[Congressional Record Volume 141, Number 20 (Wednesday, February 1, 1995)]
[House]
[Page H1073]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:'

                                 H.R. 2

                        Offered By: Mr. Clinger

       Amendment No. 10: In section 2(a), strike ``discretionary 
     budget authority'' and insert ``the dollar amount of any 
     discretionary budget authority specified in an appropriation 
     Act or an accompanying committee report or joint explanatory 
     statement accompanying a conference report on that Act''.
                                 H.R. 2

                    Offered By: Mr. Deal of Georgia

       Amendment No. 11: At the end, add the following new 
     section:

     SEC. 7. JUDICIAL REVIEW.

       (a) Expedited Review.--
       (1) Any Member of Congress 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 Act 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) Any action brought under paragraph (1) shall be heard 
     and determined by a three-judge court in accordance with 
     section 2284 of title 28, United States Code.

     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 days after such order is 
     entered; and the jurisdictional statement shall be filed 
     within 30 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).
                                 H.R. 2

                        Offered By: Mr. Edwards

       Amendment No. 12: At the end of section 2, insert the 
     following:
       (d) Exception.--The President may not include in a special 
     message a rescission of an amount of less than $50,000,000 
     that was appropriated for a program, project, or activity 
     within the national defense budget function (function 050).

                                 H.R. 2

                         Offered By: Mr. Kasich

       Amendment No. 13: In section 2(a), after ``discretionary 
     budget authority'' insert ``or veto all or part of any 
     provision of law increasing direct spending authority''.
       In section 2(a)(2), after ``such budget authority'' insert 
     ``or an Act providing such direct spending authority, or''.
       In section 2(c), strike ``and'' and insert ``, for each Act 
     making direct spending,''.
       In section 4(1), after ``targeted tax benefits'' insert 
     ``and vetoes of all or part of any provision of law 
     increasing direct spending authority''.
       In section 4(1)(B), strike ``and'' at the end of 
     subdivision (i) and at the end add the following:
       (iii) in the case of a special message regarding vetoes of 
     all or part of any provision of law increasing direct 
     spending authority, the matter after the enacting clause of 
     which is as follows: ``That Congress disapproves each veto of 
     direct spending authority of the President as submitted by 
     the President in a special message on     '', the blank space 
     being filled in with the appropriate date and the public law 
     to which the message relates; and
       At the end of section 4, add the following new paragraph:
       (5) The term ``direct spending authority'' has the meaning 
     given the term ``direct spending'' by section 205(c)(8) of 
     the Balanced Budget and Emergency Deficit Control Act of 1985 
     except that it does not include Social Security.
       In paragraph (1) of section 6, insert ``and veto of a 
     provision of law increasing direct spending'' after ``tax 
     benefit'' the first place it appears.
       In paragraph (1) of section 6, insert ``or veto of a 
     provision of law increasing direct spending'' after ``tax 
     benefit'' the second place it appears.
       In paragraph (2) of section 6, insert ``and vetoes of a 
     provision of law increasing direct spending'' after ``tax 
     benefit''.
       In paragraph (3) of section 6, insert ``or vetoes of a 
     provision of law increasing direct spending'' after ``tax 
     benefit''.
       Strike ``rescission/receipts'' each place it appears and 
     insert ``rescission/direct spending/receipts''.
                                 H.R. 2

                         Offered By: Mrs. Lowey

       Amendment No. 14: The first sentence of section 5(d)(1) is 
     amended by striking ``without amendment'' and inserting 
     ``without amendments except amendments to strike any 
     rescission or rescissions of budget authority''.
       Section 5(d)(2) is amended by striking the eighth and ninth 
     sentences and inserting the following:

     No amendment to the bill is in order except amendments to 
     strike any rescission or rescissions of budget authority. At 
     the conclusion of the consideration of the bill for 
     amendment, the Committee shall rise and report the bill to 
     the House. The previous question shall be considered as 
     ordered on the bill and amendments thereto to final passage 
     without intervening motion.
       In section 3(a)(1), strike ``all of''.

                                 H.R. 2

                          Offered By: Mr. Obey

       Amendment No. 15: At the end of section 2, add the 
     following new subsection:
       (d) Special Rule for FY 1995 Appropriation Measures.--
     Notwithstanding subsection (a)(2), in the case of any 
     unobligated discretionary budget authority provided by any 
     appropriation Act for fiscal year 1995, the President may 
     rescind all or part of that discretionary budget authority 
     under the terms of this Act if the President notifies the 
     Congress of such rescission by a special message not later 
     than ten calendar days (not including Sundays) after the date 
     of enactment of this Act.

                                 H.R. 2

                          Offered By: Mr. Obey

       Amendment No. 16: Section 2(a)(2) is amended by inserting 
     ``(or in the case of any appropriation Act for fiscal year 
     1995, 200 calendar days (not including Sundays))'' after 
     ``appropriation Act''.

                                 H.R. 2

                         Offered By: Mr. Orton

       Amendment No. 17: At the end of section 4, add the 
     following new paragraph:
       (5) The term ``discretionary budget authority'' includes 
     authority to enter into contracts under which the United 
     States is obligated to make outlays, the budget authority for 
     which is not provided in advance by appropriations Acts.
       [[Page H1053]] Paragraph (4) of section 4 is amended by 
     adding at the end the following new sentence: ``The term also 
     includes any Act that provides the authority described in 
     paragraph (5).''.

                                 H.R. 2

                         Offered By: Ms. Pelosi

       Amendment No. 18: Section 2 is amended by adding at the end 
     the following new subsection:
       (d) Limitation.--No special message submitted by the 
     President under this section may change any prohibition or 
     limitation of discretionary budget authority set forth in any 
     appropriation Act.
                                 H.R. 2

                       Offered By: Ms. Slaughter

       Amendment No. 19: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. LINE ITEM VETO AUTHORITY.

       (a) In General.--Notwithstanding the provisions of part B 
     of title X of The Congressional Budget and Impoundment 
     Control Act of 1974, and subject to the provisions of this 
     section, the President may rescind all or part of any 
     discretionary budget authority or veto any targeted tax 
     benefit within any revenue bill which is subject to the terms 
     of this Act if the President--
       (1) determines that--
       (A) such rescission or veto would help reduce the Federal 
     budget deficit;
       (B) such rescission or veto will not impair any essential 
     Government functions; and
       (C) such rescission or veto will not harm the national 
     interest; and
       (2) notifies the Congress of such rescission or veto by a 
     special message not later than twenty calendar days (not 
     including Saturdays, Sundays, or holidays) after the date of 
     enactment of a regular or supplemental appropriation act or a 
     joint resolution making continuing appropriations providing 
     such budget authority or a revenue bill containing a targeted 
     tax benefit.

     The President shall submit a separate rescission message for 
     each appropriation bill and for each revenue bill under this 
     paragraph.

     SEC. 3. LINE ITEM VETO EFFECTIVE UNLESS DISAPPROVED.

       (a)(1) Any amount of budget authority rescinded under this 
     Act as set forth in a special message by the President shall 
     be deemed canceled unless, during the period described in 
     subsection (b), a rescission/receipts disapproval bill making 
     available all of the amount rescinded is enacted into law.
       (2) Any provision of law vetoed under this Act as set forth 
     in a special message by the President shall be deemed 
     repealed unless, during the period described in subsection 
     (b), a rescission/receipts disapproval bill restoring that 
     provision is enacted into law.
       (b) The period referred to in subsection (a) is--
       (1) a congressional review period of twenty calendar days 
     of session during which Congress must complete action on the 
     rescission/receipts disapproval bill and present such bill to 
     the President for approval or disapproval;
       (2) after the period provided in paragraph (1), an 
     additional ten days (not including Sundays) during which the 
     President may exercise his authority to sign or veto the 
     rescission/receipts disapproval bill; and
       (3) if the President vetoes the rescission/receipts 
     disapproval bill during the period provided in paragraph (2), 
     an additional five calendar days of session after the date of 
     the veto.
       (c) If a special message is transmitted by the President 
     under this Act and the last session of the Congress adjourns 
     sine die before the expiration of the period described in 
     subsection (b), the rescission or veto, as the case may be, 
     shall not take effect. The message shall be deemed to have 
     been retransmitted on the first day of the succeeding 
     Congress and the review period referred to in subsection (b) 
     (with respect to such message) shall run beginning after such 
     first day.

     SEC. 4. DEFINITIONS.

       As used in this Act:
       (1) The term ``rescission/receipts disapproval bill'' means 
     a bill or joint resolution which--
       (A) only disapproves a rescission of budget authority, in 
     whole, rescinded, or
       (B) only disapproves a veto of any provision of law that 
     would decrease receipts,

     in a special message transmitted by the President under this 
     Act.
       (2) The term ``calendar days of session'' shall mean only 
     those days on which both Houses of Congress are in session.
       (3) The term ``targeted tax benefit'' means any provision 
     which has the practical effect of providing a benefit in the 
     form of a differential treatment to a particular taxpayer or 
     a limited class of taxpayers, whether or not such provision 
     is limited by its terms to a particular taxpayer or a class 
     of taxpayers. Such term does not include any benefit provided 
     to a class of taxpayers distinguished on the basis of general 
     demographic conditions such as income, number of dependents, 
     or marital status.

     SEC. 5. CONGRESSIONAL CONSIDERATION OF LINE ITEM VETOES.

       (a) Presidential Special Message.--Whenever the President 
     rescinds any budget authority as provided in this Act or 
     vetoes any provision of law as provided in this Act, the 
     President shall transmit to both Houses of Congress a special 
     message specifying--
       (1) the amount of budget authority rescinded or the 
     provision vetoed;
       (2) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       (3) the reasons and justifications for the determination to 
     rescind budget authority or veto any provision pursuant to 
     this Act;
       (4) to the maximum extent practicable, the estimated 
     fiscal, economic, and budgetary effect of the rescission or 
     veto; and
       (5) all factions, circumstances, and considerations 
     relating to or bearing upon the rescission or veto and the 
     decision to effect the rescission or veto, and to the maximum 
     extent practicable, the estimated effect of the rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.
       (b) Transmission of Messages to House and Senate.--
       (1) Each special message transmitted under this Act shall 
     be transmitted to the House of Representatives and the Senate 
     on the same day, and 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. Each special message so transmitted shall be 
     referred to the appropriate committees of the House of 
     Representatives and the Senate. Each such message shall be 
     printed as a document of each House.
       (2) Any special message transmitted under this Act shall be 
     printed in the first issue of the Federal Register published 
     after such transmittal.
       (c) Referral of Rescission/Receipts Disapproval Bills.--Any 
     rescission/receipts disapproval bill introduced with respect 
     to a special message shall be referred to the appropriate 
     committees of the House of Representatives or the Senate, as 
     the case may be.
       (d) Consideration in the Senate.--
       (1) Any rescission/receipts disapproval bill received in 
     the Senate from the House shall be considered in the Senate 
     pursuant to the provisions of this Act.
       (2) Debate in the Senate on any rescission/receipts 
     disapproval bill and debatable motions and appeals in 
     connection therewith, shall be limited to not
      more than ten hours. The time shall be equally divided 
     between, and controlled by, the majority leader and the 
     minority leader or their designees.
       (3) Debate in the Senate on any debatable motions or appeal 
     in connection with such bill shall be limited to one hour, to 
     be equally divided between, and controlled by the mover and 
     the manager of the bill, except that in the event the manager 
     of the bill is in favor of any such motion or appeal, the 
     time in opposition thereto shall be controlled by the 
     minority leader or his designee. Such leaders, or either of 
     them, may, from the time under their control on the passage 
     of the bill, allot additional time to any Senator during the 
     consideration of any debatable motion or appeal.
       (4) A motion to further limit debate is not debatable. A 
     motion to recommit (except a motion to recommit with 
     instructions to report back within a specified number of days 
     not to exceed one, not counting any day on which the Senate 
     is not in session) is not in order.
       (e) Points of Order.--
       (1) It shall not be in order in the Senate or the House of 
     Representatives to consider any rescission/receipts 
     disapproval bill that relates to any matter other than the 
     rescission of budget authority or veto of the provision of 
     law transmitted by the President under this Act.
       (2) It shall not be in order in the Senate or the House of 
     Representatives to consider any amendment to a rescission/
     receipts disapproval bill.
       (3) Paragraphs (1) and (2) may be waived or suspended in 
     the Senate only by a vote of three-fifths of the members duly 
     chosen and sworn.

                                 H.R. 2

                         Offered By: Mr. Spratt

       Amendment No. 20: In section 2(a), insert ``or tax 
     incentive'' after ``tax benefit'' the first place it appears.
       At the end of Section 4, insert the following new 
     paragraph:
       (5) The term ``tax incentive'' means any deduction, credit, 
     preference, or exemption from gross income, or any deferral 
     of tax liability, causing tax revenues to be forgone as 
     inducement for taxpayers to pursue or forbear from certain 
     actions or activities.
                                 H.R. 2

                        Offered By: Mr. Stenholm

       Amendment No. 21: Strike all after the enacting clause and 
     insert the following:
     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Line Item Veto Act''.
                        TITLE I--LINE ITEM VETO

     SEC. 101. LINE ITEM VETO AUTHORITY.

       (a) In General.--Notwithstanding the provisions of part B 
     of title X of The Congressional Budget and Impoundment 
     Control Act of 1974, and subject to the provisions of this 
     section, the President may rescind all or part of any 
     discretionary budget authority or veto any targeted tax 
     benefit which is subject to the terms of this Act if the 
     President--
       (1) determines that--
       (A) such rescission or veto would help reduce the Federal 
     budget deficit;
     [[Page H1054]]   (B) such rescission or veto will not impair 
     any essential Government functions; and
       (C) such rescission or veto will not harm the national 
     interest; and
       (2) notifies the Congress of such rescission or veto by a 
     special message not later than ten calendar days (not 
     including Sundays) after the date of enactment of an 
     appropriation Act providing such budget authority or a 
     revenue or reconciliation Act containing a targeted tax 
     benefit.
       (b) Deficit Reduction.--In each special message, the 
     President may also propose to reduce the appropriate 
     discretionary spending limit set forth in section 601(a)(2) 
     of the Congressional Budget Act of 1974 by an amount that 
     does not exceed the total amount of discretionary budget 
     authority rescinded by that message.
       (c) Separate Messages.--The President shall submit a 
     separate special message for each appropriation Act and for 
     each revenue or reconciliation Act under this paragraph.
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.

     SEC. 102. LINE ITEM VETO EFFECTIVE UNLESS DISAPPROVED.

       (a)(1) Any amount of budget authority rescinded under 
     section 101 as set forth in a special message by the 
     President shall be deemed canceled unless, during the period 
     described in subsection (b), a rescission/receipts 
     disapproval bill making available all of the amount rescinded 
     is enacted into law.
       (2) Any provision of law vetoed under section 101 as set 
     forth in a special message by the President shall be deemed 
     repealed unless, during the period described in subsection 
     (b), a rescission/receipts disapproval bill restoring that 
     provision is enacted into law.
       (b) The period referred to in subsection (a) is--
       (1) a congressional review period of twenty calendar days 
     of session, beginning on the first calendar day of session 
     after the date of submission of the special message, during 
     which Congress must complete action on the rescission/
     receipts disapproval bill and present such bill to the 
     President for approval or disapproval;
       (2) after the period provided in paragraph (1), an 
     additional ten days (not including Sundays) during which the 
     President may exercise his authority to sign or veto the 
     rescission/receipts disapproval bill; and
       (3) if the President vetoes the rescission/receipts 
     disapproval bill during the period provided in paragraph (2), 
     an additional five calendar days of session after the date of 
     the veto.
       (c) If a special message is transmitted by the President 
     under section 101 and the last session of the Congress 
     adjourns sine die before the expiration of the period 
     described in subsection (b), the rescission or veto, as the 
     case may be, shall not take effect. The message shall be 
     deemed to have been retransmitted on the first Monday in 
     February of the succeeding Congress and the review period 
     referred to in subsection (b) (with respect to such message) 
     shall run beginning after such first day.

     SEC. 103. DEFINITIONS.

       As used in this title:
       (1) The term ``rescission/receipts disapproval bill'' means 
     a bill or joint resolution which only disapproves, in whole, 
     rescissions of discretionary budget authority or only 
     disapproves vetoes of targeted tax benefits in a special 
     message transmitted by the President under this Act and--
       (A) which does not have a preamble;
       (B)(i) in the case of a special message regarding 
     rescissions, the matter after the enacting clause of which is 
     as follows: ``That Congress disapproves each rescission of 
     discretionary budget authority of the President as submitted 
     by the President in a special message on ________'', the 
     blank space being filled in with the appropriate date and the 
     public law to which the message relates; and
       (ii) in the case of a special message regarding vetoes of 
     targeted tax benefits, the matter after the enacting clause 
     of which is as follows: ``That Congress disapproves each veto 
     of targeted tax benefits of the President as submitted by the 
     President in a special message on ________'', the blank space 
     being filled in with the appropriate date and the public law 
     to which the message relates; and
       (C) the title of which is as follows: ``A bill disapproving 
     the recommendations submitted by the President on ________'', 
     the blank space being filled in with the date of submission 
     of the relevant special message and the public law to which 
     the message relates.
       (2) The term ``calendar days of session'' shall mean only 
     those days on which both Houses of Congress are in session.
       (3) The term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       (4) The term ``appropriation Act'' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations.
     SEC. 104. CONGRESSIONAL CONSIDERATION OF LINE ITEM VETOES.

       (a) Presidential Special Message.--Whenever the President 
     rescinds any budget authority as provided in section 101 or 
     vetoes any provision of law as provided in 101, the President 
     shall transmit to both Houses of Congress a special message 
     specifying--
       (1) the amount of budget authority rescinded or the 
     provision vetoed;
       (2) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       (3) the reasons and justifications for the determination to 
     rescind budget authority or veto any provision pursuant to 
     section 101;
       (4) to the maximum extent practicable, the estimated 
     fiscal, economic, and budgetary effect of the rescission or 
     veto; and
       (5) all actions, circumstances, and considerations relating 
     to or bearing upon the rescission or veto and the decision to 
     effect the rescission or veto, and to the maximum extent 
     practicable, the estimated effect of the rescission upon the 
     objects, purposes, and programs for which the budget 
     authority is provided.
       (b) Transmission of Messages to House and Senate.--
       (1) Each special message transmitted under section 101 
     shall be transmitted to the House of Representatives and the 
     Senate on the same day, and 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. Each special message so transmitted shall be 
     referred to the appropriate committees of the House of 
     Representatives and the Senate. Each such message shall be 
     printed as a document of each House.
       (2) Any special message transmitted under section 101 shall 
     be printed in the first issue of the Federal Register 
     published after such transmittal.
       (c) Introduction of Rescission/Receipts Disapproval 
     Bills.--The procedures set forth in subsection (d) shall 
     apply to any rescission/receipts disapproval bill introduced 
     in the House of Representatives not later than the third 
     calendar day of session beginning on the day after the date 
     of submission of a special message by the President under 
     section 101.
       (d) Consideration in the House of Representatives.--(1) The 
     committee of the House of Representatives to which a 
     rescission/receipts disapproval bill is referred shall report 
     it without amendment, and with or without recommendation, not 
     later than the eighth calendar day of session after the date 
     of its introduction. If the 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. A motion to discharge may be made only by an 
     individual favoring the bill (but only after the legislative 
     day on which a Member announces to the House the Member's 
     intention to do so). 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 rescission/receipts disapproval bill is 
     reported or the 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. All points of order 
     against the bill and against consideration of the bill are 
     waived. The motion is highly privileged. The previous 
     question shall be considered as ordered on that 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. 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 without 
     intervening motion, shall be confined to the bill, and shall 
     not exceed two hours equally divided and controlled by a 
     proponent and an opponent of the bill. After general debate 
     the Committee shall rise and report the bill to the House. 
     The previous question shall be considered as ordered on the 
     bill 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 the decisions of the Chair relating to the 
     application of the rules of the House of Representatives to 
     the procedure relating to a bill described in subsection (a) 
     shall be decided without debate.
       (4) It shall not be in order to consider more than one bill 
     described in subsection (c) or more than one motion to 
     discharge described in paragraph (1) with respect to a 
     particular special message.
       (5) Consideration of any rescission/receipts disapproval 
     bill under this subsection is governed by the rules of the 
     House of Representatives except to the extent specifically 
     provided by the provisions of this title.
       (e) Consideration in the Senate.--
       (1) Any rescission/receipts disapproval bill received in 
     the Senate from the House shall be considered in the Senate 
     pursuant to the provisions of this title.
       (2) Debate in the Senate on any rescission/receipts 
     disapproval bill and debatable motions and appeals in 
     connection therewith, 
     [[Page H1055]] shall be limited to not more than ten hours. 
     The time shall be equally divided between, and controlled by, 
     the majority leader and the minority leader or their 
     designees.
       (3) Debate in the Senate on any debatable motions or appeal 
     in connection with such bill shall be limited to one hour, to 
     be equally divided between, and controlled by the mover and 
     the manager of the bill, except that in the event the manager 
     of the bill is in favor of any such motion or appeal, the 
     time in opposition thereto shall be controlled by the 
     minority leader or his designee. Such leaders, or either of 
     them, may, from the time under their control on the passage 
     of the bill, allot additional time to any Senator during the 
     consideration of any debatable motion or appeal.
       (4) A motion to further limit debate is not debatable. A 
     motion to recommit (except a motion to recommit with 
     instructions to report back within a specified number of days 
     not to exceed one, not counting any day on which the Senate 
     is not in session) is not in order.
       (f) Points of Order.--
       (1) It shall not be in order in the Senate to consider any 
     rescission/receipts disapproval bill that relates to any 
     matter other than the rescission of budget authority or veto 
     of the provision of law transmitted by the President under 
     section 101.
       (2) It shall not be in order in the Senate to consider any 
     amendment to a rescission/receipts disapproval bill.
       (3) Paragraphs (1) and (2) may be waived or suspended in 
     the Senate only by a vote of three-fifths of the members duly 
     chosen and sworn.

     SEC. 105. REPORTS OF THE GENERAL ACCOUNTING OFFICE.

       Beginning on January 6, 1996, and at one-year intervals 
     thereafter, the Comptroller General shall submit a report to 
     each House of Congress which provides the following 
     information:
       (1) A list of each proposed Presidential rescission of 
     discretionary budget authority and veto of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their dollar value, and an indication of whether each 
     rescission of discretionary budget authority or veto of a 
     targeted tax benefit was accepted or rejected by Congress.
       (2) The total number of proposed Presidential rescissions 
     of discretionary budget authority and vetoes of a targeted 
     tax benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (3) The total number of Presidential rescissions of 
     discretionary budget authority or vetoes of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year and approved 
     by Congress, together with their total dollar value.
       (4) A list of rescissions of discretionary budget authority 
     initiated by Congress for the fiscal year ending during the 
     preceding calendar year, together with their dollar value, 
     and an indication of whether each such rescission was 
     accepted or rejected by Congress.
       (5) The total number of rescissions of discretionary budget 
     authority initiated and accepted by Congress for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (6) A summary of the information provided by paragraphs 
     (2), (3) and (5) for each of the ten fiscal years ending 
     before the fiscal year during this calendar year.
     SEC. 106. JUDICIAL REVIEW.

       (a) Expedited Review.--
       (1) Any Member of Congress 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 title 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) Any action brought under paragraph (1) shall be heard 
     and determined by a three-judge court in accordance with 
     section 2284 of title 28, United States Code.

     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 days after such order is 
     entered; and the jurisdictional statement shall be filed 
     within 30 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).
TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:
       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit unless the President also proposes a reduction in the 
     appropriate discretionary spending limit set forth in section 
     601(a)(2) of the Congressional Budget Act of 1974. That bill 
     shall clearly identify the amount of budget authority that is 
     proposed to be rescinded for each program, project, or 
     activity to which that budget authority relates or the 
     targeted tax benefit proposed to be repealed, as the case may 
     be. A targeted tax benefit may only be proposed to be 
     repealed under this section during the 10-legislative-day 
     period commencing on the day after the date of enactment of 
     the provision proposed to be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill for accounts within the jurisdiction 
     of each such subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.

     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal; and
       ``(F) a reduction in the appropriate discretionary spending 
     limit set forth in section 601(a)(2) of the Congressional 
     Budget Act of 1974, if proposed by the President.
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of 
     [[Page H1056]] the bill, and the bill shall be placed on the 
     appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before the close of the 
     10th legislative day 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 engrossed, certified, and transmitted to the 
     Senate within one calendar day of the day on which the bill 
     is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be 
     decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from time 
     under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement to Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session;
       ``(3) the term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities; and
       ``(4) the term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     States. Any partnership, limited partnership, trust, or S 
     corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

       ``Sec. 1012. Expedited consideration of certain proposed 
           rescissions and targeted tax benefits.''.
                                 H.R. 2

                        Offered By: Mr. Stenholm

       Amendment No. 22: After section 1, add the following new 
     center heading:

                        TITLE I--LINE ITEM VETO
       Redesignate sections 2 through 6 as sections 101 through 
     105, respectively, and redesignate all cross-references 
     accordingly.
       At the end of section 101 (as redesignated), add the 
     following new subsection:
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.

       In sections 101 through 104, strike ``this Act'' each place 
     it appears and insert ``this title''.
       At the end, add the following:
     [[Page H1057]] SEC. 106. JUDICIAL REVIEW.

       (a) Expedited Review.--
       (1) Any Member of Congress 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 title 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) Any action brought under paragraph (1) shall be heard 
     and determined by a three-judge court in accordance with 
     section 2284 of title 28, United States Code.

     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 days after such order is 
     entered; and the jurisdictional statement shall be filed 
     within 30 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).
TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:
       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit unless the President also proposes a reduction in the 
     appropriate discretionary spending limit set forth in section 
     601(a)(2) of the Congressional Budget Act of 1974. That bill 
     shall clearly identify the amount of budget authority that is 
     proposed to be rescinded for each program, project, or 
     activity to which that budget authority relates or the 
     targeted tax benefit proposed to be repealed, as the case may 
     be. A targeted tax benefit may only be proposed to be 
     repealed under this section during the 10-legislative-day 
     period commencing on the day after the date of enactment of 
     the provision proposed to be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill for accounts within the jurisdiction 
     of each such subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.

     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal; and
       ``(F) a reduction in the appropriate discretionary spending 
     limit set forth in section 601(a)(2) of the Congressional 
     Budget Act of 1974, if proposed by the President.
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of the bill, 
     and the bill shall be placed on the appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before the close of the 
     10th legislative day 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 engrossed, certified, and transmitted to the 
     Senate within one calendar day of the day on which the bill 
     is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be 
     decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill 
     [[Page H1058]] under this section shall be limited to not 
     more than 1 hour, to be equally divided between, and 
     controlled by, the mover and the manager of the bill, except 
     that in the event the manager of the bill is in favor of any 
     such motion or appeal, the time in opposition thereto, shall 
     be controlled by the minority leader or his designee. Such 
     leaders, or either of them, may, from time under their 
     control on the passage of a bill, allot additional time to 
     any Senator during the consideration of any debatable motion 
     or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement To Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session; and
       ``(3) The term `targeted tax benefit' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       ``(4) The term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     States. Any partnership, limited partnership, trust, or S 
     corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                        Offered By: Mr. Stenholm

       Amendment No. 23: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

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

                        TITLE I--LINE ITEM VETO

     SEC. 101. LINE ITEM VETO AUTHORITY.

       (a) In General.--Notwithstanding the provisions of part B 
     of title X of The Congressional Budget and Impoundment 
     Control Act of 1974, and subject to the provisions of this 
     section, the President may rescind all or part of any 
     discretionary budget authority or veto any targeted tax 
     benefit which is subject to the terms of this Act if the 
     President--
       (1) determines that--
       (A) such rescission or veto would help reduce the Federal 
     budget deficit;
       (B) such rescission or veto will not impair any essential 
     Government functions; and
       (C) such rescission or veto will not harm the national 
     interest; and
       (2) notifies the Congress of such rescission or veto by a 
     special message not later than ten calendar days (not 
     including Sundays) after the date of enactment of an 
     appropriation Act providing such budget authority or a 
     revenue or reconciliation Act containing a targeted tax 
     benefit.
       (b) Deficit Reduction.--In each special message, the 
     President may also propose to reduce the appropriate 
     discretionary spending limit set forth in section 601(a)(2) 
     of the Congressional Budget Act of 1974 by an amount that 
     does not exceed the total amount of discretionary budget 
     authority rescinded by that message.
       (c) Separate Messages.--The President shall submit a 
     separate special message for each appropriation Act and for 
     each revenue or reconciliation Act under this paragraph.
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.

     SEC. 102. LINE ITEM VETO EFFECTIVE UNLESS DISAPPROVED.

       (a)(1) Any amount of budget authority rescinded under 
     section 101 as set forth in a special message by the 
     President shall be deemed canceled unless, during the period 
     described in subsection (b), a rescission/receipts 
     disapproval bill making available all of the amount rescinded 
     is enacted into law.
       (2) Any provision of law vetoed under section 101 as set 
     forth in a special message by the President shall be deemed 
     repealed unless, during the period described in subsection 
     (b), a rescission/receipts disapproval bill restoring that 
     provision is enacted into law.
       (b) The period referred to in subsection (a) is--
       (1) a congressional review period of twenty calendar days 
     of session, beginning on the first calendar day of session 
     after the date of submission of the special message, during 
     which Congress must complete action on the rescission/
     receipts disapproval bill and present such bill to the 
     President for approval or disapproval;
       (2) after the period provided in paragraph (1), an 
     additional ten days (not including Sundays) during which the 
     President may exercise his authority to sign or veto the 
     rescission/receipts disapproval bill; and
       (3) if the President vetoes the rescission/receipts 
     disapproval bill during the period provided in paragraph (2), 
     an additional five calendar days of session after the date of 
     the veto.
       (c) If a special message is transmitted by the President 
     under section 101 and the last session of the Congress 
     adjourns sine die before the expiration of the period 
     described in subsection (b), the rescission or veto, as the 
     case may be, shall not take effect. The message shall be 
     deemed to have been retransmitted on the first Monday in 
     February of the succeeding Congress and the review period 
     referred to in subsection (b) (with respect to such message) 
     shall run beginning after such first day.

     SEC. 103. DEFINITIONS.

       As used in this title:
       (1) The term ``rescission/receipts disapproval bill'' means 
     a bill or joint resolution which only disapproves, in whole, 
     rescissions of discretionary budget authority or 
     [[Page H1059]] only disapproves vetoes of targeted tax 
     benefits in a special message transmitted by the President 
     under this Act and--
       (A) which does not have a preamble;
       (B)(i) in the case of a special message regarding 
     rescissions, the matter after the enacting clause of which is 
     as follows: ``That Congress disapproves each rescission of 
     discretionary budget authority of the President as submitted 
     by the President in a special message on ________'', the 
     blank space being filled in with the appropriate date and the 
     public law to which the message relates; and
       (ii) in the case of a special message regarding vetoes of 
     targeted tax benefits, the matter after the enacting clause 
     of which is as follows: ``That Congress disapproves each veto 
     of targeted tax benefits of the President as submitted by the 
     President in a special message on ________'', the blank space 
     being filled in with the appropriate date and the public law 
     to which the message relates; and
       (C) the title of which is as follows: ``A bill disapproving 
     the recommendations submitted by the President on ________'', 
     the blank space being filled in with the date of submission 
     of the relevant special message and the public law to which 
     the message relates.
       (2) The term ``calendar days of session'' shall mean only 
     those days on which both Houses of Congress are in session.
       (3) The term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       (4) The term ``appropriation Act'' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations.

     SEC. 104. CONGRESSIONAL CONSIDERATION OF LINE ITEM VETOES.

       (a) Presidential Special Message.--Whenever the President 
     rescinds any budget authority as provided in section 101 or 
     vetoes any provision of law as provided in 101, the President 
     shall transmit to both Houses of Congress a special message 
     specifying--
       (1) the amount of budget authority rescinded or the 
     provision vetoed;
       (2) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       (3) the reasons and justifications for the determination to 
     rescind budget authority or veto any provision pursuant to 
     section 101;
       (4) to the maximum extent practicable, the estimated 
     fiscal, economic, and budgetary effect of the rescission or 
     veto; and
       (5) all actions, circumstances, and considerations relating 
     to or bearing upon the rescission or veto and the decision to 
     effect the rescission or veto, and to the maximum extent 
     practicable, the estimated effect of the rescission upon the 
     objects, purposes, and programs for which the budget 
     authority is provided.
       (b) Transmission of Messages to House and Senate.--
       (1) Each special message transmitted under section 101 
     shall be transmitted to the House of Representatives and the 
     Senate on the same day, and 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. Each special message so transmitted shall be 
     referred to the appropriate committees of the House of 
     Representatives and the Senate. Each such message shall be 
     printed as a document of each House.
       (2) Any special message transmitted under section 101 shall 
     be printed in the first issue of the Federal Register 
     published after such transmittal.
       (c) Introduction of Rescission/Receipts Disapproval 
     Bills.--The procedures set forth in subsection (d) shall 
     apply to any rescission/receipts disapproval bill introduced 
     in the House of Representatives not later than the third 
     calendar day of session beginning on the day after the date 
     of submission of a special message by the President under 
     section 101.
       (d) Consideration in the House of Representatives.--(1) The 
     committee of the House of Representatives to which a 
     rescission/receipts disapproval bill is referred shall report 
     it without amendment, and with or without recommendation, not 
     later than the eighth calendar day of session after the date 
     of its introduction. If the 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. A motion to discharge may be made only by an 
     individual favoring the bill (but only after the legislative 
     day on which a Member announces to the House the Member's 
     intention to do so). 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 rescission/receipts disapproval bill is 
     reported or the 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. All points of order 
     against the bill and against consideration of the bill are 
     waived. The motion is highly privileged. The previous 
     question shall be considered as ordered on that 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. 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 without 
     intervening motion, shall be confined to the bill, and shall 
     not exceed two hours equally divided and controlled by a 
     proponent and an opponent of the bill. After general debate 
     the Committee shall rise and report the bill to the House. 
     The previous question shall be considered as ordered on the 
     bill 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 the decisions of the Chair relating to the 
     application of the rules of the House of Representatives to 
     the procedure relating to a bill described in subsection (a) 
     shall be decided without debate.
       (4) It shall not be in order to consider more than one bill 
     described in subsection (c) or more than one motion to 
     discharge described in paragraph (1) with respect to a 
     particular special message.
       (5) Consideration of any rescission/receipts disapproval 
     bill under this subsection is governed by the rules of the 
     House of Representatives except to the extent specifically 
     provided by the provisions of this title.
       (e) Consideration in the Senate.--
       (1) Any rescission/receipts disapproval bill received in 
     the Senate from the House shall be considered in the Senate 
     pursuant to the provisions of this title.
       (2) Debate in the Senate on any rescission/receipts 
     disapproval bill and debatable motions and appeals in 
     connection therewith, shall be limited to not more than ten 
     hours. The time shall be equally divided between, and 
     controlled by, the majority leader and the minority leader or 
     their designees.
       (3) Debate in the Senate on any debatable motions or appeal 
     in connection with such bill shall be limited to one hour, to 
     be equally divided between, and controlled by the mover and 
     the manager of the bill, except that in the event the manager 
     of the bill is in favor of any such motion or appeal, the 
     time in opposition thereto shall be controlled by the 
     minority leader or his designee. Such leaders, or either of 
     them, may, from the time under their control on the passage 
     of the bill, allot additional time to any Senator during the 
     consideration of any debatable motion or appeal.
       (4) A motion to further limit debate is not debatable. A 
     motion to recommit (except a motion to recommit with 
     instructions to report back within a specified number of days 
     not to exceed one, not counting any day on which the Senate 
     is not in session) is not in order.
       (f) Points of Order.--
       (1) It shall not be in order in the Senate to consider any 
     rescission/receipts disapproval bill that relates to any 
     matter other than the rescission of budget authority or veto 
     of the provision of law transmitted by the President under 
     section 101.
       (2) It shall not be in order in the Senate to consider any 
     amendment to a rescission/receipts disapproval bill.
       (3) Paragraphs (1) and (2) may be waived or suspended in 
     the Senate only by a vote of three-fifths of the members duly 
     chosen and sworn.

     SEC. 105. REPORTS OF THE GENERAL ACCOUNTING OFFICE.

       Beginning on January 6, 1996, and at one-year intervals 
     thereafter, the Comptroller General shall submit a report to 
     each House of Congress which provides the following 
     information:
       (1) A list of each proposed Presidential rescission of 
     discretionary budget authority and veto of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their dollar value, and an indication of whether each 
     rescission of discretionary budget authority or veto of a 
     targeted tax benefit was accepted or rejected by Congress.
       (2) The total number of proposed Presidential rescissions 
     of discretionary budget authority and vetoes of a targeted 
     tax benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (3) The total number of Presidential rescissions of 
     discretionary budget authority or vetoes of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year and approved 
     by Congress, together with their total dollar value.
       (4) A list of rescissions of discretionary budget authority 
     initiated by Congress for the fiscal year ending during the 
     preceding calendar year, together with their dollar value, 
     and an indication of whether each such rescission was 
     accepted or rejected by Congress.
       (5) The total number of rescissions of discretionary budget 
     authority initiated and accepted by Congress for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (6) A summary of the information provided by paragraphs 
     (2), (3) and (5) for each of the 
     [[Page H1060]] ten fiscal years ending before the fiscal year 
     during this calendar year.
TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:


       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit unless the President also proposes a reduction in the 
     appropriate discretionary spending limit set forth in section 
     601(a)(2) of the Congressional Budget Act of 1974. That bill 
     shall clearly identify the amount of budget authority that is 
     proposed to be rescinded for each program, project, or 
     activity to which that budget authority relates or the 
     targeted tax benefit proposed to be repealed, as the case may 
     be. A targeted tax benefit may only be proposed to be 
     repealed under this section during the 10-legislative-day 
     period commencing on the day after the date of enactment of 
     the provision proposed to be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill for accounts within the jurisdiction 
     of each such subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and
      programs for which the budget authority is provided.

     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal; and
       ``(F) a reduction in the appropriate discretionary spending 
     limit set forth in section 601(a)(2) of the Congressional 
     Budget Act of 1974, if proposed by the President.
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of the bill, 
     and the bill shall be placed on the appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before the close of the 
     10th legislative day 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 engrossed, certified, and transmitted to the 
     Senate within one calendar day of the day on which the bill 
     is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from
      time under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement To Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
     [[Page H1061]]   ``(f) Definitions.--For purposes of this 
     section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session;
       ``(3) the term `targeted tax benefit' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities; and
       ``(4) the term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     States. Any partnership, limited partnership, trust, or S 
     corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                        Offered By: Mr. Stenholm

       Amendment No. 24: After section 1, add the following new 
     center heading:

                        TITLE I--LINE ITEM VETO

       Redesignate sections 2 through 6 as sections 101 through 
     105, respectively, and redesignate all cross-references 
     accordingly.
       At the end of section 101 (as redesignated), add the 
     following new subsection:
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.
       In sections 101 through 104, strike ``this Act'' each place 
     it appears and insert ``this title''.
       At the end, add the following:

TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:


       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit unless the President also proposes a reduction in the 
     appropriate discretionary spending limit set forth in section 
     601(a)(2) of the Congressional Budget Act of 1974. That bill 
     shall clearly identify the amount of budget authority that is 
     proposed to be rescinded for each program, project, or 
     activity to which that budget authority relates or the 
     targeted tax benefit proposed to be repealed, as the case may 
     be. A targeted tax benefit may only be proposed to be 
     repealed under this section during the 10-legislative-day 
     period commencing on the day after the date of enactment of 
     the provision proposed to be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill for accounts within the jurisdiction 
     of each such subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.

     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal; and
       ``(F) a reduction in the appropriate discretionary spending 
     limit set forth in section 601(a)(2) of the Congressional 
     Budget Act of 1974, if proposed by the President.
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of 
     [[Page H1062]] the bill, and the bill shall be placed on the 
     appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before
      the close of the 10th legislative day 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 engrossed, 
     certified, and transmitted to the Senate within one 
     calendar day of the day on which the bill is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be 
     decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from
      time under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement To Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session; and
       ``(3) The term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       ``(4) The term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     States. Any partnership, limited partnership, trust, or S 
     corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                        Offered By Mr. Stenholm

       Amendment No. 25: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Line Item Veto Act''.
                        TITLE I--LINE ITEM VETO

     SEC. 101. LINE ITEM VETO AUTHORITY.

       (a) In General.--Notwithstanding the provisions of part B 
     of title X of The Congressional Budget and Impoundment 
     Control Act of 1974, and subject to the provisions of this 
     section, the President may rescind all or part of any 
     discretionary budget authority or veto any targeted tax 
     benefit which is subject to the terms of this Act if the 
     President--
       (1) determines that--
       (A) such rescission or veto would help reduce the Federal 
     budget deficit;
     [[Page H1063]]   (B) such rescission or veto will not impair 
     any essential Government functions; and
       (C) such rescission or veto will not harm the national 
     interest; and
       (2) notifies the Congress of such rescission or veto by a 
     special message not later than ten calendar days (not 
     including Sundays) after the date of enactment of an 
     appropriation Act providing such budget authority or a 
     revenue or reconciliation Act containing a targeted tax 
     benefit.
       (b) Deficit Reduction.--In each special message, the 
     President may also propose to reduce the appropriate 
     discretionary spending limit set forth in section 601(a)(2) 
     of the Congressional Budget Act of 1974 by an amount that 
     does not exceed the total amount of discretionary budget 
     authority rescinded by that message.
       (c) Separate Messages.--The President shall submit a 
     separate special message for each appropriation Act and for 
     each revenue or reconciliation Act under this paragraph.
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.

     SEC. 102. LINE ITEM VETO EFFECTIVE UNLESS DISAPPROVED.

       (a)(1) Any amount of budget authority rescinded under 
     section 101 as set forth in a special message by the 
     President shall be deemed canceled unless, during the period 
     described in subsection (b), a rescission/receipts 
     disapproval bill making available all of the amount rescinded 
     is enacted into law.
       (2) Any provision of law vetoed under section 101 as set 
     forth in a special message by the President shall be deemed 
     repealed unless, during the period described in subsection 
     (b), a rescission/receipts disapproval bill restoring that 
     provision is enacted into law.
       (b) The period referred to in subsection (a) is--
       (1) a congressional review period of twenty calendar days 
     of session, beginning on the first calendar day of session 
     after the date of submission of the special message, during 
     which Congress must complete action on the rescission/
     receipts disapproval bill and present such bill to the 
     President for approval or disapproval;
       (2) after the period provided in paragraph (1), an 
     additional ten days (not including Sundays) during which the 
     President may exercise his authority to sign or veto the 
     rescission/receipts disapproval bill; and
       (3) if the President vetoes the rescission/receipts 
     disapproval bill during the period provided in paragraph (2), 
     an additional five calendar days of session after the date of 
     the veto.
       (c) If a special message is transmitted by the President 
     under section 101 and the last session of the Congress 
     adjourns sine die before the expiration of the period 
     described in subsection (b), the rescission or veto, as the 
     case may be, shall not take effect. The message shall be 
     deemed to have been retransmitted on the first Monday in 
     February of the succeeding Congress and the review period 
     referred to in subsection (b) (with respect to such message) 
     shall run beginning after such first day.

     SEC. 103. DEFINITIONS.

       As used in this title:
       (1) The term ``rescission/receipts disapproval bill'' means 
     a bill or joint resolution which only disapproves, in whole, 
     rescissions of discretionary budget authority or only 
     disapproves vetoes of targeted tax benefits in a special 
     message transmitted by the President under this Act and--
       (A) which does not have a preamble;
       (B)(i) in the case of a special message regarding 
     rescissions, the matter after the enacting clause of which is 
     as follows: ``That Congress disapproves each rescission of 
     discretionary budget authority of the President as submitted 
     by the President in a special message on ________'', the 
     blank space being filled in with the appropriate date and the 
     public law to which the message relates; and
       (ii) in the case of a special message regarding vetoes of 
     targeted tax benefits, the matter after the enacting clause 
     of which is as follows: ``That Congress disapproves each veto 
     of targeted tax benefits of the President as submitted by the 
     President in a special message on ________'', the blank space 
     being filled in with the appropriate date and the public law 
     to which the message relates; and
       (C) the title of which is as follows: ``A bill disapproving 
     the recommendations submitted by the President on ________'', 
     the blank space being filled in with the date of submission 
     of the relevant special message and the public law to which 
     the message relates.
       (2) The term ``calendar days of session'' shall mean only 
     those days on which both Houses of Congress are in session.
       (3) The term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       (4) The term ``appropriation Act'' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations.
     SEC. 104. CONGRESSIONAL CONSIDERATION OF LINE ITEM VETOES.

       (a) Presidential Special Message.--Whenever the President 
     rescinds any budget authority as provided in section 101 or 
     vetoes any provision of law as provided in 101, the President 
     shall transmit to both Houses of Congress a special message 
     specifying--
       (1) the amount of budget authority rescinded or the 
     provision vetoed;
       (2) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       (3) the reasons and justifications for the determination to 
     rescind budget authority or veto any provision pursuant to 
     section 101;
       (4) to the maximum extent practicable, the estimated 
     fiscal, economic, and budgetary effect of the rescission or 
     veto; and
       (5) all actions, circumstances, and considerations relating 
     to or bearing upon the rescission or veto and the decision to 
     effect the rescission or veto, and to the maximum extent 
     practicable, the estimated effect of the rescission upon the 
     objects, purposes, and programs for which the budget 
     authority is provided.
       (b) Transmission of Messages to House and Senate.--
       (1) Each special message transmitted under section 101 
     shall be transmitted to the House of Representatives and the 
     Senate on the same day, and 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. Each special message so transmitted shall be 
     referred to the appropriate committees of the House of 
     Representatives and the Senate. Each such message shall be 
     printed as a document of each House.
       (2) Any special message transmitted under section 101 shall 
     be printed in the first issue of the Federal Register 
     published after such transmittal.
       (c) Introduction of Rescission/Receipts Disapproval 
     Bills.--The procedures set forth in subsection (d) shall 
     apply to any rescission/receipts disapproval bill introduced 
     in the House of Representatives not later than the third 
     calendar day of session beginning on the day after the date 
     of submission of a special message by the President under 
     section 101.
       (d) Consideration in the House of Representatives.--(1) The 
     committee of the House of Representatives to which a 
     rescission/receipts disapproval bill is referred shall report 
     it without amendment, and with or without recommendation, not 
     later than the eighth calendar day of session after the date 
     of its introduction. If the 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. A motion to discharge may be made only by an 
     individual favoring the bill (but only after the legislative 
     day on which a Member announces to the House the Member's 
     intention to do so). 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 rescission/receipts disapproval bill is 
     reported or the 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. All points of order 
     against the bill and against consideration of the bill are 
     waived. The motion is highly privileged. The previous 
     question shall be considered as ordered on that 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. 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 without 
     intervening motion, shall be confined to the bill, and shall 
     not exceed two hours equally divided and controlled by a 
     proponent and an opponent of the bill. After general debate 
     the Committee shall rise and report the bill to the House. 
     The previous question shall be considered as ordered on the 
     bill 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 the decisions of the Chair relating to the 
     application of the rules of the House of Representatives to 
     the procedure relating to a bill described in subsection (a) 
     shall be decided without debate.
       (4) It shall not be in order to consider more than one bill 
     described in subsection (c) or more than one motion to 
     discharge described in paragraph (1) with respect to a 
     particular special message.
       (5) Consideration of any rescission/receipts disapproval 
     bill under this subsection is governed by the rules of the 
     House of Representatives except to the extent specifically 
     provided by the provisions of this title.
       (e) Consideration in the Senate.--
       (1) Any rescission/receipts disapproval bill received in 
     the Senate from the House shall be considered in the Senate 
     pursuant to the provisions of this title.
       (2) Debate in the Senate on any rescission/receipts 
     disapproval bill and debatable motions and appeals in 
     connection therewith, 
     [[Page H1064]] shall be limited to not more than ten hours. 
     The time shall be equally divided between, and controlled by, 
     the majority leader and the minority leader or their 
     designees.
       (3) Debate in the Senate on any debatable motions or appeal 
     in connection with such bill shall be limited to one hour, to 
     be equally divided between, and controlled by the mover and 
     the manager of the bill, except that in the event the manager 
     of the bill is in favor of any such motion or appeal, the 
     time in opposition thereto shall be controlled by the 
     minority leader or his designee. Such leaders, or either of 
     them, may, from the time under their control on the passage 
     of the bill, allot additional time to any Senator during the 
     consideration of any debatable motion or appeal.
       (4) A motion to further limit debate is not debatable. A 
     motion to recommit (except a motion to recommit with 
     instructions to report back within a specified number of days 
     not to exceed one, not counting any day on which the Senate 
     is not in session) is not in order.
       (f) Points of Order.--
       (1) It shall not be in order in the Senate to consider any 
     rescission/receipts disapproval bill that relates to any 
     matter other than the rescission of budget authority or veto 
     of the provision of law transmitted by the President under 
     section 101.
       (2) It shall not be in order in the Senate to consider any 
     amendment to a rescission/receipts disapproval bill.
       (3) Paragraphs (1) and (2) may be waived or suspended in 
     the Senate only by a vote of three-fifths of the members duly 
     chosen and sworn.

     SEC. 105. REPORTS OF THE GENERAL ACCOUNTING OFFICE.

       Beginning on January 6, 1996, and at one-year intervals 
     thereafter, the Comptroller General shall submit a report to 
     each House of Congress which provides the following 
     information:
       (1) A list of each proposed Presidential rescission of 
     discretionary budget authority and veto of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their dollar value, and an indication of whether each 
     rescission of discretionary budget authority or veto of a 
     targeted tax benefit was accepted or rejected by Congress.
       (2) The total number of proposed Presidential rescissions 
     of discretionary budget authority and vetoes of a targeted 
     tax benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (3) The total number of Presidential rescissions of 
     discretionary budget authority or vetoes of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year and approved 
     by Congress, together with their total dollar value.
       (4) A list of rescissions of discretionary budget authority 
     initiated by Congress for the fiscal year ending during the 
     preceding calendar year, together with their dollar value, 
     and an indication of whether each such rescission was 
     accepted or rejected by Congress.
       (5) The total number of rescissions of discretionary budget 
     authority initiated and accepted by Congress for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (6) A summary of the information provided by paragraphs 
     (2), (3) and (5) for each of the ten fiscal years ending 
     before the fiscal year during this calendar year.
     SEC. 106. JUDICIAL REVIEW.

       (a) Expedited Review.--
       (1) Any Member of Congress 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 title 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) Any action brought under paragraph (1) shall be heard 
     and determined by a three-judge court in accordance with 
     section 2284 of title 28, United States Code.

     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 days after such order is 
     entered; and the jurisdictional statement shall be filed 
     within 30 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).
TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:


       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit.
      That bill shall clearly identify the amount of budget 
     authority that is proposed to be rescinded for each 
     program, project, or activity to which that budget 
     authority relates or the targeted tax benefit proposed to 
     be repealed, as the case may be. A targeted tax benefit 
     may only be proposed to be repealed under this section 
     during the 10-legislative-day period commencing on the day 
     after the date of enactment of the provision proposed to 
     be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill for accounts within the jurisdiction 
     of each such subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.

     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal.
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of the bill, 
     and the bill shall be placed on the appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
     [[Page H1065]]   ``(D) A vote on final passage of the bill 
     shall be taken in the House of Representatives on or before 
     the close of the 10th legislative day 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 engrossed, certified, and 
     transmitted to the Senate within one calendar day of the day 
     on which the bill is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be 
     decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from time 
     under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement to Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term legislative day means, with respect to 
     either House of Congress, any day of session;
       ``(3) the term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities; and
       ``(4) the term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     States. Any partnership, limited partnership, trust, or S 
     corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                        Offered By: Mr. Stenholm

       Amendment No. 26:
       After section 1, add the following new center heading:

                        TITLE I--LINE ITEM VETO

       Redesignate sections 2 through 6 as sections 101 through 
     105, respectively, and redesignate all cross-references 
     accordingly.
       At the end of section 101 (as redesignated), add the 
     following new subsection:
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.
       In sections 101 through 104, strike ``this Act'' each place 
     it appears and insert ``this title''.
       At the end, add the following:

     SEC. 106. JUDICIAL REVIEW.

       (a) Expedited Review.--
       (1) Any Member of Congress 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 title violates the Constitution.
     [[Page H1066]]   (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) Any action brought under paragraph (1) shall be heard 
     and determined by a three-judge court in accordance with 
     section 2284 of title 28, United States Code.

     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 days after such order is 
     entered; and the jurisdictional statement shall be filed 
     within 30 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).
TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:


       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit.
      That bill shall clearly identify the amount of budget 
     authority that is proposed to be rescinded for each 
     program, project, or activity to which that budget 
     authority relates or the targeted tax benefit proposed to 
     be repealed, as the case may be. A targeted tax benefit 
     may only be proposed to be repealed under this section 
     during the 10-legislative-day period commencing on the day 
     after the date of enactment of the provision proposed to 
     be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill for accounts within the jurisdiction 
     of each such subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.

     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal.
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of the bill, 
     and the bill shall be placed on the appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before the close of the 
     10th legislative day 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 engrossed, certified, and transmitted to the 
     Senate within one calendar day of the day on which the bill 
     is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be 
     decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from time 
     under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is 
     [[Page H1067]] not debatable. A motion to recommit a bill 
     under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement to Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session; and
       ``(3) the term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       ``(4) the term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     States. Any partnership, limited partnership, trust, or S 
     corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited
      to 1 hour, to be equally divided between, and controlled by, 
     the mover and the manager of the resolution, except that 
     in the event that the manager of the resolution is in 
     favor of any such motion or appeal, the time in opposition 
     thereto shall be controlled by the minority leader or his 
     designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                        Offered by: Mr. Stenholm

       Amendment No. 27: Strike all after the enacting clause and 
     insert the following:
     SECTION 1. SHORT TITLE.

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

                        TITLE I--LINE ITEM VETO

     SEC. 101. LINE ITEM VETO AUTHORITY.

       (a) In General.--Notwithstanding the provisions of part B 
     of title X of The Congressional Budget and Impoundment 
     Control Act of 1974, and subject to the provisions of this 
     section, the President may rescind all or part of any 
     discretionary budget authority or veto any targeted tax 
     benefit which is subject to the terms of this Act if the 
     President--
       (1) determines that--
       (A) such rescission or veto would help reduce the Federal 
     budget deficit;
       (B) such rescission or veto will not impair any essential 
     Government functions; and
       (C) such rescission or veto will not harm the national 
     interest; and
       (2) notifies the Congress of such rescission or veto by a 
     special message not later than ten calendar days (not 
     including Sundays) after the date of enactment of an 
     appropriation Act providing such budget authority or a 
     revenue or reconciliation Act containing a targeted tax 
     benefit.
       (b) Deficit Reduction.--In each special message, the 
     President may also propose to reduce the appropriate 
     discretionary spending limit set forth in section 601(a)(2) 
     of the Congressional Budget Act of 1974 by an amount that 
     does not exceed the total amount of discretionary budget 
     authority rescinded by that message.
       (c) Separate Messages.--The President shall submit a 
     separate special message for each appropriation Act and for 
     each revenue or reconciliation Act under this paragraph.
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.

     SEC. 102. LINE ITEM VETO EFFECTIVE UNLESS DISAPPROVED.

       (a)(1) Any amount of budget authority rescinded under 
     section 101 as set forth in a special message by the 
     President shall be deemed canceled unless, during the
      period described in subsection (b), a rescission/receipts 
     disapproval bill making available all of the amount 
     rescinded is enacted into law.
       (2) Any provision of law vetoed under section 101 as set 
     forth in a special message by the President shall be deemed 
     repealed unless, during the period described in subsection 
     (b), a rescission/receipts disapproval bill restoring that 
     provision is enacted into law.
       (b) The period referred to in subsection (a) is--
       (1) a congressional review period of twenty calendar days 
     of session, beginning on the first calendar day of session 
     after the date of submission of the special message, during 
     which Congress must complete action on the rescission/
     receipts disapproval bill and present such bill to the 
     President for approval or disapproval;
       (2) after the period provided in paragraph (1), an 
     additional ten days (not including Sundays) during which the 
     President may exercise his authority to sign or veto the 
     rescission/receipts disapproval bill; and
       (3) if the President vetoes the rescission/receipts 
     disapproval bill during the period provided in paragraph (2), 
     an additional five calendar days of session after the date of 
     the veto.
       (c) If a special message is transmitted by the President 
     under section 101 and the last session of the Congress 
     adjourns sine die before the expiration of the period 
     described in subsection (b), the rescission or veto, as the 
     case may be, shall not take effect. The message shall be 
     deemed to have been retransmitted on the first Monday in 
     February of the succeeding Congress and the review period 
     referred to in subsection (b) (with respect to such message) 
     shall run beginning after such first day.

     SEC. 103. DEFINITIONS.

       As used in this title:
       (1) The term ``rescission/receipts disapproval bill'' means 
     a bill or joint resolution which only disapproves, in whole, 
     rescissions of discretionary budget authority or only 
     disapproves vetoes of targeted tax benefits in a special 
     message transmitted by the President under this Act and--
       (A) which does not have a preamble;
       (B)(i) in the case of a special message regarding 
     rescissions, the matter after the enacting clause of which is 
     as follows: ``That Congress disapproves each rescission of 
     discretionary budget authority of the President as submitted 
     by the President in a special message on ________'', the 
     blank space being filled in with the appropriate date and the 
     public law to which the message relates; and
       (ii) in the case of a special message regarding vetoes of 
     targeted tax benefits, the matter after the enacting clause 
     of which is as follows: ``That Congress disapproves each 
     [[Page H1068]] veto of targeted tax benefits of the President 
     as submitted by the President in a special message on 
     ________'', the blank space being filled in with the 
     appropriate date and the public law to which the message 
     relates; and
       (C) the title of which is as follows: ``A bill disapproving 
     the recommendations submitted by the President on ________'', 
     the blank space being filled in with the date of submission 
     of the relevant special message and the public law to which 
     the message relates.
       (2) The term ``calendar days of session'' shall mean only 
     those days on which both Houses of Congress are in session.
       (3) The term ``targeted tax benefit'' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       (4) The term ``appropriation Act'' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations.
     SEC. 104. CONGRESSIONAL CONSIDERATION OF LINE ITEM VETOES.

       (a) Presidential Special Message.--Whenever the President 
     rescinds any budget authority as provided in section 101 or 
     vetoes any provision of law as provided in 101, the President 
     shall transmit to both Houses of Congress a special message 
     specifying--
       (1) the amount of budget authority rescinded or the 
     provision vetoed;
       (2) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       (3) the reasons and justifications for the determination to 
     rescind budget authority or veto any provision pursuant to 
     section 101;
       (4) to the maximum extent practicable, the estimated 
     fiscal, economic, and budgetary effect of the rescission or 
     veto; and
       (5) all actions, circumstances, and considerations relating 
     to or bearing upon the rescission or veto and the decision to 
     effect the rescission or veto, and to the maximum extent 
     practicable, the estimated effect of the rescission upon the 
     objects, purposes, and programs for which the budget 
     authority is provided.
       (b) Transmission of Messages to House and Senate.--
       (1) Each special message transmitted under section 101 
     shall be transmitted to the House of Representatives and the 
     Senate on the same day, and 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. Each special message so transmitted shall be 
     referred to the appropriate committees of the House of 
     Representatives and the Senate. Each such message shall be 
     printed as a document of each House.
       (2) Any special message transmitted under section 101 shall 
     be printed in the first issue of the Federal Register 
     published after such transmittal.
       (c) Introduction of Rescission/Receipts Disapproval 
     Bills.--The procedures set forth in subsection (d) shall 
     apply to any rescission/receipts disapproval bill introduced 
     in the House of Representatives not later than the third 
     calendar day of session beginning on the day after the date 
     of submission of a special message by the President under 
     section 101.
       (d) Consideration in the House of Representatives.--(1) The 
     committee of the House of Representatives to which a 
     rescission/receipts disapproval bill is referred shall report 
     it without amendment, and with or without recommendation, not 
     later than the eighth calendar day of session after the date 
     of its introduction. If the 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. A motion to discharge may be made only by an 
     individual favoring the bill (but only after the legislative 
     day on which a Member announces to the House the Member's 
     intention to do so). 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 rescission/receipts disapproval bill is 
     reported or the 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. All points of order 
     against the bill and against consideration of the bill are 
     waived. The motion is highly privileged. The previous 
     question shall be considered as ordered on that 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. 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 without 
     intervening motion, shall be confined to the bill, and shall 
     not exceed two hours equally divided and controlled by a 
     proponent and an opponent of the bill. After general debate 
     the Committee shall rise and report the bill to the House. 
     The previous question shall be considered as ordered on the 
     bill 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 the decisions of the Chair relating to the 
     application of the rules of the House of Representatives to 
     the procedure relating to a bill described in subsection (a) 
     shall be decided without debate.
       (4) It shall not be in order to consider more than one bill 
     described in subsection (c) or more than one motion to 
     discharge described in paragraph (1) with respect to a 
     particular special message.
       (5) Consideration of any rescission/receipts disapproval 
     bill under this subsection is governed by the rules of the 
     House of Representatives except to the extent specifically 
     provided by the provisions of this title.
       (e) Consideration in the Senate.--
       (1) Any rescission/receipts disapproval bill received in 
     the Senate from the House shall be considered in the Senate 
     pursuant to the provisions of this title.
       (2) Debate in the Senate on any rescission/receipts 
     disapproval bill and debatable motions and appeals in 
     connection therewith, shall be limited to not more than ten 
     hours. The time shall be equally divided between, and 
     controlled by, the majority leader and the minority leader or 
     their designees.
       (3) Debate in the Senate on any debatable motions or appeal 
     in connection with such bill shall be limited to one hour, to 
     be equally divided between, and controlled by the mover and 
     the manager of the bill, except that in the event the manager 
     of the bill is in favor of any such motion or appeal, the 
     time in opposition thereto shall be controlled by the 
     minority leader or his designee. Such leaders, or either of 
     them, may, from the time under their control on the passage 
     of the bill, allot additional time to any Senator during the 
     consideration of any debatable motion or appeal.
       (4) A motion to further limit debate is not debatable. A 
     motion to recommit (except a motion to recommit with 
     instructions to report back within a specified number of days 
     not to exceed one, not counting any day on which the Senate 
     is not in session) is not in order.
       (f) Points of Order.--
       (1) It shall not be in order in the Senate to consider any 
     rescission/receipts disapproval bill that relates to any 
     matter other than the rescission of budget authority or veto 
     of the provision of law transmitted by the President under 
     section 101.
       (2) It shall not be in order in the Senate to consider any 
     amendment to a rescission/receipts disapproval bill.
       (3) Paragraphs (1) and (2) may be waived or suspended in 
     the Senate only by a vote of three-fifths of the members duly 
     chosen and sworn.

     SEC. 105. REPORTS OF THE GENERAL ACCOUNTING OFFICE.

       Beginning on January 6, 1996, and at one-year intervals 
     thereafter, the Comptroller General shall submit a report to 
     each House of Congress which provides the following 
     information:
       (1) A list of each proposed Presidential rescission of 
     discretionary budget authority and veto of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their dollar value, and an indication of whether each 
     rescission of discretionary budget authority or veto of a 
     targeted tax benefit was accepted or rejected by Congress.
       (2) The total number of proposed Presidential rescissions 
     of discretionary budget authority and vetoes of a targeted 
     tax benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (3) The total number of Presidential rescissions of 
     discretionary budget authority or vetoes of a targeted tax 
     benefit submitted through special messages for the fiscal 
     year ending during the preceding calendar year and approved 
     by Congress, together with their total dollar value.
       (4) A list of rescissions of discretionary budget authority 
     initiated by Congress for the fiscal year ending during the 
     preceding calendar year, together with their dollar value, 
     and an indication of whether each such rescission was 
     accepted or rejected by Congress.
       (5) The total number of rescissions of discretionary budget 
     authority initiated and accepted by Congress for the fiscal 
     year ending during the preceding calendar year, together with 
     their total dollar value.
       (6) A summary of the information provided by paragraphs 
     (2), (3) and (5) for each of the ten fiscal years ending 
     before the fiscal year during this calendar year.
TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:


       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted 
     [[Page H1069]] Tax Benefits.--The President may propose, at 
     the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit. That bill shall clearly identify the amount of 
     budget authority that is proposed to be rescinded for each 
     program, project, or activity to which that budget authority 
     relates or the targeted tax benefit proposed to be repealed, 
     as the case may be. A targeted tax benefit may only be 
     proposed to be repealed under this section during the 10-
     legislative-day period commencing on the day after the date 
     of enactment of the provision proposed to be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill
      for accounts within the jurisdiction of each such 
     subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.
     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal;
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of the bill, 
     and the bill shall be placed on the appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before
      the close of the 10th legislative day 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 engrossed, 
     certified, and transmitted to the Senate within one 
     calendar day of the day on which the bill is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be 
     decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from
      time under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement To Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session;
       ``(3) the term `targeted tax benefit' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities; and
       ``(4) the term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     [[Page H1070]] States. Any partnership, limited partnership, 
     trust, or S corporation, and any subsidiary or affiliate of 
     the same parent corporation, shall be deemed and counted as a 
     single beneficiary regardless of the number of partners, 
     limited partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                        Offered By: Mr. Stenholm

       Amendment No. 28: After section 1, add the following new 
     center heading:
                        TITLE I--LINE ITEM VETO
       Redesignate sections 2 through 6 as sections 101 through 
     105, respectively, and redesignate all cross-references 
     accordingly.
       At the end of section 101 (as redesignated), add the 
     following new subsection:
       (d) Special Rule.--For any rescission of budget authority, 
     the President may either submit a special message under this 
     section or under section 1012 of the Impoundment Control Act 
     of 1974. Funds proposed to be rescinded under this section 
     may not be proposed to be rescinded under section 1012 of 
     that Act.
       In sections 101 through 104, strike ``this Act'' each place 
     it appears and insert ``this title''.
       At the end, add the following:
TITLE II--EXPEDITED CONSIDERATION OF PROPOSED RESCISSIONS AND TARGETED 
                              TAX BENEFITS

     SEC. 201. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:


       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit. That bill shall clearly identify the amount of 
     budget authority that is proposed to be rescinded for each 
     program, project, or activity to which that budget authority 
     relates or the targeted tax benefit proposed to be repealed, 
     as the case may be. A targeted tax benefit may only be 
     proposed to be repealed under this section during the 10-
     legislative-day period commencing on the day after the date 
     of enactment of the provision proposed to be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind budget authority under this 
     section shall send a separate special message and 
     accompanying draft bill
      for accounts within the jurisdiction of each such 
     subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided.

     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal.
       (4) For any rescission of budget authority, the President 
     may either submit a special message under this section or 
     under section 101 of the Line Item Veto Act. Funds proposed 
     to be rescinded under this section may not be proposed to be 
     rescinded under section 101 of that Act.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of the bill, 
     and the bill shall be placed on the appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before
      the close of the 10th legislative day 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 engrossed, 
     certified, and transmitted to the Senate within one 
     calendar day of the day on which the bill is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
     [[Page H1071]]   ``(C) 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 section shall be decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from
      time under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement to Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session; and
       ``(3) The term `targeted tax benefit' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.
       ``(4) The term `beneficiary' means any taxpayer or any 
     corporation, partnership, institution, organization, item of 
     property, State, or civil subdivision within one or more 
     States. Any partnership, limited partnership, trust, or S 
     corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities.''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
       (A) in subsection (a), by striking ``rescission bill 
     introduced with respect to a special message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:
``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                         Offered By: Ms. Waters

       Amendment No. 29: The first sentence of paragraph (3) of 
     section 4 is amended by inserting ``or which the President 
     determines would yield at least 50 percent of its benefit to 
     the top 10 percent of income earners'' before the period.

                                 H.R. 2

                         Offered By: Ms. Waters

       Amendment No. 30: The first sentence of paragraph (3) of 
     section 4 is amended by inserting ``or which the President 
     determines would yield at least 20 percent of its benefit to 
     the top 1 percent of income earners'' before the period.

                                 H.R. 2

                          Offered By: Mr. Wise

       Amendment No. 31: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED 
                   RESCISSIONS AND TARGETED TAX BENEFITS.

       (a) In General.--Section 1012 of the Congressional Budget 
     and Impoundment Control Act of 1974 (2 U.S.C. 683) is amended 
     to read as follows:


       ``expedited consideration of certain proposed rescissions

       ``Sec. 1012. (a) Proposed Rescission of Budget Authority or 
     Repeal of Targeted Tax Benefits.--The President may propose, 
     at the time and in the manner provided in subsection (b), the 
     rescission of any budget authority provided in an 
     appropriation Act or repeal of any targeted tax benefit 
     provided in any revenue Act. If the President proposes a 
     rescission of budget authority, he may also propose to reduce 
     the appropriate discretionary spending limit set forth in 
     section 601(a)(2) of the Congressional Budget Act of 1974 by 
     an amount that does not exceed the amount of the proposed 
     rescission. Funds made available for obligation under this 
     procedure may not be proposed for rescission again under this 
     section.
       ``(b) Transmittal of Special Message.--
       ``(1) The President may transmit to Congress a special 
     message proposing to rescind amounts of budget authority or 
     to repeal any targeted tax benefit and include with that 
     special message a draft bill that, if enacted, would only 
     rescind that budget authority or repeal that targeted tax 
     benefit unless the President also proposes a reduction in the 
     appropriate discretionary spending limit set forth in section 
     601(a)(2) of the 
     [[Page H1072]] Congressional Budget Act of 1974. That bill 
     shall clearly identify the amount of budget authority that is 
     proposed to be rescinded for each program, project, or 
     activity to which that budget authority relates or the 
     targeted tax benefit proposed to be repealed, as the case may 
     be. A targeted tax benefit may only be proposed to be 
     repealed under this section during the 10-legislative-day 
     period commencing on the day after the date of enactment of 
     the provision proposed to be repealed.
       ``(2) In the case of an appropriation Act that includes 
     accounts within the jurisdiction of more than one 
     subcommittee of the Committee on Appropriations, the 
     President in proposing to rescind
      budget authority under this section shall send a separate 
     special message and accompanying draft bill for accounts 
     within the jurisdiction of each such subcommittee.
       ``(3) Each special message shall specify, with respect to 
     the budget authority proposed to be rescinded, the 
     following--
       ``(A) the amount of budget authority which he proposes to 
     be rescinded;
       ``(B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(C) the reasons why the budget authority should be 
     rescinded;
       ``(D) 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 
     rescission;
       ``(E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission and the decision 
     to effect the proposed rescission, and to the maximum extent 
     practicable, the estimated effect of the proposed rescission 
     upon the objects, purposes, and programs for which the budget 
     authority is provided; and
       ``(F) a reduction in the appropriate discretionary spending 
     limit set forth in section 601(a)(2) of the Congressional 
     Budget Act of 1974, if proposed by the President.
     Each special message shall specify, with respect to the 
     proposed repeal of targeted tax benefits, the information 
     required by subparagraphs (C), (D), and (E), as it relates to 
     the proposed repeal.
       ``(c) Procedures for Expedited Consideration.--
       ``(1)(A) Before the close of the second legislative day of 
     the House of Representatives after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Representatives shall introduce (by request) the draft bill 
     accompanying that special message. If the bill is not 
     introduced as provided in the preceding sentence, then, on 
     the third legislative day of the House of Representatives 
     after the date of receipt of that special message, any Member 
     of that House may introduce the bill.
       ``(B) The bill shall be referred to the Committee on 
     Appropriations or the Committee on Ways and Means of the 
     House of Representatives, as applicable. The committee shall 
     report the bill without substantive revision and with or 
     without recommendation. The bill shall be reported not later 
     than the seventh legislative day of that House after the date 
     of receipt of that special message. If that committee fails 
     to report the bill within that period, that committee shall 
     be automatically discharged from consideration of the bill, 
     and the bill shall be placed on the appropriate calendar.
       ``(C) During consideration under this paragraph, any Member 
     of the House of Representatives may move to strike any 
     proposed rescission or rescissions of budget authority or any 
     proposed repeal of a targeted tax benefit, as applicable, if 
     supported by 49 other Members.
       ``(D) A vote on final passage of the bill shall be taken in 
     the House of Representatives on or before the close of the 
     10th legislative day 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 engrossed, 
     certified, and transmitted to the Senate within one 
     calendar day of the day on which the bill is passed.
       ``(2)(A) A motion in the House of Representatives to 
     proceed to the consideration of a bill under this section 
     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) Debate in the House of Representatives on a bill 
     under this section 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 section or to move to reconsider the vote by 
     which the bill is agreed to or disagreed to.
       ``(C) 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 section shall be 
     decided without debate.
       ``(D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill under this section 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 rescission bill 
     introduced pursuant to the provisions of this section under a 
     suspension of the rules or under a special rule.
       ``(3)(A) A bill transmitted to the Senate pursuant to 
     paragraph (1)(D) shall be referred to its Committee on 
     Appropriations or Committee on Finance, as applicable. That 
     committee shall report the bill without substantive revision 
     and with or without recommendation. The bill shall be 
     reported not later than the seventh legislative day of the 
     Senate after it receives the bill. A committee failing to 
     report the bill within such period shall be automatically 
     discharged from consideration of the bill, and the bill shall 
     be placed upon the appropriate calendar.
       ``(B) During consideration under this paragraph, any Member 
     of the Senate may move to strike any proposed rescission or 
     rescissions of budget authority or any proposed repeal of a 
     targeted tax benefit, as applicable, if supported by 14 other 
     Members.
       ``(4)(A) A motion in the Senate to proceed to the 
     consideration of a bill under this section shall be 
     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) Debate in the Senate on a bill under this section, 
     and all debatable motions and appeals in connection therewith 
     (including debate pursuant to subparagraph (C)), shall not 
     exceed 10 hours. The time shall be equally divided between, 
     and controlled by, the majority leader and the minority 
     leader or their designees.
       ``(C) Debate in the Senate on any debatable motion or 
     appeal in connection with a bill under this section shall be 
     limited to not more than 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     bill, except that in the event the manager of the bill is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from time 
     under their control on the passage of a bill, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       ``(D) A motion in the Senate to further limit debate on a 
     bill under this section is not debatable. A motion to 
     recommit a bill under this section is not in order.
       ``(d) Amendments and Divisions Prohibited.--Except as 
     otherwise provided by this section, no amendment to a bill 
     considered under this section shall be in order in either the 
     House of Representatives or the Senate. It shall not be in 
     order to demand a division of the question in the House of 
     Representatives (or in a Committee of the Whole) or in the 
     Senate. No motion to suspend the application of this 
     subsection shall be in order in either House, nor shall it be 
     in order in either House to suspend the application of this 
     subsection by unanimous consent.
       ``(e) Requirement To Make Available for Obligation.--(1) 
     Any amount of budget authority proposed to be rescinded in a 
     special message transmitted to Congress under subsection (b) 
     shall be made available for obligation on the day after the 
     date on which either House rejects the bill transmitted with 
     that special message.
       ``(2) Any targeted tax benefit proposed to be repealed 
     under this section as set forth in a special message 
     transmitted by the President shall not be deemed repealed 
     unless the bill transmitted with that special message is 
     enacted into law.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `appropriation Act' means any general or 
     special appropriation Act, and any Act or joint resolution 
     making supplemental, deficiency, or continuing 
     appropriations;
       ``(2) the term `legislative day' means, with respect to 
     either House of Congress, any day of session; and
       ``(3) The term `targeted tax benefit' means any provision 
     of a revenue or reconciliation Act determined by the 
     President to provide a Federal tax deduction, credit, 
     exclusion, preference, or other concession to 100 or fewer 
     beneficiaries. Any partnership, limited partnership, trust, 
     or S corporation, and any subsidiary or affiliate of the same 
     parent corporation, shall be deemed and counted as a single 
     beneficiary regardless of the number of partners, limited 
     partners, beneficiaries, shareholders, or affiliated 
     corporate entities''.
       (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 ``1012, and 1017''; and
       (2) in subsection (d), by striking ``section 1017'' and 
     inserting ``sections 1012 and 1017''; and
       (c) Conforming Amendments.--
       (1) Section 1011 of the Congressional Budget Act of 1974 (2 
     U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
     and by redesignating paragraph (4) as paragraph (3).
       (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
       (A) in subsection (b)(1), by striking ``or the 
     reservation''; and
       (B) in subsection (e)(1), by striking ``or a reservation'' 
     and by striking ``or each such reservation''.
       (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
     by striking ``is to establish a reserve or'', by striking 
     ``the establishment of such a reserve or'', and by striking 
     ``reserve or'' each other place it appears.
       (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
     [[Page H1073]]   (A) in subsection (a), by striking 
     ``rescission bill introduced with respect to a special 
     message or'';
       (B) in subsection (b)(1), by striking ``rescission bill 
     or'', by striking ``bill or'' the second place it appears, by 
     striking ``rescission bill with respect to the same special 
     message or'', and by striking ``, and the case may be,'';
       (C) in subsection (b)(2), by striking ``bill or'' each 
     place it appears;
       (D) in subsection (c), by striking ``rescission'' each 
     place it appears and by striking ``bill or'' each place it 
     appears;
       (E) in subsection (d)(1), by striking ``rescission bill 
     or'' and by striking ``, and all amendments thereto (in the 
     case of a rescission bill)'';
       (F) in subsection (d)(2)--
       (i) by striking the first sentence;
       (ii) by amending the second sentence to read as follows: 
     ``Debate on any debatable motion or appeal in connection with 
     an impoundment resolution shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the resolution, except that in the event that the 
     manager of the resolution is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee.'';
       (iii) by striking the third sentence; and
       (iv) in the fourth sentence, by striking ``rescission bill 
     or'' and by striking ``amendment, debatable motion,'' and by 
     inserting ``debatable motion'';
       (G) in paragraph (d)(3), by striking the second and third 
     sentences; and
       (H) by striking paragraphs (4), (5), (6), and (7) of 
     paragraph (d).
       (d) Clerical Amendments.--The item relating to section 1012 
     in the table of sections for subpart B of title X of the 
     Congressional Budget and Impoundment Control Act of 1974 is 
     amended to read as follows:

``Sec. 1012. Expedited consideration of certain proposed rescissions 
              and targeted tax benefits.''.
                                 H.R. 2

                         Offered by: Mr. Zimmer

       Amendment No. 32: Section 5(d)(2) is amended by striking 
     the eighth and ninth sentences and inserting the following:

       No amendment to the bill is in order except amendments to 
     strike any rescission or rescissions of budget authority. At 
     the conclusion of the consideration of the bill for 
     amendment, the Committee shall rise and report the bill to 
     the House. The previous question shall be considered as 
     ordered on the bill and amendments thereto to final passage 
     without intervening motion.
Vol. 141        WASHINGTON, WEDNESDAY, FEBRUARY 1, 1995          No. 20
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                                 Senate


             (Legislative day of Monday, January 30, 1995)