112TH CONGRESS " ! REPORT 2d Session HOUSE OF REPRESENTATIVES 112–470 SEQUESTER REPLACEMENT RECONCILIATION ACT OF 2012 R E P O R T OF THE COMMITTEE ON THE BUDGET HOUSE OF REPRESENTATIVES TO ACCOMPANY H.R. 5652 A BILL TO PROVIDE FOR RECONCILIATION PURSUANT TO SEC- TION 201 OF THE CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2013 together with MINORITY VIEWS MAY 9, 2012.—Committed to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate Mar 15 2010 09:37 May 14, 2012 Jkt 074116 PO 00000 Frm 00001 Fmt 6012 Sfmt 6012 E:\HR\OC\HR470.XXX HR470 rmajette on DSK2TPTVN1PROD with HEARING E:\Seals\Congress.#13 SEQUESTER REPLACEMENT RECONCILIATION ACT OF 2012 VerDate Mar 15 2010 09:37 May 14, 2012 Jkt 074116 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 E:\HR\OC\HR470.XXX HR470 rmajette on DSK2TPTVN1PROD with HEARING with DSK2TPTVN1PROD on rmajette 1 112TH CONGRESS " ! REPORT 2d Session HOUSE OF REPRESENTATIVES 112–470 SEQUESTER REPLACEMENT RECONCILIATION ACT OF 2012 R E P O R T OF THE COMMITTEE ON THE BUDGET HOUSE OF REPRESENTATIVES TO ACCOMPANY H.R. 5652 A BILL TO PROVIDE FOR RECONCILIATION PURSUANT TO SEC- TION 201 OF THE CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2013 together with MINORITY VIEWS MAY 9, 2012.—Committed to the Committee of the Whole House on the State of the Union and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 74–116 WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202–512–1800, or 866–512–1800 (toll-free). E-mail, [email protected]. VerDate Mar 15 2010 09:37 May 14, 2012 Jkt 074116 PO 00000 Frm 00003 Fmt 5012 Sfmt 5012 E:\HR\OC\HR470.XXX HR470 rmajette on DSK2TPTVN1PROD with HEARING E:\Seals\Congress.#13 COMMITTEE ON THE BUDGET PAUL RYAN, Wisconsin, Chairman SCOTT GARRETT, New Jersey CHRIS VAN HOLLEN, Maryland, MICHAEL K. SIMPSON, Idaho Ranking Minority Member JOHN CAMPBELL, California ALLYSON Y. SCHWARTZ, Pennsylvania KEN CALVERT, California MARCY KAPTUR, Ohio W. TODD AKIN, Missouri LLOYD DOGGETT, Texas TOM COLE, Oklahoma EARL BLUMENAUER, Oregon TOM PRICE, Georgia BETTY MCCOLLUM, Minnesota TOM MCCLINTOCK, California JOHN A. YARMUTH, Kentucky JASON CHAFFETZ, Utah BILL PASCRELL, JR., New Jersey MARLIN A. STUTZMAN, Indiana MICHAEL M. HONDA, California JAMES LANKFORD, Oklahoma TIM RYAN, Ohio DIANE BLACK, Tennessee DEBBIE WASSERMAN SCHULTZ, Florida REID J. RIBBLE, Wisconsin GWEN MOORE, Wisconsin BILL FLORES, Texas KATHY CASTOR, Florida MICK MULVANEY, South Carolina HEATH SHULER, North Carolina TIM HUELSKAMP, Kansas KAREN BASS, California TODD C. YOUNG, Indiana SUZANNE BONAMICI, Oregon JUSTIN AMASH, Michigan TODD ROKITA, Indiana FRANK C. GUINTA, New Hampshire ROB WOODALL, Georgia PROFESSIONAL STAFF AUSTIN SMYTHE, Staff Director THOMAS S. KAHN, Minority Staff Director (II) VerDate Mar 15 2010 09:37 May 14, 2012 Jkt 074116 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 E:\HR\OC\HR470.XXX HR470 rmajette on DSK2TPTVN1PROD with HEARING C O N T E N T S Page Introduction .............................................................................................................. 3 Committee Oversight Findings ............................................................................... 10 Title I—Committee on Agriculture: Transmittal Letter ............................................................................................ 15 Brief Explanation ............................................................................................. 19 Purpose and Need ............................................................................................. 19 Section-by-Section ............................................................................................. 23 Committee Consideration ................................................................................ 24 Reporting the Bill—Roll Call Votes ................................................................ 25 Committee Oversight Findings ....................................................................... 25 Performance Goals and Objectives .................................................................. 25 Constitutional Authority Statement ............................................................... 25 Budget Act Compliance (Congressional Budget Office Estimate) ................ 25 Changes in Existing Law ................................................................................. 31 Minority Views .................................................................................................. 41 Title II—Committee on Energy and Commerce: Transmittal Letter ............................................................................................ 45 Purpose and Summary ..................................................................................... 49 Background and Need for Legislation ............................................................ 49 Hearings ............................................................................................................ 56 Committee Consideration ................................................................................ 57 Committee Votes ............................................................................................... 57 Committee Oversight Findings ....................................................................... 78 Statement of General Performance Goals and Objectives ............................ 78 New Budget Authority, Entitlement Authority, and Tax Expenditures ...... 78 Earmarks ........................................................................................................... 78 Committee Cost Estimate ................................................................................ 78 Congressional Budget Office Estimate ........................................................... 78 Federal Mandates Statement .......................................................................... 88 Advisory Committee Statement ...................................................................... 88 Constitutional Authority Statement ............................................................... 88 Applicability to Legislative Branch ................................................................. 88 Section-by-Section Analysis of the Legislation ............................................... 88 Changes in Existing Law Made by the Bill, as Reported ............................. 92 Dissenting Views .............................................................................................. 108 Title III—Committee on Financial Services: Transmittal Letter ............................................................................................ 151 Purpose and Summary ..................................................................................... 154 Background and Need for Legislation ............................................................ 155 Hearings ............................................................................................................ 160 Committee Consideration ................................................................................ 163 Committee Votes ............................................................................................... 163 Constitutional Authority Statement ............................................................... 169 Committee Oversight Findings ....................................................................... 169 Performance Goals and Objectives .................................................................. 170 New Budget Authority, Entitlement Authority, and Tax Expenditures ...... 171 Committee Cost Estimate ................................................................................ 171 Congressional Budget Office Estimate ........................................................... 171 Federal Mandates Statement .......................................................................... 182 Advisory Committee Statement ...................................................................... 182 Applicability to Legislative Branch ................................................................. 183 Earmark Identification .................................................................................... 183 (III) VerDate Mar 15 2010 09:37 May 14, 2012 Jkt 074116 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 E:\HR\OC\HR470.XXX HR470 rmajette on DSK2TPTVN1PROD with HEARING IV Page Title III—Committee on Financial Services—Continued Section-by-Section Analysis of the Legislation ............................................... 184 Changes in Existing Law ................................................................................. 191 Dissenting Views .............................................................................................. 358 Title IV—Committee on the Judiciary: Transmittal Letter ............................................................................................ 363 Summary of the Major Policy Decisions in the Legislation .......................... 365 Background and Need for the Legislation ...................................................... 365 Report Language: Section-by-Section .............................................................. 412 Advisory on Earmarks ..................................................................................... 413 Committee Oversight Findings ......................................................................