S. 18 – Sequester Replacement and Spending Reduction Act of 2013

113th CONGRESS

1st Session

S. 18

IN THE SENATE OF THE UNITED STATES

February 27, 2013

Ms. Ayotte (for herself, Mr. McCain, Mr. Graham, and Mr. Inhofe) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to replace the sequester established by the Budget Control Act of 2011.

Short title; table of contents

(a)

Short title

This Act may be cited as theSequester Replacement and Spending Reduction Act of 2013.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Budget resource savings

Sec. 101. Savings applied to the fiscal year 2013 discretionary sequester.

TITLE II—Agriculture

Sec. 201. Standard utility allowances based on the receipt of energy assistance payments.

TITLE III—Social security number required to claim the refundable portion of the child tax credit

Sec. 301. Social security number required to claim the refundable portion of the child tax credit.

TITLE IV—Entitlement programs

Sec. 401. Ending unemployment payments to jobless millionaires and billionaires.

Sec. 402. Recapture of overpayments resulting from certain federally-subsidized health insurance.

TITLE V—Financial services

Sec. 501. Bringing the Bureau of Consumer Financial Protection into the regular appropriations process.

TITLE VI—Congressional action

Sec. 601. Congressional action on a budget resolution.

Sec. 602. Preventing duplicative and overlapping government programs.

TITLE VII—Consolidating unnecessary and duplicative and overlapping government programs

Sec. 701. Consolidating unnecessary duplicative and overlapping government programs.

TITLE VIII—Compensation and retirement for Federal employees and Members of Congress

Subtitle A—Compensation

Sec. 801. Extension of pay freeze for Federal employees.

Sec. 802. No cost-of-living adjustments for Members of Congress.

Sec. 803. Cap adjustment to preserve savings from extension of Federal pay freeze.

Subtitle B—Retirement reforms

PART I—Federal employees generally

Sec. 851. Increase in Federal employee and Member of Congress retirement contributions to Federal Employees Retirement System.

Sec. 852. Increase in Federal employee and Member of Congress retirement contributions to Civil Service Retirement System.

Sec. 853. Annuity supplement.

PART II—Other retirement systems

Sec. 861. Foreign Service Retirement and Disability System.

Sec. 862. Foreign Service Pension System.

Sec. 863. Central Intelligence Agency Retirement and Disability System.

TITLE IX—Reduction in cost sharing under ACA

Sec. 901. Reduction in cost sharing under ACA.

Budget resource savings

101.

Savings applied to the fiscal year 2013 discretionary sequester

(a)

Discretionary sequester

Notwithstanding any other provision of law, the sequester for fiscal year 2013 for discretionary spending under section 251A(7)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 shall not be implemented.

(b)

Lowering the 2013 caps

The discretionary caps for fiscal year 2013 provided in section 251 of the Balanced Budget and Emergency Deficit Control Act 1985, as modified by section 251A of such Act, are reduced by $10,000,000,000 in the security category and $10,000,000,000 in the non-security category.

Agriculture

201.

Standard utility allowances based on the receipt of energy assistance payments

(a)

Standard utility allowance

Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—

(1)

in subsection (e)(6)(C) by striking clause (iv), and

(2)

in subsection (k) by striking paragraph (4) and inserting the following:

(4)

Third party energy assistance payments

For purposes of subsection (d)(1), a payment made under a State law (other than a law referred to in paragraph (2)(G)) to provide energy assistance to a household shall be considered money payable directly to the household.

(b)

Conforming amendments

Section 2605(f)(2) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)) is amended—

(1)

by striking and for purposes of determining any excess shelter expense deduction under section 5(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)); and

(2)

in subparagraph (A) by inserting before the semicolon the following: , except that such payments or allowances shall not be deemed to be expended for purposes of determining any excess shelter expense deduction under section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)).

III

Social security number required to claim the refundable portion of the child tax credit

301.

Social security number required to claim the refundable portion of the child tax credit

(a)

In general

Subsection (d) of section 24 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(5)

Identification requirement with respect to taxpayer

(A)

In general

Paragraph (1) shall not apply to any taxpayer for any taxable year unless the taxpayer includes the taxpayer’s Social Security number on the return of tax for such taxable year.

(B)

Joint returns

In the case of a joint return, the requirement of subparagraph (A) shall be treated as met if the Social Security number of either spouse is included on such return.

(C)

Limitation

Subparagraph (A) shall not apply to the extent the tentative minimum tax (as defined in section 55(b)(1)(A)) exceeds the credit allowed under section 32.

(b)

Omission treated as mathematical or clerical error

Subparagraph (I) of section 6213(g)(2) of such Code is amended to read as follows:

(I)

an omission of a correct Social Security number required under section 24(d)(5) (relating to refundable portion of child tax credit), or a correct TIN under section 24(e) (relating to child tax credit), to be included on a return,

(c)

Conforming amendment

Subsection (e) of section 24 of such Code is amended by inserting With Respect to Qualifying Children after Identification Requirement in the heading thereof.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

Entitlement programs

401.

Ending unemployment payments to jobless millionaires and billionaires

(a)

Prohibition

Notwithstanding any other provision of law, no Federal funds may be used to make payments of unemployment compensation (including such compensation under the Federal-State Extended Compensation Act of 1970 and the emergency unemployment compensation program under title IV of the Supplemental Appropriations Act, 2008) to an individual whose adjusted gross income in the preceding year was equal to or greater than $1,000,000.

(b)

Compliance

Unemployment Insurance applications shall include a form or procedure for an individual applicant to certify the individual's adjusted gross income was not equal to or greater than $1,000,000 in the preceding year.

(c)

Audits

The certifications required by (b) shall be auditable by the U.S. Department of Labor or the U.S. Government Accountability Office.

(d)

Status of applicants

It is the duty of the states to verify the residency, employment, legal, and income status of applicants for Unemployment Insurance and no Federal funds may be expended for purposes of determining an individual's eligibility under this Act.

(e)

Effective date

The prohibition under subsection (a) shall apply to weeks of unemployment beginning on or after the date of the enactment of this Act.

402.

Recapture of overpayments resulting from certain federally-subsidized health insurance

(a)

In general

Paragraph (2) of section 36B(f) of the Internal Revenue Code of 1986 is amended by striking subparagraph (B).

(b)

Conforming amendment

So much of paragraph (2) of section 36B(f) of such Code, as amended by subsection (a), as precedes advance payments is amended to read as follows:

(2)

Excess advance payments

If the

(c)

Effective date

The amendments made by this section shall apply to taxable years ending after December 31, 2013.

Financial services

501.

Bringing the Bureau of Consumer Financial Protection into the regular appropriations process

Section 1017 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497) is amended—

(1)

in subsection (a)—

(A)

by amending the heading of such subsection to read as follows: Budget, financial management, and audit.—;

(B)

by striking paragraphs (1), (2), and (3);

(C)

by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively; and

(D)

by striking subparagraphs (E) and (F) of paragraph (1), as so redesignated;

(2)

by striking subsections (b), (c), and (d);

(3)

by redesignating subsection (e) as subsection (b); and

(4)

in subsection (b), as so redesignated—

(A)

by striking paragraphs (1), (2), and (3) and inserting the following:

(1)

Authorization of appropriations

There is authorized to be appropriated $200,000,000 to carry out this title for each of fiscal years 2013 and 2014.

; and

(B)

by redesignating paragraph (4) as paragraph (2).

Congressional action

601.

Congressional action on a budget resolution

Section 303 of the Congressional Budget Act of 1974 is amended by—

(1)

striking subsection (a) and inserting the following: After April 15 and unless the concurrent resolution on the budget for a fiscal year has been adopted for the budget year, it shall not be in order in the House of Representatives or the Senate to consider any bill or joint resolution, amendment or motion thereto, or conference report thereon. This section may be waived or suspended for an emergency by a vote of three-fifths of the Members, duly chosen and sworn.;

(2)

striking subsections (b) and (c); and

(3)

by striking its section heading and inserting the following new section heading: consideration of legislation before budget is adopted.

602.

Preventing duplicative and overlapping government programs

(a)

Reported legislation

Paragraph 11 of rule XXVI of the Standing Rules of the Senate is amended—

(1)

in subparagraph (c), by striking and (b) and inserting (b), and (c);

(2)

by redesignating subparagraph (c) and subparagraph (d); and

(3)

by inserting after subparagraph (b) the following:

(c)

The report accompanying each bill or joint resolution of a public character reported by any committee (including the Committee on Appropriations and the Committee on the Budget) shall contain—

(1)

an analysis by the Congressional Research Service to determine if the bill or joint resolution creates any new Federal program, office, or initiative that would duplicate or overlap any existing Federal program, office, or initiative with similar mission, purpose, goals, or activities along with a listing of all of the overlapping or duplicative Federal program or programs, office or offices, or initiative or initiatives; and

(2)

an explanation provided by the committee as to why the creation of each new program, office, or initiative is necessary if a similar program or programs, office or offices, or initiative or initiatives already exist.

(b)

Senate

Rule XVII of the Standing Rules of the Senate is amended by inserting at the end thereof the following:

6. (a)

It shall not be in order in the Senate to proceed to any bill or joint resolution unless the committee of jurisdiction has prepared and posted on the committee website an overlapping and duplicative programs analysis and explanation for the bill or joint resolution as described in subparagraph (b) prior to proceeding.

(b)

The analysis and explanation required by this subparagraph shall contain—

(1)

(2)

(c)

This paragraph may be waived by joint agreement of the Majority Leader and the Minority Leader of the Senate upon their certification that such waiver is necessary as a result of—

(1)

a significant disruption to Senate facilities or to the availability of the Internet; or

(2)

an emergency as determined by the leaders.

VII

Consolidating unnecessary and duplicative and overlapping government programs

701.

Consolidating unnecessary duplicative and overlapping government programs

Notwithstanding any other provision of law and not later than 150 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall coordinate with the heads of the relevant department and agencies to—

(1)

use available administrative authority to eliminate, consolidate, or streamline Government programs and agencies with duplicative and overlapping missions identified in the—

(A)

March 2011 Government Accountability Office report to Congress entitled Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue (GAO 11 318SP); and

(B)

February 2012 Government Accountability Office report to Congress entitled 2012 Annual Report: Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue (GAO 12 342SP);

(2)

identify and report to Congress any legislative changes required to further eliminate, consolidate, or streamline Government programs and agencies with duplicative and overlapping missions identified in the—

(A)

March 2011 Government Accountability Office report to Congress entitled Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue (GAO 11 318SP); and

(B)

(3)

determine the total cost savings that shall result to each agency, office, and department from the actions described in paragraph (1); and

(4)

rescind from the appropriate accounts and apply the savings towards deficit reduction the amount greater of—

(A)

$10,000,000,000; or

(B)

the total amount of cost savings estimated by paragraph (3).

VIII

Compensation and retirement for Federal employees and Members of Congress

Compensation

801.

Extension of pay freeze for Federal employees

(a)

In general

Section 147 of the Continuing Appropriations Act, 2011 (Public Law 111–242; 5 U.S.C. 5303 note) is amended—

(1)

in subsection (b)(1), by striking December 31, 2012 and inserting December 31, 2014; and

(2)

in subsection (c), by striking December 31, 2012 and inserting December 31, 2014.

(b)

Clarification that freeze applies to the legislative branch

(1)

Members of Congress

Notwithstanding any other provision of law, no adjustment shall be made under section 601(a) of the Legislative Reorganization Act of 1946 (2 U.S.C. 31) (relating to cost of living adjustments for Members of Congress) during the period beginning on the date of enactment of this Act and ending on December 31, 2014.

(2)

Legislative branch employees

(A)

Definition

In this paragraph, the term legislative branch employee means—

(i)

an employee whose pay is disbursed by the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives; and

(ii)

an employee of any agency established in the legislative branch.

(B)

Freeze

Notwithstanding any other provision of law, no cost of living adjustment required by statute with respect to a legislative branch employee that would otherwise take effect during the period beginning on the date of enactment of this Act and ending on December 31, 2014 shall be made.

(c)

Conforming amendment

Section 114 of the Continuing Appropriations Resolution, 2013 (Public Law 112–175; 5 U.S.C. 5303 note) is repealed.

802.

No cost-of-living adjustments for Members of Congress

Notwithstanding any other provision of law, no adjustment shall be made under section 601(a) of the Legislative Reorganization Act of 1946 (2 U.S.C. 31) (relating to cost-of-living adjustments for Members of Congress) for any fiscal year in which the Congressional Budget Office determines there is a Federal budget deficit.

803.

Cap adjustment to preserve savings from extension of Federal pay freeze

The discretionary caps provided in section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985, as modified by section 251A of such Act, are reduced as follows for the respective fiscal year and the respective category:

(1)

for fiscal year 2014—

(A)