[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 59 Enrolled Bill (ENR)]

        H.J.Res.59

                     One Hundred Thirteenth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Thursday,
           the third day of January, two thousand and thirteen


                            Joint Resolution


 
  Making continuing appropriations for fiscal year 2014, and for other 
                                purposes.

    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, That

                DIVISION A--BIPARTISAN BUDGET AGREEMENT

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This division may be cited as the ``Bipartisan 
Budget Act of 2013''.
    (b) Table of Contents.--The table of contents of this division is 
as follows:

          DIVISION A--BUDGET ENFORCEMENT AND DEFICIT REDUCTION

Sec. 1. Short title and table of contents.

                       TITLE I--BUDGET ENFORCEMENT

  Subtitle A--Amendments to the Balanced Budget and Emergency Deficit 
                           Control Act of 1985

Sec. 101. Amendments to the Balanced Budget and Emergency Deficit 
          Control Act of 1985.

             Subtitle B--Establishing a Congressional Budget

Sec. 111. Fiscal year 2014 budget resolution.
Sec. 112. Limitation on advance appropriations in the Senate.
Sec. 113. Rule of construction in the House of Representatives.
Sec. 114. Additional Senate budget enforcement.
Sec. 115. Authority for fiscal year 2015 budget resolution in the House 
          of Representatives.
Sec. 116. Authority for fiscal year 2015 budget resolution in the 
          Senate.
Sec. 117. Exclusion of savings from PAYGO scorecards.
Sec. 118. Exercise of rulemaking powers.

                    Subtitle C--Technical Corrections

Sec. 121. Technical corrections to the Balanced Budget and Emergency 
          Deficit Control Act of 1985.
Sec. 122. Technical corrections to the Congressional Budget Act of 1974.

             TITLE II--PREVENTION OF WASTE, FRAUD, AND ABUSE

Sec. 201. Improving the collection of unemployment insurance 
          overpayments.
Sec. 202. Strengthening Medicaid Third-Party Liability.
Sec. 203. Restriction on access to the death master file.
Sec. 204. Identification of inmates requesting or receiving improper 
          payments.

                      TITLE III--NATURAL RESOURCES

Sec. 301. Ultra-deepwater and unconventional natural gas and other 
          petroleum resources.
Sec. 302. Amendment to the Mineral Leasing Act.
Sec. 303. Approval of agreement with Mexico.
Sec. 304. Amendment to the Outer Continental Shelf Lands Act.
Sec. 305. Federal oil and gas royalty prepayment cap.
Sec. 306. Strategic Petroleum Reserve.

           TITLE IV--FEDERAL CIVILIAN AND MILITARY RETIREMENT

Sec. 401. Increase in contributions to Federal Employees Retirement 
          System for new employees.
Sec. 402. Foreign Service Pension System.
Sec. 403. Annual adjustment of retired pay and retainer pay amounts for 
          retired members of the Armed Forces under age 62.

                        TITLE V--HIGHER EDUCATION

Sec. 501. Default reduction program.
Sec. 502. Elimination of nonprofit servicing contracts.

                        TITLE VI--TRANSPORTATION

Sec. 601. Aviation security service fees.
Sec. 602. Transportation cost reimbursement.
Sec. 603. Sterile areas at airports.

                   TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Extension of customs user fees.
Sec. 702. Limitation on allowable government contractor compensation 
          costs.
Sec. 703. Pension Benefit Guaranty Corporation premium rate increases.
Sec. 704. Cancellation of Unobligated Balances.
Sec. 705. Conservation planning technical assistance user fees.
Sec. 706. Self plus one coverage.
    (c) References.--Except as expressly provided otherwise, any 
reference to ``this Act'' contained in any division of this Act shall 
be treated as referring only to the provisions of that division.

                      TITLE I--BUDGET ENFORCEMENT
  Subtitle A--Amendments to the Balanced Budget and Emergency Deficit 
                          Control Act of 1985

SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT 
              CONTROL ACT OF 1985.

    (a) Revised Discretionary Spending Limits.--Section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
striking paragraphs (1) through (10) and inserting the following new 
paragraphs:
        ``(1) for fiscal year 2014--
            ``(A) for the revised security category, $520,464,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $491,773,000,000 in new budget authority;
        ``(2) for fiscal year 2015--
            ``(A) for the revised security category, $521,272,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $492,356,000,000 in new budget authority;
        ``(3) for fiscal year 2016--
            ``(A) for the revised security category, $577,000,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $530,000,000,000 in new budget authority;
        ``(4) for fiscal year 2017--
            ``(A) for the revised security category, $590,000,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $541,000,000,000 in new budget authority;
        ``(5) for fiscal year 2018--
            ``(A) for the revised security category, $603,000,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $553,000,000,000 in new budget authority;
        ``(6) for fiscal year 2019--
            ``(A) for the revised security category, $616,000,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $566,000,000,000 in new budget authority;
        ``(7) for fiscal year 2020--
            ``(A) for the revised security category, $630,000,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $578,000,000,000 in new budget authority; and
        ``(8) for fiscal year 2021--
            ``(A) for the revised security category, $644,000,000,000 
        in new budget authority; and
            ``(B) for the revised nonsecurity category, 
        $590,000,000,000 in new budget authority;''.
    (b) Direct Spending Adjustments for Fiscal Years 2014 and 2015.--
(1) Section 251A of the Balanced Budget and Emergency Deficit Control 
Act of 1985, as redesignated by subsection (d), is amended by adding at 
the end the following new paragraph:
        ``(10) Implementing direct spending reductions for fiscal years 
    2014 and 2015.--(A) OMB shall make the calculations necessary to 
    implement the direct spending reductions calculated pursuant to 
    paragraphs (3) and (4) without regard to the amendment made to 
    section 251(c) revising the discretionary spending limits for 
    fiscal years 2014 and 2015 by the Bipartisan Budget Act of 2013.
        ``(B) Paragraph (5)(B) shall not be implemented for fiscal 
    years 2014 and 2015.''.
    (2) Paragraph (5)(B) of section 251A of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as redesignated by subsection 
(d)(2)(C) of this section, is amended by striking ``On'' and inserting 
``Except as provided by paragraph (10), on''.
    (c) Extension of Direct Spending Reductions for Fiscal Years 2022 
and 2023.--Paragraph (6), as redesignated by subsection (d)(2)(C) of 
this section, of section 251A of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by inserting ``(A)'' before ``On 
the date'' and by adding at the end the following new subparagraph:
        ``(B) On the dates OMB issues its sequestration preview reports 
    for fiscal year 2022 and for fiscal year 2023, pursuant to section 
    254(c), the President shall order a sequestration, effective upon 
    issuance such that--
            ``(i) the percentage reduction for nonexempt direct 
        spending for the defense function is the same percent as the 
        percentage reduction for nonexempt direct spending for the 
        defense function for fiscal year 2021 calculated under 
        paragraph (3)(B); and
            ``(ii) the percentage reduction for nonexempt direct 
        spending for nondefense functions is the same percent as the 
        percentage reduction for nonexempt direct spending for 
        nondefense functions for fiscal year 2021 calculated under 
        paragraph (4)(B).''.
    (d) Conforming Amendments.--Part C of title II of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) 
is amended--
        (1) in section 250(c)(4) (2 U.S.C. 900(c)(4)), by adding at the 
    end the following:
        ``(D) The term `revised security category' means discretionary 
    appropriations in budget function 050.
        ``(E) The term `revised nonsecurity category' means 
    discretionary appropriations other than in budget function 050.
        ``(F) The term `category' means the subsets of discretionary 
    appropriations in section 251(c). Discretionary appropriations in 
    each of the categories shall be those designated in the joint 
    explanatory statement accompanying the conference report on the 
    Balanced Budget Act of 1997. New accounts or activities shall be 
    categorized only after consultation with the Committees on 
    Appropriations and the Budget of the House of Representatives and 
    the Senate and that consultation shall, to the extent practicable, 
    include written communication to such committees that affords such 
    committees the opportunity to comment before official action is 
    taken with respect to new accounts or activities.''; and
        (2) in section 251A (2 U.S.C. 901a)--
            (A) by striking, in the matter preceding paragraph (1), 
        ``Unless'' through ``as follows:'' and inserting the following: 
        ``Discretionary appropriations and direct spending accounts 
        shall be reduced in accordance with this section as follows:'';
            (B) by striking paragraphs (1) and (2);
            (C) by redesignating paragraphs (3) through (11) as 
        paragraphs (1) through (9), respectively;
            (D) in paragraph (2), as redesignated, by striking 
        ``paragraph (3)'' and inserting ``paragraph (1)'';
            (E) in paragraph (3), as redesignated, by striking 
        ``paragraph (4)'' each place it appears and inserting 
        ``paragraph (2)'';
            (F) in paragraph (4), as redesignated, by striking 
        ``paragraph (4)'' each place it appears and inserting 
        ``paragraph (2)'';
            (G) in paragraph (5), as redesignated--
                (i) by striking ``paragraph (5)'' each place it appears 
            and inserting ``paragraph (3)''; and
                (ii) by striking ``paragraph (6)'' each place it 
            appears and inserting ``paragraph (4)'';
            (H) in paragraph (6), as redesignated--
                (i) by striking ``paragraph (4)'' and inserting 
            ``paragraph (2)''; and
                (ii) by striking ``paragraphs (5) and (6)'' and 
            inserting ``paragraphs (3) and (4)'';
            (I) in paragraph (7), as redesignated--
                (i) by striking ``paragraph (8)'' and inserting 
            ``paragraph (6)''; and
                (ii) by striking ``paragraph (6)'' each place it 
            appears and inserting ``paragraph (4)''; and
            (J) in paragraph (9), as redesignated, by striking 
        ``paragraph (4)'' and inserting ``paragraph (2)''.

            Subtitle B--Establishing a Congressional Budget

SEC. 111. FISCAL YEAR 2014 BUDGET RESOLUTION.

    (a) Fiscal Year 2014.--For the purpose of enforcing the 
Congressional Budget Act of 1974 for fiscal year 2014, and enforcing, 
in the Senate, budgetary points of order in prior concurrent 
resolutions on the budget, the allocations, aggregates, and levels 
provided for in subsection (b) shall apply in the same manner as for a 
concurrent resolution on the budget for fiscal year 2014 with 
appropriate budgetary levels for fiscal year 2014 and for fiscal years 
2015 through 2023.
    (b) Committee Allocations, Aggregates, and Levels.--The Chairmen of 
the Committee on the Budget of the House of Representatives and the 
Senate shall each submit a statement for publication in the 
Congressional Record as soon as practicable after the date of enactment 
of this Act that includes--
        (1) for the Committee on Appropriations of that House, 
    committee allocations for fiscal year 2014 consistent with the 
    discretionary spending limits set forth in this Act for the purpose 
    of enforcing section 302 of the Congressional Budget Act of 1974;
        (2) for all committees of that House other than the Committee 
    on Appropriations, committee allocations for--
            (A) fiscal year 2014;
            (B) fiscal years 2014 through 2018 in the Senate only; and
            (C) fiscal years 2014 through 2023;
    consistent with the May 2013 baseline of the Congressional Budget 
    Office adjusted to account for the budgetary effects of this Act 
    and legislation enacted prior to this Act but not included in the 
    May 2013 baseline of the Congressional Budget Office, for the 
    purpose of enforcing section 302 of the Congressional Budget Act of 
    1974;
        (3) aggregate spending levels for fiscal year 2014 in 
    accordance with the allocations established under paragraphs (1) 
    and (2), for the purpose of enforcing section 311 of the 
    Congressional Budget Act of 1974;
        (4) aggregate revenue levels for--
            (A) fiscal year 2014;
            (B) fiscal years 2014 through 2018 in the Senate only; and
            (C) fiscal years 2014 through 2023;
    consistent with the May 2013 baseline of the Congressional Budget 
    Office adjusted to account for the budgetary effects of this Act 
    and legislation enacted prior to this Act but not included in the 
    May 2013 baseline of the Congressional Budget Office, for the 
    purpose of enforcing section 311 of the Congressional Budget Act of 
    1974; and
        (5) in the Senate only, levels of Social Security revenues and 
    outlays for fiscal year 2014 and for the periods of fiscal years 
    2014 through 2018 and 2014 through 2023 consistent with the May 
    2013 baseline of the Congressional Budget Office adjusted to 
    account for the budgetary effects of this Act and legislation 
    enacted prior to this Act but not included in the May 2013 baseline 
    of the Congressional Budget Office, for the purpose of enforcing 
    sections 302 and 311 of the Congressional Budget Act of 1974.
    (c) Further Adjustments.--After the date of enactment of this Act, 
the Chairman of the Committee on the Budget of the House of 
Representatives may reduce the aggregates, allocations, and other 
budgetary levels included in the statement of the Chairman of the 
Committee on the Budget of the House of Representatives referred to in 
subsection (b) to reflect the budgetary effects of any legislation 
enacted during the 113th Congress that reduces the deficit.

SEC. 112. LIMITATION ON ADVANCE APPROPRIATIONS IN THE SENATE.

    (a) Point of Order Against Advance Appropriations in the Senate.--
        (1) In general.--
            (A) Point of order.--Except as provided in paragraph (2), 
        it shall not be in order in the Senate to consider any bill, 
        joint resolution, motion, amendment, amendment between the 
        Houses, or conference report that would provide an advance 
        appropriation.
            (B) Definition.--In this subsection, the term ``advance 
        appropriation'' means any new budget authority provided in a 
        bill or joint resolution making appropriations for fiscal year 
        2014 that first becomes available for any fiscal year after 
        2014 or any new budget authority provided in a bill or joint 
        resolution making appropriations for fiscal year 2015 that 
        first becomes available for any fiscal year after 2015.
        (2) Exceptions.--Advance appropriations may be provided--
            (A) for fiscal years 2015 and 2016 for programs, projects, 
        activities, or accounts identified in a statement submitted to 
        the Congressional Record by the Chairman of the Committee on 
        the Budget of the Senate under the heading ``Accounts 
        Identified for Advance Appropriations'' in an aggregate amount 
        not to exceed $28,852,000,000 in new budget authority in each 
        fiscal year;
            (B) for the Corporation for Public Broadcasting; and
            (C) for the Department of Veterans Affairs for the Medical 
        Services, Medical Support and Compliance, and Medical 
        Facilities accounts of the Veterans Health Administration.
        (3) Supermajority waiver and appeal.--
            (A) Waiver.--In the Senate, paragraph (1) may be waived or 
        suspended only by an affirmative vote of three-fifths of the 
        Members, duly chosen and sworn.
            (B) Appeal.--An affirmative vote of three-fifths of the 
        Members of the Senate, duly chosen and sworn, shall be required 
        to sustain an appeal of the ruling of the Chair on a point of 
        order raised under paragraph (1).
        (4) Form of point of order.--A point of order under paragraph 
    (1) may be raised by a Senator as provided in section 313(e) of the 
    Congressional Budget Act of 1974.
        (5) Conference reports.--When the Senate is considering a 
    conference report on, or an amendment between the Houses in 
    relation to, a bill, upon a point of order being made by any 
    Senator pursuant to this subsection, and such point of order being 
    sustained, such material contained in such conference report or 
    amendment between the Houses shall be stricken, and the Senate 
    shall proceed to consider the question of whether the Senate shall 
    recede from its amendment and concur with a further amendment, or 
    concur in the House amendment with a further amendment, as the case 
    may be, which further amendment shall consist of only that portion 
    of the conference report or House amendment, as the case may be, 
    not so stricken. Any such motion in the Senate shall be debatable. 
    In any case in which such point of order is sustained against a 
    conference report (or Senate amendment derived from such conference 
    report by operation of this paragraph), no further amendment shall 
    be in order.
        (6) Inapplicability.--In the Senate, section 402 of S. Con. 
    Res. 13 (111th Congress) shall no longer apply.
    (b) Expiration.--Subsection (a) shall expire if a concurrent 
resolution on the budget for fiscal year 2015 is agreed to by the 
Senate and House of Representatives pursuant to section 301 of the 
Congressional Budget Act of 1974.

SEC. 113. RULE OF CONSTRUCTION IN THE HOUSE OF REPRESENTATIVES.

    In the House of Representatives, for the remainder of the 113th 
Congress, the provisions of H. Con. Res. 25 (113th Congress), as deemed 
in force by H. Res. 243 (113th Congress), shall remain in force to the 
extent its budgetary levels are not superseded by this subtitle or by 
further action of the House of Representatives.

SEC. 114. ADDITIONAL SENATE BUDGET ENFORCEMENT.

    (a) Senate Pay-As-You-Go Scorecard.--
        (1) In general.--Effective on the date of enactment of this 
    Act, for the purpose of enforcing section 201 of S. Con. Res. 21 
    (110th Congress), the Chairman of the Committee on the Budget of 
    the Senate shall reduce any balances of direct spending and 
    revenues for any fiscal year to zero.
        (2) Fiscal year 2015.--After April 15, 2014, but not later than 
    May 15, 2014, for the purpose of enforcing section 201 of S. Con. 
    Res. 21 (110th Congress), the Chairman of the Committee on the 
    Budget of the Senate shall reduce any balances of direct spending 
    and revenues for any fiscal year to zero.
        (3) Publication.--Upon resetting the Senate paygo scorecard 
    pursuant to paragraph (2), the Chairman of the Committee on the 
    Budget of the Senate shall publish a notification of such action in 
    the Congressional Record.
    (b) Further Adjustments.--With respect to any allocations, 
aggregates, or levels set or adjustments made pursuant to this 
subtitle, sections 412 through 414 of S. Con. Res. 13 (111th Congress) 
shall remain in effect.
    (c) Deficit-Neutral Reserve Fund To Replace Sequestration.--The 
Chairman of the Committee on the Budget of the Senate may revise the 
allocations of a committee or committees, aggregates, and other 
appropriate levels and limits set pursuant to this subtitle for one or 
more bills, joint resolutions, amendments, motions, or conference 
reports that amend section 251A of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901a) to repeal or revise the 
enforcement procedures established under that section, by the amounts 
provided in such legislation for those purposes, provided that such 
legislation would not increase the deficit over the period of the total 
of fiscal years 2014 through 2023. For purposes of determining deficit-
neutrality under this subsection, the Chairman may include the 
estimated effects of any amendment or amendments to the discretionary 
spending limits in section 251(c) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901(c)).
    (d) Additional Deficit-Neutral Reserve Funds.--In the Senate only, 
sections 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313, 
314, 315, 316, 317, 318, 319, 320, 322, 323, 324, 325, 326, 327, 328, 
329, 330, 331, 332, 333, 334, 335, 338, 339, 340, 341, 344, 348, 349, 
350, 353, 354, 356, 361, 363, 364, 365, 366, 367, 368, 369, 371, 376, 
378, 379, and 383 of S. Con. Res. 8 (113th Congress), as passed the 
Senate, shall have force and effect.
    (e) Expiration.--Subsections (a)(2), (c), and (d) shall expire if a 
concurrent resolution on the budget for fiscal year 2015 is agreed to 
by the Senate and House of Representatives pursuant to section 301 of 
the Congressional Budget Act of 1974.

SEC. 115. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION IN THE HOUSE 
              OF REPRESENTATIVES.

    (a) Fiscal Year 2015.--If a concurrent resolution on the budget for 
fiscal year 2015 has not been adopted by April 15, 2014, for the 
purpose of enforcing the Congressional Budget Act of 1974, the 
allocations, aggregates, and levels provided for in subsection (b) 
shall apply in the House of Representatives after April 15, 2014, in 
the same manner as for a concurrent resolution on the budget for fiscal 
year 2015 with appropriate budgetary levels for fiscal year 2015 and 
for fiscal years 2016 through 2024.
    (b) Committee Allocations, Aggregates, and Levels.--In the House of 
Representatives, the Chairman of the Committee on the Budget shall 
submit a statement for publication in the Congressional Record after 
April 15, 2014, but not later than May 15, 2014, containing--
        (1) for the Committee on Appropriations, committee allocations 
    for fiscal year 2015 at the total level as set forth in section 
    251(c)(2) of the Balanced Budget and Emergency Deficit Control Act 
    of 1985 for the purpose of enforcing section 302 of the 
    Congressional Budget Act of 1974;
        (2) for all committees other than the Committee on 
    Appropriations, committee allocations for fiscal year 2015 and for 
    the period of fiscal years 2015 through 2024 at the levels included 
    in the most recent baseline of the Congressional Budget Office, as 
    adjusted for the budgetary effects of any provision of law enacted 
    during the period beginning on the date such baseline is issued and 
    ending on the date of submission of such statement, for the purpose 
    of enforcing section 302 of the Congressional Budget Act of 1974; 
    and
        (3) aggregate spending levels for fiscal year 2015 and 
    aggregate revenue levels for fiscal year 2015 and for the period of 
    fiscal years 2015 through 2024, at the levels included in the most 
    recent baseline of the Congressional Budget Office, as adjusted for 
    the budgetary effects of any provision of law enacted during the 
    period beginning on the date such baseline is issued and ending on 
    the date of submission of such statement, for the purpose of 
    enforcing section 311 of the Congressional Budget Act of 1974.
    (c) Additional Matter.--The statement referred to in subsection (b) 
may also include for fiscal year 2015, the matter contained in title IV 
(reserve funds) and in sections 601, 603(a), 605(a), and 609 of H. Con. 
Res. 25 (113th Congress), as adopted by the House, updated by one 
fiscal year, including updated amounts for section 601.
    (d) Fiscal Year 2015 Allocation to the Committee on 
Appropriations.--If the statement referred to in subsection (b) is not 
filed by May 15, 2014, then the matter referred to in subsection (b)(1) 
shall be submitted by the Chairman of the Committee on the Budget for 
publication in the Congressional Record on the next day that the House 
of Representatives is in session.
    (e) Adjustments.--The Chairman of the Committee on the Budget of 
the House of Representatives may adjust the levels included in the 
statement referred to in subsection (b) to reflect the budgetary 
effects of any legislation enacted during the 113th Congress that 
reduces the deficit or as otherwise necessary.
    (f) Application.--Subsections (a), (b), (c), (d), and (e) shall no 
longer apply if a concurrent resolution on the budget for fiscal year 
2015 is agreed to by the Senate and House of Representatives pursuant 
to section 301 of the Congressional Budget Act of 1974.

SEC. 116. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION IN THE 
              SENATE.

    (a) Fiscal Year 2015.--For the purpose of enforcing the 
Congressional Budget Act of 1974, after April 15, 2014, and enforcing 
budgetary points of order in prior concurrent resolutions on the 
budget, the allocations, aggregates, and levels provided for in 
subsection (b) shall apply in the Senate in the same manner as for a 
concurrent resolution on the budget for fiscal year 2015 with 
appropriate budgetary levels for fiscal years 2014 and 2016 through 
2024.
    (b) Committee Allocations, Aggregates, and Levels.--After April 15, 
2014, but not later than May 15, 2014, the Chairman of the Committee on 
the Budget of the Senate shall file--
        (1) for the Committee on Appropriations, committee allocations 
    for fiscal years 2014 and 2015 consistent with the discretionary 
    spending limits set forth in this Act for the purpose of enforcing 
    section 302 of the Congressional Budget Act of 1974;
        (2) for all committees other than the Committee on 
    Appropriations, committee allocations for fiscal years 2014, 2015, 
    2015 through 2019, and 2015 through 2024 consistent with the most 
    recent baseline of the Congressional Budget Office for the purpose 
    of enforcing section 302 of the Congressional Budget Act of 1974;
        (3) aggregate spending levels for fiscal years 2014 and 2015 in 
    accordance with the allocations established under paragraphs (1) 
    and (2), for the purpose of enforcing section 311 of the 
    Congressional Budget Act of 1974;
        (4) aggregate revenue levels for fiscal years 2014, 2015, 2015 
    through 2019, and 2015 through 2024 consistent with the most recent 
    baseline of the Congressional Budget Office for the purpose of 
    enforcing section 311 of the Congressional Budget Act of 1974; and
        (5) levels of Social Security revenues and outlays for fiscal 
    years 2014, 2015, 2015 through 2019, and 2015 through 2024 
    consistent with the most recent baseline of the Congressional 
    Budget Office for the purpose of enforcing sections 302 and 311 of 
    the Congressional Budget Act of 1974.
    (c) Additional Matter.--The filing referred to in subsection (b) 
may also include, for fiscal year 2015, the reserve funds included in 
section 114(c) and (d) of this Act, updated by one fiscal year.
    (d) Superseding Previous Statement.--In the Senate, the filing 
referred to in subsection (b) shall supersede the statement referred to 
in section 111(b) of this Act.
    (e) Expiration.--This section shall expire if a concurrent 
resolution on the budget for fiscal year 2015 is agreed to by the 
Senate and House of Representatives pursuant to section 301 of the 
Congressional Budget Act of 1974.

SEC. 117. EXCLUSION OF SAVINGS FROM PAYGO SCORECARDS.

    (a) Statutory Pay-As-You-Go Scorecards.--Notwithstanding section 
1(c) of this division, the budgetary effects of this Act shall not be 
entered on either PAYGO scorecard maintained pursuant to section 4(d) 
of the Statutory Pay-As-You-Go Act of 2010.
    (b) Senate PAYGO Scorecards.--Notwithstanding section 1(c) of this 
division, the budgetary effects of this Act shall not be entered on any 
PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 
21 (110th Congress).

SEC. 118. EXERCISE OF RULEMAKING POWERS.

    The provisions of this subtitle are enacted by the Congress--
        (1) as an exercise of the rulemaking power of the House of 
    Representatives and the Senate, respectively, and as such they 
    shall be considered as part of the rules of each House, 
    respectively, or of that House to which they specifically apply, 
    and such rules shall supersede other rules only to the extent that 
    they are inconsistent therewith; and
        (2) with full recognition of the constitutional right of either 
    House to change such rules (so far as relating to such House) at 
    any time, in the same manner, and to the same extent as in the case 
    of any other rule of such House.

                   Subtitle C--Technical Corrections

SEC. 121. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND EMERGENCY 
              DEFICIT CONTROL ACT OF 1985.

    The Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended as follows:
        (1) In section 252(b)(2)(B), strike ``applicable to budget 
    year'' and insert ``applicable to the budget year''.
        (2) In section 252(c)(1)(C)(i), strike ``paragraph (1)'' and 
    insert ``subsection (b)''.
        (3) In section 254(c)(3)(A), strike ``subsection 252(b)'' and 
    insert ``section 252(b)''.
        (4) In section 254(f)(4), strike ``subsection 252(b)'' and 
    insert ``section 252(b)''.
        (5) In section 255(a), strike ``section 231b(a), 231b(f)(2), 
    231c(a), and 231c(f) of title 45 United States Code'' and insert 
    ``sections 3 and 4 of the Railroad Retirement Act of 1937 (45 
    U.S.C. 231 et seq.)''.
        (6) In section 255(h), in the item relating to Federal Pell 
    Grants, strike ``section 401 Title IV'' and insert ``section 401 of 
    title IV''.
        (7) In the first subsection (j) of section 255 (relating to 
    Split Treatment Programs), move the margins for the list items two 
    ems to the right.
        (8) Redesignate the second subsection (j) of section 255 
    (relating to Identification of Programs) as subsection (k).
        (9) In section 257(b)(2)(A)(i), strike ``differenes'' and 
    insert ``differences''.
        (10) In section 258(a)(1), strike ``section 254(j)'' and insert 
    ``section 254(i)''.

SEC. 122. TECHNICAL CORRECTIONS TO THE CONGRESSIONAL BUDGET ACT OF 
              1974.

    The Congressional Budget Act of 1974 is amended as follows:
        (1) In sections 301(a)(6) and 301(a)(7), strike ``For 
    purposes'' and insert ``for purposes''.
        (2) In section 301(a), in the matter following paragraph (7), 
    strike ``old age'' and insert ``old-age''.
        (3) In section 302(g)(2)(A), strike ``committee on the Budget'' 
    and insert ``Committee on the Budget''.
        (4) In section 305(a)(1), strike ``clause 2(l)(6) of rule XI'' 
    and insert ``clause 4 of rule XIII''.
        (5) In section 305(a)(5), strike ``provisions of rule XXIII'' 
    and insert ``provisions of rule XVIII''.
        (6) In section 305(b)(1), strike ``section 304(a)'' and insert 
    ``section 304''.
        (7) In section 306 strike ``No'' and insert ``(a) In the 
    Senate.--In the Senate, no'', strike ``of either House'' and ``in 
    that House'', strike ``of that House'', and add at the end the 
    following new subsection:
    ``(b) In the House of Representatives.--In the House of 
Representatives, no bill or joint resolution, or amendment thereto, or 
conference report thereon, dealing with any matter which is within the 
jurisdiction of the Committee on the Budget shall be considered unless 
it is a bill or joint resolution which has been reported by the 
Committee on the Budget (or from the consideration of which such 
committee has been discharged) or unless it is an amendment to such a 
bill or joint resolution.''.
        (8) In section 308(d), in the subsection heading, strike 
    ``Scorekeeping Guidelines.--'' and insert ``Scorekeeping 
    Guidelines.--''.
        (9) In section 310(c)(1)(A)(i) and (ii), strike ``under that 
    paragraph by more than'' and insert ``under that paragraph by more 
    than--''.
        (10) In section 314(d)(2), strike subparagraph (A), redesignate 
    subparagraphs (B) and (C) as subparagraphs (A) and (B) 
    respectively, in subparagraph (A), as redesignated, strike ``under 
    subparagraph (A)'' and insert ``under paragraph (1)'', and in 
    subparagraph (B), as redesignated, strike ``under subparagraph 
    (B)'' and insert ``under subparagraph (A)''.
        (11) In section 315, add at the end the following new sentence: 
    ``In the case of a reported bill or joint resolution considered 
    pursuant to a special order of business, a point of order under 
    section 303 shall be determined on the basis of the text made in 
    order as an original bill or joint resolution for the purpose of 
    amendment or to the text on which the previous question is ordered 
    directly to passage, as the case may be.''.
        (12) In section 401(b)(2), strike ``section 302(b)'' and insert 
    ``section 302(a)''.
        (13) In section 401(c), add at the end the following new 
    paragraph:
        ``(3) In the House of Representatives, subsections (a) and (b) 
    shall not apply to new authority described in those subsections to 
    the extent that a provision in a bill or joint resolution, or an 
    amendment thereto or a conference report thereon, establishes 
    prospectively for a Federal office or position a specified or 
    minimum level of compensation to be funded by annual discretionary 
    appropriations.''.
        (14) In section 421(5)(A)(i)(II), strike ``subparagraph (B))'' 
    and insert ``subparagraph (B)''.
        (15) In section 505(c), strike ``section 406(b)'' both places 
    it appears and insert ``section 405(b)''.
        (16) In section 904(c)(2), strike ``258A(b)(3)(C)(I)'' and 
    ``258(h)(3)'' and insert ``258A(b)(3)(C)(i)'' and ``258B(h)(3)'', 
    respectively, and strike ``and 314(e)'' and insert ``314(e), and 
    314(f)''.
        (17) In section 904(d)(3), strike ``258A(b)(3)(C)(I)'' and 
    ``258(h)(3)'' and insert ``258A(b)(3)(C)(i)'' and ``258B(h)(3)'', 
    respectively, and strike ``and 312(c)'' and insert ``312(c), 
    314(e), and 314(f)''.

            TITLE II--PREVENTION OF WASTE, FRAUD, AND ABUSE

SEC. 201. IMPROVING THE COLLECTION OF UNEMPLOYMENT INSURANCE 
              OVERPAYMENTS.

    (a) In General.--Section 303 of the Social Security Act (42 U.S.C. 
503) is amended by adding at the end the following:
    ``(m) In the case of a covered unemployment compensation debt (as 
defined under section 6402(f)(4) of the Internal Revenue Code of 1986) 
that remains uncollected as of the date that is 1 year after the debt 
was finally determined to be due and collected, the State to which such 
debt is owed shall take action to recover such debt under section 
6402(f) of the Internal Revenue Code of 1986.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect upon the date of enactment of this Act.

SEC. 202. STRENGTHENING MEDICAID THIRD-PARTY LIABILITY.

    (a) Payment for Prenatal and Preventive Pediatric Care and in Cases 
Involving Medical Support.--Section 1902(a)(25) of the Social Security 
Act (42 U.S.C. 1396a(a)(25)) is amended--
        (1) in subparagraph (E)(i), by inserting before the semicolon 
    at the end the following: ``, except that the State may, if the 
    State determines doing so is cost-effective and will not adversely 
    affect access to care, only make such payment if a third party so 
    liable has not made payment within 90 days after the date the 
    provider of such services has initially submitted a claim to such 
    third party for payment for such services''; and
        (2) in subparagraph (F)(i), by striking ``30 days after such 
    services are furnished'' and inserting ``90 days after the date the 
    provider of such services has initially submitted a claim to such 
    third party for payment for such services, except that the State 
    may make such payment within 30 days after such date if the State 
    determines doing so is cost-effective and necessary to ensure 
    access to care.''.
    (b) Recovery of Medicaid Expenditures From Beneficiary Liability 
Settlements.--
        (1) State plan requirements.--Section 1902(a)(25) of the Social 
    Security Act (42 U.S.C. 1396a(a)(25)) is amended--
            (A) in subparagraph (B), by striking ``to the extent of 
        such legal liability''; and
            (B) in subparagraph (H), by striking ``payment by any other 
        party for such health care items or services'' and inserting 
        ``any payments by such third party''.
        (2) Assignment of rights of payment.--Section 1912(a)(1)(A) of 
    such Act (42 U.S.C. 1396k(a)(1)(A)) is amended by striking 
    ``payment for medical care from any third party'' and inserting 
    ``any payment from a third party that has a legal liability to pay 
    for care and services available under the plan''.
        (3) Liens.--Section 1917(a)(1)(A) of such Act (42 U.S.C. 
    1396p(a)(1)(A)) is amended to read as follows:
        ``(A) pursuant to--
            ``(i) the judgment of a court on account of benefits 
        incorrectly paid on behalf of such individual, or
            ``(ii) rights acquired by or assigned to the State in 
        accordance with section 1902(a)(25)(H) or section 
        1912(a)(1)(A), or''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2014.

SEC. 203. RESTRICTION ON ACCESS TO THE DEATH MASTER FILE.

    (a) In General.--The Secretary of Commerce shall not disclose to 
any person information contained on the Death Master File with respect 
to any deceased individual at any time during the 3-calendar-year 
period beginning on the date of the individual's death, unless such 
person is certified under the program established under subsection (b).
    (b) Certification Program.--
        (1) In general.--The Secretary of Commerce shall establish a 
    program--
            (A) to certify persons who are eligible to access the 
        information described in subsection (a) contained on the Death 
        Master File, and
            (B) to perform periodic and unscheduled audits of certified 
        persons to determine the compliance by such certified persons 
        with the requirements of the program.
        (2) Certification.--A person shall not be certified under the 
    program established under paragraph (1) unless such person 
    certifies that access to the information described in subsection 
    (a) is appropriate because such person--
            (A) has--
                (i) a legitimate fraud prevention interest, or
                (ii) a legitimate business purpose pursuant to a law, 
            governmental rule, regulation, or fiduciary duty, and
            (B) has systems, facilities, and procedures in place to 
        safeguard such information, and experience in maintaining the 
        confidentiality, security, and appropriate use of such 
        information, pursuant to requirements similar to the 
        requirements of section 6103(p)(4) of the Internal Revenue Code 
        of 1986, and
            (C) agrees to satisfy the requirements of such section 
        6103(p)(4) as if such section applied to such person.
        (3) Fees.--
            (A) In general.--The Secretary of Commerce shall establish 
        under section 9701 of title 31, United States Code, a program 
        for the charge of fees sufficient to cover (but not to exceed) 
        all costs associated with evaluating applications for 
        certification and auditing, inspecting, and monitoring 
        certified persons under the program. Any fees so collected 
        shall be deposited and credited as offsetting collections to 
        the accounts from which such costs are paid.
            (B) Report.--The Secretary of Commerce shall report on an 
        annual basis to the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of Representatives on 
        the total fees collected during the preceding year and the cost 
        of administering the certification program under this 
        subsection for such year.
    (c) Imposition of Penalty.--
        (1) In general.--Any person who is certified under the program 
    established under subsection (b), who receives information 
    described in subsection (a), and who during the period of time 
    described in subsection (a)--
            (A) discloses such information to any person other than a 
        person who meets the requirements of subparagraphs (A), (B), 
        and (C) of subsection (b)(2),
            (B) discloses such information to any person who uses the 
        information for any purpose not listed under subsection 
        (b)(2)(A) or who further discloses the information to a person 
        who does not meet such requirements, or
            (C) uses any such information for any purpose not listed 
        under subsection (b)(2)(A),
    and any person to whom such information is disclosed who further 
    discloses or uses such information as described in the preceding 
    subparagraphs, shall pay a penalty of $1,000 for each such 
    disclosure or use.
        (2) Limitation on penalty.--
            (A) In general.--The total amount of the penalty imposed 
        under this subsection on any person for any calendar year shall 
        not exceed $250,000.
            (B) Exception for willful violations.--Subparagraph (A) 
        shall not apply in the case of violations under paragraph (1) 
        that the Secretary of Commerce determines to be willful or 
        intentional violations.
    (d) Death Master File.--For purposes of this section, the term 
``Death Master File'' means information on the name, social security 
account number, date of birth, and date of death of deceased 
individuals maintained by the Commissioner of Social Security, other 
than information that was provided to such Commissioner under section 
205(r) of the Social Security Act (42 U.S.C. 405(r)).
    (e) Exemption From Freedom of Information Act Requirement With 
Respect to Certain Records of Deceased Individuals.--
        (1) In general.--No Federal agency shall be compelled to 
    disclose the information described in subsection (a) to any person 
    who is not certified under the program established under subsection 
    (b).
        (2) Treatment of information.--For purposes of section 552 of 
    title 5, United States Code, this section shall be considered a 
    statute described in subsection (b)(3) of such section 552.
    (f) Effective Date.--
        (1) In general.--Except as provided in paragraph (2), this 
    section shall take effect on the date that is 90 days after the 
    date of the enactment of this Act.
        (2) FOIA exemption.--Subsection (e) shall take effect on the 
    date of the enactment of this Act.

SEC. 204. IDENTIFICATION OF INMATES REQUESTING OR RECEIVING IMPROPER 
              PAYMENTS.

    (a) Information Provided to the Prisoner Update Processing System 
(PUPS).--
        (1) Section 202(x)(3)(b)(i)(i).--Section 202(x)(3)(B)(i)(I) of 
    the Social Security Act (42 U.S.C. 402(x)(3)(B)(i)(I)) is amended 
    by--
            (A) inserting ``first, middle, and last'' before ``names'';
            (B) striking the comma after the words ``social security 
        account numbers'' and inserting ``or taxpayer identification 
        numbers, prison assigned inmate numbers, last known 
        addresses,'';
            (C) inserting ``dates of release or anticipated dates of 
        release, dates of work release,'' before ``and, to the extent 
        available''; and
            (D) by inserting ``and clause (iv) of this subparagraph'' 
        after ``paragraph (1)''.
        (2) Section 1611(e)(1)(i)(i)(i).--Section 1611(e)(1)(I)(i)(I) 
    of the Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)(I)) is 
    amended by--
            (A) inserting ``first, middle, and last'' before ``names'';
            (B) striking the comma after the words ``social security 
        account numbers'' and inserting ``or taxpayer identification 
        numbers, prison assigned inmate numbers, last known 
        addresses,'';
            (C) inserting ``dates of release or anticipated dates of 
        release, dates of work release,'' before ``and, to the extent 
        available''; and
            (D) by inserting ``and clause (iv) of this subparagraph'' 
        after ``this paragraph''.
    (b) Authority of Secretary of the Treasury to Access PUPS.--
        (1) Section 202(x)(3)(b).--Section 202(x)(3)(B) of the Social 
    Security Act (42 U.S.C. 402(x)(3)(B)) is amended--
            (A) in clause (iv), by inserting before the period the 
        following: ``, for statistical and research activities 
        conducted by Federal and State agencies, and to the Secretary 
        of the Treasury for the purposes of tax administration, debt 
        collection, and identifying, preventing, and recovering 
        improper payments under federally funded programs''; and
            (B) by adding at the end the following:
    ``(v)(I) The Commissioner may disclose information received 
pursuant to this paragraph to any officer, employee, agent, or 
contractor of the Department of the Treasury whose official duties 
require such information to assist in the identification, prevention, 
and recovery of improper payments or in the collection of delinquent 
debts owed to the United States, including payments certified by the 
head of an executive, judicial, or legislative paying agency, and 
payments made to individuals whose eligibility, or continuing 
eligibility, to participate in a Federal program (including those 
administered by a State or political subdivision thereof) is being 
reviewed.
    ``(II) Notwithstanding the provisions of section 552a of title 5, 
United States Code, or any other provision of Federal or State law, the 
Secretary of the Treasury may compare information disclosed under 
subclause (I) with any other personally identifiable information 
derived from a Federal system of records or similar records maintained 
by a Federal contractor, a Federal grantee, or an entity administering 
a Federal program or activity, and may redisclose such comparison of 
information to any paying or administering agency and to the head of 
the Federal Bureau of Prisons and the head of any State agency charged 
with the administration of prisons with respect to inmates whom the 
Secretary of the Treasury has determined may have been issued, or 
facilitated in the issuance of, an improper payment.
    ``(III) The comparison of information disclosed under subclause (I) 
shall not be considered a matching program for purposes of section 552a 
of title 5, United States Code.''.
        (2) Section 1611(e)(1)(i).--Section 1611(e)(1)(I) of the Social 
    Security Act (42 U.S.C. 1382(e)(1)(I)) is amended--
            (A) in clause (iii), by inserting before the period the 
        following: ``, for statistical and research activities 
        conducted by Federal and State agencies, and to the Secretary 
        of the Treasury for the purposes of tax administration, debt 
        collection, and identifying, preventing, and recovering 
        improper payments under federally funded programs''; and
            (B) by adding at the end the following:
    ``(v)(I) The Commissioner may disclose information received 
pursuant to this paragraph to any officer, employee, agent, or 
contractor of the Department of the Treasury whose official duties 
require such information to assist in the identification, prevention, 
and recovery of improper payments or in the collection of delinquent 
debts owed to the United States, including payments certified by the 
head of an executive, judicial, or legislative paying agency, and 
payments made to individuals whose eligibility, or continuing 
eligibility, to participate in a Federal program (including those 
administered by a State or political subdivision thereof) is being 
reviewed.
    ``(II) Notwithstanding the provisions of section 552a of title 5, 
United States Code, or any other provision of Federal or State law, the 
Secretary of the Treasury may compare information disclosed under 
subclause (I) with any other personally identifiable information 
derived from a Federal system of records or similar records maintained 
by a Federal contractor, a Federal grantee, or an entity administering 
a Federal program or activity and may redisclose such comparison of 
information to any paying or administering agency and to the head of 
the Federal Bureau of Prisons and the head of any State agency charged 
with the administration of prisons with respect to inmates whom the 
Secretary of the Treasury has determined may have been issued, or 
facilitated in the issuance of, an improper payment.
    ``(III) The comparison of information disclosed under subclause (I) 
shall not be considered a matching program for purposes of section 552a 
of title 5, United States Code.''.
    (c) Conforming Amendment to the Do Not Pay Initiative.--Section 
5(a)(2) of the Improper Payments Elimination and Recovery Improvement 
Act of 2012 (31 U.S.C. 3321 note) is amended by adding at the end the 
following:
            ``(F) Information regarding incarcerated individuals 
        maintained by the Commissioner of Social Security under 
        sections 202(x) and 1611(e) of the Social Security Act.''.

                      TITLE III--NATURAL RESOURCES

SEC. 301. ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
              PETROLEUM RESOURCES.

    (a) Repeal.--Subtitle J of title IX of the Energy Policy Act of 
2005 (42 U.S.C. 16371 et seq.) is repealed.
    (b) Rescission.--Any unobligated funds appropriated for carrying 
out the subtitle repealed by subsection (a) are rescinded.

SEC. 302. AMENDMENT TO THE MINERAL LEASING ACT.

    Section 35(b) of the Mineral Leasing Act (30 U.S.C. 191(b)) is 
amended to read as follows--
    ``(b) Deduction for Administrative Costs.--In determining the 
amount of payments to the States under this section, beginning in 
fiscal year 2014 and for each year thereafter, the amount of such 
payments shall be reduced by 2 percent for any administrative or other 
costs incurred by the United States in carrying out the program 
authorized by this Act, and the amount of such reduction shall be 
deposited to miscellaneous receipts of the Treasury.''.

SEC. 303. APPROVAL OF AGREEMENT WITH MEXICO.

    The Agreement between the United States of America and the United 
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the 
Gulf of Mexico, signed at Los Cabos, February 20, 2012, is hereby 
approved.

SEC. 304. AMENDMENT TO THE OUTER CONTINENTAL SHELF LANDS ACT.

    The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is 
amended by adding at the end the following:

``SEC. 32. TRANSBOUNDARY HYDROCARBON AGREEMENTS.

    ``(a) Authorization.--After the date of enactment of the Bipartisan 
Budget Act of 2013, the Secretary may implement the terms of any 
transboundary hydrocarbon agreement for the management of transboundary 
hydrocarbon reservoirs entered into by the President and approved by 
Congress. In implementing such an agreement, the Secretary shall 
protect the interests of the United States to promote domestic job 
creation and ensure the expeditious and orderly development and 
conservation of domestic mineral resources in accordance with all 
applicable United States laws governing the exploration, development, 
and production of hydrocarbon resources on the Outer Continental Shelf.
    ``(b) Submission to Congress.--
        ``(1) In general.--No later than 180 days after all parties to 
    a transboundary hydrocarbon agreement have agreed to its terms, a 
    transboundary hydrocarbon agreement that does not constitute a 
    treaty in the judgment of the President shall be submitted by the 
    Secretary to--
            ``(A) the Speaker of the House of Representatives;
            ``(B) the Majority Leader of the Senate;
            ``(C) the Chair of the Committee on Natural Resources of 
        the House of Representatives; and
            ``(D) the Chair of the Committee on Energy and Natural 
        Resources of the Senate.
        ``(2) Contents of submission.--The submission shall include--
            ``(A) any amendments to this Act or other Federal law 
        necessary to implement the agreement;
            ``(B) an analysis of the economic impacts such agreement 
        and any amendments necessitated by the agreement will have on 
        domestic exploration, development, and production of 
        hydrocarbon resources on the Outer Continental Shelf; and
            ``(C) a detailed description of any regulations expected to 
        be issued by the Secretary to implement the agreement.
    ``(c) Implementation of Specific Transboundary Agreement With 
Mexico.--The Secretary may take actions as necessary to implement the 
terms of the Agreement between the United States of America and the 
United Mexican States Concerning Transboundary Hydrocarbon Reservoirs 
in the Gulf of Mexico, signed at Los Cabos, February 20, 2012, 
including--
        ``(1) approving unitization agreements and related arrangements 
    for the exploration, development, or production of oil and natural 
    gas from transboundary reservoirs or geological structures;
        ``(2) making available, in the limited manner necessary under 
    the agreement and subject to the protections of confidentiality 
    provided by the agreement, information relating to the exploration, 
    development, and production of oil and natural gas from a 
    transboundary reservoir or geological structure that may be 
    considered confidential, privileged, or proprietary information 
    under law;
        ``(3) taking actions consistent with an expert determination 
    under the agreement; and
        ``(4) ensuring only appropriate inspection staff at the Bureau 
    of Safety and Environmental Enforcement or other Federal agency 
    personnel designated by the Bureau, the operator, or the lessee 
    have authority to stop work on any installation or other device or 
    vessel permanently or temporarily attached to the seabed of the 
    United States that may be erected thereon for the purpose of 
    resource exploration, development or production activities as 
    approved by the Secretary.
    ``(d) Savings Provisions.--Nothing in this section shall be 
construed--
        ``(1) to authorize the Secretary to participate in any 
    negotiations, conferences, or consultations with Cuba regarding 
    exploration, development, or production of hydrocarbon resources in 
    the Gulf of Mexico along the United States maritime border with 
    Cuba or the area known by the Department of the Interior as the 
    `Eastern Gap'; or
        ``(2) as affecting the sovereign rights and the jurisdiction 
    that the United States has under international law over the Outer 
    Continental Shelf that appertains to it.''.

SEC. 305. FEDERAL OIL AND GAS ROYALTY PREPAYMENT CAP.

    (a) In General.--Section 111(i) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1721(i)) is amended by striking ``(i) 
Upon'' and all that follows through ``For purposes'' and inserting the 
following:
    ``(i) Limitation on Interest.--
        ``(1) In general.--Interest shall not be paid on any excessive 
    overpayment.
        ``(2) Excessive overpayment defined.--For purposes''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on July 1, 2014.

SEC. 306. STRATEGIC PETROLEUM RESERVE.

    (a) Repeal of Authority To Acquire In-Kind Royalty Crude Oil.--
Section 160(a) of the Energy Policy and Conservation Act (42 U.S.C. 
6240(a)) is amended to read as follows:
    ``(a) The Secretary may acquire, place in storage, transport, or 
exchange petroleum products acquired by purchase or exchange.''.
    (b) Rescission of Funds.--Any unobligated balances available in the 
SPR Petroleum Account in the Treasury on the date of enactment of this 
section are permanently rescinded.

           TITLE IV--FEDERAL CIVILIAN AND MILITARY RETIREMENT

SEC. 401. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES RETIREMENT 
              SYSTEM FOR NEW EMPLOYEES.

    (a) Definition.--
        (1) In general.--Section 8401 of title 5, United States Code, 
    is amended--
            (A) in paragraph (36), by striking ``and'' at the end;
            (B) in paragraph (37), by striking the period and inserting 
        ``; and''; and
            (C) by adding at the end the following:
        ``(38) the term `further revised annuity employee' means any 
    individual who--
            ``(A) on December 31, 2013--
                ``(i) is not an employee or Member covered under this 
            chapter;
                ``(ii) is not performing civilian service which is 
            creditable service under section 8411; and
                ``(iii) has less than 5 years of creditable civilian 
            service under section 8411; and
            ``(B) after December 31, 2013, becomes employed as an 
        employee or becomes a Member covered under this chapter 
        performing service which is creditable service under section 
        8411.''.
        (2) Technical amendment.--Section 8401(37)(B) of title 5, 
    United States Code, is amended by inserting ``and before January 1, 
    2014,'' after ``after December 31, 2012,''.
    (b) Increase in Individual Contributions.--Section 8422(a)(3) of 
title 5, United States Code, is amended--
        (1) in subparagraph (A), by inserting ``or further revised 
    annuity employees'' after ``revised annuity employees''; and
        (2) by adding at the end the following:
    ``(C) The applicable percentage under this paragraph for civilian 
service by further revised annuity employees shall be as follows:


``Employee.............................  10.6......................  After December 31, 2013.
Congressional employee.................  10.6......................  After December 31, 2013.
Member.................................  10.6......................  After December 31, 2013.
Law enforcement officer, firefighter,    11.1......................  After December 31, 2013.
 member of the Capitol Police, member
 of the Supreme Court Police, or air
 traffic controller....................
Nuclear materials courier..............  11.1......................  After December 31, 2013.
Customs and border protection officer..  11.1......................  After December 31, 2013.''.
 

    (c) Government Contributions.--Section 8423(a)(2) of title 5, 
United States Code, is amended--
        (1) by striking ``(2)'' and inserting ``(2)(A)''; and
        (2) 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, 2013, the normal-cost 
percentage under this subsection shall be determined and applied as if 
section 401(b) of the Bipartisan Budget Act of 2013 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.''.
    (d) Annuity Calculation.--Section 8415(d) of title 5, United States 
Code, is amended by inserting ``or a further revised annuity employee'' 
after ``a revised annuity employee''.

SEC. 402. FOREIGN SERVICE PENSION SYSTEM.

    (a) Definition.--
        (1) In general.--Section 852 of the Foreign Service Act of 1980 
    (22 U.S.C. 4071a) is amended--
            (A) by redesignating paragraphs (8), (9), and (10) as 
        paragraphs (9), (10), and (11), respectively; and
            (B) by inserting after paragraph (7) the following:
        ``(8) the term `further revised annuity participant' means any 
    individual who--
            ``(A) on December 31, 2013--
                ``(i) is not a participant;
                ``(ii) is not performing service which is creditable 
            service under section 854; and
                ``(iii) has less than 5 years creditable service under 
            section 854; and
            ``(B) after December 31, 2013, becomes a participant 
        performing service which is creditable service under section 
        854;''.
        (2) Technical amendment.--Section 852(7)(B) of the Foreign 
    Service Act of 1980 (22 U.S.C. 4071a(7)(B)) is amended by inserting 
    ``and before January 1, 2014,'' after ``after December 31, 2012,''.
    (b) Deductions and Withholdings From Pay.--Section 856(a)(2) of the 
Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2)) is amended--
        (1) in subparagraph (A), by inserting ``or a further revised 
    annuity participant'' after ``revised annuity participant''; and
        (2) by adding at the end the following:
    ``(C) The applicable percentage for a further revised annuity 
participant shall be as follows:


``11.15..........................  After December 31, 2013.''.
 

    (c) Government Contributions.--Section 857 of the Foreign Service 
Act of 1980 (22 U.S.C. 4071f) is amended by adding at the end the 
following:
    ``(c)(1) Subject to paragraphs (2) and (3), for purposes of any 
period in any year beginning after December 31, 2013, the normal-cost 
percentage under this section shall be determined and applied as if 
section 402(b) of the Bipartisan Budget Act of 2013 had not been 
enacted.
    ``(2) Any contributions under this section in excess of the amounts 
which (but for paragraph (1)) would otherwise have been payable shall 
be applied toward reducing the unfunded liability of the Foreign 
Service Retirement and Disability System.
    ``(3) After the unfunded liability of the Foreign Service 
Retirement and Disability System has been eliminated, as determined by 
the Secretary of State, Government contributions under this section 
shall be determined and made disregarding this subsection.''.

SEC. 403. ANNUAL ADJUSTMENT OF RETIRED PAY AND RETAINER PAY AMOUNTS FOR 
              RETIRED MEMBERS OF THE ARMED FORCES UNDER AGE 62.

    (a) CPI Minus One Percent.--Section 1401a(b) of title 10, United 
States Code, is amended--
        (1) in paragraph (1), by striking ``paragraphs (2) and (3)'' 
    and inserting ``paragraph (2), (3), or (4)'';
        (2) by redesignating paragraphs (4) and (5) as paragraphs (5) 
    and (6), respectively; and
        (3) by inserting after paragraph (3) the following new 
    paragraph (4):
        ``(4) Reduced percentage for retired members under age 62.--
            ``(A) In general.--Effective on December 1 of each year, 
        the retired pay of each member and former member under 62 years 
        of age entitled to that pay shall be adjusted in accordance 
        with this paragraph instead of paragraph (2) or (3).
            ``(B) CPI minus one.--If the percent determined under 
        paragraph (2) is greater than 1 percent, the Secretary shall 
        increase the retired pay of each member and former member by 
        the difference between--
                ``(i) the percent determined under paragraph (2); and
                ``(ii) 1 percent.
            ``(C) No negative adjustment.--If the percent determined 
        under paragraph (2) is equal to or less than 1 percent, the 
        Secretary shall not increase the retired pay of members and 
        former members under this paragraph.
            ``(D) Revised adjustment upon reaching age 62.--When a 
        member or former member whose retired pay has been subject to 
        adjustment under this paragraph becomes 62 years of age, the 
        Secretary of Defense shall recompute the retired pay of the 
        member or former member, to be effective on the date of the 
        next adjustment of retired pay under this subsection, so as to 
        be the amount equal to the amount of retired pay to which the 
        member or former member would be entitled on that date if 
        increases in the retired pay of the member or former member had 
        been computed as provided in paragraph (2) or as specified in 
        section 1410 of this title, as applicable, rather than this 
        paragraph.
            ``(E) Inapplicability of catch-up rule.--Paragraph (5) 
        shall not apply in the case of adjustments made, or not made, 
        as a result of application of this paragraph.''.
    (b) Restoral of Full Retirement Amount at Age 62.--Section 1410(1) 
of title 10, United States Code, is amended by striking ``paragraph 
(3)'' and inserting ``paragraph (3) or (4)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on December 1, 2015.

                       TITLE V--HIGHER EDUCATION

SEC. 501. DEFAULT REDUCTION PROGRAM.

    Effective July 1, 2014, section 428F(a)(1) of the Higher Education 
Act of 1965 (20 U.S.C. 1078-6(a)(1)) is amended--
        (1) in subparagraph (A), by striking clause (ii) and inserting 
    the following:
                ``(ii) beginning July 1, 2014, assign the loan to the 
            Secretary if the guaranty agency has been unable to sell 
            the loan under clause (i).''; and
        (2) in subparagraph (D), by striking clause (i) and inserting 
    the following:
                ``(i) the guaranty agency--

                    ``(I) shall, in the case of a sale made on or after 
                July 1, 2014, repay the Secretary 100 percent of the 
                amount of the principal balance outstanding at the time 
                of such sale, multiplied by the reinsurance percentage 
                in effect when payment under the guaranty agreement was 
                made with respect to the loan; and
                    ``(II) may, in the case of a sale made on or after 
                July 1, 2014, in order to defray collection costs--

                        ``(aa) charge to the borrower an amount not to 
                    exceed 16 percent of the outstanding principal and 
                    interest at the time of the loan sale; and
                        ``(bb) retain such amount from the proceeds of 
                    the loan sale; and''.

SEC. 502. ELIMINATION OF NONPROFIT SERVICING CONTRACTS.

    The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended--
        (1) in section 456 (20 U.S.C. 1087f)--
            (A) in subsection (a), by striking paragraph (4); and
            (B) by striking subsection (c); and
        (2) in section 458(a) (20 U.S.C. 1087h(a)), by striking 
    paragraph (2).

                        TITLE VI--TRANSPORTATION

SEC. 601. AVIATION SECURITY SERVICE FEES.

    (a) Air Carrier Fees.--
        (1) Repeal.--Section 44940(a)(2) of title 49, United States 
    Code, is repealed.
        (2) Conforming amendment.--Section 44940(d)(1) of such title is 
    amended by striking ``, and may impose a fee under subsection 
    (a)(2),''.
        (3) Effective date.--The repeal made by paragraph (1) and the 
    amendment made by paragraph (2) shall each take effect on October 
    1, 2014.
    (b) Restructuring of Passenger Fee.--Section 44940(c) of such title 
is amended to read as follows:
    ``(c) Limitation on Fee.--Fees imposed under subsection (a)(1) 
shall be $5.60 per one-way trip in air transportation or intrastate air 
transportation that originates at an airport in the United States.''.
    (c) Deposit of Receipts in General Fund.--Section 44940(i) of such 
title is amended to read as follows:
    ``(i) Deposit of Receipts in General Fund.--
        ``(1) In general.--Beginning in fiscal year 2014, out of fees 
    received in a fiscal year under subsection (a)(1), after amounts 
    are made available in the fiscal year under section 44923(h), the 
    next funds derived from such fees in the fiscal year, in the amount 
    specified for the fiscal year in paragraph (4), shall be credited 
    as offsetting receipts and deposited in the general fund of the 
    Treasury.
        ``(2) Fee levels.--The Secretary of Homeland Security shall 
    impose the fee authorized by subsection (a)(1) so as to collect in 
    a fiscal year at least the amount specified in paragraph (4) for 
    the fiscal year for making deposits under paragraph (1).
        ``(3) Relationship to other provisions.--Subsections (b) and 
    (f) shall not apply to amounts to be used for making deposits under 
    this subsection.
        ``(4) Fiscal year amounts.--For purposes of paragraphs (1) and 
    (2), the fiscal year amounts are as follows:
            ``(A) $390,000,000 for fiscal year 2014.
            ``(B) $1,190,000,000 for fiscal year 2015.
            ``(C) $1,250,000,000 for fiscal year 2016.
            ``(D) $1,280,000,000 for fiscal year 2017.
            ``(E) $1,320,000,000 for fiscal year 2018.
            ``(F) $1,360,000,000 for fiscal year 2019.
            ``(G) $1,400,000,000 for fiscal year 2020.
            ``(H) $1,440,000,000 for fiscal year 2021.
            ``(I) $1,480,000,000 for fiscal year 2022.
            ``(J) $1,520,000,000 for fiscal year 2023.''.
    (d) Imposition of Fee Increase.--The Secretary of Homeland Security 
shall implement the fee increase authorized by the amendment made by 
subsection (b)--
        (1) beginning on July 1, 2014; and
        (2) through the publication of notice of such fee in the 
    Federal Register, notwithstanding section 9701 of title 31, United 
    States Code, and the procedural requirements of section 553 of 
    title 5, United States Code.
    (e) Continued Availability of Existing Balances.--The amendments 
made by this section shall not affect the availability of funds made 
available under section 44940(i) of title 49, United States Code, 
before the date of enactment of this Act.

SEC. 602. TRANSPORTATION COST REIMBURSEMENT.

    (a) Repeal.--Sections 55316 and 55317 of chapter 553 of title 46, 
United States Code, are repealed.
    (b) Table of Sections Amendment.--The table of sections at the 
beginning of chapter 553 of title 46, United States Code, is amended by 
striking the items relating to section 55316 and 55317.

SEC. 603. STERILE AREAS AT AIRPORTS.

    Section 44903 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(n) Passenger Exit Points From Sterile Area.--
        ``(1) In general.--The Secretary of Homeland Security shall 
    ensure that the Transportation Security Administration is 
    responsible for monitoring passenger exit points from the sterile 
    area of airports at which the Transportation Security 
    Administration provided such monitoring as of December 1, 2013.
        ``(2) Sterile area defined.--In this section, the term `sterile 
    area' has the meaning given that term in section 1540.5 of title 
    49, Code of Federal Regulations (or any corresponding similar 
    regulation or ruling).''.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. EXTENSION OF CUSTOMS USER FEES.

    Section 13031(j)(3) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended--
        (1) in subparagraph (A), by striking ``October 22, 2021'' and 
    inserting ``September 30, 2023''; and
        (2) in subparagraph (B)(i), by striking ``October 29, 2021'' 
    and inserting ``September 30, 2023''.

SEC. 702. LIMITATION ON ALLOWABLE GOVERNMENT CONTRACTOR COMPENSATION 
              COSTS.

    (a) Limitation.--
        (1) Civilian contracts.--Section 4304(a)(16) of title 41, 
    United States Code, is amended to read as follows:
        ``(16) Costs of compensation of contractor and subcontractor 
    employees for a fiscal year, regardless of the contract funding 
    source, to the extent that such compensation exceeds $487,000 per 
    year, adjusted annually to reflect the change in the Employment 
    Cost Index for all workers, as calculated by the Bureau of Labor 
    Statistics, except that the head of an executive agency may 
    establish one or more narrowly targeted exceptions for scientists, 
    engineers, or other specialists upon a determination that such 
    exceptions are needed to ensure that the executive agency has 
    continued access to needed skills and capabilities.''.
        (2) Defense contracts.--Section 2324(e)(1)(P) of title 10, 
    United States Code, is amended to read as follows:
            ``(P) Costs of compensation of contractor and subcontractor 
        employees for a fiscal year, regardless of the contract funding 
        source, to the extent that such compensation exceeds $487,000 
        per year, adjusted annually to reflect the change in the 
        Employment Cost Index for all workers, as calculated by the 
        Bureau of Labor Statistics, except that the head of an 
        executive agency may establish one or more narrowly targeted 
        exceptions for scientists, engineers, or other specialists upon 
        a determination that such exceptions are needed to ensure that 
        the executive agency has continued access to needed skills and 
        capabilities.''.
    (b) Conforming Amendments.--
        (1) Repeal.--Section 1127 of title 41, United States Code, is 
    hereby repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 11 of title 41, United States Code, is amended by 
    striking the item relating to section 1127.
    (c) Applicability.--This section and the amendments made by this 
section shall apply only with respect to costs of compensation incurred 
under contracts entered into on or after the date that is 180 days 
after the date of the enactment of this Act.
    (d) Reports.--
        (1) In general.--Not later than 60 days after the end of each 
    fiscal year, the Director of the Office of Management and Budget 
    shall submit a report on contractor compensation to--
            (A) the Committee on Armed Services of the Senate;
            (B) the Committee on Armed Services of the House of 
        Representatives;
            (C) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            (D) the Committee on Oversight and Government Reform of the 
        House of Representatives;
            (E) the Committee on Appropriations of the Senate; and
            (F) the Committee on Appropriations of the House of 
        Representatives.
        (2) Elements.--The report required under paragraph (1) shall 
    include--
            (A) the total number of contractor employees, by executive 
        agency, in the narrowly targeted exception positions described 
        under subsection (a) during the preceding fiscal year;
            (B) the taxpayer-funded compensation amounts received by 
        each contractor employee in a narrowly targeted exception 
        position during such fiscal year; and
            (C) the duties and services performed by contractor 
        employees in the narrowly targeted exception positions during 
        such fiscal year.
    (e) Review.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense and the Director of the Office of 
Management and Budget shall report to Congress on alternative 
benchmarks and industry standards for compensation, including whether 
any such benchmarks or standards would provide a more appropriate 
measure of allowable compensation for the purposes of section 
2324(e)(1)(P) of title 10, United States Code, and section 4304(a)(16) 
of title 41, United States Code, as amended by this Act.

SEC. 703. PENSION BENEFIT GUARANTY CORPORATION PREMIUM RATE INCREASES.

    (a) Flat-Rate Premium Increases.--Section 4006(a)(3)(A)(i) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(A)(i)) is amended--
        (1) in subclause (II), by striking ``and'' at the end;
        (2) in subclause (III), by inserting ``and before January 1, 
    2015,'' after ``December 31, 2013''; and
        (3) by inserting after subclause (III) the following:
            ``(IV) for plan years beginning after December 31, 2014, 
        and before January 1, 2016, $57; and
            ``(V) for plan years beginning after December 31, 2015, and 
        before January 1, 2017, $64.''.
    (b) Flat-Rate Premium Rate Indexed to Wages.--
        (1) In general.--Section 4006(a)(3) of such Act (29 U.S.C. 
    1306(a)(3)) is amended--
            (A) by redesignating subparagraphs (G) through (J) as 
        subparagraphs (H) through (K), respectively; and
            (B) by inserting after subparagraph (F) the following:
    ``(G) For each plan year beginning in a calendar year after 2016, 
there shall be substituted for the premium rate specified in clause (i) 
of subparagraph (A) an amount equal to the greater of--
        ``(i) the product derived by multiplying the premium rate 
    specified in clause (i) of subparagraph (A) by the ratio of--
            ``(I) the national average wage index (as defined in 
        section 209(k)(1) of the Social Security Act) for the first of 
        the 2 calendar years preceding the calendar year in which such 
        plan year begins, to
            ``(II) the national average wage index (as so defined) for 
        2014; and
        ``(ii) the premium rate in effect under clause (i) of 
    subparagraph (A) for plan years beginning in the preceding calendar 
    year.
If the amount determined under this subparagraph is not a multiple of 
$1, such product shall be rounded to the nearest multiple of $1.''.
        (2) Conforming amendments.--Section 4006(a)(3)(F) of such Act 
    (29 U.S.C. 1306(a)(3)(F)) is amended--
            (A) in the matter before clause (i), by inserting ``and 
        before 2013'' after ``after 2006''; and
            (B) in the flush text following clause (ii), by striking 
        the second sentence.
    (c) Variable Rate Premium Increases.--
        (1) In general.--Section 4006(a)(8)(C) of such Act (29 U.S.C. 
    1306(a)(8)(C)) is amended--
            (A) in clause (i), by striking ``and'' at the end;
            (B) in clause (ii), by striking ``$5.'' and inserting 
        ``$10; and''; and
            (C) by adding at the end the following:
                ``(iii) in the case of plan years beginning in calendar 
            year 2016, by $5.''.
        (2) Conforming amendments.--Section 4006(a)(8) of such Act (29 
    U.S.C. 1306(a)(8)) is amended--
            (A) in subparagraph (A)--
                (i) in clause (ii), by striking ``and'' at the end;
                (ii) in clause (iii), by striking the period at the end 
            and inserting ``; and''; and
                (iii) by adding at the end the following:
                ``(iv) for plan years beginning after calendar year 
            2016, the amount in effect for plan years beginning in 2016 
            (determined after application of subparagraph (C)).''; and
            (B) in subparagraph (D)--
                (i) in clause (ii), by striking ``and'' at the end;
                (ii) in clause (iii), by striking the period at the end 
            and inserting ``; and''; and
                (iii) by adding at the end the following:
                ``(iv) 2014, in the case of plan years beginning after 
            calendar year 2016.''.
    (d) Increase in Variable Rate Premium Cap.--
        (1) In general.--Section 4006(a)(3)(E)(i) of such Act (29 
    U.S.C. 1306(a)(3)(E)(i)) is amended--
            (A) in subclause (I), by striking ``and'' at the end;
            (B) in subclause (II)--
                (i) by inserting ``and before 2016'' after ``2012''; 
            and
                (ii) by striking the period at the end and inserting 
            ``and''; and
            (C) by adding at the end the following:
        ``(III) in the case of plan years beginning in a calendar year 
    after 2015, shall not exceed $500.''.
        (2) Index to wages.--Section 4006(a)(3) of such Act (29 U.S.C. 
    1306(a)(3)) is amended--
            (A) in subparagraph (K) (as redesignated by subsection 
        (b)(1)(A)), by inserting ``and before 2016'' after ``2013''; 
        and
            (B) by inserting at the end the following:
    ``(L) For each plan year beginning in a calendar year after 2016, 
there shall be substituted for the dollar amount specified in subclause 
(III) of subparagraph (E)(i) an amount equal to the greater of--
        ``(i) the product derived by multiplying such dollar amount by 
    the ratio of--
            ``(I) the national average wage index (as defined in 
        section 209(k)(1) of the Social Security Act) for the first of 
        the 2 calendar years preceding the calendar year in which such 
        plan year begins, to
            ``(II) the national average wage index (as so defined) for 
        2014; and
        ``(ii) such dollar amount for plan years beginning in the 
    preceding calendar year.
If the amount determined under this subparagraph is not a multiple of 
$1, such product shall be rounded to the nearest multiple of $1.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2013.

SEC. 704. CANCELLATION OF UNOBLIGATED BALANCES.

    (a) Department of Justice Assets Forfeiture Fund.--Effective on the 
date of enactment of this Act, of the unobligated balances available 
under the Department of Justice Assets Forfeiture Fund, $693,000,000 
are permanently cancelled.
    (b) Treasury Forfeiture Fund.--Effective on the date of enactment 
of this Act, of the unobligated balances available under the Department 
of the Treasury Forfeiture Fund, $867,000,000, are permanently 
cancelled.

SEC. 705. CONSERVATION PLANNING TECHNICAL ASSISTANCE USER FEES.

    (a) User Fees Authorized.--Section 3 of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590c) is amended--
        (1) by striking ``require--'' and inserting ``require the 
    following:'';
        (2) in paragraph (1), by striking the semicolon at the end and 
    inserting a period;
        (3) in paragraph (2), by striking ``; and'' at the end and 
    inserting a period; and
        (4) by adding at the end the following:
    ``(4)(A) The payment of user fees for conservation planning 
technical assistance if the Secretary determines that the fees, subject 
to subparagraph (B), are--
        ``(i) reasonable and appropriate;
        ``(ii) assessed for conservation planning technical assistance 
    resulting in the development of a conservation plan; and
        ``(iii) assessed based on the size of the land or the 
    complexity of the resource issues involved.
    ``(B) Fees under subparagraph (A) may not exceed $150 per 
conservation plan for which technical assistance is provided.
    ``(C) The Secretary may waive fees otherwise required under 
subparagraph (A) in the case of conservation planning technical 
assistance provided--
        ``(i) to beginning farmers or ranchers (as defined in section 
    343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
    1991(a));
        ``(ii) to limited resource farmers or ranchers (as defined by 
    the Secretary);
        ``(iii) to socially disadvantaged farmers or ranchers (as 
    defined in section 355(e) of the Consolidated Farm and Rural 
    Development Act (7 U.S.C. 2003(e));
        ``(iv) to qualify for an exemption from ineligibility under 
    section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812); or
        ``(v) to comply with Federal, State, or local regulatory 
    requirements.''.
    (b) Conservation Technical Assistance Fund.--Section 6 of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590f) is amended--
        (1) by striking ``sec. 6.'' and all that follows through 
    ``There are hereby authorized'' and inserting the following:

``SEC. 6. AUTHORIZATION OF APPROPRIATIONS AND CONSERVATION TECHNICAL 
              ASSISTANCE FUNDS.

    ``(a) Authorization of Appropriations.--There is authorized''; and
        (2) by adding at the end the following:
    ``(b) Conservation Technical Assistance Fund.--
        ``(1) In general.--There is established in the Treasury of the 
    United States a fund to be known as the `Conservation Technical 
    Assistance Fund' (referred to in this subsection as the `Fund'), to 
    be administered by the Secretary of Agriculture.
        ``(2) Deposits.--An amount equal to the amounts collected as 
    fees under section 3(4) and late payments, interest, and such other 
    amounts as are authorized to be collected pursuant to section 3717 
    of title 31, United States Code, shall be deposited in the Fund.
        ``(3) Availability.--Amounts in the Fund shall--
            ``(A) only be available to the extent and in the amount 
        provided in advance in appropriations Acts;
            ``(B) be used for the costs of carrying out this Act; and
            ``(C) remain available until expended.''.

SEC. 706. SELF PLUS ONE COVERAGE.

    (a) Election of Coverage.--Section 8905 of title 5, United States 
Code, is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(a) An employee may enroll in an approved health benefits plan 
described in section 8903 or 8903a--
        ``(1) as an individual;
        ``(2) for self plus one; or
        ``(3) for self and family.'';
        (2) in subsection (c)--
            (A) in paragraph (1), in the matter following subparagraph 
        (B), by inserting ``for self plus one or'' before ``self and 
        family as provided in paragraph (2) of this subsection''; and
            (B) in paragraph (2)--
                (i) in the matter preceding subparagraph (A), by 
            inserting ``for self plus one or'' before ``for self and 
            family''; and
                (ii) in subparagraph (B), by inserting ``(or, in the 
            case of self plus one coverage, not more than 1 such 
            child)'' after ``adopted children'';
        (3) in subsection (e), by striking ``or each spouse may enroll 
    as an individual'' and inserting ``or for a self plus one 
    enrollment that covers the spouse, or each spouse may enroll as an 
    individual or for a self plus one enrollment that does not cover 
    the other spouse or a child who is covered under the enrollment of 
    the other spouse''; and
        (4) in subsection (h)--
            (A) by striking ``self and family enrollment'' each place 
        it appears and inserting ``self plus one or self and family 
        enrollment, as necessary to provide health insurance coverage 
        for each child who is covered under the order,'';
            (B) by striking ``a child'' each place it appears and 
        inserting ``1 or more children'';
            (C) by striking ``the child resides'' each place it appears 
        and inserting ``the child or children reside'';
            (D) in paragraph (1), by striking ``self and family 
        coverage'' each place it appears and inserting ``self plus one 
        or self and family coverage, as necessary to provide health 
        insurance coverage for each child who is covered under the 
        order,''; and
            (E) in paragraph (3), by striking ``the child continues'' 
        and inserting ``the child or children continue''.
    (b) Continued Coverage.--Section 8905a of title 5, United States 
Code, is amended--
        (1) in subsection (d)(3)(A), by inserting ``for self plus one 
    or'' before ``for self and family''; and
        (2) in subsection (f)(3)(A), by striking ``for self and family 
    based on such person's separation from service'' and inserting 
    ``based on such person's separation from service under a self plus 
    one enrollment that covered the individual or under a self and 
    family enrollment''.
    (c) Contributions.--Section 8906(a)(1) of title 5, United States 
Code is amended--
        (1) in subparagraph (A), by striking at the end ``and'';
        (2) by redesignating subparagraph (B) as subparagraph (C); and
        (3) by inserting after subparagraph (A) the following:
        ``(B) enrollments under this chapter for self plus one; and''.
    (d) Weighted Average for First Year.--For the first contract year 
for which an employee may enroll for self plus one coverage under 
chapter 89 of title 5, United States Code, the Office of Personnel 
Management shall determine the weighted average of the subscription 
charges that will be in effect for the contract year for enrollments 
for self plus one under such chapter based on an actuarial analysis.

            DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS

SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This division may be cited as the ``Pathway for 
SGR Reform Act of 2013''.
    (b) Table of Contents.--The table of contents of this division is 
as follows:

            DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS

Sec. 1001. Short title; table of contents.
Sec. 1002. Findings; purpose statement.

                       TITLE I--MEDICARE EXTENDERS

Sec. 1101. Physician payment update.
Sec. 1102. Extension of work GPCI floor.
Sec. 1103. Extension of therapy cap exceptions process.
Sec. 1104. Extension of ambulance add-ons.
Sec. 1105. Medicare inpatient hospital payment adjustment for low-volume 
          hospitals.
Sec. 1106. Medicare-dependent hospital (MDH) program.
Sec. 1107. 1-year extension of authorization for special needs plans.
Sec. 1108. 1-year extension of Medicare reasonable cost contracts.
Sec. 1109. Extension of existing funding for contract with consensus-
          based entity.
Sec. 1110. Extension of funding outreach and assistance for low-income 
          programs.

                    TITLE II--OTHER HEALTH PROVISIONS

Sec. 1201. Extension of the qualifying individual (QI) program.
Sec. 1202. Temporary extension of transitional medical assistance (TMA).
Sec. 1203. Extension of funding for family-to-family health information 
          centers.
Sec. 1204. Delay of reductions to Medicaid DSH allotments.
Sec. 1205. Realignment of the Medicare sequester for fiscal year 2023.
Sec. 1206. Payment for inpatient services in long-term care hospitals 
          (LTCHs).

SEC. 1002. FINDINGS; PURPOSE STATEMENT.

    In order to support the provision of quality care for our nation's 
seniors, Congress finds it appropriate to reform physician 
reimbursements under the Medicare program. SGR reform legislation 
provides such an opportunity, but not until next year. In order to 
facilitate such reform, Congress finds that the Centers for Medicare & 
Medicaid Services should continue to focus its efforts on the following 
areas:
        (1) Simplify and reduce administrative burden on physicians.--
    The application and assessment of measures and other activities 
    under SGR reform should be facilitated by the Centers for Medicare 
    and Medicaid Services (CMS) in a way that accounts for the 
    administrative burden such measurement places on physicians. 
    Therefore, the Congress encourages CMS to identify and implement, 
    to the extent practicable, mechanisms to ensure that the 
    application and assessment of measures be coordinated across 
    programs.
        (2) Timely feedback for physicians.--In order for measure and 
    assessment programs to encourage the highest quality care for 
    Medicare seniors, the Congress finds it critical that CMS provide 
    physicians with feedback on performance in as close to real time as 
    possible. Such timely feedback will ensure that physicians can 
    excel under a system of meaningful measurement.
        (3) Encourage development of new models.--There is great need 
    to test alternatives to Fee-For-Service reimbursement in the 
    Medicare program. One option is the promotion and adoption of new 
    models of care for physicians. To date, there has been significant 
    development and testing of models for primary care. Congress 
    supports these efforts and encourages them to continue in the 
    future. Congress also encourages the development and testing of 
    models of specialty care.

                      TITLE I--MEDICARE EXTENDERS

SEC. 1101. PHYSICIAN PAYMENT UPDATE.

    Section 1848(d) of the Social Security Act (42 U.S.C. 10 1395w-
4(d)) is amended by adding at the end the following new paragraph:
        ``(15) Update for january through march of 2014.--
            ``(A) In general.--Subject to paragraphs (7)(B), (8)(B), 
        (9)(B), (10)(B), (11)(B), (12)(B), (13)(B), and (14)(B), in 
        lieu of the update to the single conversion factor established 
        in paragraph (1)(C) that would otherwise apply for 2014 for the 
        period beginning on January 1, 2014, and ending on March 31, 
        2014, the update to the single conversion factor shall be 0.5 
        percent.
            ``(B) No effect on computation of conversion factor for 
        remaining portion of 2014 and subsequent years.--The conversion 
        factor under this subsection shall be computed under paragraph 
        (1)(A) for the period beginning on April 1, 2014, and ending on 
        December 31, 2014, and for 2015 and subsequent years as if 
        subparagraph (A) had never applied.''.

SEC. 1102. EXTENSION OF WORK GPCI FLOOR.

    Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 1395w-
4(e)(1)(E)) is amended by striking ``January 1, 2014'' and inserting 
``April 1, 2014''.

SEC. 1103. EXTENSION OF THERAPY CAP EXCEPTIONS PROCESS.

    Section 1833(g) of the Social Security Act (42 U.S.C. 1395l(g)) is 
amended--
        (1) in paragraph (5)(A), in the first sentence, by striking 
    ``December 31, 2013'' and inserting ``March 31, 2014''; and
        (2) in paragraph (6)(A)--
            (A) by striking ``December 31, 2013'' and inserting ``March 
        31, 2014''; and
            (B) by striking ``or 2013'' and inserting ``, 2013, or the 
        first three months of 2014''.

SEC. 1104. EXTENSION OF AMBULANCE ADD-ONS.

    (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social 
Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
        (1) in the matter preceding clause (i), by striking ``January 
    1, 2014'' and inserting ``April 1, 2014''; and
        (2) in each of clauses (i) and (ii), by striking ``January 1, 
    2014'' and inserting ``April 1, 2014'' each place it appears.
    (b) Super Rural Ground Ambulance.--Section 1834(l)(12)(A) of the 
Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended by striking 
``January 1, 2014'' and inserting ``April 1, 2014''.

SEC. 1105. MEDICARE INPATIENT HOSPITAL PAYMENT ADJUSTMENT FOR LOW-
              VOLUME HOSPITALS.

    Section 1886(d)(12) of the Social Security Act (42 U.S.C. 
1395ww(d)(12)) is amended--
        (1) in subparagraph (B), in the matter preceding clause (i), by 
    striking ``fiscal year 2014 and subsequent fiscal years'' and 
    inserting ``the portion of fiscal year 2014 beginning on April 1, 
    2014, fiscal year 2015, and subsequent fiscal years'';
        (2) in subparagraph (C)(i)--
            (A) by inserting ``and the portion of fiscal year 2014 
        before'' after ``and 2013,'' each place it appears; and
            (B) by inserting ``or portion of fiscal year'' after 
        ``during the fiscal year''; and
        (3) in subparagraph (D)--
            (A) by inserting ``and the portion of fiscal year 2014 
        before April 1, 2014,'' after ``and 2013,''; and
            (B) by inserting ``or the portion of fiscal year'' after 
        ``in the fiscal year''.

SEC. 1106. MEDICARE-DEPENDENT HOSPITAL (MDH) PROGRAM.

    (a) In General.--Section 1886(d)(5)(G) of the Social Security Act 
(42 U.S.C. 1395ww(d)(5)(G)) is amended--
        (1) in clause (i), by striking ``October 1, 2013'' and 
    inserting ``April 1, 2014''; and
        (2) in clause (ii)(II), by striking ``October 1, 2013'' and 
    inserting ``April 1, 2014''.
    (b) Conforming Amendments.--
        (1) Extension of target amount.--Section 1886(b)(3)(D) of the 
    Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is amended--
            (A) in the matter preceding clause (i), by striking 
        ``October 1, 2013'' and inserting ``April 1, 2014''; and
            (B) in clause (iv), by inserting ``and the portion of 
        fiscal year 2014 before April 1, 2014'' after ``through fiscal 
        year 2013''.
        (2) Permitting hospitals to decline reclassification.--Section 
    13501(e)(2) of the Omnibus Budget Reconciliation Act of 1993 (42 
    U.S.C. 1395ww note) is amended by striking ``through fiscal year 
    2013'' and inserting ``through the first 2 quarters of fiscal year 
    2014''.

SEC. 1107. 1-YEAR EXTENSION OF AUTHORIZATION FOR SPECIAL NEEDS PLANS.

    Section 1859(f)(1) of the Social Security Act (42 U.S.C. 1395w-
28(f)(1)) is amended by striking ``2015'' and inserting ``2016''.

SEC. 1108. 1-YEAR EXTENSION OF MEDICARE REASONABLE COST CONTRACTS.

    Section 1876(h)(5)(C)(ii) of the Social Security Act (42 U.S.C. 
1395mm(h)(5)(C)(ii)) is amended, in the matter preceding subclause (I), 
by striking ``January 1, 2014'' and inserting ``January 1, 2015''.

SEC. 1109. EXTENSION OF EXISTING FUNDING FOR CONTRACT WITH CONSENSUS-
              BASED ENTITY.

    Section 1890(d) of the Social Security Act (42 U.S.C. 1395aaa(d)) 
is amended by adding at the end the following new sentence: ``Amounts 
transferred under the preceding sentence shall remain available until 
expended.''.

SEC. 1110. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME 
              PROGRAMS.

    (a) Additional Funding for State Health Insurance Programs.--
Subsection (a)(1)(B) of section 119 of the Medicare Improvements for 
Patients and Providers Act of 2008 (42 U.S.C. 1395b-3 note), as amended 
by section 3306 of the Patient Protection and Affordable Care Act 
Public Law 111-148) and section 610 of the American Taxpayer Relief Act 
of 2012 (Public Law 112-240), is amended--
        (1) in clause (ii), by striking ``and'' at the end;
        (2) in clause (iii), by striking the period at the end and 
    inserting ``; and''; and
        (3) by inserting after clause (iii) the following new clause:
                ``(iv) for the portion of fiscal year 2014 before April 
            1, 2014, of $3,750,000.''.
    (b) Additional Funding for Area Agencies on Aging.--Subsection 
(b)(1)(B) of such section 119, as so amended, is amended--
        (1) in clause (ii), by striking ``and'' at the end;
        (2) in clause (iii), by striking the period at the end and 
    inserting ``; and''; and
        (3) by inserting after clause (iii) the following new clause:
                ``(iv) for the portion of fiscal year 2014 before April 
            1, 2014, of $3,750,000.''.
    (c) Additional Funding for Aging and Disability Resource Centers.--
Subsection (c)(1)(B) of such section 119, as so amended, is amended--
        (1) in clause (ii), by striking ``and'' at the end;
        (2) in clause (iii), by striking the period at the end and 
    inserting ``; and''; and
        (3) by inserting after clause (iii) the following new clause:
                ``(iv) for the portion of fiscal year 2014 before April 
            1, 2014, of $2,500,000.''.
    (d) Additional Funding for Contract With the National Center for 
Benefits and Outreach Enrollment.--Subsection (d)(2) of such section 
119, as so amended, is amended--
        (1) in clause (ii), by striking ``and'' at the end;
        (2) in clause (iii), by striking the period at the end and 
    inserting ``; and''; and
        (3) by inserting after clause (iii) the following new clause:
                ``(iv) for the portion of fiscal year 2014 before April 
            1, 2014, of $2,500,000.''.

                   TITLE II--OTHER HEALTH PROVISIONS

SEC. 1201. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

    (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``December 
2013'' and inserting ``March 2014''.
    (b) Extending Total Amount Available for Allocation.--Section 
1933(g) of the Social Security Act (42 U.S.C. 1396u-3(g)) is amended--
        (1) in paragraph (2)--
            (A) in subparagraph (S), by striking ``and'' after the 
        semicolon;
            (B) in subparagraph (T), by striking the period at the end 
        and inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
            ``(U) for the period that begins on January 1, 2014, and 
        ends on March 31, 2014, the total allocation amount is 
        $200,000,000.''.

SEC. 1202. TEMPORARY EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE 
              (TMA).

    Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42 
U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended by striking 
``December 31, 2013'' and inserting ``March 31, 2014''.

SEC. 1203. EXTENSION OF FUNDING FOR FAMILY-TO-FAMILY HEALTH INFORMATION 
              CENTERS.

     Section 501(c)(1)(A) of the Social Security Act (42 U.S.C. 
701(c)(1)(A)) is amended--
        (1) in clause (ii), by striking at the end ``and'';
        (2) in clause (iii), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new clause:
                ``(iv) $2,500,000 for the portion of fiscal year 2014 
            before April 1, 2014.''.

SEC. 1204. DELAY OF REDUCTIONS TO MEDICAID DSH ALLOTMENTS.

    (a) In General.--Section 1923(f) of the Social Security Act (42 
U.S.C. 1396r-4(f)) is amended--
        (1) in paragraph (7)(A)--
            (A) in clause (i), by striking ``2014'' and inserting 
        ``2016''; and
            (B) in clause (ii)--
                (i) by striking subclauses (I) and (II);
                (ii) by redesignating subclauses (III) through (VII) as 
            subclauses (I) through (V), respectively; and
                (iii) in subclause (I) (as redesignated by clause 
            (ii)), by striking ``$600,000,000'' and inserting 
            ``$1,200,000,000''; and
        (2) in paragraph (8)--
            (A) by redesignating subparagraph (C) as subparagraph (D);
            (B) by inserting after subparagraph (B) the following new 
        subparagraph:
            ``(C) Fiscal year 2023.--Only with respect to fiscal year 
        2023, the DSH allotment for a State, in lieu of the amount 
        determined under paragraph (3) for the State for that year, 
        shall be equal to the DSH allotment for the State for fiscal 
        year 2022, as determined under subparagraph (B), increased, 
        subject to subparagraphs (B) and (C) of paragraph (3), and 
        paragraph (5), by the percentage change in the consumer price 
        index for all urban consumers (all items; U.S. city average), 
        for fiscal year 2022.''; and
            (C) in subparagraph (D) (as redesignated by subparagraph 
        (A)), by striking ``fiscal year 2022'' and inserting ``fiscal 
        year 2023''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective as of October 1, 2013.

SEC. 1205. REALIGNMENT OF THE MEDICARE SEQUESTER FOR FISCAL YEAR 2023.

    Paragraph (6) (relating to implementing direct spending reductions, 
as redesignated by section 101(d)(2)(C), and as amended by section 
101(c), of the Bipartisan Budget Act of 2013) of section 251A of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
901a) is amended by adding at the end the following new subparagraph:
        ``(C) Notwithstanding the 2 percent limit specified in 
    subparagraph (A) for payments for the Medicare programs specified 
    in section 256(d), the sequestration order of the President under 
    such subparagraph for fiscal year 2023 shall be applied to such 
    payments so that--
            ``(i) with respect to the first 6 months in which such 
        order is effective for such fiscal year, the payment reduction 
        shall be 2.90 percent; and
            ``(ii) with respect to the second 6 months in which such 
        order is so effective for such fiscal year, the payment 
        reduction shall be 1.11 percent.''.

SEC. 1206. PAYMENT FOR INPATIENT SERVICES IN LONG-TERM CARE HOSPITALS 
              (LTCHS).

    (a) Establishment of Criteria for Application of Site Neutral 
Payment.--
        (1) In general.--Section 1886(m) of the Social Security Act (42 
    U.S.C. 1395ww(m)) is amended by adding at the end the following:
        ``(6) Application of site neutral ipps payment rate in certain 
    cases.--
            ``(A) General application of site neutral ipps payment 
        amount for discharges failing to meet applicable criteria.--
                ``(i) In general.--For a discharge in cost reporting 
            periods beginning on or after October 1, 2015, except as 
            provided in clause (ii) and subparagraph (C), payment under 
            this title to a long-term care hospital for inpatient 
            hospital services shall be made at the applicable site 
            neutral payment rate (as defined in subparagraph (B)).
                ``(ii) Exception for certain discharges meeting 
            criteria.--Clause (i) shall not apply (and payment shall be 
            made to a long-term care hospital without regard to this 
            paragraph) for a discharge if--

                    ``(I) the discharge meets the ICU criterion under 
                clause (iii) or the ventilator criterion under clause 
                (iv); and
                    ``(II) the discharge does not have a principal 
                diagnosis relating to a psychiatric diagnosis or to 
                rehabilitation.

                ``(iii) Intensive care unit (icu) criterion.--

                    ``(I) In general.--The criterion specified in this 
                clause (in this paragraph referred to as the `ICU 
                criterion'), for a discharge from a long-term care 
                hospital, is that the stay in the long-term care 
                hospital ending with such discharge was immediately 
                preceded by a discharge from a stay in a subsection (d) 
                hospital that included at least 3 days in an intensive 
                care unit (ICU), as determined by the Secretary.
                    ``(II) Determining icu days.--In determining 
                intensive care unit days under subclause (I), the 
                Secretary shall use data from revenue center codes 020x 
                or 021x (or such successor codes as the Secretary may 
                establish).

                ``(iv) Ventilator criterion.--The criterion specified 
            in this clause (in this paragraph referred to as the 
            `ventilator criterion'), for a discharge from a long-term 
            care hospital, is that--

                    ``(I) the stay in the long-term care hospital 
                ending with such discharge was immediately preceded by 
                a discharge from a stay in a subsection (d) hospital; 
                and
                    ``(II) the individual discharged was assigned to a 
                Medicare-Severity-Long-Term-Care-Diagnosis-Related-
                Group (MS-LTC-DRG) based on the receipt of ventilator 
                services of at least 96 hours.

            ``(B) Applicable site neutral payment rate defined.--
                ``(i) In general.--In this paragraph, the term 
            `applicable site neutral payment rate' means--

                    ``(I) for discharges in cost reporting periods 
                beginning during fiscal year 2016 or fiscal year 2017, 
                the blended payment rate specified in clause (iii); and
                    ``(II) for discharges in cost reporting periods 
                beginning during fiscal year 2018 or a subsequent 
                fiscal year, the site neutral payment rate (as defined 
                in clause (ii)).

                ``(ii) Site neutral payment rate defined.--In this 
            paragraph, the term `site neutral payment rate' means the 
            lower of--

                    ``(I) the IPPS comparable per diem amount 
                determined under paragraph (d)(4) of section 412.529 of 
                title 42, Code of Federal Regulations, including any 
                applicable outlier payments under section 412.525 of 
                such title; or
                    ``(II) 100 percent of the estimated cost for the 
                services involved.

                ``(iii) Blended payment rate.--The blended payment rate 
            specified in this clause, for a long-term care hospital for 
            inpatient hospital services for a discharge, is comprised 
            of--

                    ``(I) half of the site neutral payment rate (as 
                defined in clause (ii)) for the discharge; and
                    ``(II) half of the payment rate that would 
                otherwise be applicable to such discharge without 
                regard to this paragraph, as determined by the 
                Secretary.

            ``(C) Limiting payment for all hospital discharges to site 
        neutral payment rate for hospitals failing to meet applicable 
        ltch discharge thresholds.--
                ``(i) Notice of ltch discharge payment percentage.--For 
            cost reporting periods beginning during or after fiscal 
            year 2016, the Secretary shall inform each long-term care 
            hospital of its LTCH discharge payment percentage (as 
            defined in clause (iv)) for such period.
                ``(ii) Limitation.--For cost reporting periods 
            beginning during or after fiscal year 2020, if the 
            Secretary determines for a long-term care hospital that its 
            LTCH discharge payment percentage for the period is not at 
            least 50 percent--

                    ``(I) the Secretary shall inform the hospital of 
                such fact; and
                    ``(II) subject to clause (iii), for all discharges 
                in the hospital in each succeeding cost reporting 
                period, the payment amount under this subsection shall 
                be the payment amount that would apply under subsection 
                (d) for the discharge if the hospital were a subsection 
                (d) hospital.

                ``(iii) Process for reinstatement.--The Secretary shall 
            establish a process whereby a long-term care hospital may 
            seek to and have the provisions of subclause (II) of clause 
            (ii) discontinued with respect to that hospital.
                ``(iv) LTCH discharge payment percentage.--In this 
            subparagraph, the term `LTCH discharge payment percentage' 
            means, with respect to a long-term care hospital for a cost 
            reporting period beginning during or after fiscal year 
            2020, the ratio (expressed as a percentage) of--

                    ``(I) the number of discharges for such hospital 
                and period for which payment is not made at the site 
                neutral payment rate, to
                    ``(II) the total number of discharges for such 
                hospital and period.

            ``(D) Inclusion of subsection (d) puerto rico hospitals.--
        In this paragraph, any reference in this paragraph to a 
        subsection (d) hospital shall be deemed to include a reference 
        to a subsection (d) Puerto Rico hospital.''.
        (2) Medpac study and report on impact of changes.--
            (A) Study.--The Medicare Payment Assessment Commission 
        shall examine the effect of applying section 1886(m)(6) of the 
        Social Security Act, as added by the amendment made by 
        paragraph (1), on--
                (i) the quality of patient care in long-term care 
            hospitals;
                (ii) the use of hospice care and post-acute care 
            settings;
                (iii) different types of long-term care hospitals; and
                (iv) the growth in Medicare spending for services in 
            such hospitals.
            (B) Report.--Not later than June 30, 2019, the Commission 
        shall submit to Congress a report on such study. The Commission 
        shall include in such report such recommendations for changes 
        in the application of such section as the Commission deems 
        appropriate as well as the impact of the application of such 
        section on the need to continue applying the 25 percent rule 
        described under sections 412.534 and 412.536 of title 42, Code 
        of Federal Regulations.
        (3) Calculation of length of stay excluding cases paid on a 
    site neutral basis.--
            (A) In general.--For discharges occurring in cost reporting 
        periods beginning on or after October 1, 2015, subject to 
        subparagraph (B), in calculating the length of stay requirement 
        applicable to a long-term care hospital or satellite facility 
        under section 1886(d)(1)(B)(iv)(I) of the Social Security Act 
        (42 U.S.C. 1395ww(d)(1)(B)(iv)(I)) and section 1861(ccc)(2) of 
        such Act (42 U.S.C. 1395x(ccc)(2)), the Secretary of Health and 
        Human Services shall exclude the following:
                (i) Site neutral payment.--Any patient for whom payment 
            is made at the site neutral payment rate (as defined in 
            section 1886(m)(6)(B)(ii)) of such Act, as added by 
            paragraph (1)).
                (ii) Medicare advantage.--Any patient for whom payment 
            is made under a Medicare Advantage plan under part C of 
            title XVIII of such Act.
            (B) Limitation on converting subsection (d) hospitals.--
        Subparagraph (A) shall not apply to a hospital that is 
        classified as of December 10, 2013, as a subsection (d) 
        hospital (as defined in section 1886(d)(1)(B) of the Social 
        Security Act, 42 U.S.C. 1395ww(d)(1)(B)) for purposes of 
        determining whether the requirements of section 
        1886(d)(1)(B)(iv)(I) or 1861(ccc)(2) of such Act (42 U.S.C. 
        1395ww(d)(1)(B)(iv)(I), 1395x(ccc)(2)) are met.
    (b) Extension of Certain LTCH Payment Rules and Moratorium on the 
Establishment of Certain Hospitals and Facilities.--
        (1) Extension of certain payment rules.--
            (A) Payment for hospitals-within-hospitals.--Paragraph 
        (2)(C) of section 114(c) of the Medicare, Medicaid, and SCHIP 
        Extension Act of 2007 (42 U.S.C. 1395ww note), as amended by 
        sections 3106(a) and 10312(a) of Public Law 111-148, is amended 
        by striking ``5-year period'' and inserting ``9-year period''.
            (B) 25 percent patient threshold payment adjustment; making 
        the grandfathered exemption for long-term care hospitals 
        permanent.--Section 114(c)(1) of the Medicare, Medicaid, and 
        SCHIP Extension Act of 2007 (42 U.S.C. 1395ww note), as amended 
        by sections 3106(a) and 10312(a) of Public Law 111-148, is 
        amended--
                (i) in the matter preceding subparagraph (A), by 
            striking ``for a 5-year period''; and
                (ii) in subparagraph (A), by inserting ``for a 9-year 
            period,'' before ``section 412.536''.
            (C) Report assessing continued suspension of 25 percent 
        rule.--Not later than 1 year before the end of the 9-year 
        period referred to in section 114(c)(1) of the Medicare, 
        Medicaid, and SCHIP Extension Act of 2007 (42 U.S.C. 1395ww 
        note), as amended by subparagraph (B), the Secretary of Health 
        and Human Services shall submit to Congress a report on the 
        need for any further extensions (or modifications of the 
        extensions) of the 25 percent rule described in sections 
        412.534 and 412.536 of title 42, Code of Federal Regulations, 
        particularly taking into account the application of section 
        1886(m)(6) of the Social Security Act, as added by subsection 
        (a)(1).
        (2) Extension of moratorium on establishment of and increase in 
    beds for ltchs.--Section 114(d) of the Medicare, Medicaid, and 
    SCHIP Extension Act of 2007 (42 U.S.C. 1395ww note), as amended by 
    sections 3106(b) and 10312(b) of Public Law 111-148, is amended--
            (A) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting after ``5-year period'' the following: ``(and 
        for the period beginning January 1, 2015, and ending September 
        30, 2017)''; and
            (B) by adding at the end the following new paragraph:
        ``(6) Limitation on application of exceptions.--Paragraphs (2) 
    and (3) shall not apply during the period beginning January 1, 
    2015, and ending September 30, 2017.''.
    (c) Additional Quality Measure.--Section 1886(m)(5)(D) of the 
Social Security Act (42 U.S.C. 1395ww(m)(5)(D)) is amended by adding at 
the end the following new clause:
                ``(iv) Additional quality measures.--Not later than 
            October 1, 2015, the Secretary shall establish a functional 
            status quality measure for change in mobility among 
            inpatients requiring ventilator support.''.
    (d) Review of Treatment of Certain LTCHs.--
        (1) Evaluation.--As part of the annual rulemaking for fiscal 
    year 2015 or fiscal year 2016 to carry out the payment rates under 
    subsection (d) of section 1886 of the Social Security Act (42 
    U.S.C. 1395ww), the Secretary shall evaluate both the payment rates 
    and regulations governing hospitals which are classified under 
    subclause (II) of subsection (d)(1)(B)(iv) of such section.
        (2) Adjustment authority.--Based upon such evaluation, the 
    Secretary may adjust payment rates under subsection (b)(3) of 
    section 1886 of the Social Security Act (42 U.S.C. 1395ww) for a 
    hospital so classified (such as payment based upon the TEFRA-
    payment model) and may adjust the regulations governing such 
    hospitals, including applying the regulations governing hospitals 
    which are classified under clause (I) of subsection (d)(1)(B) of 
    such section.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.