§102. Sec. 2. Declaration of Purposes.

CBA (Contents)

Congressional Budget Act of 1974

Section 2

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Declaration of Purposes

Sec. 2. The Congress declares that it is essential—

(1) to assure effective congressional control over the budgetary process;

(2) to provide for the congressional determination each year of the appropriate level of Federal revenues and expenditures;

(3) to provide a system of impoundment control;

(4) to establish national budget priorities; and

(5) to provide for the furnishing of information by the executive branch in a manner that will assist the Congress in discharging its duties.

 

 

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Counsel Notes
Codification

This section is classified to the U.S. Code at 2 U.S.C. 621.

The U.S. Code omits section 1 of the Congressional Budget and Impoundment Control Act of 1974 and thus this is the first section of that Act appearing in the Code. See the Legislative History Notes for section 1 for information related to that section. Some of the below notes, since they were derived from the U.S. Code, include references from the Notes from section 621 as set out in the title 2 of the U.S. Code.

Elastic Clause

This section should also be read in conjunction with section 301(b)(4), which is known as “the elastic clause.” That section allows budget resolutions to include material that is not identified specifically, allowing the inclusion of provisions that “set forth such other matters, and require such other procedures, relating to the budget, as may be appropriate to carry out the purposes of this Act.”  [Italics added]

Congressional Research Service Report

Legislative History

The following description of this section was included in a CRS report prepared in 1975: 

Neither the Joint Study Committee bill nor H.R. 7130 as passed by the House contained a statement of purposes. A declaration of purposes was formulated by the Senate Government Operations Committee during its markup of S. 1541. This declaration was expanded by the Senate Committee on Rules and Administration into two subsections, one detailing the purposes of the Act, the other listing its “means of accomplishment.” The conference report combined the two subsections into a statement of purposes that reflects the final version of the Act.

The Congressional Budget Act of 1974 (P.L. 93-344): Legislative History and Analysis, Order Code 75-94 S, CRS Report for Congress (Congressional Research Service, February 26, 1975). p. 45.

SECTION 2 (CBA AS ENACTED)

Sec. 2. Declaration of purposes. as enacted in the Congressional Budget Act of 1974

SECTION 2 (BPLA)

Section 2 (BPLA), as set out in the Budget Process Law Annotated (1993).

Legislative History Notes
Additional Explanatory Material

This section is the first in the Congressional Budget and Impoundment Control Act of 1974 to be codified, the short title and table of contents in section 1 are omitted from the U.S. Code as is typical. This legislative history includes material on items that are not in the U.S. Code but were in the law as enacted. The BCR, however, includes everything that was in the Act, plus additional material not found in the Code. 

Public Laws

The Congressional Budget and Impoundment Control Act of 1974 (Pub. L. 93–344, §2, July 12, 1974, 88 Stat. 298) enacted this section into law. It has not been amended since enactment.

Codification

This section was formerly classified to section 1301 of Title 31.  The general  general revision and enactment of Title 31, Money and Finance by Pub. L. 97–258, §1, Sept. 13, 1982, 96 Stat. 877 (which has no short title, but referred to on the HB Counsel site as the “Title 31 Revision and Codification Law of 1982“).

Effective Date 

Section 905 of the Congressional Budget and Impoundment Control Act of 1974 (Pub. L. 93–344, title IX, §905, July 12, 1974, 88 Stat. 331) set forth the dates the Act first took effect. This Act did not include expiration dates, meaning dates on which it would no longer be effective. The effective dates were repealed as obsolete by the Budget Enforcement Act of 1997 (Pub. L. 105–33, title X, §10120(a), Aug. 5, 1997, 111 Stat. 696). See also section 10120 of the BEA 1997, for the legislative text and the joint statement of managers description.

Provisions  of the Congressional  budgt and impoundment control act  not classified to the u.s. code

The  below provisions have not been classified  to the U.S. Code, but are set forth under  their respective sections under the law and the part of the CBA being amended, as indicated. These  are included here because the  Notes in the U.S.Code places them in in section 621, which classifies  this section  of the CBA, and it is the first section of  the Act  so  classified. Section 1, the Short Title and Table of Contents,  has not been included below since it precedes this section,  but may be found  here: Section  1.

The CBA has been amended a number of times, among the more important are as follows:

Financial Safety and Soundness of Government-Sponsored Enterprises 

Sec. 13501 of the Budget Enforcement Act of 1990 (Pub. L. 101–508, title XIII, §13501, Nov. 5, 1990, 104 Stat. 1388–628) provided that:

Sec. 13501 financial safety and soundness of government-sponsored enterprises.

(a) Definition.—For purposes of this section, the terms ‘Government-sponsored enterprise’ and ‘GSE’ mean the Farm Credit System (including the Farm Credit Banks, Banks for Cooperatives, and Federal Agricultural Mortgage Corporation), the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Student Loan Marketing Association.

(b) Treasury Department Study and Proposed Legislation.—

“(1) The Department of the Treasury shall prepare and submit to Congress no later than April 30, 1991, a study of GSEs and recommended legislation.

“(2) The study shall include an objective assessment of the financial soundness of GSEs, the adequacy of the existing regulatory structure for GSEs, the financial exposure of the Federal Government posed by GSEs, and the effects of GSE activities on Treasury borrowing.

(c) Congressional Budget Office Study.—

(1) The Congressional Budget Office shall prepare and submit to Congress no later than April 30, 1991, a study of GSEs.

(2) The study shall include an analysis of the financial risks each GSE assumes, how Congress may improve its understanding of those risks, the supervision and regulation of GSEs’ risk management, the financial exposure of the Federal Government posed by GSEs, and the effects of GSE activities on Treasury borrowing. The study shall also include an analysis of alternative models for oversight of GSEs and of the costs and benefits of each alternative model to the Government and to the markets and beneficiaries served by GSEs.

(d) Access to Relevant Information.—

(1) For the studies required by this section, each GSE shall provide full and prompt access to the Secretary of the Treasury and the Director of the Congressional Budget Office to its books and records and other information requested by the Secretary of the Treasury or the Director of the Congressional Budget Office.

(2) In preparing the studies required by this section, the Secretary of the Treasury and the Director of the Congressional Budget Office may request information from, or the assistance of, any Federal department or agency authorized by law to supervise the activities of a GSE.

(e) Confidentiality of Relevant Information.—

(1) The Secretary of the Treasury and the Director of the Congressional Budget Office shall determine and maintain the confidentiality of any book, record, or information made available by a GSE under this section in a manner consistent with the level of confidentiality established for the material by the GSE involved.

(2) The Department of the Treasury shall be exempt from section 552 of title 5, United States Code, for any book, record, or information made available under subsection (d) and determined by the Secretary of the Treasury to be confidential under this subsection.

(3) Any officer or employee of the Department of the Treasury shall be subject to the penalties set forth in section 1906 of title 18, United States Code, if-

(A) by virtue of his or her employment or official position, he or she has possession of or access to any book, record, or information made available under and determined to be confidential under this section; and

(B) he or she discloses the material in any manner other than-

(i) to an officer or employee of the Department of the Treasury; or

(ii) pursuant to the exception set forth in such section 1906.

(4) The Congressional Budget Office shall be exempt from section 203 of the Congressional Budget Act of 1974 [2 U.S.C. 603] with respect to any book, record, or information made available under this subsection and determined by the Director to be confidential under paragraph (1).

(f) Requirements to Report  Legislation.—(1) The committees of jurisdiction in the House shall prepare and report to the House no later than September 15, 1991, legislation to ensure the financial soundness of GSEs and to minimize the possibility that a GSE might require future assistance from the Government.

(2) It is the sense of the Senate that the committees of jurisdiction in the Senate shall prepare and report to the Senate no later than September 15, 1991, legislation to ensure the financial safety and soundness of GSEs and to minimize the possibility that a GSE might require future assistance from the Government.

(f) [sic] President’s  Budget.—The President’s annual budget submission shall include an analysis of the financial condition of the GSEs and the financial exposure of the Government, if any, posed by GSEs.” 

Multiyear Authorizations and 2-Year Appropriations for Selected Agencies and Accounts 

Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Pub. L. 100–119, title II, §201, Sept. 29, 1987, 101 Stat. 784  provided that:

Sec. 201. 2-year appropriations.

It is the sense of the Congress that the Congress should undertake an experiment with multiyear authorizations and 2-year appropriations for selected agencies and accounts. An evaluation of the efficacy and desirability of such experiment should be conducted at the end of the 2-year period. The appropriate committees are directed to develop a plan in consultation with the leadership of the House and Senate to implement this experiment.

Financial Management Reform

Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Pub. L. 100–119, title II, §203, Sept. 29, 1987, 101 Stat. 784) provided that:

sec. 203. financial management reform.

It is the sense of the Congress that the Congress should undertake a coordinated effort to identify problems and develop specific recommendations to reform the financial management systems of the United States Government, including consideration of the use of generally accepted accounting principles.” 

Exercise of Congressional Rulemaking Power

Section 904 of the Congressional Budget and Impoundment Control Act of 1974 (CBA)(Pub. L. 93–344, title IX, §904, July 12, 1974, 88 Stat. 331) stated that certain provisions were enacted as an exercise of Congressional rulemaking authority.

Section 904 of CBA, as amended, provides that:

exercise of rulemaking power

Sec. 904. (a) The provisions of this title and of titles I, III, IV, and V and the provisions of sections 701, 703, and 1017 [enacting this chapter (except subchapter IV) and sections 190a–3 and 688 of Title 2 of the U.S. Code, amending the Rules of the House of Representatives and the Standing Rules of the Senate, and sections 190b and 190d of Title 2 of the U.S. Code, and enacting provisions set out as notes under this section and sections 190a–1 and 632 of Title 2 of the U.S. Code] are enacted by the Congress-

(1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and

(2) with full recognition of the constitutional right of either House to change such rules (so far as relating to such House) at any time, in the same manner, and to the same extent as in the case of any other rule of such House.

(b) Any provision of title III or IV  may be waived or suspended in the Senate by a majority vote of the Members voting, a quorum being present, or by the unanimous consent of the Senate.

(c) Waivers.—

(1) Permanent.—Sections 305(b)(2), 305(c)(4), 306, 310(d)(2), 313, 904(c), and 904(d) of this Act [sections 636(b)(2), (c)(4), 637, 641(d)(2), and 644 of Title 2 of the U.S. Code and subsections (c) and (d) of this note] may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

(2) Temporary.—Sections 301(i), 302(c), 302(f), 310(g), 311(a), 312(b), 312(c), 314(e), and 314(f) of this Act [sections 632(i), 633(c), (f), 641(g), 642(a), 643(b), (c), and 645(e), (f) of Title 2 of the U.S. Code] and sections 258(a)(4)(C), 258A(b)(3)(C)(i), 258B(f)(1), 258B(h)(1), 258B(h)(3), 258C(a)(5), and 258C(b)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 [sections 907a(a)(4)(C), 907b(b)(3)(C)(i), 907c(f)(1), (h)(1), (3), and 907d(a)(5), (b)(1) of Title 2 of the U.S. Code] may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

(d) Appeals.—

(1) Procedure.—Appeals in the Senate from the decisions of the Chair relating to any provision of title III or IV [enacting subchapters I and II of this chapter] or section 1017 [section 688 of Title 2 of the U.S. Code] shall, except as otherwise provided therein, be limited to 1 hour, to be equally divided between, and controlled by, the mover and the manager of the resolution, concurrent resolution, reconciliation bill, or rescission bill, as the case may be.

(2) Permanent.—An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under sections 305(b)(2), 305(c)(4), 306, 310(d)(2), 313, 904(c), and 904(d) of this Act [sections 636(b)(2), (c)(4), 637, 641(d)(2), 644 of Title 2 of the U.S. Code and subsections (c) and (d) of this note].

(3) Temporary.—An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under sections 301(i), 302(c), 302(f), 310(g), 311(a), 312(b), 312(c), 314(e), and 314(f) of this Act and sections 258(a)(4)(C), 258A(b)(3)(C)(i), 258B(f)(1), 258B(h)(1), 258B(h)(3), 258C(a)(5), and 258C(b)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985.

(e) Expiration of Certain Supermajority Voting Requirements.—Subsections (c)(2) and (d)(3) shall expire on September 30, 2002.

The Line Item Veto Act’s amendment of section 904 of the Congressional Budget Act of 1974 (Pub. L. 93–344), set out above was reversed pursuant to section 5 of that same Act (Line Item Veto Act, Pub. L. 104-130, 110 Stat. 2105) . It did so by setting forth  Effective and Termination Dates which caused the section to expire. See also section 691 of Title 2 of the U.S. Code.]

 

 

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