[104th Congress Public Law 130]
[From the U.S. Government Printing Office]


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[DOCID: f:publ130.104]


[[Page 1199]]

                           LINE ITEM VETO ACT

[[Page 110 STAT. 1200]]

Public Law 104-130
104th Congress

                                 An Act


 
     To give the President line item veto authority with respect to 
 appropriations, <<NOTE: Apr. 9, 1996 -  [S. 4]>>  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, <<NOTE: Line Item Veto 
Act.>> 

SECTION 1. <<NOTE: 2 USC 681 note.>>  SHORT TITLE.

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

SEC. 2. LINE ITEM VETO AUTHORITY.

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

                        ``Part C--Line Item Veto

                       ``line item veto authority

    ``Sec. 1021. <<NOTE: 2 USC 691.>>  (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 110 STAT. 1201]]

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

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

                           ``special messages

    ``Sec. 1022 <<NOTE: Congress. 2 USC 691a.>> . (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 110 STAT. 1202]]

        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) <<NOTE: Federal Register, publication.>>  Any special 
        message transmitted under this part shall be printed in the 
        first issue of the Federal Register published after such 
        transmittal.

               ``cancellation effective unless disapproved

    ``Sec. 1023. <<NOTE: 2 USC 691b.>>  (a) In General.--The 
cancellation of any dollar amount of discretionary budget authority, 
item of new direct spending, or limited tax benefit shall take effect 
upon receipt in the House of Representatives and the Senate of the 
special message notifying the Congress of the cancellation. If a 
disapproval bill for such special message is enacted into law, then all 
cancellations disapproved in that law shall be null and void and any 
such dollar amount of discretionary budget authority, item of new direct 
spending, or limited tax benefit shall be effective as of the original 
date provided in the law to which the cancellation applied.

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

                           ``deficit reduction

    ``Sec. 1024. <<NOTE: 2 USC 691c.>>  (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 110 STAT. 1203]]

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

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

      ``expedited congressional consideration of disapproval bills

    ``Sec. 1025. <<NOTE: 2 USC 691d.>>  (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 110 STAT. 1204]]

    ``(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) <<NOTE: Reports.>>  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 110 STAT. 1205]]

    ``(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 110 STAT. 1206]]

            ``(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 110 STAT. 1207]]

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

                              ``definitions

    ``Sec. 1026. <<NOTE: 2 USC 691e.>>  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 110 STAT. 1208]]

            ``(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 110 STAT. 1209]]

                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 110 STAT. 1210]]

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

                ``identification of limited tax benefits

    ``Sec. 1027. <<NOTE: 2 USC 691f.>>  (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) <<NOTE: Applicability.>>  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 110 STAT. 1211]]

            ``(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. <<NOTE: 2 USC 692.>>  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 <<NOTE: 2 USC 621 note.>>  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 <<NOTE: 88 Stat. 297.>>  is amended by adding at the end the 
following:


[[Page 110 STAT. 1212]]



                        ``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 <<NOTE: 2 USC 621 note.>>  is amended 
by striking ``and 1017'' and inserting ``, 1017, 1025, and 1027''.

SEC. 5. <<NOTE: 2 USC 691 note.>>  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.

                                  <all>