    [United States Senate Manual, 104th Congress]
    [S. Doc. 104-1]
    [Statistical Data]
    [Pages 1163-1176]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 1163]]

                               LINE ITEM VETO ACT

    [[Page 1164]]

    Public Law 104-130
    104th Congress

                                     An Act

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

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

    SECTION 1. <>  SHORT TITLE.

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

    SEC. 2. LINE ITEM VETO AUTHORITY.

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

                            ``Part C--Line Item Veto

        ``Sec. 1021. <>  (a) In General.--Notwithstanding
    the provisions of parts A and B, and subject to the provisions of this
    part, the President may, with respect to any bill or joint resolution
    that has been signed into law pursuant to Article I, section 7, of the
    Constitution of the United States, cancel in whole--
                ``(1) any dollar amount of discretionary budget authority;
                ``(2) any item of new direct spending; or
                ``(3) any limited tax benefit;

    if the President--
                ``(A) determines that such cancellation will--
                        ``(i) reduce the Federal budget deficit;
                        ``(ii) not impair any essential Government
                    functions; and
                        ``(iii) not harm the national interest; and
                ``(B) notifies the Congress of such cancellation by
            transmitting a special message, in accordance with section 1022,
            within five calendar days (excluding Sundays) after the
            enactment of the law providing the dollar amount of
            discretionary budget authority, item of new direct spending, or
            limited tax benefit that was canceled.

        ``(b) Identification of Cancellations.--In identifying dollar
    amounts of discretionary budget authority, items of new direct spending,
    and limited tax benefits for cancellation, the President shall--
                ``(1) consider the legislative history, construction, and
            purposes of the law which contains such dollar amounts, items,
            or benefits;

    [[Page 1165]]

                ``(2) consider any specific sources of information
            referenced in such law or, in the absence of specific sources of
            information, the best available information; and
                ``(3) use the definitions contained in section 1026 in
            applying this part to the specific provisions of such law.

        ``(c) Exception for Disapproval Bills.--The authority granted by
    subsection (a) shall not apply to any dollar amount of discretionary
    budget authority, item of new direct spending, or limited tax benefit
    contained in any law that is a disapproval bill as defined in section
                                      1026.

        ``Sec. 1022 <> . (a) In General.--For
    each law from which a cancellation has been made under this part, the
    President shall transmit a single special message to the Congress.

        ``(b) Contents.--
                ``(1) The special message shall specify--
                        ``(A) the dollar amount of discretionary budget
                    authority, item of new direct spending, or limited tax
                    benefit which has been canceled, and provide a
                    corresponding reference number for each cancellation;
                        ``(B) the determinations required under section
                    1021(a), together with any supporting material;
                        ``(C) the reasons for the cancellation;
                        ``(D) to the maximum extent practicable, the
                    estimated fiscal, economic, and budgetary effect of the
                    cancellation;
                        ``(E) all facts, circumstances and considerations
                    relating to or bearing upon the cancellation, and to the
                    maximum extent practicable, the estimated effect of the
                    cancellation upon the objects, purposes and programs for
                    which the canceled authority was provided; and
                        ``(F) include the adjustments that will be made
                    pursuant to section 1024 to the discretionary spending
                    limits under section 601 and an evaluation of the
                    effects of those adjustments upon the sequestration
                    procedures of section 251 of the Balanced Budget and
                    Emergency Deficit Control Act of 1985.
                ``(2) In the case of a cancellation of any dollar amount of
            discretionary budget authority or item of new direct spending,
            the special message shall also include, if applicable--
                        ``(A) any account, department, or establishment of
                    the Government for which such budget authority was to
                    have been available for obligation and the specific
                    project or governmental functions involved;
                        ``(B) the specific States and congressional
                    districts, if any, affected by the cancellation; and
                        ``(C) the total number of cancellations imposed
                    during the current session of Congress on States and
                    congressional districts identified in subparagraph (B).

        ``(c) Transmission of Special Messages to House and Senate.--
                ``(1) The President shall transmit to the Congress each
            special message under this part within five calendar days
            (excluding Sundays) after enactment of the law to which the
            cancellation applies. Each special message shall be transmitted
            to the House of Representatives and the Senate on the same
            calendar day. Such special message shall be delivered to the

    [[Page 1166]]

            Clerk of the House of Representatives if the House is not in
            session, and to the Secretary of the Senate if the Senate is not
            in session.
                ``(2) <>  Any special message transmitted
            under this part shall be printed in the first issue of the
                   Federal Register published after such transmittal.

        ``Sec. 1023. <>  (a) In General.--The
    cancellation of any dollar amount of discretionary budget authority,
    item of new direct spending, or limited tax benefit shall take effect
    upon receipt in the House of Representatives and the Senate of the
    special message notifying the Congress of the cancellation. If a
    disapproval bill for such special message is enacted into law, then all
    cancellations disapproved in that law shall be null and void and any
    such dollar amount of discretionary budget authority, item of new direct
    spending, or limited tax benefit shall be effective as of the original
    date provided in the law to which the cancellation applied.

        ``(b) Commensurate Reductions in Discretionary Budget Authority.--
    Upon the cancellation of a dollar amount of discretionary budget
    authority under subsection (a), the total appropriation for each
    relevant account of which that dollar amount is a part shall be
        simultaneously reduced by the dollar amount of that cancellation.

        ``Sec. 1024. <>  (a) In General.--
                ``(1) Discretionary budget authority.--OMB shall, for each
            dollar amount of discretionary budget authority and for each
            item of new direct spending canceled from an appropriation law
            under section 1021(a)--
                        ``(A) reflect the reduction that results from such
                    cancellation in the estimates required by section
                    251(a)(7) of the Balanced Budget and Emergency Deficit
                    Control Act of 1985 in accordance with that Act,
                    including an estimate of the reduction of the budget
                    authority and the reduction in outlays flowing from such
                    reduction of budget authority for each outyear; and
                        ``(B) include a reduction to the discretionary
                    spending limits for budget authority and outlays in
                    accordance with the Balanced Budget and Emergency
                    Deficit Control Act of 1985 for each applicable fiscal
                    year set forth in section 601(a)(2) by amounts equal to
                    the amounts for each fiscal year estimated pursuant to
                    subparagraph (A).
                ``(2) Direct spending and limited tax benefits.--(A) OMB
            shall, for each item of new direct spending or limited tax
            benefit canceled from a law under section 1021(a), estimate the
            deficit decrease caused by the cancellation of such item or
            benefit in that law and include such estimate as a separate
            entry in the report prepared pursuant to section 252(d) of the
            Balanced Budget and Emergency Deficit Control Act of 1985.
                ``(B) OMB shall not include any change in the deficit
            resulting from a cancellation of any item of new direct spending
            or limited tax benefit, or the enactment of a disapproval bill
            for any such cancellation, under this part in the estimates

    [[Page 1167]]

            and reports required by sections 252(b) and 254 of the Balanced
            Budget and Emergency Deficit Control Act of 1985.

        ``(b) Adjustments to Spending Limits.--After ten calendar days
    (excluding Sundays) after the expiration of the time period in section
    1025(b)(1) for expedited congressional consideration of a disapproval
    bill for a special message containing a cancellation of discretionary
    budget authority, OMB shall make the reduction included in subsection
    (a)(1)(B) as part of the next sequester report required by section 254
    of the Balanced Budget and Emergency Deficit Control Act of 1985.
        ``(c) Exception.--Subsection (b) shall not apply to a cancellation
    if a disapproval bill or other law that disapproves that cancellation is
    enacted into law prior to 10 calendar days (excluding Sundays) after the
    expiration of the time period set forth in section 1025(b)(1).
        ``(d) Congressional Budget Office Estimates.--As soon as practicable
    after the President makes a cancellation from a law under section
    1021(a), the Director of the Congressional Budget Office shall provide
    the Committees on the Budget of the House of Representatives and the
    Senate with an estimate of the reduction of the budget authority and the
    reduction in outlays flowing from such reduction of budget authority for
                                  each outyear.

        ``Sec. 1025. <>  (a) Receipt and Referral of
    Special Message.--Each special message transmitted under this part shall
    be referred to the Committee on the Budget and the appropriate committee
    or committees of the Senate and the Committee on the Budget and the
    appropriate committee or committees of the House of Representatives.
    Each such message shall be printed as a document of the House of
    Representatives.

        ``(b) Time Period for Expedited Procedures.--
                ``(1) There shall be a congressional review period of 30
            calendar days of session, beginning on the first calendar day of
            session after the date on which the special message is received
            in the House of Representatives and the Senate, during which the
            procedures contained in this section shall apply to both Houses
            of Congress.
                ``(2) In the House of Representatives the procedures set
            forth in this section shall not apply after the end of the
            period described in paragraph (1).
                ``(3) If Congress adjourns at the end of a Congress prior to
            the expiration of the period described in paragraph (1) and a
            disapproval bill was then pending in either House of Congress or
            a committee thereof (including a conference committee of the two
            Houses of Congress), or was pending before the President, a
            disapproval bill for the same special message may be introduced
            within the first five calendar days of session of the next
            Congress and shall be treated as a disapproval bill under this
            part, and the time period described in paragraph (1) shall
            commence on the day of introduction of that disapproval bill.

        ``(c) Introduction of Disapproval Bills.--(1) In order for a
    disapproval bill to be considered under the procedures set forth in this
    section, the bill must meet the definition of a disapproval bill and
    must be introduced no later than the fifth calendar day of session
    following the beginning of the period described in subsection (b)(1).

    [[Page 1168]]

        ``(2) In the case of a disapproval bill introduced in the House of
    Representatives, such bill shall include in the first blank space
    referred to in section 1026(6)(C) a list of the reference numbers for
    all cancellations made by the President in the special message to which
    such disapproval bill relates.
        ``(d) <>  Consideration in the House of
    Representatives.--(1) Any committee of the House of Representatives to
    which a disapproval bill is referred shall report it without amendment,
    and with or without recommendation, not later than the seventh calendar
    day of session after the date of its introduction. If any committee
    fails to report the bill within that period, it is in order to move that
    the House discharge the committee from further consideration of the
    bill, except that such a motion may not be made after the committee has
    reported a disapproval bill with respect to the same special message. A
    motion to discharge may be made only by a Member favoring the bill (but
    only at a time or place designated by the Speaker in the legislative
    schedule of the day after the calendar day on which the Member offering
    the motion announces to the House his intention to do so and the form of
    the motion). The motion is highly privileged. Debate thereon shall be
    limited to not more than one hour, the time to be divided in the House
    equally between a proponent and an opponent. The previous question shall
    be considered as ordered on the motion to its adoption without
    intervening motion. A motion to reconsider the vote by which the motion
    is agreed to or disagreed to shall not be in order.

        ``(2) After a disapproval bill is reported or a committee has been
    discharged from further consideration, it is in order to move that the
    House resolve into the Committee of the Whole House on the State of the
    Union for consideration of the bill. If reported and the report has been
    available for at least one calendar day, all points of order against the
    bill and against consideration of the bill are waived. If discharged,
    all points of order against the bill and against consideration of the
    bill are waived. The motion is highly privileged. A motion to reconsider
    the vote by which the motion is agreed to or disagreed to shall not be
    in order. During consideration of the bill in the Committee of the
    Whole, the first reading of the bill shall be dispensed with. General
    debate shall proceed, shall be confined to the bill, and shall not
    exceed one hour equally divided and controlled by a proponent and an
    opponent of the bill. The bill shall be considered as read for amendment
    under the five-minute rule. Only one motion to rise shall be in order,
    except if offered by the manager. No amendment to the bill is in order,
    except any Member if supported by 49 other Members (a quorum being
    present) may offer an amendment striking the reference number or numbers
    of a cancellation or cancellations from the bill. Consideration of the
    bill for amendment shall not exceed one hour excluding time for recorded
    votes and quorum calls. No amendment shall be subject to further
    amendment, except pro forma amendments for the purposes of debate only.
    At the conclusion of the consideration of the bill for amendment, the
    Committee shall rise and report the bill to the House with such
    amendments as may have been adopted. The previous question shall be
    considered as ordered on the bill and amendments thereto to final
    passage without intervening motion. A motion to reconsider the vote on
    passage of the bill shall not be in order.

    [[Page 1169]]

        ``(3) Appeals from decisions of the Chair regarding application of
    the rules of the House of Representatives to the procedure relating to a
    disapproval bill shall be decided without debate.
        ``(4) It shall not be in order to consider under this subsection
    more than one disapproval bill for the same special message except for
    consideration of a similar Senate bill (unless the House has already
    rejected a disapproval bill for the same special message) or more than
    one motion to discharge described in paragraph (1) with respect to a
    disapproval bill for that special message.
        ``(e) Consideration in the Senate.--
                ``(1) Referral and reporting.--Any disapproval bill
            introduced in the Senate shall be referred to the appropriate
            committee or committees. A committee to which a disapproval bill
            has been referred shall report the bill not later than the
            seventh day of session following the date of introduction of
            that bill. If any committee fails to report the bill within that
            period, that committee shall be automatically discharged from
            further consideration of the bill and the bill shall be placed
            on the Calendar.
                ``(2) Disapproval bill from house.--When the Senate receives
            from the House of Representatives a disapproval bill, such bill
            shall not be referred to committee and shall be placed on the
            Calendar.
                ``(3) Consideration of single disapproval bill.--After the
            Senate has proceeded to the consideration of a disapproval bill
            for a special message, then no other disapproval bill
            originating in that same House relating to that same message
            shall be subject to the procedures set forth in this subsection.
                ``(4) Amendments.--
                        ``(A) Amendments in order.--The only amendments in
                    order to a disapproval bill are--
                              ``(i) an amendment that strikes the reference
                          number of a cancellation from the disapproval
                          bill; and
                              ``(ii) an amendment that only inserts the
                          reference number of a cancellation included in the
                          special message to which the disapproval bill
                          relates that is not already contained in such
                          bill.
                        ``(B) Waiver or appeal.--An affirmative vote of
                    three-fifths of the Senators, duly chosen and sworn,
                    shall be required in the Senate--
                              ``(i) to waive or suspend this paragraph; or
                              ``(ii) to sustain an appeal of the ruling of
                          the Chair on a point of order raised under this
                          paragraph.
                ``(5) Motion nondebatable.--A motion to proceed to
            consideration of a disapproval bill under this subsection shall
            not be debatable. It shall not be in order to move to reconsider
            the vote by which the motion to proceed was adopted or rejected,
            although subsequent motions to proceed may be made under this
            paragraph.
                ``(6) Limit on consideration.--(A) After no more than 10
            hours of consideration of a disapproval bill, the Senate shall
            proceed, without intervening action or debate (except as
            permitted under paragraph (9)), to vote on the final disposition
            thereof to the exclusion of all amendments not then pending and
            to the exclusion of all motions, except a motion to reconsider
            or to table.

    [[Page 1170]]

                ``(B) A single motion to extend the time for consideration
            under subparagraph (A) for no more than an additional five hours
            is in order prior to the expiration of such time and shall be
            decided without debate.
                ``(C) The time for debate on the disapproval bill shall be
            equally divided between the Majority Leader and the Minority
            Leader or their designees.
                ``(7) Debate on amendments.--Debate on any amendment to a
            disapproval bill shall be limited to one hour, equally divided
            and controlled by the Senator proposing the amendment and the
            majority manager, unless the majority manager is in favor of the
            amendment, in which case the minority manager shall be in
            control of the time in opposition.
                ``(8) No motion to recommit.--A motion to recommit a
            disapproval bill shall not be in order.
                ``(9) Disposition of senate disapproval bill.--If the Senate
            has read for the third time a disapproval bill that originated
            in the Senate, then it shall be in order at any time thereafter
            to move to proceed to the consideration of a disapproval bill
            for the same special message received from the House of
            Representatives and placed on the Calendar pursuant to paragraph
            (2), strike all after the enacting clause, substitute the text
            of the Senate disapproval bill, agree to the Senate amendment,
            and vote on final disposition of the House disapproval bill, all
            without any intervening action or debate.
                ``(10) Consideration of house message.--Consideration in the
            Senate of all motions, amendments, or appeals necessary to
            dispose of a message from the House of Representatives on a
            disapproval bill shall be limited to not more than four hours.
            Debate on each motion or amendment shall be limited to 30
            minutes. Debate on any appeal or point of order that is
            submitted in connection with the disposition of the House
            message shall be limited to 20 minutes. Any time for debate
            shall be equally divided and controlled by the proponent and the
            majority manager, unless the majority manager is a proponent of
            the motion, amendment, appeal, or point of order, in which case
            the minority manager shall be in control of the time in
            opposition.

        ``(f) Consideration in Conference.--
                ``(1) Convening of conference.--In the case of disagreement
            between the two Houses of Congress with respect to a disapproval
            bill passed by both Houses, conferees should be promptly
            appointed and a conference promptly convened, if necessary.
                ``(2) House consideration.--(A) Notwithstanding any other
            rule of the House of Representatives, it shall be in order to
            consider the report of a committee of conference relating to a
            disapproval bill provided such report has been available for one
            calendar day (excluding Saturdays, Sundays, or legal holidays,
            unless the House is in session on such a day) and the
            accompanying statement shall have been filed in the House.
                ``(B) Debate in the House of Representatives on the
            conference report and any amendments in disagreement on any
            disapproval bill shall each be limited to not more than one hour
            equally divided and controlled by a proponent and an opponent. A
            motion to further limit debate is not debatable. A motion to
            recommit the conference report is not in order,

    [[Page 1171]]

            and it is not in order to move to reconsider the vote by which
            the conference report is agreed to or disagreed to.
                ``(3) Senate consideration.--Consideration in the Senate of
            the conference report and any amendments in disagreement on a
            disapproval bill shall be limited to not more than four hours
            equally divided and controlled by the Majority Leader and the
            Minority Leader or their designees. A motion to recommit the
            conference report is not in order.
                ``(4) Limits on scope.--(A) When a disagreement to an
            amendment in the nature of a substitute has been referred to a
            conference, the conferees shall report those cancellations that
            were included in both the bill and the amendment, and may report
            a cancellation included in either the bill or the amendment, but
            shall not include any other matter.
                ``(B) When a disagreement on an amendment or amendments of
            one House to the disapproval bill of the other House has been
            referred to a committee of conference, the conferees shall
            report those cancellations upon which both Houses agree and may
            report any or all of those cancellations upon which there is
                  disagreement, but shall not include any other matter.

        ``Sec. 1026. <>  As used in this part:
                ``(1) Appropriation law.--The term `appropriation law' means
            an Act referred to in section 105 of title 1, United States
            Code, including any general or special appropriation Act, or any
            Act making supplemental, deficiency, or continuing
            appropriations, that has been signed into law pursuant to
            Article I, section 7, of the Constitution of the United States.
                ``(2) Calendar day.--The term `calendar day' means a
            standard 24-hour period beginning at midnight.
                ``(3) Calendar days of session.--The term `calendar days of
            session' shall mean only those days on which both Houses of
            Congress are in session.
                ``(4) Cancel.--The term `cancel' or `cancellation' means--
                        ``(A) with respect to any dollar amount of
                    discretionary budget authority, to rescind;
                        ``(B) with respect to any item of new direct
                    spending--
                              ``(i) that is budget authority provided by law
                          (other than an appropriation law), to prevent such
                          budget authority from having legal force or
                          effect;
                              ``(ii) that is entitlement authority, to
                          prevent the specific legal obligation of the
                          United States from having legal force or effect;
                          or
                              ``(iii) through the food stamp program, to
                          prevent the specific provision of law that results
                          in an increase in budget authority or outlays for
                          that program from having legal force or effect;
                          and
                        ``(C) with respect to a limited tax benefit, to
                    prevent the specific provision of law that provides such
                    benefit from having legal force or effect.
                ``(5) Direct spending.--The term `direct spending' means--
                        ``(A) budget authority provided by law (other than
                    an appropriation law);
                        ``(B) entitlement authority; and
                        ``(C) the food stamp program.

    [[Page 1172]]

                ``(6) Disapproval bill.--The term `disapproval bill' means a
            bill or joint resolution which only disapproves one or more
            cancellations of dollar amounts of discretionary budget
            authority, items of new direct spending, or limited tax benefits
            in a special message transmitted by the President under this
            part and--
                        ``(A) the title of which is as follows: `A bill
                    disapproving the cancellations transmitted by the
                    President on ________', the blank space being filled in
                    with the date of transmission of the relevant special
                    message and the public law number to which the message
                    relates;
                        ``(B) which does not have a preamble; and
                        ``(C) which provides only the following after the
                    enacting clause: `That Congress disapproves of
                    cancellations ________', the blank space being filled in
                    with a list by reference number of one or more
                    cancellations contained in the President's special
                    message, `as transmitted by the President in a special
                    message on ________', the blank space being filled in
                    with the appropriate date, `regarding ________.', the
                    blank space being filled in with the public law number
                    to which the special message relates.
                ``(7) Dollar amount of discretionary budget authority.--(A)
            Except as provided in subparagraph (B), the term `dollar amount
            of discretionary budget authority' means the entire dollar
            amount of budget authority--
                        ``(i) specified in an appropriation law, or the
                    entire dollar amount of budget authority required to be
                    allocated by a specific proviso in an appropriation law
                    for which a specific dollar figure was not included;
                        ``(ii) represented separately in any table, chart,
                    or explanatory text included in the statement of
                    managers or the governing committee report accompanying
                    such law;
                        ``(iii) required to be allocated for a specific
                    program, project, or activity in a law (other than an
                    appropriation law) that mandates the expenditure of
                    budget authority from accounts, programs, projects, or
                    activities for which budget authority is provided in an
                    appropriation law;
                        ``(iv) represented by the product of the estimated
                    procurement cost and the total quantity of items
                    specified in an appropriation law or included in the
                    statement of managers or the governing committee report
                    accompanying such law; and
                        ``(v) represented by the product of the estimated
                    procurement cost and the total quantity of items
                    required to be provided in a law (other than an
                    appropriation law) that mandates the expenditure of
                    budget authority from accounts, programs, projects, or
                    activities for which budget authority is provided in an
                    appropriation law.
                ``(B) The term `dollar amount of discretionary budget
            authority' does not include--
                        ``(i) direct spending;
                        ``(ii) budget authority in an appropriation law
                    which funds direct spending provided for in other law;
                        ``(iii) any existing budget authority rescinded or
                    canceled in an appropriation law; or
                        ``(iv) any restriction, condition, or limitation in
                    an appropriation law or the accompanying statement of
                    man-

    [[Page 1173]]

                    agers or committee reports on the expenditure of budget
                    authority for an account, program, project, or activity,
                    or on activities involving such expenditure.
                ``(8) Item of new direct spending.--The term `item of new
            direct spending' means any specific provision of law that is
            estimated to result in an increase in budget authority or
            outlays for direct spending relative to the most recent levels
            calculated pursuant to section 257 of the Balanced Budget and
            Emergency Deficit Control Act of 1985.
                ``(9) Limited tax benefit.--(A) The term `limited tax
            benefit' means--
                        ``(i) any revenue-losing provision which provides a
                    Federal tax deduction, credit, exclusion, or preference
                    to 100 or fewer beneficiaries under the Internal Revenue
                    Code of 1986 in any fiscal year for which the provision
                    is in effect; and
                        ``(ii) any Federal tax provision which provides
                    temporary or permanent transitional relief for 10 or
                    fewer beneficiaries in any fiscal year from a change to
                    the Internal Revenue Code of 1986.
                ``(B) A provision shall not be treated as described in
            subparagraph (A)(i) if the effect of that provision is that--
                        ``(i) all persons in the same industry or engaged in
                    the same type of activity receive the same treatment;
                        ``(ii) all persons owning the same type of property,
                    or issuing the same type of investment, receive the same
                    treatment; or
                        ``(iii) any difference in the treatment of persons
                    is based solely on--
                              ``(I) in the case of businesses and
                          associations, the size or form of the business or
                          association involved;
                              ``(II) in the case of individuals, general
                          demographic conditions, such as income, marital
                          status, number of dependents, or tax return filing
                          status;
                              ``(III) the amount involved; or
                              ``(IV) a generally-available election under
                          the Internal Revenue Code of 1986.
                ``(C) A provision shall not be treated as described in
            subparagraph (A)(ii) if--
                        ``(i) it provides for the retention of prior law
                    with respect to all binding contracts or other legally
                    enforceable obligations in existence on a date
                    contemporaneous with congressional action specifying
                    such date; or
                        ``(ii) it is a technical correction to previously
                    enacted legislation that is estimated to have no revenue
                    effect.
                ``(D) For purposes of subparagraph (A)--
                        ``(i) all businesses and associations which are
                    related within the meaning of sections 707(b) and
                    1563(a) of the Internal Revenue Code of 1986 shall be
                    treated as a single beneficiary;
                        ``(ii) all qualified plans of an employer shall be
                    treated as a single beneficiary;
                        ``(iii) all holders of the same bond issue shall be
                    treated as a single beneficiary; and
                        ``(iv) if a corporation, partnership, association,
                    trust or estate is the beneficiary of a provision, the
                    shareholders of the corporation, the partners of the
                    partnership, the

    [[Page 1174]]

                    members of the association, or the beneficiaries of the
                    trust or estate shall not also be treated as
                    beneficiaries of such provision.
                ``(E) For purposes of this paragraph, the term `revenue-
            losing provision' means any provision which results in a
            reduction in Federal tax revenues for any one of the two
            following periods--
                        ``(i) the first fiscal year for which the provision
                    is effective; or
                        ``(ii) the period of the 5 fiscal years beginning
                    with the first fiscal year for which the provision is
                    effective.
                ``(F) The terms used in this paragraph shall have the same
            meaning as those terms have generally in the Internal Revenue
            Code of 1986, unless otherwise expressly provided.
                ``(10) OMB.--The term `OMB' means the Director of the Office
                                of Management and Budget.

        ``Sec. 1027. <>  (a) Statement by Joint Tax
    Committee.--The Joint Committee on Taxation shall review any revenue or
    reconciliation bill or joint resolution which includes any amendment to
    the Internal Revenue Code of 1986 that is being prepared for filing by a
    committee of conference of the two Houses, and shall identify whether
    such bill or joint resolution contains any limited tax benefits. The
    Joint Committee on Taxation shall provide to the committee of conference
    a statement identifying any such limited tax benefits or declaring that
    the bill or joint resolution does not contain any limited tax benefits.
    Any such statement shall be made available to any Member of Congress by
    the Joint Committee on Taxation immediately upon request.

        ``(b) Statement Included in Legislation.--(1) Notwithstanding any
    other rule of the House of Representatives or any rule or precedent of
    the Senate, any revenue or reconciliation bill or joint resolution which
    includes any amendment to the Internal Revenue Code of 1986 reported by
    a committee of conference of the two Houses may include, as a separate
    section of such bill or joint resolution, the information contained in
    the statement of the Joint Committee on Taxation, but only in the manner
    set forth in paragraph (2).
        ``(2) <>  The separate section permitted under
    paragraph (1) shall read as follows: `Section 1021(a)(3) of the
    Congressional Budget and Impoundment Control Act of 1974 shall ________
    apply to ____________.', with the blank spaces being filled in with--
                ``(A) in any case in which the Joint Committee on Taxation
            identifies limited tax benefits in the statement required under
            subsection (a), the word `only' in the first blank space and a
            list of all of the specific provisions of the bill or joint
            resolution identified by the Joint Committee on Taxation in such
            statement in the second blank space; or
                ``(B) in any case in which the Joint Committee on Taxation
            declares that there are no limited tax benefits in the statement
            required under subsection (a), the word `not' in the first blank
            space and the phrase `any provision of this Act' in the second
            blank space.

        ``(c) President's Authority.--If any revenue or reconciliation bill
    or joint resolution is signed into law pursuant to Article I, section 7,
    of the Constitution of the United States--

    [[Page 1175]]

                ``(1) with a separate section described in subsection
            (b)(2), then the President may use the authority granted in
            section 1021(a)(3) only to cancel any limited tax benefit in
            that law, if any, identified in such separate section; or
                ``(2) without a separate section described in subsection
            (b)(2), then the President may use the authority granted in
            section 1021(a)(3) to cancel any limited tax benefit in that law
            that meets the definition in section 1026.

        ``(d) Congressional Identifications of Limited Tax Benefits.--There
    shall be no judicial review of the congressional identification under
    subsections (a) and (b) of a limited tax benefit in a conference
    report.''.

    SEC. 3. <>  JUDICIAL REVIEW.

        (a) Expedited Review.--
                (1) Any Member of Congress or any individual adversely
            affected by part C of title X of the Congressional Budget and
            Impoundment Control Act of 1974 may bring an action, in the
            United States District Court for the District of Columbia, for
            declaratory judgment and injunctive relief on the ground that
            any provision of this part violates the Constitution.
                (2) A copy of any complaint in an action brought under
            paragraph (1) shall be promptly delivered to the Secretary of
            the Senate and the Clerk of the House of Representatives, and
            each House of Congress shall have the right to intervene in such
            action.
                (3) Nothing in this section or in any other law shall
            infringe upon the right of the House of Representatives to
            intervene in an action brought under paragraph (1) without the
            necessity of adopting a resolution to authorize such
            intervention.

        (b) Appeal to Supreme Court.--Notwithstanding any other provision of
    law, any order of the United States District Court for the District of
    Columbia which is issued pursuant to an action brought under paragraph
    (1) of subsection (a) shall be reviewable by appeal directly to the
    Supreme Court of the United States. Any such appeal shall be taken by a
    notice of appeal filed within 10 calendar days after such order is
    entered; and the jurisdictional statement shall be filed within 30
    calendar days after such order is entered. No stay of an order issued
    pursuant to an action brought under paragraph (1) of subsection (a)
    shall be issued by a single Justice of the Supreme Court.
        (c) Expedited Consideration.--It shall be the duty of the District
    Court for the District of Columbia and the Supreme Court of the United
    States to advance on the docket and to expedite to the greatest possible
    extent the disposition of any matter brought under subsection (a).

    SEC. 4. CONFORMING AMENDMENTS.

        (a) Short Titles.--Section 1(a) of the Congressional Budget and
    Impoundment Control Act of 1974 <>  is amended
    by--
                (1) striking ``and'' before ``title X'' and inserting a
            period;
                (2) inserting ``Parts A and B of'' before ``title X''; and
                (3) inserting at the end the following new sentence: ``Part
            C of title X may be cited as the `Line Item Veto Act of
            1996'.''.

        (b) Table of Contents.--The table of contents set forth in section
    1(b) of the Congressional Budget and Impoundment Control Act of
    1974 <>  is amended by adding at the end the
    following:

    [[Page 1176]]

                            ``Part C--Line Item Veto

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

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

    SEC. 5. <>  EFFECTIVE DATES.

        This Act and the amendments made by it shall take effect and apply
    to measures enacted on the earlier of--
                (1) the day after the enactment into law, pursuant to
            Article I, section 7, of the Constitution of the United States,
            of an Act entitled ``An Act to provide for a seven-year plan for
            deficit reduction and achieve a balanced Federal budget.''; or
                (2) January 1, 1997;

    and shall have no force or effect on or after January 1, 2005.

        Approved April 9, 1996.

    LEGISLATIVE HISTORY--S. 4 (H.R. 2):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 104-11, Pt. 1 (Comm. on Rules) and Pt. 2 (Comm. on
    Government Reform and Oversight) both accompanying H.R. 2, and 104-491
    (Comm. of Conference).
    SENATE REPORTS: Nos. 104-9 (Comm. on the Budget) and 104-13 (Comm. on
    Governmental Affairs).
    CONGRESSIONAL RECORD:
                                                            Vol. 141 (1995):
                                        Feb. 2, 3, 6, H.R. 2 considered and
                                            passed House.
                                        Mar. 20-23, S. 4 considered and
                                            passed Senate.
                                        May 17, considered and passed House,
                                            amended, in lieu of H.R. 2.
                                                            Vol. 142 (1996):
                                        Mar. 27, Senate agreed to conference
                                            report.
                                        Mar. 28, House agreed to conference
                                            report pursuant to H. Res. 391.

    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
                Apr. 9, Presidential remarks and statement.