the Director of the Congressional Budget Office an estimate of the budgetary effects of PAYGO legislation. "(B) Estimates shall be prepared using baseline estimates supplied by the Congressional Budget Office, consistent with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985. "(C) The Director shall not count timing shifts, as that term is defined at section 3(8) of the Statutory PayAs-You-Go Act of 2010, in estimates of the budgetary effects of PAYGO Legislation.". (B) SIDEHEADING.-The side heading of section 308(a) of the Congressional Budget Act of 1974 is amended by striking "Reports on". (2) GUIDELINES.-Section 308 of the Congressional Budget Act of 1974 is amended by adding at the end the following new subsection: "(d) Scorekeeping Guidelines.-Estimates under this section shall be provided in accordance with the scorekeeping guidelines determined under section 252(d)(5) of the Balanced Budget and Emergency Deficit Control Act of 1985.". (c) CURRENT POLICY ADJUSTMENTS FOR CERTAIN LEGISLATION.— (1) IN GENERAL.-For any provision of legislation that meets the criteria in subsection (c), (d), (e) or (f) of section 7, the Chairs of the Committees on the Budget of the House and Senate, as applicable, shall request that CBO adjust the estimate of budgetary effects of that legislation pursuant to paragraph (2) for the purposes of this title. A single piece of legislation may contain provisions that meet criteria in more than one of the subsections referred to in the preceding sentence. CBO shall adjust estimates for legislation designated under subsection (a) and estimated under subsection (b). OMB shall adjust estimates for legislation estimated under subsection (d)(3). (2) ADJUSTMENTS. (A) ESTIMATES.-CBO or OMB, as applicable, shall exclude from the estimate of budgetary effects any budgetary effects of a provision that meets the criteria in subsection (c), (d), (e) or (f) of section 7, to the extent that those budgetary effects, when combined with all other excluded budgetary effects of any other previously designated provisions of enacted legislation under the same subsection of section 7, do not exceed the maximum applicable current policy adjustment defined under the applicable subsection of section 7 for the applicable 10year period. (B) BASELINE.-Any estimate made pursuant to subparagraph (A) shall be prepared using baseline estimates supplied by the Congressional Budget Office, consistent with section 257 of the BBEDCA. CBO estimates of legislation adjusted for current policy shall include a separate presentation of costs excluded from the calculation of budgetary effects for the legislation, as well as an updated total of all excluded costs of provisions within subsection (c), (d), or (e) of section 7, as applicable, and in the case of paragraph (1) of section 7(f), within any of the subparagraphs (A) through (L) of such paragraph, as applicable. (3) LIMITATION ON AVAILABILITY OF EXCESS SAVINGS. (A) PROHIBITION ON USE OF EXCESS SAVING FOR INELIGIBLE POLICIES.-To the extent the adjustment for current policy of any provision estimated under this subsection exceeds the estimated budgetary effects of that provision, these excess savings shall not be available to offset the costs of any provisions not otherwise eligible for a current policy adjustment under section 7, and shall not be counted on the PAYGO scorecards established pursuant to subsections (d)(4) and (d)(5). (B) PROHIBITION ON USE OF EXCESS SAVINGS ACROSS BUDGET AREAS.-For provisions eligible for a current policy adjustment under subsections (c) through (f) of section 7, to the extent the adjustment for current policy of any provision exceeds the estimated budgetary effects of that same provision, the excess savings shall be available only to offset the costs of other provisions that qualify for a current policy adjustment in that same subsection. Each paragraph in section 7(f)(1) shall be considered a separate subsection for purposes of this section. (4) FURTHER GUIDANCE ON ESTIMATING BUDGETARY EFFECTS.—Estimates of budgetary effects under this subsection shall be consistent with the guidance provided at section 7(h). (5) INCLUSION OF STATEMENT.-For PAYGO legislation adjusted pursuant to section 7, the Chairman of the House or Senate Budget Committee, as applicable, shall include in any statement titled "Budgetary Effects of PAYGO Legislation", submitted for that legislation pursuant to section 4, an explanation of the current policy designation and adjustments. (d) OMB PAYGO SCORECARDS. (1) IN GENERAL.-OMB shall maintain and make publicly Public available a continuously updated document containing two information. PAYGO scorecards displaying the budgetary effects of PAYGO legislation as determined under section 308 of the Congressional Budget Act of 1974, applying the look-back requirement in subsection (e) and the averaging requirement in subsection (f), and a separate addendum displaying the estimates of the costs of provisions designated in statute as emergency require ments. (2) ESTIMATES IN LEGISLATION.-Except as provided in paragraph (3), in making the calculations for the PAYGO scorecards, OMB shall use the budgetary effects included by reference in the applicable legislation pursuant to subsection (a). (3) OMB PAYGO ESTIMATES.-If a PAYGO Act does not contain a valid reference to its budgetary effects consistent with subsection (a), OMB shall estimate the budgetary effects of that legislation upon its enactment. The OMB estimate shall be based on the approaches to scorekeeping set forth in section 308 of the Congressional Budget Act of 1974, as amended by this title, and subsection (g)(4), and shall use the same economic and technical assumptions as used in the most recent budget submitted by the President under section 1105(a) of title 31 of the United States Code. (4) 5-YEAR SCORECARD.-The first scorecard shall display the budgetary effects of PAYGO legislation in each year over the 5-year period beginning in the budget year. (5) 10-YEAR SCORECARD.-The second scorecard shall display the budgetary effects of PAYGO legislation in each year over the 10-year period beginning in the budget year. (6) COMMUNITY LIVING ASSISTANCE SERVICES AND SUPPORTS ACT.-Neither scorecard maintained by OMB pursuant to this subsection shall include net savings from any provisions of legislation titled "Community Living Assistance Services and Supports Act", which establishes a Federal insurance program for long-term care, if such legislation is enacted into law, or amended, subsequent to the date of enactment of this title. (e) LOOK-BACK TO CAPTURE CURRENT-YEAR EFFECTS.-For purposes of this section, OMB shall treat the budgetary effects of PAYGO legislation enacted during a session of Congress that occur during the current year as though they occurred in the budget year. (f) AVERAGING USED TO MEASURE COMPLIANCE OVER 5-YEAR AND 10-YEAR PERIODS.-OMB shall cumulate the budgetary effects of a PAYGO Act over the budget year (which includes any lookback effects under subsection (e)) and (1) for purposes of the 5-year scorecard referred to in subsection (d)(4), the four subsequent outyears, divide that cumulative total by five, and enter the quotient in the budgetyear column and in each subsequent column of the 5-year PAYGO scorecard; and (2) for purposes of the 10-year scorecard referred to in subsection (d)(5), the nine subsequent outyears, divide that cumulative total by ten, and enter the quotient in the budgetyear column and in each subsequent column of the 10-year PAYGO scorecard. (g) EMERGENCY LEGISLATION.— (1) DESIGNATION IN STATUTE.-If a provision of direct spending or revenue legislation in a PAYGO Act is enacted as an emergency requirement that the Congress so designates in statute pursuant to this section, the amounts of new budget authority, outlays, and revenue in all fiscal years resulting from that provision shall be treated as an emergency requirement for the purposes of this Act. (2) DESIGNATION IN THE HOUSE OF REPRESENTATIVES.—If a PAYGO Act includes a provision expressly designated as an emergency for the purposes of this title, the Chair shall put the question of consideration with respect thereto. (3) POINT OF ORDER IN THE SENATE. (A) IN GENERAL.-When the Senate is considering a PAYGO Act, if a point of order is made by a Senator against an emergency designation in that measure, that provision making such a designation shall be stricken from the measure and may not be offered as an amendment from the floor. (B) SUPERMAJORITY WAIVER AND APPEALS.— (i) WAIVER.-Subparagraph (A) may be waived or suspended in the Senate only by an affirmative vote of three-fifths of the Members, duly chosen and sworn. (ii) APPEALS.-Appeals in the Senate from the decisions of the Chair relating to any provision of this subsection shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the bill or joint resolution, as the case may be. An affirmative vote of three-fifths of (C) DEFINITION OF AN EMERGENCY DESIGNATION.-For (E) CONFERENCE REPORTS.—When the Senate is considering a conference report on, or an amendment between the Houses in relation to, a PAYGO Act, upon a point of order being made by any Senator pursuant to this section, and such point of order being sustained, such material contained in such conference report shall be deemed stricken, and the Senate shall proceed to consider the question of whether the Senate shall recede from its amendment and concur with a further amendment, or concur in the House amendment with a further amendment, as the case may be, which further amendment shall consist of only that portion of the conference report or House amendment, as the case may be, not so stricken. Any such motion in the Senate shall be debatable. In any case in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order. (4) EFFECT OF DESIGNATION ON SCORING.-If a provision is designated as an emergency requirement under this Act, CBO or OMB, as applicable, shall not include the budgetary effects of such a provision in its estimate of the budgetary effects of that PAYGO legislation. SEC. 5. ANNUAL REPORT AND SEQUESTRATION ORDER. (a) ANNUAL REPORT.—Not later than 14 days (excluding weekends and holidays) after Congress adjourns to end a session, OMB shall make publicly available and cause to be printed in the Federal Register an annual PAYGO report. The report shall include an up-to-date document containing the PAYGO scorecards, a description of any current policy adjustments made under section 4(c), information about emergency legislation (if any) designated under section 4(g), information about any sequestration if required by subsection (b), and other data and explanations that enhance public understanding of this title and actions taken under it. 2 USC 934. Public information. Federal Register, publication. (b) SEQUESTRATION ORDER.-If the annual report issued at President. the end of a session of Congress under subsection (a) shows a debit on either PAYGO scorecard for the budget year, OMB shall prepare and the President shall issue and include in that report a sequestration order that, upon issuance, shall reduce budgetary resources of direct spending programs by enough to offset that debit as prescribed in section 6. If there is a debit on both scorecards, the order shall fully offset the larger of the two debits. OMB shall transmit the order and the report to the House of 2 USC 935. Determination. 2 USC 936. Representatives and the Senate. If the President issues a sequestration order, the annual report shall contain, for each budget account to be sequestered, estimates of the baseline level of budgetary resources subject to sequestration, the amount of budgetary resources to be sequestered, and the outlay reductions that will occur in the budget year and the subsequent fiscal year because of that sequestration. SEC. 6. CALCULATING A SEQUESTRATION. (a) REDUCING NONEXEMPT BUDGETARY RESOURCES BY A UNIFORM PERCENTAGE. (1) IN GENERAL.-OMB shall calculate the uniform percentage by which the budgetary resources of nonexempt direct spending programs are to be sequestered such that the outlay savings resulting from that sequestration, as calculated under subsection (b), shall offset the budget-year debit, if any, on the applicable PAYGO scorecard. If the uniform percentage calculated under the prior sentence exceeds 4 percent, the Medicare programs described in section 256(d) of BBEDCA shall be reduced by 4 percent and the uniform percentage by which the budgetary resources of all other nonexempt direct spending programs are to be sequestered shall be increased, as necessary, so that the sequestration of Medicare and of all other nonexempt direct spending programs together produce the required outlay savings. (2) PROGRAMS AND ACTIVITIES IN UNIFIED BUDGET ONLY.— Subject to the exemptions set forth in section 11, OMB shall determine the uniform percentage required under paragraph (1) with respect to programs and activities contained in the unified budget only. (b) OUTLAY SAVINGS.-In determining the amount by which a sequestration offsets a budget-year debit, OMB shall count(1) the amount by which the sequestration in a crop year of crop support payments, pursuant to section 256(j) of BBEDCA, reduces outlays in the budget year and the subsequent fiscal year; (2) the amount by which the sequestration of Medicare payments in the 12-month period following the sequestration order, pursuant to section 256(d) of BBEDČA, reduces outlays in the budget year and the subsequent fiscal year; and (3) the amount by which the sequestration in the budget year of the budgetary resources of other nonexempt mandatory programs reduces outlays in the budget year and in the subsequent fiscal year. SEC. 7. ADJUSTMENT FOR CURRENT POLICIES. (a) PURPOSE.-The purpose of this section is to provide for adjustments of estimates of budgetary effects of PAYGO legislation for legislation affecting 4 areas of the budget (1) payments made under section 1848 of the Social Security Act (referred to in this section as "Payment for Physicians' Services"); (2) the Estate and Gift Tax under subtitle B of the Internal Revenue Code of 1986; (3) the AMT; and (4) provisions of EGTRRA or JGTRRA that amended the Internal Revenue Code of 1986 (or provisions in later statutes |