ASHINGTON - President Bush, again defying Congress, says he has the power to edit the Homeland Security Department’s reports about whether it obeys privacy rules while handling background checks, ID cards and watchlists.      In the law Bush signed Wednesday, Congress stated no one but the privacy officer could alter, delay or prohibit the mandatory annual report on Homeland Security department activities that affect privacy, including complaints.      But Bush, in a signing statement attached to the agency’s 2007 spending bill, said he will interpret that section “in a manner consistent with the President’s constitutional authority to supervise the unitary executive branch.”      White House spokeswoman Dana Perino said it’s appropriate for the administration to know what reports go to Congress and to review them beforehand.      “There can be a discussion on whether to accept a change or a nuance,” she said. “It could be any number of things.”      The American Bar Association and members of Congress have said Bush uses signing statements excessively as a way to expand his power.

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