II 111th CONGRESS 1st Session S. 640 IN THE SENATE OF THE UNITED STATES March 19, 2009 Mr. Gregg (for himself and Mr. Lieberman) introduced the following bill; which was read twice and referred to the Committee on the Budget A BILL To provide Congress a second look at wasteful spending by establishing enhanced rescission authority under fast-track procedures.

1.

Short title

This Act may be cited as the Second Look at Wasteful Spending Act of 2009.

2.

Enhanced rescission authority

(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 part C and inserting the following: C

Enhanced rescission authority

1021.

Expedited Consideration of certain proposed rescissions

(a)

Proposed Rescissions

The President may send a special message, at the time and in the manner provided in subsection (b), that proposes to rescind dollar amounts of discretionary budget authority, items of direct spending, and targeted tax benefits. (b)

Transmittal of Special Message

(1)

Special message

(A)

In general

(i)

Four messages

The President may transmit to Congress not to exceed 4 special messages per calendar year, proposing to rescind dollar amounts of discretionary budget authority, items of direct spending, and targeted tax benefits. (ii)

Timing

Special messages may be transmitted under clause (i)— (I)with the President’s budget submitted pursuant to section 1105 of title 31, United States Code; and (II)3 other times as determined by the President. (iii)

Limitations

(I)

In general

Special messages shall be submitted within 1 calendar year of the date of enactment of any dollar amount of discretionary budget authority, item of direct spending, or targeted tax benefit the President proposes to rescind pursuant to this Act. (II)

Resubmittal rejected

If Congress rejects a bill introduced under this part, the President may not resubmit any of the dollar amounts of discretionary budget authority, items of direct spending, or targeted tax benefits in that bill under this part, or part B with respect to dollar amounts of discretionary budget authority. (III)

Resubmital after sine die

If Congress does not complete action on a bill introduced under this part because Congress adjourns sine die, the President may resubmit some or all of the dollar amounts of discretionary budget authority, items of direct spending, and targeted tax benefits in that bill in not more than 1 subsequent special message under this part, or part B with respect to dollar amounts of discretionary budget authority. (B)

Contents of special message

Each special message shall specify, with respect to the dollar amount of discretionary budget authority, item of direct spending, or targeted tax benefit proposed to be rescinded— (i)the dollar amount of discretionary budget authority available and proposed for rescission from accounts, departments, or establishments of the government and the dollar amount of the reduction in outlays that would result from the enactment of such rescission of discretionary budget authority for the time periods set forth in clause (iii); (ii)the specific items of direct spending and targeted tax benefits proposed for rescission and the dollar amounts of the reductions in budget authority and outlays or increases in receipts that would result from enactment of such rescission for the time periods set forth in clause (iii); (iii)the budgetary effects of proposals for rescission, estimated as of the date the President submits the special message, relative to the most recent levels calculated consistent with the methodology described in 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, for the time periods of— (I)the fiscal year in which the proposal is submitted; and (II)each of the 10 following fiscal years beginning with the fiscal year after the fiscal year in which the proposal is submitted; (iv)any account, department, or establishment of the Government to which such dollar amount of discretionary budget authority or item of direct spending is available for obligation, and the specific project or governmental functions involved; (v)the reasons why such dollar amount of discretionary budget authority or item of direct spending or targeted tax benefit should be rescinded; (vi)the estimated fiscal and economic impacts, of the proposed rescission; (vii)to the maximum extent practicable, all facts, circumstances, and considerations relating to or bearing upon the proposed rescission and the decision to effect the proposed rescission, and the estimated effect of the proposed rescission upon the objects, purposes, and programs for which the budget authority or items of direct spending or targeted tax benefits are provided; and (viii)a draft bill that, if enacted, would rescind the budget authority, items of direct spending and targeted tax benefits proposed to be rescinded in that special message. (2)

Analysis by congressional budget office and joint committee on taxation

(A)

In general

Upon the receipt of a special message under this part proposing to rescind dollar amounts of discretionary budget authority, items of direct spending, and targeted tax benefits— (i)the Director of the Congressional Budget Office shall prepare an estimate of the savings in budget authority or outlays resulting from such proposed rescission and shall include in its estimate, an analysis prepared by the Joint Committee on Taxation related to targeted tax benefits; and (ii)the Director of the Joint Committee on Taxation shall prepare an estimate and forward such estimate to the Congressional Budget Office, of the savings from repeal of targeted tax benefits. (B)

Methodology

The estimates required by subparagraph (A) shall be made 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 Control Act of 1985 and included with a budget submission under section 1105(a) of title 31, United States Code, and transmitted to the chairmen of the Committees on the Budget of the House of Representatives and Senate. (3)

Enactment of rescission bill

(A)

Deficit reduction

Amounts of budget authority or items of direct spending or targeted tax benefit that are rescinded pursuant to enactment of a bill as provided under this part shall be dedicated only to deficit reduction and shall not be used as an offset for other spending increases or revenue reductions. (B)

Adjustment of budget targets

Not later than 5 days after the date of enactment of a rescission bill as provided under this part, the chairs of the Committees on the Budget of the Senate and the House of Representatives shall revise spending and revenue levels under section 311(a) of the Congressional Budget Act of 1974 and adjust the committee allocations under section 302(a) of the Congressional Budget Act of 1974 or any other adjustments as may be appropriate to reflect the rescission. The adjustments shall reflect the budgetary effects of such rescissions as estimated by the President pursuant to paragraph (1)(B)(iii). The appropriate committees shall report revised allocations pursuant to section 302(b) of the Congressional Budget Act of 1974. Notwithstanding any other provision of law, the revised allocations and aggregates shall be considered to have been made under a concurrent resolution on the budget agreed to under the Congressional Budget Act of 1974 and shall be enforced under the procedures of that Act. (C)

Adjustments to caps

After enactment of a rescission bill as provided under this part, the President shall revise applicable limits under the Second Look at Wasteful Spending Act of 2009, as appropriate. (c)

Procedures for Expedited Consideration

(1)

In general

(A)

Introduction

Before the close of the second day of session of the Senate and the House of Representatives, respectively, after the date of receipt of a special message transmitted to Congress under subsection (b), the majority leader of each House, for himself, or minority leader of each House, for himself, or a Member of that House designated by that majority leader or minority leader shall introduce (by request) the President’s draft bill to rescind the amounts of budget authority or items of direct spending or targeted tax benefits, as specified in the special message and the President’s draft bill. If the bill is not introduced as provided in the preceding sentence in either House, then, on the third day of session of that House after the date of receipt of that special message, any Member of that House may introduce the bill. (B)

Referral and reporting

(i)

One committee

The bill shall be referred by the presiding officer to the appropriate committee. The committee shall report the bill without any revision and with a favorable, an unfavorable, or without recommendation, not later than the fifth day of session of that House after the date of introduction of the bill in that House. If the committee fails to report the bill within that period, the committee shall be automatically discharged from consideration of the bill, and the bill shall be placed on the appropriate calendar. (ii)

Multiple committees

(I)

Referrals

If a bill contains provisions in the jurisdiction of more than 1 committee, the bill shall be jointly referred to the committees of jurisdiction and the Committee on the Budget. (II)

Views of committee

Any committee, other than the Committee on the Budget, to which a bill is referred under this clause may submit a favorable, an unfavorable recommendation, without recommendation with respect to the bill to the Committee on the Budget prior to the reporting or discharge of the bill. (III)

Reporting

The Committee on the Budget shall report the bill not later than the fifth day of session of that House after the date of introduction of the bill in that House, without any revision and with a favorable or unfavorable recommendation, or with no recommendation, together with the recommendations of any committee to which the bill has been referred. (IV)

Discharge

If the Committee on the Budget fails to report the bill within that period, the committee shall be automatically discharged from consideration of the bill, and the bill shall be placed on the appropriate calendar. (C)

Final passage

A vote on final passage of the bill shall be taken in the Senate and the House of Representatives on or before the close of the 10th day of session of that House after the date of the introduction of the bill in that House. If the bill is passed, the Clerk of the House of Representatives shall cause the bill to be transmitted to the Senate before the close of the next day of session of the House. (2)

Consideration in the house of representatives

(A)

Motion to proceed to consideration

A motion in the House of Representatives to proceed to the consideration of a bill under this subsection shall be highly privileged and not debatable. An amendment to the motion shall not be in order, nor shall it be in order to move to reconsider the vote by which the motion is agreed to or disagreed to. (B)

Limits on debate

Debate in the House of Representatives on a bill under this subsection shall not exceed 4 hours, which shall be divided equally between those favoring and those opposing the bill. A motion further to limit debate shall not be debatable. It shall not be in order to move to recommit a bill under this subsection or to move to reconsider the vote by which the bill is agreed to or disagreed to. (C)

Appeals

Appeals from decisions of the chair relating to the application of the Rules of the House of Representatives to the procedure relating to a bill under this part shall be decided without debate. (D)

Application of house rules

Except to the extent specifically provided in this part, consideration of a bill under this part shall be governed by the Rules of the House of Representatives. It shall not be in order in the House of Representatives to consider any bill introduced pursuant to the provisions of this part under a suspension of the rules or under a special rule. (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. A motion to proceed to consideration of the bill may be made even though a previous motion to the same effect has been disagreed to. 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 consideration

Consideration in the Senate of a bill under this subsection, and all debatable motions and appeals in connection therewith, shall not exceed a total of 10 hours, equally divided and controlled in the usual form. (C)

Debatable motions and 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 from the time allotted for debate, 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), and the House has not amended the bill, then the Senate shall consider the Senate bill, and if the Senate has not amended it's bill, the vote under paragraph (1)(C) shall 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 without amendment, the Senate bill shall be held pending receipt of the House message on the bill. Upon receipt of the House companion bill, if the House bill is not amended by the House, the House bill shall be deemed to be considered, read for 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. (4)

Conference

(A)

Proceeding to conference

If, after a bill is agreed to in the Senate and House of Representatives, the bill has been amended by either chamber, the bill shall be deemed to be at a stage of disagreement and motions to proceed to conference are deemed to be agreed to. There shall be no motions to instruct. The Senate and the House of Representatives shall appoint conferees not later than 1 day of session after the vote of the second House under paragraph (1)(C). (B)

Period of consideration

A conference report on a bill considered under this section shall be reported out not later than 3 days of session after the vote of the second House under paragraph (1)(C). If the 2 Houses are unable to agree in conference, the committee on conference shall report out the text of the President's original bill. (C)

Scope of conference

The matter committed to conference for purposes of scope of conference shall be limited to the matter stricken from the text of the bills passed by the Senate and the House of Representatives. The conferees shall only report recommendations to strike or retain any of the provisions stricken by either chamber. (D)

Procedure

Consideration on a conference report on any bill considered under this section shall be limited to 2 hours equally divided between the manager of the conference report and the minority leader, or his designee. (E)

Final passage

A vote on final passage of the conference report shall be taken in the House of Representatives on or before the close of the 2nd day of session after the date the conference report is submitted. If the conference report is passed, the Clerk of the House of Representatives shall cause the conference report to be transmitted to the Senate before the close of the next day of session. (F)

Action of the Senate

A vote on final passage of the conference report shall be taken in the Senate on or before the close of the 2nd day of session after the date the conference report is received from the House. (d)

Amendments and divisions prohibited

(1)

In general

Except as provided in paragraph (2), no amendment to a bill considered under this section shall be in order in either the Senate or the House of Representatives. (2)

Motion to strike

(A)

Senate

During consideration of a bill in the Senate, any Member of the Senate may move to strike any proposed rescission of a dollar amount of discretionary budget authority, an item of direct spending, or a targeted tax benefit if supported by 11 other Members. (B)

House

During consideration of a bill in the House of Representatives, any Member of the House of Representatives may move to strike any proposed rescission of a dollar amount of discretionary budget authority, an item of direct spending, or a targeted tax benefit if supported by 49 other Members. (3)

No division

It shall not be in order to demand a division of any motions to strike in the Senate, or the division of the question in the House of Representatives (or in a Committee of the Whole). (4)

No suspension

No motion to suspend the application of this subsection shall be in order in the Senate or in the House of Representatives, nor shall it be in order in the House of Representatives to suspend the application of this subsection by unanimous consent. (e)

Temporary Presidential Authority To Withhold

(1)

Availability

The President may not withhold any dollar amount of discretionary budget authority until the President transmits and Congress receives a special message pursuant to subsection (b). Upon receipt by Congress of a special message pursuant to subsection (b), the President may direct that any dollar amount of discretionary budget authority proposed to be rescinded in that special message shall be withheld from obligation for a period not to exceed 45 calendar days from the date of receipt by Congress. (2)

Early availability

The President may make any dollar amount of discretionary budget authority withheld from obligation pursuant to paragraph (1) available at an earlier time if the President determines that continued withholding would not further the purposes of this Act. (f)

Temporary Presidential Authority To Suspend

(1)

Suspend

(A)

In general

The President may not suspend the execution of any item of direct spending or targeted tax benefit until the President transmits and Congress receives a special message pursuant to subsection (b). Upon receipt by Congress of a special message, the President may suspend the execution of any item of direct spending or targeted tax benefit proposed to be rescinded in that message for a period not to exceed 45 calendar days from the date of receipt by Congress. (B)

Limitation on 45-day period

The 45-day period described in subparagraph (A) shall be reduced by the number of days contained in the period beginning on the effective date of the item of direct spending or targeted tax benefit; and ending on the date that is the later of— (i)the effective date of the item of direct spending or targeted benefit; or (ii)the date that Congress receives the special message. (C)

Clarification

Notwithstanding subparagraph (B), in the case of an item of direct spending or targeted tax benefit with an effective date within 45 days after the date of enactment, the beginning date of the period calculated under subparagraph (B) shall be the date that is 45 days after the date of enactment and the ending date shall be the date that is the later of— (i)the date that is 45 days after enactment; or (ii)the date that Congress receives the special message. (2)

Early availability

The President may terminate the suspension of any item of direct spending or targeted tax benefit suspended pursuant to paragraph (1) at an earlier time if the President determines that continuation of the suspension would not further the purposes of this Act. (g)

Definitions

In this part: (1)

Appropriation law

The term appropriation law means any general or special appropriation Act, and any Act or joint resolution making supplemental, deficiency, or continuing appropriations. (2)

Calendar day

The term calendar day means a standard 24-hour period beginning at midnight. (3)

Days of session

The term days of session means only those days on which both Houses of Congress are in session. (4)

Dollar amount of discretionary budget authority

The term dollar amount of discretionary budget authority means the dollar amount of budget authority and obligation limitations— (A)specified in an appropriation law, or the 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; (B)represented separately in any table, chart, or explanatory text included in the statement of managers or the governing committee report accompanying such law; (C)required to be allocated for a specific program, project, or activity in a law (other than an appropriation law) that mandates obligations from or within accounts, programs, projects, or activities for which budget authority or an obligation limitation is provided in an appropriation law; (D)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 (E)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 obligations from accounts, programs, projects, or activities for which dollar amount of discretionary budget authority or an obligation limitation is provided in an appropriation law. (5)

Rescind or rescission

The term rescind or rescission means— (A)in the case of a dollar amount of discretionary budget authority, to reduce or repeal a provision of law to prevent that budget authority or obligation limitation from having legal force or effect; and (B)in the case of direct spending or targeted tax benefit, to repeal a provision of law in order to prevent the specific legal obligation of the United States from having legal force or effect. (6)

Direct spending

The term direct spending means budget authority provided by law (other than an appropriation law), mandatory spending provided in appropriation Acts, and entitlement authority. (7)

Item of direct spending

The term item of direct spending means any specific provision of law enacted after the effective date of the Second Look at Wasteful Spending Act of 2009 that is estimated to result in an increase in budget authority or outlays for direct spending relative to the most recent levels calculated consistent with the methodology described in 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, with respect to estimates made after that budget submission that are not included with it, estimates consistent with the economic and technical assumptions underlying the most recently submitted President’s budget. (8)

Suspend the execution

The term suspend the execution means, with respect to an item of direct spending or a targeted tax benefit, to stop the carrying into effect of the specific provision of law that provides such benefit. (9)

Targeted tax benefit

The term targeted tax benefit means— (A)any revenue provision that has the practical effect of providing more favorable tax treatment to a particular taxpayer or limited group of taxpayers when compared with other similarly situated taxpayers; or (B)any Federal tax provision which provides one beneficiary temporary or permanent transition relief from a change to the Internal Revenue Code of 1986.

. (b)

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 and 1017 and inserting 1017, and 1021; and (2)in subsection (d), by striking section 1017 and inserting sections 1017 and 1021. (c)

Clerical Amendments

(1)

Short title

Section 1(a) of the Congressional Budget and Impoundment Control Act of 1974 is amended by— (A)striking Parts A and B before title X and inserting Parts A, B, and C; and (B)striking the last sentence and inserting at the end the following new sentence: Part C of title X also may be cited as the Second Look at Wasteful Spending Act of 2009.. (2)

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 part C of title X and inserting the following: Part C—Enhanced rescission authority Sec. 1021. Expedited consideration of certain proposed rescissions. . (d)

Severability

If any provision of this Act or the amendments made by it is held to be unconstitutional, the remainder of this Act and the amendments made by it shall not be affected by the holding. (e)

Effective Date and Expiration

(1)

Effective date

The amendments made by this Act shall— (A)take effect on the date of enactment of this Act; and (B)apply 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. (2)

Expiration

The amendments made by this Act shall expire on December 31, 2010.