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112th Congress                                          Rept. 112-364
                        HOUSE OF REPRESENTATIVES
 2d Session                                                 Part 2

======================================================================



 
    EXPEDITED LEGISLATIVE LINE-ITEM VETO AND RESCISSIONS ACT OF 2012

                                _______
                                

February 2, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Dreier, from the Committee on Rules, submitted the following

                              R E P O R T

                        [To accompany H.R. 3521]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Rules, to whom was referred the bill (H.R. 
3521) to amend the Congressional Budget and Impoundment Control 
Act of 1974 to provide for a legislative line-item veto to 
expedite consideration of rescissions, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                contents

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     6
Background and Need for Legislation..............................     6
Hearings.........................................................     7
Committee Consideration..........................................     7
Committee Votes..................................................     7
Committee Oversight Findings and Recommendations.................     7
Estimate of the Congressional Budget Office......................     7
Performance Goals and Objectives.................................     9
New Budget Authority, Entitlement Authority, and Tax Expenditures     9
Committee Cost Estimate..........................................     9
Federal Mandates Statement.......................................    10
Advisory Committee Statement.....................................    10
Applicability to the Legislative Branch..........................    10
Constitutional Authority Statement...............................    10
Statement Regarding Earmarks.....................................    10
Section-by-Section Analysis of the Legislation...................    10
Changes in House Rules Made by the Bill, as Reported.............    11
Changes in Existing Law Made by the Bill, as Reported............    11

                               Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Expedited Legislative Line-Item Veto 
and Rescissions Act of 2012''.

SEC. 2. CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS AND 
                    DEFERRALS OF BUDGET AUTHORITY AND OBLIGATION 
                    LIMITATIONS.

  Title X of the Congressional Budget and Impoundment Control Act of 
1974 (2 U.S.C. 621 et seq.) is amended by striking all of part B 
(except for sections 1015, 1016, and 1013, which are transferred and 
redesignated as sections 1017, 1018, and 1019, respectively) and part C 
and by inserting after part A the following:

   ``Part B--Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations

``congressional consideration of proposed rescissions and deferrals of 
              budget authority and obligation limitations
  ``Sec. 1011.  (a) Proposed Rescissions.--Within 45 days after the 
enactment of any bill or joint resolution providing any funding, the 
President may propose, in the manner provided in subsection (b), the 
rescission of all or part of any dollar amount of such funding.
  ``(b) Special Message.--If the President proposes that Congress 
rescind funding, the President shall transmit a special message to 
Congress containing the information specified in this subsection.
          ``(1) Packaging of requested rescissions.--For each piece of 
        legislation that provides funding, the President shall request 
        at most 2 packages of rescissions and the rescissions in each 
        package shall apply only to funding contained in that 
        legislation. The President shall not include the same 
        rescission in both packages.
          ``(2) Transmittal.--The President shall deliver each message 
        requesting a package of rescissions to the Secretary of the 
        Senate if the Senate is not in session and to the Clerk of the 
        House of Representatives if the House is not in session. The 
        President shall make a copy of the transmittal message publicly 
        available, and shall publish in the Federal Register a notice 
        of the message and information on how it can be obtained.
          ``(3) Contents of special message.--For each request to 
        rescind funding under this part, the transmittal message 
        shall--
                  ``(A) specify--
                          ``(i) the dollar amount to be rescinded;
                          ``(ii) the agency, bureau, and account from 
                        which the rescission shall occur;
                          ``(iii) the program, project, or activity 
                        within the account (if applicable) from which 
                        the rescission shall occur;
                          ``(iv) the amount of funding, if any, that 
                        would remain for the account, program, project, 
                        or activity if the rescission request is 
                        enacted;
                          ``(v) the reasons the President requests the 
                        rescission;
                          ``(vi) to the maximum extent practicable, the 
                        estimated fiscal, economic, and budgetary 
                        effect (including the effect on outlays and 
                        receipts in each fiscal year) of the proposed 
                        rescission;
                          ``(vii) to the maximum extent practicable, 
                        all facts, circumstances, and considerations 
                        relating to or bearing upon the proposed 
                        rescission and the decision to propose the 
                        rescission, and the estimated effect of the 
                        proposed rescission upon the objects, purposes, 
                        or programs; and
                          ``(viii) if a second special message is 
                        transmitted pursuant to paragraph (2), a 
                        detailed explanation of why the proposed 
                        rescissions are not substantially similar to 
                        any other proposed rescission in such other 
                        message; and
                  ``(B) designate each separate rescission request by 
                number; and include proposed legislative text of an 
                approval bill to accomplish the requested rescissions 
                which may not include--
                          ``(i) any changes in existing law, other than 
                        the rescission of funding; or
                          ``(ii) any supplemental appropriations, 
                        transfers, or reprogrammings.
         ``grants of and limitations on presidential authority
  ``Sec. 1012.  (a) Presidential Authority To Withhold Funding.--
Notwithstanding any other provision of law and if the President 
proposes a rescission of funding under this part, the President may, 
subject to the time limits provided in subsection (c), temporarily 
withhold that funding from obligation.
  ``(b) Withholding Available Only Once per Proposed Rescission.--
Except as provided in section 1019, the President may not invoke the 
authority to withhold funding granted by subsection (a) for any other 
purpose.
  ``(c) Time Limits.--The President shall make available for obligation 
any funding withheld under subsection (a) on the earliest of--
          ``(1) the day on which the President determines that the 
        continued withholding or reduction no longer advances the 
        purpose of legislative consideration of the approval bill;
          ``(2) the 45th day following the date of enactment of the 
        appropriations measure to which the approval bill relates; or
          ``(3) the last day that the President determines the 
        obligation of the funding in question can no longer be fully 
        accomplished in a prudent manner before its expiration.
  ``(d) Deficit Reduction.--
          ``(1) In general.--Funds that are rescinded under this part 
        shall be dedicated only to reducing the deficit or increasing 
        the surplus.
          ``(2) Adjustment of levels in the concurrent resolution on 
        the budget.--Not later than 5 days after the date of enactment 
        of an approval bill as provided under this part, the chairs of 
        the Committees on the Budget of the Senate and the House of 
        Representatives shall revise allocations and aggregates and 
        other appropriate levels under the appropriate concurrent 
        resolution on the budget to reflect the rescissions, and the 
        Committees on Appropriations of the House of Representatives 
        and the Senate shall report revised suballocations pursuant to 
        section 302(b) of title III, as appropriate.
          ``(3) Adjustments to statutory limits.--After enactment of an 
        approval bill provided under this section, the President shall 
        revise downward by the amount of the rescissions applicable 
        limits under the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
                ``procedures for expedited consideration
  ``Sec. 1013.  (a) Expedited Consideration.--
          ``(1) Introduction of approval bill.--The majority leader of 
        each House or a designee shall (by request) introduce an 
        approval bill as defined in section 1015 not later than the 
        fifth day of session of that House after the date of receipt of 
        a special message transmitted to the Congress under section 
        1011(b).
          ``(2) Consideration in the house of representatives.--
                  ``(A) Referral and reporting.--Any committee of the 
                House of Representatives to which an approval bill is 
                referred shall report it to the House without amendment 
                not later than the fifth legislative day after the date 
                of its introduction. If a committee fails to report the 
                bill within that period or the House has adopted a 
                concurrent resolution providing for adjournment sine 
                die at the end of a Congress, such committee shall be 
                automatically discharged from further consideration of 
                the bill and it shall be placed on the appropriate 
                calendar.
                  ``(B) Proceeding to consideration.--Not later than 5 
                legislative days after the approval bill is reported or 
                a committee has been discharged from further 
                consideration thereof, it shall be in order to move to 
                proceed to consider the approval bill in the House. 
                Such a motion shall be in order only at a time 
                designated by the Speaker in the legislative schedule 
                within two legislative days after the day on which the 
                proponent announces an intention to the House to offer 
                the motion provided that such notice may not be given 
                until the approval bill is reported or a committee has 
                been discharged from further consideration thereof. 
                Such a motion shall not be in order after the House has 
                disposed of a motion to proceed with respect to that 
                special message. 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 disposed of shall not be in 
                order.
                  ``(C) Consideration.--If the motion to proceed is 
                agreed to, the House shall immediately proceed to 
                consider the approval bill in the House without 
                intervening motion. The approval bill shall be 
                considered as read. All points of order against the 
                approval bill and against its consideration are waived. 
                The previous question shall be considered as ordered on 
                the approval bill to its passage without intervening 
                motion except 2 hours of debate equally divided and 
                controlled by the proponent and an opponent and one 
                motion to limit debate on the bill. A motion to 
                reconsider the vote on passage of the approval bill 
                shall not be in order.
          ``(3) Consideration in the senate.--
                  ``(A) Referral.--The approval bill introduced in the 
                Senate shall be referred to the committees having 
                jurisdiction over the provisions of law contained in 
                the approval bill.
                  ``(B) Committee action.--Each committee of referral 
                of the Senate shall report without amendment the 
                approval bill referred to it under this subsection not 
                later than the fifth session day after introduction. If 
                a committee fails to report the approval bill within 
                that period or the Senate has adopted a concurrent 
                resolution providing for adjournment sine die at the 
                end of a Congress, the Committee shall be automatically 
                discharged from further consideration of the approval 
                bill and it shall be placed on the appropriate 
                calendar.
                  ``(C) Motion to proceed.--Not later than 5 session 
                days after the approval bill is reported in the Senate 
                or committees have been discharged thereof, it shall be 
                in order for any Senator to move to proceed to consider 
                the approval bill in the Senate. The motion shall be 
                decided without debate and the motion to reconsider 
                shall be deemed to have been laid on the table. Such a 
                motion shall not be in order after the Senate has 
                disposed of a prior motion to proceed with respect to 
                the approval bill.
                  ``(D) Consideration.--If a motion to proceed to the 
                consideration of the approval bill is agreed to, the 
                Senate shall immediately proceed to consideration of 
                the approval bill without intervening motion, order, or 
                other business, and the approval bill shall remain the 
                unfinished business of the Senate until disposed of. 
                Consideration on the bill in the Senate under this 
                subsection, and all debatable motions and appeals in 
                connection therewith, shall not exceed 10 hours. All 
                points of order against the approval bill or its 
                consideration are waived. Consideration in the Senate 
                on any debatable motion or appeal in connection with 
                the approval bill shall be limited to not more than 1 
                hour. A motion to postpone, or a motion to proceed to 
                the consideration of other business, or a motion to 
                recommit the approval bill is not in order. A motion to 
                reconsider the vote by which the approval bill is 
                agreed to or disagreed to is not in order.
          ``(4) Amendments prohibited.--No amendment to, or motion to 
        strike a provision from, an approval bill considered under this 
        section shall be in order in either the Senate or the House of 
        Representatives.
          ``(5) Coordination with action by other house.--
                  ``(A) In general.--If, before passing the approval 
                bill, one House receives from the other a bill--
                          ``(i) the approval bill of the other House 
                        shall not be referred to a committee; and
                          ``(ii) the procedure in the receiving House 
                        shall be the same as if no approval bill had 
                        been received from the other House until the 
                        vote on passage, when the bill received from 
                        the other House shall supplant the approval 
                        bill of the receiving House.
                  ``(B) This paragraph shall not apply to the House of 
                Representatives if the approval bill received from the 
                Senate is a revenue measure or an appropriation 
                measure.
  ``(b) Limitation.--Subsection (a) shall apply only to an approval 
bill introduced pursuant to subsection (a)(1).
  ``(c) CBO Estimate.--Upon receipt of a special message under section 
1101 proposing to rescind all or part of any dollar amount, CBO shall 
prepare and submit to the appropriate committees of the House of 
Representatives and the Senate an estimate of the reduction in budget 
authority which would result from the enactment of the proposed 
rescissions.
                       ``treatment of rescissions
  ``Sec. 1014. Rescissions proposed by the President under this part 
shall take effect only upon enactment of the applicable approval bill. 
If an approval bill is not enacted into law within 45 days from the 
enactment of the appropriation measure to which the approval bill 
relates, then the approval bill shall not be eligible for expedited 
consideration under the provisions of this Act.
                             ``definitions
  ``Sec. 1015. As used in this part:
          ``(1) Appropriation measure.--The term `appropriation 
        measure' 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 enacted into law 
        pursuant to article I, section 7, of the Constitution of the 
        United States.
          ``(2) Approval bill.--The term `approval bill' means a bill 
        which only approves rescissions of funding in a special message 
        transmitted by the President under this part and--
                  ``(A) the title of which is as follows: `A bill 
                approving the proposed rescissions 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; and
                  ``(B) which provides only the following after the 
                enacting clause: `That the Congress approves the 
                proposed rescissions ___', the blank space being filled 
                in with the list of the rescissions 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.
          ``(3) Day.--Except as used in section 1013, the term `day' 
        means a standard 24-hour period beginning at midnight and a 
        number of days shall be calculated by excluding Sundays, legal 
        holidays, and any day during which neither chamber of Congress 
        is in session.
          ``(4) Rescind or rescission.--The terms `rescind' or 
        `rescission' mean to permanently cancel or prevent budget 
        authority or outlays available under an obligation limit from 
        having legal force or effect.
          ``(5) Congressional budget office.--The term `CBO' means the 
        Director of the Congressional Budget Office.
          ``(6) Comptroller general.--The term `Comptroller General' 
        means the Comptroller General of the United States.
          ``(7) Deferral of budget authority.--The term `deferral of 
        budget authority' includes--
                  ``(A) withholding or delaying the obligations or 
                expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided for 
                projects or activities; or
                  ``(B) any other type of Executive action or inaction 
                which effectively precludes the obligation or 
                expenditure of budget authority, including authority to 
                obligate by contract in advance of appropriations as 
                specifically authorized by law.
          ``(8) Funding.--(A) Except as provided in subparagraph (B), 
        the term `funding' means all or part of the dollar amount of 
        budget authority or obligation limit--
                  ``(i) specified in an appropriation measure, or the 
                dollar amount of budget authority or obligation limit 
                required to be allocated by a specific proviso in an 
                appropriation measure 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; or
                  ``(iii) represented by the product of the estimated 
                procurement cost and the total quantity of items 
                specified in an appropriation measure or included in 
                the statement of managers or the governing committee 
                report accompanying such law.
          ``(B) The term `funding' does not include--
                  ``(i) direct spending;
                  ``(ii) budget authority in an appropriation measure 
                which funds direct spending provided for in other law;
                  ``(iii) any existing budget authority canceled in an 
                appropriation measure; or
                  ``(iv) any restriction or condition in an 
                appropriation measure or the accompanying statement of 
                managers or committee reports on the expenditure of 
                budget authority for an account, program, project, or 
                activity, or on activities involving such expenditure.
          ``(9) Withhold.--The terms `withhold' and `withholding' apply 
        to any executive action or inaction that precludes the 
        obligation of funding at a time when it would otherwise have 
        been available to an agency for obligation. The terms do not 
        include administrative or preparatory actions undertaken prior 
        to obligation in the normal course of implementing budget laws.
                              ``expiration
  ``Sec. 1016. On December 15, 2015, the amendments made by the 
Expedited Legislative Line-Item Veto and Rescissions Act of 2012 shall 
be replaced by the provisions of part B of the Impoundment Control Act 
of 1974 as in effect immediately before the date of enactment of the 
Expedited Legislative Line-Item Veto and Rescissions Act of 2012.''.

SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS.

  (a) Exercise of Rulemaking Powers.--Section 904 of the Congressional 
Budget Act of 1974 (2 U.S.C. 621 note) is amended--
          (1) in subsection (a), by striking ``1017'' and inserting 
        ``1013''; and
          (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``section 1013''.
  (b) Clerical Amendments.--(1) The last sentence of section 1(a) of 
the Congressional Budget and Impoundment Control Act of 1974 is amended 
to read as follows: ``Sections 1011 through 1016 of part B of title X 
may be cited as the `Expedited Legislative Line-Item Veto and 
Rescissions Act of 2012'.''.
  (2) Section 1017 of such Act (as redesignated) is amended by striking 
``section 1012 or 1013'' each place it appears and inserting ``section 
1011 or 1019'' and section 1018 (as redesignated) is amended by 
striking ``calendar'' and ``of continuous session''.
  (3) Section 1019(c) of such Act (as redesignated) is amended by 
striking ``1012'' and inserting ``1011''.
  (4) 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 striking the items relating to parts B and C (including all 
of the items relating to the sections therein) of title X and inserting 
the following:

   ``Part B--Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations

``Sec. 1011. Congressional consideration of proposed rescissions and 
deferrals of budget authority and obligation limitations.
``Sec. 1012. Grants of and limitations on presidential authority.
``Sec. 1013. Procedures for Expedited Consideration.
``Sec. 1014. Treatment of rescissions.
``Sec. 1015. Definitions.
``Sec. 1016. Expiration.''.

  (c) Effective Date.--The amendments made by this Act shall apply to 
funding as defined in section 1015(8) of the Congressional Budget Act 
and Impoundment Control of 1974 in any Act enacted after the date of 
enactment of this Act.

SEC. 4. APPROVAL MEASURES CONSIDERED.

  Section 314 of the Congressional Budget Act of 1974 is amended--
          (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f) and by inserting after subsection 
        (a) the following new subsection:
  ``(b) Adjustments for Rescissions.--(1) Whenever an approval bill 
passes the House of Representatives, the Committee on the Budget shall 
immediately reduce the applicable allocations under section 302(a) by 
the total amount of reductions in budget authority and in outlays 
resulting from such approval bill.
  ``(2) As used in this subsection, the term `approval bill' has the 
meaning given to such term in section 1015.''; and
          (2) in subsection (d) (as redesignated), by inserting ``or 
        (b)'' after ``subsection (a)''.

                          Purpose and Summary

    H.R. 3521 provides an opportunity for the executive branch 
to reexamine laws within 45 days after enactment for 
potentially wasteful or ill-advised spending. The legislation 
provides for consideration of presidential proposals for 
spending cuts under expedited procedures in the House and the 
Senate. The legislation allows the President to submit 
rescission proposals, but a new act of Congress, signed by the 
President, is required before rescissions can take effect.

                  Background and Need for Legislation

    The 111th Congress increased non-defense discretionary 
spending by nearly 25 percent--an 84 percent increase when 
including the stimulus bill. The President's Budget for Fiscal 
Year 2012 would have increased spending by $6.2 trillion over 
the House-passed budget resolution.
    The 112th Congress has reduced discretionary spending by 
$95 billion below fiscal year 2010 levels. These reductions in 
spending mark the first time in modern history that Congress 
has cut discretionary spending two years in a row.
    H.R. 3521 was introduced by Rep. Paul Ryan (R-WI), chairman 
of the Committee on the Budget, and Rep. Chris Van Hollen (D-
MD), the ranking minority member of the Committee on the 
Budget. The bill ensures that the President and Congress have 
additional tools to evaluate and cut Federal spending, which 
will help the government make better-informed decisions about 
national priorities. This bipartisan collaboration highlights 
the growing need and increasing public demand for reforms in 
Federal spending.

                                Hearings

    The Committee on Rules did not hold a hearing on this 
measure.
    The Committee on the Budget held two oversight hearings on 
the budget process. On September 21, 2011, they held a hearing 
entitled ``The Broken Budget Process: Perspectives From Former 
CBO Directors''; ``The Broken Budget Process: Perspectives From 
Budget Experts'' was held on September 22, 2011.

                        Committee Consideration

    The Committee on Rules met on January 31, 2012 in open 
session and ordered H.R. 3521 favorably reported to the House 
with an amendment by voice vote, a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in conjunction with reporting 
H.R. 3521 to the House. The bill, as amended, was ordered 
reported to the House with a favorable recommendation by voice 
vote, a quorum being present.
    The Committee also considered the following amendment:
    Amendment by Mr. Dreier, no. 1, revising the expedited 
procedures in the bill, was adopted by a voice vote.

            Committee Oversight Findings and Recommendations

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

              Estimate of the Congressional Budget Office

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, February 1, 2012.
Hon. David Dreier,
Chairman, Committee on Rules,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3521, the 
Expedited Line-Item Veto and Rescissions Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jared 
Brewster.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 3521--Expedited Line-Item Veto and Rescissions Act of 2011

    Summary: H.R. 3521 would establish an expedited procedure 
for considering Presidential proposals to rescind certain 
spending provisions in newly enacted legislation. CBO estimates 
that enacting H.R. 3521, by itself, would not have a 
significant impact on the federal budget. Any impact on the 
budget would depend on the extent of the President's use of the 
new cancellation procedure and on future Congressional actions. 
Enacting H.R. 3521 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    H.R. 3521 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no cost on state, local, or tribal 
governments.
    Estimated impact on the federal budget: The bill would 
establish a procedure for the President to propose cancelling 
specified discretionary funding and for Congressional 
consideration of such proposals. Under that procedure, which 
would be available until December 31, 2015, the President would 
transmit a special message to both houses of Congress 
specifying the project or government functions involved, the 
reasons for the proposed rescissions, and--to the extent 
practicable--the estimated fiscal, economic, and budgetary 
effect of the action. The Congress could then approve or 
disapprove the President's proposals in legislation. If 
approved, any such proposed cancellations would become law and 
the caps on discretionary budget authority would be reduced.
    Under H.R. 3521, the President could submit up to two 
special messages for each piece of legislation that provides 
funding, but could not include the same rescission in both 
messages. A message would have to be transmitted to Congress 
within 45 calendar days of enactment of the legislation 
containing the items proposed for cancellation. Within five 
session days of receiving a special message, the majority 
leaders of the House of Representatives and the Senate (or 
their designees) would be required to introduce a bill to 
approve the proposed cancellations; that approval bill would be 
considered under expedited procedures. H.R. 3521 also would 
amend the Congressional Budget Act to require that CBO prepare 
an estimate of savings in budget authority and outlays that 
would result from any proposed cancellations. Additionally, the 
President would be required to release discretionary budget 
authority proposed for cancellation within 45 days of the date 
of enactment of relevant appropriations act.
    The impact of H.R. 3521 on future legislation would depend 
on both the nature of such legislation and on the actions of 
the President and the Congress in implementing the expedited 
cancellation procedure in H.R. 3521. Therefore, this bill would 
not--by itself--have a significant impact on the federal 
budget. CBO estimates that any additional administrative costs 
for implementing H.R. 3521 would not be significant because 
both the executive branch and the Congress already carry out 
activities similar to those that would be involved in preparing 
and responding to Presidential budget proposals.
    Pay-as-you-go considerations: None.
    Intergovernmental and private sector impact: H.R. 3521 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no cost on state, local, or 
tribal governments.
    Previous CBO cost estimate: On December 16, 2011, CBO 
transmitted an estimate for H.R. 3521 as ordered reported by 
the House Committee on the Budget on December 15, 2011. The two 
versions of H.R. 3521 are similar and neither would have a 
significant impact on federal spending or revenues.
    Estimate prepared by: Federal Costs: Jared Brewster, Impact 
on State, Local, and Tribal Governments: Elizabeth Cove 
Delisle, Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The legislation will ensure that the President and Congress 
have additional tools to evaluate and cut Federal spending, 
which will help make better-informed decisions about national 
priorities.

           New Budget Authority, Entitlement Authority, and 
                            Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority of Congress to enact this legislation 
is provided by Article 1, section 5, clause 2 (relating to the 
right of each House of Congress to determine the rules of its 
proceedings), and section 9, clause 7 (relating to the 
prohibition on drawing money from the treasury, but in 
consequence of appropriations made by law).

                      Statement Regarding Earmarks

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that H.R. 3521 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 
9(e)(f) or (g) of rule XXI.

             Section-by-Section Analysis of the Legislation


Section 1. Short Title

    This section provides the short title for the bill, the 
``Expedited Legislative Line-Item Veto and Rescissions Act of 
2012''.

Sec. 2. Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations

    Section 2 amends title X of the Congressional Budget and 
Impoundment Control Act of 1974 by: (1) striking Part B (except 
for sections 1013, 1015, and 1016, which are redesignated as 
sections 1017, 1018, and 1019); (2) striking Part C; and (3) 
inserting the following new sections:
    Sec. 1011. Congressional Consideration of Proposed 
Rescissions and Deferrals of Budget Authority and Obligation 
Limitations.--This section establishes the time in which the 
President may propose rescissions of funding following the 
enactment of legislation. It also establishes the manner in 
which the proposals must be packaged, the method for 
transmitting the package to the Congress, and the contents of 
the special message.
    Sec. 1012. Grants of and Limitations on Presidential 
Authority.--This section provides the President with the 
authority to withhold funding from obligation, subject to time 
limits, to ensure that funds are available for cancellation 
upon enactment of an approval bill. It also mandates that any 
savings achieved through these procedures be used for reducing 
the deficit or increasing the surplus. This section also 
provides for necessary adjustments to levels in the concurrent 
resolution on the budget and statutory limits.
    Sec. 1013. Expedited Consideration.--This section provides 
for the introduction, referral, and consideration of an 
approval bill relating to a special message in the House and 
the Senate. This section prohibits amendments to an approval 
bill in the House or the Senate. It also provides for 
coordination with action by the other House and establishes 
that the expedited procedures prescribed in this section only 
apply to an approval bill introduced pursuant to this section. 
This section also establishes the procedures for the 
preparation and submission of CBO estimates relating to a 
special message.
    Sec. 1014. Treatment of Rescissions.--This section provides 
that a rescission proposed by the President will take effect 
only upon enactment of an approval bill relating to the 
proposal.
    Sec. 1015. Definitions.--This section defines the following 
terms: ``apropriation measure''; ``approval bill''; ``day''; 
``rescind or rescission''; ``Congressional Budget Office''; 
``Comptroller General''; ``deferral of budget authority''; 
``funding''; and ``withhold''.
    Sec. 1016. Expiration.--This section provides that 
authority provided by the bill expires on December 31, 2015.

Sec. 3. Technical and Conforming Amendments

    Section 3 makes technical and conforming changes relating 
to the title, table of contents, and designation of sections. 
This section also establishes that amendments made by this 
legislation are effective after the date of enactment.

Sec. 4. Approval Measures Considered

    Section 4 provides authority to make adjustments to the 
applicable allocations under section 302(a) for rescissions 
adopted by the House pending action by the Senate.

          Changes in House Rules Made by the Bill, as Reported

    In compliance with clause 3(g) of rule XIII of the Rules of 
the House of Representatives, the Committee finds that the 
legislation does not propose to repeal or amend a standing rule 
of the House.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

        CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974

                    SHORT TITLES; TABLE OF CONTENTS

  Section 1. (a) Short Titles.--This Act may be cited as the 
``Congressional Budget and Impoundment Control Act of 1974''. 
Titles I through IX may be cited as the ``Congressional Budget 
Act of 1974''. Parts A and B of title X may be cited as the 
``Impoundment Control Act of 1974''. [Part C of title X may be 
cited as the ``Line Item Veto Act of 1996''.] Sections 1011 
through 1016 of part B of title X may be cited as the 
``Expedited Legislative Line-Item Veto and Rescissions Act of 
2011''.
  (b) Table of Contents.--

Sec. 1. Short titles; table of contents.
     * * * * * * *

                      TITLE X--IMPOUNDMENT CONTROL

                       Part A--General Provisions

Sec. 1001. Disclaimer.
     * * * * * * *

     [Part B--Congressional Consideration of Proposed Rescissions, 
             Reservations, and Deferrals of Budget Authority

[Sec. 1011. Definitions.
[Sec. 1012. Rescission of budget authority.
[Sec. 1013. Proposed deferrals of budget authority.
[Sec. 1014. Transmission of messages; publication.
[Sec. 1015. Reports by Comptroller General.
[Sec. 1016. Suits by Comptroller General.
[Sec. 1017. Procedure in House and Senate.

                         [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.]

    Part B--Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations

Sec. 1011. Congressional consideration of proposed rescissions and 
          deferrals of budget authority and obligation limitations.
Sec. 1012. Grants of and limitations on presidential authority.
Sec. 1013. Procedures for expedited consideration.
Sec. 1014. Treatment of rescissions.
Sec. 1015. Definitions.
Sec. 1016. Expiration.
Sec. 1017. Reports by Comptroller General.
Sec. 1018. Suits by Comptroller General.
Sec. 1019. Proposed deferrals of budget authority.

           *       *       *       *       *       *       *


TITLE X--IMPOUNDMENT CONTROL

           *       *       *       *       *       *       *


     [Part B--Congressional Consideration of Proposed Rescissions, 
            Reservations, and Deferrals of Budget Authority

                              [DEFINITIONS

  [Sec. 1011. For purposes of this part--
          [(1) ``deferral of budget authority'' includes--
                  [(A) withholding or delaying the obligations 
                or expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided 
                for projects or activities; or
                  [(B) any other type of Executive action or 
                inaction which effectively precludes the 
                obligation or expenditure of budget authority, 
                including authority to obligate by contract in 
                advance of appropriations as specifically 
                authorized by law;
          [(2) ``Comptroller General'' means the Comptroller 
        General of the United States;
          [(3) ``rescission bill'' means a bill or joint 
        resolution which only recinds in whole or in part, 
        budget authority proposed to be rescinded in a special 
        message transmitted by the President under section 
        1012, and upon which the Congress completes action 
        before the end of the first period of 45 calendar days 
        of continuous session of the Congress after the date on 
        which the President's message is received by the 
        Congress;
          [(4) ``impoundment resolution'' means a resolution of 
        the House of Representatives or the Senate which only 
        expresses its disapproval of a proposed deferral of 
        budget authority set forth in a special message 
        transmitted by the President under section 1013; and
          [(5) continuity of a session of the Congress shall be 
        considered as broken only by an adjournment of the 
        Congress sine die, and the days on which either House 
        is not in session because of an adjournment of more 
        than 3 days to a day certain shall be excluded in the 
        computation of the 45-day period referred to in 
        paragraph (3) of this section and in section 1012, and 
        the 25-day periods referred to in sections 1016 and 
        1017(b)(1). If a special message is transmitted under 
        section 1012 during any Congress and the last session 
        of such Congress adjourns sine die before the 
        expiration of 45 calendar days of continuous session 
        (or a special message is so transmitted after the last 
        session of the Congress adjourns sine die), the message 
        shall be deemed to have been retransmitted on the first 
        day of the succeeding Congress and the 45-day period 
        referred to in paragraph (3) of this section and 
        section 1012 (with respect to such message) shall 
        commence on the day after such first day.

                    [RESCISSION OF BUDGET AUTHORITY

  [Sec. 1012. (a) Transmittal of Special Message.--Whenever the 
President determines that all or part of any budget authority 
will not be required to carry out the full objectives or scope 
of programs for which it is provided or that such budget 
authority should be rescinded for fiscal policy or other 
reasons (including the determination of authorized projects or 
activities for which budget authority has been provided), or 
whenever all or part of budget authority provided for only one 
fiscal year is to be reserved from obligation for such fiscal 
year, the President shall transmit to both Houses of Congress a 
special message specifying--
          [(1) the amount of budget authority which he proposes 
        to be rescinded or which is to be so reserved;
          [(2) any account, department, or establishment of the 
        Government to which such budget authority is available 
        for obligation, and the specific project or 
        governmental functions involved;
          [(3) the reasons why the budget authority should be 
        rescinded or is to be so reserved;
          [(4) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the proposed 
        rescission or of the reservation; and
          [(5) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed rescission or 
        the reservation and the decision to effect the proposed 
        rescission or the reservation, and to the maximum 
        extent practicable, the estimated effect of the 
        proposed rescission or the reservation upon the 
        objects, purposes, and programs for which the budget 
        authority is provided.
  [(b) Requirement To Make Available for Obligation.--Any 
amount of budget authority proposed to be rescinded or that is 
to be reserved as set forth in such special message shall be 
made available for obligation unless, within the prescribed 45-
day period, the Congress has completed action on a rescission 
bill rescinding all or part of the amount proposed to be 
rescinded or that is to be reserved. Funds made available for 
obligation under this procedure may not be proposed for 
rescission again.

                 [TRANSMISSION OF MESSAGES; PUBLICATION

  [Sec. 1014. (a) Delivery to House and Senate.--Each special 
message transmitted under section 1012 or 1013 shall be 
transmitted to the House of Representatives and the Senate on 
the same day, and shall be delivered to the Clerk of the House 
of Representatives if the House is not in session, and to the 
Secretary of the Senate if the Senate is not in session. Each 
special message so transmitted shall be referred to the 
appropriate committee of the House of Representatives and the 
Senate. Each such message shall be printed as a document of 
each House.
  [(b) Delivery to Comptroller General.--A copy of each special 
message transmitted under section 1012 or 1013 shall be 
transmitted to the Comptroller General on the same day it is 
transmitted to the House of Representatives and the Senate. In 
order to assist the Congress in the exercise of its functions 
under sections 1012 and 1013, the Comptroller General shall 
review each such message and inform the House of 
Representatives and the Senate as promptly as practicable with 
respect to__
          [(1) in the case of a special message transmitted 
        under section 1012, the facts surrounding the proposed 
        rescission or the reservation of budget authority 
        (including the probable effects thereof); and
          [(2) in the case of a special message transmitted 
        under section 1013, (A) the facts surrounding each 
        proposed deferral of budget authority (including the 
        probable effects thereof) and (B) whether or not (or to 
        what extent), in his judgment, such proposed deferral 
        is in accordance with existing statutory authority.
  [(c) Transmission of Supplementary Messages.--If any 
information contained in a special message transmitted under 
section 1012 or 1013 is subsequently revised, the President 
shall transmit to both Houses of Congress and the Comptroller 
General a supplementary message stating and explaining such 
revision. Any such supplementary message shall be delivered, 
referred, and printed as provided in subsection (a). The 
Comptroller General shall promptly notify the House of 
Representatives and the Senate of any change in the information 
submitted by him under subsection (b) which may be necessitated 
by such revision.
  [(d) Printing in Federal Register.--Any special message 
transmitted under section 1012 or 1013, and any supplementary 
message transmitted under subsection (c), shall be printed in 
the first issue of the Federal Register published after such 
transmittal.
  [(e) Cumulative Reports of Proposed Rescissions, 
Reservations, and Deferrals of Budget Authority.--
          [(1) The President shall submit a report to the House 
        of Representatives and the Senate, not later than the 
        10th day of each month during a fiscal year, listing 
        all budget authority for that fiscal year with respect 
        to which, as of the first day of such month--
                  [(A) he has transmitted a special message 
                under section 1012 with respect to a proposed 
                rescission or a reservation; and
                  [(B) he has transmitted a special message 
                under section 1013 proposing a deferral.
        Such report shall also contain, with respect to each 
        such proposed rescission or deferral, or each such 
        reservation, the information required to be submitted 
        in the special message with respect thereto under 
        section 1012 or 1013.
          [(2) Each report submitted under paragraph (1) shall 
        be printed in the first issue of the Federal Register 
        published after its submission.

                     [PROCEDURE IN HOUSE AND SENATE

  [Sec. 1017. (a) Referral.--Any rescission bill introduced 
with respect to a special message or impoundment resolution 
introduced with respect to a proposed deferral of budget 
authority shall be referred to the appropriate committee of the 
House of Representatives or the Senate, as the case may be.
  [(b) Discharge of Committee.--
          [(1) If the committee to which a rescission bill or 
        impoundment resolution has been referred has not 
        reported it at the end of 25 calendar days of 
        continuous session of the Congress after its 
        introduction, it is in order to move either to 
        discharge the committee from further consideration of 
        the bill or resolution or to discharge the committee 
        from further consideration of any other rescission bill 
        with respect to the same special message or impoundment 
        resolution with respect to the same proposed deferral, 
        as the case may be, which has been referred to the 
        committee.
          [(2) A motion to discharge may be made only by an 
        individual favoring the bill or resolution, may be made 
        only if supported by one-fifth of the Members of the 
        House involved (a quorum being present), and is highly 
        privileged in the House and privileged in the Senate 
        (except that it may not be made after the committee has 
        reported a bill or resolution with respect to the same 
        special message or the same proposed deferral, as the 
        case may be); and debate thereon shall be limited to 
        not more than 1 hour, the time to be divided in the 
        House equally between those favoring and those opposing 
        the bill or resolution, and to be divided in the Senate 
        equally between, and controlled by, the majority leader 
        and the minority leader or their designees. An 
        amendment to the motion is not in order, and it is not 
        in order to move to reconsider the vote by which the 
        motion is agreed to or disagreed to.
  [(c) Floor Consideration in the House.--
          [(1) When the committee of the House of 
        Representatives has reported, or has been discharged 
        from further consideration of a rescission bill or 
        impoundment resolution, it shall at any time thereafter 
        be in order (even though a previous motion to the same 
        effect has been disagreed to) to move to proceed to the 
        consideration of the bill or resolution. The motion 
        shall be highly privileged and not debatable. An 
        amendment to the motion shall not be in order, nor 
        shall it be in order to move to reconsider the vote by 
        which the motion is agreed to or disagreed to.
          [(2) Debate on a rescission bill or impoundment 
        resolution shall be limited to not more than 2 hours, 
        which shall be divided equally between those favoring 
        and those opposing the bill or resolution. A motion 
        further to limit debate shall not be debatable. In the 
        case of an impoundment resolution, no amendment to, or 
        motion to recommit, the resolution shall be in order. 
        It shall not be in order to move to reconsider the vote 
        by which a rescission bill or impoundment resolution is 
        agreed to or disagreed to.
          [(3) Motions to postpone, made with respect to the 
        consideration of a rescission bill or impoundment 
        resolution, and motions to proceed to the consideration 
        of other business, shall be decided without debate.
          [(4) All appeals from the decisions of the Chair 
        relating to the application of the Rules of the House 
        of Representatives to the procedure relating to any 
        rescission bill or impoundment resolution shall be 
        decided without debate.
          [(5) Except to the extent specifically provided in 
        the preceding provisions of this subsection, 
        consideration of any rescission bill or impoundment 
        resolution and amendments thereto (or any conference 
        report thereon) shall be governed by the Rules of the 
        House of Representatives applicable to other bills and 
        resolutions, amendments, and conference reports in 
        similar circumstances.
  [(d) Floor Consideration in the Senate.--
          [(1) Debate in the Senate on any rescission bill or 
        impoundment resolution, and all amendments thereto (in 
        the case of a rescission bill) and debatable motions 
        and appeals in connection therewith, shall be limited 
        to not more than 10 hours. The time shall be equally 
        divided between, and controlled by, the majority leader 
        and the minority leader or their designees.
          [(2) Debate in the Senate on any amendment to a 
        rescission bill shall be limited to 2 hours, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the bill. Debate on any amendment to 
        an amendment, to such a bill, and debate on any 
        debatable motion or appeal in connection with such a 
        bill or an impoundment resolution shall be limited to 1 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the bill or resolution, 
        except that in the event the manager of the bill or 
        resolution is in favor in any such amendment, motion, 
        or appeal, the time in opposition thereto, shall be 
        controlled by the minority leader or his designee. No 
        amendment that is not germane to the provisions of a 
        rescission bill shall be received. Such leaders, or 
        either of them, may, from the time under their control 
        on the passage of a rescission bill or impoundment 
        resolution, allot additional time to any Senator during 
        the consideration of any amendment, debatable motion, 
        or appeal.
          [(3) A motion to further limit debate is not 
        debatable. In the case of a rescission bill, a motion 
        to recommit (except a motion to recommit with 
        instructions to report back within a specified number 
        of days, not to exceed 3, not counting any day on which 
        the Senate is not in session) is not in order. Debate 
        on any such motion to recommit shall be limited to one 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the concurrent resolution. 
        In the case of an impoundment resolution, no amendment 
        or motion to recommit is in order.
          [(4) The conference report on any rescission bill 
        shall be in order in the Senate at any time after the 
        third day (excluding Saturdays, Sundays, and legal 
        holidays) following the day on which such a conference 
        report is reported and is available to Members of the 
        Senate. A motion to proceed to the consideration of the 
        conference report may be made even though a previous 
        motion to the same effect has been disagreed to.
          [(5) During the consideration in the Senate of the 
        conference report on any rescission bill, debate shall 
        be limited to 2 hours, to be equally divided between, 
        and controlled by, the majority leader and minority 
        leader or their designees. Debate on any debatable 
        motion or appeal related to the conference report shall 
        be limited to 30 minutes, to be equally divided 
        between, and controlled by, the mover and the manager 
        of the conference report.
          [(6) Should the conference report be defeated, debate 
        on any request for a new conference and the appointment 
        of conferees shall be limited to one hour, to be 
        equally divided, between, and controlled by, the 
        manager of the conference report and the minority 
        leader or his designee, and should any motion be made 
        to instruct the conferees before the conferees are 
        named, debate on such motion shall be limited to 30 
        minutes, to be equally divided between, and controlled 
        by, the mover and the manager of the conference report. 
        Debate on any amendment to any such instructions shall 
        be limited to 20 minutes, to be equally divided 
        between, and controlled by the mover and the manager of 
        the conference report. In all cases when the manager of 
        the conference report is in favor of any motion, 
        appeal, or amendment, the time in opposition shall be 
        under the control of the minority leader or his 
        designee.
          [(7) In any case in which there are amendments in 
        disagreement, time on each amendment shall be limited 
        to 30 minutes, to be equally divided between, and 
        controlled by, the manager of the conference report and 
        the minority leader or his designee. No amendment that 
        is not germane to the provisions of such amendments 
        shall be received.

                        [Part C--Line Item Veto

                       [LINE ITEM VETO AUTHORITY

  [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;
          [(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. (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 
                251(c) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 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 
        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.

               [CANCELLATION EFFECTIVE UNLESS DISAPPROVED

  [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.

                           [DEFICIT REDUCTION

  [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 251(c) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 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 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. (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).
  [(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.
  [(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.
          [(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, 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. 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.
          [(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; or
                  [(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 managers 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 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. (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--
          [(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.]

    Part B--Congressional Consideration of Proposed Rescissions and 
        Deferrals of Budget Authority and Obligation Limitations

 CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS AND DEFERRALS OF 
              BUDGET AUTHORITY AND OBLIGATION LIMITATIONS

  Sec. 1011. (a) Proposed Rescissions.--Within 45 days after 
the enactment of any bill or joint resolution providing any 
funding, the President may propose, in the manner provided in 
subsection (b), the rescission of all or part of any dollar 
amount of such funding.
  (b) Special Message.--If the President proposes that Congress 
rescind funding, the President shall transmit a special message 
to Congress containing the information specified in this 
subsection.
          (1) Packaging of requested rescissions.--For each 
        piece of legislation that provides funding, the 
        President shall request at most 2 packages of 
        rescissions and the rescissions in each package shall 
        apply only to funding contained in that legislation. 
        The President shall not include the same rescission in 
        both packages.
          (2) Transmittal.--The President shall deliver each 
        message requesting a package of rescissions to the 
        Secretary of the Senate if the Senate is not in session 
        and to the Clerk of the House of Representatives if the 
        House is not in session. The President shall make a 
        copy of the transmittal message publicly available, and 
        shall publish in the Federal Register a notice of the 
        message and information on how it can be obtained.
          (3) Contents of special message.--For each request to 
        rescind funding under this part, the transmittal 
        message shall--
                  (A) specify--
                          (i) the dollar amount to be 
                        rescinded;
                          (ii) the agency, bureau, and account 
                        from which the rescission shall occur;
                          (iii) the program, project, or 
                        activity within the account (if 
                        applicable) from which the rescission 
                        shall occur;
                          (iv) the amount of funding, if any, 
                        that would remain for the account, 
                        program, project, or activity if the 
                        rescission request is enacted;
                          (v) the reasons the President 
                        requests the rescission;
                          (vi) to the maximum extent 
                        practicable, the estimated fiscal, 
                        economic, and budgetary effect 
                        (including the effect on outlays and 
                        receipts in each fiscal year) of the 
                        proposed rescission;
                          (vii) to the maximum extent 
                        practicable, all facts, circumstances, 
                        and considerations relating to or 
                        bearing upon the proposed rescission 
                        and the decision to propose the 
                        rescission, and the estimated effect of 
                        the proposed rescission upon the 
                        objects, purposes, or programs; and
                          (viii) if a second special message is 
                        transmitted pursuant to paragraph (2), 
                        a detailed explanation of why the 
                        proposed rescissions are not 
                        substantially similar to any other 
                        proposed rescission in such other 
                        message; and
                  (B) designate each separate rescission 
                request by number; and include proposed 
                legislative text of an approval bill to 
                accomplish the requested rescissions which may 
                not include--
                          (i) any changes in existing law, 
                        other than the rescission of funding; 
                        or
                          (ii) any supplemental appropriations, 
                        transfers, or reprogrammings.

          GRANTS OF AND LIMITATIONS ON PRESIDENTIAL AUTHORITY

  Sec. 1012. (a) Presidential Authority To Withhold Funding.--
Notwithstanding any other provision of law and if the President 
proposes a rescission of funding under this part, the President 
may, subject to the time limits provided in subsection (c), 
temporarily withhold that funding from obligation.
  (b) Withholding Available Only Once Per Proposed 
Rescission.--Except as provided in section 1019, the President 
may not invoke the authority to withhold funding granted by 
subsection (a) for any other purpose.
  (c) Time Limits.--The President shall make available for 
obligation any funding withheld under subsection (a) on the 
earliest of--
          (1) the day on which the President determines that 
        the continued withholding or reduction no longer 
        advances the purpose of legislative consideration of 
        the approval bill;
          (2) the 45th day following the date of enactment of 
        the appropriations measure to which the approval bill 
        relates; or
          (3) the last day that the President determines the 
        obligation of the funding in question can no longer be 
        fully accomplished in a prudent manner before its 
        expiration.
  (d) Deficit Reduction.--
          (1) In general.--Funds that are rescinded under this 
        part shall be dedicated only to reducing the deficit or 
        increasing the surplus.
          (2) Adjustment of levels in the concurrent resolution 
        on the budget.--Not later than 5 days after the date of 
        enactment of an approval bill as provided under this 
        part, the chairs of the Committees on the Budget of the 
        Senate and the House of Representatives shall revise 
        allocations and aggregates and other appropriate levels 
        under the appropriate concurrent resolution on the 
        budget to reflect the rescissions, and the Committees 
        on Appropriations of the House of Representatives and 
        the Senate shall report revised suballocations pursuant 
        to section 302(b) of title III, as appropriate.
          (3) Adjustments to statutory limits.--After enactment 
        of an approval bill provided under this section, the 
        President shall revise downward by the amount of the 
        rescissions applicable limits under the Balanced Budget 
        and Emergency Deficit Control Act of 1985.

                 PROCEDURES FOR EXPEDITED CONSIDERATION

  Sec. 1013.  (a) Expedited Consideration.--
          (1) Introduction of approval bill.--The majority 
        leader of each House or a designee shall (by request) 
        introduce an approval bill as defined in section 1015 
        not later than the fifth day of session of that House 
        after the date of receipt of a special message 
        transmitted to the Congress under section 1011(b).
          (2) Consideration in the house of representatives.--
                  (A) Referral and reporting.--Any committee of 
                the House of Representatives to which an 
                approval bill is referred shall report it to 
                the House without amendment not later than the 
                fifth legislative day after the date of its 
                introduction. If a committee fails to report 
                the bill within that period or the House has 
                adopted a concurrent resolution providing for 
                adjournment sine die at the end of a Congress, 
                such committee shall be automatically 
                discharged from further consideration of the 
                bill and it shall be placed on the appropriate 
                calendar.
                  (B) Proceeding to consideration.--Not later 
                than 5 legislative days after the approval bill 
                is reported or a committee has been discharged 
                from further consideration thereof, it shall be 
                in order to move to proceed to consider the 
                approval bill in the House. Such a motion shall 
                be in order only at a time designated by the 
                Speaker in the legislative schedule within two 
                legislative days after the day on which the 
                proponent announces an intention to the House 
                to offer the motion provided that such notice 
                may not be given until the approval bill is 
                reported or a committee has been discharged 
                from further consideration thereof. Such a 
                motion shall not be in order after the House 
                has disposed of a motion to proceed with 
                respect to that special message. 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 disposed of shall not be in 
                order.
                  (C) Consideration.--If the motion to proceed 
                is agreed to, the House shall immediately 
                proceed to consider the approval bill in the 
                House without intervening motion. The approval 
                bill shall be considered as read. All points of 
                order against the approval bill and against its 
                consideration are waived. The previous question 
                shall be considered as ordered on the approval 
                bill to its passage without intervening motion 
                except 2 hours of debate equally divided and 
                controlled by the proponent and an opponent and 
                one motion to limit debate on the bill. A 
                motion to reconsider the vote on passage of the 
                approval bill shall not be in order.
          (3) Consideration in the senate.--
                  (A) Referral.--The approval bill introduced 
                in the Senate shall be referred to the 
                committees having jurisdiction over the 
                provisions of law contained in the approval 
                bill.
                  (B) Committee action.--Each committee of 
                referral of the Senate shall report without 
                amendment the approval bill referred to it 
                under this subsection not later than the fifth 
                session day after introduction. If a committee 
                fails to report the approval bill within that 
                period or the Senate has adopted a concurrent 
                resolution providing for adjournment sine die 
                at the end of a Congress, the Committee shall 
                be automatically discharged from further 
                consideration of the approval bill and it shall 
                be placed on the appropriate calendar.
                  (C) Motion to proceed.--Not later than 5 
                session days after the approval bill is 
                reported in the Senate or committees have been 
                discharged thereof, it shall be in order for 
                any Senator to move to proceed to consider the 
                approval bill in the Senate. The motion shall 
                be decided without debate and the motion to 
                reconsider shall be deemed to have been laid on 
                the table. Such a motion shall not be in order 
                after the Senate has disposed of a prior motion 
                to proceed with respect to the approval bill.
                  (D) Consideration.--If a motion to proceed to 
                the consideration of the approval bill is 
                agreed to, the Senate shall immediately proceed 
                to consideration of the approval bill without 
                intervening motion, order, or other business, 
                and the approval bill shall remain the 
                unfinished business of the Senate until 
                disposed of. Consideration on the bill in the 
                Senate under this subsection, and all debatable 
                motions and appeals in connection therewith, 
                shall not exceed 10 hours. All points of order 
                against the approval bill or its consideration 
                are waived. Consideration in the Senate on any 
                debatable motion or appeal in connection with 
                the approval bill shall be limited to not more 
                than 1 hour. A motion to postpone, or a motion 
                to proceed to the consideration of other 
                business, or a motion to recommit the approval 
                bill is not in order. A motion to reconsider 
                the vote by which the approval bill is agreed 
                to or disagreed to is not in order.
          (4) Amendments prohibited.--No amendment to, or 
        motion to strike a provision from, an approval bill 
        considered under this section shall be in order in 
        either the Senate or the House of Representatives.
          (5) Coordination with action by other house.--
                  (A) In general.--If, before passing the 
                approval bill, one House receives from the 
                other a bill--
                          (i) the approval bill of the other 
                        House shall not be referred to a 
                        committee; and
                          (ii) the procedure in the receiving 
                        House shall be the same as if no 
                        approval bill had been received from 
                        the other House until the vote on 
                        passage, when the bill received from 
                        the other House shall supplant the 
                        approval bill of the receiving House.
                  (B) This paragraph shall not apply to the 
                House of Representatives if the approval bill 
                received from the Senate is a revenue measure 
                or an appropriation measure.
  (b) Limitation.--Subsection (a) shall apply only to an 
approval bill introduced pursuant to subsection (a)(1).
  (c) CBO Estimate.--Upon receipt of a special message under 
section 1101 proposing to rescind all or part of any dollar 
amount, CBO shall prepare and submit to the appropriate 
committees of the House of Representatives and the Senate an 
estimate of the reduction in budget authority which would 
result from the enactment of the proposed recisions.

                        TREATMENT OF RESCISSIONS

  Sec. 1014. Rescissions proposed by the President under this 
part shall take effect only upon enactment of the applicable 
approval bill. If an approval bill is not enacted into law 
within 45 days from the enactment of the appropriation measure 
to which the approval bill relates, then the approval bill 
shall not be eligible for expedited consideration under the 
provisions of this Act.

                              DEFINITIONS

  Sec. 1015. As used in this part:
          (1) Appropriation measure.--The term ``appropriation 
        measure'' 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 enacted into law pursuant to article I, 
        section 7, of the Constitution of the United States.
          (2) Approval bill.--The term ``approval bill'' means 
        a bill which only approves rescissions of funding in a 
        special message transmitted by the President under this 
        part and--
                  (A) the title of which is as follows: ``A 
                bill approving the proposed rescissions 
                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; and
                  (B) which provides only the following after 
                the enacting clause: ``That the Congress 
                approves the proposed rescissions ___'', the 
                blank space being filled in with the list of 
                the rescissions 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.
          (3) Day.--Except as used in section 1013, the term 
        ``day'' means a standard 24-hour period beginning at 
        midnight and a number of days shall be calculated by 
        excluding Sundays, legal holidays, and any day during 
        which neither chamber of Congress is in session.
          (4) Rescind or rescission.--The terms ``rescind'' or 
        ``rescission'' mean to permanently cancel or prevent 
        budget authority or outlays available under an 
        obligation limit from having legal force or effect.
          (5) Congressional budget office.--The term ``CBO'' 
        means the Director of the Congressional Budget Office.
          (6) Comptroller general.--The term ``Comptroller 
        General'' means the Comptroller General of the United 
        States.
          (7) Deferral of budget authority.--The term 
        ``deferral of budget authority'' includes--
                  (A) withholding or delaying the obligations 
                or expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided 
                for projects or activities; or
                  (B) any other type of Executive action or 
                inaction which effectively precludes the 
                obligation or expenditure of budget authority, 
                including authority to obligate by contract in 
                advance of appropriations as specifically 
                authorized by law.
          (8) Funding.--(A) Except as provided in subparagraph 
        (B), the term ``funding'' means all or part of the 
        dollar amount of budget authority or obligation limit--
                  (i) specified in an appropriation measure, or 
                the dollar amount of budget authority or 
                obligation limit required to be allocated by a 
                specific proviso in an appropriation measure 
                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; or
                  (iii) represented by the product of the 
                estimated procurement cost and the total 
                quantity of items specified in an appropriation 
                measure or included in the statement of 
                managers or the governing committee report 
                accompanying such law.
          (B) The term ``funding'' does not include--
                  (i) direct spending;
                  (ii) budget authority in an appropriation 
                measure which funds direct spending provided 
                for in other law;
                  (iii) any existing budget authority canceled 
                in an appropriation measure; or
                  (iv) any restriction or condition in an 
                appropriation measure or the accompanying 
                statement of managers or committee reports on 
                the expenditure of budget authority for an 
                account, program, project, or activity, or on 
                activities involving such expenditure.
          (9) Withhold.--The terms ``withhold'' and 
        ``withholding'' apply to any executive action or 
        inaction that precludes the obligation of funding at a 
        time when it would otherwise have been available to an 
        agency for obligation. The terms do not include 
        administrative or preparatory actions undertaken prior 
        to obligation in the normal course of implementing 
        budget laws.

                               EXPIRATION

  Sec. 1016. On December 15, 2015, the amendments made by the 
Expedited Legislative Line-Item Veto and Rescissions Act of 
2012 shall be replaced by the provisions of part B of the 
Impoundment Control Act of 1974 as in effect immediately before 
the date of enactment of the Expedited Legislative Line-Item 
Veto and Rescissions Act of 2012.

                     REPORTS BY COMPTROLLER GENERAL

  Sec. [1015] 1017. (a) Failure To Transmit Special Message.--
If the Comptroller General finds that the President, the 
Director of the Office of Management and Budget, the head of 
any department or agency of the United States, or any other 
officer or employee of the United States--
          (1) is to establish a reserve or proposes to defer 
        budget authority with respect to which the President is 
        required to transmit a special message under [section 
        1012 or 1013] section 1011 or 1019; or
          (2) has ordered, permitted, or approved the 
        establishment of such a reserve or a deferral of budget 
        authority;
and that the President has failed to transmit a special message 
with respect to such reserve or deferral, the Comptroller 
General shall make a report on such reserve or deferral and any 
available information concerning it to both Houses of Congress. 
The provisions of this part shall apply with respect to such 
reserve or deferral in the same manner and with the same effect 
as if such report of the Comptroller General were a special 
message transmitted by the President under [section 1012 or 
1013] section 1011 or 1019, and, for purposes of this part, 
such report shall be considered a special message transmitted 
under [section 1012 or 1013] section 1011 or 1019.
  (b) Incorrect Classification of Special Message.--If the 
President has transmitted a special message to both Houses of 
Congress in accordance with [section 1012 or 1013] section 1011 
or 1019, and the Comptroller General believes that the 
President so transmitted the special message in accordance with 
one of those sections when the special message should have been 
transmitted in accordance with the other of those sections, the 
Comptroller General shall make a report to both Houses of the 
Congress setting forth his reasons.

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                      SUITS BY COMPTROLLER GENERAL

  Sec. [1016] 1018. If, under this title, budget authority is 
required to be made available for obligation and such budget 
authority is not made available for obligation, the Comptroller 
General is hereby expressly empowered, through attorneys of his 
own selection, to bring a civil action in the United States 
District Court for the District of Columbia to require such 
budget authority to be made available for obligation, and such 
court is hereby expressly empowered to enter in such civil 
action, against any department, agency, officer, or employee of 
the United States, any decree, judgment, or order, which may be 
necessary or appropriate to make such budget authority 
available for obligation. No civil action shall be brought by 
the Comptroller General under this section until the expiration 
of 25 [calendar] days [of continuous session] of the Congress 
following the date on which an explanatory statement by the 
Comptroller General of the circumstances giving rise to the 
action contemplated has been filed with the Speaker of the 
House of Representatives and the President of the Senate.

                 PROPOSED DEFERRALS OF BUDGET AUTHORITY

  Sec. [1013] 1019. (a) * * *

           *       *       *       *       *       *       *

  (c) Exception.--The provisions of this section do not apply 
to any budget authority proposed to be rescinded or that is to 
be reserved as set forth in a special message required to be 
transmitted under section [1012] 1011.

           *       *       *       *       *       *       *

                              ----------                              


CONGRESSIONAL BUDGET ACT OF 1974

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TITLE III--CONGRESSIONAL BUDGET PROCESS

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                              ADJUSTMENTS

  Sec. 314. (a) * * *
  (b) Adjustments for Rescissions.--(1) Whenever an approval 
bill passes the House of Representatives, the Committee on the 
Budget shall immediately reduce the applicable allocations 
under section 302(a) by the total amount of reductions in 
budget authority and in outlays resulting from such approval 
bill.
  (2) As used in this subsection, the term ``approval bill'' 
has the meaning given to such term in section 1015.
  [(b)] (c) Application of Adjustments.--The adjustments made 
pursuant to subsection (a) for legislation shall--
          (1) * * *

           *       *       *       *       *       *       *

  [(c)] (d) Reporting Revised Suballocations.--Following any 
adjustment made under subsection (a) or (b), the Committees on 
Appropriations of the Senate and the House of Representatives 
may report appropriately revised suballocations under section 
302(b) to carry out this section.
  [(d)] (e) Emergencies in the House of Representatives.--(1) * 
* *

           *       *       *       *       *       *       *

  [(e)] (f) Enforcement of Discretionary Spending Caps.--It 
shall not be in order in the House of Representatives or the 
Senate to consider any bill, joint resolution, amendment, 
motion, or conference report that would cause the discretionary 
spending limits as set forth in section 251 of the Balanced 
Budget and Emergency Deficit Control Act to be exceeded.

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TITLE IX--MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

           *       *       *       *       *       *       *


                     EXERCISE OF RULEMAKING POWERS

  Sec. 904. (a) The provisions of this title and of titles I, 
III, IV, and V and the provisions of sections 701, 703, and 
[1017] 1013 are enacted by the Congress--
          (1) * * *

           *       *       *       *       *       *       *

  (d) Appeals.--
          (1) Procedure.--Appeals in the Senate from the 
        decisions of the Chair relating to any provision of 
        title III or IV or [section 1017] section 1013 shall, 
        except as otherwise provided therein, be limited to 1 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the resolution, concurrent 
        resolution, reconciliation bill, or rescission bill, as 
        the case may be.

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