596 new spending authority described in subsection (c)(2) (C) 595 which is to become effective during a fiscal year and the amount of new budget authority which will be required for such fiscal year if such bill or resolution is enacted as so reported exceeds the appropriate allocation of new budget authority reported under section 302(b) 597 in connection with the most recently agreed to concurrent resolution on the budget for such fiscal year, such bill or resolution shall then be referred to the Committee on Appropriations of that House with instructions to report it, with the committee's recommendations, within 15 calendar days (not counting any day on which that House is not in session) beginning with the day following the day on which it is so referred. If the Committee on Appropriations of either House fails to report a bill or resolution referred to it under this paragraph within such 15-day period, the committee shall automatically be discharged from further consideration of such bill or resolution and such bill or resolution shall be placed on the appropriate calendar. (3) The Committee on Appropriations of each House shall have jurisdiction to report any bill or resolution referred to it under paragraph (2) 598 with an amendment which limits the total amount of new spending authority provided in such bill or resolution. (c) DEFINITIONS. (1) For purposes of this section, the term "new spending authority" means spending authority not provided 595 See infra pp. 204-205. Section 3(9) refers to section 401(c)(2)(C) to define the term "entitlement authority." See supra p. 18. 596 Section 3(2) defines "budget authority." See supra pp. 11-13. by law on the effective date of this Act,599 including any increase in or addition to spending authority provided by law on such date. (2) For purposes of paragraph (1), the term "spending authority" 600 means authority (whether temporary or permanent) - 601 (A) to enter into contracts under which the United States is obligated to make outlays, the budget authority02 for which is not provided in advance by appropriation Acts; 603 (B) to incur indebtedness (other than indebtedness incurred under chapter 31604 of title 31 of the United States Code) for the repayment of which the United States is liable, the budget authority for which is not provided in advance by appropriation 605 599 Section 211 of Gramm-Rudman-Hollings changed this word from "section" to "Act." See infra p. 347. As originally written, the reference was clear: section 905(c) indicates that the effective date for section 401 was January 19, 1976. See infra pp. 304-305 & note 920. As amended, however, the intent is ambiguous. Section 905(a) provides that the effective date of the Act was the date of enactment, July 12, 1974, except as provided in section 905, which has the specific reference to (among other sections) section 401. See infra p. 304. Note that the drafters of Gramm-Rudman-Hollings made clear when they meant the date of enactment of Gramm-Rudman-Hollings instead of the date of enactment of the Congressional Budget Act. See section 401(d)(3)(A)(ii) infra p. 209. 600 Note that section 406(a), regarding off-budget agencies, programs, and activities (see infra p. 221), requires that certain items shall be included in spending authority. 601 Section 3(1) defines "outlays." See supra p. 11. 602 Section 3(2) defines "budget authority." See supra pp. 11-13. 603 For a discussion of whether something is "provided in advance by appropriation Acts," see generally infra note 609. Section 3(5) defines "appropriation Act" by reference to 1 U.S.C. § 105. See supra p. 16. For the text of 1 U.S.C. § 105 (1988), see supra note 30. 604 Chapter 31 comprises 31 U.S.C. §§ 3101-3129 (1988). . Acts,60% (C) 607 to make payments (including loans and grants), the budget authority 608 for which is not provided for in advance by appropriations Acts, 609 to 606 For a discussion of whether something is "provided in advance by appropriation Acts," see generally infra note 609. Section 3(5) defines "appropriation Act" by reference to 1 U.S.C. § 105. See supra p. 16. For the text of 1 U.S.C. § 105 (1988), see supra note 30. 607 Section 3(9) refers to this subparagraph to define the term "entitlement authority." See supra p. 18. Note that section 250(c)(18) of Gramm-Rudman-Hollings defines certain mandatory appropriated accounts as entitlements for purposes of Gramm-RudmanHollings. See infra p. 378. 608 Section 3(2) defines "budget authority." See supra pp. 11-13. 609 Even if an amendment creates benefits for qualifying individuals, it will not create entitlement authority within the meaning of section 401(c)(2)(C) if it also provides that "no payments shall be made except subject to appropriations." 130 CONG. REC. S7,070-71, S7,108, S7,110 (1984) (parliamentary inquiry of Sen. Cohen); Senate Precedent PRL19840613-002 (June 13, 1984) (LEGIS, Rules database). This is so even if the language creating the benefits says "an individual shall be entitled." Id. The Parliamentarian's office has advised that the following language would ensure that a program would be subject to appropriations, and therefore not an entitlement under section 401(c)(2)(C): In any fiscal year the administrator of this program shall limit the value of any benefits conferred by this program to an amount not in excess of the appropriation for such fiscal year and if the requirements of this program exceed the limitations set herein the benefits shall be reduced to the extent necessary to comply with the provisions of this subsection. Senate Precedent PRL19840613-002 (June 13, 1984) (LEGIS, Rules database). For an example of an application of language similar to this, see, e.g., National and Community Service Act of 1989, § 250(a), S. 1430, 101st Cong. 2d Sess., 136 CONG. REC. S1,672, S1,684 (Feb. 27, 1990) (§ 432A(c) of the material proposed to be inserted). To avoid a point of order caused by the creation of new entitlement authority, however, it is not necessarily sufficient to include language that the payments must come out of an appropriated account; the language must make the payments themselves subject to appropriations. See 130 CONG. REC. S7,107, S7,109-10 (June 13, 1984) (parliamentary inquiry and statement of Sen. Domenici). Some thus refer to "appropriated entitlements" that fall within the meaning of section 401(c)(2)(C). (See, e.g., infra note 1162 (listing "APPROPRIATED ENTITLEMENTS AND MANDATORIES").) Even though the Government pays such appropriated entitlements out of appropriated funds, annual appropriations do not truly control them. That the entitlement is paid from appropriated funds any person or government if, under the provisions of the law containing such authority, the United States is obligated to make such payments to persons or governments who meet the requirements established by such law; (D) to forgo the collection by the United States of proprietary offsetting receipts, the budget authority 610 for which is not provided in advance by appropriation Acts❝ll to offset such forgone receipts; and 611 (E) to make payments by the United States (including loans, grants, and payments from revolving funds) other than those covered by subparagraph (A), (B),613 (C),614 or (D),615 the budget authority' for which is not provided in advance by appro 612 616 609 (...continued) cannot, without more, remove the entitlement from the definition of section 401(c)(2)(C), for, as the Constitution requires, "No Money shall be drawn from the Treasury, but in consequence of Appropriations made by Law." U.S. CONST. art. I, § 9, cl. 7. Thus, all entitlements provide for appropriations, either implicitly or explicitly. Section 3(5) defines "appropriation Act" by reference to 1 U.S.C. § 105. See supra p. 16. The text of 1 U.S.C. § 105 (1988) (see supra note 30) deals with regular appropriations bills. Section 401(c)(2)(C) thus refers to authority that regular appropriations acts do not control. 610 Section 3(2) defines "budget authority." See supra pp. 11-13. 611 For a discussion of whether something is "provided in advance by appropriation Acts," see generally supra note 609. Section 3(5) defines "appropriation Act" by reference to 1 U.S.C. § 105. See supra p. 16. For the text of 1 U.S.C. § 105 (1988), see supra note 30. priation Acts.6117 Such term does not include authority to insure or guarantee the repayment of indebtedness incurred by another person or government. (1) Subsections (a) 618 and (b) 619 shall not apply to new spending authority 620 if the budget authority621 for outlays 622 which will result from such new spending authority is derived - (A) from a trust fund623 established by the Social Security Act624 (as in effect on the date of the enactment of this Act 25); or 617 For a discussion of whether something is "provided in advance by appropriation Acts," see generally supra note 609. Section 3(5) defines "appropriation Act" by reference to 1 U.S.C. § 105. See supra p. 16. For the text of 1 U.S.C. § 105 (1988), see supra note 30. 620 See supra pp. 200-202. Section 401(c) defines "new spending authority." See supra pp. 202-206. 621 Section 3(2) defines "budget authority." See supra pp. 11-13. - That is: - the Federal Old-Age and Survivors Insurance Trust Fund, - the Federal Disability Insurance Trust Fund, - the Unemployment Trust Fund, -- the Federal Hospital Insurance Trust Fund, and - - the Federal Supplementary Medical Insurance Trust Fund. 624 The Social Security Act is codified as amended at 42 U.S.C. §§ 301-1397e (1988). 625 That date is July 12, 1974, the date of enactment of the Congressional Budget Act. Note that the drafters of Gramm-Rudman-Hollings made clear when they meant the date of enactment of Gramm-Rudman-Hollings instead of the date of enactment of the |