Legislative Line Item Veto Act of 2006: Comparison of Three Versions

Legislative Line Item Veto Act of 2006: Comparison of Three Versions

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
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

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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
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.

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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.
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.

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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
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.

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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
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.

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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
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.]