Line Item Veto Act of 1996
Section 1027
Impoundment Control Act of 1974
PART C—LINE ITEM VETO
identification of limited tax benefits
Sec. 1027.[1] (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 Identification 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.
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COUNSEL NOTES
Endnotes
[1] This section was originally classified to the U.S. Code at 2 U.S.C. 691f (section omitted from code).
CODIFICATION
Section 1027 was codified as section 691f in title 2 of the U.S. Code, Pub. L. 93–344, title X, §1027, as added by section 2 of Pub. L. 104–130, §2(a), Apr. 9, 1996, 110 Stat. 1210. The section is related to the identification of limited tax benefits.
Joint Statement of Managers on the Line Item Veto Act of 1996
The Conference Report on the Line Item Veto Act of 1996 (H. Rept. 104-491):
Sec. 1027. Identification of limited tax benefits
The conferees intend to limit the authority delegated to the President by Congress under section 1021 with respect to the application of that authority to limited tax benefits. A limited tax benefit is a carefully delineated provision under the definition in section 1026(9). This section ensures the proper application of this definition, and hence the President’s cancellation authority, to any tax provision. The conference report provides the conferees on any revenue or reconciliation measure with the opportunity to identify for the President what may constitute a limited tax benefit, under the procedures in this section, in each revenue or reconciliation law
The conference report states that the JCT shall examine any revenue or reconciliation bill or joint resolution (that amends the Internal Revenue Code) prior to its filing by a committee of conference in order to determine whether or not hat bill or joint resolution contains any limited tax benefits under the definition in section 1026(9). The statement from the JCT shall state that the bill either contains no limited tax benefits or contains limited tax benefits.
In the case of a revenue or reconciliation bill or joint resolution containing one or more limited tax benefits the statement shall list each of those provisions. In the case of a revenue or reconciliation bill or joint resolution containing no limited tax benefits, the statement shall state that determination. This statement shall be submitted to the conference committee on such a bill or joint resolution and shall be made available by the JCT to any Member of Congress upon request.
If the conference report includes the information from the JCT and that information identifies provisions in the conference report which quality as limited tax benefits under the definition in section 1026(9), then the President may cancel those, and only those, items as identified. On the other hand, if such a conference report contains a statement from the JCT stating that there are no provisions in the conference report qualifying under the definition in section 1026(9) as a limited tax benefit, then the President may not exercise the cancellation authority under section 1021(a)(3) because Congress has provided that no tax provisions are eligible for cancellation under this authority.
The conference report specifies how the information provided by JCT may be included in the bill. At the end of the bill, the permitted separate section should read as follows: “Section 1021(a) of the Congressional Budget and Impoundment Control Act of 1974 shall ________ apply to ________”, with the blank spaces being filled in with the appropriate information. In the case in which the JCT identifies limited tax benefits in a conference report, the word “only” would appear in the first blank and a list of all of the provisions of the bill or joint resolution identified by the JCT in that Committee’s statement shall appear in the second blank. In the case in which the JCT declares that there are no limited tax benefits in the conference report, the word “not” would appear in the first blank and the phrase “any provision of this Act” would appear in the second blank.
The conferees intend that the decision to include the information provided by JCT in the bill or joint resolution that amends the Internal Revenue Code shall be left to the discretion of the appropriate conferees. With respect to any potential violations or any rules relating to the scope of a conference, the conferees intend that the inclusion of such an identification shall not constitute a violation of any rules of the House of Representatives or the Senate, respectively.
In the event the legislation amending the Internal Revenue Code is signed into law that does not contain the information provided by JCT, any identification of what constitutes a limited tax benefit under the definition in section 1026(9) may be made by the President. If any provision qualifies as a limited tax benefit (within the confines of the definition of such a benefit in section 1026(9)) and the President identifies such a benefit, the President may exercise the cancellation authority under section 1021(a)(3).
[U.S. Congress, Joint Explanatory Statement on the Committee of Conference on S.4; (H. Rept. 104-491), Committee on Government Reform, House of Representatives, 104th Congress, 2d Session, Washington D.C. 1996.]
LEGISLATIVE HISTORY NOTES
PUBLIC LAWS
Section §1027 was added to the Impoundment Control Act of 1974 (Pub. L. 93–344, title IV) by Section 2 of the Line Item Veto Act (Pub. L. 104–130, 110 Stat. 1200).
[U.S. Congress, Joint Explanatory Statement on the Committee of Conference on S.4; (H. Rept. 104-491), Committee on Government Reform, House of Representatives, 104th Congress, 2d Session, Washington D.C. 1996.]
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