[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 4 Enrolled Bill (ENR)]

        S.4

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
     To give the President line item veto authority with respect to 
     appropriations, new direct spending, and limited tax benefits.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Line Item Veto Act''.

SEC. 2. LINE ITEM VETO AUTHORITY.

    (a) In General.--Title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.) is amended by 
adding at the end the following new part:

                        ``Part C--Line Item Veto


                        ``LINE ITEM VETO AUTHORITY

    ``Sec. 1021. (a) In General.--Notwithstanding the provisions of 
parts A and B, and subject to the provisions of this part, the 
President may, with respect to any bill or joint resolution that has 
been signed into law pursuant to Article I, section 7, of the 
Constitution of the United States, cancel in whole--
        ``(1) any dollar amount of discretionary budget authority;
        ``(2) any item of new direct spending; or
        ``(3) any limited tax benefit;
if the President--
        ``(A) determines that such cancellation will--
            ``(i) reduce the Federal budget deficit;
            ``(ii) not impair any essential Government functions; and
            ``(iii) not harm the national interest; and
        ``(B) notifies the Congress of such cancellation by 
    transmitting a special message, in accordance with section 1022, 
    within five calendar days (excluding Sundays) after the enactment 
    of the law providing the dollar amount of discretionary budget 
    authority, item of new direct spending, or limited tax benefit that 
    was canceled.
    ``(b) Identification of Cancellations.--In identifying dollar 
amounts of discretionary budget authority, items of new direct 
spending, and limited tax benefits for cancellation, the President 
shall--
        ``(1) consider the legislative history, construction, and 
    purposes of the law which contains such dollar amounts, items, or 
    benefits;
        ``(2) consider any specific sources of information referenced 
    in such law or, in the absence of specific sources of information, 
    the best available information; and
        ``(3) use the definitions contained in section 1026 in applying 
    this part to the specific provisions of such law.
    ``(c) Exception for Disapproval Bills.--The authority granted by 
subsection (a) shall not apply to any dollar amount of discretionary 
budget authority, item of new direct spending, or limited tax benefit 
contained in any law that is a disapproval bill as defined in section 
1026.


                            ``SPECIAL MESSAGES

    ``Sec. 1022. (a) In General.--For each law from which a 
cancellation has been made under this part, the President shall 
transmit a single special message to the Congress.
    ``(b) Contents.--
        ``(1) The special message shall specify--
            ``(A) the dollar amount of discretionary budget authority, 
        item of new direct spending, or limited tax benefit which has 
        been canceled, and provide a corresponding reference number for 
        each cancellation;
            ``(B) the determinations required under section 1021(a), 
        together with any supporting material;
            ``(C) the reasons for the cancellation;
            ``(D) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the cancellation;
            ``(E) all facts, circumstances and considerations relating 
        to or bearing upon the cancellation, and to the maximum extent 
        practicable, the estimated effect of the cancellation upon the 
        objects, purposes and programs for which the canceled authority 
        was provided; and
            ``(F) include the adjustments that will be made pursuant to 
        section 1024 to the discretionary spending limits under section 
        601 and an evaluation of the effects of those adjustments upon 
        the sequestration procedures of section 251 of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
        ``(2) In the case of a cancellation of any dollar amount of 
    discretionary budget authority or item of new direct spending, the 
    special message shall also include, if applicable--
            ``(A) any account, department, or establishment of the 
        Government for which such budget authority was to have been 
        available for obligation and the specific project or 
        governmental functions involved;
            ``(B) the specific States and congressional districts, if 
        any, affected by the cancellation; and
            ``(C) the total number of cancellations imposed during the 
        current session of Congress on States and congressional 
        districts identified in subparagraph (B).
    ``(c) Transmission of Special Messages to House and Senate.--
        ``(1) The President shall transmit to the Congress each special 
    message under this part within five calendar days (excluding 
    Sundays) after enactment of the law to which the cancellation 
    applies. Each special message shall be transmitted to the House of 
    Representatives and the Senate on the same calendar day. Such 
    special message shall be delivered to the Clerk of the House of 
    Representatives if the House is not in session, and to the 
    Secretary of the Senate if the Senate is not in session.
        ``(2) Any special message transmitted under this part shall be 
    printed in the first issue of the Federal Register published after 
    such transmittal.


               ``CANCELLATION EFFECTIVE UNLESS DISAPPROVED

    ``Sec. 1023. (a) In General.--The cancellation of any dollar amount 
of discretionary budget authority, item of new direct spending, or 
limited tax benefit shall take effect upon receipt in the House of 
Representatives and the Senate of the special message notifying the 
Congress of the cancellation. If a disapproval bill for such special 
message is enacted into law, then all cancellations disapproved in that 
law shall be null and void and any such dollar amount of discretionary 
budget authority, item of new direct spending, or limited tax benefit 
shall be effective as of the original date provided in the law to which 
the cancellation applied.
    ``(b) Commensurate Reductions in Discretionary Budget Authority.--
Upon the cancellation of a dollar amount of discretionary budget 
authority under subsection (a), the total appropriation for each 
relevant account of which that dollar amount is a part shall be 
simultaneously reduced by the dollar amount of that cancellation.


                           ``DEFICIT REDUCTION

    ``Sec. 1024. (a) In General.--
        ``(1) Discretionary budget authority.--OMB shall, for each 
    dollar amount of discretionary budget authority and for each item 
    of new direct spending canceled from an appropriation law under 
    section 1021(a)--
            ``(A) reflect the reduction that results from such 
        cancellation in the estimates required by section 251(a)(7) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985 
        in accordance with that Act, including an estimate of the 
        reduction of the budget authority and the reduction in outlays 
        flowing from such reduction of budget authority for each 
        outyear; and
            ``(B) include a reduction to the discretionary spending 
        limits for budget authority and outlays in accordance with the 
        Balanced Budget and Emergency Deficit Control Act of 1985 for 
        each applicable fiscal year set forth in section 601(a)(2) by 
        amounts equal to the amounts for each fiscal year estimated 
        pursuant to subparagraph (A).
        ``(2) Direct spending and limited tax benefits.--(A) OMB shall, 
    for each item of new direct spending or limited tax benefit 
    canceled from a law under section 1021(a), estimate the deficit 
    decrease caused by the cancellation of such item or benefit in that 
    law and include such estimate as a separate entry in the report 
    prepared pursuant to section 252(d) of the Balanced Budget and 
    Emergency Deficit Control Act of 1985.
        ``(B) OMB shall not include any change in the deficit resulting 
    from a cancellation of any item of new direct spending or limited 
    tax benefit, or the enactment of a disapproval bill for any such 
    cancellation, under this part in the estimates and reports required 
    by sections 252(b) and 254 of the Balanced Budget and Emergency 
    Deficit Control Act of 1985.
    ``(b) Adjustments to Spending Limits.--After ten calendar days 
(excluding Sundays) after the expiration of the time period in section 
1025(b)(1) for expedited congressional consideration of a disapproval 
bill for a special message containing a cancellation of discretionary 
budget authority, OMB shall make the reduction included in subsection 
(a)(1)(B) as part of the next sequester report required by section 254 
of the Balanced Budget and Emergency Deficit Control Act of 1985.
    ``(c) Exception.--Subsection (b) shall not apply to a cancellation 
if a disapproval bill or other law that disapproves that cancellation 
is enacted into law prior to 10 calendar days (excluding Sundays) after 
the expiration of the time period set forth in section 1025(b)(1).
    ``(d) Congressional Budget Office Estimates.--As soon as 
practicable after the President makes a cancellation from a law under 
section 1021(a), the Director of the Congressional Budget Office shall 
provide the Committees on the Budget of the House of Representatives 
and the Senate with an estimate of the reduction of the budget 
authority and the reduction in outlays flowing from such reduction of 
budget authority for each outyear.


       ``EXPEDITED CONGRESSIONAL CONSIDERATION OF DISAPPROVAL BILLS

    ``Sec. 1025. (a) Receipt and Referral of Special Message.--Each 
special message transmitted under this part shall be referred to the 
Committee on the Budget and the appropriate committee or committees of 
the Senate and the Committee on the Budget and the appropriate 
committee or committees of the House of Representatives. Each such 
message shall be printed as a document of the House of Representatives.
    ``(b) Time Period for Expedited Procedures.--
        ``(1) There shall be a congressional review period of 30 
    calendar days of session, beginning on the first calendar day of 
    session after the date on which the special message is received in 
    the House of Representatives and the Senate, during which the 
    procedures contained in this section shall apply to both Houses of 
    Congress.
        ``(2) In the House of Representatives the procedures set forth 
    in this section shall not apply after the end of the period 
    described in paragraph (1).
        ``(3) If Congress adjourns at the end of a Congress prior to 
    the expiration of the period described in paragraph (1) and a 
    disapproval bill was then pending in either House of Congress or a 
    committee thereof (including a conference committee of the two 
    Houses of Congress), or was pending before the President, a 
    disapproval bill for the same special message may be introduced 
    within the first five calendar days of session of the next Congress 
    and shall be treated as a disapproval bill under this part, and the 
    time period described in paragraph (1) shall commence on the day of 
    introduction of that disapproval bill.
    ``(c) Introduction of Disapproval Bills.--(1) In order for a 
disapproval bill to be considered under the procedures set forth in 
this section, the bill must meet the definition of a disapproval bill 
and must be introduced no later than the fifth calendar day of session 
following the beginning of the period described in subsection (b)(1).
    ``(2) In the case of a disapproval bill introduced in the House of 
Representatives, such bill shall include in the first blank space 
referred to in section 1026(6)(C) a list of the reference numbers for 
all cancellations made by the President in the special message to which 
such disapproval bill relates.
    ``(d) Consideration in the House of Representatives.--(1) Any 
committee of the House of Representatives to which a disapproval bill 
is referred shall report it without amendment, and with or without 
recommendation, not later than the seventh calendar day of session 
after the date of its introduction. If any committee fails to report 
the bill within that period, it is in order to move that the House 
discharge the committee from further consideration of the bill, except 
that such a motion may not be made after the committee has reported a 
disapproval bill with respect to the same special message. A motion to 
discharge may be made only by a Member favoring the bill (but only at a 
time or place designated by the Speaker in the legislative schedule of 
the day after the calendar day on which the Member offering the motion 
announces to the House his intention to do so and the form of the 
motion). The motion is highly privileged. Debate thereon shall be 
limited to not more than one hour, the time to be divided in the House 
equally between a proponent and an opponent. The previous question 
shall be considered as ordered on the motion to its adoption without 
intervening motion. A motion to reconsider the vote by which the motion 
is agreed to or disagreed to shall not be in order.
    ``(2) After a disapproval bill is reported or a committee has been 
discharged from further consideration, it is in order to move that the 
House resolve into the Committee of the Whole House on the State of the 
Union for consideration of the bill. If reported and the report has 
been available for at least one calendar day, all points of order 
against the bill and against consideration of the bill are waived. If 
discharged, all points of order against the bill and against 
consideration of the bill are waived. The motion is highly privileged. 
A motion to reconsider the vote by which the motion is agreed to or 
disagreed to shall not be in order. During consideration of the bill in 
the Committee of the Whole, the first reading of the bill shall be 
dispensed with. General debate shall proceed, shall be confined to the 
bill, and shall not exceed one hour equally divided and controlled by a 
proponent and an opponent of the bill. The bill shall be considered as 
read for amendment under the five-minute rule. Only one motion to rise 
shall be in order, except if offered by the manager. No amendment to 
the bill is in order, except any Member if supported by 49 other 
Members (a quorum being present) may offer an amendment striking the 
reference number or numbers of a cancellation or cancellations from the 
bill. Consideration of the bill for amendment shall not exceed one hour 
excluding time for recorded votes and quorum calls. No amendment shall 
be subject to further amendment, except pro forma amendments for the 
purposes of debate only. At the conclusion of the consideration of the 
bill for amendment, the Committee shall rise and report the bill to the 
House with such amendments as may have been adopted. The previous 
question shall be considered as ordered on the bill and amendments 
thereto to final passage without intervening motion. A motion to 
reconsider the vote on passage of the bill shall not be in order.
    ``(3) Appeals from decisions of the Chair regarding application of 
the rules of the House of Representatives to the procedure relating to 
a disapproval bill shall be decided without debate.
    ``(4) It shall not be in order to consider under this subsection 
more than one disapproval bill for the same special message except for 
consideration of a similar Senate bill (unless the House has already 
rejected a disapproval bill for the same special message) or more than 
one motion to discharge described in paragraph (1) with respect to a 
disapproval bill for that special message.
    ``(e) Consideration in the Senate.--
        ``(1) Referral and reporting.--Any disapproval bill introduced 
    in the Senate shall be referred to the appropriate committee or 
    committees. A committee to which a disapproval bill has been 
    referred shall report the bill not later than the seventh day of 
    session following the date of introduction of that bill. If any 
    committee fails to report the bill within that period, that 
    committee shall be automatically discharged from further 
    consideration of the bill and the bill shall be placed on the 
    Calendar.
        ``(2) Disapproval bill from house.--When the Senate receives 
    from the House of Representatives a disapproval bill, such bill 
    shall not be referred to committee and shall be placed on the 
    Calendar.
        ``(3) Consideration of single disapproval bill.--After the 
    Senate has proceeded to the consideration of a disapproval bill for 
    a special message, then no other disapproval bill originating in 
    that same House relating to that same message shall be subject to 
    the procedures set forth in this subsection.
        ``(4) Amendments.--
            ``(A) Amendments in order.--The only amendments in order to 
        a disapproval bill are--
                ``(i) an amendment that strikes the reference number of 
            a cancellation from the disapproval bill; and
                ``(ii) an amendment that only inserts the reference 
            number of a cancellation included in the special message to 
            which the disapproval bill relates that is not already 
            contained in such bill.
            ``(B) Waiver or appeal.--An affirmative vote of three-
        fifths of the Senators, duly chosen and sworn, shall be 
        required in the Senate--
                ``(i) to waive or suspend this paragraph; or
                ``(ii) to sustain an appeal of the ruling of the Chair 
            on a point of order raised under this paragraph.
        ``(5) Motion nondebatable.--A motion to proceed to 
    consideration of a disapproval bill under this subsection shall not 
    be debatable. It shall not be in order to move to reconsider the 
    vote by which the motion to proceed was adopted or rejected, 
    although subsequent motions to proceed may be made under this 
    paragraph.
        ``(6) Limit on consideration.--(A) After no more than 10 hours 
    of consideration of a disapproval bill, the Senate shall proceed, 
    without intervening action or debate (except as permitted under 
    paragraph (9)), to vote on the final disposition thereof to the 
    exclusion of all amendments not then pending and to the exclusion 
    of all motions, except a motion to reconsider or to table.
        ``(B) A single motion to extend the time for consideration 
    under subparagraph (A) for no more than an additional five hours is 
    in order prior to the expiration of such time and shall be decided 
    without debate.
        ``(C) The time for debate on the disapproval bill shall be 
    equally divided between the Majority Leader and the Minority Leader 
    or their designees.
        ``(7) Debate on amendments.--Debate on any amendment to a 
    disapproval bill shall be limited to one hour, equally divided and 
    controlled by the Senator proposing the amendment and the majority 
    manager, unless the majority manager is in favor of the amendment, 
    in which case the minority manager shall be in control of the time 
    in opposition.
        ``(8) No motion to recommit.--A motion to recommit a 
    disapproval bill shall not be in order.
        ``(9) Disposition of senate disapproval bill.--If the Senate 
    has read for the third time a disapproval bill that originated in 
    the Senate, then it shall be in order at any time thereafter to 
    move to proceed to the consideration of a disapproval bill for the 
    same special message received from the House of Representatives and 
    placed on the Calendar pursuant to paragraph (2), strike all after 
    the enacting clause, substitute the text of the Senate disapproval 
    bill, agree to the Senate amendment, and vote on final disposition 
    of the House disapproval bill, all without any intervening action 
    or debate.
        ``(10) Consideration of house message.--Consideration in the 
    Senate of all motions, amendments, or appeals necessary to dispose 
    of a message from the House of Representatives on a disapproval 
    bill shall be limited to not more than four hours. Debate on each 
    motion or amendment shall be limited to 30 minutes. Debate on any 
    appeal or point of order that is submitted in connection with the 
    disposition of the House message shall be limited to 20 minutes. 
    Any time for debate shall be equally divided and controlled by the 
    proponent and the majority manager, unless the majority manager is 
    a proponent of the motion, amendment, appeal, or point of order, in 
    which case the minority manager shall be in control of the time in 
    opposition.
    ``(f) Consideration in Conference.--
        ``(1) Convening of conference.--In the case of disagreement 
    between the two Houses of Congress with respect to a disapproval 
    bill passed by both Houses, conferees should be promptly appointed 
    and a conference promptly convened, if necessary.
        ``(2) House consideration.--(A) Notwithstanding any other rule 
    of the House of Representatives, it shall be in order to consider 
    the report of a committee of conference relating to a disapproval 
    bill provided such report has been available for one calendar day 
    (excluding Saturdays, Sundays, or legal holidays, unless the House 
    is in session on such a day) and the accompanying statement shall 
    have been filed in the House.
        ``(B) Debate in the House of Representatives on the conference 
    report and any amendments in disagreement on any disapproval bill 
    shall each be limited to not more than one hour equally divided and 
    controlled by a proponent and an opponent. A motion to further 
    limit debate is not debatable. A motion to recommit the conference 
    report is not in order, and it is not in order to move to 
    reconsider the vote by which the conference report is agreed to or 
    disagreed to.
        ``(3) Senate consideration.--Consideration in the Senate of the 
    conference report and any amendments in disagreement on a 
    disapproval bill shall be limited to not more than four hours 
    equally divided and controlled by the Majority Leader and the 
    Minority Leader or their designees. A motion to recommit the 
    conference report is not in order.
        ``(4) Limits on scope.--(A) When a disagreement to an amendment 
    in the nature of a substitute has been referred to a conference, 
    the conferees shall report those cancellations that were included 
    in both the bill and the amendment, and may report a cancellation 
    included in either the bill or the amendment, but shall not include 
    any other matter.
        ``(B) When a disagreement on an amendment or amendments of one 
    House to the disapproval bill of the other House has been referred 
    to a committee of conference, the conferees shall report those 
    cancellations upon which both Houses agree and may report any or 
    all of those cancellations upon which there is disagreement, but 
    shall not include any other matter.


                              ``DEFINITIONS

    ``Sec. 1026. As used in this part:
        ``(1) Appropriation law.--The term `appropriation law' means an 
    Act referred to in section 105 of title 1, United States Code, 
    including any general or special appropriation Act, or any Act 
    making supplemental, deficiency, or continuing appropriations, that 
    has been signed into law pursuant to Article I, section 7, of the 
    Constitution of the United States.
        ``(2) Calendar day.--The term `calendar day' means a standard 
    24-hour period beginning at midnight.
        ``(3) Calendar days of session.--The term `calendar days of 
    session' shall mean only those days on which both Houses of 
    Congress are in session.
        ``(4) Cancel.--The term `cancel' or `cancellation' means--
            ``(A) with respect to any dollar amount of discretionary 
        budget authority, to rescind;
            ``(B) with respect to any item of new direct spending--
                ``(i) that is budget authority provided by law (other 
            than an appropriation law), to prevent such budget 
            authority from having legal force or effect;
                ``(ii) that is entitlement authority, to prevent the 
            specific legal obligation of the United States from having 
            legal force or effect; or
                ``(iii) through the food stamp program, to prevent the 
            specific provision of law that results in an increase in 
            budget authority or outlays for that program from having 
            legal force or effect; and
            ``(C) with respect to a limited tax benefit, to prevent the 
        specific provision of law that provides such benefit from 
        having legal force or effect.
        ``(5) Direct spending.--The term `direct spending' means--
            ``(A) budget authority provided by law (other than an 
        appropriation law);
            ``(B) entitlement authority; and
            ``(C) the food stamp program.
        ``(6) Disapproval bill.--The term `disapproval bill' means a 
    bill or joint resolution which only disapproves one or more 
    cancellations of dollar amounts of discretionary budget authority, 
    items of new direct spending, or limited tax benefits in a special 
    message transmitted by the President under this part and--
            ``(A) the title of which is as follows: `A bill 
        disapproving the cancellations transmitted by the President on 
        ________', the blank space being filled in with the date of 
        transmission of the relevant special message and the public law 
        number to which the message relates;
            ``(B) which does not have a preamble; and
            ``(C) which provides only the following after the enacting 
        clause: `That Congress disapproves of cancellations ________', 
        the blank space being filled in with a list by reference number 
        of one or more cancellations contained in the President's 
        special message, `as transmitted by the President in a special 
        message on ________', the blank space being filled in with the 
        appropriate date, `regarding ________.', the blank space being 
        filled in with the public law number to which the special 
        message relates.
        ``(7) Dollar amount of discretionary budget authority.--(A) 
    Except as provided in subparagraph (B), the term `dollar amount of 
    discretionary budget authority' means the entire dollar amount of 
    budget authority--
            ``(i) specified in an appropriation law, or the entire 
        dollar amount of budget authority required to be allocated by a 
        specific proviso in an appropriation law for which a specific 
        dollar figure was not included;
            ``(ii) represented separately in any table, chart, or 
        explanatory text included in the statement of managers or the 
        governing committee report accompanying such law;
            ``(iii) required to be allocated for a specific program, 
        project, or activity in a law (other than an appropriation law) 
        that mandates the expenditure of budget authority from 
        accounts, programs, projects, or activities for which budget 
        authority is provided in an appropriation law;
            ``(iv) represented by the product of the estimated 
        procurement cost and the total quantity of items specified in 
        an appropriation law or included in the statement of managers 
        or the governing committee report accompanying such law; and
            ``(v) represented by the product of the estimated 
        procurement cost and the total quantity of items required to be 
        provided in a law (other than an appropriation law) that 
        mandates the expenditure of budget authority from accounts, 
        programs, projects, or activities for which budget authority is 
        provided in an appropriation law.
        ``(B) The term `dollar amount of discretionary budget 
    authority' does not include--
            ``(i) direct spending;
            ``(ii) budget authority in an appropriation law which funds 
        direct spending provided for in other law;
            ``(iii) any existing budget authority rescinded or canceled 
        in an appropriation law; or
            ``(iv) any restriction, condition, or limitation in an 
        appropriation law or the accompanying statement of managers or 
        committee reports on the expenditure of budget authority for an 
        account, program, project, or activity, or on activities 
        involving such expenditure.
        ``(8) Item of new direct spending.--The term `item of new 
    direct spending' means any specific provision of law that is 
    estimated to result in an increase in budget authority or outlays 
    for direct spending relative to the most recent levels calculated 
    pursuant to section 257 of the Balanced Budget and Emergency 
    Deficit Control Act of 1985.
        ``(9) Limited tax benefit.--(A) The term `limited tax benefit' 
    means--
            ``(i) any revenue-losing provision which provides a Federal 
        tax deduction, credit, exclusion, or preference to 100 or fewer 
        beneficiaries under the Internal Revenue Code of 1986 in any 
        fiscal year for which the provision is in effect; and
            ``(ii) any Federal tax provision which provides temporary 
        or permanent transitional relief for 10 or fewer beneficiaries 
        in any fiscal year from a change to the Internal Revenue Code 
        of 1986.
        ``(B) A provision shall not be treated as described in 
    subparagraph (A)(i) if the effect of that provision is that--
            ``(i) all persons in the same industry or engaged in the 
        same type of activity receive the same treatment;
            ``(ii) all persons owning the same type of property, or 
        issuing the same type of investment, receive the same 
        treatment; or
            ``(iii) any difference in the treatment of persons is based 
        solely on--
                ``(I) in the case of businesses and associations, the 
            size or form of the business or association involved;
                ``(II) in the case of individuals, general demographic 
            conditions, such as income, marital status, number of 
            dependents, or tax return filing status;
                ``(III) the amount involved; or
                ``(IV) a generally-available election under the 
            Internal Revenue Code of 1986.
        ``(C) A provision shall not be treated as described in 
    subparagraph (A)(ii) if--
            ``(i) it provides for the retention of prior law with 
        respect to all binding contracts or other legally enforceable 
        obligations in existence on a date contemporaneous with 
        congressional action specifying such date; or
            ``(ii) it is a technical correction to previously enacted 
        legislation that is estimated to have no revenue effect.
        ``(D) For purposes of subparagraph (A)--
            ``(i) all businesses and associations which are related 
        within the meaning of sections 707(b) and 1563(a) of the 
        Internal Revenue Code of 1986 shall be treated as a single 
        beneficiary;
            ``(ii) all qualified plans of an employer shall be treated 
        as a single beneficiary;
            ``(iii) all holders of the same bond issue shall be treated 
        as a single beneficiary; and
            ``(iv) if a corporation, partnership, association, trust or 
        estate is the beneficiary of a provision, the shareholders of 
        the corporation, the partners of the partnership, the members 
        of the association, or the beneficiaries of the trust or estate 
        shall not also be treated as beneficiaries of such provision.
        ``(E) For purposes of this paragraph, the term `revenue-losing 
    provision' means any provision which results in a reduction in 
    Federal tax revenues for any one of the two following periods--
            ``(i) the first fiscal year for which the provision is 
        effective; or
            ``(ii) the period of the 5 fiscal years beginning with the 
        first fiscal year for which the provision is effective.
        ``(F) The terms used in this paragraph shall have the same 
    meaning as those terms have generally in the Internal Revenue Code 
    of 1986, unless otherwise expressly provided.
        ``(10) OMB.--The term `OMB' means the Director of the Office of 
    Management and Budget.


                 ``IDENTIFICATION OF LIMITED TAX BENEFITS

    ``Sec. 1027. (a) Statement by Joint Tax Committee.--The Joint 
Committee on Taxation shall review any revenue or reconciliation bill 
or joint resolution which includes any amendment to the Internal 
Revenue Code of 1986 that is being prepared for filing by a committee 
of conference of the two Houses, and shall identify whether such bill 
or joint resolution contains any limited tax benefits. The Joint 
Committee on Taxation shall provide to the committee of conference a 
statement identifying any such limited tax benefits or declaring that 
the bill or joint resolution does not contain any limited tax benefits. 
Any such statement shall be made available to any Member of Congress by 
the Joint Committee on Taxation immediately upon request.
    ``(b) Statement Included in Legislation.--(1) Notwithstanding any 
other rule of the House of Representatives or any rule or precedent of 
the Senate, any revenue or reconciliation bill or joint resolution 
which includes any amendment to the Internal Revenue Code of 1986 
reported by a committee of conference of the two Houses may include, as 
a separate section of such bill or joint resolution, the information 
contained in the statement of the Joint Committee on Taxation, but only 
in the manner set forth in paragraph (2).
    ``(2) The separate section permitted under paragraph (1) shall read 
as follows: `Section 1021(a)(3) of the Congressional Budget and 
Impoundment Control Act of 1974 shall ________ apply to ____________.', 
with the blank spaces being filled in with--
        ``(A) in any case in which the Joint Committee on Taxation 
    identifies limited tax benefits in the statement required under 
    subsection (a), the word `only' in the first blank space and a list 
    of all of the specific provisions of the bill or joint resolution 
    identified by the Joint Committee on Taxation in such statement in 
    the second blank space; or
        ``(B) in any case in which the Joint Committee on Taxation 
    declares that there are no limited tax benefits in the statement 
    required under subsection (a), the word `not' in the first blank 
    space and the phrase `any provision of this Act' in the second 
    blank space.
    ``(c) President's Authority.--If any revenue or reconciliation bill 
or joint resolution is signed into law pursuant to Article I, section 
7, of the Constitution of the United States--
        ``(1) with a separate section described in subsection (b)(2), 
    then the President may use the authority granted in section 
    1021(a)(3) only to cancel any limited tax benefit in that law, if 
    any, identified in such separate section; or
        ``(2) without a separate section described in subsection 
    (b)(2), then the President may use the authority granted in section 
    1021(a)(3) to cancel any limited tax benefit in that law that meets 
    the definition in section 1026.
    ``(d) Congressional Identifications of Limited Tax Benefits.--There 
shall be no judicial review of the congressional identification under 
subsections (a) and (b) of a limited tax benefit in a conference 
report.''.

SEC. 3. JUDICIAL REVIEW.

    (a) Expedited Review.--
        (1) Any Member of Congress or any individual adversely affected 
    by part C of title X of the Congressional Budget and Impoundment 
    Control Act of 1974 may bring an action, in the United States 
    District Court for the District of Columbia, for declaratory 
    judgment and injunctive relief on the ground that any provision of 
    this part violates the Constitution.
        (2) A copy of any complaint in an action brought under 
    paragraph (1) shall be promptly delivered to the Secretary of the 
    Senate and the Clerk of the House of Representatives, and each 
    House of Congress shall have the right to intervene in such action.
        (3) Nothing in this section or in any other law shall infringe 
    upon the right of the House of Representatives to intervene in an 
    action brought under paragraph (1) without the necessity of 
    adopting a resolution to authorize such intervention.
    (b) Appeal to Supreme Court.--Notwithstanding any other provision 
of law, any order of the United States District Court for the District 
of Columbia which is issued pursuant to an action brought under 
paragraph (1) of subsection (a) shall be reviewable by appeal directly 
to the Supreme Court of the United States. Any such appeal shall be 
taken by a notice of appeal filed within 10 calendar days after such 
order is entered; and the jurisdictional statement shall be filed 
within 30 calendar days after such order is entered. No stay of an 
order issued pursuant to an action brought under paragraph (1) of 
subsection (a) shall be issued by a single Justice of the Supreme 
Court.
    (c) Expedited Consideration.--It shall be the duty of the District 
Court for the District of Columbia and the Supreme Court of the United 
States to advance on the docket and to expedite to the greatest 
possible extent the disposition of any matter brought under subsection 
(a).

SEC. 4. CONFORMING AMENDMENTS.

    (a) Short Titles.--Section 1(a) of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by--
        (1) striking ``and'' before ``title X'' and inserting a period;
        (2) inserting ``Parts A and B of'' before ``title X''; and
        (3) inserting at the end the following new sentence: ``Part C 
    of title X may be cited as the `Line Item Veto Act of 1996'.''.
    (b) Table of Contents.--The table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Control Act of 1974 is 
amended by adding at the end the following:

                        ``Part C--Line Item Veto

``Sec. 1021. Line item veto authority.
``Sec. 1022. Special messages.
``Sec. 1023. Cancellation effective unless disapproved.
``Sec. 1024. Deficit reduction.
``Sec. 1025. Expedited congressional consideration of disapproval bills.
``Sec. 1026. Definitions.
``Sec. 1027. Identification of limited tax benefits.''.

    (c) Exercise of Rulemaking Powers.--Section 904(a) of the 
Congressional Budget Act of 1974 is amended by striking ``and 1017'' 
and inserting ``, 1017, 1025, and 1027''.

SEC. 5. EFFECTIVE DATES.

    This Act and the amendments made by it shall take effect and apply 
to measures enacted on the earlier of--
        (1) the day after the enactment into law, pursuant to Article 
    I, section 7, of the Constitution of the United States, of an Act 
    entitled ``An Act to provide for a seven-year plan for deficit 
    reduction and achieve a balanced Federal budget.''; or
        (2) January 1, 1997;
and shall have no force or effect on or after January 1, 2005.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.