II 

Calendar No. 589 

109TH CONGRESS 

2D SESSION H. R. 4890 

IN THE SENATE OF THE UNITED STATES 

JUNE 23, 2006 

Received 

AUGUST 3, 2006 

Read the first time 

SEPTEMBER 5, 2006 

Read the second time and placed on the calendar 

AN ACT 

To amend the Congressional Budget and Impoundment Control Act of 1974 to provide for the expedited consideration of certain proposed rescissions of budget authority. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Legislative Line Item 

5 Veto Act of 2006’’. 


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1 SEC. 2. LEGISLATIVE LINE ITEM VETO. 

2 (a) IN GENERAL.—Title X of the Congressional 

3 Budget and Impoundment Control Act of 1974 (2 U.S.C. 

4 621 et seq.) is amended by striking all of part B (except 

5 for sections 1016 and 1013, which are redesignated as sec6 tions 1019 and 1020, respectively) and part C and insert7 ing the following: 

8 ‘‘PART B—LEGISLATIVE LINE-ITEM VETO

9 ‘‘LINE ITEM VETO AUTHORITY

10 ‘‘SEC. 1011. (a) PROPOSED CANCELLATIONS.—With11 in 45 calendar days after the enactment of any bill or joint 

12 resolution providing any discretionary budget authority, 

13 item of direct spending, or targeted tax benefit, the Presi14 dent may propose, in the manner provided in subsection 

15 (b), the cancellation of any dollar amount of such discre16 tionary budget authority, item of direct spending, or tar17 geted tax benefit. If the 45 calendar-day period expires 

18 during a period where either House of Congress stands 

19 adjourned sine die at the end of a Congress or for a period 

20 greater than 45 calendar days, the President may propose 

21 a cancellation under this section and transmit a special 

22 message under subsection (b) on the first calendar day 

23 of session following such a period of adjournment. 

24 ‘‘(b) TRANSMITTAL OF SPECIAL MESSAGE.— 

25 ‘‘(1) SPECIAL MESSAGE.— 


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1 ‘‘(A) IN GENERAL.—The President may 

2 transmit to the Congress a special message pro3 posing to cancel any dollar amounts of discre4 tionary budget authority, items of direct spend5 ing, or targeted tax benefits. 

6 ‘‘(B) CONTENTS OF SPECIAL MESSAGE.— 

7 Each special message shall specify, with respect 

8 to the discretionary budget authority, items of 

9 direct spending proposed, or targeted tax bene10 fits to be canceled— 

11 ‘‘(i) the dollar amount of discretionary 

12 budget authority, the specific item of direct 

13 spending (that OMB, after consultation 

14 with CBO, estimates to increase budget 

15 authority or outlays as required by section 

16 1017(9)), or the targeted tax benefit that 

17 the President proposes be canceled; 

18 ‘‘(ii) any account, department, or es19 tablishment of the Government to which 

20 such discretionary budget authority is 

21 available for obligation, and the specific 

22 project or governmental functions involved; 

23 ‘‘(iii) the reasons why such discre24 tionary budget authority, item of direct 


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1 spending, or targeted tax benefit should be 

2 canceled; 

3 ‘‘(iv) to the maximum extent prac4 ticable, the estimated fiscal, economic, and 

5 budgetary effect (including the effect on 

6 outlays and receipts in each fiscal year) of 

7 the proposed cancellation; 

8 ‘‘(v) to the maximum extent prac9 ticable, all facts, circumstances, and con10 siderations relating to or bearing upon the 

11 proposed cancellation and the decision to 

12 effect the proposed cancellation, and the 

13 estimated effect of the proposed cancella14 tion upon the objects, purposes, or pro15 grams for which the discretionary budget 

16 authority, item of direct spending, or the 

17 targeted tax benefit is provided; 

18 ‘‘(vi) a numbered list of cancellations 

19 to be included in an approval bill that, if 

20 enacted, would cancel discretionary budget 

21 authority, items of direct spending, or tar22 geted tax benefits proposed in that special 

23 message; and 

24 ‘‘(vii) if the special message is trans25 mitted subsequent to or at the same time 


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1 as another special message, a detailed ex2 planation why the proposed cancellations 

3 are not substantially similar to any other 

4 proposed cancellation in such other mes5 sage. 

6 ‘‘(C) DUPLICATIVE PROPOSALS PROHIB7 ITED.—The President may not propose to can8 cel the same or substantially similar discre9 tionary budget authority, item of direct spend10 ing, or targeted tax benefit more than one time 

11 under this Act. 

12 ‘‘(D) MAXIMUM NUMBER OF SPECIAL MES13 SAGES.—The President may not transmit to the 

14 Congress more than 5 special messages under 

15 this subsection related to any bill or joint reso16 lution described in subsection (a), but may 

17 transmit not more than 10 special messages for 

18 any omnibus budget reconciliation or appropria19 tion measure. 

20 ‘‘(2) ENACTMENT OF APPROVAL BILL.— 

21 ‘‘(A) DEFICIT REDUCTION.—Amounts of 

22 budget authority, items of direct spending, or 

23 targeted tax benefits which are canceled pursu24 ant to enactment of a bill as provided under 


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1 this section shall be dedicated only to reducing 

2 the deficit or increasing the surplus. 

3 ‘‘(B) ADJUSTMENT OF LEVELS IN THE

4 CONCURRENT RESOLUTION ON THE BUDGET.— 

5 Not later than 5 days after the date of enact6 ment of an approval bill as provided under this 

7 section, the chairs of the Committees on the 

8 Budget of the Senate and the House of Rep9 resentatives shall revise allocations and aggre10 gates and other appropriate levels under the ap11 propriate concurrent resolution on the budget to 

12 reflect the cancellation, and the applicable com13 mittees shall report revised suballocations pur14 suant to section 302(b), as appropriate. 

15 ‘‘(C) ADJUSTMENTS TO STATUTORY LIM16 ITS.—After enactment of an approval bill as 

17 provided under this section, the Office of Man18 agement and Budget shall revise applicable lim19 its under the Balanced Budget and Emergency 

20 Deficit Control Act of 1985, as appropriate. 

21 ‘‘(D) TRUST FUNDS AND SPECIAL

22 FUNDS.—Nothwithstanding subparagraph (A), 

23 nothing in this part shall be construed to re24 quire or allow the deposit of amounts derived 

25 from a trust fund or special fund which are 


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1 canceled pursuant to enactment of a bill as pro2 vided under this section to any other fund. 

3 ‘‘PROCEDURES FOR EXPEDITED CONSIDERATION

4 ‘‘SEC. 1012. (a) EXPEDITED CONSIDERATION.— 

5 ‘‘(1) IN GENERAL.—The majority leader of each 

6 House or his designee shall (by request) introduce 

7 an approval bill as defined in section 1017 not later 

8 than the fifth day of session of that House after the 

9 date of receipt of a special message transmitted to 

10 the Congress under section 1011(b). 

11 ‘‘(2) CONSIDERATION IN THE HOUSE OF REP12 RESENTATIVES.— 

13 ‘‘(A) REFERRAL AND REPORTING.—Any 

14 committee of the House of Representatives to 

15 which an approval bill is referred shall report it 

16 to the House without amendment not later than 

17 the seventh legislative day after the date of its 

18 introduction. If a committee fails to report the 

19 bill within that period or the House has adopt20 ed a concurrent resolution providing for ad21 journment sine die at the end of a Congress, it 

22 shall be in order to move that the House dis23 charge the committee from further consider24 ation of the bill. Such a motion shall be in 

25 order only at a time designated by the Speaker 

26 in the legislative schedule within two legislative 


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1 days after the day on which the proponent an2 nounces his intention to offer the motion. Such 

3 a motion shall not be in order after a committee 

4 has reported an approval bill with respect to 

5 that special message or after the House has dis6 posed of a motion to discharge with respect to 

7 that special message. The previous question 

8 shall be considered as ordered on the motion to 

9 its adoption without intervening motion except 

10 twenty minutes of debate equally divided and 

11 controlled by the proponent and an opponent. If 

12 such a motion is adopted, the House shall pro13 ceed immediately to consider the approval bill 

14 in accordance with subparagraph (C). A motion 

15 to reconsider the vote by which the motion is 

16 disposed of shall not be in order. 

17 ‘‘(B) PROCEEDING TO CONSIDERATION.— 

18 After an approval bill is reported or a com19 mittee has been discharged from further consid20 eration, or the House has adopted a concurrent 

21 resolution providing for adjournment sine die at 

22 the end of a Congress, it shall be in order to 

23 move to proceed to consider the approval bill in 

24 the House. Such a motion shall be in order only 

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1 islative schedule within two legislative days 

2 after the day on which the proponent announces 

3 his intention to offer the motion. Such a motion 

4 shall not be in order after the House has dis5 posed of a motion to proceed with respect to 

6 that special message. The previous question 

7 shall be considered as ordered on the motion to 

8 its adoption without intervening motion. A mo9 tion to reconsider the vote by which the motion 

10 is disposed of shall not be in order. 

11 ‘‘(C) CONSIDERATION.—The approval bill 

12 shall be considered as read. All points of order 

13 against an approval bill and against its consid14 eration are waived. The previous question shall 

15 be considered as ordered on an approval bill to 

16 its passage without intervening motion except 

17 five hours of debate equally divided and con18 trolled by the proponent and an opponent and 

19 one motion to limit debate on the bill. A motion 

20 to reconsider the vote on passage of the bill 

21 shall not be in order. 

22 ‘‘(D) SENATE BILL.—An approval bill re23 ceived from the Senate shall not be referred to 

24 committee. 

25 ‘‘(3) CONSIDERATION IN THE SENATE.— 


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1 ‘‘(A) MOTION TO PROCEED TO CONSIDER2 ATION.—A motion to proceed to the consider3 ation of a bill under this subsection in the Sen4 ate shall not be debatable. It shall not be in 

5 order to move to reconsider the vote by which 

6 the motion to proceed is agreed to or disagreed 

7 to. 

8 ‘‘(B) LIMITS ON DEBATE.—Debate in the 

9 Senate on a bill under this subsection, and all 

10 debatable motions and appeals in connection 

11 therewith (including debate pursuant to sub12 paragraph (D)), shall not exceed 10 hours, 

13 equally divided and controlled in the usual 

14 form. 

15 ‘‘(C) APPEALS.—Debate in the Senate on 

16 any debatable motion or appeal in connection 

17 with a bill under this subsection shall be limited 

18 to not more than 1 hour, to be equally divided 

19 and controlled in the usual form. 

20 ‘‘(D) MOTION TO LIMIT DEBATE.—A mo21 tion in the Senate to further limit debate on a 

22 bill under this subsection is not debatable. 

23 ‘‘(E) MOTION TO RECOMMIT.—A motion to 

24 recommit a bill under this subsection is not in 

25 order. 


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1 ‘‘(F) CONSIDERATION OF THE HOUSE

2 BILL.— 

3 ‘‘(i) IN GENERAL.—If the Senate has 

4 received the House companion bill to the 

5 bill introduced in the Senate prior to the 

6 vote required under paragraph (1)(C), then 

7 the Senate may consider, and the vote 

8 under paragraph (1)(C) may occur on, the 

9 House companion bill. 

10 ‘‘(ii) PROCEDURE AFTER VOTE ON

11 SENATE BILL.—If the Senate votes, pursu12 ant to paragraph (1)(C), on the bill intro13 duced in the Senate, then immediately fol14 lowing that vote, or upon receipt of the 

15 House companion bill, the House bill shall 

16 be deemed to be considered, read the third 

17 time, and the vote on passage of the Sen18 ate bill shall be considered to be the vote 

19 on the bill received from the House. 

20 ‘‘(b) AMENDMENTS PROHIBITED.—No amendment 

21 to, or motion to strike a provision from, a bill considered 

22 under this section shall be in order in either the Senate 

23 or the House of Representatives. 


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1 ‘‘PRESIDENTIAL DEFERRAL AUTHORITY

2 ‘‘SEC. 1013. (a) TEMPORARY PRESIDENTIAL AU3 THORITY TO WITHHOLD DISCRETIONARY BUDGET AU4 THORITY.— 

5 ‘‘(1) IN GENERAL.—At the same time as the 

6 President transmits to the Congress a special mes7 sage pursuant to section 1011(b), the President may 

8 direct that any dollar amount of discretionary budg9 et authority to be canceled in that special message 

10 shall not be made available for obligation for a pe11 riod not to exceed 45 calendar days from the date 

12 the President transmits the special message to the 

13 Congress. 

14 ‘‘(2) EARLY AVAILABILITY.—The President 

15 shall make any dollar amount of discretionary budg16 et authority deferred pursuant to paragraph (1) 

17 available at a time earlier than the time specified by 

18 the President if the President determines that con19 tinuation of the deferral would not further the pur20 poses of this Act. 

21 ‘‘(b) TEMPORARY PRESIDENTIAL AUTHORITY TO

22 SUSPEND DIRECT SPENDING.— 

23 ‘‘(1) IN GENERAL.—At the same time as the 

24 President transmits to the Congress a special mes25 sage pursuant to section 1011(b), the President may 


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1 suspend the implementation of any item of direct 

2 spending proposed to be canceled in that special 

3 message for a period not to exceed 45 calendar days 

4 from the date the President transmits the special 

5 message to the Congress. 

6 ‘‘(2) EARLY AVAILABILITY.—The President 

7 shall terminate the suspension of any item of direct 

8 spending at a time earlier than the time specified by 

9 the President if the President determines that con10 tinuation of the suspension would not further the 

11 purposes of this Act. 

12 ‘‘(c) TEMPORARY PRESIDENTIAL AUTHORITY TO

13 SUSPEND A TARGETED TAX BENEFIT.— 

14 ‘‘(1) IN GENERAL.—At the same time as the 

15 President transmits to the Congress a special mes16 sage pursuant to section 1011(b), the President may 

17 suspend the implementation of any targeted tax ben18 efit proposed to be repealed in that special message 

19 for a period not to exceed 45 calendar days from the 

20 date the President transmits the special message to 

21 the Congress. 

22 ‘‘(2) EARLY AVAILABILITY.—The President 

23 shall terminate the suspension of any targeted tax 

24 benefit at a time earlier than the time specified by 

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1 tinuation of the suspension would not further the 

2 purposes of this Act. 

3 ‘‘(d) EXTENSION OF 45-DAY PERIOD.—The Presi4 dent may transmit to the Congress not more than one sup5 plemental special message to extend the period to suspend 

6 the implementation of any discretionary budget authority, 

7 item of direct spending, or targeted tax benefit, as applica8 ble, by an additional 45 calendar days. Any such supple9 mental message may not be transmitted to the Congress 

10 before the 40th day of the 45-day period set forth in the 

11 preceding message or later than the last day of such pe12 riod. 

13 ‘‘IDENTIFICATION OF TARGETED TAX BENEFITS

14 ‘‘SEC. 1014. (a) STATEMENT.—The chairman of the 

15 Committee on Ways and Means of the House of Rep16 resentatives and the chairman of the Committee on Fi17 nance of the Senate acting jointly (hereafter in this sub18 section referred to as the ‘chairmen’) shall review any rev19 enue or reconciliation bill or joint resolution which in20 cludes any amendment to the Internal Revenue Code of 

21 1986 that is being prepared for filing by a committee of 

22 conference of the two Houses, and shall identify whether 

23 such bill or joint resolution contains any targeted tax ben24 efits. The chairmen shall provide to the committee of con25 ference a statement identifying any such targeted tax ben26 efits or declaring that the bill or joint resolution does not 


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1 contain any targeted tax benefits. Any such statement 

2 shall be made available to any Member of Congress by 

3 the chairmen immediately upon request. 

4 ‘‘(b) STATEMENT INCLUDED IN LEGISLATION.— 

5 ‘‘(1) IN GENERAL.—Notwithstanding any other 

6 rule of the House of Representatives or any rule or 

7 precedent of the Senate, any revenue or reconcili8 ation bill or joint resolution which includes any 

9 amendment to the Internal Revenue Code of 1986 

10 reported by a committee of conference of the two 

11 Houses may include, as a separate section of such 

12 bill or joint resolution, the information contained in 

13 the statement of the chairmen, but only in the man14 ner set forth in paragraph (2). 

15 ‘‘(2) APPLICABILITY.—The separate section 

16 permitted under subparagraph (A) shall read as fol17 lows: ‘Section 1021 of the Congressional Budget and 

18 Impoundment Control Act of 1974 shall 

19 llllllapply to llllllll.’, with 

20 the blank spaces being filled in with— 

21 ‘‘(A) in any case in which the chairmen 

22 identify targeted tax benefits in the statement 

23 required under subsection (a), the word ‘only’ 

24 in the first blank space and a list of all of the 

25 specific provisions of the bill or joint resolution 


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1 identified by the chairmen in such statement in 

2 the second blank space; or 

3 ‘‘(B) in any case in which the chairmen de4 clare that there are no targeted tax benefits in 

5 the statement required under subsection (a), 

6 the word ‘not’ in the first blank space and the 

7 phrase ‘any provision of this Act’ in the second 

8 blank space. 

9 ‘‘(c) IDENTIFICATION IN REVENUE ESTIMATE.— 

10 With respect to any revenue or reconciliation bill or joint 

11 resolution with respect to which the chairmen provide a 

12 statement under subsection (a), the Joint Committee on 

13 Taxation shall— 

14 ‘‘(1) in the case of a statement described in 

15 subsection (b)(2)(A), list the targeted tax benefits 

16 identified by the chairmen in such statement in any 

17 revenue estimate prepared by the Joint Committee 

18 on Taxation for any conference report which accom19 panies such bill or joint resolution, or 

20 ‘‘(2) in the case of a statement described in 13 

21 subsection (b)(2)(B), indicate in such revenue esti22 mate that no provision in such bill or joint resolution 

23 has been identified as a targeted tax benefit. 

24 ‘‘(d) PRESIDENT’S AUTHORITY.—If any revenue or 

25 reconciliation bill or joint resolution is signed into law— 


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1 ‘‘(1) with a separate section described in sub2 section (b)(2), then the President may use the au3 thority granted in this section only with respect to 

4 any targeted tax benefit in that law, if any, identi5 fied in such separate section; or 

6 ‘‘(2) without a separate section described in 

7 subsection (b)(2), then the President may use the 

8 authority granted in this section with respect to any 

9 targeted tax benefit in that law. 

10 ‘‘TREATMENT OF CANCELLATIONS

11 ‘‘SEC. 1015. The cancellation of any dollar amount 

12 of discretionary budget authority, item of direct spending, 

13 or targeted tax benefit shall take effect only upon enact14 ment of the applicable approval bill. If an approval bill 

15 is not enacted into law before the end of the applicable 

16 period under section 1013, then all proposed cancellations 

17 contained in that bill shall be null and void and any such 

18 dollar amount of discretionary budget authority, item of 

19 direct spending, or targeted tax benefit shall be effective 

20 as of the original date provided in the law to which the 

21 proposed cancellations applied. 

22 ‘‘REPORTS BY COMPTROLLER GENERAL

23 ‘‘SEC. 1016. With respect to each special message 

24 under this part, the Comptroller General shall issue to the 

25 Congress a report determining whether any discretionary 

26 budget authority is not made available for obligation or 


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1 item of direct spending or targeted tax benefit continues 

2 to be suspended after the deferral authority set forth in 

3 section 1013 of the President has expired. 

4 ‘‘DEFINITIONS

5 ‘‘SEC. 1017. As used in this part: 

6 ‘‘(1) APPROPRIATION LAW.—The term ‘appro7 priation law’ means an Act referred to in section 

8 105 of title 1, United States Code, including any 

9 general or special appropriation Act, or any Act 

10 making supplemental, deficiency, or continuing ap11 propriations, that has been signed into law pursuant 

12 to Article I, section 7, of the Constitution of the 

13 United States. 

14 ‘‘(2) APPROVAL BILL.—The term ‘approval bill’ 

15 means a bill or joint resolution which only approves 

16 proposed cancellations of dollar amounts of discre17 tionary budget authority, items of new direct spend18 ing, or targeted tax benefits in a special message 

19 transmitted by the President under this part and— 

20 ‘‘(A) the title of which is as follows: ‘A bill 

21 approving the proposed cancellations trans22 mitted by the President on lll’, the blank 

23 space being filled in with the date of trans24 mission of the relevant special message and the 

25 public law number to which the message re26 lates; 


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1 ‘‘(B) which does not have a preamble; and 

2 ‘‘(C) which provides only the following 

3 after the enacting clause: ‘That the Congress 

4 approves of proposed cancellations lll’, the 

5 blank space being filled in with a list of the 

6 cancellations contained in the President’s spe7 cial message, ‘as transmitted by the President 

8 in a special message on llll’, the blank 

9 space being filled in with the appropriate date, 

10 ‘regarding llll.’, the blank space being 

11 filled in with the public law number to which 

12 the special message relates; 

13 ‘‘(D) which only includes proposed can14 cellations that are estimated by CBO to meet 

15 the definition of discretionary budgetary au16 thority or items of direct spending, or that are 

17 identified as targeted tax benefits pursuant to 

18 section 1014; 

19 ‘‘(E) if any proposed cancellation other 

20 than discretionary budget authority or targeted 

21 tax benefits is estimated by CBO to not meet 

22 the definition of item of direct spending, then 

23 the approval bill shall include at the end: ‘The 

24 President shall cease the suspension of the im25 plementation of the following under section 


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1 1013 of the Legislative Line Item Veto Act of 

2 2006: llll’, the blank space being filled in 

3 with the list of such proposed cancellations; and 

4 ‘‘(F) if no CBO estimate is available, then 

5 the entire list of legislative provisions proposed 

6 by the President is inserted in the second blank 

7 space in subparagraph (C). 

8 ‘‘(3) CALENDAR DAY.—The term ‘calendar day’ 

9 means a standard 24-hour period beginning at mid10 night. 

11 ‘‘(4) CANCEL OR CANCELLATION.—The terms 

12 ‘cancel’ or ‘cancellation’ means to prevent— 

13 ‘‘(A) budget authority from having legal 

14 force or effect; 

15 ‘‘(B) in the case of entitlement authority, 

16 to prevent the specific legal obligation of the 

17 United States from having legal force or effect; 

18 ‘‘(C) in the case of the food stamp pro19 gram, to prevent the specific provision of law 

20 that provides such benefit from having legal 

21 force or effect; or 

22 ‘‘(D) a targeted tax benefit from having 

23 legal force or effect; and 

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1 mented and that any budgetary resources are appro2 priately canceled. 

3 ‘‘(5) CBO.—The term ‘CBO’ means the Direc4 tor of the Congressional Budget Office. 

5 ‘‘(6) DIRECT SPENDING.—The term ‘direct 

6 spending’ means— 

7 ‘‘(A) budget authority provided by law 

8 (other than an appropriation law); 

9 ‘‘(B) entitlement authority; and 

10 ‘‘(C) the food stamp program. 

11 ‘‘(7) DOLLAR AMOUNT OF DISCRETIONARY

12 BUDGET AUTHORITY.—(A) Except as provided in 

13 subparagraph (B), the term ‘dollar amount of dis14 cretionary budget authority’ means the entire dollar 

15 amount of budget authority— 

16 ‘‘(i) specified in an appropriation law, 

17 or the entire dollar amount of budget au18 thority or obligation limitation required to 

19 be allocated by a specific proviso in an ap20 propriation law for which a specific dollar 

21 figure was not included; 

22 ‘‘(ii) represented separately in any 

23 table, chart, or explanatory text included 

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1 erning committee report accompanying 

2 such law; 

3 ‘‘(iii) required to be allocated for a 

4 specific program, project, or activity in a 

5 law (other than an appropriation law) that 

6 mandates the expenditure of budget au7 thority from accounts, programs, projects, 

8 or activities for which budget authority is 

9 provided in an appropriation law; 

10 ‘‘(iv) represented by the product of 

11 the estimated procurement cost and the 

12 total quantity of items specified in an ap13 propriation law or included in the state14 ment of managers or the governing com15 mittee report accompanying such law; or 

16 ‘‘(v) represented by the product of the 

17 estimated procurement cost and the total 

18 quantity of items required to be provided 

19 in a law (other than an appropriation law) 

20 that mandates the expenditure of budget 

21 authority from accounts, programs, 

22 projects, or activities for which budget au23 thority is provided in an appropriation law. 

24 ‘‘(B) The term ‘dollar amount of discre25 tionary budget authority’ does not include— 


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1 ‘‘(i) direct spending; 

2 ‘‘(ii) budget authority in an appro3 priation law which funds direct spending 

4 provided for in other law; 

5 ‘‘(iii) any existing budget authority 

6 canceled in an appropriation law; or 

7 ‘‘(iv) any restriction, condition, or lim8 itation in an appropriation law or the ac9 companying statement of managers or 

10 committee reports on the expenditure of 

11 budget authority for an account, program, 

12 project, or activity, or on activities involv13 ing such expenditure. 

14 ‘‘(8) ITEM OF DIRECT SPENDING.—The term 

15 ‘item of direct spending’ means any provision of law 

16 that results in an increase in budget authority or 

17 outlays for direct spending relative to the most re18 cent levels calculated consistent with the method19 ology used to calculate a baseline under section 257 

20 of the Balanced Budget and Emergency Deficit Con21 trol Act of 1985 and included with a budget submis22 sion under section 1105(a) of title 31, United States 

23 Code, in the first year or the 5-year period for which 

24 the item is effective. However, such item does not in25 clude an extension or reauthorization of existing diVerDate Aug 31 2005 02:46 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H4890.PCS H4890

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1 rect spending, but instead only refers to provisions 

2 of law that increase such direct spending. 

3 ‘‘(9) OMB.—The term ‘OMB’ means the Direc4 tor of the Office of Management and Budget. 

5 ‘‘(10) OMNIBUS RECONCILIATION OR APPRO6 PRIATION MEASURE.—The term ‘omnibus reconcili7 ation or appropriation measure’ means— 

8 ‘‘(A) in the case of a reconciliation bill, any 

9 such bill that is reported to its House by the 

10 Committee on the Budget; or 

11 ‘‘(B) in the case of an appropriation meas12 ure, any such measure that provides appropria13 tions for programs, projects, or activities falling 

14 within 2 or more section 302(b) suballocations. 

15 ‘‘(11) TARGETED TAX BENEFIT.—(A) The term 

16 ‘targeted tax benefit’ means any revenue-losing pro17 vision that provides a Federal tax deduction, credit, 

18 exclusion, or preference to only one beneficiary (de19 termined with respect to either present law or any 

20 provision of which the provision is a part) under the 

21 Internal Revenue Code of 1986 in any year for 

22 which the provision is in effect; 

23 ‘‘(B) for purposes of subparagraph (A)— 

24 ‘‘(i) all businesses and associations 

25 that are members of the same controlled 


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1 group of corporations (as defined in sec2 tion 1563(a) of the Internal Revenue Code 

3 of 1986) shall be treated as a single bene4 ficiary; 

5 ‘‘(ii) all shareholders, partners, mem6 bers, or beneficiaries of a corporation, 

7 partnership, association, or trust or estate, 

8 respectively, shall be treated as a single 

9 beneficiary; 

10 ‘‘(iii) all employees of an employer 

11 shall be treated as a single beneficiary; 

12 ‘‘(iv) all qualified plans of an em13 ployer shall be treated as a single bene14 ficiary; 

15 ‘‘(v) all beneficiaries of a qualified 

16 plan shall be treated as a single bene17 ficiary; 

18 ‘‘(vi) all contributors to a charitable 

19 organization shall be treated as a single 

20 beneficiary; 

21 ‘‘(vii) all holders of the same bond 

22 issue shall be treated as a single bene23 ficiary; and 

24 ‘‘(viii) if a corporation, partnership, 

25 association, trust or estate is the beneVerDate Aug 31 2005 02:46 Sep 06, 2006 Jkt 049200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H4890.PCS H4890

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HR 4890 PCS 

1 ficiary of a provision, the shareholders of 

2 the corporation, the partners of the part3 nership, the members of the association, or 

4 the beneficiaries of the trust or estate shall 

5 not also be treated as beneficiaries of such 

6 provision; 

7 ‘‘(C) for the purpose of this paragraph, the 

8 term ‘revenue-losing provision’ means any pro9 vision that is estimated to result in a reduction 

10 in Federal tax revenues (determined with re11 spect to either present law or any provision of 

12 which the provision is a part) for any one of the 

13 two following periods— 

14 ‘‘(i) the first fiscal year for which the 

15 provision is effective; or 

16 ‘‘(ii) the period of the 5 fiscal years 

17 beginning with the first fiscal year for 

18 which the provision is effective; and 

19 ‘‘(D) the terms used in this paragraph 

20 shall have the same meaning as those terms 

21 have generally in the Internal Revenue Code of 

22 1986, unless otherwise expressly provided. 

23 ‘‘EXPIRATION

24 ‘‘SEC. 1018. This title shall have no force or effect 

25 on or after October 1, 2012.’’. 


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HR 4890 PCS 

1 SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS. 

2 (a) EXERCISE OF RULEMAKING POWERS.—Section 

3 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

4 621 note) is amended— 

5 (1) in subsection (a), by striking ‘‘1017’’ and 

6 inserting ‘‘1012’’; and 

7 (2) in subsection (d), by striking ‘‘section 

8 1017’’ and inserting ‘‘section 1012’’. 

9 (b) ANALYSIS BY CONGRESSIONAL BUDGET OF10 FICE.—Section 402 of the Congressional Budget Act of 

11 1974 is amended by inserting ‘‘(a)’’ after ‘‘402.’’ and by 

12 adding at the end the following new subsection: 

13 ‘‘(b) Upon the receipt of a special message under sec14 tion 1011 proposing to cancel any item of direct spending, 

15 the Director of the Congressional Budget Office shall pre16 pare an estimate of the savings in budget authority or out17 lays resulting from such proposed cancellation relative to 

18 the most recent levels calculated consistent with the meth19 odology used to calculate a baseline under section 257 of 

20 the Balanced Budget and Emergency Deficit Control Act 

21 of 1985 and included with a budget submission under sec22 tion 1105(a) of title 31, United States Code, and transmit 

23 such estimate to the chairmen of the Committees on the 

24 Budget of the House of Representatives and Senate.’’. 


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HR 4890 PCS 

1 (c) CLERICAL AMENDMENTS.—(1) Section 1(a) of 

2 the Congressional Budget and Impoundment Control Act 

3 of 1974 is amended by striking the last sentence. 

4 (2) Section 1022(c) of such Act (as redesignated) is 

5 amended is amended by striking ‘‘rescinded or that is to 

6 be reserved’’ and insert ‘‘canceled’’ and by striking 

7 ‘‘1012’’ and inserting ‘‘1011’’. 

8 (3) TABLE OF CONTENTS.—The table of contents set 

9 forth in section 1(b) of the Congressional Budget and Im10 poundment Control Act of 1974 is amended by deleting 

11 the contents for parts B and C of title X and inserting 

12 the following: 

‘‘PART B—LEGISLATIVE LINE-ITEM VETO

‘‘Sec. 1011. Line item veto authority. 

‘‘Sec. 1012. Procedures for expedited consideration. 

‘‘Sec. 1013. Presidential deferral authority. 

‘‘Sec. 1014. Identification of targeted tax benefits. 

‘‘Sec. 1015. Treatment of cancellations. 

‘‘Sec. 1016. Reports by comptroller general. 

‘‘Sec. 1017. Definitions. 

‘‘Sec. 1018. Expiration. 

‘‘Sec. 1019. Suits by Comptroller General. 

‘‘Sec. 1020. Proposed Deferrals of budget authority.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this Act shall take effect on the date of its enactment and 

15 apply only to any dollar amount of discretionary budget 

16 authority, item of direct spending, or targeted tax benefit 

17 provided in an Act enacted on or after the date of enact18 ment of this Act. 


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HR 4890 PCS 

1 SEC. 4. SENSE OF CONGRESS ON ABUSE OF PROPOSED 

2 CANCELLATIONS. 

3 It is the sense of Congress no President or any execu4 tive branch official should condition the inclusion or exclu5 sion or threaten to condition the inclusion or exclusion of 

6 any proposed cancellation in any special message under 

7 this section upon any vote cast or to be cast by any Mem8 ber of either House of Congress. 

Passed the House of Representatives June 22, 2006. 

Attest: KAREN L. HAAS, 

Clerk. 


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Calendar No. 589 

109TH CONGRESS 

2D SESSION H. R. 4890 

AN ACT 

To amend the Congressional Budget and Impoundsions of budget authority. pedited consideration of certain proposed rescis- ment Control Act of 1974 to provide for the exSEPTEMBER 5, 2006 

Read the second time and placed on the calendar 


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