[Congressional Record (Bound Edition), Volume 160 (2014), Part 12]
[House]
[Pages 16488-16500]
[From the U.S. Government Publishing Office, www.gpo.gov]




             ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014

  Mr. CAMP. Mr. Speaker, pursuant to House Resolution 766, I call up 
the bill (H.R. 647) to amend the Internal Revenue Code of 1986 to 
provide for the tax treatment of ABLE accounts established under State 
programs for the care of family members with disabilities, and for 
other purposes, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to H. Res. 766, in lieu of the 
amendment in the nature of a substitute recommended by the Committee on 
Ways and Means, printed in the bill, the amendment in the nature of a 
substitute printed in part B of House Report 113-643 is adopted, and 
the bill, as amended, is considered read.
  The text of the bill, as amended, is as follows:

                                H.R. 647

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

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Achieving 
     a Better Life Experience Act of 2014'' or the ``ABLE Act of 
     2014''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; etc.

                    TITLE I--QUALIFIED ABLE PROGRAMS

Sec. 101. Purposes.
Sec. 102. Qualified ABLE programs.
Sec. 103. Treatment of ABLE accounts under certain Federal programs.
Sec. 104. Treatment of able accounts in bankruptcy.
Sec. 105. Investment direction rule for 529 plans.

                           TITLE II--OFFSETS

Sec. 201. Correction to workers compensation offset age.
Sec. 202. Accelerated application of relative value targets for 
              misvalued services in the Medicare physician fee 
              schedule.
Sec. 203. Consistent treatment of vacuum erection systems in Medicare 
              Parts B and D.
Sec. 204. One-year delay of implementation of oral-only policy under 
              Medicare ESRD prospective payment system.
Sec. 205. Modification relating to Inland Waterways Trust Fund 
              financing rate.
Sec. 206. Certified professional employer organizations.
Sec. 207. Exclusion of dividends from controlled foreign corporations 
              from the definition of personal holding company income 
              for purposes of the personal holding company rules.
Sec. 208. Inflation adjustment for certain civil penalties under the 
              Internal Revenue Code of 1986.
Sec. 209. Increase in continuous levy.

                    TITLE I--QUALIFIED ABLE PROGRAMS

     SEC. 101. PURPOSES.

       The purposes of this title are as follows:
       (1) To encourage and assist individuals and families in 
     saving private funds for the purpose of supporting 
     individuals with disabilities to maintain health, 
     independence, and quality of life.
       (2) To provide secure funding for disability-related 
     expenses on behalf of designated beneficiaries with 
     disabilities that will supplement, but not supplant, benefits 
     provided through private insurance, the Medicaid program 
     under

[[Page 16489]]

     title XIX of the Social Security Act, the supplemental 
     security income program under title XVI of such Act, the 
     beneficiary's employment, and other sources.

     SEC. 102. QUALIFIED ABLE PROGRAMS.

       (a) In General.--Subchapter F of chapter 1 is amended by 
     inserting after section 529 the following new section:

     ``SEC. 529A. QUALIFIED ABLE PROGRAMS.

       ``(a) General Rule.--A qualified ABLE program shall be 
     exempt from taxation under this subtitle. Notwithstanding the 
     preceding sentence, such program shall be subject to the 
     taxes imposed by section 511 (relating to imposition of tax 
     on unrelated business income of charitable organizations).
       ``(b) Qualified ABLE Program.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified ABLE program' means 
     a program established and maintained by a State, or agency or 
     instrumentality thereof--
       ``(A) under which a person may make contributions for a 
     taxable year, for the benefit of an individual who is an 
     eligible individual for such taxable year, to an ABLE account 
     which is established for the purpose of meeting the qualified 
     disability expenses of the designated beneficiary of the 
     account,
       ``(B) which limits a designated beneficiary to 1 ABLE 
     account for purposes of this section,
       ``(C) which allows for the establishment of an ABLE account 
     only for a designated beneficiary who is a resident of such 
     State or a resident of a contracting State, and
       ``(D) which meets the other requirements of this section.
       ``(2) Cash contributions.--A program shall not be treated 
     as a qualified ABLE program unless it provides that no 
     contribution will be accepted--
       ``(A) unless it is in cash, or
       ``(B) except in the case of contributions under subsection 
     (c)(1)(C), if such contribution to an ABLE account would 
     result in aggregate contributions from all contributors to 
     the ABLE account for the taxable year exceeding the amount in 
     effect under section 2503(b) for the calendar year in which 
     the taxable year begins.

     For purposes of this paragraph, rules similar to the rules of 
     section 408(d)(4) (determined without regard to subparagraph 
     (B) thereof) shall apply.
       ``(3) Separate accounting.--A program shall not be treated 
     as a qualified ABLE program unless it provides separate 
     accounting for each designated beneficiary.
       ``(4) Limited investment direction.--A program shall not be 
     treated as a qualified ABLE program unless it provides that 
     any designated beneficiary under such program may, directly 
     or indirectly, direct the investment of any contributions to 
     the program (or any earnings thereon) no more than 2 times in 
     any calendar year.
       ``(5) No pledging of interest as security.--A program shall 
     not be treated as a qualified ABLE program if it allows any 
     interest in the program or any portion thereof to be used as 
     security for a loan.
       ``(6) Prohibition on excess contributions.--A program shall 
     not be treated as a qualified ABLE program unless it provides 
     adequate safeguards to prevent aggregate contributions on 
     behalf of a designated beneficiary in excess of the limit 
     established by the State under section 529(b)(6). For 
     purposes of the preceding sentence, aggregate contributions 
     include contributions under any prior qualified ABLE program 
     of any State or agency or instrumentality thereof.
       ``(c) Tax Treatment.--
       ``(1) Distributions.--
       ``(A) In general.--Any distribution under a qualified ABLE 
     program shall be includible in the gross income of the 
     distributee in the manner as provided under section 72 to the 
     extent not excluded from gross income under any other 
     provision of this chapter.
       ``(B) Distributions for qualified disability expenses.--For 
     purposes of this paragraph, if distributions from a qualified 
     ABLE program--
       ``(i) do not exceed the qualified disability expenses of 
     the designated beneficiary, no amount shall be includible in 
     gross income, and
       ``(ii) in any other case, the amount otherwise includible 
     in gross income shall be reduced by an amount which bears the 
     same ratio to such amount as such expenses bear to such 
     distributions.
       ``(C) Change in designated beneficiaries or programs.--
       ``(i) Rollovers from able accounts.--Subparagraph (A) shall 
     not apply to any amount paid or distributed from an ABLE 
     account to the extent that the amount received is paid, not 
     later than the 60th day after the date of such payment or 
     distribution, into another ABLE account for the benefit of 
     the same designated beneficiary or an eligible individual who 
     is a family member of the designated beneficiary.
       ``(ii) Change in designated beneficiaries.--Any change in 
     the designated beneficiary of an interest in a qualified ABLE 
     program during a taxable year shall not be treated as a 
     distribution for purposes of subparagraph (A) if the new 
     beneficiary is an eligible individual for such taxable year 
     and a member of the family of the former beneficiary.
       ``(iii) Limitation on certain rollovers.--Clause (i) shall 
     not apply to any transfer if such transfer occurs within 12 
     months from the date of a previous transfer to any qualified 
     ABLE program for the benefit of the designated beneficiary.
       ``(D) Operating rules.--For purposes of applying section 
     72--
       ``(i) except to the extent provided by the Secretary, all 
     distributions during a taxable year shall be treated as one 
     distribution, and
       ``(ii) except to the extent provided by the Secretary, the 
     value of the contract, income on the contract, and investment 
     in the contract shall be computed as of the close of the 
     calendar year in which the taxable year begins.
       ``(2) Gift tax rules.--For purposes of chapters 12 and 13--
       ``(A) Contributions.--Any contribution to a qualified ABLE 
     program on behalf of any designated beneficiary--
       ``(i) shall be treated as a completed gift to such 
     designated beneficiary which is not a future interest in 
     property, and
       ``(ii) shall not be treated as a qualified transfer under 
     section 2503(e).
       ``(B) Treatment of distributions.--In no event shall a 
     distribution from an ABLE account to such account's 
     designated beneficiary be treated as a taxable gift.
       ``(C) Treatment of transfer to new designated 
     beneficiary.--The taxes imposed by chapters 12 and 13 shall 
     not apply to a transfer by reason of a change in the 
     designated beneficiary under subsection (c)(1)(C).
       ``(3) Additional tax for distributions not used for 
     disability expenses.--
       ``(A) In general.--The tax imposed by this chapter for any 
     taxable year on any taxpayer who receives a distribution from 
     a qualified ABLE program which is includible in gross income 
     shall be increased by 10 percent of the amount which is so 
     includible.
       ``(B) Exception.--Subparagraph (A) shall not apply if the 
     payment or distribution is made to a beneficiary (or to the 
     estate of the designated beneficiary) on or after the death 
     of the designated beneficiary.
       ``(C) Contributions returned before certain date.--
     Subparagraph (A) shall not apply to the distribution of any 
     contribution made during a taxable year on behalf of the 
     designated beneficiary if--
       ``(i) such distribution is received on or before the day 
     prescribed by law (including extensions of time) for filing 
     such designated beneficiary's return for such taxable year, 
     and
       ``(ii) such distribution is accompanied by the amount of 
     net income attributable to such excess contribution.

     Any net income described in clause (ii) shall be included in 
     gross income for the taxable year in which such excess 
     contribution was made.
       ``(4) Loss of able account treatment.--If an ABLE account 
     is established for a designated beneficiary, no account 
     subsequently established for such beneficiary shall be 
     treated as an ABLE account. The preceding sentence shall not 
     apply in the case of an account established for purposes of a 
     rollover described in paragraph (1)(C)(i) of this section if 
     the transferor account is closed as of the end of the 60th 
     day referred to in paragraph (1)(C)(i).
       ``(d) Reports.--
       ``(1) In general.--Each officer or employee having control 
     of the qualified ABLE program or their designee shall make 
     such reports regarding such program to the Secretary and to 
     designated beneficiaries with respect to contributions, 
     distributions, the return of excess contributions, and such 
     other matters as the Secretary may require.
       ``(2) Certain aggregated information.--For research 
     purposes, the Secretary shall make available to the public 
     reports containing aggregate information, by diagnosis and 
     other relevant characteristics, on contributions and 
     distributions from the qualified ABLE program. In carrying 
     out the preceding sentence an item may not be made available 
     to the public if such item can be associated with, or 
     otherwise identify, directly or indirectly, a particular 
     individual.
       ``(3) Notice of establishment of able account.--A qualified 
     ABLE program shall submit a notice to the Secretary upon the 
     establishment of an ABLE account. Such notice shall contain 
     the name and State of residence of the designated beneficiary 
     and such other information as the Secretary may require.
       ``(4) Electronic distribution statements.--For purposes of 
     section 4 of the Achieving a Better Life Experience Act of 
     2014, States shall submit electronically on a monthly basis 
     to the Commissioner of Social Security, in the manner 
     specified by the Commissioner, statements on relevant 
     distributions and account balances from all ABLE accounts.
       ``(5) Requirements.--The reports and notices required by 
     paragraphs (1), (2), and (3) shall be filed at such time and 
     in such manner and furnished to such individuals at such time 
     and in such manner as may be required by the Secretary.
       ``(e) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Eligible individual.--An individual is an eligible 
     individual for a taxable year if during such taxable year--
       ``(A) the individual is entitled to benefits based on 
     blindness or disability under title II or XVI of the Social 
     Security Act, and such blindness or disability occurred 
     before the date on which the individual attained age 26, or
       ``(B) a disability certification with respect to such 
     individual is filed with the Secretary for such taxable year.
       ``(2) Disability certification.--
       ``(A) In general.--The term `disability certification' 
     means, with respect to an individual, a certification to the 
     satisfaction of the Secretary by the individual or the parent 
     or guardian of the individual that--
       ``(i) certifies that--

       ``(I) the individual has a medically determinable physical 
     or mental impairment, which

[[Page 16490]]

     results in marked and severe functional limitations, and 
     which can be expected to result in death or which has lasted 
     or can be expected to last for a continuous period of not 
     less than 12 months, or is blind (within the meaning of 
     section 1614(a)(2) of the Social Security Act), and
       ``(II) such blindness or disability occurred before the 
     date on which the individual attained age 26, and

       ``(ii) includes a copy of the individual's diagnosis 
     relating to the individual's relevant impairment or 
     impairments, signed by a physician meeting the criteria of 
     section 1861(r)(1) of the Social Security Act.
       ``(B) Restriction on use of certification.--No inference 
     may be drawn from a disability certification for purposes of 
     establishing eligibility for benefits under title II, XVI, or 
     XIX of the Social Security Act.
       ``(3) Designated beneficiary.--The term `designated 
     beneficiary' in connection with an ABLE account established 
     under a qualified ABLE program means the eligible individual 
     who established an ABLE account and is the owner of such 
     account.
       ``(4) Member of family.--The term `member of the family' 
     means, with respect to any designated beneficiary, an 
     individual who bears a relationship to such beneficiary which 
     is described in subparagraph section 152(d)(2)(B). For 
     purposes of the preceding sentence, a rule similar to the 
     rule of section 152(f)(1)(B) shall apply.
       ``(5) Qualified disability expenses.--The term `qualified 
     disability expenses' means any expenses related to the 
     eligible individual's blindness or disability which are made 
     for the benefit of an eligible individual who is the 
     designated beneficiary, including the following expenses: 
     education, housing, transportation, employment training and 
     support, assistive technology and personal support services, 
     health, prevention and wellness, financial management and 
     administrative services, legal fees, expenses for oversight 
     and monitoring, funeral and burial expenses, and other 
     expenses, which are approved by the Secretary under 
     regulations and consistent with the purposes of this section.
       ``(6) ABLE account.--The term `ABLE account' means an 
     account established by an eligible individual, owned by such 
     eligible individual, and maintained under a qualified ABLE 
     program.
       ``(7) Contracting state.--The term `contracting State' 
     means a State without a qualified ABLE program which has 
     entered into a contract with a State with a qualified ABLE 
     program to provide residents of the contracting State access 
     to a qualified ABLE program.
       ``(f) Transfer to State.--Subject to any outstanding 
     payments due for qualified disability expenses, upon the 
     death of the designated beneficiary, all amounts remaining in 
     the qualified ABLE account not in excess of the amount equal 
     to the total medical assistance paid for the designated 
     beneficiary after the establishment of the account, net of 
     any premiums paid from the account or paid by or on behalf of 
     the beneficiary to a Medicaid Buy-In program under any State 
     Medicaid plan established under title XIX of the Social 
     Security Act, shall be distributed to such State upon filing 
     of a claim for payment by such State. For purposes of this 
     paragraph, the State shall be a creditor of an ABLE account 
     and not a beneficiary. Subsection (c)(3) shall not apply to a 
     distribution under the preceding sentence.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as the Secretary determines 
     necessary or appropriate to carry out the purposes of this 
     section, including regulations--
       ``(1) to enforce the 1 ABLE account per eligible individual 
     limit,
       ``(2) providing for the information required to be 
     presented to open an ABLE account,
       ``(3) to generally define qualified disability expenses,
       ``(4) developed in consultation with the Commissioner of 
     Social Security, relating to disability certifications and 
     determinations of disability, including those conditions 
     deemed to meet the requirements of subsection (e)(1)(B),
       ``(5) to prevent fraud and abuse with respect to amounts 
     claimed as qualified disability expenses,
       ``(6) under chapters 11, 12, and 13 of this title, and
       ``(7) to allow for transfers from one ABLE account to 
     another ABLE account.''.
       (b) Tax on Excess Contributions.--
       (1) In general.--Subsection (a) of section 4973 (relating 
     to tax on excess contributions to certain tax-favored 
     accounts and annuities) is amended by striking ``or'' at the 
     end of paragraph (4), by inserting ``or'' at the end of 
     paragraph (5), and by inserting after paragraph (5) the 
     following new paragraph:
       ``(6) an ABLE account (within the meaning of section 
     529A),''.
       (2) Excess contribution.--Section 4973 is amended by adding 
     at the end the following new subsection:
       ``(h) Excess Contributions to ABLE Account.--For purposes 
     of this section--
       ``(1) In general.--In the case of an ABLE account (within 
     the meaning of section 529A), the term `excess contributions' 
     means the amount by which the amount contributed for the 
     taxable year to such account (other than contributions under 
     section 529A(c)(1)(C)) exceeds the contribution limit under 
     section 529A(b)(2)(B).
       ``(2) Special rule.--For purposes of this subsection, any 
     contribution which is distributed out of the ABLE account in 
     a distribution to which the last sentence of section 
     529A(b)(2) applies shall be treated as an amount not 
     contributed.''.
       (c) Penalty for Failure to File Reports.--Section 
     6693(a)(2) is amended by striking ``and'' at the end of 
     subparagraph (D), by redesignating subparagraph (E) as 
     subparagraph (F), and by inserting after subparagraph (D) the 
     following:
       ``(E) section 529A(d) (relating to qualified ABLE 
     programs), and''.
       (d) Records.--Section 552a(a)(8)(B) of title 5, United 
     States Code, is amended--
       (1) in clause (viii), by striking ``or'' at the end;
       (2) in clause (ix), by adding ``or'' at the end; and
       (3) by adding at the end the following new clause:
       ``(x) matches performed pursuant to section 3(d)(4) of the 
     Achieving a Better Life Experience Act of 2014;''.
       (e) Other Conforming Amendments.--
       (1) Section 26(b)(2) is amended by striking ``and'' at the 
     end of subparagraph (W), by striking the period at the end of 
     subparagraph (X) and inserting ``, and'', and by inserting 
     after subparagraph (X) the following:
       ``(Y) section 529A(c)(3)(A) (relating to additional tax on 
     ABLE account distributions not used for qualified disability 
     expenses).''.
       (2) Section 877A is amended--
       (A) in subsection (e)(2) by inserting ``a qualified ABLE 
     program (as defined in section 529A),'' after ``529),'', and
       (B) in subsection (g)(6) by inserting ``529A(c)(3),'' after 
     ``529(c)(6),''.
       (3) Section 4965(c) is amended by striking ``or'' at the 
     end of paragraph (6), by striking the period at the end of 
     paragraph (7) and inserting ``, or'', and by inserting after 
     paragraph (7) the following new paragraph:
       ``(8) a program described in section 529A.''.
       (4) The heading for part VIII of subchapter F of chapter 1 
     is amended by striking ``higher education'' and inserting 
     ``certain''.
       (5) The item in the table of parts for subchapter F of 
     chapter 1 relating to part VIII is amended to read as 
     follows:

               ``Part VIII. Certain Savings Entities.''.

       (6) The table of sections for part VIII of subchapter F of 
     chapter 1 is amended by inserting after the item relating to 
     section 529 the following new item:

``Sec. 529A. Qualified ABLE programs.''.
       (7) Paragraph (4) of section 1027(g) of the Consumer 
     Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4)) is 
     amended by inserting ``, 529A'' after ``529''.
       (f) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2014.
       (2) Regulations.--The Secretary of the Treasury (or the 
     Secretary's designee) shall promulgate the regulations or 
     other guidance required under section 529A(g) of the Internal 
     Revenue Code of 1986, as added by subsection (a), not later 
     than 6 months after the date of the enactment of this Act.

     SEC. 103. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN FEDERAL 
                   PROGRAMS.

       (a) Account Funds Disregarded for Purposes of Certain Other 
     Means-Tested Federal Programs.--Notwithstanding any other 
     provision of Federal law that requires consideration of 1 or 
     more financial circumstances of an individual, for the 
     purpose of determining eligibility to receive, or the amount 
     of, any assistance or benefit authorized by such provision to 
     be provided to or for the benefit of such individual, any 
     amount (including earnings thereon) in the ABLE account 
     (within the meaning of section 529A of the Internal Revenue 
     Code of 1986) of such individual, any contributions to the 
     ABLE account of the individual, and any distribution for 
     qualified disability expenses (as defined in subsection 
     (e)(5) of such section) shall be disregarded for such purpose 
     with respect to any period during which such individual 
     maintains, makes contributions to, or receives distributions 
     from such ABLE account, except that, in the case of the 
     supplemental security income program under title XVI of the 
     Social Security Act--
       (1) a distribution for housing expenses (within the meaning 
     of such subsection) shall not be so disregarded, and
       (2) in the case of such program, any amount (including such 
     earnings) in such ABLE account shall be considered a resource 
     of the designated beneficiary to the extent that such amount 
     exceeds $100,000.
       (b) Suspension of SSI Benefits During Periods of Excessive 
     Account Funds.--
       (1) In general.--The benefits of an individual under the 
     supplemental security income program under title XVI of the 
     Social Security Act shall not be terminated, but shall be 
     suspended, by reason of excess resources of the individual 
     attributable to an amount in the ABLE account (within the 
     meaning of section 529A of the Internal Revenue Code of 1986) 
     of the individual not disregarded under subsection (a) of 
     this section.
       (2) No impact on medicaid eligibility.--An individual who 
     would be receiving payment of such supplemental security 
     income benefits but for the application of paragraph (1) 
     shall be treated for purposes of title XIX of the Social 
     Security Act as if the individual continued to be receiving 
     payment of such benefits.
       (c) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

[[Page 16491]]



     SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANKRUPTCY.

       (a) Exclusion From Property of the Estate.--Section 541(b) 
     of the title 11, United States Code, is amended--
       (1) in paragraph (8), by striking ``or'' at the end;
       (2) in paragraph (9), by striking the period at the end and 
     inserting a semicolon and ``or''; and
       (3) by inserting after paragraph (9) the following:
       ``(10) funds placed in an account of a qualified ABLE 
     program (as defined in section 529A(b) of the Internal 
     Revenue Code of 1986) not later than 365 days before the date 
     of the filing of the petition in a case under this title, 
     but--
       ``(A) only if the designated beneficiary of such account 
     was a child, stepchild, grandchild, or stepgrandchild of the 
     debtor for the taxable year for which funds were placed in 
     such account;
       ``(B) only to the extent that such funds--
       ``(i) are not pledged or promised to any entity in 
     connection with any extension of credit; and
       ``(ii) are not excess contributions (as described in 
     section 4973(h) of the Internal Revenue Code of 1986); and
       ``(C) in the case of funds placed in all such accounts 
     having the same designated beneficiary not earlier than 720 
     days nor later than 365 days before such date, only so much 
     of such funds as does not exceed $6,225.''.
       (b) Debtor's Monthly Expenses.--Section 
     707(b)(2)(A)(ii)(II) of title 11, United States Code, is 
     amended by adding at the end ``Such monthly expenses may 
     include, if applicable, contributions to an account of a 
     qualified ABLE program to the extent such contributions are 
     not excess contributions (as described in section 4973(h) of 
     the Internal Revenue Code of 1986) and if the designated 
     beneficiary of such account is a child, stepchild, 
     grandchild, or stepgrandchild of the debtor.''.
       (c) Record of Debtor's Interest.--Section 521(c) of title 
     11, United States Code, is amended by inserting ``, an 
     interest in an account in a qualified ABLE program (as 
     defined in section 529A(b) of such Code,'' after ``Internal 
     Revenue Code of 1986)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to cases commenced under title 11, 
     United States Code, on or after the date of the enactment of 
     this Act.

     SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS.

       (a) Amendments Relating to Investment Direction Rule for 
     529 Plans.--
       (1) Paragraph (4) of section 529(b) is amended by striking 
     ``may not directly or indirectly'' and all that follows and 
     inserting ``may, directly or indirectly, direct the 
     investment of any contributions to the program (or any 
     earnings thereon) no more than 2 times in any calendar 
     year.''.
       (2) The heading of paragraph (4) of section 529(b)is 
     amended by striking ``No'' and inserting ``Limited''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2014.

                           TITLE II--OFFSETS

     SEC. 201. CORRECTION TO WORKERS COMPENSATION OFFSET AGE.

       (a) Retirement Age.--Section 224(a) of the Social Security 
     Act (42 U.S.C. 424a(a)) is amended, in the matter preceding 
     paragraph (1), by striking ``the age of 65'' and inserting 
     ``retirement age (as defined in section 216(l)(1))''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to any individual who attains 65 
     years of age on or after the date that is 12 months after the 
     date of the enactment of this Act.

     SEC. 202. ACCELERATED APPLICATION OF RELATIVE VALUE TARGETS 
                   FOR MISVALUED SERVICES IN THE MEDICARE 
                   PHYSICIAN FEE SCHEDULE.

       Section 1848(c) of the Social Security Act (42 U.S.C. 
     1395w-4(c)) is amended--
       (1) in subclause (VIII) of paragraph (2)(B)(v), as added by 
     section 220(d)(2) of the Protecting Access to Medicare Act of 
     2014 (Public Law 113-93)--
       (A) by striking ``2017'' and inserting ``2016''; and
       (B) by redesignating such subclause as subclause (IX);
       (2) in paragraph (2)(O)--
       (A) in the matter preceding clause (i), by striking ``2017 
     through 2020'' and inserting ``2016 through 2018'';
       (B) in clause (iii), by striking ``2017'' and inserting 
     ``2016''; and
       (C) in clause (v), by inserting ``(or, for 2016, 1.0 
     percent)'' after ``0.5 percent''; and
       (3) in paragraph (7), by striking ``2017'' and inserting 
     ``2016''.

     SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION SYSTEMS IN 
                   MEDICARE PARTS B AND D.

       Section 1834(a)(1) of the Social Security Act (42 U.S.C. 
     1395m(a)(1)) is amended by adding at the end the following 
     new subparagraph:
       ``(I) Treatment of vacuum erection systems.--Effective for 
     items and services furnished on and after July 1, 2015, 
     vacuum erection systems described as prosthetic devices 
     described in section 1861(s)(8) shall be treated in the same 
     manner as erectile dysfunction drugs are treated for purposes 
     of section 1860D-2(e)(2)(A).''.

     SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY 
                   POLICY UNDER MEDICARE ESRD PROSPECTIVE PAYMENT 
                   SYSTEM.

       Section 632(b)(1) of the American Taxpayer Relief Act of 
     2012 (42 U.S.C. 1395rr note), as amended by section 217(a)(1) 
     of the Protecting Access to Medicare Act of 2014 (Public Law 
     113-93), is amended by striking ``2024'' and inserting 
     ``2025''.

     SEC. 205. MODIFICATION RELATING TO INLAND WATERWAYS TRUST 
                   FUND FINANCING RATE.

       (a) In General.--Section 4042(b)(2)(A) is amended to read 
     as follows:
       ``(A) The Inland Waterways Trust Fund financing rate is 29 
     cents per gallon.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to fuel used after March 31, 2015.

     SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

       (a) Employment Taxes.--Chapter 25 is amended by adding at 
     the end the following new section:

     ``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

       ``(a) General Rules.--For purposes of the taxes, and other 
     obligations, imposed by this subtitle--
       ``(1) a certified professional employer organization shall 
     be treated as the employer (and no other person shall be 
     treated as the employer) of any work site employee performing 
     services for any customer of such organization, but only with 
     respect to remuneration remitted by such organization to such 
     work site employee, and
       ``(2) the exemptions, exclusions, definitions, and other 
     rules which are based on type of employer and which would 
     (but for paragraph (1)) apply shall apply with respect to 
     such taxes imposed on such remuneration.
       ``(b) Successor Employer Status.--For purposes of sections 
     3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
       ``(1) a certified professional employer organization 
     entering into a service contract with a customer with respect 
     to a work site employee shall be treated as a successor 
     employer and the customer shall be treated as a predecessor 
     employer during the term of such service contract, and
       ``(2) a customer whose service contract with a certified 
     professional employer organization is terminated with respect 
     to a work site employee shall be treated as a successor 
     employer and the certified professional employer organization 
     shall be treated as a predecessor employer.
       ``(c) Liability of Certified Professional Employer 
     Organization.--Solely for purposes of its liability for the 
     taxes and other obligations imposed by this subtitle--
       ``(1) a certified professional employer organization shall 
     be treated as the employer of any individual (other than a 
     work site employee or a person described in subsection (f)) 
     who is performing services covered by a contract meeting the 
     requirements of section 7705(e)(2), but only with respect to 
     remuneration remitted by such organization to such 
     individual, and
       ``(2) the exemptions, exclusions, definitions, and other 
     rules which are based on type of employer and which would 
     (but for paragraph (1)) apply shall apply with respect to 
     such taxes imposed on such remuneration.
       ``(d) Treatment of Credits.--
       ``(1) In general.--For purposes of any credit specified in 
     paragraph (2)--
       ``(A) such credit with respect to a work site employee 
     performing services for the customer applies to the customer, 
     not the certified professional employer organization,
       ``(B) the customer, and not the certified professional 
     employer organization, shall take into account wages and 
     employment taxes--
       ``(i) paid by the certified professional employer 
     organization with respect to the work site employee, and
       ``(ii) for which the certified professional employer 
     organization receives payment from the customer, and
       ``(C) the certified professional employer organization 
     shall furnish the customer and the Secretary with any 
     information necessary for the customer to claim such credit.
       ``(2) Credits specified.--A credit is specified in this 
     paragraph if such credit is allowed under--
       ``(A) section 41 (credit for increasing research activity),
       ``(B) section 45A (Indian employment credit),
       ``(C) section 45B (credit for portion of employer social 
     security taxes paid with respect to employee cash tips),
       ``(D) section 45C (clinical testing expenses for certain 
     drugs for rare diseases or conditions),
       ``(E) section 45R (employee health insurance expenses of 
     small employers),
       ``(F) section 51 (work opportunity credit),
       ``(G) section 1396 (empowerment zone employment credit), 
     and
       ``(H) any other section as provided by the Secretary.
       ``(e) Special Rule for Related Party.--This section shall 
     not apply in the case of a customer which bears a 
     relationship to a certified professional employer 
     organization described in section 267(b) or 707(b). For 
     purposes of the preceding sentence, such sections shall be 
     applied by substituting `10 percent' for `50 percent'.
       ``(f) Special Rule for Certain Individuals.--For purposes 
     of the taxes imposed under this subtitle, an individual with 
     net earnings from self-employment derived from the customer's 
     trade or business (including a partner in a partnership that 
     is a customer) is not a work site employee with respect to 
     remuneration paid by a certified professional employer 
     organization.
       ``(g) Reporting Requirements and Obligations.--The 
     Secretary shall develop such reporting and recordkeeping 
     rules, regulations, and

[[Page 16492]]

     procedures as the Secretary determines necessary or 
     appropriate to ensure compliance with this title by certified 
     professional employer organizations or persons that have been 
     so certified. Such rules shall include--
       ``(1) notification of the Secretary in such manner as the 
     Secretary shall prescribe in the case of the commencement or 
     termination of a service contract described in section 
     7705(e)(2) between such a person and a customer, and the 
     employer identification number of such customer,
       ``(2) such information as the Secretary determines 
     necessary for the customer to claim the credits identified in 
     subsection (d) and the manner in which such information is to 
     be provided, as prescribed by the Secretary, and
       ``(3) such other information as the Secretary determines is 
     essential to promote compliance with respect to the credits 
     identified in subsection (d) and section 3302, and

     shall be designed in a manner which streamlines, to the 
     extent possible, the application of requirements of this 
     section and section 7705, the exchange of information between 
     a certified professional employer organization and its 
     customers, and the reporting and recordkeeping obligations of 
     the certified professional employer organization.

       ``(h) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Certified Professional Employer Organization Defined.--
     Chapter 79 is amended by adding at the end the following new 
     section:

     ``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

       ``(a) In General.--For purposes of this title, the term 
     `certified professional employer organization' means a person 
     who applies to be treated as a certified professional 
     employer organization for purposes of section 3511 and has 
     been certified by the Secretary as meeting the requirements 
     of subsection (b).
       ``(b) Certification Requirements.--A person meets the 
     requirements of this subsection if such person--
       ``(1) demonstrates that such person (and any owner, 
     officer, and other persons as may be specified in 
     regulations) meets such requirements as the Secretary shall 
     establish, including requirements with respect to tax status, 
     background, experience, business location, and annual 
     financial audits,
       ``(2) agrees that it will satisfy the bond and independent 
     financial review requirements of subsection (c) on an ongoing 
     basis,
       ``(3) agrees that it will satisfy such reporting 
     obligations as may be imposed by the Secretary,
       ``(4) computes its taxable income using an accrual method 
     of accounting unless the Secretary approves another method,
       ``(5) agrees to verify on such periodic basis as the 
     Secretary may prescribe that it continues to meet the 
     requirements of this subsection, and
       ``(6) agrees to notify the Secretary in writing within such 
     time as the Secretary may prescribe of any change that 
     materially affects the continuing accuracy of any agreement 
     or information that was previously made or provided under 
     this subsection.
       ``(c) Bond and Independent Financial Review.--
       ``(1) In general.--An organization meets the requirements 
     of this paragraph if such organization--
       ``(A) meets the bond requirements of paragraph (2), and
       ``(B) meets the independent financial review requirements 
     of paragraph (3).
       ``(2) Bond.--
       ``(A) In general.--A certified professional employer 
     organization meets the requirements of this paragraph if the 
     organization has posted a bond for the payment of taxes under 
     subtitle C (in a form acceptable to the Secretary) that is in 
     an amount at least equal to the amount specified in 
     subparagraph (B).
       ``(B) Amount of bond.--For the period April 1 of any 
     calendar year through March 31 of the following calendar 
     year, the amount of the bond required is equal to the greater 
     of--
       ``(i) 5 percent of the organization's liability under 
     section 3511 for taxes imposed by subtitle C during the 
     preceding calendar year (but not to exceed $1,000,000), or
       ``(ii) $50,000.
       ``(3) Independent financial review requirements.--A 
     certified professional employer organization meets the 
     requirements of this paragraph if such organization--
       ``(A) has, as of the most recent audit date, caused to be 
     prepared and provided to the Secretary (in such manner as the 
     Secretary may prescribe) an opinion of an independent 
     certified public accountant as to whether the certified 
     professional employer organization's financial statements are 
     presented fairly in accordance with generally accepted 
     accounting principles, and
       ``(B) provides to the Secretary an assertion regarding 
     Federal employment tax payments and an examination level 
     attestation on such assertion from an independent certified 
     public accountant not later than the last day of the second 
     month beginning after the end of each calendar quarter.

     Such assertion shall state that the organization has withheld 
     and made deposits of all taxes imposed by chapters 21, 22, 
     and 24 in accordance with regulations imposed by the 
     Secretary for such calendar quarter and such examination 
     level attestation shall state that such assertion is fairly 
     stated, in all material respects.
       ``(4) Controlled group rules.--For purposes of the 
     requirements of paragraphs (2) and (3), all certified 
     professional employer organizations that are members of a 
     controlled group within the meaning of sections 414(b) and 
     (c) shall be treated as a single organization.
       ``(5) Failure to file assertion and attestation.--If the 
     certified professional employer organization fails to file 
     the assertion and attestation required by paragraph (3) with 
     respect to any calendar quarter, then the requirements of 
     paragraph (3) with respect to such failure shall be treated 
     as not satisfied for the period beginning on the due date for 
     such attestation.
       ``(6) Audit date.--For purposes of paragraph (3)(A), the 
     audit date shall be six months after the completion of the 
     organization's fiscal year.
       ``(d) Suspension and Revocation Authority.--The Secretary 
     may suspend or revoke a certification of any person under 
     subsection (b) for purposes of section 3511 if the Secretary 
     determines that such person is not satisfying the agreements 
     or requirements of subsections (b) or (c), or fails to 
     satisfy applicable accounting, reporting, payment, or deposit 
     requirements.
       ``(e) Work Site Employee.--For purposes of this title--
       ``(1) In general.--The term `work site employee' means, 
     with respect to a certified professional employer 
     organization, an individual who--
       ``(A) performs services for a customer pursuant to a 
     contract which is between such customer and the certified 
     professional employer organization and which meets the 
     requirements of paragraph (2), and
       ``(B) performs services at a work site meeting the 
     requirements of paragraph (3).
       ``(2) Service contract requirements.--A contract meets the 
     requirements of this paragraph with respect to an individual 
     performing services for a customer if such contract is in 
     writing and provides that the certified professional employer 
     organization shall--
       ``(A) assume responsibility for payment of wages to such 
     individual, without regard to the receipt or adequacy of 
     payment from the customer for such services,
       ``(B) assume responsibility for reporting, withholding, and 
     paying any applicable taxes under subtitle C, with respect to 
     such individual's wages, without regard to the receipt or 
     adequacy of payment from the customer for such services,
       ``(C) assume responsibility for any employee benefits which 
     the service contract may require the certified professional 
     employer organization to provide, without regard to the 
     receipt or adequacy of payment from the customer for such 
     benefits,
       ``(D) assume responsibility for recruiting, hiring, and 
     firing workers in addition to the customer's responsibility 
     for recruiting, hiring, and firing workers,
       ``(E) maintain employee records relating to such 
     individual, and
       ``(F) agree to be treated as a certified professional 
     employer organization for purposes of section 3511 with 
     respect to such individual.
       ``(3) Work site coverage requirement.--The requirements of 
     this paragraph are met with respect to an individual if at 
     least 85 percent of the individuals performing services for 
     the customer at the work site where such individual performs 
     services are subject to 1 or more contracts with the 
     certified professional employer organization which meet the 
     requirements of paragraph (2) (but not taking into account 
     those individuals who are excluded employees within the 
     meaning of section 414(q)(5)).
       ``(f) Public Disclosure.--The Secretary shall make 
     available to the public the name and address of--
       ``(1) each person certified as a professional employer 
     organization under subsection (a), and
       ``(2) each person whose certification as a professional 
     employer organization is suspended or revoked under 
     subsection (d).
       ``(g) Determination of Employment Status.--Except to the 
     extent necessary for purposes of section 3511, nothing in 
     this section shall be construed to affect the determination 
     of who is an employee or employer for purposes of this title.
       ``(h) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (c) Conforming Amendments.--
       (1) Section 3302 is amended by adding at the end the 
     following new subsection:
       ``(h) Treatment of Certified Professional Employer 
     Organizations.--If a certified professional employer 
     organization (as defined in section 7705), or a customer of 
     such organization, makes a contribution to the State's 
     unemployment fund with respect to wages paid to a work site 
     employee, such certified professional employer organization 
     shall be eligible for the credits available under this 
     section with respect to such contribution.''.
       (2) Section 3303(a) is amended--
       (A) by striking the period at the end of paragraph (3) and 
     inserting ``; and'' and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) if the taxpayer is a certified professional employer 
     organization (as defined in section 7705) that is treated as 
     the employer under section 3511, such certified professional 
     employer organization is permitted to collect and remit, in 
     accordance with paragraphs (1), (2), and (3), contributions 
     during the taxable year to the State unemployment fund with 
     respect to a work site employee.'', and
       (B) in the last sentence--
       (i) by striking ``paragraphs (1), (2), and (3)'' and 
     inserting ``paragraphs (1), (2), (3), and (4)'', and

[[Page 16493]]

       (ii) by striking ``paragraph (1), (2), or (3)'' and 
     inserting ``paragraph (1), (2), (3), or (4)''.
       (3) Section 6053(c) is amended by adding at the end the 
     following new paragraph:
       ``(8) Certified professional employer organizations.--For 
     purposes of any report required by this subsection, in the 
     case of a certified professional employer organization that 
     is treated under section 3511 as the employer of a work site 
     employee, the customer with respect to whom a work site 
     employee performs services shall be the employer for purposes 
     of reporting under this section and the certified 
     professional employer organization shall furnish to the 
     customer and the Secretary any information the Secretary 
     prescribes as necessary to complete such reporting no later 
     than such time as the Secretary shall prescribe.''.
       (4) Section 6652 is amended by adding at the end the 
     following new subsection:
       ``(n) Failure to Make Reports Required Under Sections 3511, 
     6053(c)(8), and 7705.--In the case of a failure to make a 
     report required under section 3511, 6053(c)(8), or 7705 which 
     contains the information required by such section on the date 
     prescribed therefor (determined with regard to any extension 
     of time for filing), there shall be paid (on notice and 
     demand by the Secretary and in the same manner as tax) by the 
     person failing to make such report, an amount equal to $50 
     for each report with respect to which there was such a 
     failure. In the case of any failure due to negligence or 
     intentional disregard the preceding sentence shall be applied 
     by substituting `$100' for `$50'.''.
       (d) Clerical Amendments.--
       (1) The table of sections for chapter 25 is amended by 
     adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations.''.
       (2) The table of sections for chapter 79 is amended by 
     inserting after the item relating to section 7704 the 
     following new item:

``Sec. 7705. Certified professional employer organizations.''.
       (f) User Fees.--Section 7528(b) is amended by adding at the 
     end the following new paragraph:
       ``(4) Certified professional employer organizations.--The 
     fee charged under the program in connection with the 
     certification by the Secretary of a professional employer 
     organization under section 7705 shall be an annual fee not to 
     exceed $1,000 per year.''.
       (g) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to wages for services performed on or 
     after January 1 of the first calendar year beginning more 
     than 12 months after the date of the enactment of this Act.
       (2) Certification program.--The Secretary of the Treasury 
     shall establish the certification program described in 
     section 7705(b) of the Internal Revenue Code of 1986, as 
     added by subsection (b), not later than 6 months before the 
     effective date determined under paragraph (1).
       (h) No Inference.--Nothing contained in this section or the 
     amendments made by this section shall be construed to create 
     any inference with respect to the determination of who is an 
     employee or employer--
       (1) for Federal tax purposes (other than the purposes set 
     forth in the amendments made by this section), or
       (2) for purposes of any other provision of law.

     SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN 
                   CORPORATIONS FROM THE DEFINITION OF PERSONAL 
                   HOLDING COMPANY INCOME FOR PURPOSES OF THE 
                   PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Section 543(a)(1) is amended--
       (1) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively, and
       (2) by inserting after subparagraph (B) the following:
       ``(C) dividends received by a United States shareholder (as 
     defined in section 951(b)) from a controlled foreign 
     corporation (as defined in section 957(a)),''.
       (b) Effective Date.--The amendments made by this Act shall 
     apply to taxable years ending on or after the date of the 
     enactment of this Act.

     SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES 
                   UNDER THE INTERNAL REVENUE CODE OF 1986.

       (a) Failure to File Tax Return or Pay Tax.--Section 6651 is 
     amended by adding at the end the following new subsection:
       ``(i) Adjustment for Inflation.--
       ``(1) In general.--In the case of any return required to be 
     filed in a calendar year beginning after 2014, the $135 
     dollar amount under subsection (a) shall be increased by such 
     dollar amount multiplied by the cost-of-living adjustment 
     determined under section 1(f)(3) determined by substituting 
     `calendar year 2013' for `calendar year 1992' in subparagraph 
     (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph (1) 
     is not a multiple of $5, such amount shall be rounded to the 
     next lowest multiple of $5.''.
       (b) Failure to File Certain Information Returns, 
     Registration Statements, etc.--
       (1) In general.--Section 6652(c) is amended by adding at 
     the end the following new paragraph:
       ``(6) Adjustment for inflation.--
       ``(A) In general.--In the case of any failure relating to a 
     return required to be filed in a calendar year beginning 
     after 2014, each of the dollar amounts under paragraphs (1), 
     (2), and (3) shall be increased by such dollar amount 
     multiplied by the cost-of-living adjustment determined under 
     section 1(f)(3) determined by substituting `calendar year 
     2013' for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount adjusted under subparagraph 
     (A)--
       ``(i) is not less than $5,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(ii) is not described in clause (i) and is not a multiple 
     of $5, such amount shall be rounded to the next lowest 
     multiple of $5.''.
       (2) Conforming amendments.--
       (A) The last sentence of section 6652(c)(1)(A) is amended 
     by striking ``the first sentence of this subparagraph shall 
     be applied by substituting `$100' for `$20' and'' and 
     inserting ``in applying the first sentence of this 
     subparagraph, the amount of the penalty for each day during 
     which a failure continues shall be $100 in lieu of the amount 
     otherwise specified, and''.
       (B) Section 6652(c)(2)(C)(ii) is amended by striking ``the 
     first sentence of paragraph (1)(A)'' and all that follows and 
     inserting ``in applying the first sentence of paragraph 
     (1)(A), the amount of the penalty for each day during which a 
     failure continues shall be $100 in lieu of the amount 
     otherwise specified, and in lieu of applying the second 
     sentence of paragraph (1)(A), the maximum penalty under 
     paragraph (1)(A) shall not exceed $50,000, and''.
       (c) Other Assessable Penalties With Respect to the 
     Preparation of Tax Returns for Other Persons.--Section 6695 
     is amended by adding at the end the following new subsection:
       ``(h) Adjustment for Inflation.--
       ``(1) In general.--In the case of any failure relating to a 
     return or claim for refund filed in a calendar year beginning 
     after 2014, each of the dollar amounts under subsections (a), 
     (b), (c), (d), (e), (f), and (g) shall be increased by such 
     dollar amount multiplied by the cost-of-living adjustment 
     determined under section 1(f)(3) determined by substituting 
     `calendar year 2013' for `calendar year 1992' in subparagraph 
     (B) thereof.
       ``(2) Rounding.--If any amount adjusted under subparagraph 
     (A)--
       ``(A) is not less than $5,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in clause (i) and is not a multiple 
     of $5, such amount shall be rounded to the next lowest 
     multiple of $5.''.
       (d) Failure to File Partnership Return.--Section 6698 is 
     amended by adding at the end the following new subsection:
       ``(e) Adjustment for Inflation.--
       ``(1) In general.--In the case of any return required to be 
     filed in a calendar year beginning after 2014, the $195 
     dollar amount under subsection (b)(1) shall be increased by 
     such dollar amount multiplied by the cost-of-living 
     adjustment determined under section 1(f)(3) determined by 
     substituting `calendar year 2013' for `calendar year 1992' in 
     subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph (1) 
     is not a multiple of $5, such amount shall be rounded to the 
     next lowest multiple of $5.''.
       (e) Failure to File S Corporation Return.--Section 6699 is 
     amended by adding at the end the following new subsection:
       ``(e) Adjustment for Inflation.--
       ``(1) In general.--In the case of any return required to be 
     filed in a calendar year beginning after 2014, the $195 
     dollar amount under subsection (b)(1) shall be increased by 
     such dollar amount multiplied by the cost-of-living 
     adjustment determined under section 1(f)(3) determined by 
     substituting `calendar year 2013' for `calendar year 1992' in 
     subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph (1) 
     is not a multiple of $5, such amount shall be rounded to the 
     next lowest multiple of $5.''.
       (f) Failure to File Correct Information Returns.--Section 
     6721(f)(1) is amended by striking ``For each fifth calendar 
     year beginning after 2012'' and inserting ``In the case of 
     any failure relating to a return required to be filed in a 
     calendar year beginning after 2014''.
       (g) Failure to Furnish Correct Payee Statements.--Section 
     6722(f)(1) is amended by striking ``For each fifth calendar 
     year beginning after 2012'' and inserting ``In the case of 
     any failure relating to a statement required to be furnished 
     in a calendar year beginning after 2014''.
       (h) Effective Date.--The amendments made by this section 
     shall apply to returns required to be filed after December 
     31, 2014.

     SEC. 209. INCREASE IN CONTINUOUS LEVY.

       (a) In General.--Paragraph (3) of section 6331(h) is 
     amended by striking the period at the end and inserting ``and 
     by substituting `30 percent' for `15 percent' in the case of 
     any specified payment due to a Medicare provider or supplier 
     under title XVIII of the Social Security Act.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after 180 days after the date of 
     the enactment of this Act.

  The SPEAKER pro tempore. The gentleman from Michigan (Mr. Camp) and 
the gentleman from Michigan (Mr. Levin) each will control 30 minutes.
  The Chair recognizes the gentleman from Michigan (Mr. Camp).


                             General Leave

  Mr. CAMP. Mr. Speaker, I ask unanimous consent that all Members have 
5

[[Page 16494]]

legislative days in which to revise and extend their remarks and 
include extraneous material on H.R. 647.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, many of us know the joys and responsibilities of being a 
parent. We spend years ensuring our children have the skills and 
education to reach their full potential as they grow and enter 
adulthood.
  Many of these everyday responsibilities parents face can and often do 
increase tremendously when they have a child with a disability. Today, 
we have an opportunity to ease some of those challenges.
  The Achieving a Better Life Experience Act, commonly known as the 
ABLE Act, will allow those with disabilities and their caregivers to 
have the stability and security of knowing that they can save and 
provide for their education, housing, and medical expenses in the 
future.
  In short, the ABLE Act lets those with disabilities set up tax-free 
savings accounts to help them manage the costs of medical care, 
housing, transportation, and continued education. This will allow those 
who are on Medicaid and SSI to work, earn, and save more while still 
receiving these important benefits.
  It is important to note that these savings accounts will be available 
to all individuals with disabilities and their caretakers, not just 
those on Medicaid and SSI.
  This is a commonsense bill that will aid those with disabilities and 
their caretakers so they can live more fulfilling, happy lives and have 
the ability to provide for a better future.

                              {time}  1530

  At the same time, this will not burden taxpayers since the cost of 
the ABLE Act is fully offset by the savings provisions in this bill. 
These offsets are a balanced and fair mix of savings provisions that 
all Members should be able to support.
  This bill is supported by more than 70 leading organizations and 
health care professionals, including the American Association of People 
with Disabilities, the Autism Society of America, Autism Speaks, the 
Brain Injury Association of America, Easter Seals, the National 
Association of Councils on Developmental Disabilities, the National 
Disability Institute, the National Down Syndrome Society, the National 
Federation of the Blind, and The Arc.
  They support this bill because they know it will help more disabled 
individuals help themselves. That is all I can ask for--that is all 
anyone can ask for--and it is something I am pleased this legislation 
provides. This is why the ABLE Act has 380 cosponsors in the House and 
74 cosponsors in the Senate.
  I want to particularly thank the sponsor of this legislation, my good 
friend from Florida, Representative Ander Crenshaw, as well as 
Representatives Sessions, McMorris Rodgers, and Van Hollen for their 
diligence in helping us bring this legislation to the floor today.
  Mr. Speaker, it is not every day that we have a chance to clear major 
hurdles in front of people who simply need a hand up. That is what this 
bill does, and I encourage all Members to support it.
  I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
  With this bill, we can help millions of Americans who are living with 
disabilities become more financially secure. Just as families today can 
open tax-free accounts to save for the future costs of college for 
their children, this legislation would make it easier for families to 
save money for disability-related expenses like transportation, 
housing, and health prevention and wellness. The ABLE Act aims to ease 
the financial burden on these individuals and their families.
  I applaud the efforts of Congressmen Crenshaw, Van Hollen, Sessions, 
and you, Chairman Camp, among others.
  The CBO estimates the cost of the bill will be $2 billion over 10 
years. The bill is paid for through $638 million in revenue offsets and 
$1.4 billion in spending cuts.
  There has been active bipartisan work on paying for this bill, and 
there is broad agreement on the revenue offsets. There is some 
opposition to the Medicare offsets included in the bill because the 
legislation uses Medicare savings for nonhealth purposes.
  We have challenges ahead, including important work on SGR. I 
understand the concern about Medicare offsets. I think it is important 
as we proceed on this bill to stress that it must not be considered a 
precedent for using Medicare savings to pay for unrelated costs 
associated with tax changes.
  The ABLE Act provides much-needed relief, as we have said, to 
families and their children with disabilities. This is an important 
step forward for them in a very personal way. I support its passage.
  I reserve the balance of my time.
  Mr. CAMP. Mr. Speaker, I yield 5 minutes to the distinguished 
gentleman from Florida (Mr. Crenshaw), who is the sponsor of the bill.
  Mr. CRENSHAW. Mr. Speaker, I thank the gentleman for yielding the 
time.
  Let me first just say thank you to Chairman Camp, the chairman of the 
Ways and Means Committee, for his hard work in bringing this bill out 
of the Ways and Means Committee with a unanimous vote. I thank him and 
his staff who have worked long and hard to bring this bill to the floor 
today.
  On a personal note, as Chairman Camp leaves the Congress this year, I 
want to express my thanks and gratitude for his friendship over the 
years and for his leadership not only for the people of Michigan, but 
for the people of America. You will be missed.
  Mr. Speaker, when we talk about the ABLE Act, I think that this is a 
great example of what can be accomplished when people work together. 
People say we don't always work together, but here is a case where 
people have come together--Democrats and Republicans, the House working 
with the Senate--for the common good of the people of America.
  I think all of us probably know somebody, either a family member or 
maybe a friend of the family--somebody--who has a disability. It might 
be Down syndrome, or it might be autism, or it might be some other 
disability, but sometimes, I don't think we understand the difficulty 
and the challenges that those individuals and their families face. They 
are beyond our comprehension sometimes because we are lucky in the way 
that we can live.
  The ABLE Act seeks to address that inequity. It seeks to help those 
people who so often society overlooks or maybe the government 
overlooks. The ABLE Act is very simple, it is very straightforward, it 
is understandable, and we have come to this after 8 years of hard work.
  When I first filed the bill in 2006, there were very few cosponsors 
of this legislation, but over the years, an awful lot of people on both 
sides of the aisle have worked long and hard to make this legislation 
better. Some of the individuals who have these disabilities come to 
Washington every year. They have gone out, and they have talked to 
their individual Representatives.
  That is one of the reasons we have 380 cosponsors in the House. It is 
because those individuals have gone to an office and have sat down and 
have said, ``This is something that would make a difference in my 
life.'' And those Members have said, ``We want to help.'' The same 
thing has happened in the Senate.
  You heard Chairman Camp talk about how that takes place. Individuals 
with disabilities can create a tax-free savings account, put their own 
money in that account, and have a chance to actually save for their 
futures.
  Those dollars grow tax free, and as long as they are used for 
qualified expenses, such as medical expenses or maybe educational or 
job training expenses, they can use those proceeds. We already allow 
folks to help themselves by setting up tax-free savings accounts to 
save for college. It is called a 529.
  We allow people to save for their retirements through a tax-free 
savings account called an IRA or a 401(k), and

[[Page 16495]]

we allow people to save for their health insurance by the creation of 
health savings accounts. It only seems fair to me and to all of us that 
we would provide the same sort of treatment to those individuals who 
are less fortunate than we are.
  Now, we have a situation in which the ABLE accounts will open a door 
to a bright future to millions of Americans. It will give those 
individuals a chance to realize their hopes and their dreams, to be 
part of the American Dream, and to be able to achieve their full 
potential.
  I can't think of anything that is more rewarding. I can't think of 
any greater privilege than to speak out for people who can't always 
speak for themselves. This ABLE Act will bring justice, and it will 
bring peace of mind to millions of American families who live with 
disabilities every day. I think that is something worth fighting for.
  Mr. LEVIN. Mr. Speaker, it is now my real pleasure to yield 3 minutes 
to the gentleman from Maryland (Mr. Van Hollen), another person like 
Mr. Crenshaw and others who have been working so hard on this issue for 
a long time.
  Mr. VAN HOLLEN. Mr. Speaker, let me start by thanking my colleague, 
Ranking Member Levin, for yielding but, most importantly, for his 
partnership on this important bipartisan legislation.
  I also want to thank my colleagues on the other side of the aisle. 
Chairman Camp, thank you for all of your efforts and diligence in 
getting us to this point. To our fellow cosponsors--Congressman 
Crenshaw, Congresswoman McMorris Rodgers, Congressman Sessions, and 
others--thank you for all you have done to get us to this point.
  To our colleagues on the other side of the Capitol, Senator Bob Casey 
and Senator Richard Burr, this has been a team effort.
  Mr. Speaker, like Congressman Crenshaw, I want to especially 
recognize and honor those families from across the country who actually 
worked so hard over so many years to get us to this point. Many of 
those families are in the gallery today. Others are watching from 
around the country.
  At a time when there is deep cynicism about the ability or lack of 
ability of Congress and the government to function, they broke through 
that cynicism and are an example to others of what we can do and can 
accomplish by working together.
  Because of their efforts, as we heard, we have 380 cosponsors, 
Republicans and Democrats, in the House and 74 United States Senators, 
Republicans and Democrats. With that broad bipartisan and bicameral 
support, everyone worked together to get to this point.
  We have heard what this does. It provides an opportunity for families 
with kids or other members of the families with disabilities to put 
aside a little money, tax free, to help defray some of the extra 
medical costs that are incurred by those families.
  It is a benefit available to families who are sending their kids to 
college, and we should make sure that we provide that kind of benefit 
to families who are trying to make sure their loved ones are cared for.
  That is what this does. It is about equity. It is about fairness. It 
is about making sure that every child has the opportunity to reach his 
or her full potential. It is a time-honored American value, and that is 
why this has attracted such broad support.
  Mr. Speaker, no single piece of legislation--nothing we can do here--
can single-handedly eliminate the additional medical and financial 
burdens faced by families living and loving and caring for their 
children with disabilities every day, but this act, this ABLE Act, can 
help ease that financial burden and can help assist families in some 
small way in ensuring that their children receive the love and care 
they deserve.
  I thank my colleagues for coming together on this important effort, 
and I hope it gets through the Senate and to the President's desk, 
where it can be signed soon.
  Thank you, Mr. Chairman, and thank you, everybody, for being a part 
of this effort.
  The SPEAKER pro tempore (Mr. Yoder). The Chair would remind all 
Members that the rules require Members to refrain from referencing 
occupants in the gallery.
  Mr. CAMP. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Washington State (Mrs. McMorris Rodgers), the distinguished chair of 
the House Republican Conference.
  Mrs. McMORRIS RODGERS. Thank you very much, Mr. Chairman, and thank 
you for your tremendous leadership.
  To my colleagues on both sides of the aisle in the House and in the 
Senate, I thank them for their tremendous support.
  Mr. Speaker, I join in rising in strong support of H.R. 647, the 
Achieving a Better Life Experience Act, the ABLE Act, which will help 
millions of Americans and families save for their futures.
  Today is the day we have been waiting for, for a long time, and I am 
so proud to stand here with my colleagues, with the advocates who are 
here, with the families across the Nation who have spent countless 
days, weeks, years pushing us across the finish line.
  For me, personally, this bill is about a little boy who was diagnosed 
with Down syndrome 3 days after he was born. His diagnosis came with a 
list of future complications: endless doctors' visits and therapy 
sessions, potential heart defects, even early Alzheimer's.
  Seven years later, as the mom of that little boy, nothing has given 
me greater joy than watching Cole grow and the tremendous impact that 
he is already having on this world.
  When Cole was born, my husband and I were told don't put any assets 
in his name because he may need to qualify for one of these programs in 
the future. That is the wrong message to send to parents who are ready 
to save--who are ready to sacrifice--to ensure that their children have 
an opportunity for a better life.
  The ABLE Act is going to change this. It is going to empower 
individuals with disabilities and empower their families through tax-
free savings accounts to save for college, retirement, and other future 
expenses.
  As a part of America's new Congress, we are here to advance real 
solutions, solutions to make people's lives better, solutions that will 
empower all Americans no matter where you come from, no matter how much 
money to your name, or what challenges you face.
  The ABLE Act is one of the many ways that we are going to do that. It 
is going to empower millions, including my son Cole, with the 
opportunity for a better life.
  I encourage my colleagues on both sides of the aisle to support H.R. 
647.
  Mr. LEVIN. Mr. Speaker, I now yield 3 minutes to the gentleman from 
Washington (Mr. McDermott), another distinguished member of our 
committee.

                              {time}  1545

  Mr. McDERMOTT. Mr. Speaker, I want to begin by being very clear. I 
support the ABLE Act itself. It is a compassionate bill that seeks to 
expand the common good by providing tax-free savings accounts for 
disabled Americans. If we were voting on that bill today, I would 
strongly support it. But the ABLE Act isn't the issue here. The issue 
is how we are going to pay for it. And the proposal we are considering 
today is just one that jeopardizes the future of our safety net.
  Newt Gingrich talked about wanting to have Medicare wither on the 
vine. That has always been the desire of the Republicans. So today we 
are setting out on an unprecedented and dangerous course in the funding 
of this bill.
  In a last-minute development, the Congress is now considering using 
cuts to Medicare to offset the cost of this legislation, taking away 
from the old people and giving it to these folks. That is their idea of 
a balanced act.
  There has been no serious debate. There has never been a hearing and 
no thoughtful discussion of the implications of this proposal. If we 
vote to make these cuts, we will take the first step down a slippery 
slope that directly undermines the social safety net.
  I have checked with the experts in the nonpartisan Congressional 
Research Service and couldn't find one

[[Page 16496]]

example in which Congress has used Medicare as a piggy bank to pay for 
a tax bill. And that is what this bill is, basically, a tax exemption. 
It is a good idea, but are we going to use Medicare to pay for it? 
Because, mark my words, when it comes time to offer another tax break, 
my colleagues on the other side will come after Medicare again; and the 
next time, the cut will be deeper and easier because we did it today.
  I believe that we should not be a part of beginning to rip Medicare 
at the very bottom. It looks like just a little bit. And they will say, 
oh, it is only a tiny bit, and it is not going to affect anybody. But 
you are establishing a precedent that you will hear again on this 
floor. For that reason, I intend to vote ``no.''


                                                         AARP,

                                 Washington, DC, December 3, 2014.
       Dear Representative: As the largest nonprofit, nonpartisan 
     organization representing the interests of Americans age 50 
     and older and their families, AARP urges you to reject using 
     Medicare savings as an offset to pay for non-healthcare 
     programs, including the cost of the Achieving a Better Life 
     Experience (ABLE) Act of 2014.
       AARP has consistently advocated against using permanent 
     reductions in Medicare to pay for other unrelated government 
     spending. While we agree it is important to help individuals 
     with disabilities maintain health, independence, and quality 
     of life, we oppose using Medicare savings to finance tax 
     expenditures or other non-healthcare programs.
       The ABLE Act establishes tax-exempt savings plans for 
     persons with disabilities, making it much easier for them and 
     their families to save for future expenses. Although ABLE 
     accounts are only available for individuals under the age of 
     26, the savings accrued will help with living expenses as the 
     person ages. This is especially important because at ages 50-
     64, adults with disabilities are less than half as likely to 
     be employed as those without disabilities.
       However, establishing the ABLE program should not be 
     achieved by tapping into Medicare savings. This is especially 
     true at a time when Medicare faces its own long term funding 
     needs, and when Congress will shortly need to find savings to 
     pay for either permanent Medicare SGR reform or another 
     temporary ``doc fix'' in 2015. We urge you to remove Medicare 
     offsets from the ABLE Act.
           Sincerely,

                                             Nancy A. LeaMond,

                                         Executive Vice President,
                                           State & National Group.

  Mr. CAMP. Mr. Speaker, I yield 5 minutes to the distinguished 
gentleman from Washington State (Mr. Reichert), a member of the Ways 
and Means Committee and chairman of the Human Resources Subcommittee.
  I also ask unanimous consent that the gentleman from Washington 
control the remainder of my time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. REICHERT. Mr. Speaker, I thank Chairman Camp for yielding and for 
all of his hard work on this legislation and for bringing it forward 
today.
  I thank the gentleman from Florida (Mr. Crenshaw), too, for his hard 
work.
  Mr. Speaker, I rise today in strong support of H.R. 647, as amended, 
also known as the ABLE Act. And we have heard what ABLE stands for, but 
let me just repeat it very slowly so people can understand really what 
this is about: achieving better life experience for people who have 
special needs and who are disabled.
  We all strive to have better lives, but some people in this world 
need a little help, and that is what we are doing today. Some people 
might disagree with some of the ways we are going about this. The 
bottom line is we are helping people that need a little special help, a 
little extra help from us, and we are going to step up and do that.
  This is a bipartisan piece of legislation. It is designed to help 
those individuals with disabilities overcome the hurdles that they 
often face holding a job and trying to live independently.
  Here is the problem: if someone with a disability works and achieves 
even a modest level of savings, they lose their assets to certain 
safety net programs, such as Medicaid and SSI. This can discourage 
individuals from pursuing work opportunities and gaining the 
independence that comes through work.
  Here is the solution: this legislation today. This is the solution, 
Mr. Speaker. It helps individuals, regardless of disability, to achieve 
the best possible quality of life by ensuring continued access to 
essential safety net programs as well as tax-free savings accounts, 
allowing them to pursue independence and community involvement.
  These ABLE accounts would be used to cover a wide variety of expenses 
related to addressing and overcoming the disabilities, and they would 
grow tax-free. These costs quickly add up, as needs can range from 
uncovered health care needs, education costs, housing needs, 
transportation costs, assistive technology, speech-generating devices 
and other technology, and personal support services.
  This bill is critical because it allows individuals with ABLE 
accounts to maintain their eligibility for benefits while working and 
saving more for their future needs. ABLE account balances and 
withdrawals are completely excluded for purposes of Medicaid; and under 
the SSI program, the first $100,000 in account balances would be 
excluded from being counted as resources, meaning disabled individuals 
could save far more than today, while remaining eligible for benefits 
along the way.
  This bill is about real people--we have heard some of the stories 
already this afternoon--real people who have real hopes and real 
dreams, dreams of being able to support themselves and plan for the 
future, dreams for a better life, and people like my godson, Kyle.
  Now, Kyle today is 20 years old, but Kyle weighs 60 pounds and is in 
a wheelchair. Kyle was diagnosed at 18 months old with cancer. He can't 
speak. Up to this point, Kyle has only been able to save $2,000. And 
once you reach that $2,000 level, that is it. If you go over that, you 
don't get the benefits. Imagine if you were the parents of Kyle, trying 
to save for his future, to maybe get a speech device so Mom and Dad can 
hear Kyle say ``I love you,'' because he hasn't been able to say that. 
Imagine not being able to hear your child say, ``I love you, Mom. I 
love you, Dad.''
  This savings account allows people to save that money for their 
children, to buy that technology, to get that wheelchair that costs 
$20,000. Some of us who are able-bodied and don't understand the 
disability that people live with every day, you see a wheelchair and 
there is no cost attached. We see people in wheelchairs, $20,000 and 
more for people who can only use maybe their index finger and a thumb 
to operate the toggle switch on a wheelchair so they can go from point 
A to point B.
  I am proud to be Kyle's godfather. When you wheel Kyle into a room, 
he lights up the room, and we want to give him a better life. That is 
what this bill does.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. REICHERT. Mr. Speaker, I yield myself an additional 30 seconds.
  I would like to thank the cosponsors of this bill, the 379 Members. 
But more than anyone, I would really like to especially thank the 
families that have been working on this for years. It has been an honor 
to visit with them, to get to know them, and to get to know their 
families.
  I urge a ``yes'' vote on this legislation.
  I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I now yield 2 minutes to the gentleman from 
New Jersey (Mr. Pallone).
  Mr. PALLONE. Mr. Speaker, I think everyone here would agree that the 
goals of the ABLE Act are worthy. The bill's title stands for achieving 
better life experience, and it would allow for the creation of tax-free 
savings accounts to benefit individuals with disabilities. These 
accounts would provide a way for families raising children with 
disabilities to set aside savings for their child's care.
  What I am concerned about is the offsets. The bill before us today 
uses Medicare cuts to pay for a tax break. Medicare is a program that 
seniors and people with disabilities depend upon for their health care, 
and we should not be cutting Medicare to pay for this bill.
  Meanwhile, we all know that our efforts to permanently repeal and 
replace the SGR in the lameduck are, unfortunately, falling flat. And 
while I hope we can still pass SGR this month, if it

[[Page 16497]]

does not get done, we are going to have a Medicare bill that will cost 
tens of billions of dollars in March, and Republicans will force us to 
pay for every last dime, and here we are, using $1.2 billion in health 
offsets for non-health bills.
  In addition to the Medicare offsets, there are other offsets included 
in this bill that are troublesome. The provision on certified 
professional employer organizations could have a negative effect on 
worker rights, including collective bargaining and organizing and 
worker protections.
  I say again, the goals of the ABLE Act are laudable. I hope that our 
Senate colleagues will send the bill back to us without these offensive 
offsets so that we can enact a good law that we can all be proud of.
  Mr. REICHERT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Illinois (Mr. Roskam), a distinguished member of the Ways and Means 
Committee.
  Mr. ROSKAM. Mr. Speaker, I thank the gentleman for yielding.
  Imagine that sense when you get the word that a new baby has been 
diagnosed with something that was completely unanticipated. That has 
been a situation that has been present in the lives of constituents, 
family, friends, and those of us who are nearby.
  I think there is a hopefulness today, Mr. Speaker, about what we are 
talking about. And there are so many people that have run for office 
with the idea of trying to get something done, the notion that you have 
this strong of a voice all coming together saying, You know what? We 
may not be able to agree about what time of day it is in this Congress, 
but we can agree that we all ought to come together to help those who 
are unable to help themselves or to help those who want to care for the 
ones who are around them. So it is also a good lesson to learn about 
the tenacity of Americans who have decided to substantively engage this 
place over a period of years.
  A number of minutes ago, we heard from the gentleman from Florida, 
Representative Crenshaw, who talked about introducing this back in 
2006. He was tenacious, and he was joined by others, and they pushed 
and they pushed. Now they have accomplished something, and we are on 
the verge of, actually, a great moment.
  So I am here to celebrate. I am here to celebrate with my colleagues 
who took the initiative. I am here to celebrate others who came 
alongside. But most of all, Mr. Speaker, we are here to celebrate the 
lives of those who are being supported by this act.
  Mr. LEVIN. Mr. Speaker, it is now my pleasure to yield 2 minutes to 
the gentlelady from the District of Columbia, Eleanor Holmes Norton.
  Ms. NORTON. Mr. Speaker, I have been working with Mr. Crenshaw, with 
Senator Casey, and I congratulate them on this bill. But I want to say 
how deeply I regret that there are extraneous provisions in the bill 
concerning worker protections and offsets that keep it from being the 
bipartisan bill that it means to be, or else we wouldn't have seen 
virtually the whole House on the bill. So I have come to speak for the 
underlying bill and to hope that those provisions will somehow be swept 
aside and we can have the bill that I think most who signed on thought 
they were signing.
  We talk on both sides of the aisle, as well we should, about personal 
responsibility, but what we have been doing until this time was leaving 
the disabled dependent on their own parents or on charities without any 
way to liberate themselves from others. I think about the parents of 
20-year-old autistic brothers who kept them locked up and had no way to 
liberate them or to care for them.
  Most woeful is dependence on charities who, themselves, get tax 
exemptions to take care of people who need them, and they do an 
excellent job. But, if we are going to give a tax break to people who 
take care of disabled people, surely there should be a tax benefit for 
them to take care of themselves.
  And just consider this: most disabled people, truly disabled people, 
are unable to find jobs of any kind; but if they do, they will not be 
the kinds of jobs normally that leave them able to open savings 
accounts, prepare for their own retirement, and the rest. So even if 
they were able to be employed, they still, of course, must look to 
other sources of income
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. LEVIN. I yield the gentlelady an additional 2 minutes.
  Ms. NORTON. That is why this bill, in many ways, is so sensitive. It 
doesn't supplant any of the assistance that is necessary, like Medicaid 
and their own insurance that they may have or SSI.
  My own daughter, Katherine Felicia Norton, was the Global Down 
Syndrome ambassador this year. Katherine will probably not need one of 
these savings accounts. But I am here this afternoon to speak for all 
of those who do--and there are millions in our country--and to thank 
particularly the sponsors for what they are trying to do with this 
bill.
  I thank my good friend for yielding to me.

                              {time}  1600

  Mr. REICHERT. Mr. Speaker, I yield 2 minutes to the gentleman from 
North Carolina (Mr. Holding), who is a cosponsor of the bill.
  Mr. HOLDING. Mr. Speaker, I thank the gentleman for the time.
  Earlier today I had the privilege of meeting with Kenneth Kelty and 
his mother, Jacqueline. They are from my district, and this is a family 
who would benefit directly from the ABLE Act and who shared their 
support of this important bill with me just this afternoon. Kenneth 
recently graduated from the University Participant Program at Western 
Carolina University, a program that allows students with disabilities 
to study side-by-side with other students at the university. In 
Kenneth's words, it was ``a chance to do all the same things as 
everyone else with nothing holding us back.'' Kenneth joined a 
fraternity, had a good time, learned a lot, was able to come back, has 
a job.
  Mr. Speaker, just as the University Participant Program helps people 
with disabilities like Kenneth, so will this bipartisan ABLE Act. This 
bill will allow tax-free savings accounts for expenses such as housing, 
education, employment training. Similar to a 529 program college 
savings account, these accounts will help provide families with some 
peace of mind when trying to save for their children's long-term 
expenses.
  So, Mr. Speaker, I encourage my colleagues to support the ABLE Act.
  Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentlelady from 
Texas (Ms. Jackson Lee).
  Ms. JACKSON LEE. Mr. Speaker, I thank the manager, Mr. Levin, for his 
kindness, as well as the manager for the majority, Mr. Crenshaw, and 
Mr. Van Hollen, and the many others who, along with myself, cosponsored 
this legislation.
  It is very moving to have a moment of family on the floor of the 
House as I listen to Members recount their individual stories of those 
in their families and those of us who encounter our constituents with 
wonderful, beautiful children, many of whom fit squarely in this relief 
that is being given.
  As I watched two twins grow up who are prized and special in our 
community, I could just imagine what their mother and their late father 
would say about this opportunity. This legislation, H.R. 647, squarely 
answers our concerns.
  I want to get to two points that I think are so important. We hear it 
all the time: it seems as if these are rich people trying to get money, 
but they are not. They may be working families and middle class 
families, and to be able to not deny them eligibility for Medicaid when 
there are severe health issues that many of these young people and 
children face, and also for them to be able to have SSI, which is 
sometimes a lifeline, to be able to put aside this savings that will 
help them in education and transportation--I hear it so often, training 
for employment; any of us who have dealt with Goodwill and seen what 
Goodwill does with young people whose parents bring them there--yet 
they need other ways of

[[Page 16498]]

being able to respond, and they should not be denied higher education.
  This bill allows the savings to be part of the higher education 
efforts that these parents want for their children, and sometimes the 
ability for independence with primary residence, what it says is that 
these young people, as they grow, have developmental possibilities and 
opportunities, and that there are no throwaway children, there are no 
throwaway young people.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. LEVIN. Mr. Speaker, I yield the gentlewoman an additional 1 
minute.
  Ms. JACKSON LEE. I thank the gentleman. There are no throwaway young 
people, and we should not throw them away.
  I agree with my colleagues who have mentioned items that we would 
hope would be reframed, if you will, impacting workers' conditions and 
rights, provisions that may, in fact, impact Medicare. None of us who 
have committed ourselves to the strength of Medicare want to see that 
undermined. But I will say that the goodness of this legislation for my 
neighbors and my constituents whom I personally know, individuals whom 
I personally know--this is a lifeline.
  I am very glad to speak on H.R. 647 for the lifeline that it provides 
for people who deserve it, and they do not in any way have the need or 
the desire to see the opportunities for their children and their young 
people be determined only by the limitations of their ability to 
provide for them.
  This is an account. It is more than a savings account. It is a 
lifeline account to help give every American, no matter who they are, 
this equal opportunity and particularly those with disabilities.
  Mr. REICHERT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, we have heard a lot of stories today about people in 
need, about people with disabilities and special needs, and we have had 
some names attached to those stories, which really touches the hearts 
of those people that know those individuals, and I hope touches the 
hearts of the Members here in this Chamber when they hear the stories 
of people in need who need that special attention.
  One key challenge for disabled individuals is that their access to 
certain safety net programs can be lost if they work. I want to just 
repeat that. It can be lost if they work and achieve even a modest 
level of savings. To overcome that challenge, the ABLE Act would help 
more individuals with disabilities save and live independently without 
losing access to critical programs like Medicaid and SSI.
  Now, starting in 2015, States could create an ABLE program under 
which individuals with disabilities could start an ABLE account modeled 
after current section 529 savings accounts. Anyone--parents, 
grandparents, and other family members, and friends--could contribute 
to that account, which would grow tax free. Then when they need to 
withdraw from that account, those withdrawals would be tax free if 
spent on a wide variety of expenses related to helping them address and 
overcome their disability. That includes expenses like uncovered health 
care, education costs, housing needs, transportation costs, assistive 
technology, and others that I have mentioned earlier.


                          able account details

  One key challenge for disabled individuals is that their access to 
certain safety-net programs can be lost if they work and achieve even a 
modest level of savings.
  To overcome that challenge, the ABLE Act would help more individuals 
with disabilities save and live independently without losing access to 
critical programs like Medicaid and SSI.
  Starting in 2015, States could create an ABLE program, under which 
individuals with disabilities could start an ABLE account, modeled 
after current Section 529 savings accounts.
  Anyone--parents, grandparents, and other family and friends--could 
contribute to their ABLE account, which would grow tax-free.
  Then when they need to withdraw from the account, those withdrawals 
would be tax free if spent on a wide variety of expenses related to 
helping them address and overcome their disability.
  That includes expenses like uncovered health care, education costs, 
housing needs, transportation costs, assistive technology, and personal 
support services.
  Critically, individuals with ABLE accounts could maintain their 
eligibility for means-tested benefits while working and saving more for 
their future needs.
  ABLE account balances and withdrawals are completely excluded for 
purposes of Medicaid.
  And under the SSI program, the first $100,000 in account balances 
would be excluded from being counted as resources, meaning disabled 
individuals could save far more than today while remaining eligible for 
benefits along the way.
  This change will go a long way to easing the minds of disabled 
individuals and those around them.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. Let me ask my colleague if he is ready to close?
  Mr. REICHERT. I am waiting for one other speaker. If the gentleman 
has another speaker, it would be helpful.
  Mr. LEVIN. I do not.
  Mr. REICHERT. I guess we are ready to close then, Mr. Speaker.
  Mr. LEVIN. Okay. I would like to give your colleague a chance, but 
shall we proceed? Is that okay?
  Mr. REICHERT. Yes, we are prepared to close.
  Mr. LEVIN. Okay. I can do so very briefly. I think we face a somewhat 
unusual situation here. We have an opportunity to help people who have 
some very major challenges, including challenges related to their 
health, and so on balance I think there is a need for us to act, and so 
therefore I support this bill.
  I just want us to remember, in a sense, the unusual opportunity that 
we have here to help millions of people who are living with 
disabilities that affect their lives, including their basic health 
status.
  I yield back the balance of our time.
  Mr. REICHERT. Mr. Speaker, I yield myself the remaining time.
  I thank the gentleman for his comments and words of support and, 
again, thank all 379 cosponsors of this bipartisan bill. I thank the 
Senate, which has worked with the Members of the House on this bill, 
making it a bicameral bill, and I think it is also important, Mr. 
Speaker, to point out the outside support that this bill has garnered.
  Let me just name a few of those: the American Association of People 
With Disabilities, Autism Society of America, Autism Speaks, the Brain 
Injury Association of America, Easter Seals, National Association of 
Councils on Developmental Disabilities, National Disability Institute, 
National Down Syndrome Society, National Federation of the Blind, and 
the Arc, and that is just to name a few of the outside organizations 
and groups that support this legislation.
  Again, this is important legislation designed to help individuals 
with disabilities overcome the hurdles that they often face in holding 
a job and living independently, and I appreciate again the comments of 
the ranking member, Mr. Levin, and urge my colleagues to support this 
bill.
  I yield back the balance of my time.
  Mr. LARSON of Connecticut. Mr. Speaker, I rise today in strong 
support of the ABLE Act. I would like to commend the efforts of my 
colleagues Representative Ander Crenshaw and Representative Chris Van 
Hollen for their leadership and steadfast commitment to moving this 
legislation forward. This is truly a great bipartisan effort that will 
help families across this country and I've been proud to join the 
hundreds of members of Congress who support it as a cosponsor.
  For years, I have heard from constituents like Andrew and Tamara 
Selinger from West Hartford, who have advocated not only on behalf of 
their own family, but for families across Connecticut and the country. 
Their two children have Fragile X syndrome and all they are asking for 
are the same opportunities for their children that other families have 
with the 529 plan, to have a savings mechanism that would enhance their 
lives and pay for non-covered medical expenses, while not minimizing 
the services that they receive. I have heard from people like Bob and 
Rosie Shea and Shannon Knall from our local Autism Speaks chapter and 
many others from families and groups advocating on behalf of 
individuals with disabilities, who have spoken so passionately about 
why this legislation is so important.

[[Page 16499]]

  In spite of the partisan rancor that often dominates this building, 
this bill shows that we can come together in a meaningful way to act in 
a positive manner on behalf of the American people. It is truly 
inspiring how many advocates and families have made their voice heard 
on this legislation and I urge my colleagues to support this bill and 
finally get it across the finish line on behalf of families across this 
country.
  Mr. PRICE of Georgia. Mr. Speaker, I strongly support the ABLE Act 
and its intent to promote greater independence and freedoms to disabled 
and handicapped Americans. However, I have great concerns with the 
policy that is being used to pay for this legislation because it would 
seek to further decrease Medicare reimbursement for physicians--an 
action that could threaten seniors' access to health care.
  Since the passage of the Medicare Modernization Act of 2003 and the 
creation of the sustainable growth rate (SGR) formula, Congress has 
passed 17 ``doc-fixes'' to prevent further cuts to physicians providing 
care for our seniors. Each year, the entire medical community must pick 
up the tab to prevent the disastrous cuts that would be implemented if 
the SGR was to take effect. The result? Medicare reimbursement for 
physicians has decreased by 17% when adjusted for inflation, while the 
cost of care continues to rise.
  In the most recent ``doc fix'' passed in March of this year, a 
controversial provision required the annual re-evaluation of codes 
matching 0.5% of total physician spending from 2017 through 2020. If 
this target is not met, the difference would be taken in the form of an 
across the board cut. The proposed offset included in the ABLE Act 
would shift these targets forward and compress them, requiring CMS to 
identify misvalued services equal to at least 1% of total physician 
spending in 2016, and 0.5% in 2017 and 2018. Moving the target to 2016 
and frontloading it to require the identification of 1% of total 
physician spending in the first year would make it extremely difficult 
to meet the target.
  However, CMS has no intention of implementing this law. In the 2015 
Medicare Fee Schedule Final Rule, CMS finalized a proposal to 
transition 10- and 90-day global period codes to 0-day global period 
codes in 2017, and 2018, respectively, yet CMS has not developed a 
methodology for how that transition will be made. This is a major 
overhaul of close to half of the currently existing CPT codes and will 
dramatically reform how physicians are paid. Because CMS has not yet 
developed a methodology for how this transition will occur, the nature 
of the impact is currently unknown, leading to further instability in 
physician payments. CMS notes in the Rule that due to the work 
necessary to make this change, they will not have resources to review 
certain other potentially misvalued services for the ``next several 
years'', almost certainly resulting in an across the board cut to all 
physicians caring for Medicare patients.
  This continuous pursuit by our Congress and CMS to re-evaluate codes 
within the physician fee schedule will be detrimental to the medical 
community and to ensuring access for our Medicare beneficiaries. A 1% 
cut may not sound like much, but when taken in conjunction with the 
combined maximum penalties for not meeting the PQRS, physician value-
based payment modifier, and EHR programs, the total potential cut faced 
by physicians will be -9% in 2016, and -11.5% in 2017. This does not 
even take into account the cuts required by the unresolved SGR.
  Despite these concerns, I will support the ABLE Act today with the 
hope that my colleagues on both sides of the aisle will recommit 
themselves in the new Congress to securing the Medicare program for all 
Americans.
  Mr. PAULSEN. Mr. Speaker, more than 37 million people in the United 
States have a disability, including more than 500,000 in Minnesota. For 
parents raising a child with a disability, it is both emotionally and 
financially draining.
  While, individuals with disabilities are living longer and more 
productive lives than ever before, they still face barriers to finding 
and holding employment, living independently, and taking care of their 
daily needs. We can make it easier for these families to bear this 
financial burden.
  The bipartisan ABLE Act, or Achieving a Better Life Experience, will 
give individuals with disabilities new opportunities for them to save 
and pay for the costs of their disabilities. Using an ABLE account, 
they and their families are able to put aside money tax free and then 
use it to cover qualified expenses such as health, education, housing, 
and transportation.
  For eight years, this legislation has been proposed, talked about, 
and pending in Congress. I became an early advocate for the ABLE Act 
when I was first elected to the House. It is supported by more than 70 
health care and disability organizations. Now's the time to get this 
across the finish line and pass the ABLE Act to help families and 
individuals most in need.
  Ms. DUCKWORTH. Mr. Speaker, as a proud cosponsor of H.R. 647, the 
ABLE Act, I urge all of my colleagues to vote in favor of this 
legislation today. If enacted, it would allow Americans living with a 
disability and their families to establish tax-exempt financial 
accounts so they can finance qualified expenses including education, 
housing, transportation, employment support, medical care and other 
personal necessities. Critically, it would not jeopardize eligibility 
for other important federal benefits like Medicaid and Social Security.
  As a disabled American myself, I understand the financial strain a 
disability can have on individuals and their families. Not only do 
disabled Americans often face higher costs and lower incomes, but they 
are currently penalized for saving for their future. The ABLE Act will 
allow millions of Americans with disabilities to invest in their 
futures, live fulfilling lives and become more independent and less 
reliant on public benefits. It will empower them to build a better 
economic future for themselves and their families.
  Disabled Americans deserve every opportunity to achieve their dreams. 
I urge the House to pass this important legislation as quickly as 
possible.
  Mr. SMITH of New Jersey. Mr. Speaker, I rise today to express my 
strong support for the Achieving a Better Life Experience Act or ``the 
ABLE Act,'' legislation I cosponsored that is designed to improve the 
quality of life for individuals with disabilities by assisting in long-
term financial planning.
  As the founder and co-chair of the Coalition for Autism Research and 
Education, I understand the financial demands of raising a child with 
support needs. Education, housing, transportation, employment support, 
medical care, and other life expenses can quickly add up for persons 
with disabilities.
  A study published this year in the Journal of the American Medical 
Association (JAMA) Pediatrics found that the lifetime cost for an 
individual with ASD averages $1.4 million. These costs jump to $2.4 
million when autism involves intellectual disability--an estimated 40 
percent of individuals with autism also have intellectual disability.
  Unfortunately, under current law, saving more than $2,000 jeopardizes 
access to services and supports, such as Social Security and Medicaid. 
If enacted, the ABLE Act--which establishes tax-exempt accounts, 
similar to the current 529 Education Savings Plans--will no longer 
force parents to choose between saving for their child's future and 
sacrificing the assistance their child requires.
  I commend Speaker Boehner for bringing this bill to the floor today. 
It is especially timely for the autism community as we continue to 
address the looming crisis of aging out. Every year, 50,000 age-out of 
their support system and into a society that disincentivizes employment 
and financial security. Enactment of my legislation--the Autism CARES 
Act--earlier this year began the conversation of how to better address 
the needs of individuals with ASD who are aging out and we have much 
work to do.
  The ABLE Act is a step in the right direction. While I have concerns 
regarding the Medicare physician services offsets, ABLE accounts are a 
sensible and fiscally responsible tool that will benefit some of the 
most vulnerable members of our society. It is a smart piece of 
legislation to assist families in saving and planning for the long-term 
needs of individuals with disabilities and a more secure future. I urge 
my colleagues to support this bill.
  Mr. BECERRA. Mr. Speaker, It's a laudable and worthy goal to 
incentivize savings and ensure that families of individuals with 
disabilities have access to the resources they need. But Congress has a 
responsibility to ensure that limited resources benefit those who need 
the help the most. Unfortunately, this bill is yet another example of 
an upside-down tax code that provides the greatest benefits to those of 
greatest means, not to middle class families living paycheck to 
paycheck.
  Additionally, as AARP has noted in the attached letter, 
``establishing the ABLE program should not be achieved by tapping into 
Medicare savings.'' Using Medicare savings to offset non-health related 
programs sets a dangerous precedent. While there are elements to this 
bill that both sides can agree on, this bill takes one step forward and 
two steps back.

                                              American Association


                                            of Retired People,

                                                 December 3, 2014.
       Dear Representative: As the largest nonprofit, nonpartisan 
     organization representing the interests of Americans age 50 
     and older and their families, AARP urges you to reject using 
     Medicare savings as an

[[Page 16500]]

     offset to pay for non-healthcare programs, including the cost 
     of the Achieving a Better Life Experience (ABLE) Act of 2014.
       AARP has consistently advocated against using permanent 
     reductions in Medicare to pay for other unrelated government 
     spending. While we agree it is important to help individuals 
     with disabilities maintain health, independence, and quality 
     of life, we oppose using Medicare savings to finance tax 
     expenditures or other non-healthcare programs.
       The ABLE Act establishes tax-exempt savings plans for 
     persons with disabilities, making it much easier for them and 
     their families to save for future expenses. Although ABLE 
     accounts are only available for individuals under the age of 
     26, the savings accrued will help with living expenses as the 
     person ages. This is especially important because at ages 50-
     64, adults with disabilities are less than half as likely to 
     be employed as those without disabilities.
       However, establishing the ABLE program should not be 
     achieved by tapping into Medicare savings. This is especially 
     true at a time when Medicare faces its own long term funding 
     needs, and when Congress will shortly need to find savings to 
     pay for either permanent Medicare SGR reform or another 
     temporary ``doc fix'' in 2015. We urge you to remove Medicare 
     offsets from the ABLE Act.
           Sincerely,

                                             Nancy A. LeaMond,

                                         Executive Vice President,
                                           State & National Group.

  Mr. CAMP. Mr. Speaker, our nation encourages personal savings in a 
number of ways throughout the tax code and now with the ABLE Act we are 
adding one more, specifically for individuals with disabilities. As we 
acknowledge through this legislation the importance of saving for 
individuals with disabilities and their families, it is important to 
place this policy in context and ensure the public and policymakers 
appreciate the continued need for effective asset tests in means-tested 
programs.
  The ABLE Act explicitly ignores ABLE account balances and withdrawals 
for purposes of determining eligibility for Medicaid and other means-
tested programs; under the SSI program, the first $100,000 in account 
balances is not counted as resources and withdrawals, except for those 
relating to housing, are not counted as income. This treatment is 
designed to provide generous new incentives to save for individuals 
with disabilities and their families, which current policy limits.
  It would be a mistake for the public and future policymakers to argue 
that similar treatment should be afforded all low-income individuals 
under existing means-tested programs. Indeed, recent advances in 
administering resource limits suggests that such tools should be used 
more aggressively in making proper determinations about whether other 
individuals have sufficient personal means of support before asking 
taxpayers for government benefits. These advances rebut recent claims 
that administering resource limits is overly time consuming and 
burdensome, and suggest that State and Federal agencies are 
increasingly able to apply these limits in a cost-effective and 
efficient manner. For example, on March 11, 2011, the Ways and Means 
Human Resources Subcommittee heard testimony from the Social Security 
Inspector General about the use of electronic tools such as the Access 
to Financial Institutions (AFI) program, which allows the Social 
Security Administration to automate the process of checking for assets, 
limiting the burden on recipients and field office employees who 
administer the program.
  Another argument for ensuring the use of effective resource limits 
for non-disabled individuals involves program cost. Especially if able-
bodied individuals have significant assets or other resources on which 
to depend, they can and should be expected to use those resources first 
to support themselves before turning to taxpayer support. The 
alternative would be a significant expansion of taxpayer spending on 
able-bodied individuals who have significant personal resources they 
can and should turn to first for support. Recent years have seen 
examples of that through significant degradations in the effectiveness 
of the resource test in the food stamp program.
  As of November 2010, thirty-three states and D.C. excluded the value 
of all vehicles in making food stamp eligibility determinations and in 
the last five years nearly every state has chosen to not have an asset 
test for food stamp benefits at all. Not surprisingly, due to these 
changes and other factors, the food stamp program has grown from 17 
million recipients in the year 2000 to nearly 48 million recipients 
today, at four times its former cost to taxpayers. In July 25, 2012 
testimony before the Ways and Means Human Resources Subcommittee, 
Professor Doug Besharov of the University of Maryland described this 
phenomenon as ``eligibility creep,'' or ``The process through which 
programs are successively expanded through a series of small steps, 
many of whose impacts are imperceptible at the time.''
  Future policymakers need to protect against such eligibility creep 
and continue to ensure that limited taxpayer dollars are properly 
targeted to individuals needing assistance. Just as the ABLE Act allows 
parents to ensure sufficient resources are available to support their 
disabled children after they no longer can do so, we need to be good 
stewards of taxpayer-funded programs to ensure they are sustainable in 
the future. Continuing to effectively and efficiently administer income 
and resources limits, especially with regard to able-bodied 
individuals, is critical to achieving that goal.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 766, the previous question is ordered on 
the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. REICHERT. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.

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