[Congressional Record (Bound Edition), Volume 161 (2015), Part 14]
[Senate]
[Pages 19372-19383]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2875. Mr. JOHNSON (for himself and Mr. Gardner) proposed an 
amendment to amendment SA 2874 proposed by Mr. McConnell to the bill 
H.R. 3762, to provide for reconciliation pursuant to section 2002 of 
the concurrent resolution on the budget for fiscal year 2016; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. AMENDMENT TO THE PATIENT PROTECTION AND AFFORDABLE 
                   CARE ACT.

       (a) In General.--Part 2 of subtitle C of title I of the 
     Patient Protection and Affordable Care Act (42 U.S.C. 18011 
     et seq.) is amended by striking section 1251 and inserting 
     the following:

     ``SEC. 1251. FREEDOM TO MAINTAIN EXISTING COVERAGE.

       ``(a) No Changes to Existing Coverage.--
       ``(1) In general.--Nothing in this Act (or an amendment 
     made by this Act) shall be construed to require that an 
     individual terminate coverage under a group health plan or 
     health insurance coverage in which such individual was 
     enrolled during any part of the period beginning on the date 
     of enactment of this Act and ending on December 31, 2013.
       ``(2) Continuation of coverage.--With respect to a group 
     health plan or health insurance coverage in which an 
     individual was enrolled during any part of the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2013, this subtitle and subtitle A (and the 
     amendments made by such subtitles) shall not apply to such 
     plan or coverage, regardless of whether the individual renews 
     such coverage.
       ``(b) Allowance for Family Members To Join Current 
     Coverage.--With respect to a group health plan or health 
     insurance coverage in which an individual was enrolled

[[Page 19373]]

     during any part of the period beginning on the date of 
     enactment of this Act and ending on December 31, 2013, and 
     which is renewed, family members of such individual shall be 
     permitted to enroll in such plan or coverage if such 
     enrollment is permitted under the terms of the plan in effect 
     as of such date of enrollment.
       ``(c) Allowance for New Employees To Join Current Plan.--A 
     group health plan that provides coverage during any part of 
     the period beginning on the date of enactment of this Act and 
     ending on December 31, 2013, may provide for the enrolling of 
     new employees (and their families) in such plan, and this 
     subtitle and subtitle A (and the amendments made by such 
     subtitles) shall not apply with respect to such plan and such 
     new employees (and their families).
       ``(d) Effect on Collective Bargaining Agreements.--In the 
     case of health insurance coverage maintained pursuant to one 
     or more collective bargaining agreements between employee 
     representatives and one or more employers that was ratified 
     before December 31, 2013, the provisions of this subtitle and 
     subtitle A (and the amendments made by such subtitles) shall 
     not apply until the date on which the last of the collective 
     bargaining agreements relating to the coverage terminates. 
     Any coverage amendment made pursuant to a collective 
     bargaining agreement relating to the coverage which amends 
     the coverage solely to conform to any requirement added by 
     this subtitle or subtitle A (or amendments) shall not be 
     treated as a termination of such collective bargaining 
     agreement.
       ``(e) Definition.--In this title, the term `grandfathered 
     health plan' means any group health plan or health insurance 
     coverage to which this section applies.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in the Patient Protection 
     and Affordable Care Act (Public Law 111-148).
                                 ______
                                 
  SA 2876. Mrs. MURRAY (for herself, Mr. Wyden, Mr. Sanders, Mr. 
Markey, Mr. Warner, Mr. Coons, and Ms. Stabenow) proposed an amendment 
to amendment SA 2874 proposed by Mr. McConnell to the bill H.R. 3762, 
to provide for reconciliation pursuant to section 2002 of the 
concurrent resolution on the budget for fiscal year 2016; as follows:

       Strike section 101 and insert the following:

     SEC. 101. SENSE OF THE SENATE.

       It is the sense of the Senate that--
       (1) comprehensive access to reproductive health care is 
     critical to improving the health and well-being of women and 
     their families and is an essential part of their economic 
     security;
       (2) access to affordable contraceptives, including 
     emergency contraceptives, and medically accurate information 
     prevents unintended pregnancies, thereby improving the health 
     of women, children, families, and society as a whole;
       (3) it is imperative that women have access to the full 
     range of reproductive health care services;
       (4) women's health care providers, including Planned 
     Parenthood, provide critical services such as birth control, 
     cancer screenings, and other services, to millions of men and 
     women across the United States; and
       (5) all women and men should be able to access health care 
     services without fear or intimidation or threat of violence.

     SEC. 101A. WOMEN'S HEALTH CARE AND CLINIC SECURITY AND SAFETY 
                   FUND.

       (a) In General.--Title XIX of the Social Security Act (42 
     U.S.C. 1396 et. seq.) is amended by inserting after section 
     1941 the following new section:


       ``women's health care and clinic security and safety fund

       ``Sec. 1941A.  (a) Establishment.--
       ``(1) In general.--The Secretary shall establish under this 
     title a Women's Health Care and Clinic Security and Safety 
     Fund (in this section referred to as the `Fund') which shall 
     be available to the Secretary for the purpose of making 
     payments to women's health clinics or providers for the 
     provision of eligible services to individuals described in 
     subsection (b) and for expenditures of women's health clinics 
     or providers that are attributable to ensuring the security 
     and safety of such clinics or providers and of their staff 
     and patients. Payments made from the Fund to women's health 
     clinics or providers for eligible services or for security 
     and safety expenditures shall be in addition to any payments 
     that would otherwise be made to any such clinics or providers 
     for such services or expenditures.
       ``(2) Coordination.--The Secretary shall coordinate with 
     the National Task Force on Violence Against Health Care 
     Providers established by the Attorney General for purposes of 
     submitting an annual report to Congress on violence against 
     women's health clinics or providers, including violence 
     against the facilities, staff, and patients of such clinics 
     or providers, and shall identify in the report best practices 
     for ensuring the security and safety of such clinics and 
     providers and their facilities, staff, and patients.
       ``(b) Individuals Described.--For purposes of subsection 
     (a), individuals described in this subsection are any of the 
     following:
       ``(1) Any individual who is eligible for medical assistance 
     under a State plan under this title or a waiver of such plan.
       ``(2) Any individual who does not have health insurance 
     coverage.
       ``(3) Any individual who has health insurance coverage but 
     is under insured, or who is otherwise determined by a women's 
     health clinic or provider to need services.
       ``(c) Definitions.--In this section:
       ``(1) Eligible services.--The term `eligible services' 
     means any health care item or service for which medical 
     assistance is available under any State plan under this title 
     or under any waiver of any State plan that is in effect on 
     the date of enactment of this section.
       ``(2) Women's health clinic or provider defined.--The term 
     `women's health clinic or provider' means an entity, 
     including its affiliates, subsidiaries, successors, and 
     clinics that, as of the date of enactment of this section--
       ``(A) is an organization described in section 501(c)(3) of 
     the Internal Revenue Code of 1986 and exempt from tax under 
     section 501(a) of such Code;
       ``(B) is an essential community provider described in 
     section 156.235 of title 45, Code of Federal Regulations (as 
     in effect on such date of enactment), that is primarily 
     engaged in family planning services, reproductive health, and 
     related medical care; and
       ``(C) provides for abortions, other than an abortion--
       ``(i) if the pregnancy is the result of an act of rape or 
     incest; or
       ``(ii) in the case where a woman suffers from a physical 
     disorder, physical injury, or physical illness that would, as 
     certified by a physician, place the woman in danger of death 
     unless an abortion is performed, including a life-endangering 
     physical condition caused by or arising from the pregnancy 
     itself.
       ``(d) Applications, Determination of Payment Amounts, 
     Advance Payment.--
       ``(1) In general.--Not later than March 1, 2016, the 
     Secretary shall establish a process under which a women's 
     health provider may request payments from the Fund.
       ``(2) Determination of payment amounts; advance payment; 
     retrospective adjustment.--As part of the process established 
     under paragraph (1), the Secretary shall establish procedures 
     for--
       ``(A) ensuring that amounts available for making payments 
     from the Fund are equitably distributed among all the women's 
     health clinics or providers that apply for such payments for 
     a fiscal year;
       ``(B) making payments under this section for each quarter 
     of a fiscal year on the basis of advance estimates of 
     expenditures submitted by women's health clinics or providers 
     for such payments and such other investigation as the 
     Secretary may find necessary; and
       ``(C) making reductions or increases in the payments as 
     necessary to adjust for any overpayment or underpayment for 
     prior quarters of such fiscal year.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the Fund, 
     for expenditures from the Fund, $1,000,000,000 for the period 
     of fiscal years 2016 through 2025.
       ``(2) Funding limitation.--Amounts in the Fund shall be 
     available in advance of appropriations but only if the total 
     amount obligated from the Fund does not exceed the amount 
     available to the Fund under paragraph (1). The Secretary may 
     obligate funds from the Fund only if the Secretary determines 
     (and the Chief Actuary of the Centers for Medicare & Medicaid 
     Services and the appropriate budget officer certify) that 
     there are available in the Fund sufficient amounts to cover 
     all such obligations incurred consistent with the previous 
     sentence.''.

     SEC. 101B. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

       (a) In General.--Subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

          ``PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59A. Fair share tax.

     ``SEC. 59A. FAIR SHARE TAX.

       ``(a) General Rule.--
       ``(1) Impositition of tax.--In the case of any high-income 
     taxpayer, there is hereby imposed for a taxable year (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the product of--
       ``(A) the amount determined under paragraph (2), and
       ``(B) a fraction (not to exceed 1)--
       ``(i) the numerator of which is the excess of--

       ``(I) the taxpayer's adjusted gross income, over
       ``(II) the dollar amount in effect under subsection (c)(1), 
     and

       ``(ii) the denominator of which is the dollar amount in 
     effect under subsection (c)(1).
       ``(2) Amount of tax.--The amount of tax determined under 
     this paragraph is an amount equal to the excess (if any) of--
       ``(A) the tentative fair share tax for the taxable year, 
     over
       ``(B) the excess of--

[[Page 19374]]

       ``(i) the sum of--

       ``(I) the regular tax liability (as defined in section 
     26(b)) for the taxable year, determined without regard to any 
     tax liability determined under this section,
       ``(II) the tax imposed by section 55 for the taxable year, 
     plus
       ``(III) the payroll tax for the taxable year, over

       ``(ii) the credits allowable under part IV of subchapter A 
     (other than sections 27(a), 31, and 34).
       ``(b) Tentative Fair Share Tax.--For purposes of this 
     section--
       ``(1) In general.--The tentative fair share tax for the 
     taxable year is 30 percent of the excess of--
       ``(A) the adjusted gross income of the taxpayer, over
       ``(B) the modified charitable contribution deduction for 
     the taxable year.
       ``(2) Modified charitable contribution deduction.--For 
     purposes of paragraph (1)--
       ``(A) In general.--The modified charitable contribution 
     deduction for any taxable year is an amount equal to the 
     amount which bears the same ratio to the deduction allowable 
     under section 170 (section 642(c) in the case of a trust or 
     estate) for such taxable year as--
       ``(i) the amount of itemized deductions allowable under the 
     regular tax (as defined in section 55) for such taxable year, 
     determined after the application of section 68, bears to
       ``(ii) such amount, determined before the application of 
     section 68.
       ``(B) Taxpayer must itemize.--In the case of any individual 
     who does not elect to itemize deductions for the taxable 
     year, the modified charitable contribution deduction shall be 
     zero.
       ``(c) High-Income Taxpayer.--For purposes of this section--
       ``(1) In general.--The term `high-income taxpayer' means, 
     with respect to any taxable year, any taxpayer (other than a 
     corporation) with an adjusted gross income for such taxable 
     year in excess of $1,000,000 (50 percent of such amount in 
     the case of a married individual who files a separate 
     return).
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2016, the $1,000,000 amount under paragraph (1) shall 
     be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2015' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $10,000, such amount 
     shall be rounded to the next lowest multiple of $10,000.
       ``(d) Payroll Tax.--For purposes of this section, the 
     payroll tax for any taxable year is an amount equal to the 
     excess of--
       ``(1) the taxes imposed on the taxpayer under sections 
     1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax 
     is attributable to the rate of tax in effect under section 
     3101) with respect to such taxable year or wages or 
     compensation received during such taxable year, over
       ``(2) the deduction allowable under section 164(f) for such 
     taxable year.
       ``(e) Special Rule for Estates and Trusts.--For purposes of 
     this section, in the case of an estate or trust, adjusted 
     gross income shall be computed in the manner described in 
     section 67(e).
       ``(f) Not Treated as Tax Imposed by This Chapter for 
     Certain Purposes.--The tax imposed under this section shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter 
     (other than the credit allowed under section 27(a)) or for 
     purposes of section 55.''.
       (b) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 1 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new item:

         ``Part VII--Fair Share Tax on High-Income Taxpayers''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.
                                 ______
                                 
  SA 2877. Mr. LANKFORD submitted an amendment intended to be proposed 
by him to the bill H.R. 3762, to provide for reconciliation pursuant to 
section 2002 of the concurrent resolution on the budget for fiscal year 
2016; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. HEALTH CARE COMPACT PILOT PROGRAM.

       (a) Establishment.--The Secretary of Health and Human 
     Services (referred to in this section as the ``Secretary''), 
     acting through the Administrator of the Centers for Medicare 
     & Medicaid Services, shall establish a pilot program to 
     permit at least 5 States to enter into the health care 
     compact described in subsection (d).
       (b) Eligibility.--To be eligible to participate in the 
     pilot program established under subsection (a), a State shall 
     certify to the Secretary, that--
       (1) the State has, in a manner consistent with that State's 
     constitution, joined the Health Care Compact on or before 
     January 1, 2017;
       (2) all funds transferred to the State under subsection 
     (f)(5) will be expended only on health care as defined in 
     subsection (f)(1)(D); and
       (3) the State has appointed a member to the Interstate 
     Advisory Health Care Commission established under subsection 
     (f)(6).
       (c) Exclusions to Compact Consent.--Notwithstanding the 
     consent to the Health Care Compact granted under this 
     section, the powers granted to member States under paragraphs 
     (2), (3), and (4) of subsection (f) (the Health Care Compact) 
     shall not apply with regard to the agencies described in 
     subsection (d), and the Member State Base Funding Level and 
     Member State Current Year Funding Level shall not include 
     funds expended by such agencies.
       (d) Excluded Agencies.--The agencies described in this 
     subsection are--
       (1) the National Institutes for Health;
       (2) the Centers for Disease Control and Prevention; and
       (3) the Food and Drug Administration.
       (e) Request for Applications and Announcement of 
     Determinations.--
       (1) Applications.--Not later than January 1, 2017, the 
     Secretary shall publish a request for applications to 
     participate in the program established under subsection (a). 
     The period for accepting such applications shall close on 
     June 30, 2017.
       (2) Determinations.--Not later than December 31, 2017, the 
     Secretary shall notify States submitting applications under 
     paragraph (1) of the determinations of the Secretary with 
     respect to such applications.
       (f) Health Care Compact.--The health care compact described 
     in this subsection is as follows:
       (1) Definitions.--In this subsection:
       (A) Commission.--The term ``Commission'' means the 
     Interstate Advisory Health Care Commission established under 
     paragraph (6).
       (B) Compact.--The term ``Compact'' means the Compact 
     described in this subsection that is entered into by a State 
     under the program established under subsection (a).
       (C) Effective date.--The term ``effective date'' means the 
     date upon which this Compact shall become effective for 
     purposes of the operation of State and Federal law in a 
     Member State, which shall be the later of--
       (i) the date upon which this Compact shall be adopted under 
     the laws of the Member State; or
       (ii) the date upon which this Compact receives the consent 
     of Congress pursuant to Article I, Section 10, of the United 
     States Constitution, after at least two Member States adopt 
     this Compact.
       (D) Health care.--The term ``health care'' means care, 
     services, supplies, or plans related to the health of an 
     individual and includes--
       (i) preventive, diagnostic, therapeutic, rehabilitative, 
     maintenance, or palliative care and counseling, service, 
     assessment, or procedure with respect to the physical or 
     mental condition or functional status of an individual or 
     that affects the structure or function of the body;
       (ii) sale or dispensing of a drug, device, equipment, or 
     other item in accordance with a prescription; and
       (iii) an individual or group plan that provides, or pays 
     the cost of, care, services, or supplies related to the 
     health of an individual;

     except any care, services, supplies, or plans provided by the 
     Department of Defense and Department of Veteran Affairs, or 
     provided to Native Americans.
       (E) Member state.--The term ``member State'' means a State 
     that has--
       (i) an application for participation in the program 
     established under subsection (a) approved by the Secretary; 
     and
       (ii) adopted the Compact under the laws of that State.
       (F) Member state base funding level.--The term ``member 
     State base funding level'' means a number equal to the total 
     Federal spending on health care in the member State during 
     Federal fiscal year 2010. On or before the effective date, 
     each member State shall determine the member State base 
     funding level for its State, and that number shall be binding 
     upon that member State.
       (G) Member state current year funding level.--The term 
     ``member State current year funding level'' with respect to a 
     member State, means the member State base funding level 
     multiplied by the member State current year population 
     adjustment factor multiplied by the current year inflation 
     adjustment factor for the State.
       (H) Member state current year population adjustment 
     factor.--The term ``member State current year population 
     adjustment factor'' with respect to a member State, means the 
     average population of the member State in the current year 
     less the average population of the member State in Federal 
     fiscal year 2010, divided by the average population of the 
     member State in Federal fiscal year 2010, plus 1. The average 
     population in a member State shall be determined by the 
     United States Census Bureau.
       (I) Current year inflation adjustment factor.--The term 
     ``current year inflation adjustment factor'' means the total 
     gross domestic product deflator in the current year divided 
     by the total gross domestic product

[[Page 19375]]

     deflator in Federal fiscal year 2010. The total gross 
     domestic product deflator shall be determined by the Bureau 
     of Economic Analysis of the Department of Commerce.
       (2) Pledge.--The member States shall take joint and 
     separate action under this Compact to return the authority to 
     regulate health care to the member States consistent with the 
     goals and principles articulated in this Compact. The member 
     States shall improve health care policy within their 
     respective jurisdictions and according to the judgment and 
     discretion of each of the member States.
       (3) Legislative power.--The legislatures of the member 
     States have the primary responsibility to regulate health 
     care in their respective States under the Compact.
       (4) State control.--Each member State, within its State, 
     may suspend by legislation the operation of all Federal laws, 
     rules, regulations, and orders regarding health care that are 
     inconsistent with the laws and regulations adopted by the 
     member State pursuant to this Compact. Federal and State 
     laws, rules, regulations, and orders regarding health care 
     shall remain in effect unless a member State expressly 
     suspends such laws, rules, regulations and orders pursuant to 
     the authority provided under this Compact. For any Federal 
     law, rule, regulation, or order that remains in effect in a 
     member State under this paragraph after the effective date, 
     that member State shall be responsible for the associated 
     funding obligations in its State.
       (5) Funding.--
       (A) In general.--Each Federal fiscal year, each member 
     State shall have the right to Federal funds up to an amount 
     equal to its member State current year funding level for that 
     Federal fiscal year, provided by Congress as mandatory 
     spending and not subject to annual appropriation, to support 
     the exercise of member State authority under this Compact. 
     Such funding shall not be conditional on any action of or 
     regulation, policy, law, or rule being adopted by the member 
     State.
       (B) Initial funding level.--By the beginning of each 
     Federal fiscal year, Congress shall establish an initial 
     member State current year funding level for each member 
     State, based upon reasonable estimates. The final member 
     State current year funding level shall be calculated, and 
     funding shall be reconciled by Congress based upon 
     information provided by each member State and audited by the 
     Government Accountability Office.
       (6) Interstate advisory health care commission.--
       (A) Establishment.--There shall be established by the 
     members States an Interstate Advisory Health Care Commission 
     to be composed of members appointed by each member State 
     through a process to be determined by each member State. A 
     member State may not appoint more than two members to the 
     Commission and may withdraw membership from the Commission at 
     any time. Each Commission member shall be entitled to one 
     vote. The Commission shall not act unless a majority of the 
     members are present, and no action shall be binding unless 
     approved by a majority of the Commission's total membership.
       (B) Chairperson; bylaws; meetings.--The Commission shall 
     elect from among its membership a Chairperson. The Commission 
     may adopt and publish bylaws and policies that are not 
     inconsistent with the Compact. The Commission shall meet at 
     least once a year, and may meet more frequently.
       (C) Studies and recommendations.--The Commission may study 
     issues of health care regulation that are of particular 
     concern to the member States. The Commission may make non-
     binding recommendations to the member States. The 
     legislatures of the member States may consider such 
     recommendations in determining the appropriate health care 
     policies in their respective States.
       (D) Information and data.--The Commission shall collect 
     information and data to assist the member States in their 
     regulation of health care, including assessing the 
     performance of various State health care programs and 
     compiling information on the prices of health care. The 
     Commission shall make this information and data available to 
     the legislatures of the member States. Notwithstanding any 
     other provision in the Compact, no member State shall 
     disclose to the Commission the individually identifiable 
     health information of any individual, nor shall the 
     Commission disclose any such health information of any 
     individual.
       (E) Funding.--The Commission shall be funded by the member 
     States as agreed to by the member States. The Commission 
     shall have the responsibilities and duties as may be 
     conferred upon it by subsequent action of the respective 
     legislatures of the member States in accordance with the 
     terms of the Compact.
       (F) Limitation.--The Commission shall not take any action 
     within a member State that contravenes any State law of that 
     member State.
                                 ______
                                 
  SA 2878. Mr. TOOMEY (for himself and Mr. Coats) submitted an 
amendment intended to be proposed to amendment SA 2874 proposed by Mr. 
McConnell to the bill H.R. 3762, to provide for reconciliation pursuant 
to section 2002 of the concurrent resolution on the budget for fiscal 
year 2016; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:
  


     SEC. ___. REPEAL OF INCREASE IN MINIMUM DEDUCTION FOR 
                   MEDICAL, DENTAL, ETC., EXPENSES.

       (a) Allowance of Deduction.--Subsection (a) of section 213 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``10 percent'' and inserting ``7.5 percent''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.
                                 ______
                                 
  SA 2879. Mr. GARDNER submitted an amendment intended to be proposed 
by him to the bill H.R. 3762, to provide for reconciliation pursuant to 
section 2002 of the concurrent resolution on the budget for fiscal year 
2016; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EXPEDITED REPAYMENT OF LOANS BY CO-OPS.

       Section 1322(b)(3) of the Patient Protection and Affordable 
     Care Act (42 U.S.C. 18042(b)(3)) is amended by striking 
     ``loans shall'' and all that follows through ``15 years'' and 
     inserting ``loans and grants shall be repaid within 5 
     years''.
                                 ______
                                 
  SA 2880. Mr. GARDNER submitted an amendment intended to be proposed 
by him to the bill H.R. 3762, to provide for reconciliation pursuant to 
section 2002 of the concurrent resolution on the budget for fiscal year 
2016; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. LIMITATION ON CONSIDERING CERTAIN OBLIGATIONS IN THE 
                   SETTING OF PREMIUMS.

       A person that has received a loan under section 1322(b) of 
     the Patient Protection and Affordable Care Act (42 U.S.C. 
     18042(b)) shall not take into consideration any payments made 
     or received under sections 1341 and 1342 of such Act (42 
     U.S.C. 18061 and 18062) in their business plans in setting 
     the premium amounts for enrollment in health insurance 
     coverage offered by such person.
                                 ______
                                 
  SA 2881. Mr. DURBIN (for himself, Mr. Reed, Mr. Whitehouse, and Mr. 
Sanders) submitted an amendment intended to be proposed by him to the 
bill H.R. 3762, to provide for reconciliation pursuant to section 2002 
of the concurrent resolution on the budget for fiscal year 2016; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MODIFICATIONS TO RULES RELATING TO INVERTED 
                   CORPORATIONS.

       (a) In General.--Subsection (b) of section 7874 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Inverted Corporations Treated as Domestic 
     Corporations.--
       ``(1) In general.--Notwithstanding section 7701(a)(4), a 
     foreign corporation shall be treated for purposes of this 
     title as a domestic corporation if--
       ``(A) such corporation would be a surrogate foreign 
     corporation if subsection (a)(2) were applied by substituting 
     `80 percent' for `60 percent', or
       ``(B) such corporation is an inverted domestic corporation.
       ``(2) Inverted domestic corporation.--For purposes of this 
     subsection, a foreign corporation shall be treated as an 
     inverted domestic corporation if, pursuant to a plan (or a 
     series of related transactions)--
       ``(A) the entity completes after May 8, 2014, the direct or 
     indirect acquisition of--
       ``(i) substantially all of the properties held directly or 
     indirectly by a domestic corporation, or
       ``(ii) substantially all of the assets of, or substantially 
     all of the properties constituting a trade or business of, a 
     domestic partnership, and
       ``(B) after the acquisition, more than 50 percent of the 
     stock (by vote or value) of the entity is held--
       ``(i) in the case of an acquisition with respect to a 
     domestic corporation, by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation, or
       ``(ii) in the case of an acquisition with respect to a 
     domestic partnership, by former partners of the domestic 
     partnership by reason of holding a capital or profits 
     interest in the domestic partnership.
       ``(3) Exception for corporations with substantial business 
     activities in foreign country of organization.--A foreign 
     corporation described in paragraph (2) shall not be treated 
     as an inverted domestic corporation if after the acquisition 
     the expanded affiliated group which includes the entity has 
     substantial business activities in the foreign country in 
     which or under the law of which the entity is created or 
     organized when compared to the total business activities of 
     such

[[Page 19376]]

     expanded affiliated group. For purposes of subsection 
     (a)(2)(B)(iii) and the preceding sentence, the term 
     `substantial business activities' shall have the meaning 
     given such term under regulations in effect on May 8, 2014, 
     except that the Secretary may issue regulations increasing 
     the threshold percent in any of the tests under such 
     regulations for determining if business activities constitute 
     substantial business activities for purposes of this 
     paragraph.''.
       (b) Conforming Amendments.--
       (1) Clause (i) of section 7874(a)(2)(B) of such Code is 
     amended by striking ``after March 4, 2003,'' and inserting 
     ``after March 4, 2003, and before May 9, 2014,''.
       (2) Subsection (c) of section 7874 of such Code is 
     amended--
       (A) in paragraph (2)--
       (i) by striking ``subsection (a)(2)(B)(ii)'' and inserting 
     ``subsections (a)(2)(B)(ii) and (b)(2)(B)'', and
       (ii) by inserting ``or (b)(2)(A)'' after ``(a)(2)(B)(i)'' 
     in subparagraph (B),
       (B) in paragraph (3), by inserting ``or (b)(2)(B), as the 
     case may be,'' after ``(a)(2)(B)(ii)'',
       (C) in paragraph (5), by striking ``subsection 
     (a)(2)(B)(ii)'' and inserting ``subsections (a)(2)(B)(ii) and 
     (b)(2)(B)'', and
       (D) in paragraph (6), by inserting ``or inverted domestic 
     corporation, as the case may be,'' after ``surrogate foreign 
     corporation''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 8, 2014.
                                 ______
                                 
  SA 2882. Mr. HELLER submitted an amendment intended to be proposed to 
amendment SA 2874 proposed by Mr. McConnell to the bill H.R. 3762, to 
provide for reconciliation pursuant to section 2002 of the concurrent 
resolution on the budget for fiscal year 2016; which was ordered to lie 
on the table; as follows:

       On page 5, beginning with line 24, strike through page 6, 
     line 3.
                                 ______
                                 
  SA 2883. Mr. BROWN (for himself, Ms. Stabenow, Mr. Casey, Mr. Wyden, 
and Ms. Hirono) submitted an amendment intended to be proposed to 
amendment SA 2874 proposed by Mr. McConnell to the bill H.R. 3762, to 
provide for reconciliation pursuant to section 2002 of the concurrent 
resolution on the budget for fiscal year 2016; which was ordered to lie 
on the table; as follows:

       At the end of title I, add the following:

     SEC. 107. FMAP FOR THE MEDICAID EXPANSION POPULATION.

       Section 1905(y)(1) of the Social Security Act (42 U.S.C. 
     1396d(y)(1)) is amended by striking the semicolon after 
     ``2016'' and all that follows through ``2020''.

     SEC. 108. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

       (a) In General.--Subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

          ``PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59A. Fair share tax.

     ``SEC. 59A. FAIR SHARE TAX.

       ``(a) General Rule.--
       ``(1) Impositition of tax.--In the case of any high-income 
     taxpayer, there is hereby imposed for a taxable year (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the product of--
       ``(A) the amount determined under paragraph (2), and
       ``(B) a fraction (not to exceed 1)--
       ``(i) the numerator of which is the excess of--

       ``(I) the taxpayer's adjusted gross income, over
       ``(II) the dollar amount in effect under subsection (c)(1), 
     and

       ``(ii) the denominator of which is the dollar amount in 
     effect under subsection (c)(1).
       ``(2) Amount of tax.--The amount of tax determined under 
     this paragraph is an amount equal to the excess (if any) of--
       ``(A) the tentative fair share tax for the taxable year, 
     over
       ``(B) the excess of--
       ``(i) the sum of--

       ``(I) the regular tax liability (as defined in section 
     26(b)) for the taxable year, determined without regard to any 
     tax liability determined under this section,
       ``(II) the tax imposed by section 55 for the taxable year, 
     plus
       ``(III) the payroll tax for the taxable year, over

       ``(ii) the credits allowable under part IV of subchapter A 
     (other than sections 27(a), 31, and 34).
       ``(b) Tentative Fair Share Tax.--For purposes of this 
     section--
       ``(1) In general.--The tentative fair share tax for the 
     taxable year is 30 percent of the excess of--
       ``(A) the adjusted gross income of the taxpayer, over
       ``(B) the modified charitable contribution deduction for 
     the taxable year.
       ``(2) Modified charitable contribution deduction.--For 
     purposes of paragraph (1)--
       ``(A) In general.--The modified charitable contribution 
     deduction for any taxable year is an amount equal to the 
     amount which bears the same ratio to the deduction allowable 
     under section 170 (section 642(c) in the case of a trust or 
     estate) for such taxable year as--
       ``(i) the amount of itemized deductions allowable under the 
     regular tax (as defined in section 55) for such taxable year, 
     determined after the application of section 68, bears to
       ``(ii) such amount, determined before the application of 
     section 68.
       ``(B) Taxpayer must itemize.--In the case of any individual 
     who does not elect to itemize deductions for the taxable 
     year, the modified charitable contribution deduction shall be 
     zero.
       ``(c) High-Income Taxpayer.--For purposes of this section--
       ``(1) In general.--The term `high-income taxpayer' means, 
     with respect to any taxable year, any taxpayer (other than a 
     corporation) with an adjusted gross income for such taxable 
     year in excess of $1,000,000 (50 percent of such amount in 
     the case of a married individual who files a separate 
     return).
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2016, the $1,000,000 amount under paragraph (1) shall 
     be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2015' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $10,000, such amount 
     shall be rounded to the next lowest multiple of $10,000.
       ``(d) Payroll Tax.--For purposes of this section, the 
     payroll tax for any taxable year is an amount equal to the 
     excess of--
       ``(1) the taxes imposed on the taxpayer under sections 
     1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax 
     is attributable to the rate of tax in effect under section 
     3101) with respect to such taxable year or wages or 
     compensation received during such taxable year, over
       ``(2) the deduction allowable under section 164(f) for such 
     taxable year.
       ``(e) Special Rule for Estates and Trusts.--For purposes of 
     this section, in the case of an estate or trust, adjusted 
     gross income shall be computed in the manner described in 
     section 67(e).
       ``(f) Not Treated as Tax Imposed by This Chapter for 
     Certain Purposes.--The tax imposed under this section shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter 
     (other than the credit allowed under section 27(a)) or for 
     purposes of section 55.''.
       (b) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 1 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new item:

         ``Part VII--Fair Share Tax on High-Income Taxpayers''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 109. MODIFICATION OF LIMITATION ON EXCESSIVE 
                   REMUNERATION.

       (a) Repeal of Performance-based Compensation and Commission 
     Exceptions for Limitation on Excessive Remuneration.--
       (1) In general.--Paragraph (4) of section 162(m) of the 
     Internal Revenue Code of 1986 is amended by striking 
     subparagraphs (B) and (C) and by redesignating subparagraphs 
     (D) through (G) as subparagraphs (B) through (E), 
     respectively.
       (2) Conforming amendments.--
       (A) Section 162(m)(5) of such Code is amended--
       (i) by striking ``subparagraphs (B), (C), and (D) thereof'' 
     in subparagraph (E) and inserting ``subparagraph (B) 
     thereof'', and
       (ii) by striking ``subparagraphs (F) and (G)'' in 
     subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
       (B) Section 162(m)(6) of such Code is amended--
       (i) by striking ``subparagraphs (B), (C), and (D) thereof'' 
     in subparagraph (D) and inserting ``subparagraph (B) 
     thereof'', and
       (ii) by striking ``subparagraphs (F) and (G)'' in 
     subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
       (b) Expansion of Applicable Employer.--Paragraph (2) of 
     section 162(m) of the Internal Revenue Code of 1986 is 
     amended to read as follows:
       ``(2) Publicly held corporation.--For purposes of this 
     subsection, the term `publicly held corporation' means any 
     corporation which is an issuer (as defined in section 3 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78c))--
       ``(A) the securities of which are registered under section 
     12 of such Act (15 U.S.C. 78l), or
       ``(B) that is required to file reports under section 15(d) 
     of such Act (15 U.S.C. 78o(d)).''.
       (c) Application to All Current and Former Officers, 
     Directors, and Employees.--
       (1) In general.--Section 162(m) of the Internal Revenue 
     Code of 1986, as amended by subsection (a), is amended--

[[Page 19377]]

       (A) by striking ``covered employee'' each place it appears 
     in paragraphs (1) and (4) and inserting ``covered 
     individual'', and
       (B) by striking ``such employee'' each place it appears in 
     subparagraphs (A) and (E) of paragraph (4) and inserting 
     ``such individual''.
       (2) Covered individual.--Paragraph (3) of section 162(m) of 
     such Code is amended to read as follows:
       ``(3) Covered individual.--For purposes of this subsection, 
     the term `covered individual' means any individual who is an 
     officer, director, or employee of the taxpayer or a former 
     officer, director, or employee of the taxpayer.''.
       (3) Conforming amendments.--
       (A) Section 48D(b)(3)(A) of such Code is amended by 
     inserting ``(as in effect for taxable years beginning before 
     January 1, 2016)'' after ``section 162(m)(3)''.
       (B) Section 409A(b)(3)(D)(ii) of such Code is amended by 
     inserting ``(as in effect for taxable years beginning before 
     January 1, 2016)'' after ``section 162(m)(3)''.
       (d) Special Rule for Remuneration Paid to Beneficiaries, 
     etc.--Paragraph (4) of section 162(m), as amended by 
     subsection (a), is amended by adding at the end the following 
     new subparagraph:
       ``(F) Special rule for remuneration paid to beneficiaries, 
     etc.--Remuneration shall not fail to be applicable employee 
     remuneration merely because it is includible in the income 
     of, or paid to, a person other than the covered individual, 
     including after the death of the covered individual.''.
       (e) Regulatory Authority.--
       (1) In general.--Section 162(m) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(7) Regulations.--The Secretary may prescribe such 
     guidance, rules, or regulations, including with respect to 
     reporting, as are necessary to carry out the purposes of this 
     subsection.''.
       (2) Conforming amendment.--Paragraph (6) of section 162(m) 
     of such Code is amended by striking subparagraph (H).
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. 110. MODIFICATIONS TO RULES RELATING TO INVERTED 
                   CORPORATIONS.

       (a) In General.--Subsection (b) of section 7874 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Inverted Corporations Treated as Domestic 
     Corporations.--
       ``(1) In general.--Notwithstanding section 7701(a)(4), a 
     foreign corporation shall be treated for purposes of this 
     title as a domestic corporation if--
       ``(A) such corporation would be a surrogate foreign 
     corporation if subsection (a)(2) were applied by substituting 
     `80 percent' for `60 percent', or
       ``(B) such corporation is an inverted domestic corporation.
       ``(2) Inverted domestic corporation.--For purposes of this 
     subsection, a foreign corporation shall be treated as an 
     inverted domestic corporation if, pursuant to a plan (or a 
     series of related transactions)--
       ``(A) the entity completes after May 8, 2014, the direct or 
     indirect acquisition of--
       ``(i) substantially all of the properties held directly or 
     indirectly by a domestic corporation, or
       ``(ii) substantially all of the assets of, or substantially 
     all of the properties constituting a trade or business of, a 
     domestic partnership, and
       ``(B) after the acquisition, more than 50 percent of the 
     stock (by vote or value) of the entity is held--
       ``(i) in the case of an acquisition with respect to a 
     domestic corporation, by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation, or
       ``(ii) in the case of an acquisition with respect to a 
     domestic partnership, by former partners of the domestic 
     partnership by reason of holding a capital or profits 
     interest in the domestic partnership.
       ``(3) Exception for corporations with substantial business 
     activities in foreign country of organization.--A foreign 
     corporation described in paragraph (2) shall not be treated 
     as an inverted domestic corporation if after the acquisition 
     the expanded affiliated group which includes the entity has 
     substantial business activities in the foreign country in 
     which or under the law of which the entity is created or 
     organized when compared to the total business activities of 
     such expanded affiliated group. For purposes of subsection 
     (a)(2)(B)(iii) and the preceding sentence, the term 
     `substantial business activities' shall have the meaning 
     given such term under regulations in effect on May 8, 2014, 
     except that the Secretary may issue regulations increasing 
     the threshold percent in any of the tests under such 
     regulations for determining if business activities constitute 
     substantial business activities for purposes of this 
     paragraph.''.
       (b) Conforming Amendments.--
       (1) Clause (i) of section 7874(a)(2)(B) of such Code is 
     amended by striking ``after March 4, 2003,'' and inserting 
     ``after March 4, 2003, and before May 9, 2014,''.
       (2) Subsection (c) of section 7874 of such Code is 
     amended--
       (A) in paragraph (2)--
       (i) by striking ``subsection (a)(2)(B)(ii)'' and inserting 
     ``subsections (a)(2)(B)(ii) and (b)(2)(B)'', and
       (ii) by inserting ``or (b)(2)(A)'' after ``(a)(2)(B)(i)'' 
     in subparagraph (B),
       (B) in paragraph (3), by inserting ``or (b)(2)(B), as the 
     case may be,'' after ``(a)(2)(B)(ii)'',
       (C) in paragraph (5), by striking ``subsection 
     (a)(2)(B)(ii)'' and inserting ``subsections (a)(2)(B)(ii) and 
     (b)(2)(B)'', and
       (D) in paragraph (6), by inserting ``or inverted domestic 
     corporation, as the case may be,'' after ``surrogate foreign 
     corporation''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 8, 2014.
                                 ______
                                 
  SA 2884. Mr. McCAIN (for himself and Ms. Klobuchar) submitted an 
amendment intended to be proposed to amendment SA 2874 proposed by Mr. 
McConnell to the bill H.R. 3762, to provide for reconciliation pursuant 
to section 2002 of the concurrent resolution on the budget for fiscal 
year 2016; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. SAFE AND AFFORDABLE DRUGS FROM CANADA.

       Chapter VIII of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 381 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 810. IMPORTATION BY INDIVIDUALS OF PRESCRIPTION DRUGS 
                   FROM CANADA.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, not later than 180 days after the date of enactment 
     of this section, the Secretary shall promulgate regulations 
     permitting individuals to safely import into the United 
     States a prescription drug described in subsection (b).
       ``(b) Prescription Drug.--A prescription drug described in 
     this subsection--
       ``(1) is a prescription drug that--
       ``(A) is purchased from an approved Canadian pharmacy;
       ``(B) is dispensed by a pharmacist licensed to practice 
     pharmacy and dispense prescription drugs in Canada;
       ``(C) is purchased for personal use by the individual, not 
     for resale, in quantities that do not exceed a 90-day supply;
       ``(D) is filled using a valid prescription issued by a 
     physician licensed to practice in a State in the United 
     States; and
       ``(E) has the same active ingredient or ingredients, route 
     of administration, dosage form, and strength as a 
     prescription drug approved by the Secretary under chapter V; 
     and
       ``(2) does not include--
       ``(A) a controlled substance (as defined in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802));
       ``(B) a biological product (as defined in section 351 of 
     the Public Health Service Act (42 U.S.C. 262));
       ``(C) an infused drug (including a peritoneal dialysis 
     solution);
       ``(D) an intravenously injected drug;
       ``(E) a drug that is inhaled during surgery;
       ``(F) a parenteral drug;
       ``(G) a drug manufactured through 1 or more biotechnology 
     processes, including--
       ``(i) a therapeutic DNA plasmid product;
       ``(ii) a therapeutic synthetic peptide product of not more 
     than 40 amino acids;
       ``(iii) a monoclonal antibody product for in vivo use; and
       ``(iv) a therapeutic recombinant DNA-derived product;
       ``(H) a drug required to be refrigerated at any time during 
     manufacturing, packing, processing, or holding; or
       ``(I) a photoreactive drug.
       ``(c) Approved Canadian Pharmacy.--
       ``(1) In general.--In this section, an approved Canadian 
     pharmacy is a pharmacy that--
       ``(A) is located in Canada; and
       ``(B) that the Secretary certifies--
       ``(i) is licensed to operate and dispense prescription 
     drugs to individuals in Canada; and
       ``(ii) meets the criteria under paragraph (3).
       ``(2) Publication of approved canadian pharmacies.--The 
     Secretary shall publish on the Internet Web site of the Food 
     and Drug Administration a list of approved Canadian 
     pharmacies, including the Internet Web site address of each 
     such approved Canadian pharmacy, from which individuals may 
     purchase prescription drugs in accordance with subsection 
     (a).
       ``(3) Additional criteria.--To be an approved Canadian 
     pharmacy, the Secretary shall certify that the pharmacy--
       ``(A) has been in existence for a period of at least 5 
     years preceding the date of such certification and has a 
     purpose other than to participate in the program established 
     under this section;
       ``(B) operates in accordance with pharmacy standards set 
     forth by the provincial pharmacy rules and regulations 
     enacted in Canada;
       ``(C) has processes established by the pharmacy, or 
     participates in another established process, to certify that 
     the physical premises and data reporting procedures and 
     licenses

[[Page 19378]]

     are in compliance with all applicable laws and regulations, 
     and has implemented policies designed to monitor ongoing 
     compliance with such laws and regulations;
       ``(D) conducts or commits to participate in ongoing and 
     comprehensive quality assurance programs and implements such 
     quality assurance measures, including blind testing, to 
     ensure the veracity and reliability of the findings of the 
     quality assurance program;
       ``(E) agrees that laboratories approved by the Secretary 
     shall be used to conduct product testing to determine the 
     safety and efficacy of sample pharmaceutical products;
       ``(F) has established, or will establish or participate in, 
     a process for resolving grievances and will be held 
     accountable for violations of established guidelines and 
     rules;
       ``(G) does not resell products from online pharmacies 
     located outside Canada to customers in the United States; and
       ``(H) meets any other criteria established by the 
     Secretary.''.
                                 ______
                                 
  SA 2885. Ms. COLLINS (for herself, Ms. Murkowski, and Mr. Kirk) 
submitted an amendment intended to be proposed to amendment SA 2874 
proposed by Mr. McConnell to the bill H.R. 3762, to provide for 
reconciliation pursuant to section 2002 of the concurrent resolution on 
the budget for fiscal year 2016; which was ordered to lie on the table; 
as follows:

       Strike section 101.
                                 ______
                                 
  SA 2886. Mr. REID submitted an amendment intended to be proposed by 
him to the bill H.R. 3762, to provide for reconciliation pursuant to 
section 2002 of the concurrent resolution on the budget for fiscal year 
2016; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROHIBITION ON FIREARM POSSESSION.

       Section 922 of title 18, United States Code, is amended--
       (1) in subsection (d)(9), by inserting ``or of a 
     misdemeanor offense described in section 248(a) that involves 
     force, the threat of force, or violent physical obstruction'' 
     before the period at the end; and
       (2) in subsection (g)(9), by inserting ``or of a 
     misdemeanor offense described in section 248(a) that involves 
     force, the threat of force, or violent physical obstruction'' 
     before the comma at the end.
                                 ______
                                 
  SA 2887. Ms. HIRONO (for herself and Mr. Brown) submitted an 
amendment intended to be proposed by her to the bill H.R. 3762, to 
provide for reconciliation pursuant to section 2002 of the concurrent 
resolution on the budget for fiscal year 2016; which was ordered to lie 
on the table; as follows:

       At the end of the bill, add the following:

     SEC. ____. FEDERAL PELL GRANTS.

       Section 401(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a(b)) is amended--
       (1) in paragraph (2)(A), by striking ``The amount'' and 
     inserting ``Except as provided in paragraph (8), the 
     amount''; and
       (2) by adding at the end the following:
       ``(8) Mandatory funding for fiscal years 2016 through 
     2020.--
       ``(A) In general.--For each of fiscal years 2016 through 
     2020, there are authorized to be appropriated, and there are 
     appropriated $26,354,000,000 to carry out this section, which 
     amount shall be increased for each of such fiscal years by a 
     percentage equal to the percentage change in the Consumer 
     Price Index (as determined by the Secretary, using the 
     definition in section 478(f)) for the most recent calendar 
     year ending prior to the beginning of that fiscal year.
       ``(B) Prohibition of discretionary appropriations.--No 
     funds other than funds provided under subparagraph (A) shall 
     be appropriated to carry out this section for the period of 
     fiscal years described in subparagraph (A).''.

     SEC. ___. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT 
                   MANAGEMENT SERVICES TO PARTNERSHIPS.

       (a) In General.--Part I of subchapter K of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new section:

     ``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT 
                   MANAGEMENT SERVICES TO PARTNERSHIPS.

       ``(a) Treatment of Distributive Share of Partnership 
     Items.--For purposes of this title, in the case of an 
     investment services partnership interest--
       ``(1) In general.--Notwithstanding section 702(b)--
       ``(A) an amount equal to the net capital gain with respect 
     to such interest for any partnership taxable year shall be 
     treated as ordinary income, and
       ``(B) subject to the limitation of paragraph (2), an amount 
     equal to the net capital loss with respect to such interest 
     for any partnership taxable year shall be treated as an 
     ordinary loss.
       ``(2) Recharacterization of losses limited to 
     recharacterized gains.--The amount treated as ordinary loss 
     under paragraph (1)(B) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(A) the aggregate amount treated as ordinary income under 
     paragraph (1)(A) with respect to the investment services 
     partnership interest for all preceding partnership taxable 
     years to which this section applies, over
       ``(B) the aggregate amount treated as ordinary loss under 
     paragraph (1)(B) with respect to such interest for all 
     preceding partnership taxable years to which this section 
     applies.
       ``(3) Allocation to items of gain and loss.--
       ``(A) Net capital gain.--The amount treated as ordinary 
     income under paragraph (1)(A) shall be allocated ratably 
     among the items of long-term capital gain taken into account 
     in determining such net capital gain.
       ``(B) Net capital loss.--The amount treated as ordinary 
     loss under paragraph (1)(B) shall be allocated ratably among 
     the items of long-term capital loss and short-term capital 
     loss taken into account in determining such net capital loss.
       ``(4) Terms relating to capital gains and losses.--For 
     purposes of this section--
       ``(A) In general.--Net capital gain, long-term capital 
     gain, and long-term capital loss, with respect to any 
     investment services partnership interest for any taxable 
     year, shall be determined under section 1222, except that 
     such section shall be applied--
       ``(i) without regard to the recharacterization of any item 
     as ordinary income or ordinary loss under this section,
       ``(ii) by only taking into account items of gain and loss 
     taken into account by the holder of such interest under 
     section 702 (other than subsection (a)(9) thereof) with 
     respect to such interest for such taxable year, and
       ``(iii) by treating property which is taken into account in 
     determining gains and losses to which section 1231 applies as 
     capital assets held for more than 1 year.
       ``(B) Net capital loss.--The term `net capital loss' means 
     the excess of the losses from sales or exchanges of capital 
     assets over the gains from such sales or exchanges. Rules 
     similar to the rules of clauses (i) through (iii) of 
     subparagraph (A) shall apply for purposes of the preceding 
     sentence.
       ``(5) Special rule for dividends.--Any dividend allocated 
     with respect to any investment services partnership interest 
     shall not be treated as qualified dividend income for 
     purposes of section 1(h).
       ``(6) Special rule for qualified small business stock.--
     Section 1202 shall not apply to any gain from the sale or 
     exchange of qualified small business stock (as defined in 
     section 1202(c)) allocated with respect to any investment 
     services partnership interest.
       ``(b) Dispositions of Partnership Interests.--
       ``(1) Gain.--
       ``(A) In general.--Any gain on the disposition of an 
     investment services partnership interest shall be--
       ``(i) treated as ordinary income, and
       ``(ii) recognized notwithstanding any other provision of 
     this subtitle.
       ``(B) Gift and transfers at death.--In the case of a 
     disposition of an investment services partnership interest by 
     gift or by reason of death of the taxpayer--
       ``(i) subparagraph (A) shall not apply,
       ``(ii) such interest shall be treated as an investment 
     services partnership interest in the hands of the person 
     acquiring such interest, and
       ``(iii) any amount that would have been treated as ordinary 
     income under this subsection had the decedent sold such 
     interest immediately before death shall be treated as an item 
     of income in respect of a decedent under section 691.
       ``(2) Loss.--Any loss on the disposition of an investment 
     services partnership interest shall be treated as an ordinary 
     loss to the extent of the excess (if any) of--
       ``(A) the aggregate amount treated as ordinary income under 
     subsection (a) with respect to such interest for all 
     partnership taxable years to which this section applies, over
       ``(B) the aggregate amount treated as ordinary loss under 
     subsection (a) with respect to such interest for all 
     partnership taxable years to which this section applies.
       ``(3) Election with respect to certain exchanges.--
     Paragraph (1)(A)(ii) shall not apply to the contribution of 
     an investment services partnership interest to a partnership 
     in exchange for an interest in such partnership if--
       ``(A) the taxpayer makes an irrevocable election to treat 
     the partnership interest received in the exchange as an 
     investment services partnership interest, and
       ``(B) the taxpayer agrees to comply with such reporting and 
     recordkeeping requirements as the Secretary may prescribe.
       ``(4) Distributions of partnership property.--
       ``(A) In general.--In the case of any distribution of 
     property by a partnership with respect to any investment 
     services partnership interest held by a partner, the partner 
     receiving such property shall recognize gain equal to the 
     excess (if any) of--
       ``(i) the fair market value of such property at the time of 
     such distribution, over
       ``(ii) the adjusted basis of such property in the hands of 
     such partner (determined without regard to subparagraph (C)).
       ``(B) Treatment of gain as ordinary income.--Any gain 
     recognized by such partner

[[Page 19379]]

     under subparagraph (A) shall be treated as ordinary income to 
     the same extent and in the same manner as the increase in 
     such partner's distributive share of the taxable income of 
     the partnership would be treated under subsection (a) if, 
     immediately prior to the distribution, the partnership had 
     sold the distributed property at fair market value and all of 
     the gain from such disposition were allocated to such 
     partner. For purposes of applying subsection (a)(2), any gain 
     treated as ordinary income under this subparagraph shall be 
     treated as an amount treated as ordinary income under 
     subsection (a)(1)(A).
       ``(C) Adjustment of basis.--In the case of a distribution 
     to which subparagraph (A) applies, the basis of the 
     distributed property in the hands of the distributee partner 
     shall be the fair market value of such property.
       ``(D) Special rules with respect to mergers, divisions, and 
     technical terminations.--In the case of a taxpayer which 
     satisfies requirements similar to the requirements of 
     subparagraphs (A) and (B) of paragraph (3), this paragraph 
     and paragraph (1)(A)(ii) shall not apply to the distribution 
     of a partnership interest if such distribution is in 
     connection with a contribution (or deemed contribution) of 
     any property of the partnership to which section 721 applies 
     pursuant to a transaction described in paragraph (1)(B) or 
     (2) of section 708(b).
       ``(c) Investment Services Partnership Interest.--For 
     purposes of this section--
       ``(1) In general.--The term `investment services 
     partnership interest' means any interest in an investment 
     partnership acquired or held by any person in connection with 
     the conduct of a trade or business described in paragraph (2) 
     by such person (or any person related to such person). An 
     interest in an investment partnership held by any person--
       ``(A) shall not be treated as an investment services 
     partnership interest for any period before the first date on 
     which it is so held in connection with such a trade or 
     business,
       ``(B) shall not cease to be an investment services 
     partnership interest merely because such person holds such 
     interest other than in connection with such a trade or 
     business, and
       ``(C) shall be treated as an investment services 
     partnership interest if acquired from a related person in 
     whose hands such interest was an investment services 
     partnership interest.
       ``(2) Businesses to which this section applies.--A trade or 
     business is described in this paragraph if such trade or 
     business primarily involves the performance of any of the 
     following services with respect to assets held (directly or 
     indirectly) by one or more investment partnerships referred 
     to in paragraph (1):
       ``(A) Advising as to the advisability of investing in, 
     purchasing, or selling any specified asset.
       ``(B) Managing, acquiring, or disposing of any specified 
     asset.
       ``(C) Arranging financing with respect to acquiring 
     specified assets.
       ``(D) Any activity in support of any service described in 
     subparagraphs (A) through (C).
       ``(3) Investment partnership.--
       ``(A) In general.--The term `investment partnership' means 
     any partnership if, at the end of any two consecutive 
     calendar quarters ending after the date of enactment of this 
     section--
       ``(i) substantially all of the assets of the partnership 
     are specified assets (determined without regard to any 
     section 197 intangible within the meaning of section 197(d)), 
     and
       ``(ii) less than 75 percent of the capital of the 
     partnership is attributable to qualified capital interests 
     which constitute property held in connection with a trade or 
     business of the owner of such interest.
       ``(B) Look-through of certain wholly owned entities for 
     purposes of determining assets of the partnership.--
       ``(i) In general.--For purposes of determining the assets 
     of a partnership under subparagraph (A)(i)--

       ``(I) any interest in a specified entity shall not be 
     treated as an asset of such partnership, and
       ``(II) such partnership shall be treated as holding its 
     proportionate share of each of the assets of such specified 
     entity.

       ``(ii) Specified entity.--For purposes of clause (i), the 
     term `specified entity' means, with respect to any 
     partnership (hereafter referred to as the upper-tier 
     partnership), any person which engages in the same trade or 
     business as the upper-tier partnership and is--

       ``(I) a partnership all of the capital and profits 
     interests of which are held directly or indirectly by the 
     upper-tier partnership, or
       ``(II) a foreign corporation which does not engage in a 
     trade or business in the United States and all of the stock 
     of which is held directly or indirectly by the upper-tier 
     partnership.

       ``(C) Special rules for determining if property held in 
     connection with trade or business.--
       ``(i) In general.--Except as otherwise provided by the 
     Secretary, solely for purposes of determining whether any 
     interest in a partnership constitutes property held in 
     connection with a trade or business under subparagraph 
     (A)(ii)--

       ``(I) a trade or business of any person closely related to 
     the owner of such interest shall be treated as a trade or 
     business of such owner,
       ``(II) such interest shall be treated as held by a person 
     in connection with a trade or business during any taxable 
     year if such interest was so held by such person during any 3 
     taxable years preceding such taxable year, and
       ``(III) paragraph (5)(B) shall not apply.

       ``(ii) Closely related persons.--For purposes of clause 
     (i)(I), a person shall be treated as closely related to 
     another person if, taking into account the rules of section 
     267(c), the relationship between such persons is described 
     in--

       ``(I) paragraph (1) or (9) of section 267(b), or
       ``(II) section 267(b)(4), but solely in the case of a trust 
     with respect to which each current beneficiary is the grantor 
     or a person whose relationship to the grantor is described in 
     paragraph (1) or (9) of section 267(b).

       ``(D) Antiabuse rules.--The Secretary may issue regulations 
     or other guidance which prevent the avoidance of the purposes 
     of subparagraph (A), including regulations or other guidance 
     which treat convertible and contingent debt (and other debt 
     having the attributes of equity) as a capital interest in the 
     partnership.
       ``(E) Controlled groups of entities.--
       ``(i) In general.--In the case of a controlled group of 
     entities, if an interest in the partnership received in 
     exchange for a contribution to the capital of the partnership 
     by any member of such controlled group would (in the hands of 
     such member) constitute property held in connection with a 
     trade or business, then any interest in such partnership held 
     by any member of such group shall be treated for purposes of 
     subparagraph (A) as constituting (in the hands of such 
     member) property held in connection with a trade or business.
       ``(ii) Controlled group of entities.--For purposes of 
     clause (i), the term `controlled group of entities' means a 
     controlled group of corporations as defined in section 
     1563(a)(1), applied without regard to subsections (a)(4) and 
     (b)(2) of section 1563. A partnership or any other entity 
     (other than a corporation) shall be treated as a member of a 
     controlled group of entities if such entity is controlled 
     (within the meaning of section 954(d)(3)) by members of such 
     group (including any entity treated as a member of such group 
     by reason of this sentence).
       ``(F) Special rule for corporations.--For purposes of this 
     paragraph, in the case of a corporation, the determination of 
     whether property is held in connection with a trade or 
     business shall be determined as if the taxpayer were an 
     individual.
       ``(4) Specified asset.--The term `specified asset' means 
     securities (as defined in section 475(c)(2) without regard to 
     the last sentence thereof), real estate held for rental or 
     investment, interests in partnerships, commodities (as 
     defined in section 475(e)(2)), cash or cash equivalents, or 
     options or derivative contracts with respect to any of the 
     foregoing.
       ``(5) Related persons.--
       ``(A) In general.--A person shall be treated as related to 
     another person if the relationship between such persons is 
     described in section 267(b) or 707(b).
       ``(B) Attribution of partner services.--Any service 
     described in paragraph (2) which is provided by a partner of 
     a partnership shall be treated as also provided by such 
     partnership.
       ``(d) Exception for Certain Capital Interests.--
       ``(1) In general.--In the case of any portion of an 
     investment services partnership interest which is a qualified 
     capital interest, all items of gain and loss (and any 
     dividends) which are allocated to such qualified capital 
     interest shall not be taken into account under subsection (a) 
     if--
       ``(A) allocations of items are made by the partnership to 
     such qualified capital interest in the same manner as such 
     allocations are made to other qualified capital interests 
     held by partners who do not provide any services described in 
     subsection (c)(2) and who are not related to the partner 
     holding the qualified capital interest, and
       ``(B) the allocations made to such other interests are 
     significant compared to the allocations made to such 
     qualified capital interest.
       ``(2) Authority to provide exceptions to allocation 
     requirements.--To the extent provided by the Secretary in 
     regulations or other guidance--
       ``(A) Allocations to portion of qualified capital 
     interest.--Paragraph (1) may be applied separately with 
     respect to a portion of a qualified capital interest.
       ``(B) No or insignificant allocations to nonservice 
     providers.--In any case in which the requirements of 
     paragraph (1)(B) are not satisfied, items of gain and loss 
     (and any dividends) shall not be taken into account under 
     subsection (a) to the extent that such items are properly 
     allocable under such regulations or other guidance to 
     qualified capital interests.
       ``(C) Allocations to service providers' qualified capital 
     interests which are less than other allocations.--Allocations 
     shall not be treated as failing to meet the requirement of 
     paragraph (1)(A) merely because the allocations to the 
     qualified capital interest represent a lower return than the 
     allocations

[[Page 19380]]

     made to the other qualified capital interests referred to in 
     such paragraph.
       ``(3) Special rule for changes in services and capital 
     contributions.--In the case of an interest in a partnership 
     which was not an investment services partnership interest and 
     which, by reason of a change in the services with respect to 
     assets held (directly or indirectly) by the partnership or by 
     reason of a change in the capital contributions to such 
     partnership, becomes an investment services partnership 
     interest, the qualified capital interest of the holder of 
     such partnership interest immediately after such change shall 
     not, for purposes of this subsection, be less than the fair 
     market value of such interest (determined immediately before 
     such change).
       ``(4) Special rule for tiered partnerships.--Except as 
     otherwise provided by the Secretary, in the case of tiered 
     partnerships, all items which are allocated in a manner which 
     meets the requirements of paragraph (1) to qualified capital 
     interests in a lower-tier partnership shall retain such 
     character to the extent allocated on the basis of qualified 
     capital interests in any upper-tier partnership.
       ``(5) Exception for no-self-charged carry and management 
     fee provisions.--Except as otherwise provided by the 
     Secretary, an interest shall not fail to be treated as 
     satisfying the requirement of paragraph (1)(A) merely because 
     the allocations made by the partnership to such interest do 
     not reflect the cost of services described in subsection 
     (c)(2) which are provided (directly or indirectly) to the 
     partnership by the holder of such interest (or a related 
     person).
       ``(6) Special rule for dispositions.--In the case of any 
     investment services partnership interest any portion of which 
     is a qualified capital interest, subsection (b) shall not 
     apply to so much of any gain or loss as bears the same 
     proportion to the entire amount of such gain or loss as--
       ``(A) the distributive share of gain or loss that would 
     have been allocated to the qualified capital interest 
     (consistent with the requirements of paragraph (1)) if the 
     partnership had sold all of its assets at fair market value 
     immediately before the disposition, bears to
       ``(B) the distributive share of gain or loss that would 
     have been so allocated to the investment services partnership 
     interest of which such qualified capital interest is a part.
       ``(7) Qualified capital interest.--For purposes of this 
     section--
       ``(A) In general.--The term `qualified capital interest' 
     means so much of a partner's interest in the capital of the 
     partnership as is attributable to--
       ``(i) the fair market value of any money or other property 
     contributed to the partnership in exchange for such interest 
     (determined without regard to section 752(a)),
       ``(ii) any amounts which have been included in gross income 
     under section 83 with respect to the transfer of such 
     interest, and
       ``(iii) the excess (if any) of--

       ``(I) any items of income and gain taken into account under 
     section 702 with respect to such interest, over
       ``(II) any items of deduction and loss so taken into 
     account.

       ``(B) Adjustment to qualified capital interest.--
       ``(i) Distributions and losses.--The qualified capital 
     interest shall be reduced by distributions from the 
     partnership with respect to such interest and by the excess 
     (if any) of the amount described in subparagraph (A)(iii)(II) 
     over the amount described in subparagraph (A)(iii)(I).
       ``(ii) Special rule for contributions of property.--In the 
     case of any contribution of property described in 
     subparagraph (A)(i) with respect to which the fair market 
     value of such property is not equal to the adjusted basis of 
     such property immediately before such contribution, proper 
     adjustments shall be made to the qualified capital interest 
     to take into account such difference consistent with such 
     regulations or other guidance as the Secretary may provide.
       ``(C) Technical terminations, etc., disregarded.--No 
     increase or decrease in the qualified capital interest of any 
     partner shall result from a termination, merger, 
     consolidation, or division described in section 708, or any 
     similar transaction.
       ``(8) Treatment of certain loans.--
       ``(A) Proceeds of partnership loans not treated as 
     qualified capital interest of service providing partners.--
     For purposes of this subsection, an investment services 
     partnership interest shall not be treated as a qualified 
     capital interest to the extent that such interest is acquired 
     in connection with the proceeds of any loan or other advance 
     made or guaranteed, directly or indirectly, by any other 
     partner or the partnership (or any person related to any such 
     other partner or the partnership). The preceding sentence 
     shall not apply to the extent the loan or other advance is 
     repaid before the date of the enactment of this section 
     unless such repayment is made with the proceeds of a loan or 
     other advance described in the preceding sentence.

       ``(B) Reduction in allocations to qualified capital 
     interests for loans from nonservice-providing partners to the 
     partnership.--For purposes of this subsection, any loan or 
     other advance to the partnership made or guaranteed, directly 
     or indirectly, by a partner not providing services described 
     in subsection (c)(2) to the partnership (or any person 
     related to such partner) shall be taken into account in 
     determining the qualified capital interests of the partners 
     in the partnership.
       ``(9) Special rule for qualified family partnerships.--
       ``(A) In general.--In the case of any specified family 
     partnership interest, paragraph (1)(A) shall be applied 
     without regard to the phrase `and who are not related to the 
     partner holding the qualified capital interest'.
       ``(B) Specified family partnership interest.--For purposes 
     of this paragraph, the term `specified family partnership 
     interest' means any investment services partnership interest 
     if--
       ``(i) such interest is an interest in a qualified family 
     partnership,
       ``(ii) such interest is held by a natural person or by a 
     trust with respect to which each beneficiary is a grantor or 
     a person whose relationship to the grantor is described in 
     section 267(b)(1), and
       ``(iii) all other interests in such qualified family 
     partnership with respect to which significant allocations are 
     made (within the meaning of paragraph (1)(B) and in 
     comparison to the allocations made to the interest described 
     in clause (ii)) are held by persons who--

       ``(I) are related to the natural person or trust referred 
     to in clause (ii), or
       ``(II) provide services described in subsection (c)(2).

       ``(C) Qualified family partnership.--For purposes of this 
     paragraph, the term `qualified family partnership' means any 
     partnership if--
       ``(i) all of the capital and profits interests of such 
     partnership are held by--

       ``(I) specified family members,
       ``(II) any person closely related (within the meaning of 
     subsection (c)(3)(C)(ii)) to a specified family member, or
       ``(III) any other person (not described in subclause (I) or 
     (II)) if such interest is an investment services partnership 
     interest with respect to such person, and

       ``(ii) such partnership does not hold itself out to the 
     public as an investment advisor.
       ``(D) Specified family members.--For purposes of 
     subparagraph (C), individuals shall be treated as specified 
     family members if such individuals would be treated as one 
     person under the rules of section 1361(c)(1) if the 
     applicable date (within the meaning of subparagraph (B)(iii) 
     thereof) were the latest of--
       ``(i) the date of the establishment of the partnership,
       ``(ii) the earliest date that the common ancestor holds a 
     capital or profits interest in the partnership, or
       ``(iii) the date of the enactment of this section.
       ``(e) Other Income and Gain in Connection With Investment 
     Management Services.--
       ``(1) In general.--If--
       ``(A) a person performs (directly or indirectly) investment 
     management services for any investment entity,
       ``(B) such person holds (directly or indirectly) a 
     disqualified interest with respect to such entity, and
       ``(C) the value of such interest (or payments thereunder) 
     is substantially related to the amount of income or gain 
     (whether or not realized) from the assets with respect to 
     which the investment management services are performed,

     any income or gain with respect to such interest shall be 
     treated as ordinary income. Rules similar to the rules of 
     subsections (a)(5) and (d) shall apply for purposes of this 
     subsection.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) Disqualified interest.--
       ``(i) In general.--The term `disqualified interest' means, 
     with respect to any investment entity--

       ``(I) any interest in such entity other than indebtedness,
       ``(II) convertible or contingent debt of such entity,
       ``(III) any option or other right to acquire property 
     described in subclause (I) or (II), and
       ``(IV) any derivative instrument entered into (directly or 
     indirectly) with such entity or any investor in such entity.

       ``(ii) Exceptions.--Such term shall not include--

       ``(I) a partnership interest,
       ``(II) except as provided by the Secretary, any interest in 
     a taxable corporation, and
       ``(III) except as provided by the Secretary, stock in an S 
     corporation.

       ``(B) Taxable corporation.--The term `taxable corporation' 
     means--
       ``(i) a domestic C corporation, or
       ``(ii) a foreign corporation substantially all of the 
     income of which is--

       ``(I) effectively connected with the conduct of a trade or 
     business in the United States, or
       ``(II) subject to a comprehensive foreign income tax (as 
     defined in section 457A(d)(2)).

       ``(C) Investment management services.--The term `investment 
     management services' means a substantial quantity of any of 
     the services described in subsection (c)(2).

[[Page 19381]]

       ``(D) Investment entity.--The term `investment entity' 
     means any entity which, if it were a partnership, would be an 
     investment partnership.
       ``(f) Exception for Domestic C Corporations.--Except as 
     otherwise provided by the Secretary, in the case of a 
     domestic C corporation--
       ``(1) subsections (a) and (b) shall not apply to any item 
     allocated to such corporation with respect to any investment 
     services partnership interest (or to any gain or loss with 
     respect to the disposition of such an interest), and
       ``(2) subsection (e) shall not apply.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this section, including 
     regulations or other guidance to--
       ``(1) require such reporting and recordkeeping by any 
     person in such manner and at such time as the Secretary may 
     prescribe for purposes of enabling the partnership to meet 
     the requirements of section 6031 with respect to any item 
     described in section 702(a)(9),
       ``(2) provide modifications to the application of this 
     section (including treating related persons as not related to 
     one another) to the extent such modification is consistent 
     with the purposes of this section,
       ``(3) prevent the avoidance of the purposes of this section 
     (including through the use of qualified family partnerships), 
     and
       ``(4) coordinate this section with the other provisions of 
     this title.
       ``(h) Cross Reference.--For 40-percent penalty on certain 
     underpayments due to the avoidance of this section, see 
     section 6662.''.
       (b) Application of Section 751 to Indirect Dispositions of 
     Investment Services Partnership Interests.--
       (1) In general.--Subsection (a) of section 751 of the 
     Internal Revenue Code of 1986 is amended by striking ``or'' 
     at the end of paragraph (1), by inserting ``or'' at the end 
     of paragraph (2), and by inserting after paragraph (2) the 
     following new paragraph:
       ``(3) investment services partnership interests held by the 
     partnership,''.
       (2) Certain distributions treated as sales or exchanges.--
     Subparagraph (A) of section 751(b)(1) of such Code is amended 
     by striking ``or'' at the end of clause (i), by inserting 
     ``or'' at the end of clause (ii), and by inserting after 
     clause (ii) the following new clause:
       ``(iii) investment services partnership interests held by 
     the partnership,''.
       (3) Application of special rules in the case of tiered 
     partnerships.--Subsection (f) of section 751 of such Code is 
     amended--
       (A) by striking ``or'' at the end of paragraph (1), by 
     inserting ``or'' at the end of paragraph (2), and by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) an investment services partnership interest held by 
     the partnership,'', and
       (B) by striking ``partner.'' and inserting ``partner (other 
     than a partnership in which it holds an investment services 
     partnership interest).''.
       (4) Investment services partnership interests; qualified 
     capital interests.--Section 751 of such Code is amended by 
     adding at the end the following new subsection:
       ``(g) Investment Services Partnership Interests.--For 
     purposes of this section--
       ``(1) In general.--The term `investment services 
     partnership interest' has the meaning given such term by 
     section 710(c).
       ``(2) Adjustments for qualified capital interests.--The 
     amount to which subsection (a) applies by reason of paragraph 
     (3) thereof shall not include so much of such amount as is 
     attributable to any portion of the investment services 
     partnership interest which is a qualified capital interest 
     (determined under rules similar to the rules of section 
     710(d)).
       ``(3) Exception for publicly traded partnerships.--Except 
     as otherwise provided by the Secretary, in the case of an 
     exchange of an interest in a publicly traded partnership (as 
     defined in section 7704) to which subsection (a) applies--
       ``(A) this section shall be applied without regard to 
     subsections (a)(3), (b)(1)(A)(iii), and (f)(3), and
       ``(B) such partnership shall be treated as owning its 
     proportionate share of the property of any other partnership 
     in which it is a partner.
       ``(4) Recognition of gains.--Any gain with respect to which 
     subsection (a) applies by reason of paragraph (3) thereof 
     shall be recognized notwithstanding any other provision of 
     this title.
       ``(5) Coordination with inventory items.--An investment 
     services partnership interest held by the partnership shall 
     not be treated as an inventory item of the partnership.
       ``(6) Prevention of double counting.--Under regulations or 
     other guidance prescribed by the Secretary, subsection (a)(3) 
     shall not apply with respect to any amount to which section 
     710 applies.
       ``(7) Valuation methods.--The Secretary shall prescribe 
     regulations or other guidance which provide the acceptable 
     methods for valuing investment services partnership interests 
     for purposes of this section.''.
       (c) Treatment for Purposes of Section 7704.--Subsection (d) 
     of section 7704 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(6) Income from certain carried interests not 
     qualified.--
       ``(A) In general.--Specified carried interest income shall 
     not be treated as qualifying income.
       ``(B) Specified carried interest income.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `specified carried interest 
     income' means--

       ``(I) any item of income or gain allocated to an investment 
     services partnership interest (as defined in section 710(c)) 
     held by the partnership,
       ``(II) any gain on the disposition of an investment 
     services partnership interest (as so defined) or a 
     partnership interest to which (in the hands of the 
     partnership) section 751 applies, and
       ``(III) any income or gain taken into account by the 
     partnership under subsection (b)(4) or (e) of section 710.

       ``(ii) Exception for qualified capital interests.--A rule 
     similar to the rule of section 710(d) shall apply for 
     purposes of clause (i).
       ``(C) Coordination with other provisions.--Subparagraph (A) 
     shall not apply to any item described in paragraph (1)(E) (or 
     so much of paragraph (1)(F) as relates to paragraph (1)(E)).
       ``(D) Special rules for certain partnerships.--
       ``(i) Certain partnerships owned by real estate investment 
     trusts.--Subparagraph (A) shall not apply in the case of a 
     partnership which meets each of the following requirements:

       ``(I) Such partnership is treated as publicly traded under 
     this section solely by reason of interests in such 
     partnership being convertible into interests in a real estate 
     investment trust which is publicly traded.
       ``(II) Fifty percent or more of the capital and profits 
     interests of such partnership are owned, directly or 
     indirectly, at all times during the taxable year by such real 
     estate investment trust (determined with the application of 
     section 267(c)).
       ``(III) Such partnership meets the requirements of 
     paragraphs (2), (3), and (4) of section 856(c).

       ``(ii) Certain partnerships owning other publicly traded 
     partnerships.--Subparagraph (A) shall not apply in the case 
     of a partnership which meets each of the following 
     requirements:

       ``(I) Substantially all of the assets of such partnership 
     consist of interests in one or more publicly traded 
     partnerships (determined without regard to subsection 
     (b)(2)).
       ``(II) Substantially all of the income of such partnership 
     is ordinary income or section 1231 gain (as defined in 
     section 1231(a)(3)).

       ``(E) Transitional rule.--Subparagraph (A) shall not apply 
     to any taxable year of the partnership beginning before the 
     date which is 10 years after the date of the enactment of 
     this paragraph.''.
       (d) Imposition of Penalty on Underpayments.--
       (1) In general.--Subsection (b) of section 6662 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     paragraph (7) the following new paragraph:
       ``(8) The application of section 710(e) or the regulations 
     or other guidance prescribed under section 710(g) to prevent 
     the avoidance of the purposes of section 710.''.
       (2) Amount of penalty.--
       (A) In general.--Section 6662 of such Code is amended by 
     adding at the end the following new subsection:
       ``(k) Increase in Penalty in Case of Property Transferred 
     for Investment Management Services.--In the case of any 
     portion of an underpayment to which this section applies by 
     reason of subsection (b)(8), subsection (a) shall be applied 
     with respect to such portion by substituting `40 percent' for 
     `20 percent'.''.
       (B) Conforming amendment.--Subparagraph (B) of section 
     6662A(e)(2) of such Code is amended by striking ``or (i)'' 
     and inserting ``, (i), or (k)''.
       (3) Special rules for application of reasonable cause 
     exception.--Subsection (c) of section 6664 of such Code is 
     amended--
       (A) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively;
       (B) by striking ``paragraph (3)'' in paragraph (5)(A), as 
     so redesignated, and inserting ``paragraph (4)''; and
       (C) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Special rule for underpayments attributable to 
     investment management services.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     portion of an underpayment to which section 6662 applies by 
     reason of subsection (b)(8) unless--
       ``(i) the relevant facts affecting the tax treatment of the 
     item are adequately disclosed,
       ``(ii) there is or was substantial authority for such 
     treatment, and
       ``(iii) the taxpayer reasonably believed that such 
     treatment was more likely than not the proper treatment.
       ``(B) Rules relating to reasonable belief.--Rules similar 
     to the rules of subsection (d)(3) shall apply for purposes of 
     subparagraph (A)(iii).''.
       (e) Income and Loss From Investment Services Partnership 
     Interests Taken

[[Page 19382]]

     Into Account in Determining Net Earnings From Self-
     Employment.--
       (1) Internal revenue code.--
       (A) In general.--Section 1402(a) of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     paragraph (16), by striking the period at the end of 
     paragraph (17) and inserting ``; and'', and by inserting 
     after paragraph (17) the following new paragraph:
       ``(18) notwithstanding the preceding provisions of this 
     subsection, in the case of any individual engaged in the 
     trade or business of providing services described in section 
     710(c)(2) with respect to any entity, investment services 
     partnership income or loss (as defined in subsection (m)) of 
     such individual with respect to such entity shall be taken 
     into account in determining the net earnings from self-
     employment of such individual.''.
       (B) Investment services partnership income or loss.--
     Section 1402 of such Code is amended by adding at the end the 
     following new subsection:
       ``(m) Investment Services Partnership Income or Loss.--For 
     purposes of subsection (a)--
       ``(1) In general.--The term `investment services 
     partnership income or loss' means, with respect to any 
     investment services partnership interest (as defined in 
     section 710(c)) or disqualified interest (as defined in 
     section 710(e)), the net of--
       ``(A) the amounts treated as ordinary income or ordinary 
     loss under subsections (b) and (e) of section 710 with 
     respect to such interest,
       ``(B) all items of income, gain, loss, and deduction 
     allocated to such interest, and
       ``(C) the amounts treated as realized from the sale or 
     exchange of property other than a capital asset under section 
     751 with respect to such interest.
       ``(2) Exception for qualified capital interests.--A rule 
     similar to the rule of section 710(d) shall apply for 
     purposes of applying paragraph (1)(B).''.
       (2) Social security act.--Section 211(a) of the Social 
     Security Act is amended by striking ``and'' at the end of 
     paragraph (15), by striking the period at the end of 
     paragraph (16) and inserting ``; and'', and by inserting 
     after paragraph (16) the following new paragraph:
       ``(17) Notwithstanding the preceding provisions of this 
     subsection, in the case of any individual engaged in the 
     trade or business of providing services described in section 
     710(c)(2) of the Internal Revenue Code of 1986 with respect 
     to any entity, investment services partnership income or loss 
     (as defined in section 1402(m) of such Code) shall be taken 
     into account in determining the net earnings from self-
     employment of such individual.''.
       (f) Separate Accounting by Partner.--Section 702(a) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     at the end of paragraph (7), by striking the period at the 
     end of paragraph (8) and inserting ``, and'', and by 
     inserting after paragraph (8) the following:
       ``(9) any amount treated as ordinary income or loss under 
     subsection (a), (b), or (e) of section 710.''.
       (g) Conforming Amendments.--
       (1) Subsection (d) of section 731 of the Internal Revenue 
     Code of 1986 is amended by inserting ``section 710(b)(4) 
     (relating to distributions of partnership property),'' after 
     ``to the extent otherwise provided by''.
       (2) Section 741 of such Code is amended by inserting ``or 
     section 710 (relating to special rules for partners providing 
     investment management services to partnerships)'' before the 
     period at the end.
       (3) The table of sections for part I of subchapter K of 
     chapter 1 of such Code is amended by adding at the end the 
     following new item:

``Sec. 710. Special rules for partners providing investment management 
              services to partnerships.''.

       (h) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years ending after the date of the enactment of 
     this Act.
       (2) Partnership taxable years which include effective 
     date.--In applying section 710(a) of the Internal Revenue 
     Code of 1986 (as added by this section) in the case of any 
     partnership taxable year which includes the date of the 
     enactment of this Act, the amount of the net capital gain 
     referred to in such section shall be treated as being the 
     lesser of the net capital gain for the entire partnership 
     taxable year or the net capital gain determined by only 
     taking into account items attributable to the portion of the 
     partnership taxable year which is after such date.
       (3) Dispositions of partnership interests.--
       (A) In general.--Section 710(b) of such Code (as added by 
     this section) shall apply to dispositions and distributions 
     after the date of the enactment of this Act.
       (B) Indirect dispositions.--The amendments made by 
     subsection (b) shall apply to transactions after the date of 
     the enactment of this Act.
       (4) Other income and gain in connection with investment 
     management services.--Section 710(e) of such Code (as added 
     by this section) shall take effect on the date of the 
     enactment of this Act.

     SEC. ___. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

       (a) In General.--Subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

          ``PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59A. Fair share tax.

     ``SEC. 59A. FAIR SHARE TAX.

       ``(a) General Rule.--
       ``(1) Impositition of tax.--In the case of any high-income 
     taxpayer, there is hereby imposed for a taxable year (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the product of--
       ``(A) the amount determined under paragraph (2), and
       ``(B) a fraction (not to exceed 1)--
       ``(i) the numerator of which is the excess of--

       ``(I) the taxpayer's adjusted gross income, over
       ``(II) the dollar amount in effect under subsection (c)(1), 
     and

       ``(ii) the denominator of which is the dollar amount in 
     effect under subsection (c)(1).
       ``(2) Amount of tax.--The amount of tax determined under 
     this paragraph is an amount equal to the excess (if any) of--
       ``(A) the tentative fair share tax for the taxable year, 
     over
       ``(B) the excess of--
       ``(i) the sum of--

       ``(I) the regular tax liability (as defined in section 
     26(b)) for the taxable year, determined without regard to any 
     tax liability determined under this section,
       ``(II) the tax imposed by section 55 for the taxable year, 
     plus
       ``(III) the payroll tax for the taxable year, over

       ``(ii) the credits allowable under part IV of subchapter A 
     (other than sections 27(a), 31, and 34).
       ``(b) Tentative Fair Share Tax.--For purposes of this 
     section--
       ``(1) In general.--The tentative fair share tax for the 
     taxable year is 30 percent of the excess of--
       ``(A) the adjusted gross income of the taxpayer, over
       ``(B) the modified charitable contribution deduction for 
     the taxable year.
       ``(2) Modified charitable contribution deduction.--For 
     purposes of paragraph (1)--
       ``(A) In general.--The modified charitable contribution 
     deduction for any taxable year is an amount equal to the 
     amount which bears the same ratio to the deduction allowable 
     under section 170 (section 642(c) in the case of a trust or 
     estate) for such taxable year as--
       ``(i) the amount of itemized deductions allowable under the 
     regular tax (as defined in section 55) for such taxable year, 
     determined after the application of section 68, bears to
       ``(ii) such amount, determined before the application of 
     section 68.
       ``(B) Taxpayer must itemize.--In the case of any individual 
     who does not elect to itemize deductions for the taxable 
     year, the modified charitable contribution deduction shall be 
     zero.
       ``(c) High-Income Taxpayer.--For purposes of this section--
       ``(1) In general.--The term `high-income taxpayer' means, 
     with respect to any taxable year, any taxpayer (other than a 
     corporation) with an adjusted gross income for such taxable 
     year in excess of $1,000,000 (50 percent of such amount in 
     the case of a married individual who files a separate 
     return).
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2016, the $1,000,000 amount under paragraph (1) shall 
     be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2015' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $10,000, such amount 
     shall be rounded to the next lowest multiple of $10,000.
       ``(d) Payroll Tax.--For purposes of this section, the 
     payroll tax for any taxable year is an amount equal to the 
     excess of--
       ``(1) the taxes imposed on the taxpayer under sections 
     1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax 
     is attributable to the rate of tax in effect under section 
     3101) with respect to such taxable year or wages or 
     compensation received during such taxable year, over
       ``(2) the deduction allowable under section 164(f) for such 
     taxable year.
       ``(e) Special Rule for Estates and Trusts.--For purposes of 
     this section, in the case of an estate or trust, adjusted 
     gross income shall be computed in the manner described in 
     section 67(e).
       ``(f) Not Treated as Tax Imposed by This Chapter for 
     Certain Purposes.--The tax imposed under this section shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter 
     (other than the credit allowed under section 27(a)) or for 
     purposes of section 55.''.

[[Page 19383]]

       (b) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 1 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new item:

         ``Part VII--Fair Share Tax on High-Income Taxpayers''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. ___. MODIFICATION OF LIMITATION ON EXCESSIVE 
                   REMUNERATION.

       (a) Repeal of Performance-based Compensation and Commission 
     Exceptions for Limitation on Excessive Remuneration.--
       (1) In general.--Paragraph (4) of section 162(m) of the 
     Internal Revenue Code of 1986 is amended by striking 
     subparagraphs (B) and (C) and by redesignating subparagraphs 
     (D) through (G) as subparagraphs (B) through (E), 
     respectively.
       (2) Conforming amendments.--
       (A) Section 162(m)(5) of such Code is amended--
       (i) by striking ``subparagraphs (B), (C), and (D) thereof'' 
     in subparagraph (E) and inserting ``subparagraph (B) 
     thereof'', and
       (ii) by striking ``subparagraphs (F) and (G)'' in 
     subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
       (B) Section 162(m)(6) of such Code is amended--
       (i) by striking ``subparagraphs (B), (C), and (D) thereof'' 
     in subparagraph (D) and inserting ``subparagraph (B) 
     thereof'', and
       (ii) by striking ``subparagraphs (F) and (G)'' in 
     subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
       (b) Expansion of Applicable Employer.--Paragraph (2) of 
     section 162(m) of the Internal Revenue Code of 1986 is 
     amended to read as follows:
       ``(2) Publicly held corporation.--For purposes of this 
     subsection, the term `publicly held corporation' means any 
     corporation which is an issuer (as defined in section 3 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78c))--
       ``(A) the securities of which are registered under section 
     12 of such Act (15 U.S.C. 78l), or
       ``(B) that is required to file reports under section 15(d) 
     of such Act (15 U.S.C. 78o(d)).''.
       (c) Application to All Current and Former Officers, 
     Directors, and Employees.--
       (1) In general.--Section 162(m) of the Internal Revenue 
     Code of 1986, as amended by subsection (a), is amended--
       (A) by striking ``covered employee'' each place it appears 
     in paragraphs (1) and (4) and inserting ``covered 
     individual'', and
       (B) by striking ``such employee'' each place it appears in 
     subparagraphs (A) and (E) of paragraph (4) and inserting 
     ``such individual''.
       (2) Covered individual.--Paragraph (3) of section 162(m) of 
     such Code is amended to read as follows:
       ``(3) Covered individual.--For purposes of this subsection, 
     the term `covered individual' means any individual who is an 
     officer, director, or employee of the taxpayer or a former 
     officer, director, or employee of the taxpayer.''.
       (3) Conforming amendments.--
       (A) Section 48D(b)(3)(A) of such Code is amended by 
     inserting ``(as in effect for taxable years beginning before 
     January 1, 2016)'' after ``section 162(m)(3)''.
       (B) Section 409A(b)(3)(D)(ii) of such Code is amended by 
     inserting ``(as in effect for taxable years beginning before 
     January 1, 2016)'' after ``section 162(m)(3)''.
       (d) Special Rule for Remuneration Paid to Beneficiaries, 
     etc.--Paragraph (4) of section 162(m), as amended by 
     subsection (a), is amended by adding at the end the following 
     new subparagraph:
       ``(F) Special rule for remuneration paid to beneficiaries, 
     etc.--Remuneration shall not fail to be applicable employee 
     remuneration merely because it is includible in the income 
     of, or paid to, a person other than the covered individual, 
     including after the death of the covered individual.''.
       (e) Regulatory Authority.--
       (1) In general.--Section 162(m) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(7) Regulations.--The Secretary may prescribe such 
     guidance, rules, or regulations, including with respect to 
     reporting, as are necessary to carry out the purposes of this 
     subsection.''.
       (2) Conforming amendment.--Paragraph (6) of section 162(m) 
     of such Code is amended by striking subparagraph (H).
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

                                 ______
                                 
  SA 2888. Mr. COATS (for himself and Mr. Toomey) submitted an 
amendment intended to be proposed to amendment SA 2874 proposed by Mr. 
McConnell to the bill H.R. 3762, to provide for reconciliation pursuant 
to section 2002 of the concurrent resolution on the budget for fiscal 
year 2016; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. EXTENSION OF SPECIAL RULE FOR SENIORS RELATING TO 
                   INCOME LEVEL FOR DEDUCTION OF MEDICAL CARE 
                   EXPENSES.

       Subsection (f) of section 213 of the Internal Revenue Code 
     of 1986 is amended to read as follows:
       ``(f) Special Rule.--In the case of any taxable year 
     beginning after December 31, 2012, and ending before January 
     1, 2024, subsection (a) shall be applied with respect to a 
     taxpayer by substituting `7.5 percent' for `10 percent' if 
     such taxpayer or such taxpayer's spouse has attained age 65 
     before the close of such taxable year.''.

     SEC. __. TEMPORARY SUSPENSION OF THE INFLATION ADJUSTMENT IN 
                   THE CALCULATION OF MEDICARE PART B AND PART D 
                   PREMIUMS.

       Section 1839(i)(5) of the Social Security Act (42 U.S.C. 
     1395r(i)(5)) is amended--
       (1) in the matter preceding clause (i), by striking ``2018 
     and 2019'' and inserting ``in 2018 through 2025''; and
       (2) in clause (ii), by striking ``2020, August 2018'' and 
     inserting ``2026, August 2024''.
                                 ______
                                 
  SA 2889. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 2874 proposed by Mr. McConnell to the bill H.R. 3762, to 
provide for reconciliation pursuant to section 2002 of the concurrent 
resolution on the budget for fiscal year 2016; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SUSPENSION OF SPECIFIED ENERGY GRANTS.

       Section 1603 of division B of the American Recovery and 
     Reinvestment Act of 2009 is amended by adding at the end the 
     following new subsection:
       ``(k) Special Rule.--The Secretary of the Treasury shall 
     not make any grant to any person under this section after the 
     date of the enactment of this subsection and before the date 
     that both the Inspector General of the Department of the 
     Treasury and the Treasury Inspector General for Tax 
     Administration have completed and submitted to Congress a 
     comprehensive investigation relating to fraud with respect to 
     the grants allowed under this section, including fraud--
       ``(1) through overestimating the cost bases of property for 
     purposes of collecting such grants, and
       ``(2) through claiming both tax benefits and grants with 
     respect to the same property.''.
                                 ______
                                 
  SA 2890. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 2874 proposed by Mr. McConnell to the bill H.R. 3762, to 
provide for reconciliation pursuant to section 2002 of the concurrent 
resolution on the budget for fiscal year 2016; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. AUTHORITY TO OFFER ADDITIONAL PLAN OPTIONS.

       (a) Catastrophic Plans.--Notwithstanding title I of the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148), a catastrophic plan as described in section 1302(e) of 
     such Act shall be deemed to be a qualified health plan 
     (including for purposes of receiving tax credits under 
     section 36B of the Internal Revenue Code of 1986 and cost-
     sharing assistance under section 1402 of the Patient 
     Protection and Affordable Care Act), except that for purposes 
     of enrollment in such plans, the provisions of paragraph (2) 
     of such section 1302(e) shall not apply.
       (b) Individual Mandate.--Coverage under a catastrophic plan 
     under subsection (a) shall be deemed to be minimum essential 
     coverage for purposes of section 5000A of the Internal 
     Revenue Code of 1986.

                          ____________________