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United States. Congress. Senate. Committee on the.

Legislative line-item veto proposals : hearing before the Committee on the Budget, United States Senate, One Hundred Third Congress, second session, October 5, 1994

. (page 117 of 133)


21 function and subfunction;

22 "(3) information, data, and comparisons indi-

23 eating the manner in which, and the basis on which,

24 the committee determined each of the matters set

25 forth in the joint resolution, including information

26 on outlays for the current fiscal period and the deci-

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1 sions reached to set funding for the subsequent fis-

2 cal years;";

3 (3) inserting "and" after the semicolon in para-

4 gi-aph (7);

5 (4) striking paragraph (8); and

6 (5) redesignating paragraph (9) as paragraph

7 (8).

8 The technical amendments contained in sections

9 702(g) and 704(b) of this Act are intended to apply the

10 same prohibition against "baseline" budgeting to the

1 1 budgets prepared by the President and the Congressional

12 Budget Office reports to the Budget Committees.

1 3 SEC. 204. PRESroENTS BUDGET SUBMISSIONS.

14 On or before the fifteenth day after a joint resolution

15 on the budget is enacted, the President shall submit to

16 the Congress a detailed budget for the fiscal period begin-

17 ning on October 1 of the current calendar year, including

18 all summaries and explanations required under section

19 1105(a) of title 31, United States Code.



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1 TITLE III— ENFORCEMENT MECHANICS

2 Subtitle A — Superms^ority Required to Break

3 Budget Law

4 SEC. 301. TWO-THIRDS REQUIREMENT FOR ALL SPENDING

5 BILLS IN ABSENCE OF BUDGET LAW.

6 Unless and until a joint resolution on the budget is

7 enacted with respect to any major functional category for

8 a fiscal period, it shall not be in order in either the House

9 of Representatives or the Senate or any committee or sub-

10 committee thereof, to consider any spending bill affecting

1 1 spending in that category unless it is approved by the af-

12 firmative vote of two-thirds of the Members voting, a quo-

1 3 rum being present.

14 SEC. 302. TWO-THIRDS REQUIREMENT FOR OVERr-BUDGET

15 SPENDING BILLS.

16 (a) Determination of Budget Effect of All

17 Proposed Spending Bills. — The Congressional Budget

18 Office shall provide to either House of Congress (or the

19 appropriate committee, subcommittee, or conference

20 thereof) as soon as practicable after the introduction of

21 any spending bill, its estimate of the costs in each major

22 functional category attributable to that bill during the fis-

23 cal period in which it is to become effective and in each

24 of the next 4 fiscal years, together with the basis for such

25 estimate. The Congressional Budget Office report shall

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1 not be required, however, if the Congressional Budget Of-

2 fiee certifies that a spending bill will likely result in appli-

3 cable costs of less than $10,000,000. For purposes of esti-

4 mating the costs attributable to any spending bill that in-

5 eludes new credit authority, the report shall deem the mar-

6 ket value of any loan (if it were sold by the Federal Gov-

7 ernment) or the assumption cost of any guarantee (if it

8 were assumed at market rates) to be the costs attributable

9 to such loan or guarantee in the fiscal period in which

10 it is made.

11 (b) CBO Report Required Before Consider-

12 ATION OF Spending Bills. — It shall not be in order in

13 either the House of Representatives or the Senate, or in

14 any committee thereof, to consider any spending bill, un-

15 less and until the report referred to in subsection (a) has

16 been made available to that House of Congress or the ap-

17 propriate committee or subcommittee thereof.

18 (c) Two-Thirds Requirement for All Over-

19 Budget Spending Bills. — It shall not be in order in

20 either the House of Representatives or the Senate (or in

21 any committee, subcommittee, or conference) to consider

22 any spending bill for a fiscal period that the report re-

23 ferred to in subsection (a) indicates would in such fiscal

24 period exceed a budget ceiling, unless such bill is approved



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1 by the affirmative vote of two-thirds of the Members vot-

2 ing, a quorum being present.

3 (d) Determination of Spending in a Cat-

4 EGORY. — A spending bill shall be deemed to break a budg-

5 et ceiling if —

6 (1) its cost in any major functional category as

7 estimated in the report referred to in subsection (a);

8 and

9 (2) all other budget authority, budget outlays,

10 and entitlement authority, if any, in that major

1 1 functional category for the relevant fiscal period con-

12 tained in any previously enacted legislation for the

13 fiscal period; and

14 (3) to the extent that new budget authority or

15 entitlement authority for the relevant fiscal period

16 has not been granted (or modified from the level of

17 the previous fiscal period) in any other enacted legis-

18 lation for any program within such major functional

19 category, the amounts of budget authority and enti-

20 tlement authority for such major functional category

21 (or part thereof) for the previous fiscal period;

22 exceed the budget ceiling for such major fimctional cat-

23 egory.



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1 SEC. 303. TWO-THIRDS REQUIREMENT FOR WAIVER OF

2 THIS ACT.

3 No waiver of any provision of this Act, including the

4 calendar deadlines for completion of Congressional action

5 and the pro\isions concerning over-budget spending, shall

6 be effective unless approved by the affirmative vote of two-

7 thirds of the Members of the House of Representatives

8 or the Senate, as the case may be, a quorum being

9 present. No committee of either the House of Representa-

10 tives or the Senate shall have jurisdiction to report a rule

11 governing procedures for consideration of spending bills

12 covered by this Act, if such rule would violate the provi-

13 sions of this section. Nothing in this pro\ision shall be

14 deemed to require a supermajority vote to amend this Act.

15 Subtitle B — Line Item Reduction

16 SEC. 304. PRESIDENT'S AUTHORITY LIMITED TO SPENDING

17 ABOVE LIMITS OF CONGRESSIONAL BUDGET

18 LAW.

19 The Impoundment Control Act of 1974 (2 U.S.C.

20 681 et seq.) is amended by redesignating sections 1013

21 through 1017 as sections 1014 through 1018, respectively,

22 and inserting after section 1012 the following new section:

23 "presidential line-item reduction of spending

24 abo\^ limits of congressional budget law

25 "Sec 1013. (a) Transmittal of Speclu. Mes-

26 sage. — The President may transmit to both Houses of

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1 Confess for consideration in accordance with this section

2 one or more special messages detailing his use of line item

3 reduction authority to rescind (in whole or in part) items

4 of budget authority or entitlement authority sufficient to

5 ensure that the levels of budget authority, entitlement au-

6 thority, and outlays in a functional category do not exceed

7 the levels stated in the budget law for the applicable fiscal

8 period (or, in the absence of a budget law, do not exceed

9 such levels in the previous fiscal period).

10 "(b) Limitations. — For purposes of this section —

11 "(1) continuing appropriations made pursuant

12 to section 1311 of title 31, United States Code, shall

13 be treated as continuing appropriations for an entire

14 fiscal period; and

15 "(2) the levels of budget authority, entitlement

16 authority, and outlays shall be determined on the

17 basis of the reports made by the Congressional

18 Budget Office pursuant to section 202 of the Budget

19 Process Reform Act of 1990.

20 "(c) Contents of Special Message. — Each spe-

21 cial message transmitted under subsection (a) shall speci-

22 fv', with respect to each item of budget authority to be

23 resoinded under the President's line-item reduction au-

24 tiiority the matters referred to in paragraphs (1) through

25 (5) of section 1012(a).

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1 "(d) Requirement Not To Make Available for

2 Obligation. — ^Any item of budget authority to be re-

3 scinded as set forth in such special message shall not be

4 made available for obligation unless, within the prescribed

5 45-day period, Congress completes action on a bill dis-

6 approving the line-item reduction of the amount to be re-

7 scinded. Funds made available for obligation under this

8 procedure may not be included in a special message again.

9 "(e) Procedures. —

10 "(1)(A) Before the close of the third day begin-

11 ning after the day on which a special message to re-

12 scind an item of budget authority is transmitted to

13 the House of Representatives and the Senate under

14 subsection (a), a line-item reduction bill may be in-

15 troduced (by request) by the majority leader or mi-

16 nority leader of the House of the Congress in which

17 the appropriation Act providing the budget authority

18 originated to disapprove the line-item reduction set

19 forth in the special message. If such House is not

20 in session on the day on which a special message is

21 transmitted, the line-item reduction bill may be in-

22 troduced in such House, as provided in the preced-

23 ing sentence, on the first day thereafter on which

24 such House is in session.



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1 "(B) A line-item reduction bill introduced in the

2 House of Representatives or the Senate pursuant to

3 subparagraph (A) shall be referred to the Committee

4 on Appropriations of such House. The Committee

5 shall report the line-item reduction bill without sub-

6 stantive revision (and with or without recommenda-

7 tion) not later than 15 calendar days of continuous

8 session of the Congress after the date on which the

9 bill is introduced. A committee failing to report a

10 line-item reduction bill within the 15-day period re-

11 ferred to in the preceding sentence shall be auto-

12 matically discharged from consideration of the bill

13 and the bill shall be placed on the appropriate cal-

14 endar.

15 "(C) A vote on final passage of a line-item re-

16 duction bill introduced in a House of the Congress

17 pursuant to subparagraph (A) shall be taken on or

18 before the close of the 25th calendar day of continu-
1'9 ous session of the Congress after the date of the in-

20 troduction of the bill in such House. If the line-item

21 reduction bill is agreed to, the Clerk of the House

22 of Representatives (in the case of a bill agreed to in

23 the House of Representatives) or the Secretary of

24 the Senate (in the case of a bill agreed to in the

25 Senate) shall cause the bill to be engrossed, cer-

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1 tified, and transmitted to the other House of the

2 Congress on the same calendar day on which the bill

3 is agreed to.

4 "(2) (A) A line-item reduction bill transmitted

5 to the House of Representatives or the Senate pur-

6 suant to paragraph (1)(C) shall be referred to the

7 Committee on Appropriations of such House. The

8 committee shall report the line-item reduction bill

9 ^^^thout substantive revision (and vvith or \\ithout

10 recommendation) not later than 10 calendar days of

11 continuous session of the Congress after the bill is

12 transmitted to such House. A committee failing to

13 report the line-item reduction bill 'within the 10-day

14 period referred to in the preceding sentence shall be

15 automatically discharged from consideration of the

16 bill and the bill shall be placed upon the appropriate

17 calendar.

18 "(B) A vote on the final passage of a line-item

19 reduction bill transmitted to a Hou.se of the Con-

20 gress pursuant to paragraph (1)(C) shall be taken

21 on or before the close of the 10th calendar day of

22 continuous session of the Congress after the date on

23 which the bill is transmitted to such House. If the

24 line-item reduction bill is agreed to in such House,

25 the Clerk of the House of Representatives (in the



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1 case of a bill agreed to in the House of Representa-

2 tives) or the Secretary of the Senate (in the case of

3 a bill agreed to in the Senate) shall cause the en-

4 grossed bill to be returned to the House in which the

5 bill originated, together with a statement of the ac-

6 tion taken by the House acting under this para-

7 graph,

8 "(3) (A) A motion in the House of Representa-

9 tives to proceed to the consideration of a line-item

10 reduction bill under this section shall be highly privi-

1 1 leged and not debatable. An amendment to the mo-

12 tion shall not be in order, nor shall it be in order

13 to move to reconsider the vote by which the motion

14 is agreed to or disagreed to.

15 "(B) Debate in the House of Representatives

16 on a line-item reduction bill under this section shall

17 be limited to not more than 2 hours, which shall be

18 divided equally between those favoring and those op-

19 posing the bill. A motion further to limit debate

20 shall not be debatable and shall require an affirma-

21 five vote of two-thirds of the Members voting, a quo-

22 rum being present. It shall not be in order to move

23 to recommit a line-item reduction bill under this sec-

24 tion or to move to reconsider the vote by which the

25 line-item reduction bill is agreed to or disagreed to.

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1 "(C) All appeals from the decisions of the Chair

2 relating to the application of the Rules of the House

3 of Representatives to the procedure relating to a

4 line-item reduction bill under this section shall be

5 decided without debate.

6 "(D) Except to the extent specifically provided

7 in the preceding provisions of this subsection, con-

8 sideration of a line-item reduction bill under this

9 section shall be governed by the Rules of the House

10 of Representatives applicable to other bills in similar

1 1 circumstances.

12 "(4) (A) A motion in the Senate to proceed to

13 the consideration of a line-item reduction bill under

14 this section shall be privileged and not debatable. An

15 amendment to the motion shall not be in order, nor

16 shall it be in order to move to reconsider the vote

17 by wliich the motion is agreed to or disagreed to.

18 "(B) Debate in the Senate on a line-item reduc-

19 tion bill under this section, and all debatable mo-

20 tions and appeals in connection therewith, shall be

21 limited to not more than 2 hours. The time shall be

22 eciually divided between, and controlled by, the ma-

23 jority leader and the minority leader or their des-

24 - ighees.



\



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1 "(C) Debate in the Senate on any debatable

2 motion or appeal in connection with a Une-item re-

3 duction bill under this section shall be limited to not

4 more than 1 hour, to be equally divided between,

5 and controlled by, the mover and the manager of the

6 bill except that in the event the manager of the bill

7 is in favor of any such motion or appeal, the time

8 in opposition thereto shall be controlled by the mi-

9 nority leader or his designee. Such leaders, or either

10 of them, may, from time under their control on the

1 1 passage of a line-item reduction bill, allot additional

12 time to any Senator during the consideration of any

13 debatable motion or appeal.

14 "(D) A motion in the Senate to further limit

15 debate on a line-item reduction bill under this sec-

16 tion is not debatable. A motion to recommit a line-

17 item reduction bill under this section is not in order.

18 "(f) Amendments Prohibited. — No amendment to

19 a line-item reduction bill considered under this section

20 shall be in order in either the House of Representatives

21 or the Senate. No motion to suspend the application of

22 this subsection shall be in order in either House, nor shall

23 it be in order in either House for the presiding officer to

24 entertain a request to suspend the application of this sub-

25 section by unanimous consent.".

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1 SEC. 305. APPLICATION.

2 The amendments made by section 304 shall apply to

3 items of budget authority (as defined in subsection (g)(1)

4 of section 1013, as added by section 103(b) of this Act)

5 pro\ided by appropriation Acts (as defined in subsection

6 (g)(3) of such section) that become law after the date of

7 enactment of this Act.

8 Subtitle C— "Blank Check" Appropriations

9 Prohibited

10 SEC. 306. INTENT OF CONGRESS.

11 It is the intent of Congress, by this pro\nsion, to put

12 an end to open-ended, "blank check" appropriations,

13 which t\-i:»ically authorize the spending of "such sums as

14 may be necessary." By requiring explicit decisions con-

15 cei-ning the desired level of spending for each federal pro-

16 gTam (except Social Security and interest on the debt),

17 it is intended that currently uncontrolled programs \\ill be

18 brought within the discipline of an overall budget.

1 9 SEC. 307. FIXED-DOLLAR APPROPRIATIONS REQUIRED.

20 (a) FiXED-DoLi^R Appropriations. — For everj^ ae-

21 count except Social Security and interest on the debt,

22 even- ai)i)ropriation for a fiscal period for any program,

23 i)r()ject, or acti\ity (including claims, judgments, and relief

24 acts) shall be for a specific, fixed dollar amount. Any ap-

25 pi'ojM-iations of "such sums as may be necessaiy" (except

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1 with respect to the automatic continuing resolution pro-

2 vidcd for by section 401 of this Act) are hereby prohibited.

3 (b) Point of Order. — It shall not be in order in

4 either the House of Representatives or the Senate (or in

5 any committee, subcommittee, or conference) to consider

6 any appropriation that is in violation of subsection (a).

7 SEC. 308. AGENCY AUTHORITY TO ADJUST EXPENDITURES

8 TO APPROPRIATED AMOUNTS.

9 (a) The head of each Executive agency that admin-

10 isters any entitlement program is authorized to adjust

1 1 benefit levels and eligibility requirements, or both, with re-

12 spcct to the program such that aggregate outlays for a

13 fiscal period do not exceed the fixed-dollar appropriation

14 pro\ided pursuant to this title for such fiscal period. Such

15 adjustment shall be made by rule or, pending adoption of

16 appropriate rules, informal guideline. The purpose of any

17 such nile or guideline shall be to ensure that the fixed-

18 dollar appropriations for the program authorized by Con-

19 gi-ess are not exceeded.

20 (b) In the event that any claim or judgment against

21 the United States exceeds the amount available therefor,

22 the aggi'egate appropriations for claims, judgments, and

23 relief for the current fiscal period, then the excess shall

24 be paid first out of discretionary funds appropriated in

25 such fiscal year to the department or agency against which

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1 the jud^ient or claim is due, next out of unobligated

2 funds appropriated to that department or agency in such

3 fiscal year, and finally out of funds appropriated to that

4 department or agency for the next fiscal year. The obliga-

5 tion set forth herein of a department or agency to pay

6 such claims or judgments in excess of amounts authorized

7 therefor in applicable judgment, claim and relief acts shall

8 supei'sede all other budget requirements for that depart-

9 ment or agency, any other provision of law to the contrary

10 not\\'ithstanding.

11 SEC. 309. BUDGET AUTHORITY AND ENTITLEMENT AU-

12 THORITY MAY COVER ONLY A SINGLE FISCAL

13 PERIOD.

14 Chapter 13 of title 31, United States Code, is amend-

15 ed by inserting after section 1312 the following new see-

16 tion:

17 "§1313. Budget authority and entitlement authority

1 8 must cover single Hscal period

19 "(a) XotA\ith standing any other pro\ision of law and

20 exccjit as pro\ided by subsection (b), no budget authority

21 or entitlement authority —

22 "(1) enacted on or after the date of enactment

23 of this section shall be effective for more than one

24 fiscal period; or



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1 "(2) enacted before the date of enactment of

2 this section shall continue in effect beyond the end

3 of the first fiscal period beginning after the date of

4 enactment of this section.

5 "(b) Subsection (a) does not apply \\ith respect to

6 appropriations for the repayment of indebtedness incurred

7 under chapter 31 or benefits payable under the old-age,

8 sui-vivors, and disability insurance program established

9 under title II of the Social Security Act.".

10 Subtitle D— "Pay As You Go** Requirement for

1 1 New Spending

1 2 SEC. 310. SPENDING OFFSETS REQUIRED.

13 It shall not be in order in either the House of Rep-

14 resentatives or the Senate to consider any supplemental

15 appropriation measure, or any other bill, resolution, or

16 amendment which authorizes, requires, or provides new

17 entitlements/mandatorj^ spending as defined in section 3

18 (12) (A) of the Congressional Budget and Impoundment

19 Control Act of 1974, or which authorizes spending for a

20 fiscal period that the report referred to in section 302(a)

21 of this Act indicates would in such fiscal period exceed

22 a budget ceiling, unless any such increased spending called

23 for therein is offset fully in each such fiscal period in such

24 measure, bill, resolution or amendment by an equal

25 amount of reductions in existing spending.

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1 SEC. 311. TWO-THIRDS VOTE REQUmED TO WAIVE POINT

2 OF ORDER.

3 The point of order established by this subtitle may

4 be waived or suspended in the Senate or in the House of

5 Representatives, and an appeal of the ruling of the Chair

6 on a point of order raised under this section may be sus-

7 tained, only by the affirmative vote of two-thirds of the

8 Members voting, a quorum being present.

9 TITLE IV— SUSTAINING MECHANISM

10 SEC. 401. AUTOMATIC CONTINUING RESOLUTION.

11 Chapter 13 of title 31, United States Code, is amend-

12 ed by inserting after section 1310 the following new sec-

13 tion:

14 "§ 1311. Continuing appropriation

15 "(a) If for any account an appropriation for a fiscal

16 period does not become law before the beginning of such

17 fiscal period, there are hereby appropriated, out of any

18 moneys in the Treasur\^ not otherwise appropriated, and

19 out of applicable corporate or other revenues, receipts, and

20 funds, such sums as may be necessaiy to continue any

21 program, project, or activity provide for in the most recent

22 appropriation Act at a rate of operations not in excess of

23 the rate of operations provided for such program, project,

24 or activitv in such Act. In no case shall the total dollar*

25 amount of appropriations for any program, project or ac-

26 tivity pursuant to this section exceed the appropriation for

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1 such pro-am, project, or activity in the most recent ap-

2 propriation Act, determined on a fiscal-period basis.

3 "(b) Amounts appropriated pursuant to subsection

4 (a) for a pro-am, project, or activity shall be available

5 during a fiscal period until the earlier of —

6 "(1) the day on which the appropriation bill for

7 such fiscal period which would include the program,

8 project, or activity takes effect; or

9 "(2) the last day of such fiscal period.".

10 SEC. 402. CONTINGENCY REGULATIONS.

1 1 Chapter 13 of title 31, United States Code, is amend-

12 ed by inserting after section 1311 the follo\dng new sec-

13 tion:

14 "§ 1312. Contingency regulations

15 "(a) Notwithstanding any other provisions of law and

16 except as provided by subsection (b), the head of each Ex-

17 ecutive agency that administers any entitlement program

18 shall, by rule (or informal guideline, pending adoption of

19 appropriate rules), provide for the adjustments of benefit

20 levels or eligibility requirements, or both, with respect to

2 1 the program such that aggregate outlays for a fiscal period

22 do not exceed the fixed-dollar appropriation provided pur-

23 suant to section 307? (requiring fixed-dollar appropria-

24 tions) or section 401 (providing for an Automatic Continu-

25 ing Resolution) of this Act for such fiscal period.

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1 "(b) In the case of social safety net programs, the

2 rules shall provide each State the option of receiving an

3 aggregate amount for the fiscal period for such programs

4 equal to the amount it received for the preceding fiscal

5 period for such programs (in which case such State could,



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