[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1314 Engrossed Amendment House (EAH)]

<DOC>
                In the House of Representatives, U. S.,

                                                      October 28, 2015.
    Resolved, That the House agree to the amendment of the Senate to 
the bill (H.R. 1314) entitled ``An Act to amend the Internal Revenue 
Code of 1986 to provide for a right to an administrative appeal 
relating to adverse determinations of tax-exempt status of certain 
organizations.'', with the following

                  HOUSE AMENDMENT TO SENATE AMENDMENT:

            In lieu of the matter proposed to be inserted by the 
      amendment of the Senate, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bipartisan Budget 
Act of 2015''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

                      TITLE I--BUDGET ENFORCEMENT

Sec. 101. Amendments to the Balanced Budget and Emergency Deficit 
                            Control Act of 1985.
Sec. 102. Authority for fiscal year 2017 budget resolution in the 
                            Senate.

                         TITLE II--AGRICULTURE

Sec. 201. Standard Reinsurance Agreement.

                          TITLE III--COMMERCE

Sec. 301. Debt collection improvements.

                 TITLE IV--STRATEGIC PETROLEUM RESERVE

Sec. 401. Strategic Petroleum Reserve test drawdown and sale 
                            notification and definition change.
Sec. 402. Strategic Petroleum Reserve mission readiness optimization.
Sec. 403. Strategic Petroleum Reserve drawdown and sale.
Sec. 404. Energy Security and Infrastructure Modernization Fund.

                           TITLE V--PENSIONS

Sec. 501. Single employer plan annual premium rates.
Sec. 502. Pension Payment Acceleration.
Sec. 503. Mortality tables.
Sec. 504. Extension of current funding stabilization percentages to 
                            2018, 2019, and 2020.

                         TITLE VI--HEALTH CARE

Sec. 601. Maintaining 2016 Medicare part B premium and deductible 
                            levels consistent with actuarially fair 
                            rates.
Sec. 602. Applying the Medicaid additional rebate requirement to 
                            generic drugs.
Sec. 603. Treatment of off-campus outpatient departments of a provider.
Sec. 604. Repeal of automatic enrollment requirement.

                          TITLE VII--JUDICIARY

Sec. 701. Civil monetary penalty inflation adjustments.
Sec. 702. Crime Victims Fund.
Sec. 703. Assets Forfeiture Fund.

                      TITLE VIII--SOCIAL SECURITY

Sec. 801. Short title.

        Subtitle A--Ensuring Correct Payments and Reducing Fraud

Sec. 811. Expansion of cooperative disability investigations units.
Sec. 812. Exclusion of certain medical sources of evidence.
Sec. 813. New and stronger penalties.
Sec. 814. References to Social Security and Medicare in electronic 
                            communications.
Sec. 815. Change to cap adjustment authority.

     Subtitle B--Promoting Opportunity for Disability Beneficiaries

Sec. 821. Temporary reauthorization of disability insurance 
                            demonstration project authority.
Sec. 822. Modification of demonstration project authority.
Sec. 823. Promoting opportunity demonstration project.
Sec. 824. Use of electronic payroll data to improve program 
                            administration.
Sec. 825. Treatment of earnings derived from services.
Sec. 826. Electronic reporting of earnings.

            Subtitle C--Protecting Social Security Benefits

Sec. 831. Closure of unintended loopholes.
Sec. 832. Requirement for medical review.
Sec. 833. Reallocation of payroll tax revenue.
Sec. 834. Access to financial information for waivers and adjustments 
                            of recovery.

    Subtitle D--Relieving Administrative Burdens and Miscellaneous 
                               Provisions

Sec. 841. Interagency coordination to improve program administration.
Sec. 842. Elimination of quinquennial determinations relating to wage 
                            credits for military service prior to 1957.
Sec. 843. Certification of benefits payable to a divorced spouse of a 
                            railroad worker to the Railroad Retirement 
                            Board.
Sec. 844. Technical amendments to eliminate obsolete provisions.
Sec. 845. Reporting requirements to Congress.
Sec. 846. Expedited examination of administrative law judges.

           TITLE IX--TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT

Sec. 901. Temporary extension of public debt limit.
Sec. 902. Restoring congressional authority over the national debt.

                       TITLE X--SPECTRUM PIPELINE

Sec. 1001. Short title.
Sec. 1002. Definitions.
Sec. 1003. Rule of construction.
Sec. 1004. Identification, reallocation, and auction of Federal 
                            spectrum.
Sec. 1005. Additional uses of Spectrum Relocation Fund.
Sec. 1006. Plans for auction of certain spectrum.
Sec. 1007. FCC auction authority.
Sec. 1008. Reports to Congress.

         TITLE XI--REVENUE PROVISIONS RELATED TO TAX COMPLIANCE

Sec. 1101. Partnership audits and adjustments.
Sec. 1102. Partnership interests created by gift.

             TITLE XII--DESIGNATION OF SMALL HOUSE ROTUNDA

Sec. 1201. Designating small House rotunda as ``Freedom Foyer''.

                      TITLE I--BUDGET ENFORCEMENT

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 (2 U.S.C. 
901(c)) is amended by striking paragraphs (3) and (4) and inserting the 
following:
            ``(3) for fiscal year 2016--
                    ``(A) for the revised security category, 
                $548,091,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category 
                $518,491,000,000 in new budget authority;
            ``(4) for fiscal year 2017--
                    ``(A) for the revised security category, 
                $551,068,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $518,531,000,000 in new budget authority;''.
    (b) Direct Spending Adjustments for Fiscal Years 2016 and 2017.--
Section 251A of the Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 901a), is amended--
            (1) in paragraph (5)(B), by striking ``paragraph (10)'' and 
        inserting ``paragraphs (10) and (11)''; and
            (2) by adding at the end the following:
            ``(11) Implementing direct spending reductions for fiscal 
        years 2016 and 2017.--(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 2016 and 2017 by the 
        Bipartisan Budget Act of 2015.
            ``(B) Paragraph (5)(B) shall not be implemented for fiscal 
        years 2016 and 2017.''.
    (c) Extension of Direct Spending Reductions for Fiscal Year 2025.--
Section 251A(6) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 901a(6)) is amended--
            (1) in subparagraph (B), in the matter preceding clause 
        (i), by striking ``and for fiscal year 2024'' and by inserting 
        ``for fiscal year 2024, and for fiscal year 2025'';
            (2) by striking subparagraph (C) and redesignating 
        subparagraph (D) as subparagraph (C); and
            (3) in subparagraph (C) (as so redesignated), by striking 
        ``fiscal year 2024'' and inserting ``fiscal year 2025''.
    (d) Overseas Contingency Operations Amounts.--In fiscal years 2016 
and 2017, the adjustments under section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
901(b)(2)(A)) for Overseas Contingency Operations/Global War on 
Terrorism appropriations will be as follows:
            (1) For budget function 150--
                    (A) for fiscal year 2016, $14,895,000,000; and
                    (B) for fiscal year 2017, $14,895,000,000.
            (2) For budget function 050--
                    (A) for fiscal year 2016, $58,798,000,000; and
                    (B) for fiscal year 2017, $58,798,000,000.
This subsection shall not affect the applicability of section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act 
of 1985.

SEC. 102. AUTHORITY FOR FISCAL YEAR 2017 BUDGET RESOLUTION IN THE 
              SENATE.

    (a) Fiscal Year 2017.--For the purpose of enforcing the 
Congressional Budget Act of 1974, after April 15, 2016, 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 2017 with 
appropriate budgetary levels for fiscal years 2018 through 2026.
    (b) Committee Allocations, Aggregates, and Levels.--After April 15, 
2016, but not later than May 15, 2016, the Chairman of the Committee on 
the Budget of the Senate shall file--
            (1) for the Committee on Appropriations, committee 
        allocations for fiscal year 2017 consistent with discretionary 
        spending limits set forth in section 251(c)(4) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985, as amended by 
        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 2017, 
        2017 through 2021, and 2017 through 2026 consistent with 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;
            (3) aggregate spending levels for fiscal year 2017 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 2017, 2017 
        through 2021, and 2017 through 2026 consistent with 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; and
            (5) levels of Social Security revenues and outlays for 
        fiscal years 2017, 2017 through 2021, and 2017 through 2026 
        consistent with 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 
        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 2017 the matter contained in subtitles 
A and B of title IV of S. Con. Res. 11 (114th Congress) updated by 1 
fiscal year.
    (d) Expiration.--This section shall expire if a concurrent 
resolution on the budget for fiscal year 2017 is agreed to by the 
Senate and the House of Representatives pursuant to section 301 of the 
Congressional Budget Act of 1974.

                         TITLE II--AGRICULTURE

SEC. 201. STANDARD REINSURANCE AGREEMENT.

    Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(8)) is amended--
            (1) in subparagraph (A), in the matter preceding clause 
        (i), by striking ``may renegotiate'' and all that follows 
        through the end of clause (ii) and inserting the following: 
        ``shall renegotiate the financial terms and conditions of each 
        Standard Reinsurance Agreement--
                            ``(i) not later than December 31, 2016; and
                            ``(ii) not less than once during each 
                        period of 5 reinsurance years thereafter.''; 
                        and
            (2) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) Cap on overall rate of return.--
                Notwithstanding subparagraph (F), the Board shall 
                ensure that the Standard Reinsurance Agreement 
                renegotiated under subparagraph (A)(i) establishes a 
                target rate of return for the approved insurance 
                providers, taken as a whole, that does not exceed 8.9 
                percent of retained premium for each of the 2017 
                through 2026 reinsurance years.''.

                          TITLE III--COMMERCE

SEC. 301. DEBT COLLECTION IMPROVEMENTS.

    (a) In General.--Section 227(b) of the Communications Act of 1934 
(47 U.S.C. 227(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)(iii), by inserting ``, 
                unless such call is made solely to collect a debt owed 
                to or guaranteed by the United States'' after ``charged 
                for the call''; and
                    (B) in subparagraph (B), by inserting ``, is made 
                solely pursuant to the collection of a debt owed to or 
                guaranteed by the United States,'' after ``purposes''; 
                and
            (2) in paragraph (2)--
                    (A) in subparagraph (F), by striking ``and'' at the 
                end;
                    (B) in subparagraph (G), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(H) may restrict or limit the number and duration 
                of calls made to a telephone number assigned to a 
                cellular telephone service to collect a debt owed to or 
                guaranteed by the United States.''.
    (b) Deadline for Regulations.--Not later than 9 months after the 
date of enactment of this Act, the Federal Communications Commission, 
in consultation with the Department of the Treasury, shall prescribe 
regulations to implement the amendments made by this section.

                 TITLE IV--STRATEGIC PETROLEUM RESERVE

SEC. 401. STRATEGIC PETROLEUM RESERVE TEST DRAWDOWN AND SALE 
              NOTIFICATION AND DEFINITION CHANGE.

    (a) Notice to Congress.--Section 161(g) of the Energy Policy and 
Conservation Act (42 U.S.C. 6241(g)) is amended by striking paragraph 
(8) and inserting the following:
            ``(8) Notice to congress.--
                    ``(A) Prior notice.--Not less than 14 days before 
                the date on which a test is carried out under this 
                subsection, the Secretary shall notify both Houses of 
                Congress of the test.
                    ``(B) Emergency.--The prior notice requirement in 
                subparagraph (A) shall not apply if the Secretary 
                determines that an emergency exists which requires a 
                test to be carried out, in which case the Secretary 
                shall notify both Houses of Congress of the test as 
                soon as possible.
                    ``(C) Detailed description.--
                            ``(i) In general.--Not later than 180 days 
                        after the date on which a test is completed 
                        under this subsection, the Secretary shall 
                        submit to both Houses of Congress a detailed 
                        description of the test.
                            ``(ii) Report.--A detailed description 
                        submitted under clause (i) may be included as 
                        part of a report made to the President and 
                        Congress under section 165.''.
    (b) Definition Change.--Section 3(8)(C)(iii) of the Energy Policy 
and Conservation Act (42 U.S.C. 6202(8)(C)(iii)) is amended by striking 
``sabotage or an act of God'' and inserting ``sabotage, an act of 
terrorism, or an act of God''.

SEC. 402. STRATEGIC PETROLEUM RESERVE MISSION READINESS OPTIMIZATION.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall--
            (1) complete a long-range strategic review of the Strategic 
        Petroleum Reserve; and
            (2) develop and submit to Congress a proposed action plan, 
        including a proposed implementation schedule, that--
                    (A) specifies near- and long-term roles of the 
                Strategic Petroleum Reserve relative to the energy and 
                economic security goals and objectives of the United 
                States;
                    (B) describes whether existing legal authorities 
                that govern the policies, configuration, and 
                capabilities of the Strategic Petroleum Reserve are 
                adequate to ensure that the Strategic Petroleum Reserve 
                can meet the current and future energy and economic 
                security goals and objectives of the United States;
                    (C) identifies the configuration and performance 
                capabilities of the Strategic Petroleum Reserve and 
                recommends an action plan to achieve the optimal--
                            (i) capacity, location, and composition of 
                        petroleum products in the Strategic Petroleum 
                        Reserve; and
                            (ii) storage and distributional 
                        capabilities; and
                    (D) estimates the resources required to attain and 
                maintain the long-term sustainability and operational 
                effectiveness of the Strategic Petroleum Reserve.

SEC. 403. STRATEGIC PETROLEUM RESERVE DRAWDOWN AND SALE.

    (a) Drawdown and Sale.--Notwithstanding section 161 of the Energy 
Policy and Conservation Act (42 U.S.C. 6241), except as provided in 
subsection (b), the Secretary of Energy shall draw down and sell--
            (1) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2018;
            (2) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2019;
            (3) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2020;
            (4) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2021;
            (5) 8,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2022;
            (6) 10,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2023;
            (7) 10,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2024; and
            (8) 10,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2025.
    (b) Emergency Protection.--The Secretary shall not draw down and 
sell crude oil under this section in amounts that would limit the 
authority to sell petroleum products under section 161(h) of the Energy 
Policy and Conservation Act (42 U.S.C. 6241(h)) in the full amount 
authorized by that subsection.
    (c) Proceeds.--Proceeds from a sale under this section shall be 
deposited into the general fund of the Treasury during the fiscal year 
in which the sale occurs.

SEC. 404. ENERGY SECURITY AND INFRASTRUCTURE MODERNIZATION FUND.

    (a) Establishment.--There is hereby established in the Treasury of 
the United States a fund to be known as the Energy Security and 
Infrastructure Modernization Fund (referred to in this section as the 
``Fund''), consisting of--
            (1) collections deposited in the Fund under subsection (c); 
        and
            (2) amounts otherwise appropriated to the Fund.
    (b) Purpose.--The purpose of the Fund is to provide for the 
construction, maintenance, repair, and replacement of Strategic 
Petroleum Reserve facilities.
    (c) Collection and Deposit of Sale Proceeds in Fund.--
            (1) Drawdown and sale.--Notwithstanding section 161 of the 
        Energy Policy and Conservation Act (42 U.S.C. 6241), to the 
        extent provided in advance in appropriation Acts, the Secretary 
        of Energy shall draw down and sell crude oil from the Strategic 
        Petroleum Reserve in amounts as authorized under subsection 
        (e), except as provided in paragraph (2). Amounts received for 
        a sale under this paragraph shall be deposited into the Fund 
        during the fiscal year in which the sale occurs. Such amounts 
        shall remain available in the Fund without fiscal year 
        limitation.
            (2) Emergency protection.--The Secretary shall not draw 
        down and sell crude oil under this subsection in amounts that 
        would limit the authority to sell petroleum products under 
        section 161(h) of the Energy Policy and Conservation Act (42 
        U.S.C. 6241(h)) in the full amount authorized by that 
        subsection.
    (d) Authorized Uses of Fund.--
            (1) In general.--Amounts in the Fund may be used for, or 
        may be credited as offsetting collections for amounts used for, 
        carrying out the program described in paragraph (2)(B), to the 
        extent provided in advance in appropriation Acts.
            (2) Program to modernize the strategic petroleum reserve.--
                    (A) Findings.--Congress finds the following:
                            (i) The Strategic Petroleum Reserve is one 
                        of the Nation's most valuable energy security 
                        assets.
                            (ii) The age and condition of the Strategic 
                        Petroleum Reserve have diminished its value as 
                        a Federal energy security asset.
                            (iii) Global oil markets and the location 
                        and amount of United States oil production and 
                        refining capacity have dramatically changed in 
                        the 40 years since the establishment of the 
                        Strategic Petroleum Reserve.
                            (iv) Maximizing the energy security value 
                        of the Strategic Petroleum Reserve requires a 
                        modernized infrastructure that meets the 
                        drawdown and distribution needs of changed 
                        domestic and international oil and refining 
                        market conditions.
                    (B) Program.--The Secretary of Energy shall 
                establish a Strategic Petroleum Reserve modernization 
                program to protect the United States economy from the 
                impacts of emergency product supply disruptions. The 
                program may include--
                            (i) operational improvements to extend the 
                        useful life of surface and subsurface 
                        infrastructure;
                            (ii) maintenance of cavern storage 
                        integrity; and
                            (iii) addition of infrastructure and 
                        facilities to optimize the drawdown and 
                        incremental distribution capacity of the 
                        Strategic Petroleum Reserve.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated (and drawdowns and sales under subsection (c) in an equal 
amount are authorized) for carrying out subsection (d)(2)(B), 
$2,000,000,000 for the period encompassing fiscal years 2017 through 
2020.
    (f) Transmission of Department Budget Requests.--The Secretary of 
Energy shall prepare and submit in the Department's annual budget 
request to Congress--
            (1) an itemization of the amounts of funds necessary to 
        carry out subsection (d); and
            (2) a designation of any activities thereunder for which a 
        multiyear budget authority would be appropriate.
    (g) Sunset.--The authority of the Secretary to draw down and sell 
crude oil from the Strategic Petroleum Reserve under this section shall 
expire at the end of fiscal year 2020.

                           TITLE V--PENSIONS

SEC. 501. SINGLE EMPLOYER PLAN ANNUAL PREMIUM RATES.

    (a) Flat-Rate Premium.--
            (1) In general.--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 by striking ``and'' at the end of 
        subclause (IV), by striking the period at the end of subclause 
        (V) and inserting a semicolon, and by inserting after subclause 
        (V) the following:
                                    ``(VI) for plan years beginning 
                                after December 31, 2016, and before 
                                January 1, 2018, $69;
                                    ``(VII) for plan years beginning 
                                after December 31, 2017, and before 
                                January 1, 2019, $74; and
                                    ``(VIII) for plan years beginning 
                                after December 31, 2018, $80.''.
            (2) Premium rates after 2019.--Section 4006(a)(3)(G) of 
        such Act (29 U.S.C. 1306(a)(3)(G)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``2016'' and inserting ``2019''; and
                    (B) in clause (i)(II) by striking ``2014'' and 
                inserting ``2017''.
    (b) 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 the subparagraph heading, by striking 
                ``increase in 2014 and 2015'' and inserting 
                ``increases'';
                    (B) in clause (ii), by striking ``and'' at the end;
                    (C) in clause (iii), by striking the period at the 
                end and inserting a semicolon; and
                    (D) by adding at the end the following:
                            ``(iv) in the case of plan years beginning 
                        in calendar year 2017, by $3;
                            ``(v) in the case of plan years beginning 
                        in calendar year 2018, by $4; and
                            ``(vi) in the case of plan years beginning 
                        in calendar year 2019, by $4.''.
            (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 (iii), by striking ``and'' at 
                        the end;
                            (ii) in clause (iv), by striking the period 
                        at the end and inserting a semicolon; and
                            (iii) by adding at the end the following:
                            ``(v) for plan years beginning after 
                        calendar year 2017, the amount in effect for 
                        plan years beginning in 2017 (determined after 
                        application of subparagraph (C));
                            ``(vi) for plan years beginning after 
                        calendar year 2018, the amount in effect for 
                        plan years beginning in 2018 (determined after 
                        application of subparagraph (C)); and
                            ``(vii) for plan years beginning after 
                        calendar year 2019, the amount in effect for 
                        plan years beginning in 2019 (determined after 
                        application of subparagraph (C)).''; and
                    (B) in subparagraph (D)--
                            (i) in clause (iii), by striking ``and'' at 
                        the end;
                            (ii) in clause (iv), by striking the period 
                        at the end and inserting a semicolon; and
                            (iii) by adding at the end the following:
                            ``(v) 2015, in the case of plan years 
                        beginning after calendar year 2017;
                            ``(vi) 2016, in the case of plan years 
                        beginning after calendar year 2018; and
                            ``(vii) 2017, in the case of plan years 
                        beginning after calendar year 2019.''.
            (3) Effective date.--The amendments made by this section 
        shall apply to plan years beginning after December 31, 2016.

SEC. 502. PENSION PAYMENT ACCELERATION.

    Notwithstanding section 4007(a) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 of title 
29, Code of Federal Regulations, for plan years commencing after 
December 31, 2024, and before January 1, 2026, the premium due date for 
such plan years shall be the fifteenth day of the ninth calendar month 
that begins on or after the first day of the premium payment year.

SEC. 503. MORTALITY TABLES.

    (a) Credibility.--For purposes of subclause (I) of section 
430(h)(3)(C)(iii) of the Internal Revenue Code of 1986 and subclause 
(I) of section 303(h)(3)(C)(iii) of the Employee Retirement Income 
Security Act of 1974, the determination of whether plans have credible 
information shall be made in accordance with established actuarial 
credibility theory, which--
            (1) is materially different from rules under such section 
        of such Code, including Revenue Procedure 2007-37, that are in 
        effect on the date of the enactment of this Act; and
            (2) permits the use of tables that reflect adjustments to 
        the tables described in subparagraphs (A) and (B) of section 
        430(h)(3) of such Code, and subparagraphs (A) and (B) of 
        section 303(h)(3) of such Act, if such adjustments are based on 
        the experience described in subclause (II) of section 
        430(h)(3)(C)(iii) of such Code and in subclause (II) of section 
        303(h)(3)(C)(iii) of such Act.
    (b) Effective Date.--This section shall apply to plan years 
beginning after December 31, 2015.

SEC. 504. EXTENSION OF CURRENT FUNDING STABILIZATION PERCENTAGES TO 
              2018, 2019, AND 2020.

    (a) Funding Stabilization Under the Internal Revenue Code of 
1986.--The table in subclause (II) of section 430(h)(2)(C)(iv) of the 
Internal Revenue Code of 1986 is amended to read as follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017,     90%..........................  110%
 2018, 2019, or 2020.
2021..................................  85%..........................  115%
2022..................................  80%..........................  120%
2023..................................  75%..........................  125%
After 2023............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

    (b) Funding Stabilization Under Employee Retirement Income Security 
Act of 1974.--
            (1) In general.--The table in subclause (II) of section 
        303(h)(2)(C)(iv) of the Employee Retirement Income Security Act 
        of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)) is amended to read as 
        follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017,     90%..........................  110%
 2018, 2019, or 2020.
2021..................................  85%..........................  115%
2022..................................  80%..........................  120%
2023..................................  75%..........................  125%
After 2023............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

            (2) Conforming amendments.--
                    (A) In general.--Section 101(f)(2)(D) of such Act 
                (29 U.S.C. 1021(f)(2)(D)) is amended--
                            (i) in clause (i) by striking ``and the 
                        Highway and Transportation Funding Act of 
                        2014'' both places it appears and inserting ``, 
                        the Highway and Transportation Funding Act of 
                        2014, and the Bipartisan Budget Act of 2015''; 
                        and
                            (ii) in clause (ii) by striking ``2020'' 
                        and inserting ``2023''.
                    (B) Statements.--The Secretary of Labor shall 
                modify the statements required under subclauses (I) and 
                (II) of section 101(f)(2)(D)(i) of such Act to conform 
                to the amendments made by this section.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to plan years beginning after December 31, 2015.

                         TITLE VI--HEALTH CARE

SEC. 601. MAINTAINING 2016 MEDICARE PART B PREMIUM AND DEDUCTIBLE 
              LEVELS CONSISTENT WITH ACTUARIALLY FAIR RATES.

    (a) 2016 Premium and Deductible and Repayment Through Future 
Premiums.--Section 1839(a) of the Social Security Act (42 U.S.C. 
1395r(a)) is amended--
            (1) in the second sentence of paragraph (1), by striking 
        ``Such'' and inserting ``Subject to paragraphs (5) and (6), 
        such''; and
            (2) by adding at the end the following:
    ``(5)(A) In applying this part (including subsection (i) and 
section 1833(b)), the monthly actuarial rate for enrollees age 65 and 
over for 2016 shall be determined as if subsection (f) did not apply.
    ``(B) Subsection (f) shall continue to be applied to paragraph 
(6)(A) (during a repayment month, as described in paragraph (6)(B)) and 
without regard to the application of subparagraph (A).
    ``(6)(A) With respect to a repayment month (as described in 
subparagraph (B)), the monthly premium otherwise established under 
paragraph (3) shall be increased by, subject to subparagraph (D), $3.
    ``(B) For purposes of this paragraph, a repayment month is a month 
during a year, beginning with 2016, for which a balance due amount is 
computed under subparagraph (C) as greater than zero.
    ``(C) For purposes of this paragraph, the balance due amount 
computed under this subparagraph, with respect to a month, is the 
amount estimated by the Chief Actuary of the Centers for Medicare & 
Medicaid Services to be equal to--
            ``(i) the amount transferred under section 1844(d)(1); plus
            ``(ii) the amount that is equal to the aggregate reduction, 
        for all individuals enrolled under this part, in the income 
        related monthly adjustment amount as a result of the 
        application of paragraph (5); minus
            ``(iii) the amounts payable under this part as a result of 
        the application of this paragraph for preceding months.
    ``(D) If the balance due amount computed under subparagraph (C), 
without regard to this subparagraph, for December of a year would be 
less than zero, the Chief Actuary of the Centers for Medicare & 
Medicaid Services shall estimate, and the Secretary shall apply, a 
reduction to the dollar amount increase applied under subparagraph (A) 
for each month during such year in a manner such that the balance due 
amount for January of the subsequent year is equal to zero.''.
    (b) Transitional Government Contribution.--Section 1844 of the 
Social Security Act (42 U.S.C. 1395w) is amended--
            (1) in subsection (a), by adding at the end the following:
``In applying paragraph (1), the amounts transferred under subsection 
(d)(1) with respect to enrollees described in subparagraphs (A) and (B) 
of such subsection shall be treated as premiums payable and deposited 
in the Trust Fund under subparagraphs (A) and (B), respectively, of 
paragraph (1).''; and
            (2) by adding at the end the following:
    ``(d)(1) For 2016, there shall be transferred from the General Fund 
to the Trust Fund an amount, as estimated by the Chief Actuary of the 
Centers for Medicare & Medicaid Services, equal to the reduction in 
aggregate premiums payable under this part for a month in such year 
(excluding any changes in amounts collected under section 1839(i)) that 
is attributable to the application of section 1839(a)(5)(A) with 
respect to--
    ``(A) enrollees age 65 and over; and
    ``(B) enrollees under age 65.
Such amounts shall be transferred from time to time as appropriate.
    ``(2) Premium increases affected under section 1839(a)(6) shall not 
be taken into account in applying subsection (a).
    ``(3) There shall be transferred from the Trust Fund to the General 
Fund of the Treasury amounts equivalent to the additional premiums 
payable as a result of the application of section 1839(a)(6), excluding 
the aggregate payments attributable to the application of section 
1839(i)(3)(A)(ii)(II).''.
    (c) Conforming Application of High Income Adjustments to Increased 
Monthly Premium in Same Manner as for Regular Medicare Premiums.--
Section 1839(i)(3)(A)(ii) of the Social Security Act (42 U.S.C. 
1395r(i)(3)(A)(ii)) is amended--
            (1) by striking ``amount.--200 percent'' and inserting the 
        following: ``amount.--
                            ``(I) 200 percent''; and
            (2) by striking the period at the end and inserting ``; 
        plus''; and
            (3) by adding at the end the following new subclause:
                                    ``(II) 4 times the amount of the 
                                increase in the monthly premium under 
                                subsection (a)(6) for a month in the 
                                year.''.
    (d) Conditional Application to 2017 if No Social Security COLA for 
2017.--If there is no increase in the monthly insurance benefits 
payable under title II with respect to December 2016 pursuant to 
section 215(i), then the amendments made by this section shall be 
applied as if--
            (1) the reference to ``2016'' in paragraph (5)(A) of 
        section 1839(a) of the Social Security Act (42 U.S.C. 
        1395r(a)), as added by subsection (a)(2), was a reference to 
        ``2016 and 2017'';
            (2) the reference to ``a month during a year, beginning 
        with 2016'' in paragraph (6)(B) of section 1839 of such Act (42 
        U.S.C. 1395r(a)), as added by subsection (a)(2), was a 
        reference to ``a month in a year, beginning with 2016 and 
        beginning with 2017, respectively''; and
            (3) the reference to ``2016'' in subsection (d)(1) of 
        section 1844 of such Act (42 U.S.C. 1395w), as added by 
        subsection (b)(2), was a reference to ``each of 2016 and 
        2017''.
Any increase in premiums effected under this subsection shall be in 
addition to the increase effected by the amendments made by subsection 
(a).
    (e) Construction Regarding No Authority to Initiate Application to 
Years After 2017.--Nothing in subsection (d) or the amendments made by 
this section shall be construed as authorizing the Secretary of Health 
and Human Services to initiate application of such subsection or 
amendments for a year after 2017.

SEC. 602. APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO 
              GENERIC DRUGS.

    (a) In General.--Section 1927(c)(3) of the Social Security Act (42 
U.S.C. 1396r-8(c)(3)) is amended--
            (1) in subparagraph (A), by striking ``The amount'' and 
        inserting ``Except as provided in subparagraph (C), the 
        amount''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Additional rebate.--
                            ``(i) In general.--The amount of the rebate 
                        specified in this paragraph for a rebate 
                        period, with respect to each dosage form and 
                        strength of a covered outpatient drug other 
                        than a single source drug or an innovator 
                        multiple source drug of a manufacturer, shall 
                        be increased in the manner that the rebate for 
                        a dosage form and strength of a single source 
                        drug or an innovator multiple source drug is 
                        increased under subparagraphs (A) and (D) of 
                        paragraph (2), except as provided in clause 
                        (ii).
                            ``(ii) Special rules for application of 
                        provision.--In applying subparagraphs (A) and 
                        (D) of paragraph (2) under clause (i)--
                                    ``(I) the reference in subparagraph 
                                (A)(i) of such paragraph to `1990' 
                                shall be deemed a reference to `2014';
                                    ``(II) subject to clause (iii), the 
                                reference in subparagraph (A)(ii) of 
                                such paragraph to `the calendar quarter 
                                beginning July 1, 1990' shall be deemed 
                                a reference to `the calendar quarter 
                                beginning July 1, 2014'; and
                                    ``(III) subject to clause (iii), 
                                the reference in subparagraph (A)(ii) 
                                of such paragraph to `September 1990' 
                                shall be deemed a reference to 
                                `September 2014';
                                    ``(IV) the references in 
                                subparagraph (D) of such paragraph to 
                                `paragraph (1)(A)(ii)', `this 
                                paragraph', and `December 31, 2009' 
                                shall be deemed references to 
                                `subparagraph (A)', `this 
                                subparagraph', and `December 31, 2014', 
                                respectively; and
                                    ``(V) any reference in such 
                                paragraph to a `single source drug or 
                                an innovator multiple source drug' 
                                shall be deemed to be a reference to a 
                                drug to which clause (i) applies.
                            ``(iii) Special rule for certain 
                        noninnovator multiple source drugs.--In 
                        applying paragraph (2)(A)(ii)(II) under clause 
                        (i) with respect to a covered outpatient drug 
                        that is first marketed as a drug other than a 
                        single source drug or an innovator multiple 
                        source drug after April 1, 2013, such paragraph 
                        shall be applied--
                                    ``(I) by substituting `the 
                                applicable quarter' for `the calendar 
                                quarter beginning July 1, 1990'; and
                                    ``(II) by substituting `the last 
                                month in such applicable quarter' for 
                                `September 1990'.
                            ``(iv) Applicable quarter defined.--In this 
                        subsection, the term `applicable quarter' 
                        means, with respect to a drug described in 
                        clause (iii), the fifth full calendar quarter 
                        after which the drug is marketed as a drug 
                        other than a single source drug or an innovator 
                        multiple source drug.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to rebate periods beginning after the date that is one year after 
the date of the enactment of this Act.

SEC. 603. TREATMENT OF OFF-CAMPUS OUTPATIENT DEPARTMENTS OF A PROVIDER.

    Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) is 
amended--
            (1) in paragraph (1)(B)--
                    (A) in clause (iii), by striking ``but'' at the 
                end;
                    (B) in clause (iv), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(v) does not include applicable items and 
                        services (as defined in subparagraph (A) of 
                        paragraph (21)) that are furnished on or after 
                        January 1, 2017, by an off-campus outpatient 
                        department of a provider (as defined in 
                        subparagraph (B) of such paragraph).''; and
            (2) by adding at the end the following new paragraph:
            ``(21) Services furnished by an off-campus outpatient 
        department of a provider.--
                    ``(A) Applicable items and services.--For purposes 
                of paragraph (1)(B)(v) and this paragraph, the term 
                `applicable items and services' means items and 
                services other than items and services furnished by a 
                dedicated emergency department (as defined in section 
                489.24(b) of title 42 of the Code of Federal 
                Regulations).
                    ``(B) Off-campus outpatient department of a 
                provider.--
                            ``(i) In general.--For purposes of 
                        paragraph (1)(B)(v) and this paragraph, subject 
                        to clause (ii), the term `off-campus outpatient 
                        department of a provider' means a department of 
                        a provider (as defined in section 413.65(a)(2) 
                        of title 42 of the Code of Federal Regulations, 
                        as in effect as of the date of the enactment of 
                        this paragraph) that is not located--
                                    ``(I) on the campus (as defined in 
                                such section 413.65(a)(2)) of such 
                                provider; or
                                    ``(II) within the distance 
                                (described in such definition of 
                                campus) from a remote location of a 
                                hospital facility (as defined in such 
                                section 413.65(a)(2)).
                            ``(ii) Exception.--For purposes of 
                        paragraph (1)(B)(v) and this paragraph, the 
                        term `off-campus outpatient department of a 
                        provider' shall not include a department of a 
                        provider (as so defined) that was billing under 
                        this subsection with respect to covered OPD 
                        services furnished prior to the date of the 
                        enactment of this paragraph.
                    ``(C) Availability of payment under other payment 
                systems.--Payments for applicable items and services 
                furnished by an off-campus outpatient department of a 
                provider that are described in paragraph (1)(B)(v) 
                shall be made under the applicable payment system under 
                this part (other than under this subsection) if the 
                requirements for such payment are otherwise met.
                    ``(D) Information needed for implementation.--Each 
                hospital shall provide to the Secretary such 
                information as the Secretary determines appropriate to 
                implement this paragraph and paragraph (1)(B)(v) (which 
                may include reporting of information on a hospital 
                claim using a code or modifier and reporting 
                information about off-campus outpatient departments of 
                a provider on the enrollment form described in section 
                1866(j)).
                    ``(E) Limitations.--There shall be no 
                administrative or judicial review under section 1869, 
                section 1878, or otherwise of the following:
                            ``(i) The determination of the applicable 
                        items and services under subparagraph (A) and 
                        applicable payment systems under subparagraph 
                        (C).
                            ``(ii) The determination of whether a 
                        department of a provider meets the term 
                        described in subparagraph (B).
                            ``(iii) Any information that hospitals are 
                        required to report pursuant to subparagraph 
                        (D).''.

SEC. 604. REPEAL OF AUTOMATIC ENROLLMENT REQUIREMENT.

    The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) is 
amended by repealing section 18A (as added by section 1511 of the 
Patient Protection and Affordable Care Act (Public Law 111-148)).

                          TITLE VII--JUDICIARY

SEC. 701. CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS.

    (a) Short Title.--This section may be cited as the ``Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015''.
    (b) Amendments.--The Federal Civil Penalties Inflation Adjustment 
Act of 1990 (28 U.S.C. 2461 note) is amended--
            (1) in section 4--
                    (A) by striking the matter preceding paragraph (1) 
                and inserting the following:
    ``(a) In General.--Not later than July 1, 2016, and not later than 
January 15 of every year thereafter, and subject to subsections (c) and 
(d), the head of each agency 
shall--'';
                    (B) in paragraph (1)--
                            (i) by striking ``by regulation adjust'' 
                        and inserting ``in accordance with subsection 
                        (b), adjust''; and
                            (ii) by striking ``, the Tariff Act of 
                        1930, the Occupational Safety and Health Act of 
                        1970, or the Social Security Act'' and 
                        inserting `` or the Tariff Act of 1930'';
                    (C) in paragraph (2), by striking ``such 
                regulation'' and inserting ``such adjustment''; and
                    (D) by adding at the end the following:
    ``(b) Procedures for Adjustments.--
            ``(1) Catch up adjustment.--For the first adjustment made 
        under subsection (a) after the date of enactment of the Federal 
        Civil Penalties Inflation Adjustment Act Improvements Act of 
        2015--
                    ``(A) the head of an agency shall adjust civil 
                monetary penalties through an interim final rulemaking; 
                and
                    ``(B) the adjustment shall take effect not later 
                than August 1, 2016.
            ``(2) Subsequent adjustments.--For the second adjustment 
        made under subsection (a) after the date of enactment of the 
        Federal Civil Penalties Inflation Adjustment Act Improvements 
        Act of 2015, and each adjustment thereafter, the head of an 
        agency shall adjust civil monetary penalties and shall make the 
        adjustment notwithstanding section 553 of title 5, United 
        States Code.
    ``(c) Exception.--For the first adjustment made under subsection 
(a) after the date of enactment of the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, the head of an 
agency may adjust the amount of a civil monetary penalty by less than 
the otherwise required amount if--
            ``(1) the head of the agency, after publishing a notice of 
        proposed rulemaking and providing an opportunity for comment, 
        determines in a final rule that--
                    ``(A) increasing the civil monetary penalty by the 
                otherwise required amount will have a negative economic 
                impact; or
                    ``(B) the social costs of increasing the civil 
                monetary penalty by the otherwise required amount 
                outweigh the benefits; and
            ``(2) the Director of the Office of Management and Budget 
        concurs with the determination of the head of the agency under 
        paragraph (1).
    ``(d) Other Adjustments Made.--If a civil monetary penalty subject 
to a cost-of-living adjustment under this Act is, during the 12 months 
preceding a required cost-of-living adjustment, increased by an amount 
greater than the amount of the adjustment required under subsection 
(a), the head of the agency is not required to make the cost-of-living 
adjustment for that civil monetary penalty in that year.'';
            (2) in section 5--
                    (A) in subsection (a), by striking ``to the 
                nearest--'' and all that follows through the end of 
                subsection (a) and inserting ``to the nearest multiple 
                of $1.''; and
                    (B) by amending subsection (b) to read as follows:
    ``(b) Definition.--
            ``(1) In general.--Except as provided in paragraph (2), for 
        purposes of subsection (a), the term `cost-of-living 
        adjustment' means the percentage (if any) for each civil 
        monetary penalty by which--
                    ``(A) the Consumer Price Index for the month of 
                October preceding the date of the adjustment, exceeds
                    ``(B) the Consumer Price Index for the month of 
                October 1 year before the month of October referred to 
                in subparagraph (A).
            ``(2) Initial adjustment.--
                    ``(A) In general.--Subject to subparagraph (C), for 
                the first inflation adjustment under section 4 made by 
                an agency after the date of enactment of the Federal 
                Civil Penalties Inflation Adjustment Act Improvements 
                Act of 2015, the term `cost-of-living adjustment' means 
                the percentage (if any) for each civil monetary penalty 
                by which the Consumer Price Index for the month of 
                October, 2015 exceeds the Consumer Price Index for the 
                month of October of the calendar year during which the 
                amount of such civil monetary penalty was established 
                or adjusted under a provision of law other than this 
                Act.
                    ``(B) Application of adjustment.--The cost-of-
                living adjustment described in subparagraph (A) shall 
                be applied to the amount of the civil monetary penalty 
                as it was most recently established or adjusted under a 
                provision of law other than this Act.
                    ``(C) Maximum adjustment.--The amount of the 
                increase in a civil monetary penalty under subparagraph 
                (A) shall not exceed 150 percent of the amount of that 
                civil monetary penalty on the date of enactment of the 
                Federal Civil Penalties Inflation Adjustment Act 
                Improvements Act of 2015.'';
            (3) in section 6, by striking ``violations which occur'' 
        and inserting ``civil monetary penalties, including those whose 
        associated violation predated such increase, which are 
        assessed''; and
            (4) by adding at the end the following:

``SEC. 7. IMPLEMENTATION AND OVERSIGHT ENHANCEMENTS.

    ``(a) OMB Guidance.--Not later than February 29, 2016, not later 
than December 15, 2016, and December 15 of every year thereafter, the 
Director of the Office of Management and Budget shall issue guidance to 
agencies on implementing the inflation adjustments required under this 
Act.
    ``(b) Agency Financial Reports.--The head of each agency shall 
include in the Agency Financial Report submitted under OMB Circular A-
136, or any successor thereto, information about the civil monetary 
penalties within the jurisdiction of the agency, including the 
adjustment of the civil monetary penalties by the head of the agency 
under this Act.
    ``(c) GAO Review.--The Comptroller General of the United States 
shall annually submit to Congress a report assessing the compliance of 
agencies with the inflation adjustments required under this Act, which 
may be included as part of another report submitted to Congress.''.
    (c) Repeal.--Section 31001(s) of the Debt Collection Improvement 
Act of 1996 (28 U.S.C. 2461 note) is amended by striking paragraph (2).

SEC. 702. CRIME VICTIMS FUND.

    There is hereby rescinded and permanently canceled $1,500,000,000 
of the funds deposited or available in the Crime Victims Fund created 
by section 1402 of the Victims of Crime Act of 1984 (42 U.S.C. 10601).

SEC. 703. ASSETS FORFEITURE FUND.

    Of the amounts deposited in the Department of Justice Assets 
Forfeiture Fund, $746,000,000 are hereby rescinded and permanently 
cancelled.

                      TITLE VIII--SOCIAL SECURITY

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Social Security Benefit Protection 
and Opportunity Enhancement Act of 2015''.

        Subtitle A--Ensuring Correct Payments and Reducing Fraud

SEC. 811. EXPANSION OF COOPERATIVE DISABILITY INVESTIGATIONS UNITS.

    (a) In General.--Not later than October 1, 2022, the Commissioner 
of Social Security shall take any necessary actions, subject to the 
availability of appropriations, to ensure that cooperative disability 
investigations units have been established, in areas where there is 
cooperation with local law enforcement agencies, that would cover each 
of the 50 States, the District of Columbia, Puerto Rico, Guam, the 
Northern Mariana Islands, the Virgin Islands, and American Samoa.
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act and annually thereafter until the earlier of 2022 or the 
date on which nationwide coverage is achieved, the Commissioner of 
Social Security shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the Senate a 
report describing a plan to implement the nationwide coverage described 
in subsection (a) and outlining areas where the Social Security 
Administration did not receive the cooperation of local law enforcement 
agencies.

SEC. 812. EXCLUSION OF CERTAIN MEDICAL SOURCES OF EVIDENCE.

    (a) In General.--Section 223(d)(5) of the Social Security Act (42 
U.S.C. 423(d)(5)) is amended by adding at the end the following:
                    ``(C)(i) In making any determination with respect 
                to whether an individual is under a disability or 
                continues to be under a disability, the Commissioner of 
                Social Security may not consider (except for good cause 
                as determined by the Commissioner) any evidence 
                furnished by--
                            ``(I) any individual or entity who has been 
                        convicted of a felony under section 208 or 
                        under section 1632;
                            ``(II) any individual or entity who has 
                        been excluded from participation in any Federal 
                        health care program under section 1128; or
                            ``(III) any person with respect to whom a 
                        civil money penalty or assessment has been 
                        imposed under section 1129 for the submission 
                        of false evidence.
                    ``(ii) To the extent and at such times as is 
                necessary for the effective implementation of clause 
                (i) of this subparagraph--
                            ``(I) the Inspector General of the Social 
                        Security Administration shall transmit to the 
                        Commissioner information relating to persons 
                        described in subclause (I) or (III) of clause 
                        (i);
                            ``(II) the Secretary of Health and Human 
                        Services shall transmit to the Commissioner 
                        information relating to persons described in 
                        subclause (II) of clause (i); and''.
    (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Commissioner of Social Security shall issue 
regulations to carry out the amendment made by subsection (a).
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to determinations of disability made on or after the 
earlier of--
            (1) the effective date of the regulations issued by the 
        Commissioner under subsection (b); or
            (2) one year after the date of the enactment of this Act.

SEC. 813. NEW AND STRONGER PENALTIES.

    (a) Conspiracy to Commit Social Security Fraud.--
            (1) Amendment to title ii.--Section 208(a) of the Social 
        Security Act (42 U.S.C. 408(a)) is amended--
                    (A) in paragraph (7)(C), by striking ``or'' at the 
                end;
                    (B) in paragraph (8), by adding ``or'' at the end; 
                and
                    (C) by inserting after paragraph (8) the following:
            ``(9) conspires to commit any offense described in any of 
        paragraphs (1) through (4),''.
            (2) Amendment to title viii.--Section 811(a) of such Act 
        (42 U.S.C. 1011(a)) is amended--
                    (A) in paragraph (3), by striking ``or'' at the 
                end;
                    (B) in paragraph (4), by striking the comma and 
                adding ``; or'' at the end; and
                    (C) by inserting after paragraph (4) the following:
            ``(5) conspires to commit any offense described in any of 
        paragraphs (1) through (3),''.
            (3) Amendment to title xvi.--Section 1632(a) of such Act 
        (42 U.S.C. 1383a(a)) is amended--
                    (A) in paragraph (3), by striking ``or'' at the 
                end;
                    (B) in paragraph (4), by adding ``or'' at the end; 
                and
                    (C) by inserting after paragraph (4) the following:
            ``(5) conspires to commit any offense described in any of 
        paragraphs (1) through (3),''.
    (b) Increased Criminal Penalties for Certain Individuals Violating 
Positions of Trust.--
            (1) Amendment to title ii.--Section 208(a) of the Social 
        Security Act (42 U.S.C. 408(a)), as amended by subsection (a), 
        is further amended by striking the period at the end and 
        inserting ``, except that in the case of a person who receives 
        a fee or other income for services performed in connection with 
        any determination with respect to benefits under this title 
        (including a claimant representative, translator, or current or 
        former employee of the Social Security Administration), or who 
        is a physician or other health care provider who submits, or 
        causes the submission of, medical or other evidence in 
        connection with any such determination, such person shall be 
        guilty of a felony and upon conviction thereof shall be fined 
        under title 18, United States Code, or imprisoned for not more 
        than ten years, or both.''.
            (2) Amendment to title viii.--Section 811(a) of such Act 
        (42 U.S.C. 1011(a)), as amended by subsection (a), is further 
        amended by striking the period at the end and inserting ``, 
        except that in the case of a person who receives a fee or other 
        income for services performed in connection with any 
        determination with respect to benefits under this title 
        (including a claimant representative, translator, or current or 
        former employee of the Social Security Administration), or who 
        is a physician or other health care provider who submits, or 
        causes the submission of, medical or other evidence in 
        connection with any such determination, such person shall be 
        guilty of a felony and upon conviction thereof shall be fined 
        under title 18, United States Code, or imprisoned for not more 
        than ten years, or both.''.
            (3) Amendment to title xvi.--Section 1632(a) of such Act 
        (42 U.S.C. 1383a(a)), as amended by subsection (a), is further 
        amended by striking the period at the end and inserting ``, 
        except that in the case of a person who receives a fee or other 
        income for services performed in connection with any 
        determination with respect to benefits under this title 
        (including a claimant representative, translator, or current or 
        former employee of the Social Security Administration), or who 
        is a physician or other health care provider who submits, or 
        causes the submission of, medical or other evidence in 
        connection with any such determination, such person shall be 
        guilty of a felony and upon conviction thereof shall be fined 
        under title 18, United States Code, or imprisoned for not more 
        than ten years, or both.''.
    (c) Increased Civil Monetary Penalties for Certain Individuals 
Violating Positions of Trust.--Section 1129(a)(1) of the Social 
Security Act (42 U.S.C. 1320a-8(a)(1)) is amended, in the matter 
following subparagraph (C), by inserting after ``withholding disclosure 
of such fact'' the following: ``, except that in the case of such a 
person who receives a fee or other income for services performed in 
connection with any such determination (including a claimant 
representative, translator, or current or former employee of the Social 
Security Administration) or who is a physician or other health care 
provider who submits, or causes the submission of, medical or other 
evidence in connection with any such determination, the amount of such 
penalty shall be not more than $7,500''.
    (d) No Benefits Payable to Individuals for Whom a Civil Monetary 
Penalty Is Imposed for Fraudulently Concealing Work Activity.--Section 
222(c)(5) of the Social Security Act (42 U.S.C. 422(c)(5)) is amended 
by inserting after ``conviction by a Federal court'' the following: ``, 
or the imposition of a civil monetary penalty under section 1129,''.

SEC. 814. REFERENCES TO SOCIAL SECURITY AND MEDICARE IN ELECTRONIC 
              COMMUNICATIONS.

    (a) In General.--Section 1140(a)(1) of the Social Security Act (42 
U.S.C. 1320b-10(a)(1)) is amended by inserting ``(including any 
Internet or other electronic communication)'' after ``or other 
communication''.
    (b) Each Communication Treated as Separate Violation.--Section 
1140(b) of such Act (42 U.S.C. 1320b-10(b)) is amended by inserting 
after the second sentence the following: ``In the case of any items 
referred to in subsection (a)(1) consisting of Internet or other 
electronic communications, each dissemination, viewing, or accessing of 
such a communication which contains one or more words, letters, 
symbols, or emblems in violation of subsection (a) shall represent a 
separate violation''.

SEC. 815. CHANGE TO CAP ADJUSTMENT AUTHORITY.

    Section 251(b)(2)(B) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 901(b)(2)(B)) is amended--
            (1) in clause (i)--
                    (A) in the matter before subclause (I), by striking 
                ``and for the cost associated with conducting 
                redeterminations of eligibility under title XVI of the 
                Social Security Act'' and inserting ``, for the cost 
                associated with conducting redeterminations of 
                eligibility under title XVI of the Social Security Act, 
                for the cost of co-operative disability investigation 
                units, and for the cost associated with the prosecution 
                of fraud in the programs and operations of the Social 
                Security Administration by Special Assistant United 
                States Attorneys'';
                    (B) in subclause (VI), by striking 
                ``$1,309,000,000'' and inserting ``$1,546,000,000'';
                    (C) in subclause (VII), by striking 
                ``$1,309,000,000'' and inserting ``$1,462,000,000'';
                    (D) in subclause (VIII), by striking 
                ``$1,309,000,000'' and inserting ``$1,410,000,000''; 
                and
                    (E) in subclause (X), by striking 
                ``$1,309,000,000'' and inserting ``$1,302,000,000'';
            (2) in clause (ii)(I), by inserting ``, including work-
        related continuing disability reviews to determine whether 
        earnings derived from services demonstrate an individual's 
        ability to engage in substantial gainful activity'' before the 
        semicolon; and
            (3) in clause (ii)(III), by striking ``and 
        redeterminations'' and inserting ``, redeterminations, co-
        operative disability investigation units, and fraud 
        prosecutions''.

     Subtitle B--Promoting Opportunity for Disability Beneficiaries

SEC. 821. TEMPORARY REAUTHORIZATION OF DISABILITY INSURANCE 
              DEMONSTRATION PROJECT AUTHORITY.

    (a) Termination Date.--Section 234(d)(2) of the Social Security Act 
(42 U.S.C. 434(d)(2)) is amended by striking ``December 18, 2005'' and 
inserting ``December 31, 2021, and the authority to carry out such 
projects shall terminate on December 31, 2022''.
    (b) Authority to Waive Compliance With Benefits Requirements.--
Section 234(c) of such Act is amended by striking ``December 17, 2005'' 
and inserting ``December 30, 2021''.

SEC. 822. MODIFICATION OF DEMONSTRATION PROJECT AUTHORITY.

    (a) In General.--Section 234(a)(1) of the Social Security Act (42 
U.S.C. 434(a)(1)) is amended in the matter preceding subparagraph (A) 
by inserting ``to promote attachment to the labor force and'' after 
``designed''.
    (b) Congressional Review Period.--Section 234(c) of the Social 
Security Act (42 U.S.C. 434(c)), as amended by section 821(b) of this 
Act, is further amended by inserting ``including the objectives of the 
experiment or demonstration project, the expected annual and total 
costs, and the dates on which the experiment or demonstration project 
is expected to start and finish,'' after ``thereof,''
    (c) Additional Requirements.--Section 234 of the Social Security 
Act (42 U.S.C. 434), as amended by subsection (b), is further amended 
by adding at the end the following:
    ``(e) Additional Requirements.--In developing and carrying out any 
experiment or demonstration project under this section, the 
Commissioner may not require any individual to participate in such 
experiment or demonstration project and shall ensure--
            ``(1) that the voluntary participation of individuals in 
        such experiment or demonstration project is obtained through 
        informed written consent which satisfies the requirements for 
        informed consent established by the Commissioner for use in 
        such experiment or demonstration project in which human 
        subjects are at risk;
            ``(2) that any individual's voluntary agreement to 
        participate in any such experiment or demonstration project may 
        be revoked by such individual at any time; and
            ``(3) that such experiment or demonstration project is 
        expected to yield statistically significant results.''.
    (d) Annual Reporting Deadline.--Section 234(d)(1) of such Act is 
amended by striking ``June 9'' and inserting ``September 30''.

SEC. 823. PROMOTING OPPORTUNITY DEMONSTRATION PROJECT.

    Section 234 of the Social Security Act (42 U.S.C. 434), as amended 
by section 822 of this Act, is further amended by adding at the end the 
following:
    ``(f) Promoting Opportunity Demonstration Project.--
            ``(1) In general.--The Commissioner shall carry out a 
        demonstration project under this subsection as described in 
        paragraph (2) during a 5-year period beginning not later than 
        January 1, 2017.
            ``(2) Benefit offset.--Under the demonstration project 
        described in this paragraph, with respect to any individual 
        participating in the project who is otherwise entitled to a 
        benefit under section 223(a)(1) for a month--
                    ``(A) any such benefit otherwise payable to the 
                individual for such month (other than a benefit payable 
                for any month prior to the 1st month beginning after 
                the date on which the individual's entitlement to such 
                benefit is determined) shall be reduced by $1 for each 
                $2 by which the individual's earnings derived from 
                services paid during such month exceeds an amount equal 
                to the individual's impairment-related work expenses 
                for such month (as determined under paragraph (3)), 
                except that such benefit may not be reduced below $0;
                    ``(B) no benefit shall be payable under section 202 
                on the basis of the wages and self-employment income of 
                the individual for any month for which the benefit of 
                such individual under section 223(a)(1) is reduced to 
                $0 pursuant to subparagraph (A);
                    ``(C) entitlement to any benefit described in 
                subparagraph (A) or (B) shall not terminate due to 
                earnings derived from services except following the 
                first month for which such benefit has been reduced to 
                $0 pursuant to subparagraph (A) (and the trial work 
                period (as defined in section 222(c)) and extended 
                period of eligibility shall not apply to any such 
                individual for any such month); and
                    ``(D) in any case in which such an individual is 
                entitled to hospital insurance benefits under part A of 
                title XVIII by reason of section 226(b) and such 
                individual's entitlement to a benefit described in 
                subparagraph (A) or (B) or status as a qualified 
                railroad retirement beneficiary is terminated pursuant 
                to subparagraph (C), such individual shall be deemed to 
                be entitled to such benefits or to occupy such status 
                (notwithstanding the termination of such entitlement or 
                status) for the period of consecutive months throughout 
                all of which the physical or mental impairment, on 
                which such entitlement or status was based, continues, 
                and throughout all of which such individual would have 
                been entitled to monthly insurance benefits under title 
                II or as a qualified railroad retirement beneficiary 
                had such termination of entitlement or status not 
                occurred, but not in excess of 93 such months.
            ``(3) Impairment-related work expenses.--
                    ``(A) In general.--For purposes of paragraph (2)(A) 
                and except as provided in subparagraph (C), the amount 
                of an individual's impairment-related work expenses for 
                a month is deemed to be the minimum threshold amount.
                    ``(B) Minimum threshold amount.--In this paragraph, 
                the term `minimum threshold amount' means an amount, to 
                be determined by the Commissioner, which shall not 
                exceed the amount sufficient to demonstrate that an 
                individual has rendered services in a month, as 
                determined by the Commissioner under section 
                222(c)(4)(A). The Commissioner may test multiple 
                minimum threshold amounts.
                    ``(C) Exception for itemized impairment-related 
                work expenses.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), in any case in which the 
                        amount of such an individual's itemized 
                        impairment-related work expenses (as defined in 
                        clause (ii)) for a month is greater than the 
                        minimum threshold amount, the amount of the 
                        individual's impairment-related work expenses 
                        for the month shall be equal to the amount of 
                        the individual's itemized impairment-related 
                        work expenses (as so defined) for the month.
                            ``(ii) Definition.--In this subparagraph, 
                        the term `itemized impairment-related work 
                        expenses' means the amount excluded under 
                        section 223(d)(4)(A) from an individual's 
                        earnings for a month in determining whether an 
                        individual is able to engage in substantial 
                        gainful activity by reason of such earnings in 
                        such month, except that such amount does not 
                        include the cost to the individual of any item 
                        or service for which the individual does not 
                        provide to the Commissioner a satisfactory 
                        itemized accounting.
                    ``(D) Limitation.--Notwithstanding the other 
                provisions of this paragraph, for purposes of paragraph 
                (2)(A), the amount of an individual's impairment-
                related work expenses for a month shall not exceed the 
                amount of earnings derived from services, prescribed by 
                the Commissioner under regulations issued pursuant to 
                section 223(d)(4)(A), sufficient to demonstrate an 
                individual's ability to engage in substantial gainful 
                activity.''.

SEC. 824. USE OF ELECTRONIC PAYROLL DATA TO IMPROVE PROGRAM 
              ADMINISTRATION.

    (a) In General.--Title XI of the Social Security Act (42 U.S.C. 
1301 et seq.) is amended by inserting after section 1183 the following: 
``

           ``information exchange with payroll data providers

    ``Sec. 1184.  (a) In General.--The Commissioner of Social Security 
may enter into an information exchange with a payroll data provider for 
purposes of--
            ``(1) efficiently administering--
                    ``(A) monthly insurance benefits under subsections 
                (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), 
                and (f)(1)(B)(ii) of section 202 and subsection (a)(1) 
                of section 223; and
                    ``(B) supplemental security income benefits under 
                title XVI; and
            ``(2) preventing improper payments of such benefits without 
        the need for verification by independent or collateral sources.
    ``(b) Notification Requirements.--Before entering into an 
information exchange pursuant to subsection (a), the Commissioner shall 
publish in the Federal Register a notice describing the information 
exchange and the extent to which the information received through such 
exchange is--
            ``(1) relevant and necessary to--
                    ``(A) accurately determine entitlement to, and the 
                amount of, benefits described under subparagraph (A) of 
                subsection (a)(1);
                    ``(B) accurately determine eligibility for, and the 
                amount of, benefits described in subparagraph (B) of 
                such subsection; and
                    ``(C) prevent improper payment of such benefits; 
                and
            ``(2) sufficiently accurate, up-to-date, and complete.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Payroll data provider.--The term `payroll data 
        provider' means payroll providers, wage verification companies, 
        and other commercial or non-commercial entities that collect 
        and maintain data regarding employment and wages, without 
        regard to whether the entity provides such data for a fee or 
        without cost.
            ``(2) Information exchange.--The term `information 
        exchange' means the automated comparison of a system of records 
        maintained by the commissioner of Social Security with records 
        maintained by a payroll data provider.''.
    (b) Authorization to Access Information Held by Payroll Data 
Providers.--
            (1) Amendment to title ii.--Section 225 of the Social 
        Security Act (42 U.S.C. 425) is amended by adding at the end 
        the following:
    ``(c) Access to Information Held by Payroll Data Providers.--(1) 
The Commissioner of Social Security may require each individual who 
applies for or is entitled to monthly insurance benefits under 
subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and 
(f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 223 to 
provide authorization by the individual for the Commissioner to obtain 
from any payroll data provider (as defined in section 1184(c)(1)) any 
record held by the payroll data provider with respect to the individual 
whenever the Commissioner determines the record is needed in connection 
with a determination of initial or ongoing entitlement to such 
benefits.
    ``(2) An authorization provided by an individual under this 
subsection shall remain effective until the earliest of--
            ``(A) the rendering of a final adverse decision on the 
        individual's application or entitlement to benefits under this 
        title;
            ``(B) the termination of the individual's entitlement to 
        benefits under this title; or
            ``(C) the express revocation by the individual of the 
        authorization, in a written notification to the Commissioner.
    ``(3) The Commissioner of Social Security is not required to 
furnish any authorization obtained pursuant to this subsection to the 
payroll data provider.
    ``(4) The Commissioner shall inform any person who provides 
authorization pursuant to this clause of the duration and scope of the 
authorization.
    ``(5) If an individual who applies for or is entitled to benefits 
under this title refuses to provide, or revokes, any authorization 
under this subsection, subsection (d) shall not apply to such 
individual beginning with the first day of the first month in which he 
or she refuses or revokes such authorization.''.
            (2) Title xvi.--Section 1631(e)(1)(B) of the Social 
        Security Act (42 U.S.C. 1383(e)(1)(B)) is amended by adding at 
        the end the following:
    ``(iii)(I) The Commissioner of Social Security may require each 
applicant for, or recipient of, benefits under this title to provide 
authorization by the applicant, recipient or legal guardian (or by any 
other person whose income or resources are material to the 
determination of the eligibility of the applicant or recipient for such 
benefits) for the Commissioner to obtain from any payroll data provider 
(as defined in section 1184(c)(1)) any record held by the payroll data 
provider with respect to the applicant or recipient (or any such other 
person) whenever the Commissioner determines the record is needed in 
connection with a determination of initial or ongoing eligibility or 
the amount of such benefits.
    ``(II) An authorization provided by an applicant, recipient or 
legal guardian (or any other person whose income or resources are 
material to the determination of the eligibility of the applicant or 
recipient) under this clause shall remain effective until the earliest 
of--
            ``(aa) the rendering of a final adverse decision on the 
        applicant's application for eligibility for benefits under this 
        title;
            ``(bb) the cessation of the recipient's eligibility for 
        benefits under this title;
            ``(cc) the express revocation by the applicant, or 
        recipient (or such other person referred to in subclause (I)) 
        of the authorization, in a written notification to the 
        Commissioner; or
            ``(dd) the termination of the basis upon which the 
        Commissioner considers another person's income and resources 
        available to the applicant or recipient.
    ``(III) The Commissioner of Social Security is not required to 
furnish any authorization obtained pursuant to this clause to the 
payroll data provider.
    ``(IV) The Commissioner shall inform any person who provides 
authorization pursuant to this clause of the duration and scope of the 
authorization.
    ``(V) If an applicant for, or recipient of, benefits under this 
title (or any such other person referred to in subclause (I)) refuses 
to provide, or revokes, any authorization required by subclause (I), 
paragraph (2)(B) and paragraph (10) shall not apply to such applicant 
or recipient beginning with the first day of the first month in which 
he or she refuses or revokes such authorization.''.
    (c) Reporting Responsibilities for Beneficiaries Subject to 
Information Exchange With Payroll Data Provider.--
            (1) Amendment to title ii.--Section 225 of the Social 
        Security (42 U.S.C. 425), as amended by subsection (b)(1), is 
        further amended by adding at the end the following:
    ``(d) An individual who has authorized the Commissioner of Social 
Security to obtain records from a payroll data provider under 
subsection (c) shall not be subject to a penalty under section 1129A 
for any omission or error with respect to such individual's wages as 
reported by the payroll data provider.''.
            (2) Amendment to title xvi.--Section 1631(e) of the Social 
        Security Act (42 U.S.C. 1383(e)) is amended--
                    (A) in paragraph (2)--
                            (i) by striking ``In the case of the 
                        failure'' and inserting ``(A) In the case of 
                        the failure'';
                            (ii) by redesignating subparagraphs (A) 
                        through (C) as clauses (i) through (iii), 
                        respectively; and
                            (iii) by adding at the end the following:
    ``(B) For purposes of subparagraph (A), the Commissioner of Social 
Security shall find that good cause exists for the failure of, or delay 
by, an individual in submitting a report of an event or change in 
circumstances relevant to eligibility for or amount of benefits under 
this title in any case where--
            ``(i) the individual (or another person referred to in 
        paragraph (1)(B)(iii)(I)) has provided authorization to the 
        Commissioner to access payroll data records related to the 
        individual; and
            ``(ii) the event or change in circumstance is a change in 
        the individual's employer.''; and
                    (B) by adding at the end the following:
    ``(10) An individual who has authorized the Commissioner of Social 
Security to obtain records from a payroll data provider under paragraph 
(1)(B)(iii) (or on whose behalf another person described in subclause 
(I) of such paragraph has provided such authorization) shall not be 
subject to a penalty under section 1129A for any omission or error with 
respect to such individual's wages as reported by the payroll data 
provider.''.
    (d) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Commissioner of Social Security shall 
prescribe by regulation procedures for implementing the Commissioner's 
access to and use of information held by payroll providers, including--
            (1) guidelines for establishing and maintaining information 
        exchanges with payroll providers, pursuant to section 1184 of 
        the Social Security Act;
            (2) beneficiary authorizations;
            (3) reduced wage reporting responsibilities for individuals 
        who authorize the Commissioner to access information held by 
        payroll data providers through an information exchange; and
            (4) procedures for notifying individuals in writing when 
        they become subject to such reduced wage reporting requirements 
        and when such reduced wage reporting requirements no longer 
        apply to them.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date that is 1 year after the date of the enactment of 
this Act.

SEC. 825. TREATMENT OF EARNINGS DERIVED FROM SERVICES.

    (a) In General.--Section 223(d)(4) of the Social Security Act (42 
U.S.C. 423(d)(4)) is amended by adding at the end the following:
    ``(C)(i) Subject to clause (ii), in determining when earnings 
derived from services demonstrate an individual's ability to engage in 
substantial gainful activity, such earnings shall be presumed to have 
been earned--
            ``(I) in making a determination of initial entitlement on 
        the basis of disability, in the month in which the services 
        were performed from which such earnings were derived; and
            ``(II) in any other case, in the month in which such 
        earnings were paid.
    ``(ii) A presumption made under clause (i) shall not apply to a 
determination described in such clause if--
            ``(I) the Commissioner can reasonably establish, based on 
        evidence readily available at the time of such determination, 
        that the earnings were earned in a different month than when 
        paid; or
            ``(II) in any case in which there is a determination that 
        no benefit is payable due to earnings, after the individual is 
        notified of the presumption made and provided with an 
        opportunity to submit additional information along with an 
        explanation of what additional information is needed, the 
        individual shows to the satisfaction of the Commissioner that 
        such earnings were earned in another month.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect upon the date of the enactment of this Act, or as soon as 
practicable thereafter.

SEC. 826. ELECTRONIC REPORTING OF EARNINGS.

    (a) In General.--Not later than September 30, 2017, the 
Commissioner of Social Security shall establish and implement a system 
that--
            (1) allows an individual entitled to a monthly insurance 
        benefit based on disability under title II of the Social 
        Security Act (or a representative of the individual) to report 
        to the Commissioner the individual's earnings derived from 
        services through electronic means, including by telephone and 
        Internet; and
            (2) automatically issues a receipt to the individual (or 
        representative) after receiving each such report.
    (b) Supplemental Security Income Reporting System as Model.--The 
Commissioner shall model the system established under subsection (a) on 
the electronic wage reporting systems for recipients of supplemental 
security income under title XVI of such Act.

            Subtitle C--Protecting Social Security Benefits

SEC. 831. CLOSURE OF UNINTENDED LOOPHOLES.

    (a) Presumed Filing of Application by Individuals Eligible for Old-
Age Insurance Benefits and for Wife's or Husband's Insurance 
Benefits.--
            (1) In general.--Section 202(r) of the Social Security Act 
        (42 U.S.C. 402(r)) is amended by striking paragraphs (1) and 
        (2) and inserting the following:
            ``(1) If an individual is eligible for a wife's or 
        husband's insurance benefit (except in the case of eligibility 
        pursuant to clause (ii) of subsection (b)(1)(B) or subsection 
        (c)(1)(B), as appropriate), in any month for which the 
        individual is entitled to an old-age insurance benefit, such 
        individual shall be deemed to have filed an application for 
        wife's or husband's insurance benefits for such month.
            ``(2) If an individual is eligible (but for section 
        202(k)(4)) for an old-age insurance benefit in any month for 
        which the individual is entitled to a wife's or husband's 
        insurance benefit (except in the case of entitlement pursuant 
        to clause (ii) of subsection (b)(1)(B) or subsection (c)(1)(B), 
        as appropriate), such individual shall be deemed to have filed 
        an application for old-age insurance benefits--
                    ``(A) for such month, or
                    ``(B) if such individual is also entitled to a 
                disability insurance benefit for such month, in the 
                first subsequent month for which such individual is not 
                entitled to a disability insurance benefit.''.
            (2) Conforming amendment.--Section 202 of the Social 
        Security Act (42 U.S.C. 402) is amended--
                    (A) in subsection (b)(1), by striking subparagraph 
                (B) and inserting the following:
            ``(B)(i) has attained age 62, or
            ``(ii) in the case of a wife, has in her care (individually 
        or jointly with such individual) at the time of filing such 
        application a child entitled to a child's insurance benefit on 
        the basis of the wages and self-employment income of such 
        individual,''; and
                    (B) in subsection (c)(1), by striking subparagraph 
                (B) and inserting the following:
            ``(B)(i) has attained age 62, or
            ``(ii) in the case of a husband, has in his care 
        (individually or jointly with such individual) at the time of 
        filing such application a child entitled to a child's insurance 
        benefit on the basis of the wages and self-employment income of 
        such individual,''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to individuals who attain age 62 in 
        any calendar year after 2015.
    (b) Voluntary Suspension of Benefits.--
            (1) In general.--Section 202 of the Social Security Act (42 
        U.S.C. 402) is amended by adding at the end the following:
    ``(z) Voluntary Suspension.--(1)(A) Except as otherwise provided in 
this subsection, any individual who has attained retirement age (as 
defined in section 216(l)) and is entitled to old-age insurance 
benefits may request that payment of such benefits be suspended--
                    ``(i) beginning with the month following the month 
                in which such request is received by the Commissioner, 
                and
                    ``(ii) ending with the earlier of the month 
                following the month in which a request by the 
                individual for a resumption of such benefits is so 
                received or the month following the month in which the 
                individual attains the age of 70.
    ``(2) An individual may not suspend such benefits under this 
subsection, and any suspension of such benefits under this subsection 
shall end, effective with respect to any month in which the individual 
becomes subject to--
            ``(A) mandatory suspension of such benefits under section 
        202(x);
            ``(B) termination of such benefits under section 202(n);
            ``(C) a penalty under section 1129A imposing nonpayment of 
        such benefits; or
            ``(D) any other withholding, in whole or in part, of such 
        benefits under any other provision of law that authorizes 
        recovery of a debt by withholding such benefits.
    ``(3) In the case of an individual who requests that such benefits 
be suspended under this subsection, for any month during the period in 
which the suspension is in effect--
            ``(A) no retroactive benefits (as defined in subsection 
        (j)(4)(B)(iii)) shall be payable to such individual;
            ``(B) no monthly benefit shall be payable to any other 
        individual on the basis of such individual's wages and self-
        employment income; and
            ``(C) no monthly benefit shall be payable to such 
        individual on the basis of another individual's wages and self-
        employment income.''.
            (2) Conforming amendment.--Section 202(w)(2)(B)(ii) of the 
        Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended by 
        inserting ``under section 202(z)'' after ``request''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to requests for benefit suspension 
        submitted beginning at least 180 days after the date of the 
        enactment of this Act.

SEC. 832. REQUIREMENT FOR MEDICAL REVIEW.

    (a) In General.--Section 221(h) of the Social Security Act (42 
U.S.C. 421(h)) is amended to read as follows:
    ``(h) An initial determination under subsection (a), (c), (g), or 
(i) shall not be made until the Commissioner of Social Security has 
made every reasonable effort to ensure--
            ``(1) in any case where there is evidence which indicates 
        the existence of a mental impairment, that a qualified 
        psychiatrist or psychologist has completed the medical portion 
        of the case review and any applicable residual functional 
        capacity assessment; and
            ``(2) in any case where there is evidence which indicates 
        the existence of a physical impairment, that a qualified 
        physician has completed the medical portion of the case review 
        and any applicable residual functional capacity assessment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to determinations of disability made on or after the 
date that is 1 year after the date of the enactment of this Act.

SEC. 833. REALLOCATION OF PAYROLL TAX REVENUE.

            (1) Wages.--Section 201(b)(1) of the Social Security Act 
        (42 U.S.C. 401(b)(1)) is amended by striking ``and (R) 1.80 per 
        centum of the wages (as so defined) paid after December 31, 
        1999, and so reported'' and inserting ``(R) 1.80 per centum of 
        the wages (as so defined) paid after December 31, 1999, and 
        before January 1, 2016, and so reported, (S) 2.37 per centum of 
        the wages (as so defined) paid after December 31, 2015, and 
        before January 1, 2019, and so reported, and (T) 1.80 per 
        centum of the wages (as so defined) paid after December 31, 
        2018, and so reported,''.
            (2) Self-employment income.--Section 201(b)(2) of such Act 
        (42 U.S.C. 401(b)(2)) is amended by striking ``and (R) 1.80 per 
        centum of the amount of self-employment income (as so defined) 
        so reported for any taxable year beginning after December 31, 
        1999'' and inserting ``(R) 1.80 per centum of the amount of 
        self-employment income (as so defined) so reported for any 
        taxable year beginning after December 31, 1999, and before 
        January 1, 2016, (S) 2.37 per centum of the amount of self-
        employment income (as so defined) so reported for any taxable 
        year beginning after December 31, 2015, and before January 1, 
        2019, and (T) 1.80 per centum of the amount of self-employment 
        income (as so defined) so reported for any taxable year 
        beginning after December 31, 2018''.
            (3) Effective date.--The amendments made by this section 
        shall apply with respect to wages paid after December 31, 2015, 
        and self-employment income for taxable years beginning after 
        such date.

SEC. 834. ACCESS TO FINANCIAL INFORMATION FOR WAIVERS AND ADJUSTMENTS 
              OF RECOVERY.

    (a) Access to Financial Information for Old-age, Survivors, and 
Disability Insurance Waivers.--Section 204(b) of the Social Security 
Act (42 U.S.C. 404(b)) is amended to read as follows:
    ``(b)(1) In any case in which more than the correct amount of 
payment has been made, there shall be no adjustment of payments to, or 
recovery by the United States from, any person who is without fault if 
such adjustment or recovery would defeat the purpose of this title or 
would be against equity and good conscience.
    ``(2) In making for purposes of this subsection any determination 
of whether any individual is without fault, the Commissioner of Social 
Security shall specifically take into account any physical, mental, 
educational, or linguistic limitation such individual may have 
(including any lack of facility with the English language).
    ``(3)(A) In making for purposes of this subsection any 
determination of whether such adjustment or recovery would defeat the 
purpose of this title, the Commissioner of Social Security shall 
require an individual to provide authorization for the Commissioner to 
obtain (subject to the cost reimbursement requirements of section 
1115(a) of the Right to Financial Privacy Act) from any financial 
institution (within the meaning of section 1101(1) of such Act) any 
financial record (within the meaning of section 1101(2) of such Act) 
held by the institution with respect to such individual whenever the 
Commissioner determines the record is needed in connection with a 
determination with respect to such adjustment or recovery.
    ``(B) Notwithstanding section 1104(a)(1) of the Right to Financial 
Privacy Act, an authorization provided by an individual pursuant this 
paragraph shall remain effective until the earlier of--
            ``(i) the rendering of a final decision on whether 
        adjustment or recovery would defeat the purpose of this title; 
        or
            ``(ii) the express revocation by the individual of the 
        authorization, in a written notification to the Commissioner.
    ``(C)(i) An authorization obtained by the Commissioner of Social 
Security pursuant this paragraph shall be considered to meet the 
requirements of the Right to Financial Privacy Act for purposes of 
section 1103(a) of such Act, and need not be furnished to the financial 
institution, notwithstanding section 1104(a) of such Act.
    ``(ii) The certification requirements of section 1103(b) of the 
Right to Financial Privacy Act shall not apply to requests by the 
Commissioner of Social Security pursuant to an authorization provided 
under this paragraph.
    ``(iii) A request by the Commissioner pursuant to an authorization 
provided under this paragraph is deemed to meet the requirements of 
section 1104(a)(3) of the Right to Financial Privacy Act and the flush 
language of section 1102 of such Act.
    ``(D) The Commissioner shall inform any person who provides 
authorization pursuant to this paragraph of the duration and scope of 
the authorization.
    ``(E) If an individual refuses to provide, or revokes, any 
authorization for the Commissioner of Social Security to obtain from 
any financial institution any financial record, the Commissioner may, 
on that basis, determine that adjustment or recovery would not defeat 
the purpose of this title.''.
    (b) Access to Financial Information for Supplemental Security 
Income Waivers.--
            (1) In general.--Section 1631(b)(1)(B) of the Social 
        Security Act (42 U.S.C. 1383(b)(1)(B)) is amended by adding at 
        the end the following: ``In making for purposes of this 
        subparagraph a determination of whether an adjustment or 
        recovery would defeat the purpose of this title, the 
        Commissioner of Social Security shall require an individual to 
        provide authorization for the Commissioner to obtain (subject 
        to the cost reimbursement requirements of section 1115(a) of 
        the Right to Financial Privacy Act) from any financial 
        institution (within the meaning of section 1101(1) of such Act) 
        any financial record (within the meaning of section 1101(2) of 
        such Act) held by the institution with respect to such 
        individual whenever the Commissioner determines that the record 
        is needed in connection with a determination with respect to 
        such adjustment or recovery, under the terms and conditions 
        established under subsection (e)(1)(B).''.
            (2) Conforming amendment.--Section 1631(e)(1)(B)(ii)(V) of 
        such Act (42 U.S.C. 1383(e)(1)(B)(ii)(V)) is amended by 
        inserting ``, determine that adjustment or recovery on account 
        of an overpayment with respect to the applicant or recipient 
        would not defeat the purpose of this title, or both'' before 
        the period at the end.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to determinations made on or after the date that is 
3 months after the date of the enactment of this section.

    Subtitle D--Relieving Administrative Burdens and Miscellaneous 
                               Provisions

SEC. 841. INTERAGENCY COORDINATION TO IMPROVE PROGRAM ADMINISTRATION.

    (a) In General.--Title XI of the Social Security Act (42 U.S.C. 
1301 et seq.) is amended by inserting after section 1127 the following:

      ``interagency coordination to improve program administration

    ``Sec. 1127A.  (a) Coordination Agreement.--Notwithstanding any 
other provision of law, including section 207 of this Act, the 
Commissioner of Social Security (referred to in this section as `the 
Commissioner') and the Director of the Office of Personnel Management 
(referred to in this section as `the Director') shall enter into an 
agreement under which a system is established to carry out the 
following procedure:
            ``(1) The Director shall notify the Commissioner when any 
        individual is determined to be entitled to a monthly disability 
        annuity payment pursuant to subchapter V of chapter 84 of 
        subpart G of part III of title 5, United States Code, and shall 
        certify that such individual has provided the authorization 
        described in subsection (f).
            ``(2) If the Commissioner determines that an individual 
        described in paragraph (1) is also entitled to past-due 
        benefits under section 223, the Commissioner shall notify the 
        Director of such fact.
            ``(3) Not later than 30 days after receiving a notification 
        described in paragraph (2) with respect to an individual, the 
        Director shall provide the Commissioner with the total amount 
        of any disability annuity overpayments made to such individual, 
        as well as any other information (in such form and manner as 
        the Commissioner shall require) that the Commissioner 
        determines is necessary to carry out this section.
            ``(4) If the Director provides the Commissioner with the 
        information described in paragraph (3) in a timely manner, the 
        Commissioner may withhold past-due benefits under section 223 
        to which such individual is entitled and may pay the amount 
        described in paragraph (3) to the Office of Personnel 
        Management for any disability annuity overpayments made to such 
        individual.
            ``(5) The Director shall credit any amount received under 
        paragraph (4) with respect to an individual toward any 
        disability annuity overpayment owed by such individual.
    ``(b) Limitations.--
    ``(1) Priority of Other Reductions.--Benefits shall only be 
withheld under this section after any other reduction applicable under 
this Act, including sections 206(a)(4), 224, and 1127(a).
    ``(2) Timely Notification Required.--The Commissioner may not 
withhold benefits under this section if the Director does not provide 
the notice described in subsection (a)(3) within the time period 
described in such subsection.
    ``(c) Delayed Payment of Past-Due Benefits.--If the Commissioner is 
required to make a notification described in subsection (a)(2) with 
respect to an individual, the Commissioner shall not make any payment 
of past-due benefits under section 223 to such individual until after 
the period described in subsection (a)(3).
    ``(d) Review.--Notwithstanding section 205 or any other provision 
of law, any determination regarding the withholding of past-due 
benefits under this section shall only be subject to adjudication and 
review by the Director under section 8461 of title 5, United States 
Code.
    ``(e) Disability Annuity Overpayment Defined.--For purposes of this 
section, the term `disability annuity overpayment' means the amount of 
the reduction under section 8452(a)(2) of title 5, United States Code, 
applicable to a monthly annuity payment made to an individual pursuant 
to subchapter V of chapter 84 of subpart G of part III of such title 
due to the individual's concurrent entitlement to a disability 
insurance benefit under section 223 during such month.
    ``(f) Authorization to Withhold Benefits.--The authorization 
described in this subsection, with respect to an individual, is written 
authorization provided by the individual to the Director which 
authorizes the Commissioner to withhold past-due benefits under section 
223 to which such individual is entitled in order to pay the amount 
withheld to the Office of Personnel Management for any disability 
overpayments made to such individual.
    ``(g) Expenses.--The Director shall pay to the Social Security 
Administration an amount equal to the amount estimated by the 
Commissioner as the total cost incurred by the Social Security 
Administration in carrying out this section for each calendar 
quarter.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to past-due disability insurance benefits payable on or after the date 
that is 1 year after the date of the enactment of this section.

SEC. 842. ELIMINATION OF QUINQUENNIAL DETERMINATIONS RELATING TO WAGE 
              CREDITS FOR MILITARY SERVICE PRIOR TO 1957.

    Section 217(g)(2) of the Social Security Act (42 U.S.C. 417(g)(2)) 
is amended--
            (1) by inserting ``through 2010'' after ``each fifth year 
        thereafter''; and
            (2) by inserting after the first sentence the following: 
        ``The Secretary of Health and Human Services shall revise the 
        amount determined under paragraph (1) with respect to the 
        Federal Hospital Insurance Trust Fund under title XVIII in 2015 
        and each fifth year thereafter through such date, and using 
        such data, as the Secretary determines appropriate on the basis 
        of the amount of benefits and administrative expenses actually 
        paid from such Trust Fund under title XVIII and the relevant 
        actuarial assumptions set forth in the report of the Board of 
        Trustees of such Trust Fund for such year under section 
        1817(b).''.

SEC. 843. CERTIFICATION OF BENEFITS PAYABLE TO A DIVORCED SPOUSE OF A 
              RAILROAD WORKER TO THE RAILROAD RETIREMENT BOARD.

    Section 205(i) of the Social Security Act (42 U.S.C. 405(i)) is 
amended by inserting ``or divorced wife or divorced husband'' after 
``the wife or husband''.

SEC. 844. TECHNICAL AMENDMENTS TO ELIMINATE OBSOLETE PROVISIONS.

    (a) Elimination of Reference in Section 226 to a Repealed 
Provision.--Section 226 of the Social Security Act (42 U.S.C. 426) is 
amended--
            (1) by striking subsection (i); and
            (2) by redesignating subsection (j) as subsection (i).
    (b) Elimination of Reference in Section 226A to a Repealed 
Provision.--Section 226A of such Act (42 U.S.C. 426-1) is amended by 
striking the second subsection (c).

SEC. 845. REPORTING REQUIREMENTS TO CONGRESS.

    (a) Report on Fraud and Improper Payment Prevention Activities.--
Section 704(b) of the Social Security Act (42 U.S.C. 904(b)) is amended 
by adding at the end the following:
            ``(3) For each fiscal year beginning with 2016 and ending 
        with 2021, the Commissioner shall include in the annual budget 
        prepared pursuant to subparagraph (A) a report describing the 
        purposes for which amounts made available for purposes 
        described in section 251(b)(2)(B) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 for the fiscal year were 
        expended by the Social Security Administration and the purposes 
        for which the Commissioner plans for the Administration to 
        expend such funds in the succeeding fiscal year, including--
                    ``(A) the total such amount expended;
                    ``(B) the amount expended on co-operative 
                disability investigation units;
                    ``(C) the number of cases of fraud prevented by co-
                operative disability investigation units and the amount 
                expended on such cases (as reported to the Commissioner 
                by the Inspector General of the Social Security 
                Administration);
                    ``(D) the number of felony cases prosecuted under 
                section 208 (as reported to the Commissioner by the 
                Inspector General) and the amount expended by the 
                Social Security Administration in supporting the 
                prosecution of such cases;
                    ``(E) the amount of such felony cases successfully 
                prosecuted (as reported to the Commissioner by the 
                Inspector General) and the amount expended by the 
                Social Security Administration in supporting the 
                prosecution of such cases;
                    ``(F) the amount expended on and the number of 
                completed--
                            ``(i) continuing disability reviews 
                        conducted by mail;
                            ``(ii) redeterminations conducted by mail;
                            ``(iii) medical continuing disability 
                        reviews conducted pursuant to section 221(i);
                            ``(iv) medical continuing disability 
                        reviews conducted pursuant to 1614(a)(3)(H);
                            ``(v) redeterminations conducted pursuant 
                        to section 1611(c); and
                            ``(vi) work-related continuing disability 
                        reviews to determine whether earnings derived 
                        from services demonstrate an individual's 
                        ability to engage in substantial gainful 
                        activity;
                    ``(G) the number of cases of fraud identified for 
                which benefits were terminated as a result of medical 
                continuing disability reviews (as reported to the 
                Commissioner by the Inspector General), work-related 
                continuing disability reviews, and redeterminations, 
                and the amount of resulting savings for each such type 
                of review or redetermination; and
                    ``(H) the number of work-related continuing 
                disability reviews in which a beneficiary improperly 
                reported earnings derived from services for more than 3 
                consecutive months, and the amount of resulting 
                savings.''.
    (b) Report on Work-Related Continuing Disability Reviews.--The 
Commissioner of Social Security shall annually submit to the Committee 
on Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate a report on the number of work-related continuing 
disability reviews conducted each year to determine whether earnings 
derived from services demonstrate an individual's ability to engage in 
substantial gainful activity. Such report shall include--
            (1) the number of individuals receiving benefits based on 
        disability under title II of such Act for whom reports of 
        earnings were received from any source by the Commissioner in 
        the previous calendar year, reported as a total number and 
        separately by the source of the report;
            (2) the number of individuals for whom such reports 
        resulted in a determination to conduct a work-related 
        continuing disability review, and the basis on which such 
        determinations were made;
            (3) in the case of a beneficiary selected for a work-
        related continuing disability review on the basis of a report 
        of earnings from any source--
                    (A) the average number of days--
                            (i) between the receipt of the report and 
                        the initiation of the review;
                            (ii) between the initiation and the 
                        completion of the review; and
                            (iii) the average amount of overpayment, if 
                        any;
                    (B) the number of such reviews completed during 
                such calendar year, and the number of such reviews that 
                resulted in a suspension or termination of benefits;
                    (C) the number of such reviews initiated in the 
                current year that had not been completed as of the end 
                of such calendar year;
                    (D) the number of such reviews initiated in a prior 
                year that had not been completed as of the end of such 
                calendar year;
            (4) the total savings to the Trust Funds and the Treasury 
        generated from benefits suspended or terminated as a result of 
        such reviews; and
            (5) with respect to individuals for whom a work-related 
        continuing disability review was completed during such calendar 
        year--
                    (A) the number who participated in the Ticket to 
                Work program under section 1148 during such calendar 
                year;
                    (B) the number who used any program work incentives 
                during such calendar year; and
                    (C) the number who received vocational 
                rehabilitation services during such calendar year with 
                respect to which the Commissioner of Social Security 
                reimbursed a State agency under section 222(d).
    (c) Report on Overpayment Waivers.--Not later than January 1 of 
each calendar year, the Commissioner of Social Security shall submit to 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on--
            (1) the number and total value of overpayments recovered or 
        scheduled to be recovered by the Social Security Administration 
        during the previous fiscal year of benefits under title II and 
        title XVI, respectively, including the terms and conditions of 
        repayment of such overpayments; and
            (2) the number and total value of overpayments waived by 
        the Social Security Administration during the previous fiscal 
        year of benefits under title II and title XVI, respectively.

SEC. 846. EXPEDITED EXAMINATION OF ADMINISTRATIVE LAW JUDGES.

    (a) In General.--Notwithstanding any other provision of law, the 
Office of Personnel Management shall, upon request of the Commissioner 
of Social Security, expeditiously administer a sufficient number of 
competitive examinations, as determined by the Commissioner, for the 
purpose of identifying an adequate number of candidates to be appointed 
as Administrative Law Judges under section 3105 of title 5, United 
States Code. The first such examination shall take place not later than 
April 1, 2016 and other examinations shall take place at such time or 
times requested by the Commissioner, but not later than December 31, 
2022. Such examinations shall proceed even if one or more individuals 
who took a prior examination have appealed an adverse determination and 
one or more of such appeals have not concluded, provided that--
            (1) the Commissioner of Social Security has made a 
        determination that delaying the examination poses a significant 
        risk that an adequate number of Administrative Law Judges will 
        not be available to meet the need of the Social Security 
        Administration to reduce or prevent a backlog of cases awaiting 
        a hearing;
            (2) an individual whose appeal is pending is provided an 
        option to continue their appeal or elects to take the new 
        examination, in which case the appeal is considered vacated; 
        and
            (3) an individual who decides to continue his or her appeal 
        and who ultimately prevails in the appeal shall receive 
        expeditious consideration for hire by the Office Personnel 
        Management and the Commissioner of Social Security.
    (b) Payment of Costs.--Notwithstanding any other provision of law, 
the Commissioner of Social Security shall pay the full cost associated 
with each examination conducted pursuant to subsection (a).

           TITLE IX--TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT

SEC. 901. TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT.

    (a) In General.--Section 3101(b) of title 31, United States Code, 
shall not apply for the period beginning on the date of the enactment 
of this Act and ending on March 15, 2017.
    (b) Special Rule Relating to Obligations Issued During Extension 
Period.--Effective March 16, 2017, the limitation in effect under 
section 3101(b) of title 31, United States Code, shall be increased to 
the extent that--
            (1) the face amount of obligations issued under chapter 31 
        of such title and the face amount of obligations whose 
        principal and interest are guaranteed by the United States 
        Government (except guaranteed obligations held by the Secretary 
        of the Treasury) outstanding on March 16, 2017, exceeds
            (2) the face amount of such obligations outstanding on the 
        date of the enactment of this Act.

SEC. 902. RESTORING CONGRESSIONAL AUTHORITY OVER THE NATIONAL DEBT.

    (a) Extension Limited to Necessary Obligations.--An obligation 
shall not be taken into account under section 901(b)(1) unless the 
issuance of such obligation was necessary to fund a commitment incurred 
pursuant to law by the Federal Government that required payment before 
March 16, 2017.
    (b) Prohibition on Creation of Cash Reserve During Extension 
Period.--The Secretary of the Treasury shall not issue obligations 
during the period specified in section 901(a) for the purpose of 
increasing the cash balance above normal operating balances in 
anticipation of the expiration of such period.

                       TITLE X--SPECTRUM PIPELINE

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Spectrum Pipeline Act of 2015''.

SEC. 1002. DEFINITIONS.

    In this title:
            (1) Assistant secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary of Commerce for Communications 
        and Information.
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) Federal entity.--The term ``Federal entity'' has the 
        meaning given such term in section 113(l) of the National 
        Telecommunications and Information Administration Organization 
        Act (47 U.S.C. 923(l)).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 1003. RULE OF CONSTRUCTION.

    Each range of frequencies described in this title shall be 
construed to be inclusive of the upper and lower frequencies in the 
range.

SEC. 1004. IDENTIFICATION, REALLOCATION, AND AUCTION OF FEDERAL 
              SPECTRUM.

    (a) Identification of Spectrum.--Not later than January 1, 2022, 
the Secretary shall submit to the President and to the Commission a 
report identifying 30 megahertz of electromagnetic spectrum (in bands 
of not less than 10 megahertz of contiguous frequencies) below the 
frequency of 3 gigahertz (except for the spectrum between the 
frequencies of 1675 megahertz and 1695 megahertz) for reallocation from 
Federal use to non-Federal use or shared Federal and non-Federal use, 
or a combination thereof.
    (b) Clearing of Spectrum.--The President shall--
            (1) not later than January 1, 2022, begin the process of 
        withdrawing or modifying the assignment to a Federal Government 
        station of the electromagnetic spectrum identified under 
        subsection (a); and
            (2) not later than 30 days after completing the withdrawal 
        or modification, notify the Commission that the withdrawal or 
        modification is complete.
    (c) Reallocation and Auction.--
            (1) In general.--The Commission shall--
                    (A) reallocate the electromagnetic spectrum 
                identified under subsection (a) for non-Federal use or 
                shared Federal and non-Federal use, or a combination 
                thereof; and
                    (B) notwithstanding paragraph (15)(A) of section 
                309(j) of the Communications Act of 1934 (47 U.S.C. 
                309(j)), not later than July 1, 2024, begin a system of 
                competitive bidding under such section to grant new 
                initial licenses for the use of such spectrum, subject 
                to flexible-use service rules.
            (2) Proceeds to cover 110 percent of federal relocation or 
        sharing costs.--Nothing in paragraph (1) shall be construed to 
        relieve the Commission from the requirements of section 
        309(j)(16)(B) of the Communications Act of 1934 (47 U.S.C. 
        309(j)(16)(B)).

SEC. 1005. ADDITIONAL USES OF SPECTRUM RELOCATION FUND.

    (a) In General.--Section 118 of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 928) is 
amended--
            (1) by redesignating subsection (g) as subsection (i); and
            (2) by inserting after subsection (f) the following:
    ``(g) Additional Payments for Research and Development and Planning 
Activities.--
            ``(1) Amounts available.--Notwithstanding subsections (c) 
        through (e)--
                    ``(A) there are appropriated from the Fund on the 
                date of the enactment of the Spectrum Pipeline Act of 
                2015, and available to the Director of OMB for use in 
                accordance with paragraph (2), not more than 
                $500,000,000 from amounts in the Fund on such date of 
                enactment; and
                    ``(B) there are appropriated from the Fund after 
                such date of enactment, and available to the Director 
                of OMB for use in accordance with such paragraph, not 
                more than 10 percent of the amounts deposited in the 
                Fund after such date of enactment.
            ``(2) Use of amounts.--
                    ``(A) In general.--The Director of OMB may use 
                amounts made available under paragraph (1) to make 
                payments requested by Federal entities for research and 
                development, engineering studies, economic analyses, 
                activities with respect to systems, or other planning 
                activities intended to improve the efficiency and 
                effectiveness of the spectrum use of Federal entities 
                in order to make available frequencies described in 
                subparagraph (C) for reallocation for non-Federal use 
                or shared Federal and non-Federal use, or a combination 
                thereof, and for auction in accordance with such 
                reallocation.
                    ``(B) Systems that improve efficiency and 
                effectiveness of federal spectrum use.--For purposes of 
                a payment under subparagraph (A) for activities with 
                respect to systems that improve the efficiency and 
                effectiveness of the spectrum use of Federal entities, 
                such systems include the following:
                            ``(i) Systems that have increased 
                        functionality or that increase the ability of a 
                        Federal entity to accommodate spectrum sharing 
                        with non-Federal entities.
                            ``(ii) Systems that consolidate functions 
                        or services that have been provided using 
                        separate systems.
                            ``(iii) Non-spectrum technology or systems.
                    ``(C) Frequencies described.--The frequencies 
                described in this subparagraph are, with respect to a 
                payment under subparagraph (A), frequencies that--
                            ``(i) are assigned to a Federal entity; and
                            ``(ii) at the time of the activities 
                        conducted with such payment, are not identified 
                        for auction.
                    ``(D) Conditions.--The Director of OMB may not make 
                a payment to a Federal entity under subparagraph (A)--
                            ``(i) unless--
                                    ``(I) the Federal entity has 
                                submitted to the Technical Panel 
                                established under section 113(h)(3) a 
                                plan describing the activities that the 
                                Federal entity will conduct with such 
                                payment;
                                    ``(II) the Technical Panel has 
                                approved such plan under subparagraph 
                                (E); and
                                    ``(III) the Director of OMB has 
                                submitted the plan approved under 
                                subparagraph (E) to the congressional 
                                committees described in subsection 
                                (d)(2)(C); and
                            ``(ii) until 60 days have elapsed after 
                        submission of the plan under clause (i)(III).
                    ``(E) Review by technical panel.--
                            ``(i) In general.--Not later than 120 days 
                        after a Federal entity submits a plan under 
                        subparagraph (D)(i)(I) to the Technical Panel 
                        established under section 113(h)(3), the 
                        Technical Panel shall approve or disapprove 
                        such plan.
                            ``(ii) Criteria for review.--In considering 
                        whether to approve or disapprove a plan under 
                        this subparagraph, the Technical Panel shall 
                        consider whether--
                                    ``(I) the activities that the 
                                Federal entity will conduct with the 
                                payment will--
                                            ``(aa) increase the 
                                        probability of relocation from 
                                        or sharing of Federal spectrum;
                                            ``(bb) facilitate an 
                                        auction intended to occur not 
                                        later than 8 years after the 
                                        payment; and
                                            ``(cc) increase the net 
                                        expected auction proceeds in an 
                                        amount not less than the time 
                                        value of the amount of the 
                                        payment; and
                                    ``(II) the transfer will leave 
                                sufficient amounts in the Fund for the 
                                other purposes of the Fund.
    ``(h) Prioritization of Payments.--In determining whether to make 
payments under subsections (f) and (g), the Director of OMB shall, to 
the extent practicable, prioritize payments under subsection (g).''.
    (b) Administrative Support for Technical Panel.--Section 
113(h)(3)(C) of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 923(h)(3)(C)) is amended by 
striking ``this subsection and subsection (i)'' and inserting ``this 
subsection, subsection (i), and section 118(g)(2)(E)''.
    (c) Eligible Federal Entities.--Section 113 of the National 
Telecommunications and Information Administration Organization Act (47 
U.S.C. 923) is amended--
            (1) in subsection (g)--
                    (A) in paragraph (1)--
                            (i) by striking ``authorized to use a band 
                        of eligible frequencies described in paragraph 
                        (2) and'';
                            (ii) by inserting ``eligible'' after 
                        ``auction of'';
                            (iii) by inserting ``eligible'' after 
                        ``reallocation of''; and
                    (B) in paragraph (3)(A), by striking ``previously 
                assigned to such entity or the sharing of spectrum 
                frequencies assigned to such entity'' and inserting 
                ``or the sharing of spectrum frequencies''; and
            (2) in subsection (h)(1), by striking ``authorized to use 
        any such frequency''.

SEC. 1006. PLANS FOR AUCTION OF CERTAIN SPECTRUM.

    (a) Reports to Congress.--In accordance with each paragraph of 
subsection (c), the Commission, in coordination with the Assistant 
Secretary, shall submit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing a proposed plan for 
the assignment of new licenses for non-Federal use of the spectrum 
identified under such paragraph, including--
            (1) an assessment of the operations of Federal entities 
        that operate Federal Government stations authorized to use such 
        spectrum;
            (2) an estimated timeline for the competitive bidding 
        process; and
            (3) a proposed plan for balance between unlicensed and 
        licensed use.
    (b) Information for Assessment of Federal Entity Operations.--The 
Assistant Secretary, in coordination with the affected Federal 
entities, shall provide to the Commission the necessary information to 
carry out subsection (a)(1).
    (c) Report Deadlines; Identification of Spectrum.--The Commission 
shall submit reports under subsection (a) as follows:
            (1) Not later than January 1, 2022, for at least 50 
        megahertz of spectrum (in bands of not less than 10 megahertz 
        of contiguous frequencies) below 6 gigahertz, to be identified 
        by the Commission, in coordination with the Assistant 
        Secretary, from spectrum other than the spectrum identified 
        under section 1004(a).
            (2) Not later than January 1, 2024, for at least 50 
        megahertz of spectrum (in bands of not less than 10 megahertz 
        of contiguous frequencies) below 6 gigahertz, to be identified 
        by the Commission, in coordination with the Assistant 
        Secretary, from spectrum other than the spectrum identified 
        under paragraph (1) or section 1004(a).

SEC. 1007. FCC AUCTION AUTHORITY.

    Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 
309(j)(11)) is amended by inserting before the period at the end the 
following: ``, except that, with respect to the electromagnetic 
spectrum identified under section 1004(a) of the Spectrum Pipeline Act 
of 2015, such authority shall expire on September 30, 2025''.

SEC. 1008. REPORTS TO CONGRESS.

    Not later than 3 years after the date of the enactment of this Act, 
the Commission shall submit to Congress--
            (1) a report containing an analysis of the results of the 
        rules changes relating to the frequencies between 3550 
        megahertz and 3650 megahertz; and
            (2) a report containing an analysis of proposals to promote 
        and identify additional spectrum bands that can be shared 
        between incumbent uses and new licensed, and unlicensed 
        services under such rules and identification of at least 1 
        gigahertz between 6 gigahertz and 57 GHz for such use.

         TITLE XI--REVENUE PROVISIONS RELATED TO TAX COMPLIANCE

SEC. 1101. PARTNERSHIP AUDITS AND ADJUSTMENTS.

    (a) Repeal of TEFRA Partnership Audit Rules.--Chapter 63 of the 
Internal Revenue Code of 1986 is amended by striking subchapter C (and 
by striking the item relating to such subchapter in the table of 
subchapters for such chapter).
    (b) Repeal of Electing Large Partnership Rules.--
            (1) In general.--Subchapter K of chapter 1 of such Code is 
        amended by striking part IV (and by striking the item relating 
        to such part in the table of parts for such subchapter).
            (2) Assessment rules relating to electing large 
        partnerships.--Chapter 63 of such Code is amended by striking 
        subchapter D (and by striking the item relating to such 
        subchapter in the table of subchapters for such chapter).
    (c) Partnership Audit Reform.--
            (1) In general.--Chapter 63 of such Code, as amended by the 
        preceding provisions of this section, is amended by inserting 
        after subchapter B the following new subchapter:

               ``Subchapter C--Treatment of Partnerships

                          ``Part I--In General

                   ``Part II--Partnership Adjustments

                         ``Part III--Procedure

                ``Part IV--Definitions and Special Rules

                          ``PART I--IN GENERAL

``Sec. 6221. Determination at partnership level.
``Sec. 6222. Partner's return must be consistent with partnership 
                            return.
``Sec. 6223. Designation of partnership representative.

``SEC. 6221. DETERMINATION AT PARTNERSHIP LEVEL.

    ``(a) In General.--Any adjustment to items of income, gain, loss, 
deduction, or credit of a partnership for a partnership taxable year 
(and any partner's distributive share thereof) shall be determined, any 
tax attributable thereto shall be assessed and collected, and the 
applicability of any penalty, addition to tax, or additional amount 
which relates to an adjustment to any such item or share shall be 
determined, at the partnership level pursuant to this subchapter.
    ``(b) Election Out for Certain Partnerships With 100 or Fewer 
Partners, etc.--
            ``(1) In general.--This subchapter shall not apply with 
        respect to any partnership for any taxable year if--
                    ``(A) the partnership elects the application of 
                this subsection for such taxable year,
                    ``(B) for such taxable year the partnership is 
                required to furnish 100 or fewer statements under 
                section 6031(b) with respect to its partners,
                    ``(C) each of the partners of such partnership is 
                an individual, a C corporation, any foreign entity that 
                would be treated as a C corporation were it domestic, 
                an S corporation, or an estate of a deceased partner,
                    ``(D) the election--
                            ``(i) is made with a timely filed return 
                        for such taxable year, and
                            ``(ii) includes (in the manner prescribed 
                        by the Secretary) a disclosure of the name and 
                        taxpayer identification number of each partner 
                        of such partnership, and
                    ``(E) the partnership notifies each such partner of 
                such election in the manner prescribed by the 
                Secretary.
            ``(2) Special rules relating to certain partners.--
                    ``(A) S corporation partners.--In the case of a 
                partner that is an S corporation--
                            ``(i) the partnership shall only be treated 
                        as meeting the requirements of paragraph (1)(C) 
                        with respect to such partner if such 
                        partnership includes (in the manner prescribed 
                        by the Secretary) a disclosure of the name and 
                        taxpayer identification number of each person 
                        with respect to whom such S corporation is 
                        required to furnish a statement under section 
                        6037(b) for the taxable year of the S 
                        corporation ending with or within the 
                        partnership taxable year for which the 
                        application of this subsection is elected, and
                            ``(ii) the statements such S corporation is 
                        required to so furnish shall be treated as 
                        statements furnished by the partnership for 
                        purposes of paragraph (1)(B).
                    ``(B) Foreign partners.--For purposes of paragraph 
                (1)(D)(ii), the Secretary may provide for alternative 
                identification of any foreign partners.
                    ``(C) Other partners.--The Secretary may by 
                regulation or other guidance prescribe rules similar to 
                the rules of subparagraph (A) with respect to any 
                partners not described in such subparagraph or 
                paragraph (1)(C).

``SEC. 6222. PARTNER'S RETURN MUST BE CONSISTENT WITH PARTNERSHIP 
              RETURN.

    ``(a) In General.--A partner shall, on the partner's return, treat 
each item of income, gain, loss, deduction, or credit attributable to a 
partnership in a manner which is consistent with the treatment of such 
income, gain, loss, deduction, or credit on the partnership return.
    ``(b) Underpayment Due to Inconsistent Treatment Assessed as Math 
Error.--Any underpayment of tax by a partner by reason of failing to 
comply with the requirements of subsection (a) shall be assessed and 
collected in the same manner as if such underpayment were on account of 
a mathematical or clerical error appearing on the partner's return. 
Paragraph (2) of section 6213(b) shall not apply to any assessment of 
an underpayment referred to in the preceding sentence.
    ``(c) Exception for Notification of Inconsistent Treatment.--
            ``(1) In general.--In the case of any item referred to in 
        subsection (a), if--
                    ``(A)(i) the partnership has filed a return but the 
                partner's treatment on the partner's return is (or may 
                be) inconsistent with the treatment of the item on the 
                partnership return, or
                    ``(ii) the partnership has not filed a return, and
                    ``(B) the partner files with the Secretary a 
                statement identifying the inconsistency,
        subsections (a) and (b) shall not apply to such item.
            ``(2) Partner receiving incorrect information.--A partner 
        shall be treated as having complied with subparagraph (B) of 
        paragraph (1) with respect to an item if the partner--
                    ``(A) demonstrates to the satisfaction of the 
                Secretary that the treatment of the item on the 
                partner's return is consistent with the treatment of 
                the item on the statement furnished to the partner by 
                the partnership, and
                    ``(B) elects to have this paragraph apply with 
                respect to that item.
    ``(d) Final Decision on Certain Positions Not Binding on 
Partnership.--Any final decision with respect to an inconsistent 
position identified under subsection (c) in a proceeding to which the 
partnership is not a party shall not be binding on the partnership.
    ``(e) Addition to Tax for Failure to Comply With Section.--For 
addition to tax in the case of a partner's disregard of the 
requirements of this section, see part II of subchapter A of chapter 
68.

``SEC. 6223. PARTNERS BOUND BY ACTIONS OF PARTNERSHIP.

    ``(a) Designation of Partnership Representative.--Each partnership 
shall designate (in the manner prescribed by the Secretary) a partner 
(or other person) with a substantial presence in the United States as 
the partnership representative who shall have the sole authority to act 
on behalf of the partnership under this subchapter. In any case in 
which such a designation is not in effect, the Secretary may select any 
person as the partnership representative.
    ``(b) Binding Effect.--A partnership and all partners of such 
partnership shall be bound--
            ``(1) by actions taken under this subchapter by the 
        partnership, and
            ``(2) by any final decision in a proceeding brought under 
        this subchapter with respect to the partnership.

                   ``PART II--PARTNERSHIP ADJUSTMENTS

``Sec. 6225. Partnership adjustment by Secretary.
``Sec. 6226. Alternative to payment of imputed underpayment by 
                            partnership.
``Sec. 6227. Administrative adjustment request by partnership.

``SEC. 6225. PARTNERSHIP ADJUSTMENT BY SECRETARY.

    ``(a) In General.--In the case of any adjustment by the Secretary 
in the amount of any item of income, gain, loss, deduction, or credit 
of a partnership, or any partner's distributive share thereof--
            ``(1) the partnership shall pay any imputed underpayment 
        with respect to such adjustment in the adjustment year as 
        provided in section 6232, and
            ``(2) any adjustment that does not result in an imputed 
        underpayment shall be taken into account by the partnership in 
        the adjustment year--
                    ``(A) except as provided in subparagraph (B), as a 
                reduction in non-separately stated income or an 
                increase in non-separately stated loss (whichever is 
                appropriate) under section 702(a)(8), or
                    ``(B) in the case of an item of credit, as a 
                separately stated item.
    ``(b) Determination of Imputed Underpayments.--For purposes of this 
subchapter--
            ``(1) In general.--Except as provided in subsection (c), 
        any imputed underpayment with respect to any partnership 
        adjustment for any reviewed year shall be determined--
                    ``(A) by netting all adjustments of items of 
                income, gain, loss, or deduction and multiplying such 
                net amount by the highest rate of tax in effect for the 
                reviewed year under section 1 or 11,
                    ``(B) by treating any net increase or decrease in 
                loss under subparagraph (A) as a decrease or increase, 
                respectively, in income, and
                    ``(C) by taking into account any adjustments to 
                items of credit as an increase or decrease, as the case 
                may be, in the amount determined under subparagraph 
                (A).
            ``(2) Adjustments to distributive shares of partners not 
        netted.--In the case of any adjustment which reallocates the 
        distributive share of any item from one partner to another, 
        such adjustment shall be taken into account under paragraph (1) 
        by disregarding--
                    ``(A) any decrease in any item of income or gain, 
                and
                    ``(B) any increase in any item of deduction, loss, 
                or credit.
    ``(c) Modification of Imputed Underpayments.--
            ``(1) In general.--The Secretary shall establish procedures 
        under which the imputed underpayment amount may be modified 
        consistent with the requirements of this subsection.
            ``(2) Amended returns of partners.--
                    ``(A) In general.--Such procedures shall provide 
                that if--
                            ``(i) one or more partners file returns 
                        (notwithstanding section 6511) for the taxable 
                        year of the partners which includes the end of 
                        the reviewed year of the partnership,
                            ``(ii) such returns take into account all 
                        adjustments under subsection (a) properly 
                        allocable to such partners (and for any other 
                        taxable year with respect to which any tax 
                        attribute is affected by reason of such 
                        adjustments), and
                            ``(iii) payment of any tax due is included 
                        with such return,
                then the imputed underpayment amount shall be 
                determined without regard to the portion of the 
                adjustments so taken into account.
                    ``(B) Reallocation of distributive share.--In the 
                case of any adjustment which reallocates the 
                distributive share of any item from one partner to 
                another, paragraph (2) shall apply only if returns are 
                filed by all partners affected by such adjustment.
            ``(3) Tax-exempt partners.--Such procedures shall provide 
        for determining the imputed underpayment without regard to the 
        portion thereof that the partnership demonstrates is allocable 
        to a partner that would not owe tax by reason of its status as 
        a tax-exempt entity (as defined in section 168(h)(2)).
            ``(4) Modification of applicable highest tax rates.--
                    ``(A) In general.--Such procedures shall provide 
                for taking into account a rate of tax lower than the 
                rate of tax described in subsection (b)(1)(A) with 
                respect to any portion of the imputed underpayment that 
                the partnership demonstrates is allocable to a partner 
                which--
                            ``(i) in the case of ordinary income, is a 
                        C corporation, or
                            ``(ii) in the case of a capital gain or 
                        qualified dividend, is an individual.
                In no event shall the lower rate determined under the 
                preceding sentence be less than the highest rate in 
                effect with respect to the income and taxpayer 
                described in clause (i) or clause (ii), as the case may 
                be. For purposes of clause (ii), an S corporation shall 
                be treated as an individual.
                    ``(B) Portion of imputed underpayment to which 
                lower rate applies.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the portion of the imputed 
                        underpayment to which the lower rate applies 
                        with respect to a partner under subparagraph 
                        (A) shall be determined by reference to the 
                        partners' distributive share of items to which 
                        the imputed underpayment relates.
                            ``(ii) Rule in case of varied treatment of 
                        items among partners.--If the imputed 
                        underpayment is attributable to the adjustment 
                        of more than 1 item, and any partner's 
                        distributive share of such items is not the 
                        same with respect to all such items, then the 
                        portion of the imputed underpayment to which 
                        the lower rate applies with respect to a 
                        partner under subparagraph (A) shall be 
                        determined by reference to the amount which 
                        would have been the partner's distributive 
                        share of net gain or loss if the partnership 
                        had sold all of its assets at their fair market 
                        value as of the close of the reviewed year of 
                        the partnership.
            ``(5) Other procedures for modification of imputed 
        underpayment.--The Secretary may by regulations or guidance 
        provide for additional procedures to modify imputed 
        underpayment amounts on the basis of such other factors as the 
        Secretary determines are necessary or appropriate to carry out 
        the purposes of this subsection.
            ``(6) Year and day for submission to secretary.--Anything 
        required to be submitted pursuant to paragraph (1) shall be 
        submitted to the Secretary not later than the close of the 270-
        day period beginning on the date on which the notice of a 
        proposed partnership adjustment is mailed under section 6231 
        unless such period is extended with the consent of the 
        Secretary.
            ``(7) Decision of secretary.--Any modification of the 
        imputed underpayment amount under this subsection shall be made 
        only upon approval of such modification by the Secretary.
    ``(d) Definitions.--For purposes of this subchapter--
            ``(1) Reviewed year.--The term `reviewed year' means the 
        partnership taxable year to which the item being adjusted 
        relates.
            ``(2) Adjustment year.--The term `adjustment year' means 
        the partnership taxable year in which--
                    ``(A) in the case of an adjustment pursuant to the 
                decision of a court in a proceeding brought under 
                section 6234, such decision becomes final,
                    ``(B) in the case of an administrative adjustment 
                request under section 6227, such administrative 
                adjustment request is made, or
                    ``(C) in any other case, notice of the final 
                partnership adjustment is mailed under section 6231.

``SEC. 6226. ALTERNATIVE TO PAYMENT OF IMPUTED UNDERPAYMENT BY 
              PARTNERSHIP.

    ``(a) In General.--If the partnership--
            ``(1) not later than 45 days after the date of the notice 
        of final partnership adjustment, elects the application of this 
        section with respect to an imputed underpayment, and
            ``(2) at such time and in such manner as the Secretary may 
        provide, furnishes to each partner of the partnership for the 
        reviewed year and to the Secretary a statement of the partner's 
        share of any adjustment to income, gain, loss, deduction, or 
        credit (as determined in the notice of final partnership 
        adjustment),
section 6225 shall not apply with respect to such underpayment and each 
such partner shall take such adjustment into account as provided in 
subsection (b). The election under paragraph (1) shall be made in such 
manner as the Secretary may provide and, once made, shall be revocable 
only with the consent of the Secretary.
    ``(b) Adjustments Taken Into Account by Partner.--
            ``(1) Tax imposed in year of statement.--Each partner's tax 
        imposed by chapter 1 for the taxable year which includes the 
        date the statement was furnished under subsection (a) shall be 
        increased by the aggregate of the adjustment amounts determined 
        under paragraph (2) for the taxable years referred to therein.
            ``(2) Adjustment amounts.--The adjustment amounts 
        determined under this paragraph are--
                    ``(A) in the case of the taxable year of the 
                partner which includes the end of the reviewed year, 
                the amount by which the tax imposed under chapter 1 
                would increase if the partner's share of the 
                adjustments described in subsection (a) were taken into 
                account for such taxable year, plus
                    ``(B) in the case of any taxable year after the 
                taxable year referred to in subparagraph (A) and before 
                the taxable year referred to in paragraph (1), the 
                amount by which the tax imposed under chapter 1 would 
                increase by reason of the adjustment to tax attributes 
                under paragraph (3).
            ``(3) Adjustment of tax attributes.--Any tax attribute 
        which would have been affected if the adjustments described in 
        subsection (a) were taken into account for the taxable year 
        referred to in paragraph (2)(A) shall--
                    ``(A) in the case of any taxable year referred to 
                in paragraph (2)(B), be appropriately adjusted for 
                purposes of applying such paragraph, and
                    ``(B) in the case of any subsequent taxable year, 
                be appropriately adjusted.
    ``(c) Penalties and Interest.--
            ``(1) Penalties.--Notwithstanding subsections (a) and (b), 
        any penalties, additions to tax, or additional amount shall be 
        determined as provided under section 6221 and the partners of 
        the partnership for the reviewed year shall be liable for any 
        such penalty, addition to tax, or additional amount.
            ``(2) Interest.--In the case of an imputed underpayment 
        with respect to which the application of this section is 
        elected, interest shall be determined--
                    ``(A) at the partner level,
                    ``(B) from the due date of the return for the 
                taxable year to which the increase is attributable 
                (determined by taking into account any increases 
                attributable to a change in tax attributes for a 
                taxable year under subsection (b)(2)), and
                    ``(C) at the underpayment rate under section 
                6621(a)(2), determined by substituting `5 percentage 
                points' for `3 percentage points' in subparagraph (B) 
                thereof.

``SEC. 6227. ADMINISTRATIVE ADJUSTMENT REQUEST BY PARTNERSHIP.

    ``(a) In General.--A partnership may file a request for an 
administrative adjustment in the amount of one or more items of income, 
gain, loss, deduction, or credit of the partnership for any partnership 
taxable year.
    ``(b) Adjustment.--Any such adjustment under subsection (a) shall 
be determined and taken into account for the partnership taxable year 
in which the administrative adjustment request is made--
            ``(1) by the partnership under rules similar to the rules 
        of section 6225 (other than paragraphs (2), (6) and (7) of 
        subsection (c) thereof) for the partnership taxable year in 
        which the administrative adjustment request is made, or
            ``(2) by the partnership and partners under rules similar 
        to the rules of section 6226 (determined without regard to the 
        substitution described in subsection (c)(2)(C) thereof).
In the case of an adjustment that would not result in an imputed 
underpayment, paragraph (1) shall not apply and paragraph (2) shall 
apply with appropriate adjustments.
    ``(c) Period of Limitations.--A partnership may not file such a 
request more than 3 years after the later of--
            ``(1) the date on which the partnership return for such 
        year is filed, or
            ``(2) the last day for filing the partnership return for 
        such year (determined without regard to extensions).
In no event may a partnership file such a request after a notice of an 
administrative proceeding with respect to the taxable year is mailed 
under section 6231.

                          ``PART 1--PROCEDURE

``Sec. 6231. Notice of proceedings and adjustment.
``Sec. 6232. Assessment, collection, and payment.
``Sec. 6233. Interest and penalties.
``Sec. 6234. Judicial review of partnership adjustment.
``Sec. 6235. Period of limitations on making adjustments.

``SEC. 6231. NOTICE OF PROCEEDINGS AND ADJUSTMENT.

    ``(a) In General.--The Secretary shall mail to the partnership and 
the partnership representative--
            ``(1) notice of any administrative proceeding initiated at 
        the partnership level with respect to an adjustment of any item 
        of income, gain, loss, deduction, or credit of a partnership 
        for a partnership taxable year, or any partner's distributive 
        share thereof,
            ``(2) notice of any proposed partnership adjustment 
        resulting from such proceeding, and
            ``(3) notice of any final partnership adjustment resulting 
        from such proceeding.
Any notice of a final partnership adjustment shall not be mailed 
earlier than 270 days after the date on which the notice of the 
proposed partnership adjustment is mailed. Such notices shall be 
sufficient if mailed to the last known address of the partnership 
representative or the partnership (even if the partnership has 
terminated its existence). The first sentence shall apply to any 
proceeding with respect to an administrative adjustment request filed 
by a partnership under section 6227.
    ``(b) Further Notices Restricted.--If the Secretary mails a notice 
of a final partnership adjustment to any partnership for any 
partnership taxable year and the partnership files a petition under 
section 6234 with respect to such notice, in the absence of a showing 
of fraud, malfeasance, or misrepresentation of a material fact, the 
Secretary shall not mail another such notice to such partnership with 
respect to such taxable year.
    ``(c) Authority to Rescind Notice With Partnership Consent.--The 
Secretary may, with the consent of the partnership, rescind any notice 
of a partnership adjustment mailed to such partnership. Any notice so 
rescinded shall not be treated as a notice of a partnership adjustment 
for purposes of this subchapter, and the taxpayer shall have no right 
to bring a proceeding under section 6234 with respect to such notice.

``SEC. 6232. ASSESSMENT, COLLECTION, AND PAYMENT.

    ``(a) In General.--Any imputed underpayment shall be assessed and 
collected in the same manner as if it were a tax imposed for the 
adjustment year by subtitle A, except that in the case of an 
administrative adjustment request to which section 6227(b)(1) applies, 
the underpayment shall be paid when the request is filed.
    ``(b) Limitation on Assessment.--Except as otherwise provided in 
this chapter, no assessment of a deficiency may be made (and no levy or 
proceeding in any court for the collection of any amount resulting from 
such adjustment may be made, begun or prosecuted) before--
            ``(1) the close of the 90th day after the day on which a 
        notice of a final partnership adjustment was mailed, and
            ``(2) if a petition is filed under section 6234 with 
        respect to such notice, the decision of the court has become 
        final.
    ``(c) Premature Action May Be Enjoined.--Notwithstanding section 
7421(a), any action which violates subsection (b) may be enjoined in 
the proper court, including the Tax Court. The Tax Court shall have no 
jurisdiction to enjoin any action under this subsection unless a timely 
petition has been filed under section 6234 and then only in respect of 
the adjustments that are the subject of such petition.
    ``(d) Exceptions to Restrictions on Adjustments.--
            ``(1) Adjustments arising out of math or clerical errors.--
                    ``(A) In general.-- If the partnership is notified 
                that, on account of a mathematical or clerical error 
                appearing on the partnership return, an adjustment to a 
                item is required, rules similar to the rules of 
                paragraphs (1) and (2) of section 6213(b) shall apply 
                to such adjustment.
                    ``(B) Special rule.--If a partnership is a partner 
                in another partnership, any adjustment on account of 
                such partnership's failure to comply with the 
                requirements of section 6222(a) with respect to its 
                interest in such other partnership shall be treated as 
                an adjustment referred to in subparagraph (A), except 
                that paragraph (2) of section 6213(b) shall not apply 
                to such adjustment.
            ``(2) Partnership may waive restrictions.--The partnership 
        may at any time (whether or not any notice of partnership 
        adjustment has been issued), by a signed notice in writing 
        filed with the Secretary, waive the restrictions provided in 
        subsection (b) on the making of any partnership adjustment.
    ``(e) Limit Where No Proceeding Begun.--If no proceeding under 
section 6234 is begun with respect to any notice of a final partnership 
adjustment during the 90-day period described in subsection (b) 
thereof, the amount for which the partnership is liable under section 
6225 shall not exceed the amount determined in accordance with such 
notice.

``SEC. 6233. INTEREST AND PENALTIES.

    ``(a) Interest and Penalties Determined From Reviewed Year.--
            ``(1) In general.--Except to the extent provided in section 
        6226(c), in the case of a partnership adjustment for a reviewed 
        year--
                    ``(A) interest shall be computed under paragraph 
                (2), and
                    ``(B) the partnership shall be liable for any 
                penalty, addition to tax, or additional amount as 
                provided in paragraph (3).
            ``(2) Determination of amount of interest.--The interest 
        computed under this paragraph with respect to any partnership 
        adjustment is the interest which would be determined under 
        chapter 67 for the period beginning on the day after the return 
        due date for the reviewed year and ending on the return due 
        date for the adjustment year (or, if earlier, the date payment 
        of the imputed underpayment is made). Proper adjustments in the 
        amount determined under the preceding sentence shall be made 
        for adjustments required for partnership taxable years after 
        the reviewed year and before the adjustment year by reason of 
        such partnership adjustment.
            ``(3) Penalties.--Any penalty, addition to tax, or 
        additional amount shall be determined at the partnership level 
        as if such partnership had been an individual subject to tax 
        under chapter 1 for the reviewed year and the imputed 
        underpayment were an actual underpayment (or understatement) 
        for such year.
    ``(b) Interest and Penalties With Respect to Adjustment Year 
Return.--
            ``(1) In general.--In the case of any failure to pay an 
        imputed underpayment on the date prescribed therefor, the 
        partnership shall be liable--
                    ``(A) for interest as determined under paragraph 
                (2), and
                    ``(B) for any penalty, addition to tax, or 
                additional amount as determined under paragraph (3).
            ``(2) Interest.--Interest determined under this paragraph 
        is the interest that would be determined by treating the 
        imputed underpayment as an underpayment of tax imposed in the 
        adjustment year.
            ``(3) Penalties.--Penalties, additions to tax, or 
        additional amounts determined under this paragraph are the 
        penalties, additions to tax, or additional amounts that would 
        be determined--
                    ``(A) by applying section 6651(a)(2) to such 
                failure to pay, and
                    ``(B) by treating the imputed underpayment as an 
                underpayment of tax for purposes of part II of 
                subchapter A of chapter 68.

``SEC. 6234. JUDICIAL REVIEW OF PARTNERSHIP ADJUSTMENT.

    ``(a) In General.--Within 90 days after the date on which a notice 
of a final partnership adjustment is mailed under section 6231 with 
respect to any partnership taxable year, the partnership may file a 
petition for a readjustment for such taxable year with--
            ``(1) the Tax Court,
            ``(2) the district court of the United States for the 
        district in which the partnership's principal place of business 
        is located, or
            ``(3) the Claims Court.
    ``(b) Jurisdictional Requirement for Bringing Action in District 
Court or Claims Court.--
            ``(1) In general.--A readjustment petition under this 
        section may be filed in a district court of the United States 
        or the Claims Court only if the partnership filing the petition 
        deposits with the Secretary, on or before the date the petition 
        is filed, the amount of the imputed underpayment (as of the 
        date of the filing of the petition) if the partnership 
        adjustment was made as provided by the notice of final 
        partnership adjustment. The court may by order provide that the 
        jurisdictional requirements of this paragraph are satisfied 
        where there has been a good faith attempt to satisfy such 
        requirement and any shortfall of the amount required to be 
        deposited is timely corrected.
            ``(2) Interest payable.--Any amount deposited under 
        paragraph (1), while deposited, shall not be treated as a 
        payment of tax for purposes of this title (other than chapter 
        67).
    ``(c) Scope of Judicial Review.--A court with which a petition is 
filed in accordance with this section shall have jurisdiction to 
determine all items of income, gain, loss, deduction, or credit of the 
partnership for the partnership taxable year to which the notice of 
final partnership adjustment relates, the proper allocation of such 
items among the partners, and the applicability of any penalty, 
addition to tax, or additional amount for which the partnership may be 
liable under this subchapter.
    ``(d) Determination of Court Reviewable.--Any determination by a 
court under this section shall have the force and effect of a decision 
of the Tax Court or a final judgment or decree of the district court or 
the Claims Court, as the case may be, and shall be reviewable as such. 
The date of any such determination shall be treated as being the date 
of the court's order entering the decision.
    ``(e) Effect of Decision Dismissing Action.--If an action brought 
under this section is dismissed other than by reason of a rescission 
under section 6231(c), the decision of the court dismissing the action 
shall be considered as its decision that the notice of final 
partnership adjustment is correct, and an appropriate order shall be 
entered in the records of the court.

``SEC. 6235. PERIOD OF LIMITATIONS ON MAKING ADJUSTMENTS.

    ``(a) In General.--Except as otherwise provided in this section, no 
adjustment under this subpart for any partnership taxable year may be 
made after the later of--
            ``(1) the date which is 3 years after the latest of--
                    ``(A) the date on which the partnership return for 
                such taxable year was filed,
                    ``(B) the return due date for the taxable year, or
                    ``(C) the date on which the partnership filed an 
                administrative adjustment request with respect to such 
                year under section 6227, or
            ``(2) in the case of any modification of an imputed 
        underpayment under section 6225(c), the date that is 270 days 
        (plus the number of days of any extension consented to by the 
        Secretary under paragraph (4) thereof) after the date on which 
        everything required to be submitted to the Secretary pursuant 
        to such section is so submitted, or
            ``(3) in the case of any notice of a proposed partnership 
        adjustment under section 6231(a)(2), the date that is 270 days 
        after the date of such notice.
    ``(b) Extension by Agreement.--The period described in subsection 
(a) (including an extension period under this subsection) may be 
extended by an agreement entered into by the Secretary and the 
partnership before the expiration of such period.
    ``(c) Special Rule in Case of Fraud, etc.--
            ``(1) False return.--In the case of a false or fraudulent 
        partnership return with intent to evade tax, the adjustment may 
        be made at any time.
            ``(2) Substantial omission of income.--If any partnership 
        omits from gross income an amount properly includible therein 
        and such amount is described in section 6501(e)(1)(A), 
        subsection (a) shall be applied by substituting `6 years' for 
        `3 years'.
            ``(3) No return.--In the case of a failure by a partnership 
        to file a return for any taxable year, the adjustment may be 
        made at any time.
            ``(4) Return filed by secretary.--For purposes of this 
        section, a return executed by the Secretary under subsection 
        (b) of section 6020 on behalf of the partnership shall not be 
        treated as a return of the partnership.
    ``(d) Suspension When Secretary Mails Notice of Adjustment.--If 
notice of a final partnership adjustment with respect to any taxable 
year is mailed under section 6231, the running of the period specified 
in subsection (a) (as modified by the other provisions of this section) 
shall be suspended--
            ``(1) for the period during which an action may be brought 
        under section 6234 (and, if a petition is filed under such 
        section with respect to such notice, until the decision of the 
        court becomes final), and
            ``(2) for 1 year thereafter.

                ``PART 2--DEFINITIONS AND SPECIAL RULES

``Sec. 6241. Definitions and special rules.

``SEC. 6241. DEFINITIONS AND SPECIAL RULES.

    ``For purposes of this subchapter--
            ``(1) Partnership.--The term `partnership' means any 
        partnership required to file a return under section 6031(a).
            ``(2) Partnership adjustment.--The term `partnership 
        adjustment' means any adjustment in the amount of any item of 
        income, gain, loss, deduction, or credit of a partnership, or 
        any partner's distributive share thereof.
            ``(3) Return due date.--The term `return due date' means, 
        with respect to the taxable year, the date prescribed for 
        filing the partnership return for such taxable year (determined 
        without regard to extensions).
            ``(4) Payments nondeductible.--No deduction shall be 
        allowed under subtitle A for any payment required to be made by 
        a partnership under this subchapter.
            ``(5) Partnerships having principal place of business 
        outside united states.--For purposes of sections 6234, a 
        principal place of business located outside the United States 
        shall be treated as located in the District of Columbia.
            ``(6) Partnerships in cases under title 11 of united states 
        code.--
                    ``(A) Suspension of period of limitations on making 
                adjustment, assessment, or collection.--The running of 
                any period of limitations provided in this subchapter 
                on making a partnership adjustment (or provided by 
                section 6501 or 6502 on the assessment or collection of 
                any imputed underpayment determined under this 
                subchapter) shall, in a case under title 11 of the 
                United States Code, be suspended during the period 
                during which the Secretary is prohibited by reason of 
                such case from making the adjustment (or assessment or 
                collection) and--
                            ``(i) for adjustment or assessment, 60 days 
                        thereafter, and
                            ``(ii) for collection, 6 months thereafter.
                A rule similar to the rule of section 6213(f)(2) shall 
                apply for purposes of section 6232(b).
                    ``(B) Suspension of period of limitation for filing 
                for judicial review.--The running of the period 
                specified in section 6234 shall, in a case under title 
                11 of the United States Code, be suspended during the 
                period during which the partnership is prohibited by 
                reason of such case from filing a petition under 
                section 6234 and for 60 days thereafter.
            ``(7) Treatment where partnership ceases to exist.--If a 
        partnership ceases to exist before a partnership adjustment 
        under this subchapter takes effect, such adjustment shall be 
        taken into account by the former partners of such partnership 
        under regulations prescribed by the Secretary.
            ``(8) Extension to entities filing partnership return.--If 
        a partnership return is filed by an entity for a taxable year 
        but it is determined that the entity is not a partnership (or 
        that there is no entity) for such year, then, to the extent 
        provided in regulations, the provisions of this subchapter are 
        hereby extended in respect of such year to such entity and its 
        items and to persons holding an interest in such entity.''.
            (2) Clerical amendment.--The table of subchapters for 
        chapter 63 of the Internal Revenue Code of 1986, as amended by 
        the preceding provisions of this section, is amended by 
        inserting after the item relating to subchapter B the following 
        new item:

             ``subchapter c. treatment of partnerships.''.

    (d) Binding Nature of Partnership Adjustment Proceedings.--Section 
6330(c)(4) of such Code is amended by striking ``or'' at the end of 
subparagraph (A), by striking the period at the end of subparagraph (B) 
and inserting ``; or'', and by inserting after subparagraph (B) the 
following new subparagraph:
                    ``(C) a final determination has been made with 
                respect to such issue in a proceeding brought under 
                subchapter C of chapter 63.''.
    (e) Restriction on Authority to Amend Partner Information 
Statements.--Section 6031(b) of such Code is amended by adding at the 
end the following: ``Except as provided in the procedures under section 
6225(c), with respect to statements under section 6226, or as otherwise 
provided by the Secretary, information required to be furnished by the 
partnership under this subsection may not be amended after the due date 
of the return under subsection (a) to which such information 
relates.''.
    (f) Conforming Amendments.--
            (1) Section 6031(b) of such Code is amended by striking the 
        last sentence.
            (2) Section 6422 of such Code is amended by striking 
        paragraph (12).
            (3) Section 6501(n) of such Code is amended by striking 
        paragraphs (2) and (3) and by striking ``Cross References'' and 
        all that follows through ``For period of limitations'' and 
        inserting ``Cross Reference.--For period of limitations''.
            (4) Section 6503(a)(1) of such Code is amended by striking 
        ``(or section 6229'' and all that follows through ``of section 
        6230(a))''.
            (5) Section 6504 of such Code is amended by striking 
        paragraph (11).
            (6) Section 6511 of such Code is amended by striking 
        subsection (g).
            (7) Section 6512(b)(3) of such Code is amended by striking 
        the second sentence.
            (8) Section 6515 of such Code is amended by striking 
        paragraph (6).
            (9) Section 6601(c) of such Code is amended by striking the 
        last sentence.
            (10) Section 7421(a) of such Code is amended by striking 
        ``6225(b), 6246(b)'' and inserting ``6232(c)''.
            (11) Section 7422 of such Code is amended by striking 
        subsection (h).
            (12) Section 7459(c) of such Code is amended by striking 
        ``section 6226'' and all that follows through ``or 6252'' and 
        inserting ``section 6234''.
            (13) Section 7482(b)(1) of such Code is amended--
                    (A) in subparagraph (E), by striking ``section 
                6226, 6228, 6247, or 6252'' and inserting ``section 
                6234'',
                    (B) by striking subparagraph (F), by striking 
                ``or'' at the end of subparagraph (E) and inserting a 
                period, and by inserting ``or'' at the end of 
                subparagraph (D), and
                    (C) in the last sentence, by striking ``section 
                6226, 6228(a), or 6234(c)'' and inserting ``section 
                6234''.
            (14) Section 7485(b) of such Code is amended by striking 
        ``section 6226, 6228(a), 6247, or 6252'' and inserting 
        ``section 6234''.
    (g) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        returns filed for partnership taxable years beginning after 
        December 31, 2017.
            (2) Administrative adjustment requests.--In the case of 
        administrative adjustment request under section 6227 of such 
        Code, the amendments made by this section shall apply to 
        requests with respect to returns filed for partnership taxable 
        years beginning after December 31, 2017.
            (3) Adjusted partners statements.--In the case of a 
        partnership electing the application of section 6226 of such 
        Code, the amendments made by this section shall apply to 
        elections with respect to returns filed for partnership taxable 
        years beginning after December 31, 2017.
            (4) Election.--A partnership may elect (at such time and in 
        such form and manner as the Secretary of the Treasury may 
        prescribe) for the amendments made by this section (other than 
        the election under section 6221(b) of such Code (as added by 
        this Act)) to apply to any return of the partnership filed for 
        partnership taxable years beginning after the date of the 
        enactment of this Act and before January 1, 2018.

SEC. 1102. PARTNERSHIP INTERESTS CREATED BY GIFT.

    (a) In General.--Section 761(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: ``In the case of a 
capital interest in a partnership in which capital is a material 
income-producing factor, whether a person is a partner with respect to 
such interest shall be determined without regard to whether such 
interest was derived by gift from any other person.''.
    (b) Conforming Amendments.--Section 704(e) of such Code is 
amended--
            (1) by striking paragraph (1) and by redesignating 
        paragraphs (2) and (3) as paragraphs (1) and (2), respectively,
            (2) by striking ``this section'' in paragraph (2) (as so 
        redesignated) and inserting ``this subsection'', and
            (3) by striking ``Family Partnerships'' in the heading and 
        inserting ``Partnership Interests Created by Gift''.
    (c) Effective Date.--The amendments made by this section shall 
apply to partnership taxable years beginning after December 31, 2015.

             TITLE XII--DESIGNATION OF SMALL HOUSE ROTUNDA

SEC. 1201. DESIGNATING SMALL HOUSE ROTUNDA AS ``FREEDOM FOYER''.

    The first floor of the area of the House of Representatives wing of 
the United States Capitol known as the small House rotunda is 
designated the ``Freedom Foyer''.

            Attest:

                                                                 Clerk.
114th CONGRESS

  1st Session

                               H.R. 1314

_______________________________________________________________________

                  HOUSE AMENDMENT TO SENATE AMENDMENT