To amend part C of the Balanced Budget and Emergency Deficit Control Act of 1985 to establish a pay-as-you-go requirement for mandatory spending.

June 22, 2004

Mr. NUSSLE introduced the following bill; which was referred to the Committee on the Budget

To amend part C of the Balanced Budget and Emergency Deficit Control Act of 1985 to establish a pay-as-you-go requirement for mandatory spending.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Mandatory Spending Control Act of 2004'.

SEC. 2. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.

(a) PURPOSE- Section 252(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:

`(a) PURPOSE- The purpose of this section is to assure that any legislation that is enacted before October 1, 2009, that causes a net increase in direct spending will trigger an offsetting sequestration.'.

(b) TIMING- Section 252(b)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking `any net deficit increase' and all that follows through `2002,' and by inserting `any net increase in direct spending enacted before October 1, 2009,'.

(c) CALCULATION OF DIRECT SPENDING INCREASE- Section 252(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended--

(1) by striking `deficit' the first place it appears and inserting `direct spending';

(2) in subparagraph (A) by striking `and receipts';

(3) in subparagraph (C) by striking `and receipts'; and

(4) by amending the heading to read as follows: `CALCULATION OF DIRECT SPENDING INCREASE- '.

(d) CONFORMING AMENDMENTS- (1) The heading of section 252(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows: `ELIMINATING A DIRECT SPENDING INCREASE- '.

(2) Paragraphs (1), (2), and (4) of section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985 are amended by striking `or receipts' each place it appears.

(3) Section 252(e) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking `or receipts' and by striking `, outlays, and receipts' and inserting `and outlays'.

(4) Section 254(c)(3) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended--

(A) in subparagraph (A) by striking `net deficit increase or decrease' and by inserting `net increase or decrease in direct spending';

(B) in subparagraph (B) by striking `amount of deficit increase or decrease' and by inserting `increase or decrease in direct spending'; and

(C) in subparagraph (C) by striking `a deficit increase' and by inserting `an increase in direct spending'.

SEC. 3. DEFINITION.

Section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following new paragraphs:

`(20)(A) Except as provided by subparagraph (B), the term `emergency requirement' means any provision that provides new budget authority and resulting outlays for a situation that poses a threat to life, property, or national security and is--

`(i) sudden, quickly coming into being, and not building up over time;

`(ii) an urgent, pressing, and compelling need requiring immediate action;

`(iii) subject to subparagraph (B), unforeseen, unpredictable, and unanticipated; and

`(iv) not permanent, temporary in nature.

`(B) An emergency that is part of an aggregate level of anticipated emergencies, particularly when normally estimated in advance, is not unforeseen.'.

SEC. 4. EXCEPTION FOR OUTLAY COMPONENTS OF EXPIRING RECEIPTS LEGISLATION.

Section 252(d)(4) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking `and' at the end of subparagraph (A), by striking the period and inserting `; and' at the end of subparagraph (B), and by adding at the end the following new subparagraph:

`(C) extending provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 or provisions in sections 101 through 104, section 202, or sections 301 and 302 of the Jobs and Growth Tax Relief Reconciliation Act of 2003.'.

SEC. 5. EXPIRATION.

Section 275(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking `2006' and inserting `2013'.

END