maximum permissible reduction for the health insurance programs under title XVIII of the Social Security Act 42 USC 1395. for any fiscal year, pursuant to an order issued under section 252, consists only of a reduction of— Ante, p. 1072. (A) 1 percent in the case of fiscal year 1986, and (B) 2 percent in the case of any subsequent fiscal year, in each separate payment amount otherwise made for a covered service under those programs without regard to this part. (2) TIMING OF APPLICATION OF REDUCTIONS.—

(A) IN GENERAL.—Except as provided in subparagraph (B), if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for services furnished during the effective period of the order. For purposes of the previous sentence, in the case of inpatient services furnished for an individual, the services shall be considered to be furnished on the date of the individual's discharge from the inpatient facility. (B) PAYMENT ON THE BASIS OF COST REPORTING PERIODS.—

In the case in which payment for services of a provider of services is made under title XVIII of the Social Security Act 42 USC 1395. on a basis relating to the reasonable cost incurred for the services during a cost reporting period of the provider, if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for costs for such services incurred at

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Page:United States Statutes at Large Volume 99 Part 1.djvu/1110

 99 STAT. 1088

PUBLIC LAW 99-177—DEC. 12, 1985 any time during each cost reporting period of the provider any part of which occurs during the effective period of the order, but only (for each such cost reporting period) in the same proportion as the fraction of the cost reporting period that occurs during the effective period of the order. (C) EFFECTIVE PERIOD OF ORDER FOR FISCAL YEAR 1986.— For purposes of this paragraph, the effective period of a sequestration order for fiscal year 1986 is the period beginning on March 1, 1986, and ending on September 30, 1986. (3) No RELATED

42 USC 1395J. 42 USC 1395, 1395u. 98 Stat. 1093. 42 USC 1395gg.

42 USC 1395mm.

INCREASE IN BENEFICIARY CHARGES IN ASSIGNMENT-

CASES.—If a reduction in payment amounts is made under paragraph (1) for services for which payment under part B of title XVIII of the Social Security Act is made on the basis of an assignment described in section 1842(b)(3)(B)(ii), in accordance with section 18420t))(6)(B), or under the procedure described in section 1870(f)(1), of such Act, the person furnishing the services shall be considered to have accepted payment of the reasonable charge for the services, less any reduction in payment amount made pursuant to a sequestration order, as payment in full. (4) No EFFECT ON COMPUTATION OF AAPCC.—In Computing the adjusted average per capita cost for purposes of section 1876(a)(4) of the Social Security Act, the Secretary of Health and Human Services shall not take into account any reductions in payment amounts which have been or may be effected under this part. (e) TREATMENT OF CHILD SUPPORT ENFORCEMENT PROGRAM.—Any

Ante, p. 1072. 98 Stat. 1311, 1312. 42 USC 655, 658.

order issued by the President under section 252 shall accomplish the full amount of any required reduction in expenditures under sections 455 and 458 of the Social Security Act by reducing the Federal matching rate for State administrative costs under such program, as specified (for the fiscal year involved) in section 455(a) of such Act, to the extent necessary to reduce such expenditures by that amount. (f) TREATMENT OF FOSTER CARE AND ADOPTION ASSISTANCE PRO-

Ante, p. 1072.

42 USC 670. state and local governments.

98 Stat. 1167, 3296. 42 USC 674.

42 USC 670.

GRAMS.—Any order issued by the President under section 252 shall make the reduction which is otherwise required under the foster care and adoption assistance programs (established by part E of title IV of the Social Security Act) only with respect to payments and expenditures made by States in which increases in foster care maintenance payment rates or adoption assistance payment rates (or both) are to take effect during the fiscal year involved, and only to the extent that the required reduction can be accomplished by applying a uniform percentage reduction to the Federal matching payments that each such State would otherwise receive under section 474 of that Act (for such fiscal year) for that portion of the State's payments which is attributable to the increases taking effect during that year. No State may, after the date of the enactment of this joint resolution, make any change in the timetable for making payments under a State plan approved under part E of title IV of the Social Security Act which has the effect of changing the fiscal year in which expenditures under such part are made. (g) FEDERAL PAY.—

(1) IN GENERAL.—For purposes of any order issued under section 252— (A) Federal pay under a statutory pay system, and (B) elements of military pay.

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 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1089

shall be subject to reduction under an order in the same manner as other administrative expense components of the Federal budget; except that no such order may reduce or have the effect of reducing the rate of pay to which any individual is entitled under any such statutory pay system or the rate of any element of military pay to which any individual is entitled under title 37, United States Code, or any increase in rates of pay which is scheduled to take effect under section 5305 of title 5, United States Code, section 1009 of title 37, United States Code, or any other provision of law. (2) DEFINITIONS.—For purposes of this subsection: (A) The term "statutory pay system" shall have the meaning given that term in section 5301(c) of title 5, United States Code. (B) The term "elements of military pay" means— (i) the elements of compensation of members of the uniformed services specified in section 1009 of title 37, United States Code, (ii) allowances provided members of the uniformed services under sections 403a and 405 of such title, and (iii) cadet pay and midshipman pay under section 203(C) o f s u c h title.

(C) The term "uniformed services" shall have the meaning given that term in section 101(3) of title 37, United States Code,

Ante, pp. ^^'^^^-^^^ ^8 Stat. 2536.

37 USC 203^

(h) TREATMENT OF PAYMENTS AND ADVANCES MADE WITH RESPECT TO UNEMPLOYMENT COMPENSATION PROGRAMS.—<1) For purposes of

section 252— (A) any amount paid as regular unemployment compensation by a State from its account in the Unemployment Trust Fund (established by section 904(a) of the Social Security Act), (B) any advance made to a State from the Federal unemployment account (established by section 904(g) of such Act) under title XII of such Act and any advance appropriated to the Federal unemployment account pursuant to section 1203 of such Act, and (C) any payment made from the Federal Employees Compensation Account (as established under section 909 of such Act) for the purpose of carrying out chapter 85 of title 5, United States Code, and funds appropriated or transferred to or otherwise deposited in such Account, shall not be subject to reduction. (2)(A) A State may reduce each weekly benefit payment made under the Federal-State Extended Unemplo3ment (Compensation Act of 1970 for any week of unemployment occurring during any period with respect to which payments are reduced under an order issued under section 252 by a percentage not to exceed the percentage by which the Federal payment to the State under section 204 of such Act is to be reduced for such week as a result of such order. (B) A reduction by a State in accordance with subparagraph (A) shall not be considered as a failure to fulfill the requirements of section 3304(a)(ll) of the Internal Revenue Cllode of 1954.

Ante, p. 1072. 42 USC 1104. 42 USC 1321. 42 USC 1323. 42 USC 1109. 5 USC 8501 et seg.

26 USC 3304 note. Ante, p. 1072. 26 USC 3304 note. 26 USC 3304.

(i) TREATMENT OF MINE WORKER DISABILITY CIOMPENSATION INCREASES AS AUTOMATIC SPENDING INCREASES.—An order issued by

the President under section 252 may not result in eliminating or Ante, p. 1072. reducing an increase in disability benefits under the Federal Mine Safety and Health Act except in the manner provided for automatic 30 USC 801 note.

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 99 STAT. 1090 Ante, p. 1072. Agriculture and agricultural

commodities.

PUBLIC LAW 99-177—DEC. 12, 1985

Spending increases under section 252(a)(l)(A), and no such increase may, pursuant to such section, be reduced below zero. (j) COMMODITY CREDIT CORPORATION.— (1) PoWERS AND AUTHORITIES OF THE COMMODITY CREDIT COR-

PORATION.—This title shall not restrict the Commodity Credit Corporation in the discharge of its authority and responsibility as a corporation to buy and sell commodities in world trade, to use the proceeds as a revolving fund to meet other obligations and otherwise operate as a corporation, the purpose for which it was created. (2) REDUCTION IN PAYMENTS MADE UNDER CONTRACTS.—(A)

Ante, p. 1072.

Payments and loan eligibility under any contract entered into with a person by the Commodity Credit Corporation prior to the time an order has been issued under section 252 shall not be reduced by an order subsequently issued. Subject to subparagraph (B), after an order is issued under such section for a fiscal year, any cash payments made by the Commodity Credit Corporation— (i) under the terms of any one-year contract entered into in such fiscal year and after the issuance of the order; and (ii) out of an entitlement account, to any person (including any producer, lender, or guarantee entity) shall be subject to reduction under the order. (B) Each contract entered into with producers or producer cooperatives with respect to a particular crop of a commodity and subject to reduction under subparagraph (A) shall be reduced in accordance with the same terms and conditions. If some, but not all, contracts applicable to a crop of a commodity have been entered into prior to the issuance of an order under section 252, the order shall provide that the necessary reduction in payments under contracts applicable to the commodity be uniformly applied to all contracts for the next succeeding crop of the commodity, under the authority provided in paragraph (3). (3) DELAYED REDUCTION IN OUTLAYS PERMISSIBLE.—Notwith-

standing any other provision of this joint resolution, if an order under section 252 is issued with respect to a fiscal year, any reduction under the order applicable to contracts described in paragraph (1) may provide for reductions in outlays for the account involved to occur in the fiscal year following the fiscal year to which the order applies. No other account, or other program, project, or activity, shall bear an increased reduction for the fiscal year to which the order applies as a result of the operation of the preceding sentence. (4) UNIFORM PERCENTAGE RATE OF REDUCTION AND OTHER

LIMITATIONS.—All reductions described in paragraph (2) which are required to be made in connection with an order issued under section 252 with respect to a fiscal year— (A) shall be made so as to ensure that outlays for each program, project, activity, or account involved are reduced by a percentage rate that is uniform for all such programs, projects, activities, and accounts, and may not be made so as to achieve a percentage rate of reduction in any such item exceeding the rate specified in the order; and (B) with respect to commodity price support and income protection programs, shall be made in such manner and under such procedures as will attempt to ensure that—

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