[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%''.
----------------------------------------------------------------------------------------------------------------


    (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.