[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6688 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6688

    To extend tax relief for all Americans, to replace the defense 
sequester scheduled to take effect on January 2, 2013, with responsible 
    reductions in direct and other spending, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 2012

 Mr. Jordan (for himself, Mr. Mulvaney, Mr. Scalise, Mr. Garrett, Mr. 
Flores, Mr. Broun of Georgia, Mr. Walberg, Mrs. Hartzler, Mr. Stutzman, 
Mr. Olson, Mr. Luetkemeyer, Mr. Griffin of Arkansas, Mr. Culberson, Mr. 
Roe of Tennessee, Mr. Pearce, Mr. Graves of Georgia, Mr. Huelskamp, Mr. 
Gibbs, Mr. Fleming, Mrs. Myrick, Mr. Price of Georgia, Mrs. Blackburn, 
 and Mr. Schweikert) introduced the following bill; which was referred 
 to the Committee on Ways and Means, and in addition to the Committees 
 on the Budget, Agriculture, Energy and Commerce, Financial Services, 
 the Judiciary, Oversight and Government Reform, House Administration, 
 and Rules, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To extend tax relief for all Americans, to replace the defense 
sequester scheduled to take effect on January 2, 2013, with responsible 
    reductions in direct and other spending, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Averting the Fiscal Cliff Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
          TITLE I--JOB PROTECTION AND RECESSION PREVENTION ACT

        Subtitle A--Job Protection and Recession Prevention Act

Sec. 1101. Short title.
Sec. 1102. Permanent extension of 2001 and 2003 tax relief.
Sec. 1103. Extension of increased small business expensing.
Sec. 1104. Extension of alternative minimum tax relief for individuals.
Subtitle B--Pathway to Job Creation Through a Simpler, Fairer Tax Code 
                                  Act

Sec. 1201. Short title.
Sec. 1202. Findings and purposes.
Sec. 1203. Expedited Consideration of a Measure Providing for 
                            Comprehensive Tax Reform.
                TITLE II--SEQUESTRATION REPLACEMENT ACT

                        Subtitle A--Agriculture

Sec. 2101. Short title.
Sec. 2102. ARRA sunset on date of enactment of this Act.
Sec. 2103. Categorical eligibility limited to cash assistance.
Sec. 2104. Standard utility allowances based on the receipt of energy 
                            assistance payments.
Sec. 2105. Employment and training; workfare.
Sec. 2106. End State bonus program for the supplemental nutrition 
                            assistance program.
Sec. 2107. Funding of employment and training programs.
Sec. 2108. Turn off indexing for nutrition education and obesity 
                            prevention.
Sec. 2109. Extension of Authorization of Food and Nutrition Act of 
                            2008.
Sec. 2110. Effective dates and application of amendments.
              Subtitle B--Committee on Energy and Commerce

          Chapter 1--Repeal of Certain ACA Funding Provisions

Sec. 2201. Repealing mandatory funding to states to establish American 
                            Health Benefit Exchanges.
Sec. 2202. Repealing Prevention and Public Health Fund.
Sec. 2203. Rescinding unobligated balances for CO-OP program.
                          Chapter 2--Medicaid

Sec. 2211. Revision of provider tax indirect guarantee threshold.
Sec. 2212. Rebasing of State DSH allotments for fiscal year 2022.
Sec. 2213. Repeal of Medicaid and CHIP maintenance of effort 
                            requirements under PPACA.
Sec. 2214. Medicaid payments to territories.
Sec. 2215. Repealing bonus payments for enrollment under Medicaid and 
                            CHIP.
                     Subtitle C--Financial Services

Sec. 2301. Table of contents.
                  Chapter 1--Orderly Liquidation Fund

Sec. 2311. Repeal of liquidation authority.
            Chapter 2--Home Affordable Modification Program

Sec. 2321. Short title.
Sec. 2322. Congressional findings.
Sec. 2323. Termination of authority.
Sec. 2324. Sense of Congress.
           Chapter 3--Bureau of Consumer Financial Protection

Sec. 2331. Bringing the Bureau of Consumer Financial Protection into 
                            the regular appropriations process.
         Chapter 4--Repeal of the Office of Financial Research

Sec. 2341. Repeal of the Office of Financial Research.
                 Subtitle D--Committee on the Judiciary

Sec. 2401. Short title.
Sec. 2402. Encouraging speedy resolution of claims.
Sec. 2403. Compensating patient injury.
Sec. 2404. Maximizing patient recovery.
Sec. 2405. Punitive damages.
Sec. 2406. Authorization of payment of future damages to claimants in 
                            health care lawsuits.
Sec. 2407. Definitions.
Sec. 2408. Effect on other laws.
Sec. 2409. State flexibility and protection of States' rights.
Sec. 2410. Applicability; effective date.
        Subtitle E--Committee on Oversight and Government Reform

Sec. 2501. Retirement contributions.
Sec. 2502. Annuity supplement.
Sec. 2503. Contributions to Thrift Savings Fund of payments for accrued 
                            or accumulated leave.
                Subtitle F--Committee on Ways and Means

 Chapter 1--Recapture of Overpayments Resulting From Certain Federally 
                      Subsidized Health Insurance

Sec. 2601. Recapture of overpayments resulting from certain federally 
                            subsidized health insurance.
  Chapter 2--Social Security Number Required To Claim the Refundable 
                    Portion of the Child Tax Credit

Sec. 2611. Social security number required to claim the refundable 
                            portion of the child tax credit.
                 Chapter 3--Human Resources Provisions

Sec. 2621. Repeal of the program of block grants to States for social 
                            services.
                   Subtitle G--Sequester Replacement

Sec. 2701. Short title.
Sec. 2702. Protecting veterans programs from sequester.
Sec. 2703. Achieving $19 billion in discretionary savings.
Sec. 2704. Conforming amendments to section 314 of the Congressional 
                            Budget and Impoundment Control Act of 1974.
Sec. 2705. Treatment for PAYGO purposes.
Sec. 2706. Elimination of the fiscal year 2013 sequestration for 
                            defense direct spending.

          TITLE I--JOB PROTECTION AND RECESSION PREVENTION ACT

        Subtitle A--Job Protection and Recession Prevention Act

SEC. 1101. SHORT TITLE.

    This subtitle may be cited as the ``Job Protection and Recession 
Prevention Act of 2012''.

SEC. 1102. PERMANENT EXTENSION OF 2001 AND 2003 TAX RELIEF.

    (a) Extension of 2001 Tax Relief.--
            (1) In general.--The Economic Growth and Tax Relief 
        Reconciliation Act of 2001 is amended by striking title IX.
            (2) Effective date.--The amendments made by this section 
        shall take effect as if included in the enactment of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001.
    (b) Extension of 2003 Tax Relief.--
            (1) In general.--The Jobs and Growth Tax Relief 
        Reconciliation Act of 2003 is amended by striking section 303.
            (2) Effective date.--The amendment made by this section 
        shall take effect as if included in the enactment of the Jobs 
        and Growth Tax Relief Reconciliation Act of 2003.
    (c) Extension of Estate Tax Relief.--
            (1) In general.--Section 304 of the Tax Relief, 
        Unemployment Insurance Reauthorization, and Job Creation Act of 
        2010 is amended to read as follows:

``SEC. 304. SUNSET OF ESTATE TAX RELIEF.

    ``(a) In General.--All provisions of, and amendments made by, this 
title shall not apply to estates of decedents dying, gifts made, or 
generation skipping transfers, after December 31, 2013.
    ``(b) Application of Certain Laws.--The Internal Revenue Code of 
1986 shall be applied and administered to estates, gifts, and transfers 
described in subsection (a) as if the provisions and amendments 
described in subsection (a) had never been enacted.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to estates of decedents dying, gifts made, or 
        generation skipping transfers, after December 31, 2012.

SEC. 1103. EXTENSION OF INCREASED SMALL BUSINESS EXPENSING.

    (a) Dollar Limitation.--Section 179(b)(1) of the Internal Revenue 
Code of 1986 is amended--
            (1) by striking ``and'' at the end of subparagraph (C), by 
        redesignating subparagraph (D) as subparagraph (E), and by 
        inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) $100,000 in the case of taxable years 
                beginning in 2013, and'', and
            (2) by striking ``2012'' in subparagraph (E) (as 
        redesignated by paragraph (1)) and inserting ``2013''.
    (b) Reduction in Limitation.--Section 179(b)(2) of such Code is 
amended--
            (1) by striking ``and'' at the end of subparagraph (C), by 
        redesignating subparagraph (D) as subparagraph (E), and by 
        inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) $400,000 in the case of taxable years 
                beginning in 2013, and'', and
            (2) by striking ``2012'' in subparagraph (E) (as 
        redesignated by paragraph (1)) and inserting ``2013''.
    (c) Application of Inflation Adjustment.--Section 179(b)(6)(A) of 
such Code is amended--
            (1) by striking ``calendar year 2012, the $125,000 and 
        $500,000 amounts in paragraphs (1)(C) and (2)(C)'' in the 
        matter preceding clause (i) and inserting ``calendar year 2013, 
        the $100,000 and $400,000 amounts in paragraphs (1)(D) and 
        (2)(D)'', and
            (2) by striking ``calendar year 2006'' in clause (ii) and 
        inserting ``calendar year 2002''.
    (d) Computer Software.--Section 179(d)(1)(A)(ii) of such Code is 
amended by striking ``2013'' and inserting ``2014''.
    (e) Special Rule for Revocation of Elections.--Section 179(c)(2) of 
such Code is amended by striking ``2013'' and inserting ``2014''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

SEC. 1104. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR INDIVIDUALS.

    (a) Extension of Increased Alternative Minimum Tax Exemption 
Amount.--Section 55(d)(1) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``$72,450'' and all that follows through 
        ``2011'' in subparagraph (A) and inserting ``$78,750 in the 
        case of taxable years beginning in 2012 and $79,850 in the case 
        of taxable years beginning in 2013'', and
            (2) by striking ``$47,450'' and all that follows through 
        ``2011'' in subparagraph (B) and inserting ``$50,600 in the 
        case of taxable years beginning in 2012 and $51,150 in the case 
        of taxable years beginning in 2013''.
    (b) Extension of Alternative Minimum Tax Relief for Nonrefundable 
Personal Credits.--Section 26(a)(2) of such Code is amended--
            (1) by striking ``during 2000, 2001, 2002, 2003, 2004, 
        2005, 2006, 2007, 2008, 2009, 2010, or 2011'' and inserting 
        ``after 1999 and before 2014'', and
            (2) by striking ``2011'' in the heading thereof and 
        inserting ``2013''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

Subtitle B--Pathway to Job Creation Through a Simpler, Fairer Tax Code 
                                  Act

SEC. 1201. SHORT TITLE.

    This subtitle may be cited as the ``Pathway to Job Creation through 
a Simpler, Fairer Tax Code Act of 2012''.

SEC. 1202. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that the following problems exist 
with the Internal Revenue Code of 1986 (in this section referred to as 
the ``tax code''):
            (1) The tax code is unfair, containing hundreds of 
        provisions that only benefit certain special interests, 
        resulting in a system of winners and losers.
            (2) The tax code violates the fundamental principle of 
        equal justice by subjecting families in similar circumstances 
        to significantly different tax bills.
            (3)(A) Many tax preferences, sometimes referred to as ``tax 
        expenditures'', are similar to government spending--instead of 
        markets directing economic resources to their most efficient 
        uses, the Government directs resources to other uses, creating 
        a drag on economic growth and job creation.
            (B) The exclusions, deductions, credits, and special rules 
        that make up such tax expenditures amount to over $1 trillion 
        per year, nearly matching the total amount of annual revenue 
        that is generated from the income tax itself.
            (C) In some cases, tax subsidies can literally take the 
        form of spending through the tax code, redistributing taxes 
        paid by some Americans to individuals and businesses who do not 
        pay any income taxes at all.
            (4) The failure to adopt a permanent tax code with stable 
        statutory tax policy has created greater economic uncertainty. 
        Tax rates have been scheduled to increase sharply in 3 of the 
        last 5 years, requiring the enactment of repeated temporary 
        extensions. Additionally, approximately 70 other, more targeted 
        tax provisions expired in 2011 or are currently scheduled to 
        expire by the end of 2012.
            (5) Since 2001, there have been nearly 4,500 changes made 
        to the tax code, averaging more than one each day over the past 
        decade.
            (6) The tax code's complexity leads nearly nine out of ten 
        families either to hire tax preparers (60 percent) or purchase 
        software (29 percent) to file their taxes, while 71 percent of 
        unincorporated businesses are forced to pay someone else to 
        prepare their taxes.
            (7) The cost of complying with the tax code is too 
        burdensome, forcing individuals, families, and employers to 
        spend over six billion hours and over $160 billion per year 
        trying to comply with the law and pay the actual tax owed.
            (8) Compliance with the current tax code is a financial 
        hardship for employers that falls disproportionately on small 
        businesses, which spend an average of $74 per hour on tax-
        related compliance, making it the most expensive paperwork 
        burden they encounter.
            (9) Small businesses have been responsible for two-thirds 
        of the jobs created in the United States over the past 15 
        years, and approximately half of small-business profits are 
        taxed at the current top 2 individual rates.
            (10) The historic range for tax revenues collected by the 
        Federal government has averaged 18 to 19 percent of Gross 
        Domestic Product (GDP), but will rise to 21.2 percent of GDP 
        under current law--a level never reached, let alone sustained, 
        in the Nation's history.
            (11) The current tax code is highly punitive, with a top 
        Federal individual income tax rate of 35 percent (which is set 
        to climb to over 40 percent in 2013 when taking into account 
        certain hidden rates), meaning some Americans could face a 
        combined local, State and Federal tax rate of 50 percent.
            (12) The tax code contains harmful provisions, such as the 
        Alternative Minimum Tax (AMT), which was initially designed to 
        affect only the very highest-income taxpayers but now threatens 
        more than 30 million middle-class households because of a 
        flawed design.
            (13) As of April 1, 2012, the United States achieved the 
        dubious distinction of having the highest corporate tax rate 
        (39.2 percent for Federal and State combined) in the developed 
        world.
            (14) The United States corporate tax rate is more than 50 
        percent higher than the average rate of member states of the 
        Organization for Economic Cooperation and Development (OECD)--a 
        factor that discourages employers and investors from locating 
        jobs and investments in the United States.
            (15) The United States has become an outlier in that it 
        still uses a ``worldwide'' system of taxation--one that has not 
        been substantially reformed in 50 years, when the United States 
        accounted for nearly half of global economic output and had no 
        serious competitors around the world.
            (16) The combination of the highest corporate tax rate with 
        an antiquated ``worldwide'' system subjects American companies 
        to double taxation when they attempt to compete with foreign 
        companies in overseas markets and then reinvest their earnings 
        in the United States.
            (17) The Nation's outdated tax code has contributed to the 
        fact that the world's largest companies are more likely to be 
        headquartered overseas today than at any point in the last 50 
        years: In 1960, 17 of the world's 20 largest companies were 
        based in the United States; by 2010, that number sank to a mere 
        six out of 20.
            (18) The United States has one of the highest levels of 
        taxation on capital--taxing it once at the corporate level and 
        then again at the individual level--with integrated tax rates 
        on certain investment income already reaching roughly 50 
        percent (and scheduled to reach nearly 70 percent in 2013).
            (19) The United States overall taxation of capital is 
        higher than all but four of the 38 countries that make up the 
        OECD and the BRIC (Brazil, Russia, India and China).
    (b) Purposes.--It is the purpose of this title to provide for 
enactment of comprehensive tax reform in 2013 that--
            (1) protects taxpayers by creating a fairer, simpler, 
        flatter tax code for individuals and families by--
                    (A) lowering marginal tax rates and broadening the 
                tax base;
                    (B) eliminating special interest loopholes;
                    (C) reducing complexity in the tax code, making tax 
                compliance easier and less costly;
                    (D) repealing the Alternative Minimum Tax;
                    (E) maintaining modern levels of progressivity so 
                as to not overburden any one group or further erode the 
                tax base;
                    (F) making it easier for Americans to save; and
                    (G) reducing the tax burdens imposed on married 
                couples and families;
            (2) is comprehensive (addressing both individual and 
        corporate rates), so as to have the maximum economic impact by 
        benefitting employers and their employees regardless of how a 
        business is structured;
            (3) results in tax revenue consistent with historical 
        norms;
            (4) spurs greater investment, innovation and job creation, 
        and therefore increases economic activity and the size of the 
        economy on a dynamic basis as compared to the current tax code; 
        and
            (5) makes American workers and businesses more competitive 
        by--
                    (A) creating a stable, predictable tax code under 
                which families and employers are best able to plan for 
                the future;
                    (B) keeping taxes on small businesses low;
                    (C) reducing America's corporate tax rate, which is 
                currently the highest in the industrialized world;
                    (D) maintaining a level of parity between 
                individual and corporate rates to reduce economic 
                distortions;
                    (E) promoting innovation in the United States;
                    (F) transitioning to a globally competitive 
                territorial tax system;
                    (G) minimizing the double taxation of investment 
                and capital; and
                    (H) reducing the impact of taxes on business 
                decision-making to allow such decisions to be driven by 
                their economic potential.

SEC. 1203. EXPEDITED CONSIDERATION OF A MEASURE PROVIDING FOR 
              COMPREHENSIVE TAX REFORM.

    (a) Definition.--For purposes of this section, the term ``tax 
reform bill'' means a bill of the 113th Congress--
            (1) introduced in the House of Representatives by the chair 
        of the Committee on Ways and Means not later than April 30, 
        2013, or the first legislative day thereafter if the House is 
        not in session on that day, the title of which is as follows: 
        ``A bill to provide for comprehensive tax reform.''; and
            (2) which is the subject of a certification under 
        subsection (b).
    (b) Certification.--The chair of the Joint Committee on Taxation 
shall notify the House and Senate in writing whenever the chair of the 
Joint Committee determines that an introduced bill described in 
subsection (a)(1) contains at least each of the following proposals:
            (1) a consolidation of the current 6 individual income tax 
        brackets into not more than two brackets of 10 and not more 
        than 25 percent;
            (2) a reduction in the corporate tax rate to not greater 
        than 25 percent;
            (3) a repeal of the Alternative Minimum Tax;
            (4) a broadening of the tax base to maintain revenue 
        between 18 and 19 percent of the economy; and
            (5) a change from a ``worldwide'' to a ``territorial'' 
        system of taxation.
    (c) Expedited Consideration in the House of Representatives.--
            (1) Any committee of the House of Representatives to which 
        the tax reform bill is referred shall report it to the House 
        not later than 20 calendar days after the date of its 
        introduction. If a committee fails to report the tax reform 
        bill within that period, such committee shall be automatically 
        discharged from further consideration of the bill.
            (2) If the House has not otherwise proceeded to the 
        consideration of the tax reform bill upon the expiration of 15 
        legislative days after the bill has been placed on the Union 
        Calendar, it shall be in order for the majority leader or a 
        designee (or, after the expiration of an additional 2 
        legislative days, any Member), to offer one motion that the 
        House resolve into the Committee of the Whole House on the 
        state of the Union for the consideration of the tax reform 
        bill. The previous question shall be considered as ordered on 
        the motion to its adoption without intervening motion except 20 
        minutes of debate equally divided and controlled by the 
        proponent and an opponent. If such a motion is adopted, 
        consideration shall proceed in accordance with paragraph (3). A 
        motion to reconsider the vote by which the motion is disposed 
        of shall not be in order.
            (3) The first reading of the bill shall be dispensed with. 
        General debate shall be confined to the bill and shall not 
        exceed 4 hours, equally divided and controlled by the chair and 
        ranking minority member of the Committee on Ways and Means. At 
        the conclusion of general debate, the bill shall be read for 
        amendment under the five-minute rule. Any committee amendment 
        shall be considered as read. At the conclusion of 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 except one motion to recommit with or 
        without instructions. A motion to reconsider the vote on 
        passage of the bill shall not be in order.
    (d) Expedited Consideration in the Senate.--
            (1) Committee consideration.--A tax reform bill, as defined 
        in subsection (a), received in the Senate shall be referred to 
        the Committee on Finance. The Committee shall report the bill 
        not later than 15 calendar days after receipt of the bill in 
        the Senate. If the Committee fails to report the bill within 
        that period, that committee shall be discharged from 
        consideration of the bill, and the bill shall be placed on the 
        calendar.
            (2) Motion to proceed.--Notwithstanding rule XXII of the 
        Standing Rules of the Senate, it is in order, not later than 2 
        days of session after the date on which the tax reform bill is 
        reported or discharged from committee, for the majority leader 
        of the Senate or the majority leader's designee to move to 
        proceed to the consideration of the tax reform bill. It shall 
        also be in order for any Member of the Senate to move to 
        proceed to the consideration of the tax reform bill at any time 
        after the conclusion of such 2-day period. A motion to proceed 
        is in order even though a previous motion to the same effect 
        has been disagreed to. All points of order against the motion 
        to proceed to the tax reform bill are waived. The motion to 
        proceed is not debatable. The motion is not subject to a motion 
        to postpone.
            (3) Consideration.--No motion to recommit shall be in order 
        and debate on any motion or appeal shall be limited to one 
        hour, to be divided in the usual form.
            (4) Amendments.--All amendments must be relevant to the 
        bill and debate on any amendment shall be limited to 2 hours to 
        be equally divided in the usual form between the opponents and 
        proponents of the amendment. Debate on any amendment to an 
        amendment, debatable motion, or appeal shall be limited to 1 
        hour to be equally divided in the usual form between the 
        opponents and proponents of the amendment.
            (5) Vote on passage.--If the Senate has proceeded to the 
        bill, and following the conclusion of all debate, the Senate 
        shall proceed to a vote on passage of the bill as amended, if 
        amended.
    (e) Conference in the House.--If the House receives a message that 
the Senate has passed the tax reform bill with an amendment or 
amendments, it shall be in order for the chair of the Committee on Ways 
and Means or a designee, without intervention of any point of order, to 
offer any motion specified in clause 1 of rule XXII.
    (f) Conference in the Senate.--If the Senate receives from the 
House a message to accompany the tax reform bill, as defined in 
subsection (a), then no later than two session days after its receipt--
            (1) the Chair shall lay the message before the Senate;
            (2) the motion to insist on the Senate amendment or 
        disagree to the House amendment or amendments to the Senate 
        amendment, the request for a conference with the House or the 
        motion to agree to the request of the House for a conference, 
        and the motion to authorize the Chair to appoint conferees on 
        the part of the Senate shall be agreed to; and
            (3) the Chair shall then be authorized to appoint conferees 
        on the part of the Senate without intervening motion, with a 
        ratio agreed to with the concurrence of both leaders.
    (g) Rulemaking.--This section is enacted by the Congress as an 
exercise of the rulemaking power of the House of Representatives and 
Senate, respectively, and as such is deemed a part of the rules of each 
House, respectively, or of that House to which they specifically apply, 
and such procedures supersede other rules only to the extent that they 
are inconsistent with such rules; and with full recognition of the 
constitutional right of either House to change the rules (so far as 
relating to the procedures of that House) at any time, in the same 
manner, and to the same extent as any other rule of that House.

                TITLE II--SEQUESTRATION REPLACEMENT ACT

                        Subtitle A--Agriculture

SEC. 2101. SHORT TITLE.

    This subtitle may be cited as the ``Agricultural Reconciliation Act 
of 2012''.

SEC. 2102. ARRA SUNSET ON DATE OF ENACTMENT OF THIS ACT.

    Section 101(a)(2) of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 120) is amended 
by striking ``October 31, 2013'' and inserting ``the date of enactment 
of the Averting the Fiscal Cliff Act''.

SEC. 2103. CATEGORICAL ELIGIBILITY LIMITED TO CASH ASSISTANCE.

    Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended--
            (1) in the second sentence of subsection (a) by striking 
        ``households in which each member receives benefits'' and 
        inserting ``households in which each member receives cash 
        assistance'', and
            (2) in subsection (j) by striking ``or who receives 
        benefits under a State program'' and inserting ``or who 
        receives cash assistance under a State program''.

SEC. 2104. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY 
              ASSISTANCE PAYMENTS.

    (a) Standard Utility Allowance.--Section 5 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
            (1) in subsection (e)(6)(C) by striking clause (iv), and
            (2) in subsection (k) by striking paragraph (4) and 
        inserting the following:
            ``(4) Third-party energy assistance payments.--For purposes 
        of subsection (d)(1), a payment made under a State law (other 
        than a law referred to in paragraph (2)(G)) to provide energy 
        assistance to a household shall be considered money payable 
        directly to the household.''.
    (b) Conforming Amendments.--Section 2605(f)(2) of the Low-Income 
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)) is amended--
            (1) by striking ``and for purposes of determining any 
        excess shelter expense deduction under section 5(e) of the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2014(e))'', and
            (2) in subparagraph (A) by inserting before the semicolon 
        the following: ``, except that such payments or allowances 
        shall not be deemed to be expended for purposes of determining 
        any excess shelter expense deduction under section 5(e)(6) of 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6))''.

SEC. 2105. EMPLOYMENT AND TRAINING; WORKFARE.

    (a) Administrative Cost-Sharing for Employment and Training 
Programs.--
            (1) In general.--Section 16 of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2025) is amended--
                    (A) in subsection (a) by inserting ``(other than a 
                program carried out under section 6(d)(4) or section 
                20)'' after ``supplemental nutrition assistance 
                program'' the first place it appears, and
                    (B) in subsection (h)--
                            (i) by striking paragraphs (2) and (3), and
                            (ii) by redesignating paragraphs (4) and 
                        (5) as paragraphs (2) and (3), respectively.
            (2) Conforming amendments.--
                    (A) Section 17(b)(1)(B)(iv)(III)(hh) of the Food 
                and Nutrition Act of 2008 (7 U.S.C. 
                2026(b)(1)(B)(iv)(III)(hh)) is amended by striking 
                ``(g), (h)(2), or (h)(3)'' and inserting ``or (g)''.
                    (B) Section 22(d)(1)(B)(ii) of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is 
                amended is amended by striking ``, (g), (h)(2), and 
                (h)(3)'' and inserting ``and (g)''.
    (b) Administrative Cost-Sharing and Reimbursements for Workfare.--
Section 20 of the Food and Nutrition Act of 2008 (7 U.S.C. 2029) is 
amended by striking subsection (g).

SEC. 2106. END STATE BONUS PROGRAM FOR THE SUPPLEMENTAL NUTRITION 
              ASSISTANCE PROGRAM.

    Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is 
amended by striking subsection (d).

SEC. 2107. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    For purposes of fiscal year 2013, the reference to $90,000,000 in 
section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(h)(1)(A)) shall be deemed to be a reference to $79,000,000.

SEC. 2108. TURN OFF INDEXING FOR NUTRITION EDUCATION AND OBESITY 
              PREVENTION.

    Section 28(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2037(d)) is amended by striking ``years--'' and all that follows 
through the period at the end, and inserting ``years, $375,000,000.''.

SEC. 2109. EXTENSION OF AUTHORIZATION OF FOOD AND NUTRITION ACT OF 
              2008.

    Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2027(a)(1)) is amended by striking ``2012'' and inserting ``2013''.

SEC. 2110. EFFECTIVE DATES AND APPLICATION OF AMENDMENTS.

    (a) General Effective Date.--Except as provided in subsection (b), 
this title and the amendments made by this title shall take effect on 
the date of enactment of this Act, and shall apply only with respect to 
certification periods that begin on or after such date.
    (b) Special Effective Date.--Section 2107 and the amendments made 
by sections 2102, 2103, 2104, and 2109 shall take effect on the date of 
the enactment of this Act and shall apply only with respect to 
certification periods that begin on or after such date.

              Subtitle B--Committee on Energy and Commerce

          CHAPTER 1--REPEAL OF CERTAIN ACA FUNDING PROVISIONS

SEC. 2201. REPEALING MANDATORY FUNDING TO STATES TO ESTABLISH AMERICAN 
              HEALTH BENEFIT EXCHANGES.

    (a) In General.--Section 1311(a) of the Patient Protection and 
Affordable Care Act (42 U.S.C. 18031(a)) is repealed.
    (b) Rescission of Unobligated Funds.--Of the funds made available 
under such section 1311(a), the unobligated balance is rescinded.

SEC. 2202. REPEALING PREVENTION AND PUBLIC HEALTH FUND.

    (a) In General.--Section 4002 of the Patient Protection and 
Affordable Care Act (42 U.S.C. 300u-11) is repealed.
    (b) Rescission of Unobligated Funds.--Of the funds made available 
by such section 4002, the unobligated balance is rescinded.

SEC. 2203. RESCINDING UNOBLIGATED BALANCES FOR CO-OP PROGRAM.

    Of the funds made available under section 1322(g) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18042(g)), the 
unobligated balance is rescinded.

                          CHAPTER 2--MEDICAID

SEC. 2211. REVISION OF PROVIDER TAX INDIRECT GUARANTEE THRESHOLD.

    Section 1903(w)(4)(C)(ii) of the Social Security Act (42 U.S.C. 
1396b(w)(4)(C)(ii)) is amended by inserting ``and for portions of 
fiscal years beginning on or after October 1, 2012,'' after ``October 
1, 2011,''.

SEC. 2212. REBASING OF STATE DSH ALLOTMENTS FOR FISCAL YEAR 2022.

    Section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f)) 
is amended--
            (1) by redesignating paragraph (9) as paragraph (10);
            (2) in paragraph (3)(A) by striking ``paragraphs (6), (7), 
        and (8)'' and inserting ``paragraphs (6), (7), (8), and (9)''; 
        and
            (3) by inserting after paragraph (8) the following new 
        paragraph:
            ``(9) Rebasing of state dsh allotments for fiscal year 
        2022.--With respect to fiscal 2022, for purposes of applying 
        paragraph (3)(A) to determine the DSH allotment for a State, 
        the amount of the DSH allotment for the State under paragraph 
        (3) for fiscal year 2021 shall be treated as if it were such 
        amount as reduced under paragraph (7).''.

SEC. 2213. REPEAL OF MEDICAID AND CHIP MAINTENANCE OF EFFORT 
              REQUIREMENTS UNDER PPACA.

    (a) Repeal of PPACA Medicaid MOE.--Section 1902 of the Social 
Security Act (42 U.S.C. 1396a) is amended by striking subsection (gg).
    (b) Repeal of PPACA CHIP MOE.--Section 2105(d)(3) of the Social 
Security Act (42 U.S.C. 1397ee(d)(3)) is amended--
            (1) by striking subparagraph (A);
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively; and
            (3) in the paragraph heading, by striking ``Continuation of 
        eligibility standards for children until october 1, 2019'' and 
        inserting ``Continuity of coverage''.
    (c) Conforming Amendments.--
            (1) Section 1902(a) of the Social Security Act (42 U.S.C. 
        1396a(a)) is amended by striking paragraph (74).
            (2) Effective January 1, 2014, paragraph (14) of section 
        1902(e) (as added by section 2002(a) of Public Law 111-148) is 
        amended by striking the third sentence of subparagraph (A).
    (d) Effective Date.--Except as provided in subsection (c)(2), the 
amendments made by this section shall take effect on the date of the 
enactment of this section.

SEC. 2214. MEDICAID PAYMENTS TO TERRITORIES.

    (a) Limit on Payments.--Section 1108(g) of the Social Security Act 
(42 U.S.C. 1308(g)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``paragraphs (3) and (5)''; and
                    (B) by inserting ``paragraph (3)'' after ``and 
                subject to'';
            (2) in paragraph (4), by striking ``(3), and'' and all that 
        follows through ``of this subsection'' and inserting ``and (3) 
        of this subsection''; and
            (3) by striking paragraph (5).
    (b) FMAP.--The first sentence of section 1905(b) of the Social 
Security Act (42 U.S.C. 1396d(b)) is amended by striking ``shall be 55 
percent'' and inserting ``shall be 50 percent''.

SEC. 2215. REPEALING BONUS PAYMENTS FOR ENROLLMENT UNDER MEDICAID AND 
              CHIP.

    (a) In General.--Paragraphs (3) and (4) of section 2105(a) of the 
Social Security Act (42 U.S.C. 1397ee(a)) are repealed.
    (b) Rescission of Unobligated Funds.--Of the funds made available 
by section 2105(a)(3) of the Social Security Act, the unobligated 
balance is rescinded.
    (c) Conforming Changes.--
            (1) Availability of excess funds for performance bonuses.--
        Section 2104(n)(2) of the Social Security Act (42 U.S.C. 
        1397dd(n)(2)) is amended by striking subparagraph (D).
            (2) Outreach or coverage benchmarks.--Section 2111(b)(3) of 
        the Social Security Act (42 U.S.C. 1397kk(b)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by inserting ``or'' 
                        after the semicolon at the end; and
                            (ii) by striking clause (ii); and
                    (B) by striking subparagraph (C).

                     Subtitle C--Financial Services

SEC. 2301. TABLE OF CONTENTS.

    The table of contents for this subtitle is as follows:

Sec. 2301. Table of contents.
                  Chapter 1--Orderly Liquidation Fund

Sec. 2311. Repeal of liquidation authority.
            Chapter 2--Home Affordable Modification Program

Sec. 2321. Short title.
Sec. 2322. Congressional findings.
Sec. 2323. Termination of authority.
Sec. 2324. Sense of Congress.
           Chapter 3--Bureau of Consumer Financial Protection

Sec. 2331. Bringing the Bureau of Consumer Financial Protection into 
                            the regular appropriations process.
         Chapter 4--Repeal of the Office of Financial Research

Sec. 2341. Repeal of the Office of Financial Research.

                  CHAPTER 1--ORDERLY LIQUIDATION FUND

SEC. 2311. REPEAL OF LIQUIDATION AUTHORITY.

    (a) In General.--Title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is hereby repealed and any Federal law amended 
by such title shall, on and after the date of enactment of this Act, be 
effective as if title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act had not been enacted.
    (b) Conforming Amendments.--
            (1) Dodd-frank wall street reform and consumer protection 
        act.--The Dodd-Frank Wall Street Reform and Consumer Protection 
        Act is amended--
                    (A) in the table of contents for such Act, by 
                striking all items relating to title II;
                    (B) in section 165(d)(6), by striking ``, a 
                receiver appointed under title II,'';
                    (C) in section 716(g), by striking ``or a covered 
                financial company under title II'';
                    (D) in section 1105(e)(5), by striking ``amount of 
                any securities issued under that chapter 31 for such 
                purpose shall be treated in the same manner as 
                securities issued under section 208(n)(5)(E)'' and 
                inserting ``issuances of such securities under that 
                chapter 31 for such purpose shall by treated as public 
                debt transactions of the United States, and the 
                proceeds from the sale of any obligations acquired by 
                the Secretary under this paragraph shall be deposited 
                into the Treasury of the United States as miscellaneous 
                receipts''; and
                    (E) in section 1106(c)(2), by amending subparagraph 
                (A) to read as follows:
                    ``(A) require the company to file a petition for 
                bankruptcy under section 301 of title 11, United States 
                Code; or''.
            (2) Federal deposit insurance act.--Section 10(b)(3) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended 
        by striking ``, or of such nonbank financial company supervised 
        by the Board of Governors or bank holding company described in 
        section 165(a) of the Financial Stability Act of 2010, for the 
        purpose of implementing its authority to provide for orderly 
        liquidation of any such company under title II of that Act''.
            (3) Federal reserve act.--Section 13(3) of the Federal 
        Reserve Act is amended--
                    (A) in subparagraph (B)--
                            (i) in clause (ii), by striking ``, 
                        resolution under title II of the Dodd-Frank 
                        Wall Street Reform and Consumer Protection Act, 
                        or'' and inserting ``or is subject to 
                        resolution under''; and
                            (ii) in clause (iii), by striking ``, 
                        resolution under title II of the Dodd-Frank 
                        Wall Street Reform and Consumer Protection Act, 
                        or'' and inserting ``or resolution under''; and
                    (B) by striking subparagraph (E).

            CHAPTER 2--HOME AFFORDABLE MODIFICATION PROGRAM

SEC. 2321. SHORT TITLE.

    This chapter may be cited as the ``HAMP Termination Act of 2012''.

SEC. 2322. CONGRESSIONAL FINDINGS.

    The Congress finds the following:
            (1) According to the Department of the Treasury--
                    (A) the Home Affordable Modification Program (HAMP) 
                is designed to ``help as many as 3 to 4 million 
                financially struggling homeowners avoid foreclosure by 
                modifying loans to a level that is affordable for 
                borrowers now and sustainable over the long term''; and
                    (B) as of February 2012, only 782,609 active 
                permanent mortgage modifications were made under HAMP.
            (2) Many homeowners whose HAMP modifications were canceled 
        suffered because they made futile payments and some of those 
        homeowners were even forced into foreclosure.
            (3) The Special Inspector General for TARP reported that 
        HAMP ``benefits only a small portion of distressed homeowners, 
        offers others little more than false hope, and in certain cases 
        causes more harm than good''.
            (4) Approximately $30 billion was obligated by the 
        Department of the Treasury to HAMP, however, approximately only 
        $2.54 billion has been disbursed.
            (5) Terminating HAMP would save American taxpayers 
        approximately $2.84 billion, according to the Congressional 
        Budget Office.

SEC. 2323. TERMINATION OF AUTHORITY.

    Section 120 of the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5230) is amended by adding at the end the following new 
subsection:
    ``(c) Termination of Authority To Provide New Assistance Under the 
Home Affordable Modification Program.--
            ``(1) In general.--Except as provided under paragraph (2), 
        after the date of the enactment of this subsection the 
        Secretary may not provide any assistance under the Home 
        Affordable Modification Program under the Making Home 
        Affordable initiative of the Secretary, authorized under this 
        Act, on behalf of any homeowner.
            ``(2) Protection of existing obligations on behalf of 
        homeowners already extended an offer to participate in the 
        program.--Paragraph (1) shall not apply with respect to 
        assistance provided on behalf of a homeowner who, before the 
        date of the enactment of this subsection, was extended an offer 
        to participate in the Home Affordable Modification Program on a 
        trial or permanent basis.
            ``(3) Deficit reduction.--
                    ``(A) Use of unobligated funds.--Notwithstanding 
                any other provision of this title, the amounts 
                described in subparagraph (B) shall not be available 
                after the date of the enactment of this subsection for 
                obligation or expenditure under the Home Affordable 
                Modification Program of the Secretary, but should be 
                covered into the General Fund of the Treasury and 
                should be used only for reducing the budget deficit of 
                the Federal Government.
                    ``(B) Identification of unobligated funds.--The 
                amounts described in this subparagraph are any amounts 
                made available under title I of the Emergency Economic 
                Stabilization Act of 2008 that--
                            ``(i) have been allocated for use, but not 
                        yet obligated as of the date of the enactment 
                        of this subsection, under the Home Affordable 
                        Modification Program of the Secretary; and
                            ``(ii) are not necessary for providing 
                        assistance under such Program on behalf of 
                        homeowners who, pursuant to paragraph (2), may 
                        be provided assistance after the date of the 
                        enactment of this subsection.
            ``(4) Study of use of program by members of the armed 
        forces, veterans, and gold star recipients.--
                    ``(A) Study.--The Secretary shall conduct a study 
                to determine the extent of usage of the Home Affordable 
                Modification Program by, and the impact of such Program 
                on, covered homeowners.
                    ``(B) Report.--Not later than the expiration of the 
                90-day period beginning on the date of the enactment of 
                this subsection, the Secretary shall submit to the 
                Congress a report setting forth the results of the 
                study under subparagraph (A) and identifying best 
                practices, derived from studying the Home Affordable 
                Modification Program, that could be applied to existing 
                mortgage assistance programs available to covered 
                homeowners.
                    ``(C) Covered homeowner.--For purposes of this 
                subsection, the term `covered homeowner' means a 
                homeowner who is--
                            ``(i) a member of the Armed Forces of the 
                        United States on active duty or the spouse or 
                        parent of such a member;
                            ``(ii) a veteran, as such term is defined 
                        in section 101 of title 38, United States Code; 
                        or
                            ``(iii) eligible to receive a Gold Star 
                        lapel pin under section 1126 of title 10, 
                        United States Code, as a widow, parent, or next 
                        of kin of a member of the Armed Forces person 
                        who died in a manner described in subsection 
                        (a) of such section.
            ``(5) Publication of member availability for assistance.--
        Not later than 5 days after the date of the enactment of this 
        subsection, the Secretary of the Treasury shall publish to its 
        Website on the World Wide Web in a prominent location, large 
        point font, and boldface type the following statement: `The 
        Home Affordable Modification Program (HAMP) has been 
        terminated. If you are having trouble paying your mortgage and 
        need help contacting your lender or servicer for purposes of 
        negotiating or acquiring a loan modification, please contact 
        your Member of Congress to assist you in contacting your lender 
        or servicer for the purpose of negotiating or acquiring a loan 
        modification.'.
            ``(6) Notification to hamp applicants required.--Not later 
        than 30 days after the date of the enactment of this 
        subsection, the Secretary of the Treasury shall inform each 
        individual who applied for the Home Affordable Modification 
        Program and will not be considered for a modification under 
        such Program due to termination of such Program under this 
        subsection--
                    ``(A) that such Program has been terminated;
                    ``(B) that loan modifications under such Program 
                are no longer available;
                    ``(C) of the name and contact information of such 
                individual's Member of Congress; and
                    ``(D) that the individual should contact his or her 
                Member of Congress to assist the individual in 
                contacting the individual's lender or servicer for the 
                purpose of negotiating or acquiring a loan 
                modification.''.

SEC. 2324. SENSE OF CONGRESS.

    The Congress encourages banks to work with homeowners to provide 
loan modifications to those that are eligible. The Congress also 
encourages banks to work and assist homeowners and prospective 
homeowners with foreclosure prevention programs and information on loan 
modifications.

           CHAPTER 3--BUREAU OF CONSUMER FINANCIAL PROTECTION

SEC. 2331. BRINGING THE BUREAU OF CONSUMER FINANCIAL PROTECTION INTO 
              THE REGULAR APPROPRIATIONS PROCESS.

    Section 1017 of the Consumer Financial Protection Act of 2010 is 
amended--
            (1) in subsection (a)--
                    (A) by amending the heading of such subsection to 
                read as follows: ``Budget, Financial Management, and 
                Audit.--'';
                    (B) by striking paragraphs (1), (2), and (3);
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (1) and (2), respectively; and
                    (D) by striking subparagraphs (E) and (F) of 
                paragraph (1), as so redesignated;
            (2) by striking subsections (b), (c), and (d);
            (3) by redesignating subsection (e) as subsection (b); and
            (4) in subsection (b), as so redesignated--
                    (A) by striking paragraphs (1), (2), and (3) and 
                inserting the following:
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated $200,000,000 to carry out this title for 
        each of fiscal years 2012 and 2013.''; and
                    (B) by redesignating paragraph (4) as paragraph 
                (2).

         CHAPTER 4--REPEAL OF THE OFFICE OF FINANCIAL RESEARCH

SEC. 2341. REPEAL OF THE OFFICE OF FINANCIAL RESEARCH.

    (a) In General.--Subtitle B of title I of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby repealed.
    (b) Conforming Amendments to the Dodd-Frank Act.--The Dodd-Frank 
Wall Street Reform and Consumer Protection Act is amended--
            (1) in section 102(a), by striking paragraph (5);
            (2) in section 111--
                    (A) in subsection (b)(2)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B), 
                        (C), (D), and (E) as subparagraphs (A), (B), 
                        (C), and (D), respectively;
                    (B) in subsection (c)(1), by striking 
                ``subparagraphs (C), (D), and (E)'' and inserting 
                ``subparagraphs (B), (C), and (D)'';
            (3) in section 112--
                    (A) in subsection (a)(2)--
                            (i) in subparagraph (A), by striking 
                        ``direct the Office of Financial Research to'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C), 
                        (D), (E), (F), (G), (H), (I), (J), (K), (L), 
                        (M), and (N) as subparagraphs (B), (C), (D), 
                        (E), (F), (G), (H), (I), (J), (K), (L), and 
                        (M), respectively; and
                    (B) in subsection (d)--
                            (i) in paragraph (1), by striking ``the 
                        Office of Financial Research, member agencies, 
                        and'' and inserting ``member agencies and'';
                            (ii) in paragraph (2), by striking ``the 
                        Office of Financial Research, any member 
                        agency, and'' and inserting ``any member agency 
                        and'';
                            (iii) in paragraph (3)--
                                    (I) by striking ``, acting through 
                                the Office of Financial Research,'' 
                                each place it appears; and
                                    (II) in subparagraph (B), by 
                                striking ``the Office of Financial 
                                Research or''; and
                            (iv) in paragraph (5)(A), by striking ``, 
                        the Office of Financial Research,'';
            (4) in section 116, by striking ``, acting through the 
        Office of Financial Research,'' each place it appears; and
            (5) by striking section 118.
    (c) Conforming Amendment to the Paperwork Reduction Act.--Effective 
as of the date specified in section 1100H of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act, section 1100D(a) of such Act is 
amended to read as follows:
    ``(a) Designation as an Independent Agency.--Section 3502(5) of 
subchapter I of chapter 35 of title 44, United States Code (commonly 
known as the Paperwork Reduction Act) is amended by inserting `the 
Bureau of Consumer Financial Protection,' after `the Securities and 
Exchange Commission,'.''.
    (d) Technical Amendments.--The table of contents for the Dodd-Frank 
Wall Street Reform and Consumer Protection Act is amended--
            (1) by striking the item relating to section 118; and
            (2) by striking the items relating to subtitle B of title 
        I.

                 Subtitle D--Committee on the Judiciary

SEC. 2401. SHORT TITLE.

    This title may be cited as the ``Help Efficient, Accessible, Low-
cost, Timely Healthcare (HEALTH) Act of 2012''.

SEC. 2402. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS.

    The time for the commencement of a health care lawsuit shall be 3 
years after the date of manifestation of injury or 1 year after the 
claimant discovers, or through the use of reasonable diligence should 
have discovered, the injury, whichever occurs first. In no event shall 
the time for commencement of a health care lawsuit exceed 3 years after 
the date of manifestation of injury unless tolled for any of the 
following--
            (1) upon proof of fraud;
            (2) intentional concealment; or
            (3) the presence of a foreign body, which has no 
        therapeutic or diagnostic purpose or effect, in the person of 
        the injured person.
Actions by a minor shall be commenced within 3 years from the date of 
the alleged manifestation of injury except that actions by a minor 
under the full age of 6 years shall be commenced within 3 years of 
manifestation of injury or prior to the minor's 8th birthday, whichever 
provides a longer period. Such time limitation shall be tolled for 
minors for any period during which a parent or guardian and a health 
care provider or health care organization have committed fraud or 
collusion in the failure to bring an action on behalf of the injured 
minor.

SEC. 2403. COMPENSATING PATIENT INJURY.

    (a) Unlimited Amount of Damages for Actual Economic Losses in 
Health Care Lawsuits.--In any health care lawsuit, nothing in this 
title shall limit a claimant's recovery of the full amount of the 
available economic damages, notwithstanding the limitation in 
subsection (b).
    (b) Additional Noneconomic Damages.--In any health care lawsuit, 
the amount of noneconomic damages, if available, may be as much as 
$250,000, regardless of the number of parties against whom the action 
is brought or the number of separate claims or actions brought with 
respect to the same injury.
    (c) No Discount of Award for Noneconomic Damages.--For purposes of 
applying the limitation in subsection (b), future noneconomic damages 
shall not be discounted to present value. The jury shall not be 
informed about the maximum award for noneconomic damages. An award for 
noneconomic damages in excess of $250,000 shall be reduced either 
before the entry of judgment, or by amendment of the judgment after 
entry of judgment, and such reduction shall be made before accounting 
for any other reduction in damages required by law. If separate awards 
are rendered for past and future noneconomic damages and the combined 
awards exceed $250,000, the future noneconomic damages shall be reduced 
first.
    (d) Fair Share Rule.--In any health care lawsuit, each party shall 
be liable for that party's several share of any damages only and not 
for the share of any other person. Each party shall be liable only for 
the amount of damages allocated to such party in direct proportion to 
such party's percentage of responsibility. Whenever a judgment of 
liability is rendered as to any party, a separate judgment shall be 
rendered against each such party for the amount allocated to such 
party. For purposes of this section, the trier of fact shall determine 
the proportion of responsibility of each party for the claimant's harm.

SEC. 2404. MAXIMIZING PATIENT RECOVERY.

    (a) Court Supervision of Share of Damages Actually Paid to 
Claimants.--In any health care lawsuit, the court shall supervise the 
arrangements for payment of damages to protect against conflicts of 
interest that may have the effect of reducing the amount of damages 
awarded that are actually paid to claimants. In particular, in any 
health care lawsuit in which the attorney for a party claims a 
financial stake in the outcome by virtue of a contingent fee, the court 
shall have the power to restrict the payment of a claimant's damage 
recovery to such attorney, and to redirect such damages to the claimant 
based upon the interests of justice and principles of equity. In no 
event shall the total of all contingent fees for representing all 
claimants in a health care lawsuit exceed the following limits:
            (1) Forty percent of the first $50,000 recovered by the 
        claimant(s).
            (2) Thirty-three and one-third percent of the next $50,000 
        recovered by the claimant(s).
            (3) Twenty-five percent of the next $500,000 recovered by 
        the claimant(s).
            (4) Fifteen percent of any amount by which the recovery by 
        the claimant(s) is in excess of $600,000.
    (b) Applicability.--The limitations in this section shall apply 
whether the recovery is by judgment, settlement, mediation, 
arbitration, or any other form of alternative dispute resolution. In a 
health care lawsuit involving a minor or incompetent person, a court 
retains the authority to authorize or approve a fee that is less than 
the maximum permitted under this section. The requirement for court 
supervision in the first two sentences of subsection (a) applies only 
in civil actions.

SEC. 2405. PUNITIVE DAMAGES.

    (a) In General.--Punitive damages may, if otherwise permitted by 
applicable State or Federal law, be awarded against any person in a 
health care lawsuit only if it is proven by clear and convincing 
evidence that such person acted with malicious intent to injure the 
claimant, or that such person deliberately failed to avoid unnecessary 
injury that such person knew the claimant was substantially certain to 
suffer. In any health care lawsuit where no judgment for compensatory 
damages is rendered against such person, no punitive damages may be 
awarded with respect to the claim in such lawsuit. No demand for 
punitive damages shall be included in a health care lawsuit as 
initially filed. A court may allow a claimant to file an amended 
pleading for punitive damages only upon a motion by the claimant and 
after a finding by the court, upon review of supporting and opposing 
affidavits or after a hearing, after weighing the evidence, that the 
claimant has established by a substantial probability that the claimant 
will prevail on the claim for punitive damages. At the request of any 
party in a health care lawsuit, the trier of fact shall consider in a 
separate proceeding--
            (1) whether punitive damages are to be awarded and the 
        amount of such award; and
            (2) the amount of punitive damages following a 
        determination of punitive liability.
If a separate proceeding is requested, evidence relevant only to the 
claim for punitive damages, as determined by applicable State law, 
shall be inadmissible in any proceeding to determine whether 
compensatory damages are to be awarded.
    (b) Determining Amount of Punitive Damages.--
            (1) Factors considered.--In determining the amount of 
        punitive damages, if awarded, in a health care lawsuit, the 
        trier of fact shall consider only the following--
                    (A) the severity of the harm caused by the conduct 
                of such party;
                    (B) the duration of the conduct or any concealment 
                of it by such party;
                    (C) the profitability of the conduct to such party;
                    (D) the number of products sold or medical 
                procedures rendered for compensation, as the case may 
                be, by such party, of the kind causing the harm 
                complained of by the claimant;
                    (E) any criminal penalties imposed on such party, 
                as a result of the conduct complained of by the 
                claimant; and
                    (F) the amount of any civil fines assessed against 
                such party as a result of the conduct complained of by 
                the claimant.
            (2) Maximum award.--The amount of punitive damages, if 
        awarded, in a health care lawsuit may be as much as $250,000 or 
        as much as two times the amount of economic damages awarded, 
        whichever is greater. The jury shall not be informed of this 
        limitation.
    (c) No Punitive Damages for Products That Comply With FDA 
Standards.--
            (1) In general.--
                    (A) No punitive damages may be awarded against the 
                manufacturer or distributor of a medical product, or a 
                supplier of any component or raw material of such 
                medical product, based on a claim that such product 
                caused the claimant's harm where--
                            (i)(I) such medical product was subject to 
                        premarket approval, clearance, or licensure by 
                        the Food and Drug Administration with respect 
                        to the safety of the formulation or performance 
                        of the aspect of such medical product which 
                        caused the claimant's harm or the adequacy of 
                        the packaging or labeling of such medical 
                        product; and
                            (II) such medical product was so approved, 
                        cleared, or licensed; or
                            (ii) such medical product is generally 
                        recognized among qualified experts as safe and 
                        effective pursuant to conditions established by 
                        the Food and Drug Administration and applicable 
                        Food and Drug Administration regulations, 
                        including without limitation those related to 
                        packaging and labeling, unless the Food and 
                        Drug Administration has determined that such 
                        medical product was not manufactured or 
                        distributed in substantial compliance with 
                        applicable Food and Drug Administration 
                        statutes and regulations.
                    (B) Rule of construction.--Subparagraph (A) may not 
                be construed as establishing the obligation of the Food 
                and Drug Administration to demonstrate affirmatively 
                that a manufacturer, distributor, or supplier referred 
                to in such subparagraph meets any of the conditions 
                described in such subparagraph.
            (2) Liability of health care providers.--A health care 
        provider who prescribes, or who dispenses pursuant to a 
        prescription, a medical product approved, licensed, or cleared 
        by the Food and Drug Administration shall not be named as a 
        party to a product liability lawsuit involving such product and 
        shall not be liable to a claimant in a class action lawsuit 
        against the manufacturer, distributor, or seller of such 
        product. Nothing in this paragraph prevents a court from 
        consolidating cases involving health care providers and cases 
        involving products liability claims against the manufacturer, 
        distributor, or product seller of such medical product.
            (3) Packaging.--In a health care lawsuit for harm which is 
        alleged to relate to the adequacy of the packaging or labeling 
        of a drug which is required to have tamper-resistant packaging 
        under regulations of the Secretary of Health and Human Services 
        (including labeling regulations related to such packaging), the 
        manufacturer or product seller of the drug shall not be held 
        liable for punitive damages unless such packaging or labeling 
        is found by the trier of fact by clear and convincing evidence 
        to be substantially out of compliance with such regulations.
            (4) Exception.--Paragraph (1) shall not apply in any health 
        care lawsuit in which--
                    (A) a person, before or after premarket approval, 
                clearance, or licensure of such medical product, 
                knowingly misrepresented to or withheld from the Food 
                and Drug Administration information that is required to 
                be submitted under the Federal Food, Drug, and Cosmetic 
                Act (21 U.S.C. 301 et seq.) or section 351 of the 
                Public Health Service Act (42 U.S.C. 262) that is 
                material and is causally related to the harm which the 
                claimant allegedly suffered;
                    (B) a person made an illegal payment to an official 
                of the Food and Drug Administration for the purpose of 
                either securing or maintaining approval, clearance, or 
                licensure of such medical product; or
                    (C) the defendant caused the medical product which 
                caused the claimant's harm to be misbranded or 
                adulterated (as such terms are used in chapter V of the 
                Federal Food, Drug, and Cosmetic Act (21 U.S.C. 351 et 
                seq.)).

SEC. 2406. AUTHORIZATION OF PAYMENT OF FUTURE DAMAGES TO CLAIMANTS IN 
              HEALTH CARE LAWSUITS.

    (a) In General.--In any health care lawsuit, if an award of future 
damages, without reduction to present value, equaling or exceeding 
$50,000 is made against a party with sufficient insurance or other 
assets to fund a periodic payment of such a judgment, the court shall, 
at the request of any party, enter a judgment ordering that the future 
damages be paid by periodic payments, in accordance with the Uniform 
Periodic Payment of Judgments Act promulgated by the National 
Conference of Commissioners on Uniform State Laws.
    (b) Applicability.--This section applies to all actions which have 
not been first set for trial or retrial before the effective date of 
this title.

SEC. 2407. DEFINITIONS.

    In this title:
            (1) Alternative dispute resolution system; adr.--The term 
        ``alternative dispute resolution system'' or ``ADR'' means a 
        system that provides for the resolution of health care lawsuits 
        in a manner other than through a civil action brought in a 
        State or Federal court.
            (2) Claimant.--The term ``claimant'' means any person who 
        brings a health care lawsuit, including a person who asserts or 
        claims a right to legal or equitable contribution, indemnity, 
        or subrogation, arising out of a health care liability claim or 
        action, and any person on whose behalf such a claim is asserted 
        or such an action is brought, whether deceased, incompetent, or 
        a minor.
            (3) Compensatory damages.--The term ``compensatory 
        damages'' means objectively verifiable monetary losses incurred 
        as a result of the provision of, use of, or payment for (or 
        failure to provide, use, or pay for) health care services or 
        medical products, such as past and future medical expenses, 
        loss of past and future earnings, cost of obtaining domestic 
        services, loss of employment, and loss of business or 
        employment opportunities, damages for physical and emotional 
        pain, suffering, inconvenience, physical impairment, mental 
        anguish, disfigurement, loss of enjoyment of life, loss of 
        society and companionship, loss of consortium (other than loss 
        of domestic service), hedonic damages, injury to reputation, 
        and all other nonpecuniary losses of any kind or nature. The 
        term ``compensatory damages'' includes economic damages and 
        noneconomic damages, as such terms are defined in this section.
            (4) Contingent fee.--The term ``contingent fee'' includes 
        all compensation to any person or persons which is payable only 
        if a recovery is effected on behalf of one or more claimants.
            (5) Economic damages.--The term ``economic damages'' means 
        objectively verifiable monetary losses incurred as a result of 
        the provision of, use of, or payment for (or failure to 
        provide, use, or pay for) health care services or medical 
        products, such as past and future medical expenses, loss of 
        past and future earnings, cost of obtaining domestic services, 
        loss of employment, and loss of business or employment 
        opportunities.
            (6) Health care lawsuit.--The term ``health care lawsuit'' 
        means any health care liability claim concerning the provision 
        of health care goods or services or any medical product 
        affecting interstate commerce, or any health care liability 
        action concerning the provision of health care goods or 
        services or any medical product affecting interstate commerce, 
        brought in a State or Federal court or pursuant to an 
        alternative dispute resolution system, against a health care 
        provider, a health care organization, or the manufacturer, 
        distributor, supplier, marketer, promoter, or seller of a 
        medical product, regardless of the theory of liability on which 
        the claim is based, or the number of claimants, plaintiffs, 
        defendants, or other parties, or the number of claims or causes 
        of action, in which the claimant alleges a health care 
        liability claim. Such term does not include a claim or action 
        which is based on criminal liability; which seeks civil fines 
        or penalties paid to Federal, State, or local government; or 
        which is grounded in antitrust.
            (7) Health care liability action.--The term ``health care 
        liability action'' means a civil action brought in a State or 
        Federal court or pursuant to an alternative dispute resolution 
        system, against a health care provider, a health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, regardless 
        of the theory of liability on which the claim is based, or the 
        number of plaintiffs, defendants, or other parties, or the 
        number of causes of action, in which the claimant alleges a 
        health care liability claim.
            (8) Health care liability claim.--The term ``health care 
        liability claim'' means a demand by any person, whether or not 
        pursuant to ADR, against a health care provider, health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, including, 
        but not limited to, third-party claims, cross-claims, counter-
        claims, or contribution claims, which are based upon the 
        provision of, use of, or payment for (or the failure to 
        provide, use, or pay for) health care services or medical 
        products, regardless of the theory of liability on which the 
        claim is based, or the number of plaintiffs, defendants, or 
        other parties, or the number of causes of action.
            (9) Health care organization.--The term ``health care 
        organization'' means any person or entity which is obligated to 
        provide or pay for health benefits under any health plan, 
        including any person or entity acting under a contract or 
        arrangement with a health care organization to provide or 
        administer any health benefit.
            (10) Health care provider.--The term ``health care 
        provider'' means any person or entity required by State or 
        Federal laws or regulations to be licensed, registered, or 
        certified to provide health care services, and being either so 
        licensed, registered, or certified, or exempted from such 
        requirement by other statute or regulation.
            (11) Health care goods or services.--The term ``health care 
        goods or services'' means any goods or services provided by a 
        health care organization, provider, or by any individual 
        working under the supervision of a health care provider, that 
        relates to the diagnosis, prevention, or treatment of any human 
        disease or impairment, or the assessment or care of the health 
        of human beings.
            (12) Malicious intent to injure.--The term ``malicious 
        intent to injure'' means intentionally causing or attempting to 
        cause physical injury other than providing health care goods or 
        services.
            (13) Medical product.--The term ``medical product'' means a 
        drug, device, or biological product intended for humans, and 
        the terms ``drug'', ``device'', and ``biological product'' have 
        the meanings given such terms in sections 201(g)(1) and 201(h) 
        of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321(g)(1) 
        and (h)) and section 351(a) of the Public Health Service Act 
        (42 U.S.C. 262(a)), respectively, including any component or 
        raw material used therein, but excluding health care services.
            (14) Noneconomic damages.--The term ``noneconomic damages'' 
        means damages for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation, and all other 
        nonpecuniary losses of any kind or nature.
            (15) Punitive damages.--The term ``punitive damages'' means 
        damages awarded, for the purpose of punishment or deterrence, 
        and not solely for compensatory purposes, against a health care 
        provider, health care organization, or a manufacturer, 
        distributor, or supplier of a medical product. Punitive damages 
        are neither economic nor noneconomic damages.
            (16) Recovery.--The term ``recovery'' means the net sum 
        recovered after deducting any disbursements or costs incurred 
        in connection with prosecution or settlement of the claim, 
        including all costs paid or advanced by any person. Costs of 
        health care incurred by the plaintiff and the attorneys' office 
        overhead costs or charges for legal services are not deductible 
        disbursements or costs for such purpose.
            (17) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the Northern 
        Mariana Islands, the Trust Territory of the Pacific Islands, 
        and any other territory or possession of the United States, or 
        any political subdivision thereof.

SEC. 2408. EFFECT ON OTHER LAWS.

    (a) Vaccine Injury.--
            (1) To the extent that title XXI of the Public Health 
        Service Act establishes a Federal rule of law applicable to a 
        civil action brought for a vaccine-related injury or death--
                    (A) this title does not affect the application of 
                the rule of law to such an action; and
                    (B) any rule of law prescribed by this title in 
                conflict with a rule of law of such title XXI shall not 
                apply to such action.
            (2) If there is an aspect of a civil action brought for a 
        vaccine-related injury or death to which a Federal rule of law 
        under title XXI of the Public Health Service Act does not 
        apply, then this title or otherwise applicable law (as 
        determined under this title) will apply to such aspect of such 
        action.
    (b) Other Federal Law.--Except as provided in this section, nothing 
in this title shall be deemed to affect any defense available to a 
defendant in a health care lawsuit or action under any other provision 
of Federal law.

SEC. 2409. STATE FLEXIBILITY AND PROTECTION OF STATES' RIGHTS.

    (a) Health Care Lawsuits.--The provisions governing health care 
lawsuits set forth in this title preempt, subject to subsections (b) 
and (c), State law to the extent that State law prevents the 
application of any provisions of law established by or under this 
title. The provisions governing health care lawsuits set forth in this 
title supersede chapter 171 of title 28, United States Code, to the 
extent that such chapter--
            (1) provides for a greater amount of damages or contingent 
        fees, a longer period in which a health care lawsuit may be 
        commenced, or a reduced applicability or scope of periodic 
        payment of future damages, than provided in this title; or
            (2) prohibits the introduction of evidence regarding 
        collateral source benefits, or mandates or permits subrogation 
        or a lien on collateral source benefits.
    (b) Protection of States' Rights and Other Laws.--(1) Any issue 
that is not governed by any provision of law established by or under 
this title (including State standards of negligence) shall be governed 
by otherwise applicable State or Federal law.
    (2) This title shall not preempt or supersede any State or Federal 
law that imposes greater procedural or substantive protections for 
health care providers and health care organizations from liability, 
loss, or damages than those provided by this title or create a cause of 
action.
    (c) State Flexibility.--No provision of this title shall be 
construed to preempt--
            (1) any State law (whether effective before, on, or after 
        the date of the enactment of this Act) that specifies a 
        particular monetary amount of compensatory or punitive damages 
        (or the total amount of damages) that may be awarded in a 
        health care lawsuit, regardless of whether such monetary amount 
        is greater or lesser than is provided for under this title, 
        notwithstanding section 2303(a); or
            (2) any defense available to a party in a health care 
        lawsuit under any other provision of State or Federal law.

SEC. 2410. APPLICABILITY; EFFECTIVE DATE.

    This subtitle shall apply to any health care lawsuit brought in a 
Federal or State court, or subject to an alternative dispute resolution 
system, that is initiated on or after the date of the enactment of this 
Act, except that any health care lawsuit arising from an injury 
occurring prior to the date of the enactment of this Act shall be 
governed by the applicable statute of limitations provisions in effect 
at the time the injury occurred.

        Subtitle E--Committee on Oversight and Government Reform

SEC. 2501. RETIREMENT CONTRIBUTIONS.

    (a) Civil Service Retirement System.--
            (1) Individual contributions.--Section 8334(c) of title 5, 
        United States Code, is amended--
                    (A) by striking ``(c) Each'' and inserting ``(c)(1) 
                Each''; and
                    (B) by adding at the end the following:
    ``(2) Notwithstanding any other provision of this subsection, the 
applicable percentage of basic pay under this subsection shall--
            ``(A) except as provided in subparagraph (B) or (C), for 
        purposes of computing an amount--
                    ``(i) for a period in calendar year 2013, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2012, plus an additional 1.5 percentage 
                points;
                    ``(ii) for a period in calendar year 2014, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2013 (as determined under clause (i)), 
                plus an additional 0.5 percentage point;
                    ``(iii) for a period in calendar year 2015, 2016, 
                or 2017, be equal to the applicable percentage under 
                this subsection for the preceding calendar year (as 
                determined under clause (ii) or this clause, as the 
                case may be), plus an additional 1.0 percentage point; 
                and
                    ``(iv) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                subsection for calendar year 2017 (as determined under 
                clause (iii));
            ``(B) for purposes of computing an amount with respect to a 
        Member for Member service--
                    ``(i) for a period in calendar year 2013, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2012, plus an additional 2.5 percentage 
                points;
                    ``(ii) for a period in calendar year 2014, 2015, 
                2016, or 2017, be equal to the applicable percentage 
                under this subsection for the preceding calendar year 
                (as determined under clause (i) or this clause, as the 
                case may be), plus an additional 1.5 percentage points; 
                and
                    ``(iii) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                subsection for calendar year 2017 (as determined under 
                clause (ii)); and
            ``(C) for purposes of computing an amount with respect to a 
        Member or employee for Congressional employee service--
                    ``(i) for a period in calendar year 2013, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2012, plus an additional 2.5 percentage 
                points;
                    ``(ii) for a period in calendar year 2014, 2015, 
                2016, or 2017, be equal to the applicable percentage 
                under this subsection for the preceding calendar year 
                (as determined under clause (i) or this clause, as the 
                case may be), plus an additional 1.5 percentage points; 
                and
                    ``(iii) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                subsection for calendar year 2017 (as determined under 
                clause (ii)).
    ``(3)(A) Notwithstanding subsection (a)(2), any excess 
contributions under subsection (a)(1)(A) (including the portion of any 
deposit under this subsection allocable to excess contributions) shall, 
if made by an employee of the United States Postal Service or the 
Postal Regulatory Commission, be deposited to the credit of the Postal 
Service Fund under section 2003 of title 39, rather than the Civil 
Service Retirement and Disability Fund.
    ``(B) For purposes of this paragraph, the term `excess 
contributions', as used with respect to contributions made under 
subsection (a)(1)(A) by an employee of the United States Postal Service 
or the Postal Regulatory Commission, means the amount by which--
            ``(i) deductions from basic pay of such employee which are 
        made under subsection (a)(1)(A), exceed
            ``(ii) deductions from basic pay of such employee which 
        would have been so made if paragraph (2) had not been 
        enacted.''.
            (2) Government contributions.--Section 8334(a)(1)(B) of 
        title 5, United States Code, is amended--
                    (A) in clause (i), by striking ``Except as provided 
                in clause (ii),'' and inserting ``Except as provided in 
                clause (ii) or (iii),''; and
                    (B) by adding at the end the following:
    ``(iii) The amount to be contributed under clause (i) shall, with 
respect to a period in any year beginning after December 31, 2012, be 
equal to--
            ``(I) the amount which would otherwise apply under clause 
        (i) with respect to such period, reduced by
            ``(II) the amount by which, with respect to such period, 
        the withholding under subparagraph (A) exceeds the amount which 
        would otherwise have been withheld from the basic pay of the 
        employee or elected official involved under subparagraph (A) 
        based on the percentage applicable under subsection (c) for 
        calendar year 2012.''.
    (b) Federal Employees' Retirement System.--
            (1) Individual contributions.--Section 8422(a)(3) of title 
        5, United States Code, is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C);
                    (B) by inserting after subparagraph (A) the 
                following:
    ``(B) Notwithstanding any other provision of this paragraph, the 
applicable percentage under this paragraph for civilian service by 
employees or Members other than revised annuity employees shall--
            ``(i) except as provided in clause (ii) or (iii), for 
        purposes of computing an amount--
                    ``(I) for a period in calendar year 2013, be equal 
                to the applicable percentage under this paragraph for 
                calendar year 2012, plus an additional 1.5 percentage 
                points;
                    ``(II) for a period in calendar year 2014, be equal 
                to the applicable percentage under this paragraph for 
                calendar year 2013 (as determined under subclause (I)), 
                plus an additional 0.5 percentage point;
                    ``(III) for a period in calendar year 2015, 2016, 
                or 2017, be equal to the applicable percentage under 
                this paragraph for the preceding calendar year (as 
                determined under subclause (II) or this subclause, as 
                the case may be), plus an additional 1.0 percentage 
                point; and
                    ``(IV) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                paragraph for calendar year 2017 (as determined under 
                subclause (III));
            ``(ii) for purposes of computing an amount with respect to 
        a Member--
                    ``(I) for a period in calendar year 2013, be equal 
                to the applicable percentage under this paragraph for 
                calendar year 2012, plus an additional 2.5 percentage 
                points;
                    ``(II) for a period in calendar year 2014, 2015, 
                2016, or 2017, be equal to the applicable percentage 
                under this paragraph for the preceding calendar year 
                (as determined under subclause (I) or this subclause, 
                as the case may be), plus an additional 1.5 percentage 
                points; and
                    ``(III) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                paragraph for calendar year 2017 (as determined under 
                subclause (II)); and
            ``(iii) for purposes of computing an amount with respect to 
        a Congressional employee--
                    ``(I) for a period in calendar year 2013, 2014, 
                2015, 2016, or 2017, be equal to the applicable 
                percentage under this paragraph for the preceding 
                calendar year (including as increased under this 
                subclause, if applicable), plus an additional 1.5 
                percentage points; and
                    ``(II) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                paragraph for calendar year 2017 (as determined under 
                subclause (I)).''; and
                    (C) in subparagraph (C) (as so redesignated by 
                subparagraph (A))--
                            (i) by striking ``9.3'' each place it 
                        appears and inserting ``12''; and
                            (ii) by striking ``9.8'' each place it 
                        appears and inserting ``12.5''.
            (2) Government contributions.--Section 8423(a)(2) of title 
        5, United States Code, is amended--
                    (A) by striking ``(2)'' and inserting ``(2)(A)''; 
                and
                    (B) by adding at the end the following:
    ``(B)(i) Subject to clauses (ii) and (iii), for purposes of any 
period in any year beginning after December 31, 2012, the normal-cost 
percentage under this subsection shall be determined and applied as if 
section 501(b)(1) of the Sequester Replacement Reconciliation Act of 
2012 had not been enacted.
    ``(ii) Any contributions under this subsection in excess of the 
amounts which (but for clause (i)) would otherwise have been payable 
shall be applied toward reducing the unfunded liability of the Civil 
Service Retirement System.
    ``(iii) After the unfunded liability of the Civil Service 
Retirement System has been eliminated, as determined by the Office, 
Government contributions under this subsection shall be determined and 
made disregarding this subparagraph.
    ``(iv) The preceding provisions of this subparagraph shall be 
disregarded for purposes of determining the contributions payable by 
the United States Postal Service and the Postal Regulatory 
Commission.''.

SEC. 2502. ANNUITY SUPPLEMENT.

    Section 8421(a) of title 5, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)'';
            (2) in paragraph (2), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)''; and
            (3) by adding at the end the following:
    ``(4)(A) Except as provided in subparagraph (B), no annuity 
supplement under this section shall be payable in the case of an 
individual who first becomes subject to this chapter after December 31, 
2012.
    ``(B) Nothing in this paragraph applies in the case of an 
individual separating under subsection (d) or (e) of section 8412.''.

SEC. 2503. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF PAYMENTS FOR ACCRUED 
              OR ACCUMULATED LEAVE.

    (a) Amendments Relating to CSRS.--Section 8351(b) of title 5, 
United States Code, is amended--
            (1) by striking paragraph (2)(A) and inserting the 
        following:
    ``(2)(A) An employee or Member may contribute to the Thrift Savings 
Fund in any pay period any amount of such employee's or Member's basic 
pay for such pay period, and may contribute (by direct transfer to the 
Fund) any part of any payment that the employee or Member receives for 
accumulated and accrued annual or vacation leave under section 5551 or 
5552. Notwithstanding section 2105(e), in this paragraph the term 
`employee' includes an employee of the United States Postal Service or 
of the Postal Regulatory Commission.'';
            (2) by striking subparagraph (B) of paragraph (2); and
            (3) by redesignating subparagraph (C) of paragraph (2) as 
        subparagraph (B).
    (b) Amendments Relating to FERS.--Section 8432(a) of title 5, 
United States Code, is amended--
            (1) by striking all that precedes paragraph (3) and 
        inserting the following:
    ``(a)(1) An employee or Member--
            ``(A) may contribute to the Thrift Savings Fund in any pay 
        period, pursuant to an election under subsection (b), any 
        amount of such employee's or Member's basic pay for such pay 
        period; and
            ``(B) may contribute (by direct transfer to the Fund) any 
        part of any payment that the employee or Member receives for 
        accumulated and accrued annual or vacation leave under section 
        5551 or 5552.
    ``(2) Contributions made under paragraph (1)(A) pursuant to an 
election under subsection (b) shall, with respect to each pay period 
for which such election remains in effect, be made in accordance with a 
program of regular contributions provided in regulations prescribed by 
the Executive Director.''; and
            (2) by adding at the end the following:
    ``(4) Notwithstanding section 2105(e), in this subsection the term 
`employee' includes an employee of the United States Postal Service or 
of the Postal Regulatory Commission.''.
    (c) Regulations.--The Executive Director of the Federal Retirement 
Thrift Investment Board shall promulgate regulations to carry out the 
amendments made by this section.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect 1 year after the date of the enactment of this Act.

                Subtitle F--Committee on Ways and Means

 CHAPTER 1--RECAPTURE OF OVERPAYMENTS RESULTING FROM CERTAIN FEDERALLY 
                      SUBSIDIZED HEALTH INSURANCE

SEC. 2601. RECAPTURE OF OVERPAYMENTS RESULTING FROM CERTAIN FEDERALLY 
              SUBSIDIZED HEALTH INSURANCE.

    (a) In General.--Paragraph (2) of section 36B(f) of the Internal 
Revenue Code of 1986 is amended by striking subparagraph (B).
    (b) Conforming Amendment.--So much of paragraph (2) of section 
36B(f) of such Code, as amended by subsection (a), as precedes 
``advance payments'' is amended to read as follows:
            ``(2) Excess advance payments.--If the''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2013.

  CHAPTER 2--SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE REFUNDABLE 
                    PORTION OF THE CHILD TAX CREDIT

SEC. 2611. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE REFUNDABLE 
              PORTION OF THE CHILD TAX CREDIT.

    (a) In General.--Subsection (d) of section 24 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(5) Identification requirement with respect to 
        taxpayer.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any taxpayer for any taxable year unless the taxpayer 
                includes the taxpayer's Social Security number on the 
                return of tax for such taxable year.
                    ``(B) Joint returns.--In the case of a joint 
                return, the requirement of subparagraph (A) shall be 
                treated as met if the Social Security number of either 
                spouse is included on such return.
                    ``(C) Limitation.--Subparagraph (A) shall not apply 
                to the extent the tentative minimum tax (as defined in 
                section 55(b)(1)(A)) exceeds the credit allowed under 
                section 32.''.
    (b) Omission Treated as Mathematical or Clerical Error.--
Subparagraph (I) of section 6213(g)(2) of such Code is amended to read 
as follows:
                    ``(I) an omission of a correct Social Security 
                number required under section 24(d)(5) (relating to 
                refundable portion of child tax credit), or a correct 
                TIN under section 24(e) (relating to child tax credit), 
                to be included on a return,''.
    (c) Conforming Amendment.--Subsection (e) of section 24 of such 
Code is amended by inserting ``With Respect to Qualifying Children'' 
after ``Identification Requirement'' in the heading thereof.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

                 CHAPTER 3--HUMAN RESOURCES PROVISIONS

SEC. 2621. REPEAL OF THE PROGRAM OF BLOCK GRANTS TO STATES FOR SOCIAL 
              SERVICES.

    (a) Repeals.--Sections 2001 through 2007 of the Social Security Act 
(42 U.S.C. 1397-1397f) are repealed.
    (b) Conforming Amendments.--
            (1) Section 404(d) of the Social Security Act (42 U.S.C. 
        604(d)) is amended--
                    (A) in paragraph (1), by striking ``any or all of 
                the following provisions of law:'' and all that follows 
                through ``The'' and inserting ``the'';
                    (B) in paragraph (3)--
                            (i) by striking ``rules'' and all that 
                        follows through ``any amount paid'' and 
                        inserting ``rules.--Any amount paid'';
                            (ii) by striking ``a provision of law 
                        specified in paragraph (1)'' and inserting 
                        ``the Child Care and Development Block Grant 
                        Act of 1990''; and
                            (iii) by striking subparagraph (B); and
                    (C) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2).
            (2) Section 422(b) of the Social Security Act (42 U.S.C. 
        622(b)) is amended--
                    (A) in paragraph (1)(A)--
                            (i) by striking ``administers or 
                        supervises'' and inserting ``administered or 
                        supervised''; and
                            (ii) by striking ``subtitle 1 of title XX'' 
                        and inserting ``subtitle A of title XX (as in 
                        effect before the repeal of such subtitle)''; 
                        and
                    (B) in paragraph (2), by striking ``under subtitle 
                1 of title XX,''.
            (3) Section 471(a) of the Social Security Act (42 U.S.C. 
        671(a)) is amended--
                    (A) in paragraph (4), by striking ``, under 
                subtitle 1 of title XX of this Act,''; and
                    (B) in paragraph (8), by striking ``XIX, or XX'' 
                and inserting ``or XIX''.
            (4) Section 472(h)(1) of the Social Security Act (42 U.S.C. 
        672(h)(1)) is amended by striking the second sentence.
            (5) Section 473(b) of the Social Security Act (42 U.S.C. 
        673(b)) is amended--
                    (A) in paragraph (1), by striking ``(3)'' and 
                inserting ``(2)'';
                    (B) in paragraph (4), by striking ``paragraphs (1) 
                and (2)'' and inserting ``paragraph (1)''; and
                    (C) by striking paragraph (2) and redesignating 
                paragraphs (3) and (4) as paragraphs (2) and (3), 
                respectively.
            (6) Section 504(b)(6) of the Social Security Act (42 U.S.C. 
        704(b)(6)) is amended in each of subparagraphs (A) and (B) by 
        striking ``XIX, or XX'' and inserting ``or XIX''.
            (7) Section 1101(a)(1) of the Social Security Act (42 
        U.S.C. 1301(a)(1)) is amended by striking the penultimate 
        sentence.
            (8) Section 1128(h) of the Social Security Act (42 U.S.C. 
        1320a-7(h)) is amended--
                    (A) by adding ``or'' at the end of paragraph (2); 
                and
                    (B) by striking paragraph (3) and redesignating 
                paragraph (4) as paragraph (3).
            (9) Section 1128A(i)(1) of the Social Security Act (42 
        U.S.C. 1320a-7a(i)(1)) is amended by striking ``or subtitle 1 
        of title XX''.
            (10) Section 1132(a)(1) of the Social Security Act (42 
        U.S.C. 1320b-2(a)(1)) is amended by striking ``XIX, or XX'' and 
        inserting ``or XIX''.
            (11) Section 1902(e)(13)(F)(iii) of the Social Security Act 
        (42 U.S.C. 1396a(e)(13)(F)(iii)) is amended--
                    (A) by striking ``Exclusions'' and inserting 
                ``Exclusion''; and
                    (B) by striking ``an agency that determines 
                eligibility for a program established under the Social 
                Services Block Grant established under title XX or''.
            (12) The heading for title XX of the Social Security Act is 
        amended by striking ``BLOCK GRANTS TO STATES FOR SOCIAL 
        SERVICES'' and inserting ``HEALTH PROFESSIONS DEMONSTRATIONS 
        AND ENVIRONMENTAL HEALTH CONDITION DETECTION''.
            (13) The heading for subtitle A of title XX of the Social 
        Security Act is amended by striking ``Block Grants to States 
        for Social Services'' and inserting ``Health Professions 
        Demonstrations and Environmental Health Condition Detection''.
            (14) Section 16(k)(5)(B)(i) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2025(k)(5)(B)(i)) is amended by striking ``, 
        or title XX,''.
            (15) Section 402(b)(3) of the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1612(b)(3)) is amended by striking subparagraph (B) and 
        redesignating subparagraph (C) as subparagraph (B).
            (16) Section 245A(h)(4)(I) of the Immigration Reform and 
        Control Act of 1986 (8 U.S.C. 1255a(h)(4)(I)) is amended by 
        striking ``, XVI, and XX'' and inserting ``and XVI''.
            (17) Section 17 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1766) is amended--
                    (A) in subsection (a)(2)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``--'' and all that 
                                follows through ``(i)'';
                                    (II) by striking ``or'' at the end 
                                of clause (i); and
                                    (III) by striking clause (ii); and
                            (ii) in subparagraph (D)(ii), by striking 
                        ``or title XX''; and
                    (B) in subsection (o)(2)(B)--
                            (i) by striking ``or title XX'' each place 
                        it appears; and
                            (ii) by striking ``or XX''.
            (18) Section 201(b) of the Indian Child Welfare Act of 1978 
        (25 U.S.C. 1931(b)) is amended by striking ``titles IV-B and 
        XX'' each place it appears and inserting ``part B of title 
        IV''.
            (19) Section 3803(c)(2)(C) of title 31, United States Code, 
        is amended by striking clause (vi) and redesignating clauses 
        (vii) through (xvi) as clauses (vi) through (xv), respectively.
            (20) Section 14502(d)(3) of title 40, United States Code, 
        is amended--
                    (A) by striking ``and title XX''; and
                    (B) by striking ``, 1397 et seq.''.
            (21) Section 2006(a)(15) of the Public Health Service Act 
        (42 U.S.C. 300z-5(a)(15)) is amended by striking ``and title 
        XX''.
            (22) Section 203(b)(3) of the Older Americans Act of 1965 
        (42 U.S.C. 3013(b)(3)) is amended by striking ``XIX, and XX'' 
        and inserting ``and XIX''.
            (23) Section 213 of the Older Americans Act of 1965 (42 
        U.S.C. 3020d) is amended by striking ``or title XX''.
            (24) Section 306(d) of the Older Americans Act of 1965 (42 
        U.S.C. 3026(d)) is amended in each of paragraphs (1) and (2) by 
        striking ``titles XIX and XX'' and inserting ``title XIX''.
            (25) Section 2605 of the Low-Income Home Energy Assistance 
        Act of 1981 (42 U.S.C. 8624) is amended in each of subsections 
        (b)(4) and (j) by striking ``under title XX of the Social 
        Security Act,''.
            (26) Section 602 of the Child Development Associate 
        Scholarship Assistance Act of 1985 (42 U.S.C. 10901) is 
        repealed.
            (27) Section 3(d)(1) of the Assisted Suicide Funding 
        Restriction Act of 1997 (42 U.S.C. 14402(d)(1)) is amended by 
        striking subparagraph (C) and redesignating subparagraphs (D) 
        through (K) as subparagraphs (C) through (J), respectively.
    (c) Effective Date.--The repeals and amendments made by this 
section shall take effect on the date of enactment of this Act.

                   Subtitle G--Sequester Replacement

SEC. 2701. SHORT TITLE.

    This title may be cited as the ``Sequester Replacement Act of 
2012''.

SEC. 2702. PROTECTING VETERANS PROGRAMS FROM SEQUESTER.

    Section 256(e)(2)(E) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is repealed.

SEC. 2703. ACHIEVING $19 BILLION IN DISCRETIONARY SAVINGS.

    (a) Revised 2013 Discretionary Spending Limit.--Paragraph (2) of 
section 251(c) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended to read as follows:
            ``(2) with respect to fiscal year 2013, for the 
        discretionary category, $1,047,000,000,000 in new budget 
        authority;''.
    (b) Discretionary Savings.--Section 251A(7)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended to read as 
follows:
                    ``(A) Fiscal year 2013.--
                            ``(i) Fiscal year 2013 adjustment.--On 
                        January 2, 2013, the discretionary category set 
                        forth in section 251(c)(2) shall be decreased 
                        by $19,104,000,000 in budget authority.
                            ``(ii) Supplemental sequestration order.--
                        On January 15, 2013, OMB shall issue a 
                        supplemental sequestration report for fiscal 
                        year 2013 and take the form of a final 
                        sequestration report as set forth in section 
                        254(f)(2) and using the procedures set forth in 
                        section 253(f), to eliminate any discretionary 
                        spending breach of the spending limit set forth 
                        in section 251(c)(2) as adjusted by clause (i), 
                        and the President shall order a sequestration, 
                        if any, as required by such report.''.

SEC. 2704. CONFORMING AMENDMENTS TO SECTION 314 OF THE CONGRESSIONAL 
              BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974.

    Section 314(a) of the Congressional Budget Act of 1974 is amended 
to read as follows:
    ``(a) Adjustments.--
            ``(1) In general.--The chair of the Committee on the Budget 
        of the House of Representatives or the Senate may make 
        adjustments as set forth in paragraph (2) for a bill or joint 
        resolution, amendment thereto or conference report thereon, by 
        the amount of new budget authority and outlays flowing 
        therefrom in the same amount as required by section 251(b) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985.
            ``(2) Matters to be adjusted.--The chair of the Committee 
        on the Budget of the House of Representatives or the Senate may 
        make the adjustments referred to in paragraph (1) to--
                    ``(A) the allocations made pursuant to the 
                appropriate concurrent resolution on the budget 
                pursuant to section 302(a);
                    ``(B) the budgetary aggregates as set forth in the 
                appropriate concurrent resolution on the budget; and
                    ``(C) the discretionary spending limits, if any, 
                set forth in the appropriate concurrent resolution on 
                the budget.''.

SEC. 2705. TREATMENT FOR PAYGO PURPOSES.

    The budgetary effects of this Act and any amendment made by it 
shall not be entered on either PAYGO scorecard maintained pursuant to 
section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

SEC. 2706. ELIMINATION OF THE FISCAL YEAR 2013 SEQUESTRATION FOR 
              DEFENSE DIRECT SPENDING.

    Any sequestration order issued by the President under the Balanced 
Budget and Emergency Deficit Control Act of 1985 to carry out 
reductions to direct spending for the defense function (050) for fiscal 
year 2013 pursuant to section 251A of such Act shall have no force or 
effect.
                                 <all>