[Congressional Record Volume 157, Number 155 (Monday, October 17, 2011)]
[Senate]
[Pages S6602-S6605]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. WYDEN (for himself, Mr. Portman, Mr. Nelson of Nebraska, 
        and Mr. Burr):
  S. 1718. A bill to amend title XVIII of the Social Security Act with 
respect to the application of Medicare secondary payer rules for 
certain claims; to the Committee on Finance.
  Mr. WYDEN. Mr. President, I rise today to advocate for increasing 
Medicare efficiency and effectiveness by introducing the Strengthening 
Medicare and Repaying Taxpayers, SMART, Act of 2011 with my colleagues, 
Senators Portman, Ben Nelson, and Burr.
  The SMART Act initiates common sense changes to the Medicare 
Secondary Payer, MSP, system, as a means of achieving that efficiency 
and effectiveness. This system kicks in whenever a Medicare beneficiary 
is injured and another party accepts responsibility to pay for the 
costs associated with that injury, making Medicare the ``secondary 
payer.'' For example, if a Medicare beneficiary is injured when she 
slips in a store the store reimburses her for the costs of the injury. 
In this scenario the store becomes the party responsible for paying the 
costs associated with the injury, and if Medicare pays any of the costs 
associated with the injury, it has to be reimbursed. The purpose of 
this system is to ensure that Medicare does not pay claims that a third 
party is liable for. Although seemingly obvious, the system currently 
on the books is set up in manner that is unnecessarily burdensome to 
all parties involved in these claims.
  At the heart of the problem is the lack of financial disclosure by 
the Center for Medicare and Medicaid Services, CMS. Under the current 
MSP system, CMS does not calculate the MSP amount owed to the Trust 
Fund until after a claim has settled, making it impossible for the 
parties to factor that amount into the settlement process. Even after 
the claim has been settled and reported to Medicare, it can take months 
for the parties to find out how much money is actually owed in 
reimbursement.
  Does this make any sense at all? Of course not. The beneficiary has 
no idea what portion of the settlement will be left after the payment 
is made to Medicare, the third party responsible for the bill has no 
way of knowing whether or not the amount settled upon will be 
sufficient to fully reimburse Medicare, and the Medicare Trust Fund is 
denied much needed funds because of the uncertain settlement process.
  It is clear that the repercussions of our inefficient MSP system are 
widespread. Individual beneficiaries and businesses large and small are 
left in the dark. On top of that, State and local governments that 
settle personal injury and worker compensation claims also fall victim 
to these long, drawn out settlements which costs a significant amount 
of money at a time when budgets are especially tight.
  The legislation my colleagues and I are introducing today provides a 
straightforward and commonsense solution. The SMART Act would create a 
more effective and efficient MSP process for all parties involved, 
while speeding the return of Medicare Trust Fund dollars. This 
legislation will improve the flow of information so that beneficiaries 
and companies may determine how much money is owed to the Trust Fund 
before they settle a claim. This change will enable parties to 
calculate the MSP amount they owe and reimburse Medicare directly, and 
it will provide CMS with tools to ensure that Medicare is fully 
reimbursed.
  Medicare beneficiaries and businesses will no longer be forced to 
play this real life version of ``Price is Right,'' where Medicare plays 
the Bob Barker/Drew Carey role and the other parties are forced to 
guess at how much is owed.
  The SMART Act will also preserve taxpayer resources by ensuring that 
Medicare does not spend more money pursuing these cases than the claim 
is actually worth. There have been reports of MSP demands as low as 
$2--CMS should not be spending more money on postage than the Medicare 
Trust Fund will receive in reimbursement. Surely we can create a 
sensible threshold that will protect Medicare's interest and prevent 
parties from gaming the system without wasting government money chasing 
down elderly beneficiaries to collect a handful of quarters.
  In addition to streamlining the MSP system the SMART Act will protect 
consumers by eliminating the requirement for businesses to collect 
Social Security Numbers or Medicare numbers during the claims process. 
This is in line with a recently launched Medicare campaign which 
encourages beneficiaries not to give out these numbers as an important 
tool in fighting health care fraud and identity theft. We should not be 
sending seniors mixed messages or punishing businesses that are unable 
to obtain this information, despite their best efforts, from 
understandably reticent seniors.
  The SMART Act will provide much needed clarity to the MSP system and 
will relieve the burden that is currently placed on all parties 
involved in the process.
  I urge my colleagues to join us in cosponsoring this important 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1718

       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 
     ``Strengthening Medicare And Repaying Taxpayers Act of 
     2011''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Expediting Secretarial determination of reimbursement amount to 
              improve program efficiency.
Sec. 3. Fiscal efficiency and revenue neutrality.
Sec. 4. Reporting requirement safe harbors.
Sec. 5. Use of social security numbers and other identifying 
              information in reporting.
Sec. 6. Statute of limitations.

     SEC. 2. EXPEDITING SECRETARIAL DETERMINATION OF REIMBURSEMENT 
                   AMOUNT TO IMPROVE PROGRAM EFFICIENCY.

       Section 1862(b)(2)(B) of the Social Security Act (42 U.S.C. 
     1395y(b)(2)(B)) is amended by adding at the end the following 
     new clause:
       ``(vii) Timely notice of conditional payment 
     reimbursement.--

       ``(I) Request for conditional payment statement.--In the 
     case of a payment made by the Secretary pursuant to clause 
     (i) for items and services provided to the claimant, the 
     claimant or applicable plan (as defined in paragraph (8)(F)) 
     may at any time beginning 120 days before the reasonably 
     expected date of a settlement, judgment, award, or other 
     payment, notify the Secretary that a payment is reasonably 
     expected, and request from the Secretary, in accordance with 
     regulations, a statement of the conditional payment 
     reimbursement amount (in this clause referred to as a 
     `statement of reimbursement amount') for any payments subject 
     to reimbursement required under clause (ii). A claimant or 
     applicable plan may request a statement under this subclause 
     only once with respect to such settlement, judgment, award, 
     or other payment.
       ``(II) Secretarial response.--

       ``(aa) In general.--Not later than 65 days after the date 
     of receipt of a request under subclause (I), the Secretary 
     shall respond to such request with a statement of 
     reimbursement amount, which shall constitute the conditional 
     payment subject to recovery under clause (ii) related to such 
     settlement, judgment, award or other payment.
       ``(bb) Case of secretarial failure.--Subject to subclause 
     (III), if the Secretary fails to provide such a statement of 
     reimbursement amount for items or services subject to 
     reimbursement required under clause (ii) in accordance with 
     this subclause, the claimant, applicable plan, or an entity 
     that receives payment from an applicable plan shall provide 
     an additional notice to the Secretary of such failure. If the 
     Secretary fails to provide a statement of reimbursement 
     amount within 30 days of the date of such additional notice, 
     the claimant, applicable plan, and an entity that receives 
     payment from an applicable plan shall not be liable for and 
     shall not be obligated to make payment subject to this 
     section for any item or service related to the request unless 
     the Secretary demonstrates (in accordance with regulations) 
     that the failure was justified due to exceptional 
     circumstances (as defined in such regulations). Such 
     regulations shall define exceptional circumstances in a 
     manner so that not more than 1 percent of the repayment 
     obligations under this subclause would qualify as exceptional 
     circumstances.

       ``(III) Notice to secretary.--In the event that a 
     settlement, judgment, award, or other payment does not occur 
     (or is no longer reasonably expected to occur) within 120 
     days of the date of an original request under subclause (I) 
     with respect to a settlement, judgment, award, or other 
     payment, the claimant or the applicable plan shall timely 
     notify the Secretary, and the Secretary shall be exempt from 
     any obligation under subclause (II) with respect to a 
     statement of reimbursement amount relating to such 
     settlement, judgment, award, or other payment related to the 
     notice.

[[Page S6603]]

       ``(IV) Effective date.--The Secretary shall promulgate 
     final regulations to carry out this clause not later than 9 
     months after the date of the enactment of this clause. Such 
     regulations shall require the disclosure from a claimant or 
     applicable plan of no more than the minimum amount of 
     information necessary for the Secretary to determine the 
     amount of conditional payment subject to recovery under 
     clause (ii) related to such settlement, judgment, award, or 
     other payment, and may require partial disclosure (but may 
     not require full disclosure) of social security numbers or 
     health identification claim numbers.

       ``(viii) Right of appeal.--The Secretary shall promulgate 
     regulations establishing a right of appeal and appeals 
     process, with respect to any determination under this 
     subsection for a payment made under this title for an item or 
     service under a primary plan, under which the applicable plan 
     involved, or an attorney, agent, or third party administrator 
     on behalf of such applicable plan, may appeal such 
     determination. Such right of appeal shall--

       ``(I) include review through an administrative law judge 
     and administrative review board, and access to judicial 
     review in the district court of the United States for the 
     judicial district in which the appellant is located (or, in 
     the case of an action brought jointly by more than one 
     applicant, the judicial district in which the greatest number 
     of applicants are located) or in the District Court for the 
     District of Columbia; and
       ``(II) be carried out in a manner similar to the appeals 
     procedure under regulations for hearing procedures respecting 
     notices of determinations of nonconformance of group health 
     plans under this subsection.''.

     SEC. 3. FISCAL EFFICIENCY AND REVENUE NEUTRALITY.

       (a) In General.--Section 1862(b) of the Social Security Act 
     (42 U.S.C. 1395y(b)) is amended--
       (1) in paragraph (2)(B)(ii), by striking ``A primary plan'' 
     and inserting ``Subject to paragraph (9), a primary plan''; 
     and
       (2) by adding at the end the following new paragraph:
       ``(9) Exception.--
       ``(A) In general.--Clause (ii) of paragraph (2)(B) and any 
     reporting required by paragraph (8) shall not apply with 
     respect to any settlement, judgment, award, or other payment 
     by an applicable plan constituting a total payment obligation 
     to a claimant of not more than the single threshold amount 
     calculated by the Chief Actuary of the Centers for Medicare & 
     Medicaid Services under subparagraph (B) for the year 
     involved.
       ``(B) Annual computation of thresholds.--Not later than 
     November 15 before each year, the Chief Actuary of the 
     Centers for Medicare & Medicaid Services shall calculate and 
     publish a single threshold amount for settlements, judgments, 
     awards or other payments for conditional payment obligations 
     arising from each of liability insurance (including self-
     insurance), workers' compensation laws or plans, and no fault 
     insurance subject to this section for that year. Each such 
     annual single threshold amount for a year shall be set such 
     that the expected average amount to be credited to the 
     Medicare trust funds of collections of conditional payments 
     from such settlements, judgments, awards, or other payments 
     for each of liability insurance (including self-insurance), 
     workers' compensation laws or plans, and no fault insurance 
     subject to this section shall equal the expected average cost 
     of collection incurred by the United States (including 
     payments made to contractors) for a conditional payment from 
     each of liability insurance (including self-insurance), 
     workers' compensation laws or plans, and no fault insurance 
     subject to this section for the year. The Chief Actuary shall 
     include, as part of such publication for a year--
       ``(i) the expected average cost of collection incurred by 
     the United States (including payments made to contractors) 
     for a conditional payment arising from each of liability 
     insurance (including self-insurance), no fault insurance, and 
     workers' compensation laws or plans; and
       ``(ii) a summary of the methodology and data used by such 
     Chief Actuary in computing the threshold amount and such 
     average cost of collection.
       ``(C) Treatment of ongoing expenses.--For purposes of this 
     paragraph and with respect to a settlement, judgment, award, 
     or other payment not otherwise addressed in clause (ii) of 
     paragraph (2)(B) involving the ongoing responsibility for 
     medical payments, such payment shall include only the 
     cumulative value of the medical payments made and the 
     purchase price of any annuity or similar instrument.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to years beginning more than 4\1/2\ months after 
     the date of the enactment of this Act.

     SEC. 4. REPORTING REQUIREMENT SAFE HARBORS.

       Section 1862(b)(8) of the Social Security Act (42 U.S.C. 
     1395y(b)(8)) is amended--
       (1) in the first sentence of subparagraph (E)(i), by 
     striking ``shall be subject'' and all that follows through 
     the end of the sentence and inserting the following: ``may be 
     subject to a civil money penalty of up to $1,000 for each day 
     of noncompliance. The severity of each such penalty shall be 
     based on the knowing, willful, and repeated nature of the 
     violation.''; and
       (2) by adding at the end the following new subparagraph:

       ``(I) Establishment of safe harbors.--Not later than 60 
     days after the date of the enactment of this subparagraph, 
     the Secretary shall publish a notice in the Federal Register 
     soliciting proposals, which will be accepted during a 60-day 
     period, for the specification of practices for which 
     sanctions will not be imposed under subparagraph (E), 
     including for good faith efforts to identify a beneficiary 
     pursuant to this paragraph under an applicable entity 
     responsible for reporting information, under which this 
     paragraph will be deemed to have complied with the reporting 
     requirements under this paragraph and will not be subject to 
     such sanctions. After considering the proposals so submitted, 
     the Secretary, in consultation with the Attorney General, 
     shall publish in the Federal Register, including a 60-day 
     period for comment, proposed specified practices for which 
     such sanctions will not be imposed. After considering any 
     public comments received during such period, the Secretary 
     shall issue final rules specifying such practices.''.

     SEC. 5. USE OF SOCIAL SECURITY NUMBERS AND OTHER IDENTIFYING 
                   INFORMATION IN REPORTING.

       Section 1862(b)(8)(B) of the Social Security Act (42 U.S.C. 
     1395y(b)(8)(B)) is amended by adding at the end (after and 
     below clause (ii)) the following: ``Not later than 1 year 
     after the date of enactment of this sentence, the Secretary 
     shall modify the reporting requirements under this paragraph 
     so that an applicable plan in complying with such 
     requirements is permitted but not required to access or 
     report to the Secretary beneficiary social security account 
     numbers or health identification claim numbers.''.

     SEC. 6. STATUTE OF LIMITATIONS.

       (a) In General.--Section 1862(b) of the Social Security Act 
     (42 U.S.C. 1395y(b)) is amended--
       (1) in paragraph (2)(B)(iii), by adding at the end the 
     following new sentence: ``An action may not be brought by the 
     United States under this clause with respect to payment owed 
     unless the complaint is filed not later than 3 years after 
     the date of the receipt of notice of a settlement, judgment, 
     award, or other payment made pursuant to paragraph (8) 
     relating to such payment owed.''; and
       (2) in paragraph (8)(E)(i), by adding at the end the 
     following new sentence: ``A civil money penalty may not be 
     imposed under this clause with respect to failure to submit 
     required information unless service of notice of intention to 
     impose the penalty is provided not later than 3 years after 
     the date by which the information was required to be 
     submitted.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to actions brought and penalties 
     sought on or after 6 months after the date of the enactment 
     of this Act.
  Mr. PORTMAN. Mr. President, I am pleased to introduce the 
Strengthening Medicare and Repaying Taxpayers, SMART, Act with Senators 
Wyden, Burr and Ben Nelson. This bi-partisan effort will help 
strengthen and protect Medicare by ensuring greater reliability and 
efficiency of Medicare reimbursements. The SMART Act proposes common-
sense solutions to problems in the current Medicare Secondary Payer, 
MSP, system, at no cost to the American taxpayer. With Washington's sky 
high debt and deficit, we need to do everything we can to ensure that 
vital entitlement programs, such as Medicare, are cost effective and 
working for the very people they were designed to help.
  Under the MSP program, if a Medicare beneficiary is injured by a 
third party and a settlement is pursued as a result of that injury, the 
third party is responsible for paying for the individual's medical 
expenses. If Medicare, now the ``secondary payer,'' pays any of the 
costs associated with the injury, it is entitled to reimbursement.
  Numerous problems exist with the current MSP system; each of these 
are addressed by the SMART Act.
  Under current law, Medicare does not have a pathway to disclose their 
MSP amount until after a case has been settled or adjusted--which 
creates an uncertainty that impedes beneficiaries and third parties 
from reaching a legal settlement. This legislation creates a process 
that allows the Centers for Medicare and Medicaid Services, CMS, to 
disclose this information before settlement, so it can be factored into 
the settlement.
  Second, Medicare often spends more money pursuing an MSP payment than 
they actually receive in payment. This bill requires that Medicare no 
longer pursue MSP claims that do not cover their own expenses.
  Additionally, the MSP system requires complex and extensive reporting 
requirements from those who settle a claim involving Medicare. If all 
required information is not 100 percent accurate and on-time, the 
company is fined $1,000 per claim, per day. The SMART Act provides CMS 
with leeway to issue smaller fines and provides safe harbor to protect 
companies that make

[[Page S6604]]

good faith efforts to comply fully and on-time.
  Furthermore, under these requirements, claim beneficiaries must 
submit their Social Security numbers or Health Insurance Claim Numbers, 
Medicare Numbers, to the settlement company so they can be reported to 
CMS, generating serious privacy concerns. This legislation directs 
Medicare to establish an alternative method of identifying individuals, 
to mitigate concerns about identity theft and Medicare fraud.
  Finally, there is currently no clear statute of limitations on MSP 
claims. This bill sets a 3-year statute of limitations for most claims.
  The SMART Act is a common-sense bi-partisan bill that will make the 
MSP system work more efficiently, reduce unnecessary burdens and waste, 
and speed the repayment of amounts owed to the Medicare Trust Fund.
                                 ______
                                 
      By Mrs. FEINSTEIN:
  S. 1719. A bill to clarify that schools and local educational 
agencies participating in the school lunch program under the Richard B. 
Russell National School Lunch Act are authorized to donate excess food 
to local food banks or charitable organizations; to the Committee on 
Agriculture, Nutrition, and Forestry.
  Mrs. FEINSTEIN. Mr. President. I rise to introduce legislation which 
would provide clarification to schools and school districts that wish 
to donate excess food to food banks and charitable organizations.
  In 1996, Congress passed the Bill Emerson Good Samaritan Food 
Donation Act to encourage the donation of food and grocery products to 
nonprofit organizations such as homeless shelters, soup kitchens and 
churches for distribution to needy individuals. The law limits the 
liability of donors to instances of gross negligence or intentional 
misconduct. However, because the law does not explicitly include 
schools as having limited liability, many schools and school districts 
have been hesitant to donate excess food.
  This legislation would amend the Richard B. Russell National School 
Lunch Act to clarify that schools and local education agencies 
participating in the school lunch program under the act are authorized 
to donate excess food to local food banks or charitable organizations. 
It would clarify that schools and local education agencies making 
donations would be exempt from civil and criminal liability to the 
extent provided under the Bill Emerson Good Samaritan Act.
  Schools interested in donating excess food would be encouraged and 
better informed with the passage of this legislation. The Secretary of 
Education would provide schools with guidance to assist schools with 
food donations.
  Given the current economy and high unemployment rate, more and more 
individuals are becoming dependent on food banks and charities. This 
legislation would help to address the needs of those living in poverty 
by increasing support for food donations.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1719

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``School Food Recovery Act''.

     SEC. 2. FOOD DONATION PROGRAM.

       Section 9 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1758) is amended by adding at the end the 
     following:
       ``(l) Food Donation Program.--
       ``(1) In general.--Each school and local educational agency 
     participating in the school lunch program under this Act may 
     donate any food not consumed under such program to eligible 
     local food banks or charitable organizations.
       ``(2) Guidance.--
       ``(A) In general.--Not later than 180 days after the date 
     of the enactment of this subsection, the Secretary shall 
     develop and publish guidance to schools and local educational 
     agencies participating in the school lunch program under this 
     Act to assist such schools and local educational agencies in 
     donating food under this subsection.
       ``(B) Updates.--The Secretary shall update such guidance as 
     necessary.
       ``(3) Liability.--Any school or local educational agency 
     making donations pursuant to this subsection shall be exempt 
     from civil and criminal liability to the extent provided 
     under the Bill Emerson Good Samaritan Food Donation Act (42 
     U.S.C. 1791).
       ``(4) Definition.--In this subsection, the term `eligible 
     local food banks or charitable organizations' means any food 
     bank or charitable organization which is exempt from tax 
     under section 501(c)(3) of the Internal Revenue Code of 1986 
     (26 U.S.C. 501(c)(3)).''.
                                 ______
                                 
      By Mrs. BOXER:
  S. 1722. A bill to improve early education, and for other purposes; 
to the Committee on Health, Education, Labor, and Pensions.
  Mrs. BOXER. Mr. President, today I rise to introduce the Early 
Language Proficiency Act, legislation critical to preparing young 
children across our country to be successful in school.
  Studies have shown that children who participate in pre-kindergarten 
programs are less likely to be held back a grade, show greater learning 
retention and initiative, have better social skills, are more 
enthusiastic about school, and are more likely to have good attendance 
records.
  Experts agree that an early education experience is one of the most 
effective strategies for improving later school performance. The 
National Research Council reported that prekindergarten educational 
opportunities are critical in developing early language and literacy 
skills and preventing reading difficulties in young children.
  This bill is a step forward in making a national commitment to giving 
all children access to high quality pre-kindergarten programs that have 
been proven to have a solid impact on a child's success later in school 
and in life.
  The Early Language Proficiency Act, would authorize pre-kindergarten 
English language instruction as an allowable use of Federal funding. 
With over 5 million English language learning students nationwide, 1.5 
million of who reside in my home State of in California, allowing 
school districts to use Federal funds to prepare young English learners 
for grade school is critical.
  In addition, this legislation will help local school districts use 
federal funds to provide prekindergarten services to all young children 
they serve. Although school districts may already use Federal funds 
from Title I of the Elementary and Secondary Education Act for early 
education, many school districts are either unaware of or are uncertain 
of how to use this authority. The Early Language Proficiency Act would 
ensure that states provide proper guidance to local schools about how 
to use Title I funds to educate pre-kindergarteners.
  The future of our Nation's economy depends on the next generation of 
workers, and high-quality early childhood education is key to preparing 
them for their careers. In the long run, pre-kindergarten programs pay 
for themselves. Decades of research have proven that early education 
programs yield between $7 to $16 for every dollar invested.
  Ensuring that all students start school ready to learn is essential 
to ensuring that we meet our goal of having the best-educated workforce 
and the highest proportion of college graduates in the world by 2020. I 
urge my colleagues to support this legislation.
                                 ______
                                 
      By Mr. McCONNELL:
  S. 1726. A bill to repeal the imposition of withholding on certain 
payments made to vendors by government entities; read the first time.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1726

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Withholding Tax Relief Act 
     of 2011''.

     SEC. 2. REPEAL OF IMPOSITION OF WITHHOLDING ON CERTAIN 
                   PAYMENTS MADE TO VENDORS BY GOVERNMENT 
                   ENTITIES.

       The amendment made by section 511 of the Tax Increase 
     Prevention and Reconciliation Act of 2005 is repealed and the 
     Internal Revenue Code of 1986 shall be applied as if such 
     amendment had never been enacted.

     SEC. 3. RESCISSION OF UNSPENT FEDERAL FUNDS TO OFFSET LOSS IN 
                   REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     law, of all available unobligated funds, $30,000,000,000 in 
     appropriated

[[Page S6605]]

     discretionary funds are hereby permanently rescinded.
       (b) Implementation.--The Director of the Office of 
     Management and Budget shall determine and identify from which 
     appropriation accounts the rescission under subsection (a) 
     shall apply and the amount of such rescission that shall 
     apply to each such account. Not later than 60 days after the 
     date of the enactment of this Act, the Director of the Office 
     of Management and Budget shall submit a report to the 
     Secretary of the Treasury and Congress of the accounts and 
     amounts determined and identified for rescission under the 
     preceding sentence.
       (c) Exception.--This section shall not apply to the 
     unobligated funds of the Department of Defense or the 
     Department of Veterans Affairs.

                          ____________________