109TH CONGRESS 

2D SESSION H. R. 4890

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, 
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1 SECTION 1. SHORT TITLE. 

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

3 Veto Act of 2006’’. 

4 SEC. 2. LEGISLATIVE LINE ITEM VETO. 

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

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

7 621 et seq.) is amended by striking all of part B (except 

8 for sections 1016 and 1013, which are redesignated as sec9 tions 1019 and 1020, respectively) and part C and insert10 ing the following: 

11 ‘‘PART B—LEGISLATIVE LINE-ITEM VETO

12 ‘‘LINE ITEM VETO AUTHORITY

13 ‘‘SEC. 1011. (a) PROPOSED CANCELLATIONS.—With14 in 45 calendar days after the enactment of any bill or joint 

15 resolution providing any discretionary budget authority, 

16 item of direct spending, or targeted tax benefit, the Presi17 dent may propose, in the manner provided in subsection 

18 (b), the cancellation of any dollar amount of such discre19 tionary budget authority, item of direct spending, or tar20 geted tax benefit. If the 45 calendar-day period expires 

21 during a period where either House of Congress stands 

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

23 greater than 45 calendar days, the President may propose 

24 a cancellation under this section and transmit a special 

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

26 of session following such a period of adjournment. 
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1 ‘‘(b) TRANSMITTAL OF SPECIAL MESSAGE.—

2 ‘‘(1) SPECIAL MESSAGE.—

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

4 transmit to the Congress a special message pro5 posing to cancel any dollar amounts of discre6 tionary budget authority, items of direct spend7 ing, or targeted tax benefits. 

8 ‘‘(B) CONTENTS OF SPECIAL MESSAGE.—

9 Each special message shall specify, with respect 

10 to the discretionary budget authority, items of 

11 direct spending proposed, or targeted tax bene12 fits to be canceled—

13 ‘‘(i) the dollar amount of discretionary 

14 budget authority, the specific item of direct 

15 spending (that OMB, after consultation 

16 with CBO, estimates to increase budget 

17 authority or outlays as required by section 

18 1017(9)), or the targeted tax benefit that 

19 the President proposes be canceled; 

20 ‘‘(ii) any account, department, or es21 tablishment of the Government to which 

22 such discretionary budget authority is 

23 available for obligation, and the specific 

24 project or governmental functions involved; 
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1 ‘‘(iii) the reasons why such discre2 tionary budget authority, item of direct 

3 spending, or targeted tax benefit should be 

4 canceled; 

5 ‘‘(iv) to the maximum extent prac6 ticable, the estimated fiscal, economic, and 

7 budgetary effect (including the effect on 

8 outlays and receipts in each fiscal year) of 

9 the proposed cancellation; 

10 ‘‘(v) to the maximum extent prac11 ticable, all facts, circumstances, and con12 siderations relating to or bearing upon the 

13 proposed cancellation and the decision to 

14 effect the proposed cancellation, and the 

15 estimated effect of the proposed cancella16 tion upon the objects, purposes, or pro17 grams for which the discretionary budget 

18 authority, item of direct spending, or the 

19 targeted tax benefit is provided; 

20 ‘‘(vi) a numbered list of cancellations 

21 to be included in an approval bill that, if 

22 enacted, would cancel discretionary budget 

23 authority, items of direct spending, or tar24 geted tax benefits proposed in that special 

25 message; and 
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1 ‘‘(vii) if the special message is trans2 mitted subsequent to or at the same time 

3 as another special message, a detailed ex4 planation why the proposed cancellations 

5 are not substantially similar to any other 

6 proposed cancellation in such other mes7 sage. 

8 ‘‘(C) DUPLICATIVE PROPOSALS PROHIB9 ITED.—The President may not propose to can10 cel the same or substantially similar discre11 tionary budget authority, item of direct spend12 ing, or targeted tax benefit more than one time 

13 under this Act. 

14 ‘‘(D) MAXIMUM NUMBER OF SPECIAL MES15 SAGES.—The President may not transmit to the 

16 Congress more than 5 special messages under 

17 this subsection related to any bill or joint reso18 lution described in subsection (a), but may 

19 transmit not more than 10 special messages for 

20 any omnibus budget reconciliation or appropria21 tion measure. 

22 ‘‘(2) ENACTMENT OF APPROVAL BILL.—

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

24 budget authority, items of direct spending, or 

25 targeted tax benefits which are canceled pursu-
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1 ant to enactment of a bill as provided under 

2 this section shall be dedicated only to reducing 

3 the deficit or increasing the surplus. 

4 ‘‘(B) ADJUSTMENT OF LEVELS IN THE

5 CONCURRENT RESOLUTION ON THE BUDGET.—

6 Not later than 5 days after the date of enact7 ment of an approval bill as provided under this 

8 section, the chairs of the Committees on the 

9 Budget of the Senate and the House of Rep10 resentatives shall revise allocations and aggre11 gates and other appropriate levels under the ap12 propriate concurrent resolution on the budget to 

13 reflect the cancellation, and the applicable com14 mittees shall report revised suballocations pur15 suant to section 302(b), as appropriate. 

16 ‘‘(C) ADJUSTMENTS TO STATUTORY LIM17 ITS.—After enactment of an approval bill as 

18 provided under this section, the Office of Man19 agement and Budget shall revise applicable lim20 its under the Balanced Budget and Emergency 

21 Deficit Control Act of 1985, as appropriate. 

22 ‘‘(D) TRUST FUNDS AND SPECIAL

23 FUNDS.—Nothwithstanding subparagraph (A), 

24 nothing in this part shall be construed to re25 quire or allow the deposit of amounts derived 
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1 from a trust fund or special fund which are 

2 canceled pursuant to enactment of a bill as pro3 vided under this section to any other fund. 

4 ‘‘PROCEDURES FOR EXPEDITED CONSIDERATION

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

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

7 House or his designee shall (by request) introduce 

8 an approval bill as defined in section 1017 not later 

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

10 date of receipt of a special message transmitted to 

11 the Congress under section 1011(b). 

12 ‘‘(2) CONSIDERATION IN THE HOUSE OF REP13 RESENTATIVES.—

14 ‘‘(A) REFERRAL AND REPORTING.—Any 

15 committee of the House of Representatives to 

16 which an approval bill is referred shall report it 

17 to the House without amendment not later than 

18 the seventh legislative day after the date of its 

19 introduction. If a committee fails to report the 

20 bill within that period or the House has adopt21 ed a concurrent resolution providing for ad22 journment sine die at the end of a Congress, it 

23 shall be in order to move that the House dis24 charge the committee from further consider25 ation of the bill. Such a motion shall be in 

26 order only at a time designated by the Speaker 
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1 in the legislative schedule within two legislative 

2 days after the day on which the proponent an3 nounces his intention to offer the motion. Such 

4 a motion shall not be in order after a committee 

5 has reported an approval bill with respect to 

6 that special message or after the House has dis7 posed of a motion to discharge with respect to 

8 that special message. The previous question 

9 shall be considered as ordered on the motion to 

10 its adoption without intervening motion except 

11 twenty minutes of debate equally divided and 

12 controlled by the proponent and an opponent. If 

13 such a motion is adopted, the House shall pro14 ceed immediately to consider the approval bill 

15 in accordance with subparagraph (C). A motion 

16 to reconsider the vote by which the motion is 

17 disposed of shall not be in order. 

18 ‘‘(B) PROCEEDING TO CONSIDERATION.—

19 After an approval bill is reported or a com20 mittee has been discharged from further consid21 eration, or the House has adopted a concurrent 

22 resolution providing for adjournment sine die at 

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

24 move to proceed to consider the approval bill in 

25 the House. Such a motion shall be in order only 
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1 at a time designated by the Speaker in the leg2 islative schedule within two legislative days 

3 after the day on which the proponent announces 

4 his intention to offer the motion. Such a motion 

5 shall not be in order after the House has dis6 posed of a motion to proceed 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. A mo10 tion to reconsider the vote by which the motion 

11 is disposed of shall not be in order. 

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

13 shall be considered as read. All points of order 

14 against an approval bill and against its consid15 eration are waived. The previous question shall 

16 be considered as ordered on an approval bill to 

17 its passage without intervening motion except 

18 five hours of debate equally divided and con19 trolled by the proponent and an opponent and 

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

21 to reconsider the vote on passage of the bill 

22 shall not be in order. 

23 ‘‘(D) SENATE BILL.—An approval bill re24 ceived from the Senate shall not be referred to 

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

2 ‘‘(A) MOTION TO PROCEED TO CONSIDER3 ATION.—A motion to proceed to the consider4 ation of a bill under this subsection in the Sen5 ate shall not be debatable. It shall not be in 

6 order to move to reconsider the vote by which 

7 the motion to proceed is agreed to or disagreed 

8 to. 

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

10 Senate on a bill under this subsection, and all 

11 debatable motions and appeals in connection 

12 therewith (including debate pursuant to sub13 paragraph (D)), shall not exceed 10 hours, 

14 equally divided and controlled in the usual 

15 form. 

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

17 any debatable motion or appeal in connection 

18 with a bill under this subsection shall be limited 

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

20 and controlled in the usual form. 

21 ‘‘(D) MOTION TO LIMIT DEBATE.—A mo22 tion in the Senate to further limit debate on a 

23 bill under this subsection is not debatable. 
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1 ‘‘(E) MOTION TO RECOMMIT.—A motion to 

2 recommit a bill under this subsection is not in 

3 order. 

4 ‘‘(F) CONSIDERATION OF THE HOUSE

5 BILL.—

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

7 received the House companion bill to the 

8 bill introduced in the Senate prior to the 

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

10 the Senate may consider, and the vote 

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

12 House companion bill. 

13 ‘‘(ii) PROCEDURE AFTER VOTE ON

14 SENATE BILL.—If the Senate votes, pursu15 ant to paragraph (1)(C), on the bill intro16 duced in the Senate, then immediately fol17 lowing that vote, or upon receipt of the 

18 House companion bill, the House bill shall 

19 be deemed to be considered, read the third 

20 time, and the vote on passage of the Sen21 ate bill shall be considered to be the vote 

22 on the bill received from the House. 

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

24 to, or motion to strike a provision from, a bill considered 
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1 under this section shall be in order in either the Senate 

2 or the House of Representatives. 

3 ‘‘PRESIDENTIAL DEFERRAL AUTHORITY

4 ‘‘SEC. 1013. (a) TEMPORARY PRESIDENTIAL AU5 THORITY TO WITHHOLD DISCRETIONARY BUDGET AU6 THORITY.—

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

8 President transmits to the Congress a special mes9 sage pursuant to section 1011(b), the President may 

10 direct that any dollar amount of discretionary budg11 et authority to be canceled in that special message 

12 shall not be made available for obligation for a pe13 riod not to exceed 45 calendar days from the date 

14 the President transmits the special message to the 

15 Congress. 

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

17 shall make any dollar amount of discretionary budg18 et authority deferred pursuant to paragraph (1) 

19 available at a time earlier than the time specified by 

20 the President if the President determines that con21 tinuation of the deferral would not further the pur22 poses of this Act. 

23 ‘‘(b) TEMPORARY PRESIDENTIAL AUTHORITY TO

24 SUSPEND DIRECT SPENDING.—

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

26 President transmits to the Congress a special mes-
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1 sage pursuant to section 1011(b), the President may 

2 suspend the implementation of any item of direct 

3 spending proposed to be canceled in that special 

4 message for a period not to exceed 45 calendar days 

5 from the date the President transmits the special 

6 message to the Congress. 

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

8 shall terminate the suspension of any item of direct 

9 spending at a time earlier than the time specified by 

10 the President if the President determines that con11 tinuation of the suspension would not further the 

12 purposes of this Act. 

13 ‘‘(c) TEMPORARY PRESIDENTIAL AUTHORITY TO

14 SUSPEND A TARGETED TAX BENEFIT.—

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

16 President transmits to the Congress a special mes17 sage pursuant to section 1011(b), the President may 

18 suspend the implementation of any targeted tax ben19 efit proposed to be repealed in that special message 

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

21 date the President transmits the special message to 

22 the Congress. 

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

24 shall terminate the suspension of any targeted tax 

25 benefit at a time earlier than the time specified by 
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1 the President if the President determines that con2 tinuation of the suspension would not further the 

3 purposes of this Act. 

4 ‘‘(d) EXTENSION OF 45-DAY PERIOD.—The Presi5 dent may transmit to the Congress not more than one sup6 plemental special message to extend the period to suspend 

7 the implementation of any discretionary budget authority, 

8 item of direct spending, or targeted tax benefit, as applica9 ble, by an additional 45 calendar days. Any such supple10 mental message may not be transmitted to the Congress 

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

12 preceding message or later than the last day of such pe13 riod. 

14 ‘‘IDENTIFICATION OF TARGETED TAX BENEFITS

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

16 Committee on Ways and Means of the House of Rep17 resentatives and the chairman of the Committee on Fi18 nance of the Senate acting jointly (hereafter in this sub19 section referred to as the ‘chairmen’) shall review any rev20 enue or reconciliation bill or joint resolution which in21 cludes any amendment to the Internal Revenue Code of 

22 1986 that is being prepared for filing by a committee of 

23 conference of the two Houses, and shall identify whether 

24 such bill or joint resolution contains any targeted tax ben25 efits. The chairmen shall provide to the committee of con26 ference a statement identifying any such targeted tax ben-
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1 efits or declaring that the bill or joint resolution does not 

2 contain any targeted tax benefits. Any such statement 

3 shall be made available to any Member of Congress by 

4 the chairmen immediately upon request. 

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

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

7 rule of the House of Representatives or any rule or 

8 precedent of the Senate, any revenue or reconcili9 ation bill or joint resolution which includes any 

10 amendment to the Internal Revenue Code of 1986 

11 reported by a committee of conference of the two 

12 Houses may include, as a separate section of such 

13 bill or joint resolution, the information contained in 

14 the statement of the chairmen, but only in the man15 ner set forth in paragraph (2). 

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

17 permitted under subparagraph (A) shall read as fol18 lows: ‘Section 1021 of the Congressional Budget and 

19 Impoundment Control Act of 1974 shall 

20 llllllapply to llllllll.’, with 

21 the blank spaces being filled in with—

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

23 identify targeted tax benefits in the statement 

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

25 in the first blank space and a list of all of the 
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1 specific provisions of the bill or joint resolution 

2 identified by the chairmen in such statement in 

3 the second blank space; or 

4 ‘‘(B) in any case in which the chairmen de5 clare that there are no targeted tax benefits in 

6 the statement required under subsection (a), 

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

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

9 blank space. 

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

11 With respect to any revenue or reconciliation bill or joint 

12 resolution with respect to which the chairmen provide a 

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

14 Taxation shall—

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

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

17 identified by the chairmen in such statement in any 

18 revenue estimate prepared by the Joint Committee 

19 on Taxation for any conference report which accom20 panies such bill or joint resolution, or 

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

22 subsection (b)(2)(B), indicate in such revenue esti23 mate that no provision in such bill or joint resolution 

24 has been identified as a targeted tax benefit. 
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1 ‘‘(d) PRESIDENT’S AUTHORITY.—If any revenue or 

2 reconciliation bill or joint resolution is signed into law—

3 ‘‘(1) with a separate section described in sub4 section (b)(2), then the President may use the au5 thority granted in this section only with respect to 

6 any targeted tax benefit in that law, if any, identi7 fied in such separate section; or 

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

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

10 authority granted in this section with respect to any 

11 targeted tax benefit in that law. 

12 ‘‘TREATMENT OF CANCELLATIONS

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

14 of discretionary budget authority, item of direct spending, 

15 or targeted tax benefit shall take effect only upon enact16 ment of the applicable approval bill. If an approval bill 

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

18 period under section 1013, then all proposed cancellations 

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

20 dollar amount of discretionary budget authority, item of 

21 direct spending, or targeted tax benefit shall be effective 

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

23 proposed cancellations applied. 

24 ‘‘REPORTS BY COMPTROLLER GENERAL

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

26 under this part, the Comptroller General shall issue to the 
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1 Congress a report determining whether any discretionary 

2 budget authority is not made available for obligation or 

3 item of direct spending or targeted tax benefit continues 

4 to be suspended after the deferral authority set forth in 

5 section 1013 of the President has expired. 

6 ‘‘DEFINITIONS

7 ‘‘SEC. 1017. As used in this part: 

8 ‘‘(1) APPROPRIATION LAW.—The term ‘appro9 priation law’ means an Act referred to in section 

10 105 of title 1, United States Code, including any 

11 general or special appropriation Act, or any Act 

12 making supplemental, deficiency, or continuing ap13 propriations, that has been signed into law pursuant 

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

15 United States. 

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

17 means a bill or joint resolution which only approves 

18 proposed cancellations of dollar amounts of discre19 tionary budget authority, items of new direct spend20 ing, or targeted tax benefits in a special message 

21 transmitted by the President under this part and—

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

23 approving the proposed cancellations trans24 mitted by the President on lll’, the blank 

25 space being filled in with the date of trans26 mission of the relevant special message and the 
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1 public law number to which the message re2 lates; 

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

4 ‘‘(C) which provides only the following 

5 after the enacting clause: ‘That the Congress 

6 approves of proposed cancellations lll’, the 

7 blank space being filled in with a list of the 

8 cancellations contained in the President’s spe9 cial message, ‘as transmitted by the President 

10 in a special message on llll’, the blank 

11 space being filled in with the appropriate date, 

12 ‘regarding llll.’, the blank space being 

13 filled in with the public law number to which 

14 the special message relates; 

15 ‘‘(D) which only includes proposed can16 cellations that are estimated by CBO to meet 

17 the definition of discretionary budgetary au18 thority or items of direct spending, or that are 

19 identified as targeted tax benefits pursuant to 

20 section 1014; 

21 ‘‘(E) if any proposed cancellation other 

22 than discretionary budget authority or targeted 

23 tax benefits is estimated by CBO to not meet 

24 the definition of item of direct spending, then 

25 the approval bill shall include at the end: ‘The 
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1 President shall cease the suspension of the im2 plementation of the following under section 

3 1013 of the Legislative Line Item Veto Act of 

4 2006: llll’, the blank space being filled in 

5 with the list of such proposed cancellations; and 

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

7 the entire list of legislative provisions proposed 

8 by the President is inserted in the second blank 

9 space in subparagraph (C). 

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

11 means a standard 24-hour period beginning at mid12 night. 

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

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

15 ‘‘(A) budget authority from having legal 

16 force or effect; 

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

18 to prevent the specific legal obligation of the 

19 United States from having legal force or effect; 

20 ‘‘(C) in the case of the food stamp pro21 gram, to prevent the specific provision of law 

22 that provides such benefit from having legal 

23 force or effect; or 

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

25 legal force or effect; and 
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1 to make any necessary, conforming statutory change 

2 to ensure that such targeted tax benefit is not imple3 mented and that any budgetary resources are appro4 priately canceled. 

5 ‘‘(5) CBO.—The term ‘CBO’ means the Direc6 tor of the Congressional Budget Office. 

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

8 spending’ means—

9 ‘‘(A) budget authority provided by law 

10 (other than an appropriation law); 

11 ‘‘(B) entitlement authority; and 

12 ‘‘(C) the food stamp program. 

13 ‘‘(7) DOLLAR AMOUNT OF DISCRETIONARY

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

15 subparagraph (B), the term ‘dollar amount of dis16 cretionary budget authority’ means the entire dollar 

17 amount of budget authority—

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

19 or the entire dollar amount of budget au20 thority or obligation limitation required to 

21 be allocated by a specific proviso in an ap22 propriation law for which a specific dollar 

23 figure was not included; 

24 ‘‘(ii) represented separately in any 

25 table, chart, or explanatory text included 
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1 in the statement of managers or the gov2 erning committee report accompanying 

3 such law; 

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

5 specific program, project, or activity in a 

6 law (other than an appropriation law) that 

7 mandates the expenditure of budget au8 thority from accounts, programs, projects, 

9 or activities for which budget authority is 

10 provided in an appropriation law; 

11 ‘‘(iv) represented by the product of 

12 the estimated procurement cost and the 

13 total quantity of items specified in an ap14 propriation law or included in the state15 ment of managers or the governing com16 mittee report accompanying such law; or 

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

18 estimated procurement cost and the total 

19 quantity of items required to be provided 

20 in a law (other than an appropriation law) 

21 that mandates the expenditure of budget 

22 authority from accounts, programs, 

23 projects, or activities for which budget au24 thority is provided in an appropriation law. 
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1 ‘‘(B) The term ‘dollar amount of discre2 tionary budget authority’ does not include—

3 ‘‘(i) direct spending; 

4 ‘‘(ii) budget authority in an appro5 priation law which funds direct spending 

6 provided for in other law; 

7 ‘‘(iii) any existing budget authority 

8 canceled in an appropriation law; or 

9 ‘‘(iv) any restriction, condition, or lim10 itation in an appropriation law or the ac11 companying statement of managers or 

12 committee reports on the expenditure of 

13 budget authority for an account, program, 

14 project, or activity, or on activities involv15 ing such expenditure. 

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

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

18 that results in an increase in budget authority or 

19 outlays for direct spending relative to the most re20 cent levels calculated consistent with the method21 ology used to calculate a baseline under section 257 

22 of the Balanced Budget and Emergency Deficit Con23 trol Act of 1985 and included with a budget submis24 sion under section 1105(a) of title 31, United States 

25 Code, in the first year or the 5-year period for which 
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1 the item is effective. However, such item does not in2 clude an extension or reauthorization of existing di3 rect spending, but instead only refers to provisions 

4 of law that increase such direct spending. 

5 ‘‘(9) OMB.—The term ‘OMB’ means the Direc6 tor of the Office of Management and Budget. 

7 ‘‘(10) OMNIBUS RECONCILIATION OR APPRO8 PRIATION MEASURE.—The term ‘omnibus reconcili9 ation or appropriation measure’ means—

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

11 such bill that is reported to its House by the 

12 Committee on the Budget; or 

13 ‘‘(B) in the case of an appropriation meas14 ure, any such measure that provides appropria15 tions for programs, projects, or activities falling 

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

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

18 ‘targeted tax benefit’ means any revenue-losing pro19 vision that provides a Federal tax deduction, credit, 

20 exclusion, or preference to only one beneficiary (de21 termined with respect to either present law or any 

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

23 Internal Revenue Code of 1986 in any year for 

24 which the provision is in effect; 

25 ‘‘(B) for purposes of subparagraph (A)—
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1 ‘‘(i) all businesses and associations 

2 that are members of the same controlled 

3 group of corporations (as defined in sec4 tion 1563(a) of the Internal Revenue Code 

5 of 1986) shall be treated as a single bene6 ficiary; 

7 ‘‘(ii) all shareholders, partners, mem8 bers, or beneficiaries of a corporation, 

9 partnership, association, or trust or estate, 

10 respectively, shall be treated as a single 

11 beneficiary; 

12 ‘‘(iii) all employees of an employer 

13 shall be treated as a single beneficiary; 

14 ‘‘(iv) all qualified plans of an em15 ployer shall be treated as a single bene16 ficiary; 

17 ‘‘(v) all beneficiaries of a qualified 

18 plan shall be treated as a single bene19 ficiary; 

20 ‘‘(vi) all contributors to a charitable 

21 organization shall be treated as a single 

22 beneficiary; 

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

24 issue shall be treated as a single bene25 ficiary; and 
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1 ‘‘(viii) if a corporation, partnership, 

2 association, trust or estate is the bene3 ficiary of a provision, the shareholders of 

4 the corporation, the partners of the part5 nership, the members of the association, or 

6 the beneficiaries of the trust or estate shall 

7 not also be treated as beneficiaries of such 

8 provision; 

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

10 term ‘revenue-losing provision’ means any pro11 vision that is estimated to result in a reduction 

12 in Federal tax revenues (determined with re13 spect to either present law or any provision of 

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

15 two following periods—

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

17 provision is effective; or 

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

19 beginning with the first fiscal year for 

20 which the provision is effective; and 

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

22 shall have the same meaning as those terms 

23 have generally in the Internal Revenue Code of 

24 1986, unless otherwise expressly provided. 
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1 ‘‘EXPIRATION

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

3 on or after October 1, 2012.’’. 

4 SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS. 

5 (a) EXERCISE OF RULEMAKING POWERS.—Section 

6 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

7 621 note) is amended—

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

9 inserting ‘‘1012’’; and 

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

11 1017’’ and inserting ‘‘section 1012’’. 

12 (b) ANALYSIS BY CONGRESSIONAL BUDGET OF13 FICE.—Section 402 of the Congressional Budget Act of 

14 1974 is amended by inserting ‘‘(a)’’ after ‘‘402.’’ and by 

15 adding at the end the following new subsection: 

16 ‘‘(b) Upon the receipt of a special message under sec17 tion 1011 proposing to cancel any item of direct spending, 

18 the Director of the Congressional Budget Office shall pre19 pare an estimate of the savings in budget authority or out20 lays resulting from such proposed cancellation relative to 

21 the most recent levels calculated consistent with the meth22 odology used to calculate a baseline under section 257 of 

23 the Balanced Budget and Emergency Deficit Control Act 

24 of 1985 and included with a budget submission under sec25 tion 1105(a) of title 31, United States Code, and transmit 
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1 such estimate to the chairmen of the Committees on the 

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

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

4 the Congressional Budget and Impoundment Control Act 

5 of 1974 is amended by striking the last sentence. 

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

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

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

9 ‘‘1012’’ and inserting ‘‘1011’’. 

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

11 forth in section 1(b) of the Congressional Budget and Im12 poundment Control Act of 1974 is amended by deleting 

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

14 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.’’.

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

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

17 apply only to any dollar amount of discretionary budget 

18 authority, item of direct spending, or targeted tax benefit 
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1 provided in an Act enacted on or after the date of enact2 ment of this Act. 

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

4 CANCELLATIONS. 

5 It is the sense of Congress no President or any execu6 tive branch official should condition the inclusion or exclu7 sion or threaten to condition the inclusion or exclusion of 

8 any proposed cancellation in any special message under 

9 this section upon any vote cast or to be cast by any Mem10 ber of either House of Congress.

Passed the House of Representatives June 22, 2006. 

Attest:

Clerk. 
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 ex-