IB 

Union Calendar No. 283 

109TH CONGRESS 

2D SESSION H. R. 4890 

[Report No. 109–505, Parts I and II] 

To amend the Congressional and Impoundment Control Act of 1974 to 

provide for the expedited consideration of certain proposed rescissions 

of budget authority. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 7, 2006 

Mr. RYAN of Wisconsin (for himself, Mr. DREIER, Mr. FEENEY, Mr. 

CHOCOLA, Mr. GREEN of Wisconsin, Mr. KINGSTON, Mr. HENSARLING, 

Mr. HERGER, Mr. HAYWORTH, Mr. ISTOOK, Mr. SHAYS, Mr. WILSON of 

South Carolina, Mr. SESSIONS, Mr. RYUN of Kansas, Mr. GARRETT of 

New Jersey, Mr. FLAKE, Mr. CANTOR, Mrs. MUSGRAVE, Mr. CONAWAY, 

Mr. MATHESON, Mr. INGLIS of South Carolina, Mr. PENCE, Mr. 

FORTUN ̃O, Mr. BACHUS, Mr. UPTON, Mr. PLATTS, Mr. BURTON of Indiana, Mr. MCHENRY, Mr. MORAN of Kansas, Mr. PITTS, Mr. ROYCE, Mr. 

POMBO, Mr. SHADEGG, Mr. BEAUPREZ, Mrs. BONO, Mr. KIRK, Mr. 

MACK, Mr. TERRY, Mr. KENNEDY of Minnesota, Mr. PUTNAM, Mr. 

KLINE, Mr. CANNON, Mr. RENZI, Mr. GALLEGLY, Mrs. BLACKBURN, Mr. 

SENSENBRENNER, Mr. ENGLISH of Pennsylvania, and Mr. UDALL of Colorado) introduced the following bill; which was referred to the Committee 

on the Budget, and in addition to the Committee on Rules, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

JUNE 16, 2006 

Reported from the Committee on the Budget with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

JUNE 19, 2006 

Additional sponsors: Mr. SHIMKUS, Mr. GERLACH, Mr. HOSTETTLER, Mr. 

ISSA, Mr. BRADLEY of New Hampshire, Mr. CAMPBELL of California, 

Mr. BRADY of Texas, Mr. JINDAL, Mrs. MYRICK, Mr. CHABOT, Mr. 

NEUGEBAUER, Mr. COLE of Oklahoma, Mr. KING of Iowa, Ms. FOXX, 


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Mr. GOODE, Mr. DOOLITTLE, Mr. BARRETT of South Carolina, Mr. 

BARTLETT of Maryland, Mr. GOHMERT, Mr. PRICE of Georgia, Mr. 

MARCHANT, Mr. RAMSTAD, Mr. BASS, Mr. MILLER of Florida, Mrs. 

SCHMIDT, Mr. NORWOOD, Ms. GINNY BROWN-WAITE of Florida, Mr. 

MARIO DIAZ-BALART of Florida, Mr. HEFLEY, Mr. GINGREY, Mr. AKIN, 

Mr. PORTER, Mr. CASTLE, Mr. TANCREDO, Mr. MCCAUL of Texas, Mr. 

FRANKS of Arizona, Mr. COBLE, Mr. DENT, Mrs. DRAKE, Mrs. JO ANN

DAVIS of Virginia, Mr. THORNBERRY, Mr. RADANOVICH, Mr. PEARCE, 

Mr. WELDON of Florida, Mr. SAM JOHNSON of Texas, Mr. COOPER, Mr. 

MCCRERY, Mr. CUELLAR, Mr. HASTINGS of Washington, Mr. CAMP of 

Michigan, Mr. GILLMOR, Mr. HOEKSTRA, Mr. DEAL of Georgia, Mr. 

WELLER, Mr. GOODLATTE, Mr. CRENSHAW, Mr. HYDE, Mr. MCCOTTER, 

Mr. SMITH of Texas, Mr. BAKER, Mr. SHAW, Mr. FORTENBERRY, and 

Miss MCMORRIS

JUNE 19, 2006 

Reported from the Committee on Rules with an amendment; committed to the 

Committee of the Whole House on the State of the Union and ordered 

to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 7, 2006] 

A BILL 

To amend the Congressional 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’’. 

6 SEC. 2. LEGISLATIVE LINE ITEM VETO. 

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

8 and Impoundment Control Act of 1974 (2 U.S.C. 621 et 

9 seq.) is amended by striking all of part B (except for secVerDate Aug 31 2005 02:43 Jun 20, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6203 E:\BILLS\H4890.RH H4890

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1 tions 1016 and 1013, which are redesignated as sections 

2 1019 and 1020, respectively) and part C and inserting the 

3 following: 

4 ‘‘PART B—LEGISLATIVE LINE ITEM VETO

5 ‘‘LINE ITEM VETO AUTHORITY

6 ‘‘SEC. 1011. (a) PROPOSED CANCELLATIONS.—Within 

7 45 calendar days after the enactment of any bill or joint 

8 resolution providing any discretionary budget authority, 

9 item of direct spending, or targeted tax benefit, the Presi10 dent may propose, in the manner provided in subsection 

11 (b), the cancellation of any dollar amount of such discre12 tionary budget authority, item of direct spending, or tar13 geted tax benefit. If the 45 calendar-day period expires dur14 ing a period where either House of Congress stands ad15 journed sine die at the end of a Congress or for a period 

16 greater than 45 calendar days, the President may propose 

17 a cancellation under this section and transmit a special 

18 message under subsection (b) on the first calendar day of 

19 session following such a period of adjournment. 

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

21 ‘‘(1) SPECIAL MESSAGE.— 

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

23 transmit to the Congress a special message pro24 posing to cancel any dollar amounts of discreVerDate Aug 31 2005 02:25 Jun 20, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H4890.RH H4890

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1 tionary budget authority, items of direct spend2 ing, or targeted tax benefits. 

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

4 Each special message shall specify, with respect 

5 to the discretionary budget authority, items of 

6 direct spending proposed, or targeted tax benefits 

7 to be canceled— 

8 ‘‘(i) the dollar amount of discretionary 

9 budget authority, the specific item of direct 

10 spending (that OMB, after consultation 

11 with CBO, estimates to increase budget au12 thority or outlays as required by section 

13 1017(9)), or the targeted tax benefit that the 

14 President proposes be canceled; 

15 ‘‘(ii) any account, department, or es16 tablishment of the Government to which 

17 such discretionary budget authority is 

18 available for obligation, and the specific 

19 project or governmental functions involved; 

20 ‘‘(iii) the reasons why such discre21 tionary budget authority, item of direct 

22 spending, or targeted tax benefit should be 

23 canceled; 

24 ‘‘(iv) to the maximum extent prac25 ticable, the estimated fiscal, economic, and 


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1 budgetary effect (including the effect on out2 lays and receipts in each fiscal year) of the 

3 proposed cancellation; 

4 ‘‘(v) to the maximum extent prac5 ticable, all facts, circumstances, and consid6 erations relating to or bearing upon the 

7 proposed cancellation and the decision to ef8 fect the proposed cancellation, and the esti9 mated effect of the proposed cancellation 

10 upon the objects, purposes, or programs for 

11 which the discretionary budget authority, 

12 item of direct spending, or the targeted tax 

13 benefit is provided; 

14 ‘‘(vi) a numbered list of cancellations 

15 to be included in an approval bill that, if 

16 enacted, would cancel discretionary budget 

17 authority, items of direct spending, or tar18 geted tax benefits proposed in that special 

19 message; and 

20 ‘‘(vii) if the special message is trans21 mitted subsequent to or at the same time as 

22 another special message, a detailed expla23 nation why the proposed cancellations are 

24 not substantially similar to any other pro25 posed cancellation in such other message. 


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1 ‘‘(C) DUPLICATIVE PROPOSALS PROHIB2 ITED.—The President may not propose to cancel 

3 the same or substantially similar discretionary 

4 budget authority, item of direct spending, or tar5 geted tax benefit more than one time under this 

6 Act. 

7 ‘‘(D) MAXIMUM NUMBER OF SPECIAL MES8 SAGES.—The President may not transmit to the 

9 Congress more than 5 special messages under 

10 this subsection related to any bill or joint resolu11 tion described in subsection (a), but may trans12 mit not more than 10 special messages for any 

13 omnibus budget reconciliation or appropriation 

14 measure. 

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

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

17 budget authority, items of direct spending, or 

18 targeted tax benefits which are canceled pursuant 

19 to enactment of a bill as provided under this sec20 tion shall be dedicated only to reducing the def21 icit or increasing the surplus. 

22 ‘‘(B) ADJUSTMENT OF LEVELS IN THE CON23 CURRENT RESOLUTION ON THE BUDGET.—Not 

24 later than 5 days after the date of enactment of 

25 an approval bill as provided under this section, 


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1 the chairs of the Committees on the Budget of the 

2 Senate and the House of Representatives shall re3 vise allocations and aggregates and other appro4 priate levels under the appropriate concurrent 

5 resolution on the budget to reflect the cancella6 tion, and the applicable committees shall report 

7 revised suballocations pursuant to section 302(b), 

8 as appropriate. 

9 ‘‘(C) ADJUSTMENTS TO STATUTORY LIM10 ITS.—After enactment of an approval bill as 

11 provided under this section, the Office of Man12 agement and Budget shall revise applicable lim13 its under the Balanced Budget and Emergency 

14 Deficit Control Act of 1985, as appropriate. 

15 ‘‘PROCEDURES FOR EXPEDITED CONSIDERATION

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

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

18 House or his designee shall (by request) introduce an 

19 approval bill as defined in section 1017 not later 

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

21 date of receipt of a special message transmitted to the 

22 Congress under section 1011(b) . 

23 ‘‘(2) CONSIDERATION IN THE HOUSE OF REP24 RESENTATIVES.— 

25 ‘‘(A) REFERRAL AND REPORTING.—Any 

26 committee of the House of Representatives to 


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1 which an approval bill is referred shall report it 

2 to the House without amendment not later than 

3 the seventh legislative day after the date of its 

4 introduction. If a committee fails to report the 

5 bill within that period or the House has adopted 

6 a concurrent resolution providing for adjourn7 ment sine die at the end of a Congress, it shall 

8 be in order to move that the House discharge the 

9 committee from further consideration of the bill. 

10 Such a motion shall be in order only at a time 

11 designated by the Speaker in the legislative 

12 schedule within two legislative days after the day 

13 on which the proponent announces his intention 

14 to offer the motion. Such a motion shall not be 

15 in order after a committee has reported an ap16 proval bill with respect to that special message 

17 or after the House has disposed of a motion to 

18 discharge with respect to that special message. 

19 The previous question shall be considered as or20 dered on the motion to its adoption without in21 tervening motion except twenty minutes of de22 bate equally divided and controlled by the pro23 ponent and an opponent. If such a motion is 

24 adopted, the House shall proceed immediately to 

25 consider the approval bill in accordance with 


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1 subparagraph (C). A motion to reconsider the 

2 vote by which the motion is disposed of shall not 

3 be in order. 

4 ‘‘(B) PROCEEDING TO CONSIDERATION.— 

5 After an approval bill is reported or a committee 

6 has been discharged from further consideration, 

7 or the House has adopted a concurrent resolution 

8 providing for adjournment sine die at the end of 

9 a Congress, it shall be in order to move to pro10 ceed to consider the approval bill in the House. 

11 Such a motion shall be in order only at a time 

12 designated by the Speaker in the legislative 

13 schedule within two legislative days after the day 

14 on which the proponent announces his intention 

15 to offer the motion. Such a motion shall not be 

16 in order after the House has disposed of a mo17 tion to proceed with respect to that special mes18 sage. The previous question shall be considered as 

19 ordered on the motion to its adoption without 

20 intervening motion. A motion to reconsider the 

21 vote by which the motion is disposed of shall not 

22 be in order. 

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

24 shall be considered as read. All points of order 

25 against an approval bill and against its considVerDate Aug 31 2005 02:25 Jun 20, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H4890.RH H4890

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1 eration are waived. The previous question shall 

2 be considered as ordered on an approval bill to 

3 its passage without intervening motion except 

4 five hours of debate equally divided and con5 trolled by the proponent and an opponent and 

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

7 to reconsider the vote on passage of the bill shall 

8 not be in order. 

9 ‘‘(D) SENATE BILL.—An approval bill re10 ceived from the Senate shall not be referred to 

11 committee. 

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

13 ‘‘(A) MOTION TO PROCEED TO CONSIDER14 ATION.—A motion to proceed to the consider15 ation of a bill under this subsection in the Sen16 ate shall not be debatable. It shall not be in order 

17 to move to reconsider the vote by which the mo18 tion to proceed is agreed to or disagreed to. 

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

20 Senate on a bill under this subsection, and all 

21 debatable motions and appeals in connection 

22 therewith (including debate pursuant to subpara23 graph (D)), shall not exceed 10 hours, equally di24 vided and controlled in the usual form. 


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

2 any debatable motion or appeal in connection 

3 with a bill under this subsection shall be limited 

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

5 and controlled in the usual form. 

6 ‘‘(D) MOTION TO LIMIT DEBATE.—A motion 

7 in the Senate to further limit debate on a bill 

8 under this subsection is not debatable. 

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

10 recommit a bill under this subsection is not in 

11 order. 

12 ‘‘(F) CONSIDERATION OF THE HOUSE

13 BILL.— 

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

15 received the House companion bill to the 

16 bill introduced in the Senate prior to the 

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

18 the Senate may consider, and the vote under 

19 paragraph (1)(C) may occur on, the House 

20 companion bill. 

21 ‘‘(ii) PROCEDURE AFTER VOTE ON

22 SENATE BILL.—If the Senate votes, pursu23 ant to paragraph (1)(C), on the bill intro24 duced in the Senate, then immediately fol25 lowing that vote, or upon receipt of the 


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1 House companion bill, the House bill shall 

2 be deemed to be considered, read the third 

3 time, and the vote on passage of the Senate 

4 bill shall be considered to be the vote on the 

5 bill received from the House. 

6 ‘‘(b) AMENDMENTS PROHIBITED.—No amendment to, 

7 or motion to strike a provision from, a bill considered under 

8 this section shall be in order in either the Senate or the 

9 House of Representatives. 

10 ‘‘PRESIDENTIAL DEFERRAL AUTHORITY

11 ‘‘SEC. 1013. (a) TEMPORARY PRESIDENTIAL AUTHOR12 ITY TO WITHHOLD DISCRETIONARY BUDGET AUTHOR13 ITY.— 

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

15 President transmits to the Congress a special message 

16 pursuant to section 1011(b), the President may direct 

17 that any dollar amount of discretionary budget au18 thority to be canceled in that special message shall 

19 not be made available for obligation for a period not 

20 to exceed 45 calendar days from the date the Presi21 dent transmits the special message to the Congress. 

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

23 make any dollar amount of discretionary budget au24 thority deferred pursuant to paragraph (1) available 

25 at a time earlier than the time specified by the PresiVerDate Aug 31 2005 02:25 Jun 20, 2006 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H4890.RH H4890

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1 dent if the President determines that continuation of 

2 the deferral would not further the purposes of this Act. 

3 ‘‘(b) TEMPORARY PRESIDENTIAL AUTHORITY TO SUS4 PEND DIRECT SPENDING.— 

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

6 President transmits to the Congress a special message 

7 pursuant to section 1011(b), the President may sus8 pend the implementation of any item of direct spend9 ing proposed to be canceled in that special message 

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

11 date the President transmits the special message to 

12 the Congress. 

13 ‘‘(2) EARLY AVAILABILITY.—The President shall 

14 terminate the suspension of any item of direct spend15 ing at a time earlier than the time specified by the 

16 President if the President determines that continu17 ation of the suspension would not further the purposes 

18 of this Act. 

19 ‘‘(c) TEMPORARY PRESIDENTIAL AUTHORITY TO SUS20 PEND A TARGETED TAX BENEFIT.— 

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

22 President transmits to the Congress a special message 

23 pursuant to section 1011(b), the President may sus24 pend the implementation of any targeted tax benefit 

25 proposed to be repealed in that special message for a 


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1 period not to exceed 45 calendar days from the date 

2 the President transmits the special message to the 

3 Congress. 

4 ‘‘(2) EARLY AVAILABILITY.—The President shall 

5 terminate the suspension of any targeted tax benefit 

6 at a time earlier than the time specified by the Presi7 dent if the President determines that continuation of 

8 the suspension would not further the purposes of this 

9 Act. 

10 ‘‘(d) EXTENSION OF 45-DAY PERIOD.—The President 

11 may transmit to the Congress not more than one supple12 mental special message to extend the period to suspend the 

13 implementation of any discretionary budget authority, item 

14 of direct spending, or targeted tax benefit, as applicable, 

15 by an additional 45 calendar days. Any such supplemental 

16 message may not be transmitted to the Congress before the 

17 40th day of the 45-day period set forth in the preceding 

18 message or later than the last day of such period. 

19 ‘‘IDENTIFICATION OF TARGETED TAX BENEFITS

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

21 Committee on Ways and Means of the House of Representa22 tives and the chairman of the Committee on Finance of the 

23 Senate acting jointly (hereafter in this subsection referred 

24 to as the ‘chairmen’) shall review any revenue or reconcili25 ation bill or joint resolution which includes any amendment 

26 to the Internal Revenue Code of 1986 that is being prepared 


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1 for filing by a committee of conference of the two Houses, 

2 and shall identify whether such bill or joint resolution con3 tains any targeted tax benefits. The chairmen shall provide 

4 to the committee of conference a statement identifying any 

5 such targeted tax benefits or declaring that the bill or joint 

6 resolution does not contain any targeted tax benefits. Any 

7 such statement shall be made available to any Member of 

8 Congress by the chairmen immediately upon request. 

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

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

11 rule of the House of Representatives or any rule or 

12 precedent of the Senate, any revenue or reconciliation 

13 bill or joint resolution which includes any amend14 ment to the Internal Revenue Code of 1986 reported 

15 by a committee of conference of the two Houses may 

16 include, as a separate section of such bill or joint res17 olution, the information contained in the statement of 

18 the chairmen, but only in the manner set forth in 

19 paragraph (2). 

20 ‘‘(2) APPLICABILITY.—The separate section per21 mitted under subparagraph (A) shall read as follows: 

22 ‘Section 1021 of the Congressional Budget and Im23 poundment Control Act of 1974 shall 

24 llllllll apply to 


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1 llllllllllll.’, with the blank spaces 

2 being filled in with— 

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

4 identify targeted tax benefits in the statement re5 quired under subsection (a), the word ‘only’ in 

6 the first blank space and a list of all of the spe7 cific provisions of the bill or joint resolution 

8 identified by the chairmen in such statement in 

9 the second blank space; or 

10 ‘‘(B) in any case in which the chairmen de11 clare that there are no targeted tax benefits in 

12 the statement required under subsection (a), the 

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

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

15 blank space. 

16 ‘‘(c) PRESIDENT’S AUTHORITY.—If any revenue or rec17 onciliation bill or joint resolution is signed into law— 

18 ‘‘(1) with a separate section described in sub19 section (b)(2), then the President may use the author20 ity granted in this section only with respect to any 

21 targeted tax benefit in that law, if any, identified in 

22 such separate section; or 

23 ‘‘(2) without a separate section described in sub24 section (b)(2), then the President may use the authorVerDate Aug 31 2005 02:25 Jun 20, 2006 Jkt 049200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6203 E:\BILLS\H4890.RH H4890

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1 ity granted in this section with respect to any tar2 geted tax benefit in that law. 

3 ‘‘TREATMENT OF CANCELLATIONS

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

5 discretionary budget authority, item of direct spending, or 

6 targeted tax benefit shall take effect only upon enactment 

7 of the applicable approval bill. If an approval bill is not 

8 enacted into law before the end of the applicable period 

9 under section 1013, then all proposed cancellations con10 tained in that bill shall be null and void and any such 

11 dollar amount of discretionary budget authority, item of di12 rect spending, or targeted tax benefit shall be effective as 

13 of the original date provided in the law to which the pro14 posed cancellations applied. 

15 ‘‘REPORTS BY COMPTROLLER GENERAL

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

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

18 Congress a report determining whether any discretionary 

19 budget authority is not made available for obligation or 

20 item of direct spending or targeted tax benefit continues to 

21 be suspended after the deferral authority set forth in section 

22 1013 of the President has expired. 

23 ‘‘DEFINITIONS

24 ‘‘SEC. 1017. As used in this part: 

25 ‘‘(1) APPROPRIATION LAW.—The term ‘appro26 priation law’ means an Act referred to in section 105 


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1 of title 1, United States Code, including any general 

2 or special appropriation Act, or any Act making sup3 plemental, deficiency, or continuing appropriations, 

4 that has been signed into law pursuant to Article I, 

5 section 7, of the Constitution of the United States. 

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

7 means a bill or joint resolution which only approves 

8 proposed cancellations of dollar amounts of discre9 tionary budget authority, items of new direct spend10 ing, or targeted tax benefits in a special message 

11 transmitted by the President under this part and— 

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

13 approving the proposed cancellations transmitted 

14 by the President on llll’, the blank space 

15 being filled in with the date of transmission of 

16 the relevant special message and the public law 

17 number to which the message relates; 

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

19 ‘‘(C) which provides only the following after 

20 the enacting clause: ‘That the Congress approves 

21 of proposed cancellations llll’, the blank 

22 space being filled in with a list of the cancella23 tions contained in the President’s special mes24 sage, ‘as transmitted by the President in a spe25 cial message on llll’, the blank space being 


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1 filled in with the appropriate date, ‘regarding 

2 llll.’, the blank space being filled in with 

3 the public law number to which the special mes4 sage relates; 

5 ‘‘(D) which only includes proposed cancella6 tions that are estimated by CBO to meet the defi7 nition of discretionary budgetary authority or 

8 items of direct spending, or that are identified as 

9 targeted tax benefits pursuant to section 1014; 

10 ‘‘(E) if any proposed cancellation other 

11 than discretionary budget authority or targeted 

12 tax benefits is estimated by CBO to not meet the 

13 definition of item of direct spending, then the 

14 approval bill shall include at the end: ‘The Presi15 dent shall cease the suspension of the implemen16 tation of the following under section 1013 of the 

17 Legislative Line Item Veto Act of 2006: 

18 llll’, the blank space being filled in with 

19 the list of such proposed cancellations; and 

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

21 the entire list of legislative provisions proposed 

22 by the President is inserted in the second blank 

23 space in subparagraph (C). 


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

2 means a standard 24-hour period beginning at mid3 night. 

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

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

6 ‘‘(A) budget authority from having legal 

7 force or effect; 

8 ‘‘(B) in the case of entitlement authority, to 

9 prevent the specific legal obligation of the United 

10 States from having legal force or effect; 

11 ‘‘(C) in the case of the food stamp program, 

12 to prevent the specific provision of law that pro13 vides such benefit from having legal force or ef14 fect; or 

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

16 legal force or effect; and 

17 to make any necessary, conforming statutory change 

18 to ensure that such targeted tax benefit is not imple19 mented and that any budgetary resources are appro20 priately canceled. 

21 ‘‘(5) CBO.—The term ‘CBO’ means the Director 

22 of the Congressional Budget Office. 

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

24 spending’ means— 


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1 ‘‘(A) budget authority provided by law 

2 (other than an appropriation law); 

3 ‘‘(B) entitlement authority; and 

4 ‘‘(C) the food stamp program. 

5 ‘‘(7) DOLLAR AMOUNT OF DISCRETIONARY BUDG6 ET AUTHORITY.—(A) Except as provided in subpara7 graph (B), the term ‘‘dollar amount of discretionary 

8 budget authority’’ means the entire dollar amount of 

9 budget authority— 

10 ‘‘(i) specified in an appropriation law, or 

11 the entire dollar amount of budget authority or 

12 obligation limitation required to be allocated by 

13 a specific proviso in an appropriation law for 

14 which a specific dollar figure was not included; 

15 ‘‘(ii) represented separately in any table, 

16 chart, or explanatory text included in the state17 ment of managers or the governing committee re18 port accompanying such law; 

19 ‘‘(iii) required to be allocated for a specific 

20 program, project, or activity in a law (other 

21 than an appropriation law) that mandates the 

22 expenditure of budget authority from accounts, 

23 programs, projects, or activities for which budget 

24 authority is provided in an appropriation law; 


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1 ‘‘(iv) represented by the product of the esti2 mated procurement cost and the total quantity of 

3 items specified in an appropriation law or in4 cluded in the statement of managers or the gov5 erning committee report accompanying such law; 

6 or 

7 ‘‘(v) represented by the product of the esti8 mated procurement cost and the total quantity of 

9 items required to be provided in a law (other 

10 than an appropriation law) that mandates the 

11 expenditure of budget authority from accounts, 

12 programs, projects, or activities for which budget 

13 authority is provided in an appropriation law. 

14 ‘‘(B) The term ‘dollar amount of discretionary 

15 budget authority’ does not include— 

16 ‘‘(i) direct spending; 

17 ‘‘(ii) budget authority in an appropriation 

18 law which funds direct spending provided for in 

19 other law; 

20 ‘‘(iii) any existing budget authority can21 celed in an appropriation law; or 

22 ‘‘(iv) any restriction, condition, or limita23 tion in an appropriation law or the accom24 panying statement of managers or committee re25 ports on the expenditure of budget authority for 


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1 an account, program, project, or activity, or on 

2 activities involving such expenditure. 

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

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

5 that results in an increase in budget authority or out6 lays for direct spending relative to the most recent 

7 levels calculated consistent with the methodology used 

8 to calculate a baseline under section 257 of the Bal9 anced Budget and Emergency Deficit Control Act of 

10 1985 and included with a budget submission under 

11 section 1105(a) of title 31, United States Code, in the 

12 first year or the 5-year period for which the item is 

13 effective. However, such item does not include an ex14 tension or reauthorization of existing direct spending, 

15 but instead only refers to provisions of law that in16 crease such direct spending. 

17 ‘‘(9) OMB.—The term ‘OMB’ means the Director 

18 of the Office of Management and Budget. 

19 ‘‘(10) OMNIBUS RECONCILIATION OR APPROPRIA20 TION MEASURE.—The term ‘omnibus reconciliation or 

21 appropriation measure’ means— 

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

23 such bill that is reported to its House by the 

24 Committee on the Budget; or 


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1 ‘‘(B) in the case of an appropriation meas2 ure, any such measure that provides appropria3 tions for programs, projects, or activities falling 

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

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

6 ‘targeted tax benefit’ means any revenue-losing provi7 sion that provides a Federal tax deduction, credit, ex8 clusion, or preference to only one beneficiary (deter9 mined with respect to either present law or any pro10 vision of which the provision is a part) under the In11 ternal Revenue Code of 1986 in any year for which 

12 the provision is in effect; 

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

14 ‘‘(i) all businesses and associations that are 

15 members of the same controlled group of corpora16 tions (as defined in section 1563(a) of the Inter17 nal Revenue Code of 1986) shall be treated as a 

18 single beneficiary; 

19 ‘‘(ii) all shareholders, partners, members, or 

20 beneficiaries of a corporation, partnership, asso21 ciation, or trust or estate, respectively, shall be 

22 treated as a single beneficiary; 

23 ‘‘(iii) all employees of an employer shall be 

24 treated as a single beneficiary; 


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1 ‘‘(iv) all qualified plans of an employer 

2 shall be treated as a single beneficiary; 

3 ‘‘(v) all beneficiaries of a qualified plan 

4 shall be treated as a single beneficiary; 

5 ‘‘(vi) all contributors to a charitable organi6 zation shall be treated as a single beneficiary; 

7 ‘‘(vii) all holders of the same bond issue 

8 shall be treated as a single beneficiary; and 

9 ‘‘(viii) if a corporation, partnership, asso10 ciation, trust or estate is the beneficiary of a 

11 provision, the shareholders of the corporation, the 

12 partners of the partnership, the members of the 

13 association, or the beneficiaries of the trust or es14 tate shall not also be treated as beneficiaries of 

15 such provision; 

16 ‘‘(C) for the purpose of this paragraph, the term 

17 ‘revenue-losing provision’ means any provision that is 

18 estimated to result in a reduction in Federal tax reve19 nues (determined with respect to either present law or 

20 any provision of which the provision is a part) for 

21 any one of the two following periods— 

22 ‘‘(i) the first fiscal year for which the provi23 sion is effective; or 


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1 ‘‘(ii) the period of the 5 fiscal years begin2 ning with the first fiscal year for which the pro3 vision is effective; and 

4 ‘‘(D) the terms used in this paragraph shall have 

5 the same meaning as those terms have generally in 

6 the Internal Revenue Code of 1986, unless otherwise 

7 expressly provided. 

8 ‘‘EXPIRATION

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

10 or after October 1, 2012.’’. 

11 SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS. 

12 (a) EXERCISE OF RULEMAKING POWERS.—Section 

13 904 of the Congressional Budget Act of 1974 (2 U.S.C. 621 

14 note) is amended— 

15 (1) in subsection (a), by striking ‘‘1017’’ and in16 serting ‘1012’’; and 

17 (2) in subsection (d), by striking ‘‘section 1017’’ 

18 and inserting ‘‘section 1012’’. 

19 (b) ANALYSIS BY CONGRESSIONAL BUDGET OFFICE.— 

20 Section 402 of the Congressional Budget Act of 1974 is 

21 amended by inserting ‘‘(a)’’ after ‘‘402.’’ and by adding at 

22 the end the following new subsection: 

23 ‘‘(b) Upon the receipt of a special message under sec24 tion 1011 proposing to cancel any item of direct spending, 

25 the Director of the Congressional Budget Office shall pre26 pare an estimate of the savings in budget authority or outVerDate Aug 31 2005 02:25 Jun 20, 2006 Jkt 049200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6203 E:\BILLS\H4890.RH H4890

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1 lays resulting from such proposed cancellation relative to 

2 the most recent levels calculated consistent with the method3 ology used to calculate a baseline under section 257 of the 

4 Balanced Budget and Emergency Deficit Control Act of 

5 1985 and included with a budget submission under section 

6 1105(a) of title 31, United States Code, and transmit such 

7 estimate to the chairmen of the Committees on the Budget 

8 of the House of Representatives and Senate.’’. 

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

10 Congressional Budget and Impoundment Control Act of 

11 1974 is amended by striking the last sentence. 

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

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

14 be reserved’’ and insert ‘‘canceled’’ and by striking ‘‘1012’’ 

15 and inserting ‘‘1011’’. 

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

17 forth in section 1(b) of the Congressional Budget and Im18 poundment Control Act of 1974 is amended by deleting the 

19 contents for parts B and C of title X and inserting the fol20 lowing: 

‘‘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. 


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‘‘Sec. 1019. Suits by Comptroller General. 

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

1 (d) EFFECTIVE DATE.—The amendments made by this 

2 Act shall take effect on the date of its enactment and apply 

3 only to any dollar amount of discretionary budget author4 ity, item of direct spending, or targeted tax benefit provided 

5 in an Act enacted on or after the date of enactment of this 

6 Act. 

7 SEC. 4. SENSE OF CONGRESS ON ABUSE OF PROPOSED CAN8 CELLATIONS. 

9 It is the sense of Congress no President or any execu10 tive branch official should condition the inclusion or exclu11 sion or threaten to condition the inclusion or exclusion of 

12 any proposed cancellation in any special message under 

13 this section upon any vote cast or to be cast by any Member 

14 of either House of Congress. 


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Union Calendar No. 283 

109TH CONGRESS 

2D SESSION H. R. 4890 

[Report No. 109

–505, Parts I and II] 

A BILL 

To amend the Congressional and Impoundment 

budget authority. consideration of certain proposed rescissions of Control Act of 1974 to provide for the expedited 

JUNE 19, 2006 

Reported from the Committee on Rules with an amendon the State of the Union and ordered to be printed ment; committed to the Committee of the Whole House 


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