[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1314 Enrolled Bill (ENR)]
H.R.1314
One Hundred Fourteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and fifteen
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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%''.
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(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''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.