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EXPEDITED RESCISSION AUTHORITY FOR THE \( PRESIDENT M.G ÎNG 74/7: R 31/9 FORE THE :xpedited Rescissioa Autlioritg for. . . ^ ^^^ NATIONAL SECURITY SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS HOUSE OP REPRESENTATIVES ONE HUNDRED THIRD CONGRESS FIRST SESSION ON H.R. 354 TO AMEND THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CON- TROL ACT OF 1974 TO PROVIDE FOR THE EXPEDITED CONSIDER- ATION OF CERTAIN PROPOSED RESCISSIONS OF BUDGET AUTHORITY H.R. 493 TO GIVE THE PRESIDENT LEGISLATIVE, LINE-ITEM VETO RESCISSION AUTHORITY OVER APPROPRIATION BILLS AND TARGETED TAX BENE- FITS IN REVENUE BILLS H.R. 1013 TO AMEND THE CONGRESSIONAL BUDGET CONTROL AND IMPOUND- MENT ACT OF 1974 TO ESTABLISH PROCEDURES FOR THE EXPEDITED CONSIDERATION BY THE CONGRESS OF CERTAIN PROPOSALS BY THE PRESIDENT TO RESCIND AMOUNTS OF BUDGET AUTHORITY MARCH 10, 1993 Printed for the use of the Committee on Government Operations m U.S. GOVERNMENT PRINTING OFFICE OCT 3 f 70-S52CC WASHINGTON : 1993 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 204P2; ISBN 0-16-041284-6 m EXPEDITED RESCISSION AUTHORITY FOR THE PRESIDENT U ÎNG 74/7; R 31/9 FORE THE m,i R«cissi.. dutkorit, for. . . ^ ^^ NATIONAL SECURITY SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS HOUSE OP REPRESENTATIVES ONE HUNDRED THIRD CONGRESS FIRST SESSION ON H.R. 354 TO AMEND THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CON- TROL ACT OF 1974 TO PROVIDE FOR THE EXPEDITED CONSIDER- ATION OF CERTAIN PROPOSED RESCISSIONS OF BUDGET AUTHORITY H.R. 493 TO GIVE THE PRESIDENT LEGISLATIVE, LINE-ITEM VETO RESCISSION AUTHORITY OVER APPROPRIATION BILLS AND TARGETED TAX BENE- FITS IN REVENUE BILLS H.R, 1013 TO AMEND THE CONGRESSIONAL BUDGET CONTROL AND IMPOUND- MENT ACT OF 1974 TO ESTABLISH PROCEDURES FOR THE EXPEDITED CONSIDERATION BY THE CONGRESS OF CERTAIN PROPOSALS BY THE PRESIDENT TO RESCIND AMOUNTS OF BUDGET AUTHORITY MARCH 10, 1993 Printed for the use of the Committee on Government Operations U.S. GOVERNMENT PRINTING OFFICE OCl f3 70-552CC WASraNGTON : 1993 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocumentsI,SBCNongr0e-s1si6o-na0l4S1a2le8s4O-f6fice,WashingtonvDC-.ltj'î^ ^'''"^'•'.'^^"••'>i.-rjfi?rn! COMMITTEE ON GOVERNMENT OPERATIONS JOHN CONYERS, JR., Michigan, Chairman CARDISS COLLINS, Illinois WILLIAM F. CLINGER, JR., Pennsylvania GLENN ENGLISH, Oklahoma AL MCCANDLESS, California HENRY A. WAXMAN, California J. DENNIS HASTERT, Illinois MIKE SYNAR, Oklahoma JON L. KYL, Arizona STEPHEN L. NEAL, North Carolina CHRISTOPHER SHAYS, Connecticut TOM LANTOS, California STEVEN SCHIFF, New Mexico MAJOR R. OWENS, New York C. CHRISTOPHER COX, California EDOLPHUS TOWNS, New York CRAIG THOMAS, Wyoming JOHN M. SPRATT, JR., South Carohna ILEANA ROS-LEHTINEN, Florida GARY A. CONDIT, California RONALD K. MACHTLEY, Rhode Island COLLIN C. PETERSON, Minnesota DICK ZIMMER, New Jersey KAREN L. THURMAN, Florida WILLIAM H. ZELIFF, JR., New Hampshire BOBBY L. RUSH, Illinois JOHN M. MCHUGH, New York CAROLYN B. MALONEY, New York STEPHEN HORN, California THOMAS M. BARRETT, Wisconsin DEBORAH PRYCE, Ohio DONALD M. PAYNE, New Jersey JOHN L. MICA, Florida FLOYD H. FLAKE, New York JAMES A. HAYES, Louisiana BERNARD SANDERS, Vermont CRAIG A. WASHINGTON, Texas (Independent) BARBARA-ROSE COLLINS, Michigan CORRINE BROWN, Florida MARJORIE MARGOLIES-MEZVINSKY, Pennsylvania LYNN C. WOOLSEY, California JilUAN Epstein, StaffDirector Kevin CroNIN,Associate Counsel Matthew R. Fletcher, Minority StaffDirector Legislation and National Security Subcommittee JOHN CONYERS, JR., Michigan, Chairman CARDISS COLLINS, Illinois AL McCANDLESS, California GLENN ENGLISH, Oklahoma WILLIAM F. CLINGER, JR., Pennsylvania STEPHEN L. NEAL, North Carolina JON L. KYL, Arizona CAROLYN B. MALONEY, New York DICK ZIMMER, New Jersey TOM LANTOS, California CORRINE BROWN, Florida RobertJay KLIKZ, Deputy StaffDirector James C. Turner, Associate Counsel Miranda G. KaTSOYANNIS, Professional StaffMember CherylA. I*HELPS, Professional StaffMember Eric M. Thorson, ProfessionalStaffMember Joseph CirINCIONE, Professional StaffMember BENNIE B. WILUAMS, Clerk Cheryl G. Matcho, Clerk Rosaund Burke-Alexander, Clerk Kevin Sabo, Minority Counsel (II) CONTENTS Page Hearingheldon March 10, 1993 1 TextofH.R. 354, H.R. 493, andH.R. 1013 2 Statementof: Coiwers, Hon. John, Jr., a Representative in Congress from the State of Michigan, and chairman, Legislation and National Security Sub- committee: Opening statement 1 Fisher, Louis, senior specialist in separation of powers. Congressional Research Service, LibraryofCongress 129 Michel, Hon. Robert H., a Representative in Congress from the State ofIllinois 60 Panetta, LeonE., Director, Oflice ofManagement andBudget 46 Reischauer, Robert D., Director, Congressional Budget Office 94 Socolsir, Milton J., Special Assistant to the Comptroller General, U.S. General AccountingOffice 109 Stenholm, Hon. Charles W., a Representative in Congress from the State ofTexas 79 White, Joseph, research associate, government studies division, Brookings Institute 143 Letters, statements, etc., submitted fortherecord: Clinger, Hon. William F., Jr., a Representative in Congress from the State ofPennsylvania: Prepared statement 44 Conyers, Hon. John, Jr., a Representative in Congress from the State of Michigan, and chairman. Legislation and National Security Sub- committee: Opening statement 35 Fisher, Louis, senior specialist in separation of powers. Congressional Research Service, LibraryofCongress: Prepared statement 132 McCandless, Hon. Al, a Kepresentative in Congress from the State of California: Preparedstatement 41 Michel, Hon. Robert H., a Representative in Congress from the State ofIllinois: Information concerning special interest provisions in H.R. 11 62 Preparedstatement 73 Panetta, Leon E., Director, Office ofManagement and Budget: Prepared statement 49 Reischauer, Robert D., Director, Congressional Budget Office: Letter dated March 16, 1993, from John Conyers, Jr., chairman, Legislation and National Security Subcommittee, to Director, Con- gressional Budget Office requesting more information, and March 30, 1993, response 123 Prepared statement 97 Socolar, Milton J., Special Assistant to the Comptroller General, U.S. General AccountingOffice: Prepared statement Ill Stenholm, Hon. Charles W., a Representative in Congress from the State ofTexas: Prepared statement 81 White, Joseph, research associate, government studies division, Brookings Institute: Prepared statement 146 (III) EXPEDITED RESCISSION AUTHORITY FOR THE PRESIDENT WEDNESDAY, MARCH 10, 1993 House of Representatives, Legislation and National Security Subcommittee OF THE Committee on GtOvernment Operations, Washington, DC. The subcommittee met, pursuant to notice, at 10:10 a.m., in room 2154, Raybum House Office Building, Hon. John Conyers, Jr. (chairman ofthe subcommittee) presiding. Members present: Representatives John Conyers, Jr., Glenn Eng- lish, Carol}^! B. Maloney, Corrine Brown, Al McCandless, William F. dinger, Jr., Jon L. Kyi, and Dick Zimmer. Also present: Representative John M. Spratt, Jr. Subcommittee staff present: James C. Turner, associate counsel; Rosalind Burke-Alexander, clerk; and Kevin Sabo, minority counsel. Full committee staffpresent: Kevin Cronin, associate counsel. OPENING STATEMENT OF CHAIRMAN CONYERS Mr. Conyers. The subcommittee will come to order. Ladies and gentlemen, we've gathered here today to discuss Presidential expedited rescission authority. We're delighted that our former colleague, Leon Panetta, now the Director of the Office ofManagement and Budget, has joined us to begin this discussion. I'm struck by a couple of things. First, that we have had rescissions apply to discretionary spending that have not had, perhaps, the effect that some of its proponents want. Driven by spiraling health-care costs and recession, only about one-third of all Federal outlays would be subject to rescission authority, so we have to ap- proach it with some care. I was just talking with a former chairman of this committee. Jack Brooks, who reminded me ofthe constitutional problems ifwe were to go further in terms of line item veto or matters of that kind. As the first witness knows, we passed one measure in this regard in the last session, and here we are again re-examining the matter. So we welcome Leon Panetta to lead us in this discussion. [The text of the bills H.R. 354, H.R. 493, H.R. 1013, and the opening statement ofMr. Conyers follow:! (1) 103d congress H. R. 354 1st Session To amend the Congressional Budget and Impoundment Control Act of 1974 to provide for the expedited consideration ofcertain proposed rescissions ofbudget authority. IN THE HOUSE OF REPRESENTATIVES January 5, 1993 Mr. Slatteryintroduced the followingbill; whichwas referredjointlyto the Committees on Government Operations and Rules A BILL To amend the Congressional Budget and Impoundment Con- trol Act of 1974 to provide for the expedited consideration of certain proposed rescissions of budget authority. 1 Be it enacted by the Senate and House ofRepresenta- 2 tives ofthe United States ofAmerica in Congress assembled, 3 SECTION 1. SHORTTITLE. 4 - This Act may be cited as the "Expedited Consider- 5 ation ofProposed RescissionsAct of 1993". 6 SEC. 2. EXPEDITED CONSIDERATION OF CERTAIN PRO- 7 POSEDRESCISSIONS. — 8 (a) In General. Part B of title X of the Congres- 9 sional Budget and Impoundment Control Act of 1974 (2 1 2 1 U.S.C. 681 et seq.) is amended by redesignating sections 2 1013 through 1017 as sections 1014 through 1018, re- 3 spectively, and inserting after section 1012 the following 4 new section: 5 "expedited CONSroERATION OF CERTAIN PROPOSED 6 RESCISSIONS 7 "Sec. 1013. (a) Proposed Rescission of Budget — 8 Authority. In addition to the method of rescinding 9 budget authority specified in section 1012, the President 10 may propose, at the time and in the manner provided in 1 subsection (b), the rescission of any budget authority pro- 12 vided in an appropriations Act. Funds made available for 13 obligation under this procedure may not be proposed for 14 rescission againunderthis section or section 1012. — 15 "(b) Transmittal of Special Message. 16 "(1) Not later than 3 days after the date of en- 17 actment of an appropriation Act, the President may 18 transmit to Congress a special message proposing to 19 rescind amounts of budget authority provided in 20 that Act and include with that special message a 21 draft bill or joint resolution that, if enacted, would 22 only rescind that budget authority. 23 "(2) In the case of an appropriation Act that 24 includes accounts within the jurisdiction of more 25 than one subcommittee of the Committee on Appro- 26 priations, the President in proposing to rescind •HR 3S4 IH — 3 1 budget authority under this section shall send a sep- 2 arate special message and accompanying draft bill or 3 joint resolution for accounts witliin the jurisdiction 4 of each such subcommittee. 5 "(3) Each special message shall specify, with 6 respect to the budget authority proposed to be re- 7 scinded, the matters referred to in paragraphs (1) 8 through (5) of section 1012(a). 9 "(c) Limitation on Amounts Subject to Rescis- 10 SION. 11 "(1) The amount of budget authority which the 12 President may propose to rescind in a special mes- 13 sage under this section for a particular program, 14 project, or activity for a fiscal year may not exceed 15 25 percent of the amount appropriated for that pro- 16 gram, project, or activity in that Act. 17 ''(2) The limitation contained in paragraph.(1) 18 shall only apply to a program, project, or activity 19 that is authorized by law. 20 "(d) Procedures for Expedited Consider- — 21 ation. 22 "(1)(A) Before the close of the second day of 23 continuous session of the applicable House after the 24 date of receipt of a special message transmitted to 25 Congress under subsection (b), the majority leader •HR 364 IH