[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4890 Placed on Calendar Senate (PCS)]


                                                       Calendar No. 589
109th CONGRESS
  2d Session
                                H. R. 4890


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 23, 2006

                                Received

                             August 3, 2006

                          Read the first time

                           September 5, 2006

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 AN ACT


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

    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 ``Legislative Line Item Veto Act of 
2006''.

SEC. 2. LEGISLATIVE LINE ITEM VETO.

    (a) In General.--Title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.) is amended by 
striking all of part B (except for sections 1016 and 1013, which are 
redesignated as sections 1019 and 1020, respectively) and part C and 
inserting the following:

                  ``Part B--Legislative Line-Item Veto

                       ``line item veto authority

    ``Sec. 1011.  (a) Proposed Cancellations.--Within 45 calendar days 
after the enactment of any bill or joint resolution providing any 
discretionary budget authority, item of direct spending, or targeted 
tax benefit, the President may propose, in the manner provided in 
subsection (b), the cancellation of any dollar amount of such 
discretionary budget authority, item of direct spending, or targeted 
tax benefit. If the 45 calendar-day period expires during a period 
where either House of Congress stands adjourned sine die at the end of 
a Congress or for a period greater than 45 calendar days, the President 
may propose a cancellation under this section and transmit a special 
message under subsection (b) on the first calendar day of session 
following such a period of adjournment.
    ``(b) Transmittal of Special Message.--
            ``(1) Special message.--
                    ``(A) In general.--The President may transmit to 
                the Congress a special message proposing to cancel any 
                dollar amounts of discretionary budget authority, items 
                of direct spending, or targeted tax benefits.
                    ``(B) Contents of special message.--Each special 
                message shall specify, with respect to the 
                discretionary budget authority, items of direct 
                spending proposed, or targeted tax benefits to be 
                canceled--
                            ``(i) the dollar amount of discretionary 
                        budget authority, the specific item of direct 
                        spending (that OMB, after consultation with 
                        CBO, estimates to increase budget authority or 
                        outlays as required by section 1017(9)), or the 
                        targeted tax benefit that the President 
                        proposes be canceled;
                            ``(ii) any account, department, or 
                        establishment of the Government to which such 
                        discretionary budget authority is available for 
                        obligation, and the specific project or 
                        governmental functions involved;
                            ``(iii) the reasons why such discretionary 
                        budget authority, item of direct spending, or 
                        targeted tax benefit should be canceled;
                            ``(iv) to the maximum extent practicable, 
                        the estimated fiscal, economic, and budgetary 
                        effect (including the effect on outlays and 
                        receipts in each fiscal year) of the proposed 
                        cancellation;
                            ``(v) to the maximum extent practicable, 
                        all facts, circumstances, and considerations 
                        relating to or bearing upon the proposed 
                        cancellation and the decision to effect the 
                        proposed cancellation, and the estimated effect 
                        of the proposed cancellation upon the objects, 
                        purposes, or programs for which the 
                        discretionary budget authority, item of direct 
                        spending, or the targeted tax benefit is 
                        provided;
                            ``(vi) a numbered list of cancellations to 
                        be included in an approval bill that, if 
                        enacted, would cancel discretionary budget 
                        authority, items of direct spending, or 
                        targeted tax benefits proposed in that special 
                        message; and
                            ``(vii) if the special message is 
                        transmitted subsequent to or at the same time 
                        as another special message, a detailed 
                        explanation why the proposed cancellations are 
                        not substantially similar to any other proposed 
                        cancellation in such other message.
                    ``(C) Duplicative proposals prohibited.--The 
                President may not propose to cancel the same or 
                substantially similar discretionary budget authority, 
                item of direct spending, or targeted tax benefit more 
                than one time under this Act.
                    ``(D) Maximum number of special messages.--The 
                President may not transmit to the Congress more than 5 
                special messages under this subsection related to any 
                bill or joint resolution described in subsection (a), 
                but may transmit not more than 10 special messages for 
                any omnibus budget reconciliation or appropriation 
                measure.
            ``(2) Enactment of approval bill.--
                    ``(A) Deficit reduction.--Amounts of budget 
                authority, items of direct spending, or targeted tax 
                benefits which are canceled pursuant to enactment of a 
                bill as provided under this section shall be dedicated 
                only to reducing the deficit or increasing the surplus.
                    ``(B) Adjustment of levels in the concurrent 
                resolution on the budget.--Not later than 5 days after 
                the date of enactment of an approval bill as provided 
                under this section, the chairs of the Committees on the 
                Budget of the Senate and the House of Representatives 
                shall revise allocations and aggregates and other 
                appropriate levels under the appropriate concurrent 
                resolution on the budget to reflect the cancellation, 
                and the applicable committees shall report revised 
                suballocations pursuant to section 302(b), as 
                appropriate.
                    ``(C) Adjustments to statutory limits.--After 
                enactment of an approval bill as provided under this 
                section, the Office of Management and Budget shall 
                revise applicable limits under the Balanced Budget and 
                Emergency Deficit Control Act of 1985, as appropriate.
                    ``(D) Trust funds and special funds.--
                Nothwithstanding subparagraph (A), nothing in this part 
                shall be construed to require or allow the deposit of 
                amounts derived from a trust fund or special fund which 
                are canceled pursuant to enactment of a bill as 
                provided under this section to any other fund.

                ``procedures for expedited consideration

    ``Sec. 1012.  (a) Expedited Consideration.--
            ``(1) In general.--The majority leader of each House or his 
        designee shall (by request) introduce an approval bill as 
        defined in section 1017 not later than the fifth day of session 
        of that House after the date of receipt of a special message 
        transmitted to the Congress under section 1011(b).
            ``(2) Consideration in the house of representatives.--
                    ``(A) Referral and reporting.--Any committee of the 
                House of Representatives to which an approval bill is 
                referred shall report it to the House without amendment 
                not later than the seventh legislative day after the 
                date of its introduction. If a committee fails to 
                report the bill within that period or the House has 
                adopted a concurrent resolution providing for 
                adjournment sine die at the end of a Congress, it shall 
                be in order to move that the House discharge the 
                committee from further consideration of the bill. Such 
                a motion shall be in order only at a time designated by 
                the Speaker in the legislative schedule within two 
                legislative days after the day on which the proponent 
                announces his intention to offer the motion. Such a 
                motion shall not be in order after a committee has 
                reported an approval bill with respect to that special 
                message or after the House has disposed of a motion to 
                discharge with respect to that special message. The 
                previous question shall be considered as ordered on the 
                motion to its adoption without intervening motion 
                except twenty minutes of debate equally divided and 
                controlled by the proponent and an opponent. If such a 
                motion is adopted, the House shall proceed immediately 
                to consider the approval bill in accordance with 
                subparagraph (C). A motion to reconsider the vote by 
                which the motion is disposed of shall not be in order.
                    ``(B) Proceeding to consideration.--After an 
                approval bill is reported or a committee has been 
                discharged from further consideration, or the House has 
                adopted a concurrent resolution providing for 
                adjournment sine die at the end of a Congress, it shall 
                be in order to move to proceed to consider the approval 
                bill in the House. Such a motion shall be in order only 
                at a time designated by the Speaker in the legislative 
                schedule within two legislative days after the day on 
                which the proponent announces his intention to offer 
                the motion. Such a motion shall not be in order after 
                the House has disposed of a motion to proceed with 
                respect to that special message. 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 disposed of 
                shall not be in order.
                    ``(C) Consideration.--The approval bill shall be 
                considered as read. All points of order against an 
                approval bill and against its consideration are waived. 
                The previous question shall be considered as ordered on 
                an approval bill to its passage without intervening 
                motion except five hours of debate equally divided and 
                controlled by the proponent and an opponent and one 
                motion to limit debate on the bill. A motion to 
                reconsider the vote on passage of the bill shall not be 
                in order.
                    ``(D) Senate bill.--An approval bill received from 
                the Senate shall not be referred to committee.
            ``(3) Consideration in the senate.--
                    ``(A) Motion to proceed to consideration.--A motion 
                to proceed to the consideration of a bill under this 
                subsection in the Senate shall not be debatable. It 
                shall not be in order to move to reconsider the vote by 
                which the motion to proceed is agreed to or disagreed 
                to.
                    ``(B) Limits on debate.--Debate in the Senate on a 
                bill under this subsection, and all debatable motions 
                and appeals in connection therewith (including debate 
                pursuant to subparagraph (D)), shall not exceed 10 
                hours, equally divided and controlled in the usual 
                form.
                    ``(C) Appeals.--Debate in the Senate on any 
                debatable motion or appeal in connection with a bill 
                under this subsection shall be limited to not more than 
                1 hour, to be equally divided and controlled in the 
                usual form.
                    ``(D) Motion to limit debate.--A motion in the 
                Senate to further limit debate on a bill under this 
                subsection is not debatable.
                    ``(E) Motion to recommit.--A motion to recommit a 
                bill under this subsection is not in order.
                    ``(F) Consideration of the house bill.--
                            ``(i) In general.--If the Senate has 
                        received the House companion bill to the bill 
                        introduced in the Senate prior to the vote 
                        required under paragraph (1)(C), then the 
                        Senate may consider, and the vote under 
                        paragraph (1)(C) may occur on, the House 
                        companion bill.
                            ``(ii) Procedure after vote on senate 
                        bill.--If the Senate votes, pursuant to 
                        paragraph (1)(C), on the bill introduced in the 
                        Senate, then immediately following that vote, 
                        or upon receipt of the House companion bill, 
                        the House bill shall be deemed to be 
                        considered, read the third time, and the vote 
                        on passage of the Senate bill shall be 
                        considered to be the vote on the bill received 
                        from the House.
    ``(b) Amendments Prohibited.--No amendment to, or motion to strike 
a provision from, a bill considered under this section shall be in 
order in either the Senate or the House of Representatives.

                   ``presidential deferral authority

    ``Sec. 1013.  (a) Temporary Presidential Authority to Withhold 
Discretionary Budget Authority.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may direct that any dollar amount of 
        discretionary budget authority to be canceled in that special 
        message shall not be made available for obligation for a period 
        not to exceed 45 calendar days from the date the President 
        transmits the special message to the Congress.
            ``(2) Early availability.--The President shall make any 
        dollar amount of discretionary budget authority deferred 
        pursuant to paragraph (1) available at a time earlier than the 
        time specified by the President if the President determines 
        that continuation of the deferral would not further the 
        purposes of this Act.
    ``(b) Temporary Presidential Authority to Suspend Direct 
Spending.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        item of direct spending proposed to be canceled in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any item of direct spending at a time earlier 
        than the time specified by the President if the President 
        determines that continuation of the suspension would not 
        further the purposes of this Act.
    ``(c) Temporary Presidential Authority to Suspend a Targeted Tax 
Benefit.--
            ``(1) In general.--At the same time as the President 
        transmits to the Congress a special message pursuant to section 
        1011(b), the President may suspend the implementation of any 
        targeted tax benefit proposed to be repealed in that special 
        message for a period not to exceed 45 calendar days from the 
        date the President transmits the special message to the 
        Congress.
            ``(2) Early availability.--The President shall terminate 
        the suspension of any targeted tax benefit at a time earlier 
        than the time specified by the President if the President 
        determines that continuation of the suspension would not 
        further the purposes of this Act.
    ``(d) Extension of 45-Day Period.--The President may transmit to 
the Congress not more than one supplemental special message to extend 
the period to suspend the implementation of any discretionary budget 
authority, item of direct spending, or targeted tax benefit, as 
applicable, by an additional 45 calendar days. Any such supplemental 
message may not be transmitted to the Congress before the 40th day of 
the 45-day period set forth in the preceding message or later than the 
last day of such period.

               ``identification of targeted tax benefits

    ``Sec. 1014.  (a) Statement.--The chairman of the Committee on Ways 
and Means of the House of Representatives and the chairman of the 
Committee on Finance of the Senate acting jointly (hereafter in this 
subsection referred to as the `chairmen') 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 targeted tax benefits. The 
chairmen shall provide to the committee of conference a statement 
identifying any such targeted tax benefits or declaring that the bill 
or joint resolution does not contain any targeted tax benefits. Any 
such statement shall be made available to any Member of Congress by the 
chairmen immediately upon request.
    ``(b) Statement Included in Legislation.--
            ``(1) In general.--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 
        chairmen, but only in the manner set forth in paragraph (2).
            ``(2) Applicability.--The separate section permitted under 
        subparagraph (A) shall read as follows: `Section 1021 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 chairmen identify 
                targeted 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 chairmen 
                in such statement in the second blank space; or
                    ``(B) in any case in which the chairmen declare 
                that there are no targeted 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) Identification in Revenue Estimate.--With respect to any 
revenue or reconciliation bill or joint resolution with respect to 
which the chairmen provide a statement under subsection (a), the Joint 
Committee on Taxation shall--
            ``(1) in the case of a statement described in subsection 
        (b)(2)(A), list the targeted tax benefits identified by the 
        chairmen in such statement in any revenue estimate prepared by 
        the Joint Committee on Taxation for any conference report which 
        accompanies such bill or joint resolution, or
            ``(2) in the case of a statement described in 13 subsection 
        (b)(2)(B), indicate in such revenue estimate that no provision 
        in such bill or joint resolution has been identified as a 
        targeted tax benefit.
    ``(d) President's Authority.--If any revenue or reconciliation bill 
or joint resolution is signed into law--
            ``(1) with a separate section described in subsection 
        (b)(2), then the President may use the authority granted in 
        this section only with respect to any targeted 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 
        this section with respect to any targeted tax benefit in that 
        law.

                      ``treatment of cancellations

    ``Sec. 1015. The cancellation of any dollar amount of discretionary 
budget authority, item of direct spending, or targeted tax benefit 
shall take effect only upon enactment of the applicable approval bill. 
If an approval bill is not enacted into law before the end of the 
applicable period under section 1013, then all proposed cancellations 
contained in that bill shall be null and void and any such dollar 
amount of discretionary budget authority, item of direct spending, or 
targeted tax benefit shall be effective as of the original date 
provided in the law to which the proposed cancellations applied.

                    ``reports by comptroller general

    ``Sec. 1016. With respect to each special message under this part, 
the Comptroller General shall issue to the Congress a report 
determining whether any discretionary budget authority is not made 
available for obligation or item of direct spending or targeted tax 
benefit continues to be suspended after the deferral authority set 
forth in section 1013 of the President has expired.

                             ``definitions

    ``Sec. 1017. 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) Approval bill.--The term `approval bill' means a bill 
        or joint resolution which only approves proposed cancellations 
        of dollar amounts of discretionary budget authority, items of 
        new direct spending, or targeted tax benefits in a special 
        message transmitted by the President under this part and--
                    ``(A) the title of which is as follows: `A bill 
                approving the proposed 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 the Congress approves of 
                proposed cancellations ___', the blank space being 
                filled in with a list of the 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;
                    ``(D) which only includes proposed cancellations 
                that are estimated by CBO to meet the definition of 
                discretionary budgetary authority or items of direct 
                spending, or that are identified as targeted tax 
                benefits pursuant to section 1014;
                    ``(E) if any proposed cancellation other than 
                discretionary budget authority or targeted tax benefits 
                is estimated by CBO to not meet the definition of item 
                of direct spending, then the approval bill shall 
                include at the end: `The President shall cease the 
                suspension of the implementation of the following under 
                section 1013 of the Legislative Line Item Veto Act of 
                2006: ____', the blank space being filled in with the 
                list of such proposed cancellations; and
                    ``(F) if no CBO estimate is available, then the 
                entire list of legislative provisions proposed by the 
                President is inserted in the second blank space in 
                subparagraph (C).
            ``(3) Calendar day.--The term `calendar day' means a 
        standard 24-hour period beginning at midnight.
            ``(4) Cancel or cancellation.--The terms `cancel' or 
        `cancellation' means to prevent--
                    ``(A) budget authority from having legal force or 
                effect;
                    ``(B) in the case of entitlement authority, to 
                prevent the specific legal obligation of the United 
                States from having legal force or effect;
                    ``(C) in the case of the food stamp program, to 
                prevent the specific provision of law that provides 
                such benefit from having legal force or effect; or
                    ``(D) a targeted tax benefit from having legal 
                force or effect; and
        to make any necessary, conforming statutory change to ensure 
        that such targeted tax benefit is not implemented and that any 
        budgetary resources are appropriately canceled.
            ``(5) CBO.--The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(6) 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.
            ``(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 or 
                        obligation limitation 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; or
                            ``(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 
                        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 direct spending.--The term `item of direct 
        spending' means any provision of law that results in an 
        increase in budget authority or outlays for direct spending 
        relative to the most recent levels calculated consistent with 
        the methodology used to calculate a baseline under section 257 
        of the Balanced Budget and Emergency Deficit Control Act of 
        1985 and included with a budget submission under section 
        1105(a) of title 31, United States Code, in the first year or 
        the 5-year period for which the item is effective. However, 
        such item does not include an extension or reauthorization of 
        existing direct spending, but instead only refers to provisions 
        of law that increase such direct spending.
            ``(9) OMB.--The term `OMB' means the Director of the Office 
        of Management and Budget.
            ``(10) Omnibus reconciliation or appropriation measure.--
        The term `omnibus reconciliation or appropriation measure' 
        means--
                    ``(A) in the case of a reconciliation bill, any 
                such bill that is reported to its House by the 
                Committee on the Budget; or
                    ``(B) in the case of an appropriation measure, any 
                such measure that provides appropriations for programs, 
                projects, or activities falling within 2 or more 
                section 302(b) suballocations.
            ``(11) Targeted tax benefit.--(A) The term `targeted tax 
        benefit' means any revenue-losing provision that provides a 
        Federal tax deduction, credit, exclusion, or preference to only 
        one beneficiary (determined with respect to either present law 
        or any provision of which the provision is a part) under the 
        Internal Revenue Code of 1986 in any year for which the 
        provision is in effect;
                    ``(B) for purposes of subparagraph (A)--
                            ``(i) all businesses and associations that 
                        are members of the same controlled group of 
                        corporations (as defined in section 1563(a) of 
                        the Internal Revenue Code of 1986) shall be 
                        treated as a single beneficiary;
                            ``(ii) all shareholders, partners, members, 
                        or beneficiaries of a corporation, partnership, 
                        association, or trust or estate, respectively, 
                        shall be treated as a single beneficiary;
                            ``(iii) all employees of an employer shall 
                        be treated as a single beneficiary;
                            ``(iv) all qualified plans of an employer 
                        shall be treated as a single beneficiary;
                            ``(v) all beneficiaries of a qualified plan 
                        shall be treated as a single beneficiary;
                            ``(vi) all contributors to a charitable 
                        organization shall be treated as a single 
                        beneficiary;
                            ``(vii) all holders of the same bond issue 
                        shall be treated as a single beneficiary; and
                            ``(viii) 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;
                    ``(C) for the purpose of this paragraph, the term 
                `revenue-losing provision' means any provision that is 
                estimated to result in a reduction in Federal tax 
                revenues (determined with respect to either present law 
                or any provision of which the provision is a part) 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; and
                    ``(D) 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.

                              ``expiration

    ``Sec. 1018. This title shall have no force or effect on or after 
October 1, 2012.''.

SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Exercise of Rulemaking Powers.--Section 904 of the 
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
            (1) in subsection (a), by striking ``1017'' and inserting 
        ``1012''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``section 1012''.
    (b) Analysis by Congressional Budget Office.--Section 402 of the 
Congressional Budget Act of 1974 is amended by inserting ``(a)'' after 
``402.'' and by adding at the end the following new subsection:
    ``(b) Upon the receipt of a special message under section 1011 
proposing to cancel any item of direct spending, the Director of the 
Congressional Budget Office shall prepare an estimate of the savings in 
budget authority or outlays resulting from such proposed cancellation 
relative to the most recent levels calculated consistent with the 
methodology used to calculate a baseline under section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 and included 
with a budget submission under section 1105(a) of title 31, United 
States Code, and transmit such estimate to the chairmen of the 
Committees on the Budget of the House of Representatives and Senate.''.
    (c) Clerical Amendments.--(1) Section 1(a) of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by striking the 
last sentence.
    (2) Section 1022(c) of such Act (as redesignated) is amended is 
amended by striking ``rescinded or that is to be reserved'' and insert 
``canceled'' and by striking ``1012'' and inserting ``1011''.
    (3) 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 deleting the contents for parts B and C of title X and 
inserting 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.''.
    (d) Effective Date.--The amendments made by this Act shall take 
effect on the date of its enactment and apply only to any dollar amount 
of discretionary budget authority, item of direct spending, or targeted 
tax benefit provided in an Act enacted on or after the date of 
enactment of this Act.

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

    It is the sense of Congress no President or any executive branch 
official should condition the inclusion or exclusion or threaten to 
condition the inclusion or exclusion of any proposed cancellation in 
any special message under this section upon any vote cast or to be cast 
by any Member of either House of Congress.

            Passed the House of Representatives June 22, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
                                                       Calendar No. 589

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.

_______________________________________________________________________

                           September 5, 2006

            Read the second time and placed on the calendar