WikiLeaks Document Release http://wikileaks.org/wiki/CRS-RS22459 February 2, 2009 Congressional Research Service Report RS22459 Legislative Line Item Veto Act of 2006: Comparison of Three Versions Virginia A. McMurtry, Government and Finance Division June 19, 2006 Abstract. President George W. Bush has repeatedly called for granting line item veto authority to the President, and an Administration draft was sent to Congress on March 6, 2006. That bill, the Legislative Line Item Veto Act (LLIVA) of 2006, was introduced the following day as S. 2381 and H.R. 4890. This report compares features of H.R. 4890/S. 2381 as introduced, H.R. 4890 as approved by the House Budget and Rules Committees, and Title I of S. 3521(likewise titled LLIVA). Order Code RS22459 June 19, 2006 CRS Report for Congress Received through the CRS Web Legislative Line Item Veto Act of 2006: Comparison of Three Versions Virginia A. McMurtry Specialist in American National Government Government and Finance Division Summary http://wikileaks.org/wiki/CRS-RS22459 President George W. Bush has repeatedly called for granting line item veto authority to the President, and an Administration draft was sent to Congress on March 6, 2006. That bill, the Legislative Line Item Veto Act (LLIVA) of 2006, was introduced the following day as S. 2381 and H.R. 4890. This report compares features of H.R. 4890/S. 2381 as introduced, H.R. 4890 as approved by the House Budget and Rules Committees, and Title I of S. 3521(likewise titled LLIVA). This report will be updated as events may warrant. President George W. Bush has repeatedly called for granting line item veto authority to the President, and an Administration proposal was sent to Congress on March 6, 2006. That bill, the Legislative Line Item Veto Act (LLIVA) of 2006, was introduced the following day as S. 2381 and H.R. 4890. This report provides a comparative overview of some major features in three versions of the LLIVA: H.R. 4890/S. 2381 as introduced, H.R. 4890 as approved by the House Budget and Rules Committees (House substitute), and Title I of S. 3521, with provisions in the Line Item Veto Act of 1996 (P.L. 104-130).1 On June 14, 2006, the House Budget Committee held markup of H.R. 4890 and voted 24-9 to report the bill favorably, as amended. The next day the Rules Committee held markup and voted 8-4 to approve an amended version in effectively the same form as that approved by the Budget Committee. Meanwhile, on June 14, 2006, Senator Judd Gregg, the chair of the Senate Budget Committee, and others held a press conference to unveil the Stop Over-Spending Act, 1 The Line Item Veto Act of 1996 was held unconstitutional by the Supreme Court in 1998 (Clinton v. City of New York, 524 U.S. 417). For further background, see CRS Issue Brief IB89148, Item Veto and Expanded Impoundment Proposals, by Virginia A. McMurtry; and CRS Report RS22425, Legislative Line Item Veto Act and Other Expedited Rescission Bills: Brief Introduction, by Virginia A. McMurtry. Congressional Research Service ~ The Library of Congress CRS-2 which contains a modified version of the Legislative Line Item Veto Act in Title I, as well as other budget process reforms. On June 15, 2006, the bill was introduced as S. 3521. As indicated in the following table, there are some noteworthy differences among the versions. Some features in H.R. 4890/S. 2381 as introduced have been modified to lessen the President's flexibility. For example, the original bills had no deadline for submission of special rescission messages and no limit on the number of special messages. The House substitute would require submission of special messages within 45 calendar days of enactment of the law which contained the amounts/provisions proposed for cancellation, whereas S. 3521 would allow the submission of a special message up to one year following enactment. On the other hand, S. 3521 would limit the President to four special messages per calendar year, whereas the House substitute would set a limit of five special messages per act, or 10 for omnibus measures. With respect to these features, the House substitute would be more permissive in terms of total number of special messages, whereas the Senate bill would be more lenient in the timing of their submissions. The period for withholding of funds after submission of a special message is another http://wikileaks.org/wiki/CRS-RS22459 feature on which the bills differ. The LLIVA as introduced would allow the President to withhold funds for up to 180 calendar days despite any congressional action. S. 3521 would limit withholding to 45 calendar days, as would the House substitute. However, the House substitute version would allow the President a 45-day extension for a total withholding period of up to 90 days. In addition, the LLIVA as introduced included no sunset termination date, whereas the House substitute for H.R. 4890 provides that the expedited rescission authority would expire after six years (October 1, 2012), and S. 3521 stipulates termination after four years (December 31, 2010). Some changes in the House substitute and in S. 3521 may generate new concerns. Both versions appear to narrow the range of possible targeted tax benefits that may be proposed for cancellation. H.R. 4890/S. 2381 as introduced, along with provisions in P.L. 104-130, would cover revenue-losing measures affecting 100 or fewer beneficiaries. The House substitute for H.R. 4890 would apply only to a revenue-losing provision affecting a single beneficiary, whereas S. 3521 defines targeted tax benefits as affecting a particular or limited group of taxpayers. Also, S. 3521 and the 1996 act would have the Joint Committee on Taxation identify the targeted tax benefits; the House substitute would designate the Chairmen of the Ways and Means and Finance Committees, and H.R. 4890/S. 2381 as introduced would allow the President to do so by default. Another change in the House substitute version of interest is its relationship to the Impoundment Control Act of 1974 (known as ICA, Title X of P.L. 93-344). The version approved by the House committees would repeal the ICA, except for Section 1013 (deferral authority for the President) and Section 1016 (suits by the Comptroller General). H.R 4890/S. 2381, as introduced, and S. 3521 would amend Title X by striking Part C (Line Item Veto Act of 1996) and inserting the text of LLIVA of 2006. At issue is whether the framework for expedited rescissions in the LLIVA would augment, or replace, rescission authority accorded the President under the ICA, to propose rescissions at any time, but with the release of funds after 45 legislative days absent congressional approval. CRS-3 Table 1. Comparison of selected provisions in three versions of the Legislative Line Item Veto Act of 2006 and the Line Item Veto Act of 1996 H.R. 4890/S. 2381, H.R. 4890, S. 3521, Title I, P.L. 104-130 Nature of provision as introduced as approved by House Budget as introduced Line Item Veto Act of 1996 and Rules Committees Purpose of bill To give the President line item To provide for the expedited To provide for the expedited To enable the President and veto authority with respect to consideration of certain consideration of certain Congress to rescind wasteful appropriations, new direct proposed rescissions of budget proposed rescissions of budget spending in an expedited spending, and limited tax authority. authority. manner. http://wikileaks.org/wiki/CRS-RS22459 benefits. Relationship to Impoundment Added a new Part C to contain Title X amended by striking Part Title X amended by striking all Title X amended by striking Part Control Act (known as ICA, the Line Item Veto Act of 1996. C and inserting text of this act. of Part B (except for Sections C, and inserting text of this act. Title X of P.L. 93-344) 1013 and 1016, redesignated as Sections 1019 and 1020) and all of Part C, and inserting text of this act. Within five days (Sundays None. Within 45 days of enactment of Within one year of the date of Deadline for submission of excluded) after enactment of a law containing (1) the amount enactment of (1) any amount of special rescission or the law providing such amount, of discretionary budget discretionary budget authority, cancellation messages item, or tax benefit. authority, (2) the item of direct (2) item of direct spending, or spending, or (3) the targeted tax (3) targeted tax benefit. benefit. Scope of special message and For each law from which a Not addressed. Limit of five special messages Limit of four special messages draft bill cancellation is made, President for each regular act and 10 per calendar year. One may be may transmit a single message. messages for an omnibus budget submitted with President's reconciliation or appropriation budget and up to three at other measure. No restriction on times. No restriction on combining the three types of combining the three types of cancellations in the same cancellations in the same message. message. CRS-4 President may propose Yes, amounts in appropriations Yes, amounts in appropriations Yes, amounts in appropriations Yes, amounts in appropriations rescission of discretionary acts or represented separately in acts or represented separately in acts or represented separately in acts or represented separately in spending managers' statement, managers' statement, managers' statement, managers' statement, committee reports, et al. committee reports, et al. committee reports, et al. committee reports, et al. President may propose to Yes, may propose to rescind Yes, may modify or rescind any Yes, may propose to rescind Yes, may propose to rescind modify/rescind direct items of new direct spending, items of direct spending, new direct spending provisions new items of direct spending, (mandatory) spending including entitlement authority including entitlement authority that would result in spending meaning budget authority and the food stamp program. and the food stamp program. increases. Does not cover provided by law other than extension or reauthoriza- tion of appropriations acts, mandatory existing direct spending. spending provided in appropriations acts, and http://wikileaks.org/wiki/CRS-RS22459 entitlement authority. President may propose to cancel Yes, any revenue-losing Yes, any revenue-losing Yes, any revenue-losing Yes, any revenue-losing tax benefits provision affecting 100 or fewer provision affecting 100 or fewer provision affecting a single provision affecting a particular beneficiaries. Joint Committee beneficiaries, as identified by beneficiary. Chairmen of Ways or limited group of taxpayers. on Taxation to compile listing of the President. and Means and Finance Joint Committee on Taxation to applicable provisions. Committees to identify such identify such provisions. provisions. Seriatim rescissions possible No, because of three-day Yes, resubmission of same No, submission of duplicative President may resubmit a deadline for submitting rescission not addressed. proposals in messages is proposed cancellation one more message. prohibited. time under either Part B (ICA) or Part C (LLIVA). Introduction of bill approving or Cancellations remain in effect Chamber leadership to introduce Chamber leadership to introduce Chamber leadership to introduce disapproving requests unless disapproved by Congress. approval bill within two days of approval bill within two days of approval bill within two days of For disapproval bill to have fast- receiving message, or thereafter receiving message, or thereafter receiving message, or thereafter track procedures, must be any Member may introduce any Member may introduce any Member may introduce introduced within five calendar approval bill. approval bill. approval bill. days of session after receipt of the special message. CRS-5 Fast-track in committee Committee reports disapproval Committee reports approval bill Committee reports approval bill Committee reports approval bill bill by seventh day of session without substantive change by without amendment by seventh without revision by fifth day of after introduction, or bill is fifth day of session after legislative day after session after introduction of bill subject to discharge motion introduction or bill is introduction, or motion to or bill is automatically (House) or automatic discharge automatically discharged. discharge is in order. discharged. Includes provisions (Senate). for dealing with multiple referrals. Fast-track provisions for floor Yes, including one hour general Yes, debate on bill not to exceed Yes, debate on bill not to exceed Yes, debate on bill not to exceed action debate and one hour for four hours in House and 10 five hours in House and 10 four hours in House and 10 amendments in House, and 10 hours in Senate. Floor vote hours in Senate. hours in Senate. Floor vote hours total debate in Senate. must occur within 10 days after must occur within 10 days after http://wikileaks.org/wiki/CRS-RS22459 introduction of bill. introduction of bill. Amendments/motion to strike Amendments to strike a Amendments are prohibited in Amendments are prohibited in Amendments are prohibited in allowed cancellation number or insert a both chambers, and divisions are both chambers, and divisions are both chambers, and divisions are number allowed in Senate, or prohibited in the House. prohibited in the House. prohibited in the House. with support of 50 Members in House. Savings must be used for deficit Yes, if disapproval bill is not Yes, amounts rescinded shall be Yes, amounts rescinded shall be Yes, amounts rescinded shall be reduction enacted within 30 days of dedicated only to deficit dedicated only to deficit dedicated only to deficit session, 10 days later a lockbox reduction and not be used as an reduction and not be used as an reduction and not be used as an mechanism goes into effect to offset for other spending offset for other spending offset for other spending ensure that deficit reduction increases. Provisions for increases. Provisions for increases. Provisions for occurs. adjustment of committee adjustment of committee adjustment of committee allocations and budgetary caps. allocations and budgetary caps. allocations and budgetary caps. Abuse of Proposed Cancellation Not addressed. Not addressed. Sense of the Congress provision Not addressed. Authority that no President or other executive branch official should threaten to condition the inclusion or exclusion of any proposed cancellation under this act to any Member's vote in Congress. CRS-6 President may withhold Not an issue. Cancellations are Yes, for a period not to exceed Yes, for a period not to exceed Yes, for a period not to exceed spending permanent absent enactment of a 180 calendar days from the 45 calendar days from the 45 calendar days from receipt of disapproval bill. transmittal of the special transmittal of the special the special message, President message, President may message, President may may withhold discretionary withhold discretionary budget withhold discretionary budget budget authority, and suspend authority or execution of direct authority, or suspend execution execution of any item of direct spending proposed for of items of direct spending or spending or targeted tax benefit cancellation. targeted tax benefits proposed proposed for cancellation. for cancellation. The President may extend the period for another 45 days; such http://wikileaks.org/wiki/CRS-RS22459 supplemental message to be submitted between days 40 and 45 in the original period. Release of funds If disapproval bill is enacted, the President may make spending President may make spending President may make spending provision(s) that had been available for obligation or allow available for obligation or allow available for obligation or allow cancelled take effect as of the execution of the new direct execution of the new direct execution of the new direct date of the original law. spending earlier than specified if spending or targeted tax benefit spending earlier than specified if he determines that continuation earlier than specified if he he determines that continuation of the deferral or of the determines that continuation of of the deferral or of the suspension would not further the the deferral or of the suspension suspension would not further the purposes of this act. would not further the purposes purposes of this act. of this act. Sunset provision Yes, act provided for None specified. Yes, expires after six years Yes, expires after four years termination after eight years. (October 1, 2012). (December 31, 2010). [Overturned by Supreme Court after two years.]