[House Report 114-315]
[From the U.S. Government Publishing Office]


114th Congress   }                                       {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                       {     114-315

======================================================================

 
 PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE BILL (H.R. 
1314) TO AMEND THE INTERNAL REVENUE CODE OF 1986 TO PROVIDE FOR A RIGHT 
 TO AN ADMINISTRATIVE APPEAL RELATING TO ADVERSE DETERMINATIONS OF TAX-
                 EXEMPT STATUS OF CERTAIN ORGANIZATIONS

                                _______
                                

October 28 (legislative day, October 27), 2015.--Referred to the House 
                   Calendar and ordered to be printed

                                _______
                                

                Mr. Cole, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 495]

    The Committee on Rules, having had under consideration 
House Resolution 495, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of the Senate 
amendment to H.R. 1314, the Ensuring Tax Exempt Organizations 
the Right to Appeal Act. The resolution makes in order a motion 
by the Majority Leader or his designee that the House concur in 
the Senate amendment with the amendment printed in part A of 
this report modified by the amendment printed in part B of this 
report. The resolution waives all points of order against 
consideration of the motion and provides that the motion is not 
subject to a demand for division of the question. The 
resolution provides that the Senate amendment and the motion 
shall be considered as read. The resolution provides one hour 
of debate on the motion equally divided and controlled by the 
Majority Leader and the Minority Leader or their respective 
designees.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the motion includes a waiver of the following:
           Section 302(f) of the Congressional Budget 
        Act, which prohibits consideration of legislation 
        providing new budget authority in excess of a 302(a) 
        allocation of such authority;
           Section 306 of the Congressional Budget Act, 
        which prohibits consideration of legislation within the 
        jurisdiction of the Committee on the Budget unless 
        referred to or reported by the Budget Committee;
           Section 311 of the Congressional Budget Act 
        of 1974, which prohibits consideration of legislation 
        that would cause the level of total new budget 
        authority for the first fiscal year to be exceeded;
           Clause 7 of rule XVI, which requires that no 
        motion or proposition on a subject different from that 
        under consideration shall be admitted under color of 
        amendment;
           Clause 4 of rule XXI, which prohibits 
        reporting a bill or joint resolution carrying an 
        appropriation from a committee not having jurisdiction 
        to report an appropriation.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 120

    Motion by Mr. Hastings of Florida to make in order and 
provide the appropriate waivers for amendment #4 offered by 
Rep. Hastings (FL), which exempts outpatient departments of 
hospitals with high uncompensated care that also provide access 
to essential community services for low-income uninsured and 
vulnerable populations, as identified by the Medicaid and CHIP 
Payment Access Commission. Defeated: 3-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................
Mr. Stivers.....................................          Nay
Mr. Collins.....................................          Nay
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

SUMMARY OF THE HOUSE AMENDMENT IN PART A TO THE SENATE AMENDMENT TO THE 
                           TEXT OF H.R. 1314

    Boehner (OH): Contains the text of the Bipartisan Budget 
Agreement of 2015.

      SUMMARY OF THE MODIFICATION IN PART B TO THE HOUSE AMENDMENT

    Boehner (OH): Updates the table of content item related to 
section 504. The second amendment corrects a drafting error 
that interfered with the operation of the Overseas Contingency 
Operations cap adjustment. The third amendment corrects the 
name of the Department of the Treasury. The fourth amendment 
raises the flat- and variable-rate premiums in section 501 by 
$1 in each period. The fifth amendment extends the funding 
stabilization percentages for an additional year to 2020. The 
sixth amendment clarifies the definition of ``applicable items 
and services.'' The seventh amendment corrects the effective 
date to clarify the provision applies to voluntary suspensions 
requested 180 days after enactment. The eighth amendment 
corrects a drafting omission that would otherwise limit the use 
of SRF fund for system enhancements that increase spectral 
efficiency.

 PART A--TEXT OF THE HOUSE AMENDMENT IN PART A TO THE SENATE AMENDMENT 
                        TO THE TEXT OF H.R. 1314

  In lieu of the matter proposed to be inserted by the Senate 
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Bipartisan 
Budget Act of 2015''.
  (b) Table of Contents.--The table of contents of this Act is 
as follows:

Sec. 1. Short title; table of contents.

                       TITLE I--BUDGET ENFORCEMENT

Sec. 101. Amendments to the Balanced Budget and Emergency Deficit 
          Control Act of 1985.
Sec. 102. Authority for fiscal year 2017 budget resolution in the 
          Senate.

                          TITLE II--AGRICULTURE

Sec. 201. Standard Reinsurance Agreement.

                           TITLE III--COMMERCE

Sec. 301. Debt collection improvements.

                  TITLE IV--STRATEGIC PETROLEUM RESERVE

Sec. 401. Strategic Petroleum Reserve test drawdown and sale 
          notification and definition change.
Sec. 402. Strategic Petroleum Reserve mission readiness optimization.
Sec. 403. Strategic Petroleum Reserve drawdown and sale.
Sec. 404. Energy Security and Infrastructure Modernization Fund.

                            TITLE V--PENSIONS

Sec. 501. Single employer plan annual premium rates.
Sec. 502. Pension Payment Acceleration.
Sec. 503. Mortality tables.
Sec. 504. Extension of current funding stabilization percentages to 2018 
          and 2019.

                          TITLE VI--HEALTH CARE

Sec. 601. Maintaining 2016 Medicare part B premium and deductible levels 
          consistent with actuarially fair rates.
Sec. 602. Applying the Medicaid additional rebate requirement to generic 
          drugs.
Sec. 603. Treatment of off-campus outpatient departments of a provider.
Sec. 604. Repeal of automatic enrollment requirement.

                          TITLE VII--JUDICIARY

Sec. 701. Civil monetary penalty inflation adjustments.
Sec. 702. Crime Victims Fund.
Sec. 703. Assets Forfeiture Fund.

                       TITLE VIII--SOCIAL SECURITY

Sec. 801. Short title.

        Subtitle A--Ensuring Correct Payments and Reducing Fraud

Sec. 811. Expansion of cooperative disability investigations units.
Sec. 812. Exclusion of certain medical sources of evidence.
Sec. 813. New and stronger penalties.
Sec. 814. References to Social Security and Medicare in electronic 
          communications.
Sec. 815. Change to cap adjustment authority.

     Subtitle B--Promoting Opportunity for Disability Beneficiaries

Sec. 821. Temporary reauthorization of disability insurance 
          demonstration project authority.
Sec. 822. Modification of demonstration project authority.
Sec. 823. Promoting opportunity demonstration project.
Sec. 824. Use of electronic payroll data to improve program 
          administration.
Sec. 825. Treatment of earnings derived from services.
Sec. 826. Electronic reporting of earnings.

             Subtitle C--Protecting Social Security Benefits

Sec. 831. Closure of unintended loopholes.
Sec. 832. Requirement for medical review.
Sec. 833. Reallocation of payroll tax revenue.
Sec. 834. Access to financial information for waivers and adjustments of 
          recovery.

     Subtitle D--Relieving Administrative Burdens and Miscellaneous 
                               Provisions

Sec. 841. Interagency coordination to improve program administration.
Sec. 842. Elimination of quinquennial determinations relating to wage 
          credits for military service prior to 1957.
Sec. 843. Certification of benefits payable to a divorced spouse of a 
          railroad worker to the Railroad Retirement Board.
Sec. 844. Technical amendments to eliminate obsolete provisions.
Sec. 845. Reporting requirements to Congress.
Sec. 846. Expedited examination of administrative law judges.

           TITLE IX--TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT

Sec. 901. Temporary extension of public debt limit.
Sec. 902. Restoring congressional authority over the national debt.

                       TITLE X--SPECTRUM PIPELINE

Sec. 1001. Short title.
Sec. 1002. Definitions.
Sec. 1003. Rule of construction.
Sec. 1004. Identification, reallocation, and auction of Federal 
          spectrum.
Sec. 1005. Additional uses of Spectrum Relocation Fund.
Sec. 1006. Plans for auction of certain spectrum.
Sec. 1007. FCC auction authority.
Sec. 1008. Reports to Congress.

         TITLE XI--REVENUE PROVISIONS RELATED TO TAX COMPLIANCE

Sec. 1101. Partnership audits and adjustments.
Sec. 1102. Partnership interests created by gift.

              TITLE XII--DESIGNATION OF SMALL HOUSE ROTUNDA

Sec. 1201. Designating small House rotunda as ``Freedom Foyer''.

                      TITLE I--BUDGET ENFORCEMENT

SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT 
                    CONTROL ACT OF 1985.

  (a) Revised Discretionary Spending Limits.--Section 251(c) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(c)) is amended by striking paragraphs (3) and (4) 
and inserting the following:
          ``(3) for fiscal year 2016--
                  ``(A) for the revised security category, 
                $548,091,000,000 in new budget authority; and
                  ``(B) for the revised nonsecurity category 
                $518,491,000,000 in new budget authority;
          ``(4) for fiscal year 2017--
                  ``(A) for the revised security category, 
                $551,068,000,000 in new budget authority; and
                  ``(B) for the revised nonsecurity category, 
                $518,531,000,000 in new budget authority;''.
  (b) Direct Spending Adjustments for Fiscal Years 2016 and 
2017.--Section 251A of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901a), is amended--
          (1) in paragraph (5)(B), by striking ``paragraph 
        (10)'' and inserting ``paragraphs (10) and (11)''; and
          (2) by adding at the end the following:
          ``(11) Implementing direct spending reductions for 
        fiscal years 2016 and 2017.--(A) OMB shall make the 
        calculations necessary to implement the direct spending 
        reductions calculated pursuant to paragraphs (3) and 
        (4) without regard to the amendment made to section 
        251(c) revising the discretionary spending limits for 
        fiscal years 2016 and 2017 by the Bipartisan Budget Act 
        of 2015.
          ``(B) Paragraph (5)(B) shall not be implemented for 
        fiscal years 2016 and 2017.''.
  (c) Extension of Direct Spending Reductions for Fiscal Year 
2025.--Section 251A(6) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901a(6)) is amended--
          (1) in subparagraph (B), in the matter preceding 
        clause (i), by striking ``and for fiscal year 2024'' 
        and by inserting ``for fiscal year 2024, and for fiscal 
        year 2025'';
          (2) by striking subparagraph (C) and redesignating 
        subparagraph (D) as subparagraph (C); and
          (3) in subparagraph (C) (as so redesignated), by 
        striking ``fiscal year 2024'' and inserting ``fiscal 
        year 2025''.
  (d) Overseas Contingency Operations Amounts.--In fiscal years 
2016 and 2017, the adjustments under section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(b)(2)(A)) for Overseas Contingency Operations/
Global War on Terrorism appropriations will be as follows:
          (1) For budget function 150--
                  (A) for fiscal year 2016, not less than 
                $14,800,000,000; and
                  (B) for fiscal year 2017, not less than 
                $14,800,000,000.
          (2) For budget function 050--
                  (A) for fiscal year 2016, not less than 
                $58,700,000,000; and
                  (B) for fiscal year 2017, not less than 
                $58,700,000,000.

SEC. 102. AUTHORITY FOR FISCAL YEAR 2017 BUDGET RESOLUTION IN THE 
                    SENATE.

  (a) Fiscal Year 2017.--For the purpose of enforcing the 
Congressional Budget Act of 1974, after April 15, 2016, and 
enforcing budgetary points of order in prior concurrent 
resolutions on the budget, the allocations, aggregates, and 
levels provided for in subsection (b) shall apply in the Senate 
in the same manner as for a concurrent resolution on the budget 
for fiscal year 2017 with appropriate budgetary levels for 
fiscal years 2018 through 2026.
  (b) Committee Allocations, Aggregates, and Levels.--After 
April 15, 2016, but not later than May 15, 2016, the Chairman 
of the Committee on the Budget of the Senate shall file--
          (1) for the Committee on Appropriations, committee 
        allocations for fiscal year 2017 consistent with 
        discretionary spending limits set forth in section 
        251(c)(4) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985, as amended by this Act, for the 
        purpose of enforcing section 302 of the Congressional 
        Budget Act of 1974;
          (2) for all committees other than the Committee on 
        Appropriations, committee allocations for fiscal years 
        2017, 2017 through 2021, and 2017 through 2026 
        consistent with the most recent baseline of the 
        Congressional Budget Office, as adjusted for the 
        budgetary effects of any provision of law enacted 
        during the period beginning on the date such baseline 
        is issued and ending on the date of submission of such 
        statement, for the purpose of enforcing section 302 of 
        the Congressional Budget Act of 1974;
          (3) aggregate spending levels for fiscal year 2017 in 
        accordance with the allocations established under 
        paragraphs (1) and (2), for the purpose of enforcing 
        section 311 of the Congressional Budget Act of 1974;
          (4) aggregate revenue levels for fiscal years 2017, 
        2017 through 2021, and 2017 through 2026 consistent 
        with the most recent baseline of the Congressional 
        Budget Office, as adjusted for the budgetary effects of 
        any provision of law enacted during the period 
        beginning on the date such baseline is issued and 
        ending on the date of submission of such statement, for 
        the purpose of enforcing section 311 of the 
        Congressional Budget Act of 1974; and
          (5) levels of Social Security revenues and outlays 
        for fiscal years 2017, 2017 through 2021, and 2017 
        through 2026 consistent with the most recent baseline 
        of the Congressional Budget Office, as adjusted for the 
        budgetary effects of any provision of law enacted 
        during the period beginning on the date such baseline 
        is issued and ending on the date of submission of such 
        statement, for the purpose of enforcing sections 302 
        and 311 of the Congressional Budget Act of 1974.
  (c) Additional Matter.--The filing referred to in subsection 
(b) may also include for fiscal year 2017 the matter contained 
in subtitles A and B of title IV of S. Con. Res. 11 (114th 
Congress) updated by 1 fiscal year.
  (d) Expiration.--This section shall expire if a concurrent 
resolution on the budget for fiscal year 2017 is agreed to by 
the Senate and the House of Representatives pursuant to section 
301 of the Congressional Budget Act of 1974.

                         TITLE II--AGRICULTURE

SEC. 201. STANDARD REINSURANCE AGREEMENT.

  Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(8)) is amended--
          (1) in subparagraph (A), in the matter preceding 
        clause (i), by striking ``may renegotiate'' and all 
        that follows through the end of clause (ii) and 
        inserting the following: ``shall renegotiate the 
        financial terms and conditions of each Standard 
        Reinsurance Agreement--
                          ``(i) not later than December 31, 
                        2016; and
                          ``(ii) not less than once during each 
                        period of 5 reinsurance years 
                        thereafter.''; and
          (2) by striking subparagraph (E) and inserting the 
        following:
                  ``(E) Cap on overall rate of return.--
                Notwithstanding subparagraph (F), the Board 
                shall ensure that the Standard Reinsurance 
                Agreement renegotiated under subparagraph 
                (A)(i) establishes a target rate of return for 
                the approved insurance providers, taken as a 
                whole, that does not exceed 8.9 percent of 
                retained premium for each of the 2017 through 
                2026 reinsurance years.''.

                          TITLE III--COMMERCE

SEC. 301. DEBT COLLECTION IMPROVEMENTS.

  (a) In General.--Section 227(b) of the Communications Act of 
1934 (47 U.S.C. 227(b)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A)(iii), by inserting 
                ``, unless such call is made solely to collect 
                a debt owed to or guaranteed by the United 
                States'' after ``charged for the call''; and
                  (B) in subparagraph (B), by inserting ``, is 
                made solely pursuant to the collection of a 
                debt owed to or guaranteed by the United 
                States,'' after ``purposes''; and
          (2) in paragraph (2)--
                  (A) in subparagraph (F), by striking ``and'' 
                at the end;
                  (B) in subparagraph (G), by striking the 
                period at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(H) may restrict or limit the number and 
                duration of calls made to a telephone number 
                assigned to a cellular telephone service to 
                collect a debt owed to or guaranteed by the 
                United States.''.
  (b) Deadline for Regulations.--Not later than 9 months after 
the date of enactment of this Act, the Federal Communications 
Commission, in consultation with the Department of Treasury, 
shall prescribe regulations to implement the amendments made by 
this section.

                 TITLE IV--STRATEGIC PETROLEUM RESERVE

SEC. 401. STRATEGIC PETROLEUM RESERVE TEST DRAWDOWN AND SALE 
                    NOTIFICATION AND DEFINITION CHANGE.

  (a) Notice to Congress.--Section 161(g) of the Energy Policy 
and Conservation Act (42 U.S.C. 6241(g)) is amended by striking 
paragraph (8) and inserting the following:
          ``(8) Notice to congress.--
                  ``(A) Prior notice.--Not less than 14 days 
                before the date on which a test is carried out 
                under this subsection, the Secretary shall 
                notify both Houses of Congress of the test.
                  ``(B) Emergency.--The prior notice 
                requirement in subparagraph (A) shall not apply 
                if the Secretary determines that an emergency 
                exists which requires a test to be carried out, 
                in which case the Secretary shall notify both 
                Houses of Congress of the test as soon as 
                possible.
                  ``(C) Detailed description.--
                          ``(i) In general.--Not later than 180 
                        days after the date on which a test is 
                        completed under this subsection, the 
                        Secretary shall submit to both Houses 
                        of Congress a detailed description of 
                        the test.
                          ``(ii) Report.--A detailed 
                        description submitted under clause (i) 
                        may be included as part of a report 
                        made to the President and Congress 
                        under section 165.''.
  (b) Definition Change.--Section 3(8)(C)(iii) of the Energy 
Policy and Conservation Act (42 U.S.C. 6202(8)(C)(iii)) is 
amended by striking ``sabotage or an act of God'' and inserting 
``sabotage, an act of terrorism, or an act of God''.

SEC. 402. STRATEGIC PETROLEUM RESERVE MISSION READINESS OPTIMIZATION.

  Not later than 180 days after the date of enactment of this 
Act, the Secretary shall--
          (1) complete a long-range strategic review of the 
        Strategic Petroleum Reserve; and
          (2) develop and submit to Congress a proposed action 
        plan, including a proposed implementation schedule, 
        that--
                  (A) specifies near- and long-term roles of 
                the Strategic Petroleum Reserve relative to the 
                energy and economic security goals and 
                objectives of the United States;
                  (B) describes whether existing legal 
                authorities that govern the policies, 
                configuration, and capabilities of the 
                Strategic Petroleum Reserve are adequate to 
                ensure that the Strategic Petroleum Reserve can 
                meet the current and future energy and economic 
                security goals and objectives of the United 
                States;
                  (C) identifies the configuration and 
                performance capabilities of the Strategic 
                Petroleum Reserve and recommends an action plan 
                to achieve the optimal--
                          (i) capacity, location, and 
                        composition of petroleum products in 
                        the Strategic Petroleum Reserve; and
                          (ii) storage and distributional 
                        capabilities; and
                  (D) estimates the resources required to 
                attain and maintain the long-term 
                sustainability and operational effectiveness of 
                the Strategic Petroleum Reserve.

SEC. 403. STRATEGIC PETROLEUM RESERVE DRAWDOWN AND SALE.

  (a) Drawdown and Sale.--Notwithstanding section 161 of the 
Energy Policy and Conservation Act (42 U.S.C. 6241), except as 
provided in subsection (b), the Secretary of Energy shall draw 
down and sell--
          (1) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2018;
          (2) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2019;
          (3) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2020;
          (4) 5,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2021;
          (5) 8,000,000 barrels of crude oil from the Strategic 
        Petroleum Reserve during fiscal year 2022;
          (6) 10,000,000 barrels of crude oil from the 
        Strategic Petroleum Reserve during fiscal year 2023;
          (7) 10,000,000 barrels of crude oil from the 
        Strategic Petroleum Reserve during fiscal year 2024; 
        and
          (8) 10,000,000 barrels of crude oil from the 
        Strategic Petroleum Reserve during fiscal year 2025.
  (b) Emergency Protection.--The Secretary shall not draw down 
and sell crude oil under this section in amounts that would 
limit the authority to sell petroleum products under section 
161(h) of the Energy Policy and Conservation Act (42 
U.S.C.6241(h)) in the full amount authorized by that 
subsection.
  (c) Proceeds.--Proceeds from a sale under this section shall 
be deposited into the general fund of the Treasury during the 
fiscal year in which the sale occurs.

SEC. 404. ENERGY SECURITY AND INFRASTRUCTURE MODERNIZATION FUND.

  (a) Establishment.--There is hereby established in the 
Treasury of the United States a fund to be known as the Energy 
Security and Infrastructure Modernization Fund (referred to in 
this section as the ``Fund''), consisting of--
          (1) collections deposited in the Fund under 
        subsection (c); and
          (2) amounts otherwise appropriated to the Fund.
  (b) Purpose.--The purpose of the Fund is to provide for the 
construction, maintenance, repair, and replacement of Strategic 
Petroleum Reserve facilities.
  (c) Collection and Deposit of Sale Proceeds in Fund.--
          (1) Drawdown and sale.--Notwithstanding section 161 
        of the Energy Policy and Conservation Act (42 U.S.C. 
        6241), to the extent provided in advance in 
        appropriation Acts, the Secretary of Energy shall draw 
        down and sell crude oil from the Strategic Petroleum 
        Reserve in amounts as authorized under subsection (e), 
        except as provided in paragraph (2). Amounts received 
        for a sale under this paragraph shall be deposited into 
        the Fund during the fiscal year in which the sale 
        occurs. Such amounts shall remain available in the Fund 
        without fiscal year limitation.
          (2) Emergency protection.--The Secretary shall not 
        draw down and sell crude oil under this subsection in 
        amounts that would limit the authority to sell 
        petroleum products under section 161(h) of the Energy 
        Policy and Conservation Act (42 U.S.C.6241(h)) in the 
        full amount authorized by that subsection.
  (d) Authorized Uses of Fund.--
          (1) In general.--Amounts in the Fund may be used for, 
        or may be credited as offsetting collections for 
        amounts used for, carrying out the program described in 
        paragraph (2)(B), to the extent provided in advance in 
        appropriation Acts.
          (2) Program to modernize the strategic petroleum 
        reserve.--
                  (A) Findings.--Congress finds the following:
                          (i) The Strategic Petroleum Reserve 
                        is one of the Nation's most valuable 
                        energy security assets.
                          (ii) The age and condition of the 
                        Strategic Petroleum Reserve have 
                        diminished its value as a Federal 
                        energy security asset.
                          (iii) Global oil markets and the 
                        location and amount of United States 
                        oil production and refining capacity 
                        have dramatically changed in the 40 
                        years since the establishment of the 
                        Strategic Petroleum Reserve.
                          (iv) Maximizing the energy security 
                        value of the Strategic Petroleum 
                        Reserve requires a modernized 
                        infrastructure that meets the drawdown 
                        and distribution needs of changed 
                        domestic and international oil and 
                        refining market conditions.
                  (B) Program.--The Secretary of Energy shall 
                establish a Strategic Petroleum Reserve 
                modernization program to protect the United 
                States economy from the impacts of emergency 
                product supply disruptions. The program may 
                include--
                          (i) operational improvements to 
                        extend the useful life of surface and 
                        subsurface infrastructure;
                          (ii) maintenance of cavern storage 
                        integrity; and
                          (iii) addition of infrastructure and 
                        facilities to optimize the drawdown and 
                        incremental distribution capacity of 
                        the Strategic Petroleum Reserve.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated (and drawdowns and sales under subsection (c) 
in an equal amount are authorized) for carrying out subsection 
(d)(2)(B), $2,000,000,000 for the period encompassing fiscal 
years 2017 through 2020.
  (f) Transmission of Department Budget Requests.--The 
Secretary of Energy shall prepare and submit in the 
Department's annual budget request to Congress--
          (1) an itemization of the amounts of funds necessary 
        to carry out subsection (d); and
          (2) a designation of any activities thereunder for 
        which a multiyear budget authority would be 
        appropriate.
  (g) Sunset.--The authority of the Secretary to draw down and 
sell crude oil from the Strategic Petroleum Reserve under this 
section shall expire at the end of fiscal year 2020.

                           TITLE V--PENSIONS

SEC. 501. SINGLE EMPLOYER PLAN ANNUAL PREMIUM RATES.

  (a) Flat-rate Premium.--
          (1) In general.--Section 4006(a)(3)(A)(i) of the 
        Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1306(a)(3)(A)(i)) is amended by striking ``and'' 
        at the end of subclause (IV), by striking the period at 
        the end of subclause (V) and inserting a semicolon, and 
        by inserting after subclause (V) the following:
                                  ``(VI) for plan years 
                                beginning after December 31, 
                                2016, and before January 1, 
                                2018, $68;
                                  ``(VII) for plan years 
                                beginning after December 31, 
                                2017, and before January 1, 
                                2019, $73; and
                                  ``(VIII) for plan years 
                                beginning after December 31, 
                                2018, $78.''.
          (2) Premium rates after 2019.--Section 4006(a)(3)(G) 
        of such Act (29 U.S.C. 1306(a)(3)(G)) is amended--
                  (A) in the matter preceding clause (i), by 
                striking ``2016'' and inserting ``2019''; and
                  (B) in clause (i)(II) by striking ``2014'' 
                and inserting ``2017''.
  (b) Variable-rate Premium Increases.--
          (1) In general.--Section 4006(a)(8)(C) of such Act 
        (29 U.S.C. 1306(a)(8)(C)) is amended--
                  (A) in the subparagraph heading, by striking 
                ``increase in 2014 and 2015'' and inserting 
                ``increases'';
                  (B) in clause (ii), by striking ``and'' at 
                the end;
                  (C) in clause (iii), by striking the period 
                at the end and inserting a semicolon; and
                  (D) by adding at the end the following:
                          ``(iv) in the case of plan years 
                        beginning in calendar year 2017, by $2;
                          ``(v) in the case of plan years 
                        beginning in calendar year 2018, by $3; 
                        and
                          ``(vi) in the case of plan years 
                        beginning in calendar year 2019, by 
                        $3.''.
          (2) Conforming amendments.--Section 4006(a)(8) of 
        such Act (29 U.S.C. 1306(a)(8)) is amended--
                  (A) in subparagraph (A)--
                          (i) in clause (iii), by striking 
                        ``and'' at the end;
                          (ii) in clause (iv), by striking the 
                        period at the end and inserting a 
                        semicolon; and
                          (iii) by adding at the end the 
                        following:
                          ``(v) for plan years beginning after 
                        calendar year 2017, the amount in 
                        effect for plan years beginning in 2017 
                        (determined after application of 
                        subparagraph (C));
                          ``(vi) for plan years beginning after 
                        calendar year 2018, the amount in 
                        effect for plan years beginning in 2018 
                        (determined after application of 
                        subparagraph (C)); and
                          ``(vii) for plan years beginning 
                        after calendar year 2019, the amount in 
                        effect for plan years beginning in 2019 
                        (determined after application of 
                        subparagraph (C)).''; and
                  (B) in subparagraph (D)--
                          (i) in clause (iii), by striking 
                        ``and'' at the end;
                          (ii) in clause (iv), by striking the 
                        period at the end and inserting a 
                        semicolon; and
                          (iii) by adding at the end the 
                        following:
                          ``(v) 2015, in the case of plan years 
                        beginning after calendar year 2017;
                          ``(vi) 2016, in the case of plan 
                        years beginning after calendar year 
                        2018; and
                          ``(vii) 2017, in the case of plan 
                        years beginning after calendar year 
                        2019.''.
          (3) Effective date.-- The amendments made by this 
        section shall apply to plan years beginning after 
        December 31, 2016.

SEC. 502. PENSION PAYMENT ACCELERATION.

  Notwithstanding section 4007(a) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1307(a)) and section 
4007.11 of title 29, Code of Federal Regulations, for plan 
years commencing after December 31, 2024, and before January 1, 
2026, the premium due date for such plan years shall be the 
fifteenth day of the ninth calendar month that begins on or 
after the first day of the premium payment year.

SEC. 503. MORTALITY TABLES.

  (a) Credibility.--For purposes of subclause (I) of section 
430(h)(3)(C)(iii) of the Internal Revenue Code of 1986 and 
subclause (I) of section 303(h)(3)(C)(iii) of the Employee 
Retirement Income Security Act of 1974, the determination of 
whether plans have credible information shall be made in 
accordance with established actuarial credibility theory, 
which--
          (1) is materially different from rules under such 
        section of such Code, including Revenue Procedure 2007-
        37, that are in effect on the date of the enactment of 
        this Act, and
          (2) permits the use of tables that reflect 
        adjustments to the tables described in subparagraphs 
        (A) and (B) of section 430(h)(3) of such Code, and 
        subparagraphs (A) and (B) of section 303(h)(3) of such 
        Act, if such adjustments are based on the experience 
        described in subclause (II) of section 
        430(h)(3)(C)(iii) of such Code and in subclause (II) of 
        section 303(h)(3)(C)(iii) of such Act.
  (b) Effective Date.--This section shall apply to plan years 
beginning after December 31, 2015.

SEC. 504. EXTENSION OF CURRENT FUNDING STABILIZATION PERCENTAGES TO 
                    2018 AND 2019.

  (a) Funding Stabilization Under the Internal Revenue Code of 
1986.--The table in subclause (II) of section 430(h)(2)(C)(iv) 
of the Internal Revenue Code of 1986 is amended to read as 
follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017,     90%..........................  110%
 2018, or 2019.
2020..................................  85%..........................  115%
2021..................................  80%..........................  120%
2022..................................  75%..........................  125%
After 2022............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

  (b) Funding Stabilization Under Employee Retirement Income 
Security Act of 1974.--
          (1) In general.--The table in subclause (II) of 
        section 303(h)(2)(C)(iv) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 
        1083(h)(2)(C)(iv)) is amended to read as follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017,     90%..........................  110%
 2018, or 2019.
2020..................................  85%..........................  115%
2021..................................  80%..........................  120%
2022..................................  75%..........................  125%
After 2022............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

          (2) Conforming amendments.--
                  (A) In general.--Section 101(f)(2)(D) of such 
                Act (29 U.S.C. 1021(f)(2)(D)) is amended--
                          (i) in clause (i) by striking ``and 
                        the Highway and Transportation Funding 
                        Act of 2014'' both places it appears 
                        and inserting ``, the Highway and 
                        Transportation Funding Act of 2014, and 
                        the Bipartisan Budget Act of 2015'', 
                        and
                          (ii) in clause (ii) by striking 
                        ``2020'' and inserting ``2022''.
                  (B) Statements.--The Secretary of Labor shall 
                modify the statements required under subclauses 
                (I) and (II) of section 101(f)(2)(D)(i) of such 
                Act to conform to the amendments made by this 
                section.
  (c) Effective Date.--The amendments made by this section 
shall apply with respect to plan years beginning after December 
31, 2015.

                         TITLE VI--HEALTH CARE

SEC. 601. MAINTAINING 2016 MEDICARE PART B PREMIUM AND DEDUCTIBLE 
                    LEVELS CONSISTENT WITH ACTUARIALLY FAIR RATES.

  (a) 2016 Premium and Deductible and Repayment Through Future 
Premiums.--Section 1839(a) of the Social Security Act (42 
U.S.C. 1395r(a)) is amended--
          (1) in the second sentence of paragraph (1), by 
        striking ``Such'' and inserting ``Subject to paragraphs 
        (5) and (6), such''; and
          (2) by adding at the end the following:
  ``(5)(A) In applying this part (including subsection (i) and 
section 1833(b)), the monthly actuarial rate for enrollees age 
65 and over for 2016 shall be determined as if subsection (f) 
did not apply.
  ``(B) Subsection (f) shall continue to be applied to 
paragraph (6)(A) (during a repayment month, as described in 
paragraph (6)(B)) and without regard to the application of 
subparagraph (A).
  ``(6)(A) With respect to a repayment month (as described in 
subparagraph (B)), the monthly premium otherwise established 
under paragraph (3) shall be increased by, subject to 
subparagraph (D), $3.
  ``(B) For purposes of this paragraph, a repayment month is a 
month during a year, beginning with 2016, for which a balance 
due amount is computed under subparagraph (C) as greater than 
zero.
  ``(C) For purposes of this paragraph, the balance due amount 
computed under this subparagraph, with respect to a month, is 
the amount estimated by the Chief Actuary of the Centers for 
Medicare & Medicaid Services to be equal to--
          ``(i) the amount transferred under section 
        1844(d)(1); plus
          ``(ii) the amount that is equal to the aggregate 
        reduction, for all individuals enrolled under this 
        part, in the income related monthly adjustment amount 
        as a result of the application of paragraph (5); minus
          ``(iii) the amounts payable under this part as a 
        result of the application of this paragraph for 
        preceding months.
  ``(D) If the balance due amount computed under subparagraph 
(C), without regard to this subparagraph, for December of a 
year would be less than zero, the Chief Actuary of the Centers 
for Medicare & Medicaid Services shall estimate, and the 
Secretary shall apply, a reduction to the dollar amount 
increase applied under subparagraph (A) for each month during 
such year in a manner such that the balance due amount for 
January of the subsequent year is equal to zero.''.
  (b) Transitional Government Contribution.--Section 1844 of 
the Social Security Act (42 U.S.C. 1395w) is amended--
          (1) in subsection (a), by adding at the end the 
        following:
``In applying paragraph (1), the amounts transferred under 
subsection (d)(1) with respect to enrollees described in 
subparagraphs (A) and (B) of such subsection shall be treated 
as premiums payable and deposited in the Trust Fund under 
subparagraphs (A) and (B), respectively, of paragraph (1).''; 
and
          (2) by adding at the end the following:
  ``(d)(1) For 2016, there shall be transferred from the 
General Fund to the Trust Fund an amount, as estimated by the 
Chief Actuary of the Centers for Medicare & Medicaid Services, 
equal to the reduction in aggregate premiums payable under this 
part for a month in such year (excluding any changes in amounts 
collected under section 1839(i)) that is attributable to the 
application of section 1839(a)(5)(A) with respect to--
  ``(A) enrollees age 65 and over; and
  ``(B) enrollees under age 65.
Such amounts shall be transferred from time to time as 
appropriate.
  ``(2) Premium increases affected under section 1839(a)(6) 
shall not be taken into account in applying subsection (a).
  ``(3) There shall be transferred from the Trust Fund to the 
General Fund of the Treasury amounts equivalent to the 
additional premiums payable as a result of the application of 
section 1839(a)(6), excluding the aggregate payments 
attributable to the application of section 
1839(i)(3)(A)(ii)(II).''.
  (c) Conforming Application of High Income Adjustments to 
Increased Monthly Premium in Same Manner as for Regular 
Medicare Premiums.--Section 1839(i)(3)(A)(ii) of the Social 
Security Act (42 U.S.C. 1395r(i)(3)(A)(ii)) is amended--
          (1) by striking ``amount.-200 percent'' and inserting 
        the following: ``amount.-
                          ``(I) 200 percent''; and
          (2) by striking the period at the end and inserting 
        ``; plus''; and
          (3) by adding at the end the following new subclause:
                                  ``(II) 4 times the amount of 
                                the increase in the monthly 
                                premium under subsection (a)(6) 
                                for a month in the year.''.
  (d) Conditional Application to 2017 if No Social Security 
COLA for 2017.--If there is no increase in the monthly 
insurance benefits payable under title II with respect to 
December 2016 pursuant to section 215(i), then the amendments 
made by this section shall be applied as if--
          (1) the reference to ``2016'' in paragraph (5)(A) of 
        section 1839(a) of the Social Security Act (42 U.S.C. 
        1395r(a)), as added by subsection (a)(2), was a 
        reference to ``2016 and 2017'';
          (2) the reference to ``a month during a year, 
        beginning with 2016'' in paragraph (6)(B) of section 
        1839 of such Act (42 U.S.C. 1395r(a)), as added by 
        subsection (a)(2), was a reference to ``a month in a 
        year, beginning with 2016 and beginning with 2017, 
        respectively''; and
          (3) the reference to ``2016'' in subsection (d)(1) of 
        section 1844 of such Act (42 U.S.C. 1395w), as added by 
        subsection (b)(2), was a reference to ``each of 2016 
        and 2017''.
Any increase in premiums effected under this subsection shall 
be in addition to the increase effected by the amendments made 
by subsection (a).
  (e) Construction Regarding No Authority to Initiate 
Application to Years After 2017.--Nothing in subsection (d) or 
the amendments made by this section shall be construed as 
authorizing the Secretary of Health and Human Services to 
initiate application of such subsection or amendments for a 
year after 2017.

SEC. 602. APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO 
                    GENERIC DRUGS.

  (a) In General.--Section 1927(c)(3) of the Social Security 
Act (42 U.S.C. 1396r-8(c)(3)) is amended--
          (1) in subparagraph (A), by striking ``The amount'' 
        and inserting ``Except as provided in subparagraph (C), 
        the amount''; and
          (2) by adding at the end the following new 
        subparagraph:
                  ``(C) Additional rebate.--
                          ``(i) In general.--The amount of the 
                        rebate specified in this paragraph for 
                        a rebate period, with respect to each 
                        dosage form and strength of a covered 
                        outpatient drug other than a single 
                        source drug or an innovator multiple 
                        source drug of a manufacturer, shall be 
                        increased in the manner that the rebate 
                        for a dosage form and strength of a 
                        single source drug or an innovator 
                        multiple source drug is increased under 
                        subparagraphs (A) and (D) of paragraph 
                        (2), except as provided in clause (ii).
                          ``(ii) Special rules for application 
                        of provision.--In applying 
                        subparagraphs (A) and (D) of paragraph 
                        (2) under clause (i)--
                                  ``(I) the reference in 
                                subparagraph (A)(i) of such 
                                paragraph to `1990' shall be 
                                deemed a reference to `2014';
                                  ``(II) subject to clause 
                                (iii), the reference in 
                                subparagraph (A)(ii) of such 
                                paragraph to `the calendar 
                                quarter beginning July 1, 1990' 
                                shall be deemed a reference to 
                                `the calendar quarter beginning 
                                July 1, 2014'; and
                                  ``(III) subject to clause 
                                (iii), the reference in 
                                subparagraph (A)(ii) of such 
                                paragraph to `September 1990' 
                                shall be deemed a reference to 
                                `September 2014';
                                  ``(IV) the references in 
                                subparagraph (D) of such 
                                paragraph to `paragraph 
                                (1)(A)(ii)', `this paragraph', 
                                and `December 31, 2009' shall 
                                be deemed references to 
                                `subparagraph (A)', `this 
                                subparagraph', and `December 
                                31, 2014', respectively; and
                                  ``(V) any reference in such 
                                paragraph to a `single source 
                                drug or an innovator multiple 
                                source drug' shall be deemed to 
                                be a reference to a drug to 
                                which clause (i) applies.
                          ``(iii) Special rule for certain 
                        noninnovator multiple source drugs.--In 
                        applying paragraph (2)(A)(ii)(II) under 
                        clause (i) with respect to a covered 
                        outpatient drug that is first marketed 
                        as a drug other than a single source 
                        drug or an innovator multiple source 
                        drug after April 1, 2013, such 
                        paragraph shall be applied--
                                  ``(I) by substituting `the 
                                applicable quarter' for `the 
                                calendar quarter beginning July 
                                1, 1990'; and
                                  ``(II) by substituting `the 
                                last month in such applicable 
                                quarter' for `September 1990'.
                          ``(iv) Applicable quarter defined.--
                        In this subsection, the term 
                        `applicable quarter' means, with 
                        respect to a drug described in clause 
                        (iii), the fifth full calendar quarter 
                        after which the drug is marketed as a 
                        drug other than a single source drug or 
                        an innovator multiple source drug.''.
  (b) Effective Date.--The amendments made by subsection (a) 
shall apply to rebate periods beginning after the date that is 
one year after the date of the enactment of this Act.

SEC. 603. TREATMENT OF OFF-CAMPUS OUTPATIENT DEPARTMENTS OF A PROVIDER.

  Section 1833(t) of the Social Security Act (42 U.S.C. 
1395l(t)) is amended--
          (1) in paragraph (1)(B)--
                  (A) in clause (iii), by striking ``but'' at 
                the end;
                  (B) in clause (iv), by striking the period at 
                the end and inserting ``; and''; and
                  (C) by adding at the end the following new 
                clause:
                          ``(v) does not include applicable 
                        items and services (as defined in 
                        subparagraph (A) of paragraph (21)) 
                        that are furnished on or after January 
                        1, 2017, by an off-campus outpatient 
                        department of a provider (as defined in 
                        subparagraph (B) of such paragraph).''; 
                        and
          (2) by adding at the end the following new paragraph:
          ``(21) Services furnished by an off-campus outpatient 
        department of a provider.--
                  ``(A) Applicable items and services.--For 
                purposes of paragraph (1)(B)(v) and this 
                paragraph, the term `applicable items and 
                services' means items and services other than 
                emergency department services (identified, as 
                of January 1, 2015, by HCPCS codes 99281-99285 
                (and as subsequently modified by the 
                Secretary)).
                  ``(B) Off-campus outpatient department of a 
                provider.--
                          ``(i) In general.--For purposes of 
                        paragraph (1)(B)(v) and this paragraph, 
                        subject to clause (ii), the term `off-
                        campus outpatient department of a 
                        provider' means a department of a 
                        provider (as defined in section 
                        413.65(a)(2) of title 42 of the Code of 
                        Federal Regulations, as in effect as of 
                        the date of the enactment of this 
                        paragraph) that is not located--
                                  ``(I) on the campus (as 
                                defined in such section 
                                413.65(a)(2)) of such provider; 
                                or
                                  ``(II) within the distance 
                                (described in such definition 
                                of campus) from a remote 
                                location of a hospital facility 
                                (as defined in such section 
                                413.65(a)(2)).
                          ``(ii) Exception.--For purposes of 
                        paragraph (1)(B)(v) and this paragraph, 
                        the term `off-campus outpatient 
                        department of a provider' shall not 
                        include a department of a provider (as 
                        so defined) that was billing under this 
                        subsection with respect to covered OPD 
                        services furnished prior to the date of 
                        the enactment of this paragraph.
                  ``(C) Availability of payment under other 
                payment systems.--Payments for applicable items 
                and services furnished by an off-campus 
                outpatient department of a provider that are 
                described in paragraph (1)(B)(v) shall be made 
                under the applicable payment system under this 
                part (other than under this subsection) if the 
                requirements for such payment are otherwise 
                met.
                  ``(D) Information needed for 
                implementation.--Each hospital shall provide to 
                the Secretary such information as the Secretary 
                determines appropriate to implement this 
                paragraph and paragraph (1)(B)(v) (which may 
                include reporting of information on a hospital 
                claim using a code or modifier and reporting 
                information about off-campus outpatient 
                departments of a provider on the enrollment 
                form described in section 1866(j)).
                  ``(E) Limitations.--There shall be no 
                administrative or judicial review under section 
                1869, section 1878, or otherwise of the 
                following:
                          ``(i) The determination of the 
                        applicable items and services under 
                        subparagraph (A) and applicable payment 
                        systems under subparagraph (C).
                          ``(ii) The determination of whether a 
                        department of a provider meets the term 
                        described in subparagraph (B).
                          ``(iii) Any information that 
                        hospitals are required to report 
                        pursuant to subparagraph (D).''.

SEC. 604. REPEAL OF AUTOMATIC ENROLLMENT REQUIREMENT.

  The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) 
is amended by repealing section 18A (as added by section 1511 
of the Patient Protection and Affordable Care Act (Public Law 
111-148)).

                          TITLE VII--JUDICIARY

SEC. 701. CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS.

  (a) Short Title.--This section may be cited as the ``Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 
2015''.
  (b) Amendments.--The Federal Civil Penalties Inflation 
Adjustment Act of 1990 (28 U.S.C. 2461 note) is amended--
          (1) in section 4--
                  (A) by striking the matter preceding 
                paragraph (1) and inserting the following:
  ``(a) In General.--Not later than July 1, 2016, and not later 
than January 15 of every year thereafter, and subject to 
subsections (c) and (d), the head of each agency 
shall--'';
                  (B) in paragraph (1)--
                          (i) by striking ``by regulation 
                        adjust'' and inserting ``in accordance 
                        with subsection (b), adjust''; and
                          (ii) by striking ``, the Tariff Act 
                        of 1930, the Occupational Safety and 
                        Health Act of 1970, or the Social 
                        Security Act'' and inserting `` or the 
                        Tariff Act of 1930'';
                  (C) in paragraph (2), by striking ``such 
                regulation'' and inserting ``such adjustment''; 
                and
                  (D) by adding at the end the following:
  ``(b) Procedures for Adjustments.--
          ``(1) Catch up adjustment.--For the first adjustment 
        made under subsection (a) after the date of enactment 
        of the Federal Civil Penalties Inflation Adjustment Act 
        Improvements Act of 2015--
                  ``(A) the head of an agency shall adjust 
                civil monetary penalties through an interim 
                final rulemaking; and
                  ``(B) the adjustment shall take effect not 
                later than August 1, 2016.
          ``(2) Subsequent adjustments.--For the second 
        adjustment made under subsection (a) after the date of 
        enactment of the Federal Civil Penalties Inflation 
        Adjustment Act Improvements Act of 2015, and each 
        adjustment thereafter, the head of an agency shall 
        adjust civil monetary penalties and shall make the 
        adjustment notwithstanding section 553 of title 5, 
        United States Code.
  ``(c) Exception.--For the first adjustment made under 
subsection (a) after the date of enactment of the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, 
the head of an agency may adjust the amount of a civil monetary 
penalty by less than the otherwise required amount if--
          ``(1) the head of the agency, after publishing a 
        notice of proposed rulemaking and providing an 
        opportunity for comment, determines in a final rule 
        that--
                  ``(A) increasing the civil monetary penalty 
                by the otherwise required amount will have a 
                negative economic impact; or
                  ``(B) the social costs of increasing the 
                civil monetary penalty by the otherwise 
                required amount outweigh the benefits; and
          ``(2) the Director of the Office of Management and 
        Budget concurs with the determination of the head of 
        the agency under paragraph (1).
  ``(d) Other Adjustments Made.--If a civil monetary penalty 
subject to a cost-of-living adjustment under this Act is, 
during the 12 months preceding a required cost-of-living 
adjustment, increased by an amount greater than the amount of 
the adjustment required under subsection (a), the head of the 
agency is not required to make the cost-of-living adjustment 
for that civil monetary penalty in that year.'';
          (2) in section 5--
                  (A) in subsection (a), by striking ``to the 
                nearest--'' and all that follows through the 
                end of subsection (a) and inserting ``to the 
                nearest multiple of $1.''; and
                  (B) by amending subsection (b) to read as 
                follows:
  ``(b) Definition.--
          ``(1) In general.--Except as provided in paragraph 
        (2), for purposes of subsection (a), the term `cost-of-
        living adjustment' means the percentage (if any) for 
        each civil monetary penalty by which--
                  ``(A) the Consumer Price Index for the month 
                of October preceding the date of the 
                adjustment, exceeds
                  ``(B) the Consumer Price Index for the month 
                of October 1 year before the month of October 
                referred to in subparagraph (A).
          ``(2) Initial adjustment.--
                  ``(A) In general.--Subject to subparagraph 
                (C), for the first inflation adjustment under 
                section 4 made by an agency after the date of 
                enactment of the Federal Civil Penalties 
                Inflation Adjustment Act Improvements Act of 
                2015, the term `cost-of-living adjustment' 
                means the percentage (if any) for each civil 
                monetary penalty by which the Consumer Price 
                Index for the month of October, 2015 exceeds 
                the Consumer Price Index for the month of 
                October of the calendar year during which the 
                amount of such civil monetary penalty was 
                established or adjusted under a provision of 
                law other than this Act.
                  ``(B) Application of adjustment.--The cost-
                of-living adjustment described in subparagraph 
                (A) shall be applied to the amount of the civil 
                monetary penalty as it was most recently 
                established or adjusted under a provision of 
                law other than this Act.
                  ``(C) Maximum adjustment.--The amount of the 
                increase in a civil monetary penalty under 
                subparagraph (A) shall not exceed 150 percent 
                of the amount of that civil monetary penalty on 
                the date of enactment of the Federal Civil 
                Penalties Inflation Adjustment Act Improvements 
                Act of 2015.'';
          (3) in section 6, by striking ``violations which 
        occur'' and inserting ``civil monetary penalties, 
        including those whose associated violation predated 
        such increase, which are assessed''; and
          (4) by adding at the end the following:

``SEC. 7. IMPLEMENTATION AND OVERSIGHT ENHANCEMENTS.

  ``(a) OMB Guidance.--Not later than February 29, 2016, not 
later than December 15, 2016, and December 15 of every year 
thereafter, the Director of the Office of Management and Budget 
shall issue guidance to agencies on implementing the inflation 
adjustments required under this Act.
  ``(b) Agency Financial Reports.--The head of each agency 
shall include in the Agency Financial Report submitted under 
OMB Circular A-136, or any successor thereto, information about 
the civil monetary penalties within the jurisdiction of the 
agency, including the adjustment of the civil monetary 
penalties by the head of the agency under this Act.
  ``(c) GAO Review.--The Comptroller General of the United 
States shall annually submit to Congress a report assessing the 
compliance of agencies with the inflation adjustments required 
under this Act, which may be included as part of another report 
submitted to Congress.''.
  (c) Repeal.--Section 31001(s) of the Debt Collection 
Improvement Act of 1996 (28 U.S.C. 2461 note) is amended by 
striking paragraph (2).

SEC. 702. CRIME VICTIMS FUND.

  There is hereby rescinded and permanently canceled 
$1,500,000,000 of the funds deposited or available in the Crime 
Victims Fund created by section 1402 of the Victims of Crime 
Act of 1984 (42 U.S.C. 10601).

SEC. 703. ASSETS FORFEITURE FUND.

  Of the amounts deposited in the Department of Justice Assets 
Forfeiture Fund, $746,000,000 are hereby rescinded and 
permanently cancelled.

                      TITLE VIII--SOCIAL SECURITY

SEC. 801. SHORT TITLE.

  This title may be cited as the ``Social Security Benefit 
Protection and Opportunity Enhancement Act of 2015''.

        Subtitle A--Ensuring Correct Payments and Reducing Fraud

SEC. 811. EXPANSION OF COOPERATIVE DISABILITY INVESTIGATIONS UNITS.

  (a) In General.--Not later than October 1, 2022, the 
Commissioner of Social Security shall take any necessary 
actions, subject to the availability of appropriations, to 
ensure that cooperative disability investigations units have 
been established, in areas where there is cooperation with 
local law enforcement agencies, that would cover each of the 50 
States, the District of Columbia, Puerto Rico, Guam, the 
Northern Mariana Islands, the Virgin Islands, and American 
Samoa.
  (b) Report.--Not later than 90 days after the date of the 
enactment of this Act and annually thereafter until the earlier 
of 2022 or the date on which nationwide coverage is achieved, 
the Commissioner of Social Security shall submit to the 
Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate a report describing a 
plan to implement the nationwide coverage described in 
subsection (a) and outlining areas where the Social Security 
Administration did not receive the cooperation of local law 
enforcement agencies.

SEC. 812. EXCLUSION OF CERTAIN MEDICAL SOURCES OF EVIDENCE.

  (a) In General.--Section 223(d)(5) of the Social Security Act 
(42 U.S.C. 423(d)(5)) is amended by adding at the end the 
following:
                  ``(C)(i) In making any determination with 
                respect to whether an individual is under a 
                disability or continues to be under a 
                disability, the Commissioner of Social Security 
                may not consider (except for good cause as 
                determined by the Commissioner) any evidence 
                furnished by--
                                  ``(I) any individual or 
                                entity who has been convicted 
                                of a felony under section 208 
                                or under section 1632;
                                  ``(II) any individual or 
                                entity who has been excluded 
                                from participation in any 
                                Federal health care program 
                                under section 1128; or
                                  ``(III) any person with 
                                respect to whom a civil money 
                                penalty or assessment has been 
                                imposed under section 1129 for 
                                the submission of false 
                                evidence.
                          ``(ii) To the extent and at such 
                        times as is necessary for the effective 
                        implementation of clause (i) of this 
                        subparagraph--
                                  ``(I) the Inspector General 
                                of the Social Security 
                                Administration shall transmit 
                                to the Commissioner information 
                                relating to persons described 
                                in subclause (I) or (III) of 
                                clause (i);
                                  ``(II) the Secretary of 
                                Health and Human Services shall 
                                transmit to the Commissioner 
                                information relating to persons 
                                described in subclause (II) of 
                                clause (i); and''.
  (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Commissioner of Social Security 
shall issue regulations to carry out the amendment made by 
subsection (a).
  (c) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to determinations of disability made 
on or after the earlier of--
          (1) the effective date of the regulations issued by 
        the Commissioner under subsection (b); or
          (2) one year after the date of the enactment of this 
        Act.

SEC. 813. NEW AND STRONGER PENALTIES.

  (a) Conspiracy to Commit Social Security Fraud.--
          (1) Amendment to title ii.--Section 208(a) of the 
        Social Security Act (42 U.S.C. 408(a)) is amended--
                  (A) in paragraph (7)(C), by striking ``or'' 
                at the end;
                  (B) in paragraph (8), by adding ``or'' at the 
                end; and
                  (C) by inserting after paragraph (8) the 
                following:
          ``(9) conspires to commit any offense described in 
        any of paragraphs (1) through (4),''.
          (2) Amendment to title viii.--Section 811(a) of such 
        Act (42 U.S.C. 1011(a)) is amended--
                  (A) in paragraph (3), by striking ``or'' at 
                the end;
                  (B) in paragraph (4), by striking the comma 
                and adding ``; or'' at the end; and
                  (C) by inserting after paragraph (4) the 
                following:
          ``(5) conspires to commit any offense described in 
        any of paragraphs (1) through (3),''.
          (3) Amendment to title xvi.--Section 1632(a) of such 
        Act (42 U.S.C. 1383a(a)) is amended--
                  (A) in paragraph (3), by striking ``or'' at 
                the end;
                  (B) in paragraph (4), by adding ``or'' at the 
                end; and
                  (C) by inserting after paragraph (4) the 
                following:
          ``(5) conspires to commit any offense described in 
        any of paragraphs (1) through (3),''.
  (b) Increased Criminal Penalties for Certain Individuals 
Violating Positions of Trust.--
          (1) Amendment to title ii.--Section 208(a) of the 
        Social Security Act (42 U.S.C. 408(a)), as amended by 
        subsection (a), is further amended by striking the 
        period at the end and inserting ``, except that in the 
        case of a person who receives a fee or other income for 
        services performed in connection with any determination 
        with respect to benefits under this title (including a 
        claimant representative, translator, or current or 
        former employee of the Social Security Administration), 
        or who is a physician or other health care provider who 
        submits, or causes the submission of, medical or other 
        evidence in connection with any such determination, 
        such person shall be guilty of a felony and upon 
        conviction thereof shall be fined under title 18, 
        United States Code, or imprisoned for not more than ten 
        years, or both.''.
          (2) Amendment to title viii.--Section 811(a) of such 
        Act (42 U.S.C. 1011(a)), as amended by subsection (a), 
        is further amended by striking the period at the end 
        and inserting ``, except that in the case of a person 
        who receives a fee or other income for services 
        performed in connection with any determination with 
        respect to benefits under this title (including a 
        claimant representative, translator, or current or 
        former employee of the Social Security Administration), 
        or who is a physician or other health care provider who 
        submits, or causes the submission of, medical or other 
        evidence in connection with any such determination, 
        such person shall be guilty of a felony and upon 
        conviction thereof shall be fined under title 18, 
        United States Code, or imprisoned for not more than ten 
        years, or both.''.
          (3) Amendment to title xvi.--Section 1632(a) of such 
        Act (42 U.S.C. 1383a(a)), as amended by subsection (a), 
        is further amended by striking the period at the end 
        and inserting ``, except that in the case of a person 
        who receives a fee or other income for services 
        performed in connection with any determination with 
        respect to benefits under this title (including a 
        claimant representative, translator, or current or 
        former employee of the Social Security Administration), 
        or who is a physician or other health care provider who 
        submits, or causes the submission of, medical or other 
        evidence in connection with any such determination, 
        such person shall be guilty of a felony and upon 
        conviction thereof shall be fined under title 18, 
        United States Code, or imprisoned for not more than ten 
        years, or both.''.
  (c) Increased Civil Monetary Penalties for Certain 
Individuals Violating Positions of Trust.--Section 1129(a)(1) 
of the Social Security Act (42 U.S.C. 1320a-8(a)(1)) is 
amended, in the matter following subparagraph (C), by inserting 
after ``withholding disclosure of such fact'' the following: 
``, except that in the case of such a person who receives a fee 
or other income for services performed in connection with any 
such determination (including a claimant representative, 
translator, or current or former employee of the Social 
Security Administration) or who is a physician or other health 
care provider who submits, or causes the submission of, medical 
or other evidence in connection with any such determination, 
the amount of such penalty shall be not more than $7,500''.
  (d) No Benefits Payable to Individuals for Whom a Civil 
Monetary Penalty Is Imposed for Fraudulently Concealing Work 
Activity.--Section 222(c)(5) of the Social Security Act (42 
U.S.C. 422(c)(5)) is amended by inserting after ``conviction by 
a Federal court'' the following: ``, or the imposition of a 
civil monetary penalty under section 1129,''.

SEC. 814. REFERENCES TO SOCIAL SECURITY AND MEDICARE IN ELECTRONIC 
                    COMMUNICATIONS.

  (a) In General.--Section 1140(a)(1) of the Social Security 
Act (42 U.S.C. 1320b-10(a)(1)) is amended by inserting 
``(including any Internet or other electronic communication)'' 
after ``or other communication''.
  (b) Each Communication Treated as Separate Violation.--
Section 1140(b) of such Act (42 U.S.C. 1320b-10(b)) is amended 
by inserting after the second sentence the following: ``In the 
case of any items referred to in subsection (a)(1) consisting 
of Internet or other electronic communications, each 
dissemination, viewing, or accessing of such a communication 
which contains one or more words, letters, symbols, or emblems 
in violation of subsection (a) shall represent a separate 
violation''.

SEC. 815. CHANGE TO CAP ADJUSTMENT AUTHORITY.

  Section 251(b)(2)(B) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(B)) is 
amended--
          (1) in clause (i)--
                  (A) in the matter before subclause (I), by 
                striking ``and for the cost associated with 
                conducting redeterminations of eligibility 
                under title XVI of the Social Security Act'' 
                and inserting ``, for the cost associated with 
                conducting redeterminations of eligibility 
                under title XVI of the Social Security Act, for 
                the cost of co-operative disability 
                investigation units, and for the cost 
                associated with the prosecution of fraud in the 
                programs and operations of the Social Security 
                Administration by Special Assistant United 
                States Attorneys'';
                  (B) in subclause (VI), by striking 
                ``$1,309,000,000'''' and inserting 
                ``$1,546,000,000'';
                  (C) in subclause (VII), by striking 
                ``$1,309,000,000'' and inserting 
                ``$1,462,000,000'';
                  (D) in subclause (VIII), by striking 
                ``$1,309,000,000'' and inserting 
                ``$1,410,000,000''; and
                  (E) in subclause (X), by striking 
                ``$1,309,000,000'' and inserting 
                ``$1,302,000,000'';
          (2) in clause (ii)(I), by inserting ``, including 
        work-related continuing disability reviews to determine 
        whether earnings derived from services demonstrate an 
        individual's ability to engage in substantial gainful 
        activity'' before the semicolon; and
          (3) in clause (ii)(III), by striking ``and 
        redeterminations'' and inserting ``, redeterminations, 
        co-operative disability investigation units, and fraud 
        prosecutions''.

     Subtitle B--Promoting Opportunity for Disability Beneficiaries

SEC. 821. TEMPORARY REAUTHORIZATION OF DISABILITY INSURANCE 
                    DEMONSTRATION PROJECT AUTHORITY.

  (a) Termination Date.--Section 234(d)(2) of the Social 
Security Act (42 U.S.C. 434(d)(2)) is amended by striking 
``December 18, 2005'' and inserting ``December 31, 2021, and 
the authority to carry out such projects shall terminate on 
December 31, 2022''.
  (b) Authority to Waive Compliance With Benefits 
Requirements.--Section 234(c) of such Act is amended by 
striking ``December 17, 2005'' and inserting ``December 30, 
2021''.

SEC. 822. MODIFICATION OF DEMONSTRATION PROJECT AUTHORITY.

  (a) In General.--Section 234(a)(1) of the Social Security Act 
(42 U.S.C. 434(a)(1)) is amended in the matter preceding 
subparagraph (A) by inserting ``to promote attachment to the 
labor force and'' after ``designed''.
  (b) Congressional Review Period.--Section 234(c) of the 
Social Security Act (42 U.S.C. 434(c)), as amended by section 
821(b) of this Act, is further amended by inserting ``including 
the objectives of the experiment or demonstration project, the 
expected annual and total costs, and the dates on which the 
experiment or demonstration project is expected to start and 
finish,'' after ``thereof,''
  (c) Additional Requirements.--Section 234 of the Social 
Security Act (42 U.S.C. 434), as amended by subsection (b), is 
further amended by adding at the end the following:
  ``(e) Additional Requirements.--In developing and carrying 
out any experiment or demonstration project under this section, 
the Commissioner may not require any individual to participate 
in such experiment or demonstration project and shall ensure--
          ``(1) that the voluntary participation of individuals 
        in such experiment or demonstration project is obtained 
        through informed written consent which satisfies the 
        requirements for informed consent established by the 
        Commissioner for use in such experiment or 
        demonstration project in which human subjects are at 
        risk;
          ``(2) that any individual's voluntary agreement to 
        participate in any such experiment or demonstration 
        project may be revoked by such individual at any time; 
        and
          ``(3) that such experiment or demonstration project 
        is expected to yield statistically significant 
        results.''.
  (d) Annual Reporting Deadline.--Section 234(d)(1) of such Act 
is amended by striking ``June 9'' and inserting ``September 
30''.

SEC. 823. PROMOTING OPPORTUNITY DEMONSTRATION PROJECT.

  Section 234 of the Social Security Act (42 U.S.C. 434), as 
amended by section 822 of this Act, is further amended by 
adding at the end the following:
  ``(f) Promoting Opportunity Demonstration Project.--
          ``(1) In general.--The Commissioner shall carry out a 
        demonstration project under this subsection as 
        described in paragraph (2) during a 5-year period 
        beginning not later than January 1, 2017.
          ``(2) Benefit offset.--Under the demonstration 
        project described in this paragraph, with respect to 
        any individual participating in the project who is 
        otherwise entitled to a benefit under section 223(a)(1) 
        for a month--
                  ``(A) any such benefit otherwise payable to 
                the individual for such month (other than a 
                benefit payable for any month prior to the 1st 
                month beginning after the date on which the 
                individual's entitlement to such benefit is 
                determined) shall be reduced by $1 for each $2 
                by which the individual's earnings derived from 
                services paid during such month exceeds an 
                amount equal to the individual's impairment-
                related work expenses for such month (as 
                determined under paragraph (3)), except that 
                such benefit may not be reduced below $0;
                  ``(B) no benefit shall be payable under 
                section 202 on the basis of the wages and self-
                employment income of the individual for any 
                month for which the benefit of such individual 
                under section 223(a)(1) is reduced to $0 
                pursuant to subparagraph (A);
                  ``(C) entitlement to any benefit described in 
                subparagraph (A) or (B) shall not terminate due 
                to earnings derived from services except 
                following the first month for which such 
                benefit has been reduced to $0 pursuant to 
                subparagraph (A) (and the trial work period (as 
                defined in section 222(c)) and extended period 
                of eligibility shall not apply to any such 
                individual for any such month); and
                  ``(D) in any case in which such an individual 
                is entitled to hospital insurance benefits 
                under part A of title XVIII by reason of 
                section 226(b) and such individual's 
                entitlement to a benefit described in 
                subparagraph (A) or (B) or status as a 
                qualified railroad retirement beneficiary is 
                terminated pursuant to subparagraph (C), such 
                individual shall be deemed to be entitled to 
                such benefits or to occupy such status 
                (notwithstanding the termination of such 
                entitlement or status) for the period of 
                consecutive months throughout all of which the 
                physical or mental impairment, on which such 
                entitlement or status was based, continues, and 
                throughout all of which such individual would 
                have been entitled to monthly insurance 
                benefits under title II or as a qualified 
                railroad retirement beneficiary had such 
                termination of entitlement or status not 
                occurred, but not in excess of 93 such months.
          ``(3) Impairment-related work expenses.--
                  ``(A) In general.--For purposes of paragraph 
                (2)(A) and except as provided in subparagraph 
                (C), the amount of an individual's impairment-
                related work expenses for a month is deemed to 
                be the minimum threshold amount.
                  ``(B) Minimum threshold amount.--In this 
                paragraph, the term `minimum threshold amount' 
                means an amount, to be determined by the 
                Commissioner, which shall not exceed the amount 
                sufficient to demonstrate that an individual 
                has rendered services in a month, as determined 
                by the Commissioner under section 222(c)(4)(A). 
                The Commissioner may test multiple minimum 
                threshold amounts.
                  ``(C) Exception for itemized impairment-
                related work expenses.--
                          ``(i) In general.--Notwithstanding 
                        subparagraph (A), in any case in which 
                        the amount of such an individual's 
                        itemized impairment-related work 
                        expenses (as defined in clause (ii)) 
                        for a month is greater than the minimum 
                        threshold amount, the amount of the 
                        individual's impairment-related work 
                        expenses for the month shall be equal 
                        to the amount of the individual's 
                        itemized impairment-related work 
                        expenses (as so defined) for the month.
                          ``(ii) Definition.--In this 
                        subparagraph, the term `itemized 
                        impairment-related work expenses' means 
                        the amount excluded under section 
                        223(d)(4)(A) from an individual's 
                        earnings for a month in determining 
                        whether an individual is able to engage 
                        in substantial gainful activity by 
                        reason of such earnings in such month, 
                        except that such amount does not 
                        include the cost to the individual of 
                        any item or service for which the 
                        individual does not provide to the 
                        Commissioner a satisfactory itemized 
                        accounting.
                  ``(D) Limitation.--Notwithstanding the other 
                provisions of this paragraph, for purposes of 
                paragraph (2)(A), the amount of an individual's 
                impairment-related work expenses for a month 
                shall not exceed the amount of earnings derived 
                from services, prescribed by the Commissioner 
                under regulations issued pursuant to section 
                223(d)(4)(A), sufficient to demonstrate an 
                individual's ability to engage in substantial 
                gainful activity.''.

SEC. 824. USE OF ELECTRONIC PAYROLL DATA TO IMPROVE PROGRAM 
                    ADMINISTRATION.

  (a) In General.--Title XI of the Social Security Act (42 
U.S.C. 1301, et seq.) is amended by inserting after section 
1183 the following: ``

           ``INFORMATION EXCHANGE WITH PAYROLL DATA PROVIDERS

  ``Sec. 1184.  (a) In General.--The Commissioner of Social 
Security may enter into an information exchange with a payroll 
data provider for purposes of--
          ``(1) efficiently administering--
                  ``(A) monthly insurance benefits under 
                subsections (d)(1)(B)(ii), (d)(6)(A)(ii), 
                (d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of 
                section 202 and subsection (a)(1) of section 
                223; and
                  ``(B) supplemental security income benefits 
                under title XVI; and
          ``(2) preventing improper payments of such benefits 
        without the need for verification by independent or 
        collateral sources.
  ``(b) Notification Requirements.--Before entering into an 
information exchange pursuant to subsection (a), the 
Commissioner shall publish in the Federal Register a notice 
describing the information exchange and the extent to which the 
information received through such exchange is--
          ``(1) relevant and necessary to--
                  ``(A) accurately determine entitlement to, 
                and the amount of, benefits described under 
                subparagraph (A) of subsection (a)(1);
                  ``(B) accurately determine eligibility for, 
                and the amount of, benefits described in 
                subparagraph (B) of such subsection; and
                  ``(C) prevent improper payment of such 
                benefits; and
          ``(2) sufficiently accurate, up-to-date, and 
        complete.
  ``(c) Definitions.--For purposes of this section:
          ``(1) Payroll data provider.--The term `payroll data 
        provider' means payroll providers, wage verification 
        companies, and other commercial or non-commercial 
        entities that collect and maintain data regarding 
        employment and wages, without regard to whether the 
        entity provides such data for a fee or without cost.
          ``(2) Information exchange.--The term `information 
        exchange' means the automated comparison of a system of 
        records maintained by the commissioner of Social 
        Security with records maintained by a payroll data 
        provider.''.
  (b) Authorization to Access Information Held by Payroll Data 
Providers.--
          (1) Amendment to title ii.--Section 225 of the Social 
        Security Act (42 U.S.C. 425) is amended by adding at 
        the end the following:
  ``(c) Access to Information Held by Payroll Data Providers.--
(1) The Commissioner of Social Security may require each 
individual who applies for or is entitled to monthly insurance 
benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), 
(d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of section 202 and 
subsection (a)(1) of section 223 to provide authorization by 
the individual for the Commissioner to obtain from any payroll 
data provider (as defined in section 1184(c)(1)) any record 
held by the payroll data provider with respect to the 
individual whenever the Commissioner determines the record is 
needed in connection with a determination of initial or ongoing 
entitlement to such benefits.
  ``(2) An authorization provided by an individual under this 
subsection shall remain effective until the earliest of--
          ``(A) the rendering of a final adverse decision on 
        the individual's application or entitlement to benefits 
        under this title;
          ``(B) the termination of the individual's entitlement 
        to benefits under this title; or
          ``(C) the express revocation by the individual of the 
        authorization, in a written notification to the 
        Commissioner.
  ``(3) The Commissioner of Social Security is not required to 
furnish any authorization obtained pursuant to this subsection 
to the payroll data provider.
  ``(4) The Commissioner shall inform any person who provides 
authorization pursuant to this clause of the duration and scope 
of the authorization.
  ``(5) If an individual who applies for or is entitled to 
benefits under this title refuses to provide, or revokes, any 
authorization under this subsection, subsection (d) shall not 
apply to such individual beginning with the first day of the 
first month in which he or she refuses or revokes such 
authorization.''.
          (2) Title xvi.--Section 1631(e)(1)(B) of the Social 
        Security Act (42 U.S.C. 1383(e)(1)(B)) is amended by 
        adding at the end the following:
  ``(iii)(I) The Commissioner of Social Security may require 
each applicant for, or recipient of, benefits under this title 
to provide authorization by the applicant, recipient or legal 
guardian (or by any other person whose income or resources are 
material to the determination of the eligibility of the 
applicant or recipient for such benefits) for the Commissioner 
to obtain from any payroll data provider (as defined in section 
1184(c)(1)) any record held by the payroll data provider with 
respect to the applicant or recipient (or any such other 
person) whenever the Commissioner determines the record is 
needed in connection with a determination of initial or ongoing 
eligibility or the amount of such benefits.
  ``(II) An authorization provided by an applicant, recipient 
or legal guardian (or any other person whose income or 
resources are material to the determination of the eligibility 
of the applicant or recipient) under this clause shall remain 
effective until the earliest of--
          ``(aa) the rendering of a final adverse decision on 
        the applicant's application for eligibility for 
        benefits under this title;
          ``(bb) the cessation of the recipient's eligibility 
        for benefits under this title;
          ``(cc) the express revocation by the applicant, or 
        recipient (or such other person referred to in 
        subclause (I)) of the authorization, in a written 
        notification to the Commissioner; or
          ``(dd) the termination of the basis upon which the 
        Commissioner considers another person's income and 
        resources available to the applicant or recipient.
  ``(III) The Commissioner of Social Security is not required 
to furnish any authorization obtained pursuant to this clause 
to the payroll data provider.
  ``(IV) The Commissioner shall inform any person who provides 
authorization pursuant to this clause of the duration and scope 
of the authorization.
  ``(V) If an applicant for, or recipient of, benefits under 
this title (or any such other person referred to in subclause 
(I)) refuses to provide, or revokes, any authorization required 
by subclause (I), paragraph (2)(B) and paragraph (10) shall not 
apply to such applicant or recipient beginning with the first 
day of the first month in which he or she refuses or revokes 
such authorization.''.
  (c) Reporting Responsibilities for Beneficiaries Subject to 
Information Exchange With Payroll Data Provider.--
          (1) Amendment to title ii.--Section 225 of the Social 
        Security (42 U.S.C. 425), as amended by subsection 
        (b)(1), is further amended by adding at the end the 
        following:
  ``(d) An individual who has authorized the Commissioner of 
Social Security to obtain records from a payroll data provider 
under subsection (c) shall not be subject to a penalty under 
section 1129A for any omission or error with respect to such 
individual's wages as reported by the payroll data provider.''.
          (2) Amendment to title xvi.--Section 1631(e) of the 
        Social Security Act (42 U.S.C. 1383(e)) is amended--
                  (A) in paragraph (2)--
                          (i) by striking ``In the case of the 
                        failure'' and inserting ``(A) In the 
                        case of the failure'';
                          (ii) by redesignating subparagraphs 
                        (A) through (C) as clauses (i) through 
                        (iii), respectively; and
                          (iii) by adding at the end the 
                        following:
  ``(B) For purposes of subparagraph (A), the Commissioner of 
Social Security shall find that good cause exists for the 
failure of, or delay by, an individual in submitting a report 
of an event or change in circumstances relevant to eligibility 
for or amount of benefits under this title in any case where--
          ``(i) the individual (or another person referred to 
        in paragraph (1)(B)(iii)(I)) has provided authorization 
        to the Commissioner to access payroll data records 
        related to the individual; and
          ``(ii) the event or change in circumstance is a 
        change in the individual's employer.''; and
                  (B) by adding at the end the following:
  ``(10) An individual who has authorized the Commissioner of 
Social Security to obtain records from a payroll data provider 
under paragraph (1)(B)(iii) (or on whose behalf another person 
described in subclause (I) of such paragraph has provided such 
authorization) shall not be subject to a penalty under section 
1129A for any omission or error with respect to such 
individual's wages as reported by the payroll data provider.''.
  (d) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Commissioner of Social Security 
shall prescribe by regulation procedures for implementing the 
Commissioner's access to and use of information held by payroll 
providers, including--
          (1) guidelines for establishing and maintaining 
        information exchanges with payroll providers, pursuant 
        to section 1184 of the Social Security Act;
          (2) beneficiary authorizations;
          (3) reduced wage reporting responsibilities for 
        individuals who authorize the Commissioner to access 
        information held by payroll data providers through an 
        information exchange; and
          (4) procedures for notifying individuals in writing 
        when they become subject to such reduced wage reporting 
        requirements and when such reduced wage reporting 
        requirements no longer apply to them.
  (e) Effective Date.--The amendments made by this section 
shall take effect on the date that is 1 year after the date of 
the enactment of this Act.

SEC. 825. TREATMENT OF EARNINGS DERIVED FROM SERVICES.

  (a) In General.--Section 223(d)(4) of the Social Security Act 
(42 U.S.C. 423(d)(4)) is amended by adding at the end the 
following:
  ``(C)(i) Subject to clause (ii), in determining when earnings 
derived from services demonstrate an individual's ability to 
engage in substantial gainful activity, such earnings shall be 
presumed to have been earned--
          ``(I) in making a determination of initial 
        entitlement on the basis of disability, in the month in 
        which the services were performed from which such 
        earnings were derived; and
          ``(II) in any other case, in the month in which such 
        earnings were paid.
  ``(ii) A presumption made under clause (i) shall not apply to 
a determination described in such clause if--
          ``(I) the Commissioner can reasonably establish, 
        based on evidence readily available at the time of such 
        determination, that the earnings were earned in a 
        different month than when paid; or
          ``(II) in any case in which there is a determination 
        that no benefit is payable due to earnings, after the 
        individual is notified of the presumption made and 
        provided with an opportunity to submit additional 
        information along with an explanation of what 
        additional information is needed, the individual shows 
        to the satisfaction of the Commissioner that such 
        earnings were earned in another month.''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall take effect upon the date of the enactment of this Act, 
or as soon as practicable thereafter.

SEC. 826. ELECTRONIC REPORTING OF EARNINGS.

  (a) In General.--Not later than September 30, 2017, the 
Commissioner of Social Security shall establish and implement a 
system that--
          (1) allows an individual entitled to a monthly 
        insurance benefit based on disability under title II of 
        the Social Security Act (or a representative of the 
        individual) to report to the Commissioner the 
        individual's earnings derived from services through 
        electronic means, including by telephone and Internet; 
        and
          (2) automatically issues a receipt to the individual 
        (or representative) after receiving each such report.
  (b) Supplemental Security Income Reporting System as Model.--
The Commissioner shall model the system established under 
subsection (a) on the electronic wage reporting systems for 
recipients of supplemental security income under title XVI of 
such Act.

            Subtitle C--Protecting Social Security Benefits

SEC. 831. CLOSURE OF UNINTENDED LOOPHOLES.

  (a) Presumed Filing of Application by Individuals Eligible 
for Old-age Insurance Benefits and for Wife's or Husband's 
Insurance Benefits.--
          (1) In general.--Section 202(r) of the Social 
        Security Act (42 U.S.C. 402(r)) is amended by striking 
        paragraphs (1) and (2) and inserting the following:
          ``(1) If an individual is eligible for a wife's or 
        husband's insurance benefit (except in the case of 
        eligibility pursuant to clause (ii) of subsection 
        (b)(1)(B) or subsection (c)(1)(B), as appropriate), in 
        any month for which the individual is entitled to an 
        old-age insurance benefit, such individual shall be 
        deemed to have filed an application for wife's or 
        husband's insurance benefits for such month.
          ``(2) If an individual is eligible (but for section 
        202(k)(4)) for an old-age insurance benefit in any 
        month for which the individual is entitled to a wife's 
        or husband's insurance benefit (except in the case of 
        entitlement pursuant to clause (ii) of subsection 
        (b)(1)(B) or subsection (c)(1)(B), as appropriate), 
        such individual shall be deemed to have filed an 
        application for old-age insurance benefits--
                  ``(A) for such month, or
                  ``(B) if such individual is also entitled to 
                a disability insurance benefit for such month, 
                in the first subsequent month for which such 
                individual is not entitled to a disability 
                insurance benefit.''.
          (2) Conforming amendment.--Section 202 of the Social 
        Security Act (42 U.S.C. 402) is amended--
                  (A) in subsection (b)(1), by striking 
                subparagraph (B) and inserting the following:
          ``(B)(i) has attained age 62, or
          ``(ii) in the case of a wife, has in her care 
        (individually or jointly with such individual) at the 
        time of filing such application a child entitled to a 
        child's insurance benefit on the basis of the wages and 
        self-employment income of such individual,''; and
                  (B) in subsection (c)(1), by striking 
                subparagraph (B) and inserting the following:
          ``(B)(i) has attained age 62, or
          ``(ii) in the case of a husband, has in his care 
        (individually or jointly with such individual) at the 
        time of filing such application a child entitled to a 
        child's insurance benefit on the basis of the wages and 
        self-employment income of such individual,''.
          (3) Effective date.--The amendments made by this 
        subsection shall apply with respect to individuals who 
        attain age 62 in any calendar year after 2015.
  (b) Voluntary Suspension of Benefits.--
          (1) In general.--Section 202 of the Social Security 
        Act (42 U.S.C. 402) is amended by adding at the end the 
        following:
  ``(z) Voluntary Suspension.--(1)(A) Except as otherwise 
provided in this subsection, any individual who has attained 
retirement age (as defined in section 216(l)) and is entitled 
to old-age insurance benefits may request that payment of such 
benefits be suspended--
                  ``(i) beginning with the month following the 
                month in which such request is received by the 
                Commissioner, and
                  ``(ii) ending with the earlier of the month 
                following the month in which a request by the 
                individual for a resumption of such benefits is 
                so received or the month following the month in 
                which the individual attains the age of 70.
  ``(2) An individual may not suspend such benefits under this 
subsection, and any suspension of such benefits under this 
subsection shall end, effective with respect to any month in 
which the individual becomes subject to--
          ``(A) mandatory suspension of such benefits under 
        section 202(x);
          ``(B) termination of such benefits under section 
        202(n);
          ``(C) a penalty under section 1129A imposing 
        nonpayment of such benefits; or
          ``(D) any other withholding, in whole or in part, of 
        such benefits under any other provision of law that 
        authorizes recovery of a debt by withholding such 
        benefits.
  ``(3) In the case of an individual who requests that such 
benefits be suspended under this subsection, for any month 
during the period in which the suspension is in effect--
          ``(A) no retroactive benefits (as defined in 
        subsection (j)(4)(B)(iii)) shall be payable to such 
        individual;
          ``(B) no monthly benefit shall be payable to any 
        other individual on the basis of such individual's 
        wages and self-employment income; and
          ``(C) no monthly benefit shall be payable to such 
        individual on the basis of another individual's wages 
        and self-employment income.''.
          (2) Conforming amendment.--Section 202(w)(2)(B)(ii) 
        of the Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) 
        is amended by inserting ``under section 202(z)'' after 
        ``request''.
          (3) Effective date.--The amendments made by this 
        subsection shall apply with respect to benefits payable 
        for months beginning at least 180 days after the date 
        of the enactment of this Act.

SEC. 832. REQUIREMENT FOR MEDICAL REVIEW.

  (a) In General.--Section 221(h) of the Social Security Act 
(42 U.S.C. 421(h)) is amended to read as follows:
  ``(h) An initial determination under subsection (a), (c), 
(g), or (i) shall not be made until the Commissioner of Social 
Security has made every reasonable effort to ensure--
          ``(1) in any case where there is evidence which 
        indicates the existence of a mental impairment, that a 
        qualified psychiatrist or psychologist has completed 
        the medical portion of the case review and any 
        applicable residual functional capacity assessment; and
          ``(2) in any case where there is evidence which 
        indicates the existence of a physical impairment, that 
        a qualified physician has completed the medical portion 
        of the case review and any applicable residual 
        functional capacity assessment.''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to determinations of disability made 
on or after the date that is 1 year after the date of the 
enactment of this Act.

SEC. 833. REALLOCATION OF PAYROLL TAX REVENUE.

          (1) Wages.--Section 201(b)(1) of the Social Security 
        Act (42 U.S.C. 401(b)(1)) is amended by striking ``and 
        (R) 1.80 per centum of the wages (as so defined) paid 
        after December 31, 1999, and so reported'' and 
        inserting ``(R) 1.80 per centum of the wages (as so 
        defined) paid after December 31, 1999, and before 
        January 1, 2016, and so reported, (S) 2.37 per centum 
        of the wages (as so defined) paid after December 31, 
        2015, and before January 1, 2019, and so reported, and 
        (T) 1.80 per centum of the wages (as so defined) paid 
        after December 31, 2018, and so reported,''.
          (2) Self-employment income.--Section 201(b)(2) of 
        such Act (42 U.S.C. 401(b)(2)) is amended by striking 
        ``and (R) 1.80 per centum of the amount of self-
        employment income (as so defined) so reported for any 
        taxable year beginning after December 31, 1999'' and 
        inserting ``(R) 1.80 per centum of the amount of self-
        employment income (as so defined) so reported for any 
        taxable year beginning after December 31, 1999, and 
        before January 1, 2016, (S) 2.37 per centum of the 
        amount of self-employment income (as so defined) so 
        reported for any taxable year beginning after December 
        31, 2015, and before January 1, 2019, and (T) 1.80 per 
        centum of the amount of self-employment income (as so 
        defined) so reported for any taxable year beginning 
        after December 31, 2018''.
          (3) Effective date.--The amendments made by this 
        section shall apply with respect to wages paid after 
        December 31, 2015, and self-employment income for 
        taxable years beginning after such date.

SEC. 834. ACCESS TO FINANCIAL INFORMATION FOR WAIVERS AND ADJUSTMENTS 
                    OF RECOVERY.

  (a) Access to Financial Information for Old-age, Survivors, 
and Disability Insurance Waivers.--Section 204(b) of the Social 
Security Act (42 U.S.C. 404(b)) is amended to read as follows:
  ``(b)(1) In any case in which more than the correct amount of 
payment has been made, there shall be no adjustment of payments 
to, or recovery by the United States from, any person who is 
without fault if such adjustment or recovery would defeat the 
purpose of this title or would be against equity and good 
conscience.
  ``(2) In making for purposes of this subsection any 
determination of whether any individual is without fault, the 
Commissioner of Social Security shall specifically take into 
account any physical, mental, educational, or linguistic 
limitation such individual may have (including any lack of 
facility with the English language).
  ``(3)(A) In making for purposes of this subsection any 
determination of whether such adjustment or recovery would 
defeat the purpose of this title, the Commissioner of Social 
Security shall require an individual to provide authorization 
for the Commissioner to obtain (subject to the cost 
reimbursement requirements of section 1115(a) of the Right to 
Financial Privacy Act) from any financial institution (within 
the meaning of section 1101(1) of such Act) any financial 
record (within the meaning of section 1101(2) of such Act) held 
by the institution with respect to such individual whenever the 
Commissioner determines the record is needed in connection with 
a determination with respect to such adjustment or recovery.
  ``(B) Notwithstanding section 1104(a)(1) of the Right to 
Financial Privacy Act, an authorization provided by an 
individual pursuant this paragraph shall remain effective until 
the earlier of--
          ``(i) the rendering of a final decision on whether 
        adjustment or recovery would defeat the purpose of this 
        title; or
          ``(ii) the express revocation by the individual of 
        the authorization, in a written notification to the 
        Commissioner.
  ``(C)(i) An authorization obtained by the Commissioner of 
Social Security pursuant this paragraph shall be considered to 
meet the requirements of the Right to Financial Privacy Act for 
purposes of section 1103(a) of such Act, and need not be 
furnished to the financial institution, notwithstanding section 
1104(a) of such Act.
  ``(ii) The certification requirements of section 1103(b) of 
the Right to Financial Privacy Act shall not apply to requests 
by the Commissioner of Social Security pursuant to an 
authorization provided under this paragraph.
  ``(iii) A request by the Commissioner pursuant to an 
authorization provided under this paragraph is deemed to meet 
the requirements of section 1104(a)(3) of the Right to 
Financial Privacy Act and the flush language of section 1102 of 
such Act.
  ``(D) The Commissioner shall inform any person who provides 
authorization pursuant to this paragraph of the duration and 
scope of the authorization.
  ``(E) If an individual refuses to provide, or revokes, any 
authorization for the Commissioner of Social Security to obtain 
from any financial institution any financial record, the 
Commissioner may, on that basis, determine that adjustment or 
recovery would not defeat the purpose of this title.''.
  (b) Access to Financial Information for Supplemental Security 
Income Waivers.--
          (1) In general.--Section 1631(b)(1)(B) of the Social 
        Security Act (42 U.S.C. 1383(b)(1)(B)) is amended by 
        adding at the end the following: ``In making for 
        purposes of this subparagraph a determination of 
        whether an adjustment or recovery would defeat the 
        purpose of this title, the Commissioner of Social 
        Security shall require an individual to provide 
        authorization for the Commissioner to obtain (subject 
        to the cost reimbursement requirements of section 
        1115(a) of the Right to Financial Privacy Act) from any 
        financial institution (within the meaning of section 
        1101(1) of such Act) any financial record (within the 
        meaning of section 1101(2) of such Act) held by the 
        institution with respect to such individual whenever 
        the Commissioner determines that the record is needed 
        in connection with a determination with respect to such 
        adjustment or recovery, under the terms and conditions 
        established under subsection (e)(1)(B).''.
          (2) Conforming amendment.--Section 
        1631(e)(1)(B)(ii)(V) of such Act (42 U.S.C. 
        1383(e)(1)(B)(ii)(V)) is amended by inserting ``, 
        determine that adjustment or recovery on account of an 
        overpayment with respect to the applicant or recipient 
        would not defeat the purpose of this title, or both'' 
        before the period at the end.
  (c) Effective Date.--The amendments made by this section 
shall apply with respect to determinations made on or after the 
date that is 3 months after the date of the enactment of this 
section.

    Subtitle D--Relieving Administrative Burdens and Miscellaneous 
                               Provisions

SEC. 841. INTERAGENCY COORDINATION TO IMPROVE PROGRAM ADMINISTRATION.

  (a) In General.--Title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by inserting after section 1127 
the following:

      ``INTERAGENCY COORDINATION TO IMPROVE PROGRAM ADMINISTRATION

  ``Sec. 1127A.  (a) Coordination Agreement.--Notwithstanding 
any other provision of law, including section 207 of this Act, 
the Commissioner of Social Security (referred to in this 
section as `the Commissioner') and the Director of the Office 
of Personnel Management (referred to in this section as `the 
Director') shall enter into an agreement under which a system 
is established to carry out the following procedure:
          ``(1) The Director shall notify the Commissioner when 
        any individual is determined to be entitled to a 
        monthly disability annuity payment pursuant to 
        subchapter V of chapter 84 of subpart G of part III of 
        title 5, United States Code, and shall certify that 
        such individual has provided the authorization 
        described in subsection (f).
          ``(2) If the Commissioner determines that an 
        individual described in paragraph (1) is also entitled 
        to past-due benefits under section 223, the 
        Commissioner shall notify the Director of such fact.
          ``(3) Not later than 30 days after receiving a 
        notification described in paragraph (2) with respect to 
        an individual, the Director shall provide the 
        Commissioner with the total amount of any disability 
        annuity overpayments made to such individual, as well 
        as any other information (in such form and manner as 
        the Commissioner shall require) that the Commissioner 
        determines is necessary to carry out this section.
          ``(4) If the Director provides the Commissioner with 
        the information described in paragraph (3) in a timely 
        manner, the Commissioner may withhold past-due benefits 
        under section 223 to which such individual is entitled 
        and may pay the amount described in paragraph (3) to 
        the Office of Personnel Management for any disability 
        annuity overpayments made to such individual.
          ``(5) The Director shall credit any amount received 
        under paragraph (4) with respect to an individual 
        toward any disability annuity overpayment owed by such 
        individual.
  ``(b) Limitations.--
  ``(1) Priority of Other Reductions.--Benefits shall only be 
withheld under this section after any other reduction 
applicable under this Act, including sections 206(a)(4), 224, 
and 1127(a).
  ``(2) Timely Notification Required.--The Commissioner may not 
withhold benefits under this section if the Director does not 
provide the notice described in subsection (a)(3) within the 
time period described in such subsection.
  ``(c) Delayed Payment of Past-due Benefits.--If the 
Commissioner is required to make a notification described in 
subsection (a)(2) with respect to an individual, the 
Commissioner shall not make any payment of past-due benefits 
under section 223 to such individual until after the period 
described in subsection (a)(3).
  ``(d) Review.--Notwithstanding section 205 or any other 
provision of law, any determination regarding the withholding 
of past-due benefits under this section shall only be subject 
to adjudication and review by the Director under section 8461 
of title 5, United States Code.
  ``(e) Disability Annuity Overpayment Defined.--For purposes 
of this section, the term `disability annuity overpayment' 
means the amount of the reduction under section 8452(a)(2) of 
title 5, United States Code, applicable to a monthly annuity 
payment made to an individual pursuant to subchapter V of 
chapter 84 of subpart G of part III of such title due to the 
individual's concurrent entitlement to a disability insurance 
benefit under section 223 during such month.
  ``(f) Authorization to Withhold Benefits.--The authorization 
described in this subsection, with respect to an individual, is 
written authorization provided by the individual to the 
Director which authorizes the Commissioner to withhold past-due 
benefits under section 223 to which such individual is entitled 
in order to pay the amount withheld to the Office of Personnel 
Management for any disability overpayments made to such 
individual.
  ``(g) Expenses.--The Director shall pay to the Social 
Security Administration an amount equal to the amount estimated 
by the Commissioner as the total cost incurred by the Social 
Security Administration in carrying out this section for each 
calendar quarter.''.
  (b) Effective Date.--The amendment made by this section shall 
apply to past-due disability insurance benefits payable on or 
after the date that is 1 year after the date of the enactment 
of this section.

SEC. 842. ELIMINATION OF QUINQUENNIAL DETERMINATIONS RELATING TO WAGE 
                    CREDITS FOR MILITARY SERVICE PRIOR TO 1957.

  Section 217(g)(2) of the Social Security Act (42 U.S.C. 
417(g)(2)) is amended--
          (1) by inserting ``through 2010'' after ``each fifth 
        year thereafter''; and
          (2) by inserting after the first sentence the 
        following: ``The Secretary of Health and Human Services 
        shall revise the amount determined under paragraph (1) 
        with respect to the Federal Hospital Insurance Trust 
        Fund under title XVIII in 2015 and each fifth year 
        thereafter through such date, and using such data, as 
        the Secretary determines appropriate on the basis of 
        the amount of benefits and administrative expenses 
        actually paid from such Trust Fund under title XVIII 
        and the relevant actuarial assumptions set forth in the 
        report of the Board of Trustees of such Trust Fund for 
        such year under section 1817(b).''.

SEC. 843. CERTIFICATION OF BENEFITS PAYABLE TO A DIVORCED SPOUSE OF A 
                    RAILROAD WORKER TO THE RAILROAD RETIREMENT BOARD.

  Section 205(i) of the Social Security Act (42 U.S.C. 405(i)) 
is amended by inserting ``or divorced wife or divorced 
husband'' after ``the wife or husband''.

SEC. 844. TECHNICAL AMENDMENTS TO ELIMINATE OBSOLETE PROVISIONS.

  (a) Elimination of Reference in Section 226 to a Repealed 
Provision.--Section 226 of the Social Security Act (42 U.S.C. 
426) is amended--
          (1) by striking subsection (i); and
          (2) by redesignating subsection (j) as subsection 
        (i).
  (b) Elimination of Reference in Section 226A to a Repealed 
Provision.--Section 226A of such Act (42 U.S.C. 426-1) is 
amended by striking the second subsection (c).

SEC. 845. REPORTING REQUIREMENTS TO CONGRESS.

  (a) Report on Fraud and Improper Payment Prevention 
Activities.--Section 704(b) of the Social Security Act (42 
U.S.C. 904(b)) is amended by adding at the end the following:
          ``(3) For each fiscal year beginning with 2016 and 
        ending with 2021, the Commissioner shall include in the 
        annual budget prepared pursuant to subparagraph (A) a 
        report describing the purposes for which amounts made 
        available for purposes described in section 
        251(b)(2)(B) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 for the fiscal year were 
        expended by the Social Security Administration and the 
        purposes for which the Commissioner plans for the 
        Administration to expend such funds in the succeeding 
        fiscal year, including--
                  ``(A) the total such amount expended;
                  ``(B) the amount expended on co-operative 
                disability investigation units;
                  ``(C) the number of cases of fraud prevented 
                by co-operative disability investigation units 
                and the amount expended on such cases (as 
                reported to the Commissioner by the Inspector 
                General of the Social Security Administration);
                  ``(D) the number of felony cases prosecuted 
                under section 208 (as reported to the 
                Commissioner by the Inspector General) and the 
                amount expended by the Social Security 
                Administration in supporting the prosecution of 
                such cases;
                  ``(E) the amount of such felony cases 
                successfully prosecuted (as reported to the 
                Commissioner by the Inspector General) and the 
                amount expended by the Social Security 
                Administration in supporting the prosecution of 
                such cases;
                  ``(F) the amount expended on and the number 
                of completed--
                          ``(i) continuing disability reviews 
                        conducted by mail;
                          ``(ii) redeterminations conducted by 
                        mail;
                          ``(iii) medical continuing disability 
                        reviews conducted pursuant to section 
                        221(i);
                          ``(iv) medical continuing disability 
                        reviews conducted pursuant to 
                        1614(a)(3)(H);
                          ``(v) redeterminations conducted 
                        pursuant to section 1611(c); and
                          ``(vi) work-related continuing 
                        disability reviews to determine whether 
                        earnings derived from services 
                        demonstrate an individual's ability to 
                        engage in substantial gainful activity;
                  ``(G) the number of cases of fraud identified 
                for which benefits were terminated as a result 
                of medical continuing disability reviews (as 
                reported to the Commissioner by the Inspector 
                General), work-related continuing disability 
                reviews, and redeterminations, and the amount 
                of resulting savings for each such type of 
                review or redetermination; and
                  ``(H) the number of work-related continuing 
                disability reviews in which a beneficiary 
                improperly reported earnings derived from 
                services for more than 3 consecutive months, 
                and the amount of resulting savings.''.
  (b) Report on Work-related Continuing Disability Reviews.--
The Commissioner of Social Security shall annually submit to 
the Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate a report on the 
number of work-related continuing disability reviews conducted 
each year to determine whether earnings derived from services 
demonstrate an individual's ability to engage in substantial 
gainful activity. Such report shall include--
          (1) the number of individuals receiving benefits 
        based on disability under title II of such Act for whom 
        reports of earnings were received from any source by 
        the Commissioner in the previous calendar year, 
        reported as a total number and separately by the source 
        of the report;
          (2) the number of individuals for whom such reports 
        resulted in a determination to conduct a work-related 
        continuing disability review, and the basis on which 
        such determinations were made;
          (3) in the case of a beneficiary selected for a work-
        related continuing disability review on the basis of a 
        report of earnings from any source--
                  (A) the average number of days--
                          (i) between the receipt of the report 
                        and the initiation of the review,
                          (ii) between the initiation and the 
                        completion of the review, and
                          (iii) the average amount of 
                        overpayment, if any;
                  (B) the number of such reviews completed 
                during such calendar year, and the number of 
                such reviews that resulted in a suspension or 
                termination of benefits;
                  (C) the number of such reviews initiated in 
                the current year that had not been completed as 
                of the end of such calendar year;
                  (D) the number of such reviews initiated in a 
                prior year that had not been completed as of 
                the end of such calendar year;
          (4) the total savings to the Trust Funds and the 
        Treasury generated from benefits suspended or 
        terminated as a result of such reviews; and
          (5) with respect to individuals for whom a work-
        related continuing disability review was completed 
        during such calendar year--
                  (A) the number who participated in the Ticket 
                to Work program under section 1148 during such 
                calendar year;
                  (B) the number who used any program work 
                incentives during such calendar year; and
                  (C) the number who received vocational 
                rehabilitation services during such calendar 
                year with respect to which the Commissioner of 
                Social Security reimbursed a State agency under 
                section 222(d).
  (c) Report on Overpayment Waivers.--Not later than January 1 
of each calendar year, the Commissioner of Social Security 
shall submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a 
report on--
          (1) the number and total value of overpayments 
        recovered or scheduled to be recovered by the Social 
        Security Administration during the previous fiscal year 
        of benefits under title II and title XVI, respectively, 
        including the terms and conditions of repayment of such 
        overpayments; and
          (2) the number and total value of overpayments waived 
        by the Social Security Administration during the 
        previous fiscal year of benefits under title II and 
        title XVI, respectively.

SEC. 846. EXPEDITED EXAMINATION OF ADMINISTRATIVE LAW JUDGES.

  (a) In General.--Notwithstanding any other provision of law, 
the Office of Personnel Management shall, upon request of the 
Commissioner of Social Security, expeditiously administer a 
sufficient number of competitive examinations, as determined by 
the Commissioner, for the purpose of identifying an adequate 
number of candidates to be appointed as Administrative Law 
Judges under section 3105 of title 5, United States Code. The 
first such examination shall take place not later than April 1, 
2016 and other examinations shall take place at such time or 
times requested by the Commissioner, but not later than 
December 31, 2022. Such examinations shall proceed even if one 
or more individuals who took a prior examination have appealed 
an adverse determination and one or more of such appeals have 
not concluded, provided that--
          (1) the Commissioner of Social Security has made a 
        determination that delaying the examination poses a 
        significant risk that an adequate number of 
        Administrative Law Judges will not be available to meet 
        the need of the Social Security Administration to 
        reduce or prevent a backlog of cases awaiting a 
        hearing;
          (2) an individual whose appeal is pending is provided 
        an option to continue their appeal or elects to take 
        the new examination, in which case the appeal is 
        considered vacated; and
          (3) an individual who decides to continue his or her 
        appeal and who ultimately prevails in the appeal shall 
        receive expeditious consideration for hire by the 
        Office Personnel Management and the Commissioner of 
        Social Security.
  (b) Payment of Costs.--Notwithstanding any other provision of 
law, the Commissioner of Social Security shall pay the full 
cost associated with each examination conducted pursuant to 
subsection (a).

           TITLE IX--TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT

SEC. 901. TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT.

  (a) In General.--Section 3101(b) of title 31, United States 
Code, shall not apply for the period beginning on the date of 
the enactment of this Act and ending on March 15, 2017.
  (b) Special Rule Relating to Obligations Issued During 
Extension Period.--Effective March 16, 2017, the limitation in 
effect under section 3101(b) of title 31, United States Code, 
shall be increased to the extent that--
          (1) the face amount of obligations issued under 
        chapter 31 of such title and the face amount of 
        obligations whose principal and interest are guaranteed 
        by the United States Government (except guaranteed 
        obligations held by the Secretary of the Treasury) 
        outstanding on March 16, 2017, exceeds
          (2) the face amount of such obligations outstanding 
        on the date of the enactment of this Act.

SEC. 902. RESTORING CONGRESSIONAL AUTHORITY OVER THE NATIONAL DEBT.

  (a) Extension Limited to Necessary Obligations.--An 
obligation shall not be taken into account under section 
901(b)(1) unless the issuance of such obligation was necessary 
to fund a commitment incurred pursuant to law by the Federal 
Government that required payment before March 16, 2017.
  (b) Prohibition on Creation of Cash Reserve During Extension 
Period.--The Secretary of the Treasury shall not issue 
obligations during the period specified in section 901(a) for 
the purpose of increasing the cash balance above normal 
operating balances in anticipation of the expiration of such 
period.

                       TITLE X--SPECTRUM PIPELINE

SEC. 1001. SHORT TITLE.

  This title may be cited as the ``Spectrum Pipeline Act of 
2015''.

SEC. 1002. DEFINITIONS.

  In this title:
          (1) Assistant secretary.--The term ``Assistant 
        Secretary'' means the Assistant Secretary of Commerce 
        for Communications and Information.
          (2) Commission.--The term ``Commission'' means the 
        Federal Communications Commission.
          (3) Federal entity.--The term ``Federal entity'' has 
        the meaning given such term in section 113(l) of the 
        National Telecommunications and Information 
        Administration Organization Act (47 U.S.C. 923(l)).
          (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Commerce.

SEC. 1003. RULE OF CONSTRUCTION.

  Each range of frequencies described in this title shall be 
construed to be inclusive of the upper and lower frequencies in 
the range.

SEC. 1004. IDENTIFICATION, REALLOCATION, AND AUCTION OF FEDERAL 
                    SPECTRUM.

  (a) Identification of Spectrum.--Not later than January 1, 
2022, the Secretary shall submit to the President and to the 
Commission a report identifying 30 megahertz of electromagnetic 
spectrum (in bands of not less than 10 megahertz of contiguous 
frequencies) below the frequency of 3 gigahertz (except for the 
spectrum between the frequencies of 1675 megahertz and 1695 
megahertz) for reallocation from Federal use to non-Federal use 
or shared Federal and non-Federal use, or a combination 
thereof.
  (b) Clearing of Spectrum.--The President shall--
          (1) not later than January 1, 2022, begin the process 
        of withdrawing or modifying the assignment to a Federal 
        Government station of the electromagnetic spectrum 
        identified under subsection (a); and
          (2) not later than 30 days after completing the 
        withdrawal or modification, notify the Commission that 
        the withdrawal or modification is complete.
  (c) Reallocation and Auction.--
          (1) In general.--The Commission shall--
                  (A) reallocate the electromagnetic spectrum 
                identified under subsection (a) for non-Federal 
                use or shared Federal and non-Federal use, or a 
                combination thereof; and
                  (B) notwithstanding paragraph (15)(A) of 
                section 309(j) of the Communications Act of 
                1934 (47 U.S.C. 309(j)), not later than July 1, 
                2024, begin a system of competitive bidding 
                under such section to grant new initial 
                licenses for the use of such spectrum, subject 
                to flexible-use service rules.
          (2) Proceeds to cover 110 percent of federal 
        relocation or sharing costs.--Nothing in paragraph (1) 
        shall be construed to relieve the Commission from the 
        requirements of section 309(j)(16)(B) of the 
        Communications Act of 1934 (47 U.S.C. 309(j)(16)(B)).

SEC. 1005. ADDITIONAL USES OF SPECTRUM RELOCATION FUND.

  (a) In General.--Section 118 of the National 
Telecommunications and Information Administration Organization 
Act (47 U.S.C. 928) is amended--
          (1) by redesignating subsection (g) as subsection 
        (i); and
          (2) by inserting after subsection (f) the following:
  ``(g) Additional Payments for Research and Development and 
Planning Activities.--
          ``(1) Amounts available.--Notwithstanding subsections 
        (c) through (e)--
                  ``(A) there are appropriated from the Fund on 
                the date of the enactment of the Spectrum 
                Pipeline Act of 2015, and available to the 
                Director of OMB for use in accordance with 
                paragraph (2), not more than $500,000,000 from 
                amounts in the Fund on such date of enactment; 
                and
                  ``(B) there are appropriated from the Fund 
                after such date of enactment, and available to 
                the Director of OMB for use in accordance with 
                such paragraph, not more than 10 percent of the 
                amounts deposited in the Fund after such date 
                of enactment.
          ``(2) Use of amounts.--
                  ``(A) In general.--The Director of OMB may 
                use amounts made available under paragraph (1) 
                to make payments requested by Federal entities 
                for research and development, engineering 
                studies, economic analyses, or other planning 
                activities intended to improve the efficiency 
                and effectiveness of the spectrum use of 
                Federal entities in order to make available 
                frequencies described in subparagraph (C) for 
                reallocation for non-Federal use or shared 
                Federal and non-Federal use, or a combination 
                thereof, and for auction in accordance with 
                such reallocation.
                  ``(B) Systems that improve efficiency and 
                effectiveness of federal spectrum use.--For 
                purposes of a payment under subparagraph (A) 
                for activities with respect to systems that 
                improve the efficiency and effectiveness of the 
                spectrum use of Federal entities, such systems 
                include the following:
                          ``(i) Systems that have increased 
                        functionality or that increase the 
                        ability of a Federal entity to 
                        accommodate spectrum sharing with non-
                        Federal entities.
                          ``(ii) Systems that consolidate 
                        functions or services that have been 
                        provided using separate systems.
                          ``(iii) Non-spectrum technology or 
                        systems.
                  ``(C) Frequencies described.--The frequencies 
                described in this subparagraph are, with 
                respect to a payment under subparagraph (A), 
                frequencies that--
                          ``(i) are assigned to a Federal 
                        entity; and
                          ``(ii) at the time of the activities 
                        conducted with such payment, are not 
                        identified for auction.
                  ``(D) Conditions.--The Director of OMB may 
                not make a payment to a Federal entity under 
                subparagraph (A)--
                          ``(i) unless--
                                  ``(I) the Federal entity has 
                                submitted to the Technical 
                                Panel established under section 
                                113(h)(3) a plan describing the 
                                activities that the Federal 
                                entity will conduct with such 
                                payment;
                                  ``(II) the Technical Panel 
                                has approved such plan under 
                                subparagraph (E); and
                                  ``(III) the Director of OMB 
                                has submitted the plan approved 
                                under subparagraph (E) to the 
                                congressional committees 
                                described in subsection 
                                (d)(2)(C); and
                          ``(ii) until 60 days have elapsed 
                        after submission of the plan under 
                        clause (i)(III).
                  ``(E) Review by technical panel.--
                          ``(i) In general.--Not later than 120 
                        days after a Federal entity submits a 
                        plan under subparagraph (D)(i)(I) to 
                        the Technical Panel established under 
                        section 113(h)(3), the Technical Panel 
                        shall approve or disapprove such plan.
                          ``(ii) Criteria for review.--In 
                        considering whether to approve or 
                        disapprove a plan under this 
                        subparagraph, the Technical Panel shall 
                        consider whether--
                                  ``(I) the activities that the 
                                Federal entity will conduct 
                                with the payment will--
                                          ``(aa) increase the 
                                        probability of 
                                        relocation from or 
                                        sharing of Federal 
                                        spectrum;
                                          ``(bb) facilitate an 
                                        auction intended to 
                                        occur not later than 8 
                                        years after the 
                                        payment; and
                                          ``(cc) increase the 
                                        net expected auction 
                                        proceeds in an amount 
                                        not less than the time 
                                        value of the amount of 
                                        the payment; and
                                  ``(II) the transfer will 
                                leave sufficient amounts in the 
                                Fund for the other purposes of 
                                the Fund.
  ``(h) Prioritization of Payments.--In determining whether to 
make payments under subsections (f) and (g), the Director of 
OMB shall, to the extent practicable, prioritize payments under 
subsection (g).''.
  (b) Administrative Support for Technical Panel.--Section 
113(h)(3)(C) of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 923(h)(3)(C)) is 
amended by striking ``this subsection and subsection (i)'' and 
inserting ``this subsection, subsection (i), and section 
118(g)(2)(E)''.
  (c) Eligible Federal Entities.--Section 113 of the National 
Telecommunications and Information Administration Organization 
Act (47 U.S.C. 923) is amended--
          (1) in subsection (g)--
                  (A) in paragraph (1)--
                          (i) by striking ``authorized to use a 
                        band of eligible frequencies described 
                        in paragraph (2) and'';
                          (ii) by inserting ``eligible'' after 
                        ``auction of'';
                          (iii) by inserting ``eligible'' after 
                        ``reallocation of''; and
                  (B) in paragraph (3)(A), by striking 
                ``previously assigned to such entity or the 
                sharing of spectrum frequencies assigned to 
                such entity'' and inserting ``or the sharing of 
                spectrum frequencies''; and
          (2) in subsection (h)(1), by striking ``authorized to 
        use any such frequency''.

SEC. 1006. PLANS FOR AUCTION OF CERTAIN SPECTRUM.

  (a) Reports to Congress.--In accordance with each paragraph 
of subsection (c), the Commission, in coordination with the 
Assistant Secretary, shall submit to the Committee on Energy 
and Commerce of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate a report 
containing a proposed plan for the assignment of new licenses 
for non-Federal use of the spectrum identified under such 
paragraph, including--
          (1) an assessment of the operations of Federal 
        entities that operate Federal Government stations 
        authorized to use such spectrum;
          (2) an estimated timeline for the competitive bidding 
        process; and
          (3) a proposed plan for balance between unlicensed 
        and licensed use.
  (b) Information for Assessment of Federal Entity 
Operations.--The Assistant Secretary, in coordination with the 
affected Federal entities, shall provide to the Commission the 
necessary information to carry out subsection (a)(1).
  (c) Report Deadlines; Identification of Spectrum.--The 
Commission shall submit reports under subsection (a) as 
follows:
          (1) Not later than January 1, 2022, for at least 50 
        megahertz of spectrum (in bands of not less than 10 
        megahertz of contiguous frequencies) below 6 gigahertz, 
        to be identified by the Commission, in coordination 
        with the Assistant Secretary, from spectrum other than 
        the spectrum identified under section 1004(a).
          (2) Not later than January 1, 2024, for at least 50 
        megahertz of spectrum (in bands of not less than 10 
        megahertz of contiguous frequencies) below 6 gigahertz, 
        to be identified by the Commission, in coordination 
        with the Assistant Secretary, from spectrum other than 
        the spectrum identified under paragraph (1) or section 
        1004(a).

SEC. 1007. FCC AUCTION AUTHORITY.

  Section 309(j)(11) of the Communications Act of 1934 (47 
U.S.C. 309(j)(11)) is amended by inserting before the period at 
the end the following: ``, except that, with respect to the 
electromagnetic spectrum identified under section 1004(a) of 
the Spectrum Pipeline Act of 2015, such authority shall expire 
on September 30, 2025''.

SEC. 1008. REPORTS TO CONGRESS.

  Not later than 3 years after the date of the enactment of 
this Act, the Commission shall submit to Congress--
          (1) a report containing an analysis of the results of 
        the rules changes relating to the frequencies between 
        3550 megahertz and 3650 megahertz; and
          (2) a report containing an analysis of proposals to 
        promote and identify additional spectrum bands that can 
        be shared between incumbent uses and new licensed, and 
        unlicensed services under such rules and identification 
        of at least 1 gigahertz between 6 gigahertz and 57 GHz 
        for such use.

         TITLE XI--REVENUE PROVISIONS RELATED TO TAX COMPLIANCE

SEC. 1101. PARTNERSHIP AUDITS AND ADJUSTMENTS.

  (a) Repeal of TEFRA Partnership Audit Rules.--Chapter 63 of 
the Internal Revenue Code of 1986 is amended by striking 
subchapter C (and by striking the item relating to such 
subchapter in the table of subchapters for such chapter).
  (b) Repeal of Electing Large Partnership Rules.--
          (1) In general.--Subchapter K of chapter 1 of such 
        Code is amended by striking part IV (and by striking 
        the item relating to such part in the table of parts 
        for such subchapter).
          (2) Assessment rules relating to electing large 
        partnerships.--Chapter 63 of such Code is amended by 
        striking subchapter D (and by striking the item 
        relating to such subchapter in the table of subchapters 
        for such chapter).
  (c) Partnership Audit Reform.--
          (1) In general.--Chapter 63 of such Code, as amended 
        by the preceding provisions of this section, is amended 
        by inserting after subchapter B the following new 
        subchapter:

               ``Subchapter C--Treatment of Partnerships


                          ``Part I--In General

                   ``Part II--Partnership Adjustments

                          ``Part III--Procedure

                ``Part IV--Definitions and Special Rules

                          ``PART I--IN GENERAL

``Sec. 6221. Determination at partnership level.
``Sec. 6222. Partner's return must be consistent with partnership 
          return.
``Sec. 6223. Designation of partnership representative.

``SEC. 6221. DETERMINATION AT PARTNERSHIP LEVEL.

  ``(a) In General.--Any adjustment to items of income, gain, 
loss, deduction, or credit of a partnership for a partnership 
taxable year (and any partner's distributive share thereof) 
shall be determined, any tax attributable thereto shall be 
assessed and collected, and the applicability of any penalty, 
addition to tax, or additional amount which relates to an 
adjustment to any such item or share shall be determined, at 
the partnership level pursuant to this subchapter.
  ``(b) Election Out for Certain Partnerships With 100 or Fewer 
Partners, etc.--
          ``(1) In general.--This subchapter shall not apply 
        with respect to any partnership for any taxable year 
        if--
                  ``(A) the partnership elects the application 
                of this subsection for such taxable year,
                  ``(B) for such taxable year the partnership 
                is required to furnish 100 or fewer statements 
                under section 6031(b) with respect to its 
                partners,
                  ``(C) each of the partners of such 
                partnership is an individual, a C corporation, 
                any foreign entity that would be treated as a C 
                corporation were it domestic, an S corporation, 
                or an estate of a deceased partner,
                  ``(D) the election--
                          ``(i) is made with a timely filed 
                        return for such taxable year, and
                          ``(ii) includes (in the manner 
                        prescribed by the Secretary) a 
                        disclosure of the name and taxpayer 
                        identification number of each partner 
                        of such partnership, and
                  ``(E) the partnership notifies each such 
                partner of such election in the manner 
                prescribed by the Secretary.
          ``(2) Special rules relating to certain partners.--
                  ``(A) S corporation partners.--In the case of 
                a partner that is an S corporation--
                          ``(i) the partnership shall only be 
                        treated as meeting the requirements of 
                        paragraph (1)(C) with respect to such 
                        partner if such partnership includes 
                        (in the manner prescribed by the 
                        Secretary) a disclosure of the name and 
                        taxpayer identification number of each 
                        person with respect to whom such S 
                        corporation is required to furnish a 
                        statement under section 6037(b) for the 
                        taxable year of the S corporation 
                        ending with or within the partnership 
                        taxable year for which the application 
                        of this subsection is elected, and
                          ``(ii) the statements such S 
                        corporation is required to so furnish 
                        shall be treated as statements 
                        furnished by the partnership for 
                        purposes of paragraph (1)(B).
                  ``(B) Foreign partners.--For purposes of 
                paragraph (1)(D)(ii), the Secretary may provide 
                for alternative identification of any foreign 
                partners.
                  ``(C) Other partners.--The Secretary may by 
                regulation or other guidance prescribe rules 
                similar to the rules of subparagraph (A) with 
                respect to any partners not described in such 
                subparagraph or paragraph (1)(C).

``SEC. 6222. PARTNER'S RETURN MUST BE CONSISTENT WITH PARTNERSHIP 
                    RETURN.

  ``(a) In General.--A partner shall, on the partner's return, 
treat each item of income, gain, loss, deduction, or credit 
attributable to a partnership in a manner which is consistent 
with the treatment of such income, gain, loss, deduction, or 
credit on the partnership return.
  ``(b) Underpayment Due to Inconsistent Treatment Assessed as 
Math Error.--Any underpayment of tax by a partner by reason of 
failing to comply with the requirements of subsection (a) shall 
be assessed and collected in the same manner as if such 
underpayment were on account of a mathematical or clerical 
error appearing on the partner's return. Paragraph (2) of 
section 6213(b) shall not apply to any assessment of an 
underpayment referred to in the preceding sentence.
  ``(c) Exception for Notification of Inconsistent Treatment.--
          ``(1) In general.--In the case of any item referred 
        to in subsection (a), if--
                  ``(A)(i) the partnership has filed a return 
                but the partner's treatment on the partner's 
                return is (or may be) inconsistent with the 
                treatment of the item on the partnership 
                return, or
                  ``(ii) the partnership has not filed a 
                return, and
                  ``(B) the partner files with the Secretary a 
                statement identifying the inconsistency,
        subsections (a) and (b) shall not apply to such item.
          ``(2) Partner receiving incorrect information.--A 
        partner shall be treated as having complied with 
        subparagraph (B) of paragraph (1) with respect to an 
        item if the partner--
                  ``(A) demonstrates to the satisfaction of the 
                Secretary that the treatment of the item on the 
                partner's return is consistent with the 
                treatment of the item on the statement 
                furnished to the partner by the partnership, 
                and
                  ``(B) elects to have this paragraph apply 
                with respect to that item.
  ``(d) Final Decision on Certain Positions Not Binding on 
Partnership.--Any final decision with respect to an 
inconsistent position identified under subsection (c) in a 
proceeding to which the partnership is not a party shall not be 
binding on the partnership.
  ``(e) Addition to Tax for Failure to Comply With Section.--
For addition to tax in the case of a partner's disregard of the 
requirements of this section, see part II of subchapter A of 
chapter 68.

``SEC. 6223. PARTNERS BOUND BY ACTIONS OF PARTNERSHIP.

  ``(a) Designation of Partnership Representative.--Each 
partnership shall designate (in the manner prescribed by the 
Secretary) a partner (or other person) with a substantial 
presence in the United States as the partnership representative 
who shall have the sole authority to act on behalf of the 
partnership under this subchapter. In any case in which such a 
designation is not in effect, the Secretary may select any 
person as the partnership representative.
  ``(b) Binding Effect.--A partnership and all partners of such 
partnership shall be bound--
          ``(1) by actions taken under this subchapter by the 
        partnership, and
          ``(2) by any final decision in a proceeding brought 
        under this subchapter with respect to the partnership.

                   ``PART II--PARTNERSHIP ADJUSTMENTS

``Sec. 6225. Partnership adjustment by Secretary.
``Sec. 6226. Alternative to payment of imputed underpayment by 
          partnership.
``Sec. 6227. Administrative adjustment request by partnership.

``SEC. 6225. PARTNERSHIP ADJUSTMENT BY SECRETARY.

  ``(a) In General.--In the case of any adjustment by the 
Secretary in the amount of any item of income, gain, loss, 
deduction, or credit of a partnership, or any partner's 
distributive share thereof--
          ``(1) the partnership shall pay any imputed 
        underpayment with respect to such adjustment in the 
        adjustment year as provided in section 6232, and
          ``(2) any adjustment that does not result in an 
        imputed underpayment shall be taken into account by the 
        partnership in the adjustment year--
                  ``(A) except as provided in subparagraph (B), 
                as a reduction in non-separately stated income 
                or an increase in non-separately stated loss 
                (whichever is appropriate) under section 
                702(a)(8), or
                  ``(B) in the case of an item of credit, as a 
                separately stated item.
  ``(b) Determination of Imputed Underpayments.--For purposes 
of this subchapter--
          ``(1) In general.--Except as provided in subsection 
        (c), any imputed underpayment with respect to any 
        partnership adjustment for any reviewed year shall be 
        determined--
                  ``(A) by netting all adjustments of items of 
                income, gain, loss, or deduction and 
                multiplying such net amount by the highest rate 
                of tax in effect for the reviewed year under 
                section 1 or 11,
                  ``(B) by treating any net increase or 
                decrease in loss under subparagraph (A) as a 
                decrease or increase, respectively, in income, 
                and
                  ``(C) by taking into account any adjustments 
                to items of credit as an increase or decrease, 
                as the case may be, in the amount determined 
                under subparagraph (A).
          ``(2) Adjustments to distributive shares of partners 
        not netted.--In the case of any adjustment which 
        reallocates the distributive share of any item from one 
        partner to another, such adjustment shall be taken into 
        account under paragraph (1) by disregarding--
                  ``(A) any decrease in any item of income or 
                gain, and
                  ``(B) any increase in any item of deduction, 
                loss, or credit.
  ``(c) Modification of Imputed Underpayments.--
          ``(1) In general.--The Secretary shall establish 
        procedures under which the imputed underpayment amount 
        may be modified consistent with the requirements of 
        this subsection.
          ``(2) Amended returns of partners.--
                  ``(A) In general.--Such procedures shall 
                provide that if--
                          ``(i) one or more partners file 
                        returns (notwithstanding section 6511) 
                        for the taxable year of the partners 
                        which includes the end of the reviewed 
                        year of the partnership,
                          ``(ii) such returns take into account 
                        all adjustments under subsection (a) 
                        properly allocable to such partners 
                        (and for any other taxable year with 
                        respect to which any tax attribute is 
                        affected by reason of such 
                        adjustments), and
                          ``(iii) payment of any tax due is 
                        included with such return,
                then the imputed underpayment amount shall be 
                determined without regard to the portion of the 
                adjustments so taken into account.
                  ``(B) Reallocation of distributive share.--In 
                the case of any adjustment which reallocates 
                the distributive share of any item from one 
                partner to another, paragraph (2) shall apply 
                only if returns are filed by all partners 
                affected by such adjustment.
          ``(3) Tax-exempt partners.--Such procedures shall 
        provide for determining the imputed underpayment 
        without regard to the portion thereof that the 
        partnership demonstrates is allocable to a partner that 
        would not owe tax by reason of its status as a tax-
        exempt entity (as defined in section 168(h)(2)).
          ``(4) Modification of applicable highest tax rates.--
                  ``(A) In general.--Such procedures shall 
                provide for taking into account a rate of tax 
                lower than the rate of tax described in 
                subsection (b)(1)(A) with respect to any 
                portion of the imputed underpayment that the 
                partnership demonstrates is allocable to a 
                partner which--
                          ``(i) in the case of ordinary income, 
                        is a C corporation, or
                          ``(ii) in the case of a capital gain 
                        or qualified dividend, is an 
                        individual.
                In no event shall the lower rate determined 
                under the preceding sentence be less than the 
                highest rate in effect with respect to the 
                income and taxpayer described in clause (i) or 
                clause (ii), as the case may be. For purposes 
                of clause (ii), an S corporation shall be 
                treated as an individual.
                  ``(B) Portion of imputed underpayment to 
                which lower rate applies.--
                          ``(i) In general.--Except as provided 
                        in clause (ii), the portion of the 
                        imputed underpayment to which the lower 
                        rate applies with respect to a partner 
                        under subparagraph (A) shall be 
                        determined by reference to the 
                        partners' distributive share of items 
                        to which the imputed underpayment 
                        relates.
                          ``(ii) Rule in case of varied 
                        treatment of items among partners.--If 
                        the imputed underpayment is 
                        attributable to the adjustment of more 
                        than 1 item, and any partner's 
                        distributive share of such items is not 
                        the same with respect to all such 
                        items, then the portion of the imputed 
                        underpayment to which the lower rate 
                        applies with respect to a partner under 
                        subparagraph (A) shall be determined by 
                        reference to the amount which would 
                        have been the partner's distributive 
                        share of net gain or loss if the 
                        partnership had sold all of its assets 
                        at their fair market value as of the 
                        close of the reviewed year of the 
                        partnership.
          ``(5) Other procedures for modification of imputed 
        underpayment.--The Secretary may by regulations or 
        guidance provide for additional procedures to modify 
        imputed underpayment amounts on the basis of such other 
        factors as the Secretary determines are necessary or 
        appropriate to carry out the purposes of this 
        subsection.
          ``(6) Year and day for submission to secretary.--
        Anything required to be submitted pursuant to paragraph 
        (1) shall be submitted to the Secretary not later than 
        the close of the 270-day period beginning on the date 
        on which the notice of a proposed partnership 
        adjustment is mailed under section 6231 unless such 
        period is extended with the consent of the Secretary.
          ``(7) Decision of secretary.--Any modification of the 
        imputed underpayment amount under this subsection shall 
        be made only upon approval of such modification by the 
        Secretary.
  ``(d) Definitions.--For purposes of this subchapter--
          ``(1) Reviewed year.--The term `reviewed year' means 
        the partnership taxable year to which the item being 
        adjusted relates.
          ``(2) Adjustment year.--The term `adjustment year' 
        means the partnership taxable year in which--
                  ``(A) in the case of an adjustment pursuant 
                to the decision of a court in a proceeding 
                brought under section 6234, such decision 
                becomes final,
                  ``(B) in the case of an administrative 
                adjustment request under section 6227, such 
                administrative adjustment request is made, or
                  ``(C) in any other case, notice of the final 
                partnership adjustment is mailed under section 
                6231.

``SEC. 6226. ALTERNATIVE TO PAYMENT OF IMPUTED UNDERPAYMENT BY 
                    PARTNERSHIP.

  ``(a) In General.--If the partnership--
          ``(1) not later than 45 days after the date of the 
        notice of final partnership adjustment, elects the 
        application of this section with respect to an imputed 
        underpayment, and
          ``(2) at such time and in such manner as the 
        Secretary may provide, furnishes to each partner of the 
        partnership for the reviewed year and to the Secretary 
        a statement of the partner's share of any adjustment to 
        income, gain, loss, deduction, or credit (as determined 
        in the notice of final partnership adjustment),
section 6225 shall not apply with respect to such underpayment 
and each such partner shall take such adjustment into account 
as provided in subsection (b). The election under paragraph (1) 
shall be made in such manner as the Secretary may provide and, 
once made, shall be revocable only with the consent of the 
Secretary.
  ``(b) Adjustments Taken Into Account by Partner.--
          ``(1) Tax imposed in year of statement.--Each 
        partner's tax imposed by chapter 1 for the taxable year 
        which includes the date the statement was furnished 
        under subsection (a) shall be increased by the 
        aggregate of the adjustment amounts determined under 
        paragraph (2) for the taxable years referred to 
        therein.
          ``(2) Adjustment amounts.--The adjustment amounts 
        determined under this paragraph are--
                  ``(A) in the case of the taxable year of the 
                partner which includes the end of the reviewed 
                year, the amount by which the tax imposed under 
                chapter 1 would increase if the partner's share 
                of the adjustments described in subsection (a) 
                were taken into account for such taxable year, 
                plus
                  ``(B) in the case of any taxable year after 
                the taxable year referred to in subparagraph 
                (A) and before the taxable year referred to in 
                paragraph (1), the amount by which the tax 
                imposed under chapter 1 would increase by 
                reason of the adjustment to tax attributes 
                under paragraph (3).
          ``(3) Adjustment of tax attributes.--Any tax 
        attribute which would have been affected if the 
        adjustments described in subsection (a) were taken into 
        account for the taxable year referred to in paragraph 
        (2)(A) shall--
                  ``(A) in the case of any taxable year 
                referred to in paragraph (2)(B), be 
                appropriately adjusted for purposes of applying 
                such paragraph, and
                  ``(B) in the case of any subsequent taxable 
                year, be appropriately adjusted.
  ``(c) Penalties and Interest.--
          ``(1) Penalties.--Notwithstanding subsections (a) and 
        (b), any penalties, additions to tax, or additional 
        amount shall be determined as provided under section 
        6221 and the partners of the partnership for the 
        reviewed year shall be liable for any such penalty, 
        addition to tax, or additional amount.
          ``(2) Interest.--In the case of an imputed 
        underpayment with respect to which the application of 
        this section is elected, interest shall be determined--
                  ``(A) at the partner level,
                  ``(B) from the due date of the return for the 
                taxable year to which the increase is 
                attributable (determined by taking into account 
                any increases attributable to a change in tax 
                attributes for a taxable year under subsection 
                (b)(2)), and
                  ``(C) at the underpayment rate under section 
                6621(a)(2), determined by substituting `5 
                percentage points' for `3 percentage points' in 
                subparagraph (B) thereof.

``SEC. 6227. ADMINISTRATIVE ADJUSTMENT REQUEST BY PARTNERSHIP.

  ``(a) In General.--A partnership may file a request for an 
administrative adjustment in the amount of one or more items of 
income, gain, loss, deduction, or credit of the partnership for 
any partnership taxable year.
  ``(b) Adjustment.--Any such adjustment under subsection (a) 
shall be determined and taken into account for the partnership 
taxable year in which the administrative adjustment request is 
made--
          ``(1) by the partnership under rules similar to the 
        rules of section 6225 (other than paragraphs (2), (6) 
        and (7) of subsection (c) thereof) for the partnership 
        taxable year in which the administrative adjustment 
        request is made, or
          ``(2) by the partnership and partners under rules 
        similar to the rules of section 6226 (determined 
        without regard to the substitution described in 
        subsection (c)(2)(C) thereof).
In the case of an adjustment that would not result in an 
imputed underpayment, paragraph (1) shall not apply and 
paragraph (2) shall apply with appropriate adjustments.
  ``(c) Period of Limitations.--A partnership may not file such 
a request more than 3 years after the later of--
          ``(1) the date on which the partnership return for 
        such year is filed, or
          ``(2) the last day for filing the partnership return 
        for such year (determined without regard to 
        extensions).
In no event may a partnership file such a request after a 
notice of an administrative proceeding with respect to the 
taxable year is mailed under section 6231.

                          ``PART 1--PROCEDURE

``Sec. 6231. Notice of proceedings and adjustment.
``Sec. 6232. Assessment, collection, and payment.
``Sec. 6233. Interest and penalties.
``Sec. 6234. Judicial review of partnership adjustment.
``Sec. 6235. Period of limitations on making adjustments.

``SEC. 6231. NOTICE OF PROCEEDINGS AND ADJUSTMENT.

  ``(a) In General.--The Secretary shall mail to the 
partnership and the partnership representative--
          ``(1) notice of any administrative proceeding 
        initiated at the partnership level with respect to an 
        adjustment of any item of income, gain, loss, 
        deduction, or credit of a partnership for a partnership 
        taxable year, or any partner's distributive share 
        thereof,
          ``(2) notice of any proposed partnership adjustment 
        resulting from such proceeding, and
          ``(3) notice of any final partnership adjustment 
        resulting from such proceeding.
Any notice of a final partnership adjustment shall not be 
mailed earlier than 270 days after the date on which the notice 
of the proposed partnership adjustment is mailed. Such notices 
shall be sufficient if mailed to the last known address of the 
partnership representative or the partnership (even if the 
partnership has terminated its existence). The first sentence 
shall apply to any proceeding with respect to an administrative 
adjustment request filed by a partnership under section 6227.
  ``(b) Further Notices Restricted.--If the Secretary mails a 
notice of a final partnership adjustment to any partnership for 
any partnership taxable year and the partnership files a 
petition under section 6234 with respect to such notice, in the 
absence of a showing of fraud, malfeasance, or 
misrepresentation of a material fact, the Secretary shall not 
mail another such notice to such partnership with respect to 
such taxable year.
  ``(c) Authority to Rescind Notice With Partnership Consent.--
The Secretary may, with the consent of the partnership, rescind 
any notice of a partnership adjustment mailed to such 
partnership. Any notice so rescinded shall not be treated as a 
notice of a partnership adjustment for purposes of this 
subchapter, and the taxpayer shall have no right to bring a 
proceeding under section 6234 with respect to such notice.

``SEC. 6232. ASSESSMENT, COLLECTION, AND PAYMENT.

  ``(a) In General.--Any imputed underpayment shall be assessed 
and collected in the same manner as if it were a tax imposed 
for the adjustment year by subtitle A, except that in the case 
of an administrative adjustment request to which section 
6227(b)(1) applies, the underpayment shall be paid when the 
request is filed.
  ``(b) Limitation on Assessment.--Except as otherwise provided 
in this chapter, no assessment of a deficiency may be made (and 
no levy or proceeding in any court for the collection of any 
amount resulting from such adjustment may be made, begun or 
prosecuted) before--
          ``(1) the close of the 90th day after the day on 
        which a notice of a final partnership adjustment was 
        mailed, and
          ``(2) if a petition is filed under section 6234 with 
        respect to such notice, the decision of the court has 
        become final.
  ``(c) Premature Action May Be Enjoined.--Notwithstanding 
section 7421(a), any action which violates subsection (b) may 
be enjoined in the proper court, including the Tax Court. The 
Tax Court shall have no jurisdiction to enjoin any action under 
this subsection unless a timely petition has been filed under 
section 6234 and then only in respect of the adjustments that 
are the subject of such petition.
  ``(d) Exceptions to Restrictions on Adjustments.--
          ``(1) Adjustments arising out of math or clerical 
        errors.--
                  ``(A) In general.-- If the partnership is 
                notified that, on account of a mathematical or 
                clerical error appearing on the partnership 
                return, an adjustment to a item is required, 
                rules similar to the rules of paragraphs (1) 
                and (2) of section 6213(b) shall apply to such 
                adjustment.
                  ``(B) Special rule.--If a partnership is a 
                partner in another partnership, any adjustment 
                on account of such partnership's failure to 
                comply with the requirements of section 6222(a) 
                with respect to its interest in such other 
                partnership shall be treated as an adjustment 
                referred to in subparagraph (A), except that 
                paragraph (2) of section 6213(b) shall not 
                apply to such adjustment.
          ``(2) Partnership may waive restrictions.--The 
        partnership may at any time (whether or not any notice 
        of partnership adjustment has been issued), by a signed 
        notice in writing filed with the Secretary, waive the 
        restrictions provided in subsection (b) on the making 
        of any partnership adjustment.
  ``(e) Limit Where No Proceeding Begun.--If no proceeding 
under section 6234 is begun with respect to any notice of a 
final partnership adjustment during the 90-day period described 
in subsection (b) thereof, the amount for which the partnership 
is liable under section 6225 shall not exceed the amount 
determined in accordance with such notice.

``SEC. 6233. INTEREST AND PENALTIES.

  ``(a) Interest and Penalties Determined From Reviewed Year.--
          ``(1) In general.--Except to the extent provided in 
        section 6226(c), in the case of a partnership 
        adjustment for a reviewed year--
                  ``(A) interest shall be computed under 
                paragraph (2), and
                  ``(B) the partnership shall be liable for any 
                penalty, addition to tax, or additional amount 
                as provided in paragraph (3).
          ``(2) Determination of amount of interest.--The 
        interest computed under this paragraph with respect to 
        any partnership adjustment is the interest which would 
        be determined under chapter 67 for the period beginning 
        on the day after the return due date for the reviewed 
        year and ending on the return due date for the 
        adjustment year (or, if earlier, the date payment of 
        the imputed underpayment is made). Proper adjustments 
        in the amount determined under the preceding sentence 
        shall be made for adjustments required for partnership 
        taxable years after the reviewed year and before the 
        adjustment year by reason of such partnership 
        adjustment.
          ``(3) Penalties.--Any penalty, addition to tax, or 
        additional amount shall be determined at the 
        partnership level as if such partnership had been an 
        individual subject to tax under chapter 1 for the 
        reviewed year and the imputed underpayment were an 
        actual underpayment (or understatement) for such year.
  ``(b) Interest and Penalties With Respect to Adjustment Year 
Return.--
          ``(1) In general.--In the case of any failure to pay 
        an imputed underpayment on the date prescribed 
        therefor, the partnership shall be liable--
                  ``(A) for interest as determined under 
                paragraph (2), and
                  ``(B) for any penalty, addition to tax, or 
                additional amount as determined under paragraph 
                (3).
          ``(2) Interest.--Interest determined under this 
        paragraph is the interest that would be determined by 
        treating the imputed underpayment as an underpayment of 
        tax imposed in the adjustment year.
          ``(3) Penalties.--Penalties, additions to tax, or 
        additional amounts determined under this paragraph are 
        the penalties, additions to tax, or additional amounts 
        that would be determined--
                  ``(A) by applying section 6651(a)(2) to such 
                failure to pay, and
                  ``(B) by treating the imputed underpayment as 
                an underpayment of tax for purposes of part II 
                of subchapter A of chapter 68.

``SEC. 6234. JUDICIAL REVIEW OF PARTNERSHIP ADJUSTMENT.

  ``(a) In General.--Within 90 days after the date on which a 
notice of a final partnership adjustment is mailed under 
section 6231 with respect to any partnership taxable year, the 
partnership may file a petition for a readjustment for such 
taxable year with--
          ``(1) the Tax Court,
          ``(2) the district court of the United States for the 
        district in which the partnership's principal place of 
        business is located, or
          ``(3) the Claims Court.
  ``(b) Jurisdictional Requirement for Bringing Action in 
District Court or Claims Court.--
          ``(1) In general.--A readjustment petition under this 
        section may be filed in a district court of the United 
        States or the Claims Court only if the partnership 
        filing the petition deposits with the Secretary, on or 
        before the date the petition is filed, the amount of 
        the imputed underpayment (as of the date of the filing 
        of the petition) if the partnership adjustment was made 
        as provided by the notice of final partnership 
        adjustment. The court may by order provide that the 
        jurisdictional requirements of this paragraph are 
        satisfied where there has been a good faith attempt to 
        satisfy such requirement and any shortfall of the 
        amount required to be deposited is timely corrected.
          ``(2) Interest payable.--Any amount deposited under 
        paragraph (1), while deposited, shall not be treated as 
        a payment of tax for purposes of this title (other than 
        chapter 67).
  ``(c) Scope of Judicial Review.--A court with which a 
petition is filed in accordance with this section shall have 
jurisdiction to determine all items of income, gain, loss, 
deduction, or credit of the partnership for the partnership 
taxable year to which the notice of final partnership 
adjustment relates, the proper allocation of such items among 
the partners, and the applicability of any penalty, addition to 
tax, or additional amount for which the partnership may be 
liable under this subchapter.
  ``(d) Determination of Court Reviewable.--Any determination 
by a court under this section shall have the force and effect 
of a decision of the Tax Court or a final judgment or decree of 
the district court or the Claims Court, as the case may be, and 
shall be reviewable as such. The date of any such determination 
shall be treated as being the date of the court's order 
entering the decision.
  ``(e) Effect of Decision Dismissing Action.--If an action 
brought under this section is dismissed other than by reason of 
a rescission under section 6231(c), the decision of the court 
dismissing the action shall be considered as its decision that 
the notice of final partnership adjustment is correct, and an 
appropriate order shall be entered in the records of the court.

``SEC. 6235. PERIOD OF LIMITATIONS ON MAKING ADJUSTMENTS.

  ``(a) In General.--Except as otherwise provided in this 
section, no adjustment under this subpart for any partnership 
taxable year may be made after the later of--
          ``(1) the date which is 3 years after the latest of--
                  ``(A) the date on which the partnership 
                return for such taxable year was filed,
                  ``(B) the return due date for the taxable 
                year, or
                  ``(C) the date on which the partnership filed 
                an administrative adjustment request with 
                respect to such year under section 6227, or
          ``(2) in the case of any modification of an imputed 
        underpayment under section 6225(c), the date that is 
        270 days (plus the number of days of any extension 
        consented to by the Secretary under paragraph (4) 
        thereof) after the date on which everything required to 
        be submitted to the Secretary pursuant to such section 
        is so submitted, or
          ``(3) in the case of any notice of a proposed 
        partnership adjustment under section 6231(a)(2), the 
        date that is 270 days after the date of such notice.
  ``(b) Extension by Agreement.--The period described in 
subsection (a) (including an extension period under this 
subsection) may be extended by an agreement entered into by the 
Secretary and the partnership before the expiration of such 
period.
  ``(c) Special Rule in Case of Fraud, etc.--
          ``(1) False return.--In the case of a false or 
        fraudulent partnership return with intent to evade tax, 
        the adjustment may be made at any time.
          ``(2) Substantial omission of income.--If any 
        partnership omits from gross income an amount properly 
        includible therein and such amount is described in 
        section 6501(e)(1)(A), subsection (a) shall be applied 
        by substituting `6 years' for `3 years'.
          ``(3) No return.--In the case of a failure by a 
        partnership to file a return for any taxable year, the 
        adjustment may be made at any time.
          ``(4) Return filed by secretary.--For purposes of 
        this section, a return executed by the Secretary under 
        subsection (b) of section 6020 on behalf of the 
        partnership shall not be treated as a return of the 
        partnership.
  ``(d) Suspension When Secretary Mails Notice of Adjustment.--
If notice of a final partnership adjustment with respect to any 
taxable year is mailed under section 6231, the running of the 
period specified in subsection (a) (as modified by the other 
provisions of this section) shall be suspended--
          ``(1) for the period during which an action may be 
        brought under section 6234 (and, if a petition is filed 
        under such section with respect to such notice, until 
        the decision of the court becomes final), and
          ``(2) for 1 year thereafter.

                ``PART 2--DEFINITIONS AND SPECIAL RULES

``Sec. 6241. Definitions and special rules.

``SEC. 6241. DEFINITIONS AND SPECIAL RULES.

  ``For purposes of this subchapter--
          ``(1) Partnership.--The term `partnership' means any 
        partnership required to file a return under section 
        6031(a).
          ``(2) Partnership adjustment.--The term `partnership 
        adjustment' means any adjustment in the amount of any 
        item of income, gain, loss, deduction, or credit of a 
        partnership, or any partner's distributive share 
        thereof.
          ``(3) Return due date.--The term `return due date' 
        means, with respect to the taxable year, the date 
        prescribed for filing the partnership return for such 
        taxable year (determined without regard to extensions).
          ``(4) Payments nondeductible.--No deduction shall be 
        allowed under subtitle A for any payment required to be 
        made by a partnership under this subchapter.
          ``(5) Partnerships having principal place of business 
        outside united states.--For purposes of sections 6234, 
        a principal place of business located outside the 
        United States shall be treated as located in the 
        District of Columbia.
          ``(6) Partnerships in cases under title 11 of united 
        states code.--
                  ``(A) Suspension of period of limitations on 
                making adjustment, assessment, or collection.--
                The running of any period of limitations 
                provided in this subchapter on making a 
                partnership adjustment (or provided by section 
                6501 or 6502 on the assessment or collection of 
                any imputed underpayment determined under this 
                subchapter) shall, in a case under title 11 of 
                the United States Code, be suspended during the 
                period during which the Secretary is prohibited 
                by reason of such case from making the 
                adjustment (or assessment or collection) and--
                          ``(i) for adjustment or assessment, 
                        60 days thereafter, and
                          ``(ii) for collection, 6 months 
                        thereafter.
                A rule similar to the rule of section 
                6213(f)(2) shall apply for purposes of section 
                6232(b).
                  ``(B) Suspension of period of limitation for 
                filing for judicial review.--The running of the 
                period specified in section 6234 shall, in a 
                case under title 11 of the United States Code, 
                be suspended during the period during which the 
                partnership is prohibited by reason of such 
                case from filing a petition under section 6234 
                and for 60 days thereafter.
          ``(7) Treatment where partnership ceases to exist.--
        If a partnership ceases to exist before a partnership 
        adjustment under this subchapter takes effect, such 
        adjustment shall be taken into account by the former 
        partners of such partnership under regulations 
        prescribed by the Secretary.
          ``(8) Extension to entities filing partnership 
        return.--If a partnership return is filed by an entity 
        for a taxable year but it is determined that the entity 
        is not a partnership (or that there is no entity) for 
        such year, then, to the extent provided in regulations, 
        the provisions of this subchapter are hereby extended 
        in respect of such year to such entity and its items 
        and to persons holding an interest in such entity.''.
          (2) Clerical amendment.--The table of subchapters for 
        chapter 63 of the Internal Revenue Code of 1986, as 
        amended by the preceding provisions of this section, is 
        amended by inserting after the item relating to 
        subchapter B the following new item:

              ``subchapter c. treatment of partnerships.''.

  (d) Binding Nature of Partnership Adjustment Proceedings.--
Section 6330(c)(4) of such Code is amended by striking ``or'' 
at the end of subparagraph (A), by striking the period at the 
end of subparagraph (B) and inserting ``; or'', and by 
inserting after subparagraph (B) the following new 
subparagraph:
                  ``(C) a final determination has been made 
                with respect to such issue in a proceeding 
                brought under subchapter C of chapter 63.''.
  (e) Restriction on Authority to Amend Partner Information 
Statements.--Section 6031(b) of such Code is amended by adding 
at the end the following: ``Except as provided in the 
procedures under section 6225(c), with respect to statements 
under section 6226, or as otherwise provided by the Secretary, 
information required to be furnished by the partnership under 
this subsection may not be amended after the due date of the 
return under subsection (a) to which such information 
relates.''.
  (f) Conforming Amendments.--
          (1) Section 6031(b) of such Code is amended by 
        striking the last sentence.
          (2) Section 6422 of such Code is amended by striking 
        paragraph (12).
          (3) Section 6501(n) of such Code is amended by 
        striking paragraphs (2) and (3) and by striking ``Cross 
        References'' and all that follows through ``For period 
        of limitations'' and inserting ``Cross Reference.--For 
        period of limitations''.
          (4) Section 6503(a)(1) of such Code is amended by 
        striking ``(or section 6229'' and all that follows 
        through ``of section 6230(a))''.
          (5) Section 6504 of such Code is amended by striking 
        paragraph (11).
          (6) Section 6511 of such Code is amended by striking 
        subsection (g).
          (7) Section 6512(b)(3) of such Code is amended by 
        striking the second sentence.
          (8) Section 6515 of such Code is amended by striking 
        paragraph (6).
          (9) Section 6601(c) of such Code is amended by 
        striking the last sentence.
          (10) Section 7421(a) of such Code is amended by 
        striking ``6225(b), 6246(b)'' and inserting 
        ``6232(c)''.
          (11) Section 7422 of such Code is amended by striking 
        subsection (h).
          (12) Section 7459(c) of such Code is amended by 
        striking ``section 6226'' and all that follows through 
        ``or 6252'' and inserting ``section 6234''.
          (13) Section 7482(b)(1) of such Code is amended--
                  (A) in subparagraph (E), by striking 
                ``section 6226, 6228, 6247, or 6252'' and 
                inserting ``section 6234'',
                  (B) by striking subparagraph (F), by striking 
                ``or'' at the end of subparagraph (E) and 
                inserting a period, and by inserting ``or'' at 
                the end of subparagraph (D), and
                  (C) in the last sentence, by striking 
                ``section 6226, 6228(a), or 6234(c)'' and 
                inserting ``section 6234''.
          (14) Section 7485(b) of such Code is amended by 
        striking ``section 6226, 6228(a), 6247, or 6252'' and 
        inserting ``section 6234''.
  (g) Effective Date.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        apply to returns filed for partnership taxable years 
        beginning after December 31, 2017.
          (2) Administrative adjustment requests.--In the case 
        of administrative adjustment request under section 6227 
        of such Code, the amendments made by this section shall 
        apply to requests with respect to returns filed for 
        partnership taxable years beginning after December 31, 
        2017.
          (3) Adjusted partners statements.--In the case of a 
        partnership electing the application of section 6226 of 
        such Code, the amendments made by this section shall 
        apply to elections with respect to returns filed for 
        partnership taxable years beginning after December 31, 
        2017.
          (4) Election.--A partnership may elect (at such time 
        and in such form and manner as the Secretary of the 
        Treasury may prescribe) for the amendments made by this 
        section (other than the election under section 6221(b) 
        of such Code (as added by this Act)) to apply to any 
        return of the partnership filed for partnership taxable 
        years beginning after the date of the enactment of this 
        Act and before January 1, 2018.

SEC. 1102. PARTNERSHIP INTERESTS CREATED BY GIFT.

  (a) In General.--Section 761(b) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following: ``In the 
case of a capital interest in a partnership in which capital is 
a material income-producing factor, whether a person is a 
partner with respect to such interest shall be determined 
without regard to whether such interest was derived by gift 
from any other person.''.
  (b) Conforming Amendments.--Section 704(e) of such Code is 
amended--
          (1) by striking paragraph (1) and by redesignating 
        paragraphs (2) and (3) as paragraphs (1) and (2), 
        respectively,
          (2) by striking ``this section'' in paragraph (2) (as 
        so redesignated) and inserting ``this subsection'', and
          (3) by striking ``Family Partnerships'' in the 
        heading and inserting ``Partnership Interests Created 
        by Gift''.
  (c) Effective Date.--The amendments made by this section 
shall apply to partnership taxable years beginning after 
December 31, 2015.

             TITLE XII--DESIGNATION OF SMALL HOUSE ROTUNDA

SEC. 1201. DESIGNATING SMALL HOUSE ROTUNDA AS ``FREEDOM FOYER''.

  The first floor of the area of the House of Representatives 
wing of the United States Capitol known as the small House 
rotunda is designated the ``Freedom Foyer''.

   PART B--TEXT OF THE MODIFICATION IN PART B TO THE HOUSE AMENDMENT

  Page 1, after line 5, in the table of contents, strike the 
item relating to section 504 and insert the following new item:

Sec. 504. Extension of current funding stabilization percentages to 
          2018, 2019, and 2020.

  Page 5, strike line 12 and all that follows through page 6, 
line 2, and insert the following:

  (d) Overseas Contingency Operations Amounts.--In fiscal years 
2016 and 2017, the adjustments under section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(b)(2)(A)) for Overseas Contingency Operations/
Global War on Terrorism appropriations will be as follows:
          (1) For budget function 150--
                  (A) for fiscal year 2016, $14,895,000,000; 
                and
                  (B) for fiscal year 2017, $14,895,000,000.
          (2) For budget function 050--
                  (A) for fiscal year 2016, $58,798,000,000; 
                and
                  (B) for fiscal year 2017, $58,798,000,000.
This subsection shall not affect the applicability of section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985.

  Page 10, line 23, strike ``Department of Treasury'' and 
insert ``Department of the Treasury''.

  Page 20, line 3, strike the dollar amount and insert ``$69''.

  Page 20, line 6, strike the dollar amount and insert ``$74''.

  Page 20, line 8, strike the dollar amount and insert ``$80''.

  Page 21, line 3, strike the dollar amount and insert ``$3''.

  Page 21, line 5, strike the dollar amount and insert ``$4''.

  Page 21, line 7, strike the dollar amount and insert ``$4''.

  Page 24, strike line 6 and all that follows through page 25, 
line 20, and insert the following:

SEC. 504. EXTENSION OF CURRENT FUNDING STABILIZATION PERCENTAGES TO 
                    2018, 2019, AND 2020.

  (a) Funding Stabilization Under the Internal Revenue Code of 
1986.--The table in subclause (II) of section 430(h)(2)(C)(iv) 
of the Internal Revenue Code of 1986 is amended to read as 
follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017,     90%..........................  110%
 2018, 2019, or 2020.
2021..................................  85%..........................  115%
2022..................................  80%..........................  120%
2023..................................  75%..........................  125%
After 2023............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

  (b) Funding Stabilization Under Employee Retirement Income 
Security Act of 1974.--
          (1) In general.--The table in subclause (II) of 
        section 303(h)(2)(C)(iv) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 
        1083(h)(2)(C)(iv)) is amended to read as follows:


----------------------------------------------------------------------------------------------------------------
                                            The applicable minimum
      ``If the calendar year is:                percentage is:           The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017,     90%..........................  110%
 2018, 2019, or 2020.
2021..................................  85%..........................  115%
2022..................................  80%..........................  120%
2023..................................  75%..........................  125%
After 2023............................  70%..........................  130%''.
----------------------------------------------------------------------------------------------------------------

          (2) Conforming amendments.--
                  (A) In general.--Section 101(f)(2)(D) of such 
                Act (29 U.S.C. 1021(f)(2)(D)) is amended--
                          (i) in clause (i) by striking ``and 
                        the Highway and Transportation Funding 
                        Act of 2014'' both places it appears 
                        and inserting ``, the Highway and 
                        Transportation Funding Act of 2014, and 
                        the Bipartisan Budget Act of 2015'', 
                        `and
                          (ii) in clause (ii) by striking 
                        ``2020'' and inserting ``2023''.
                  (B) Statements.--The Secretary of Labor shall 
                modify the statements required under subclauses 
                (I) and (II) of section 101(f)(2)(D)(i) of such 
                Act to conform to the amendments made by this 
                section.
  (c) Effective Date.--The amendments made by this section 
shall apply with respect to plan years beginning after December 
31, 2015.

  Page 35, strike lines 10 through 17, and insert the 
following:

                  ``(A) Applicable items and services.--For 
                purposes of paragraph (1)(B)(v) and this 
                paragraph, the term `applicable items and 
                services' means items and services other than 
                items and services furnished by a dedicated 
                emergency department (as defined in section 
                489.24(b) of title 42 of the Code of Federal 
                Regulations).

  Page 75, line 25, and page 76, line 1, strike ``benefits 
payable for months'' and insert ``requests for benefit 
suspension submitted''.

  Page 100, line 6, insert ``activities with respect to 
systems,'' after ``economic analyses,''.

                                  [all]