[United States Statutes at Large, Volume 127, 113th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


Public Law 113-67
113th Congress

Joint Resolution


 
Making continuing appropriations for fiscal year 2014, and for other
purposes. <>

Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That

DIVISION <> A--BIPARTISAN BUDGET
AGREEMENT

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) Short <> Title.--This division may be
cited as the ``Bipartisan Budget Act of 2013''.

(b) Table of Contents.--The table of contents of this division is as
follows:

DIVISION A--BUDGET ENFORCEMENT AND DEFICIT REDUCTION

Sec. 1. Short title and table of contents.

TITLE I--BUDGET ENFORCEMENT

Subtitle A--Amendments to the Balanced Budget and Emergency Deficit
Control Act of 1985

Sec. 101. Amendments to the Balanced Budget and Emergency Deficit
Control Act of 1985.

Subtitle B--Establishing a Congressional Budget

Sec. 111. Fiscal year 2014 budget resolution.
Sec. 112. Limitation on advance appropriations in the Senate.
Sec. 113. Rule of construction in the House of Representatives.
Sec. 114. Additional Senate budget enforcement.
Sec. 115. Authority for fiscal year 2015 budget resolution in the House
of Representatives.
Sec. 116. Authority for fiscal year 2015 budget resolution in the
Senate.
Sec. 117. Exclusion of savings from PAYGO scorecards.
Sec. 118. Exercise of rulemaking powers.

Subtitle C--Technical Corrections

Sec. 121. Technical corrections to the Balanced Budget and Emergency
Deficit Control Act of 1985.
Sec. 122. Technical corrections to the Congressional Budget Act of 1974.

TITLE II--PREVENTION OF WASTE, FRAUD, AND ABUSE

Sec. 201. Improving the collection of unemployment insurance
overpayments.
Sec. 202. Strengthening Medicaid Third-Party Liability.
Sec. 203. Restriction on access to the death master file.
Sec. 204. Identification of inmates requesting or receiving improper
payments.

TITLE III--NATURAL RESOURCES

Sec. 301. Ultra-deepwater and unconventional natural gas and other
petroleum resources.

[[Page 1166]]

Sec. 302. Amendment to the Mineral Leasing Act.
Sec. 303. Approval of agreement with Mexico.
Sec. 304. Amendment to the Outer Continental Shelf Lands Act.
Sec. 305. Federal oil and gas royalty prepayment cap.
Sec. 306. Strategic Petroleum Reserve.

TITLE IV--FEDERAL CIVILIAN AND MILITARY RETIREMENT

Sec. 401. Increase in contributions to Federal Employees Retirement
System for new employees.
Sec. 402. Foreign Service Pension System.
Sec. 403. Annual adjustment of retired pay and retainer pay amounts for
retired members of the Armed Forces under age 62.

TITLE V--HIGHER EDUCATION

Sec. 501. Default reduction program.
Sec. 502. Elimination of nonprofit servicing contracts.

TITLE VI--TRANSPORTATION

Sec. 601. Aviation security service fees.
Sec. 602. Transportation cost reimbursement.
Sec. 603. Sterile areas at airports.

TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Extension of customs user fees.
Sec. 702. Limitation on allowable government contractor compensation
costs.
Sec. 703. Pension Benefit Guaranty Corporation premium rate increases.
Sec. 704. Cancellation of Unobligated Balances.
Sec. 705. Conservation planning technical assistance user fees.
Sec. 706. Self plus one coverage.

(c) <>  References.--Except as expressly
provided otherwise, any reference to ``this Act'' contained in any
division of this Act shall be treated as referring only to the
provisions of that division.

TITLE I--BUDGET ENFORCEMENT

Subtitle A--Amendments to the Balanced Budget and Emergency Deficit
Control Act of 1985

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 is amended by striking paragraphs (1) through (10) and
inserting the following new paragraphs:
``(1) for fiscal year 2014--
``(A) for the revised security category,
$520,464,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$491,773,000,000 in new budget authority;
``(2) for fiscal year 2015--
``(A) for the revised security category,
$521,272,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$492,356,000,000 in new budget authority;
``(3) for fiscal year 2016--
``(A) for the revised security category,
$577,000,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$530,000,000,000 in new budget authority;

[[Page 1167]]

``(4) for fiscal year 2017--
``(A) for the revised security category,
$590,000,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$541,000,000,000 in new budget authority;
``(5) for fiscal year 2018--
``(A) for the revised security category,
$603,000,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$553,000,000,000 in new budget authority;
``(6) for fiscal year 2019--
``(A) for the revised security category,
$616,000,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$566,000,000,000 in new budget authority;
``(7) for fiscal year 2020--
``(A) for the revised security category,
$630,000,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$578,000,000,000 in new budget authority; and
``(8) for fiscal year 2021--
``(A) for the revised security category,
$644,000,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$590,000,000,000 in new budget authority;''.

(b) Direct Spending Adjustments for Fiscal Years 2014 and 2015.--(1)
Section 251A of the Balanced Budget and Emergency Deficit Control Act of
1985, <>  as redesignated by subsection (d), is
amended by adding at the end the following new paragraph:
``(10) Implementing direct spending reductions for fiscal
years 2014 and 2015.--(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 2014 and 2015 by the Bipartisan
Budget Act of 2013.
``(B) Paragraph (5)(B) shall not be implemented for fiscal
years 2014 and 2015.''.

(2) Paragraph (5)(B) of section 251A of the Balanced Budget and
Emergency Deficit Control Act of 1985, as redesignated by subsection
(d)(2)(C) of this section, is amended by striking ``On'' and inserting
``Except as provided by paragraph (10), on''.
(c) Extension of Direct Spending Reductions for Fiscal Years 2022
and 2023.--Paragraph (6), as redesignated by subsection (d)(2)(C) of
this section, of section 251A of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by inserting ``(A)'' before ``On
the date'' and by adding at the end the following new subparagraph:
``(B) <>
On the dates OMB issues its sequestration preview reports for
fiscal year 2022 and for fiscal year 2023, pursuant to section
254(c), the President shall order a sequestration, effective
upon issuance such that--
``(i) the percentage reduction for nonexempt direct
spending for the defense function is the same percent as
the percentage reduction for nonexempt direct spending
for the defense function for fiscal year 2021 calculated
under paragraph (3)(B); and

[[Page 1168]]

``(ii) the percentage reduction for nonexempt direct
spending for nondefense functions is the same percent as
the percentage reduction for nonexempt direct spending
for nondefense functions for fiscal year 2021 calculated
under paragraph (4)(B).''.

(d) Conforming Amendments.--Part C of title II of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.)
is amended--
(1) <>  in section 250(c)(4) (2 U.S.C.
900(c)(4)), by adding at the end the following:
``(D) The term `revised security category' means
discretionary appropriations in budget function 050.
``(E) The term `revised nonsecurity category' means
discretionary appropriations other than in budget function 050.
``(F) The term `category' means the subsets of discretionary
appropriations in section 251(c). Discretionary appropriations
in each of the categories shall be those designated in the joint
explanatory statement accompanying the conference report on the
Balanced Budget Act of 1997. <>  New
accounts or activities shall be categorized only after
consultation with the Committees on Appropriations and the
Budget of the House of Representatives and the Senate and that
consultation shall, to the extent practicable, include written
communication to such committees that affords such committees
the opportunity to comment before official action is taken with
respect to new accounts or activities.''; and
(2) in section 251A (2 U.S.C. 901a)--
(A) by striking, in the matter preceding paragraph
(1), ``Unless'' through ``as follows:'' and inserting
the following: ``Discretionary appropriations and direct
spending accounts shall be reduced in accordance with
this section as follows:'';
(B) by striking paragraphs (1) and (2);
(C) by redesignating paragraphs (3) through (11) as
paragraphs (1) through (9), respectively;
(D) in paragraph (2), as redesignated, by striking
``paragraph (3)'' and inserting ``paragraph (1)'';
(E) in paragraph (3), as redesignated, by striking
``paragraph (4)'' each place it appears and inserting
``paragraph (2)'';
(F) in paragraph (4), as redesignated, by striking
``paragraph (4)'' each place it appears and inserting
``paragraph (2)'';
(G) in paragraph (5), as redesignated--
(i) by striking ``paragraph (5)'' each place
it appears and inserting ``paragraph (3)''; and
(ii) by striking ``paragraph (6)'' each place
it appears and inserting ``paragraph (4)'';
(H) in paragraph (6), as redesignated--
(i) by striking ``paragraph (4)'' and
inserting ``paragraph (2)''; and
(ii) by striking ``paragraphs (5) and (6)''
and inserting ``paragraphs (3) and (4)'';
(I) in paragraph (7), as redesignated--
(i) by striking ``paragraph (8)'' and
inserting ``paragraph (6)''; and

[[Page 1169]]

(ii) by striking ``paragraph (6)'' each place
it appears and inserting ``paragraph (4)''; and
(J) in paragraph (9), as redesignated, by striking
``paragraph (4)'' and inserting ``paragraph (2)''.

Subtitle B--Establishing a Congressional Budget

SEC. 111. FISCAL YEAR 2014 BUDGET RESOLUTION.

(a) <>  Fiscal Year 2014.--For the purpose of
enforcing the Congressional Budget Act of 1974 for fiscal year 2014, and
enforcing, in the Senate, 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 same manner as for a
concurrent resolution on the budget for fiscal year 2014 with
appropriate budgetary levels for fiscal year 2014 and for fiscal years
2015 through 2023.

(b) <>  Committee
Allocations, Aggregates, and Levels.--The Chairmen of the Committee on
the Budget of the House of Representatives and the Senate shall each
submit a statement for publication in the Congressional Record as soon
as practicable after the date of enactment of this Act that includes--
(1) for the Committee on Appropriations of that House,
committee allocations for fiscal year 2014 consistent with the
discretionary spending limits set forth in this Act for the
purpose of enforcing section 302 of the Congressional Budget Act
of 1974;
(2) for all committees of that House other than the
Committee on Appropriations, committee allocations for--
(A) fiscal year 2014;
(B) fiscal years 2014 through 2018 in the Senate
only; and
(C) fiscal years 2014 through 2023;
consistent with the May 2013 baseline of the Congressional
Budget Office adjusted to account for the budgetary effects of
this Act and legislation enacted prior to this Act but not
included in the May 2013 baseline of the Congressional Budget
Office, for the purpose of enforcing section 302 of the
Congressional Budget Act of 1974;
(3) aggregate spending levels for fiscal year 2014 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--
(A) fiscal year 2014;
(B) fiscal years 2014 through 2018 in the Senate
only; and
(C) fiscal years 2014 through 2023;
consistent with the May 2013 baseline of the Congressional
Budget Office adjusted to account for the budgetary effects of
this Act and legislation enacted prior to this Act but not
included in the May 2013 baseline of the Congressional Budget
Office, for the purpose of enforcing section 311 of the
Congressional Budget Act of 1974; and
(5) in the Senate only, levels of Social Security revenues
and outlays for fiscal year 2014 and for the periods of fiscal

[[Page 1170]]

years 2014 through 2018 and 2014 through 2023 consistent with
the May 2013 baseline of the Congressional Budget Office
adjusted to account for the budgetary effects of this Act and
legislation enacted prior to this Act but not included in the
May 2013 baseline of the Congressional Budget Office, for the
purpose of enforcing sections 302 and 311 of the Congressional
Budget Act of 1974.

(c) Further Adjustments.--After the date of enactment of this Act,
the Chairman of the Committee on the Budget of the House of
Representatives may reduce the aggregates, allocations, and other
budgetary levels included in the statement of the Chairman of the
Committee on the Budget of the House of Representatives referred to in
subsection (b) to reflect the budgetary effects of any legislation
enacted during the 113th Congress that reduces the deficit.

SEC. 112. LIMITATION ON ADVANCE APPROPRIATIONS IN THE SENATE.

(a) Point of Order Against Advance Appropriations in the Senate.--
(1) In general.--
(A) Point of order.--Except as provided in paragraph
(2), it shall not be in order in the Senate to consider
any bill, joint resolution, motion, amendment, amendment
between the Houses, or conference report that would
provide an advance appropriation.
(B) Definition.--In this subsection, the term
``advance appropriation'' means any new budget authority
provided in a bill or joint resolution making
appropriations for fiscal year 2014 that first becomes
available for any fiscal year after 2014 or any new
budget authority provided in a bill or joint resolution
making appropriations for fiscal year 2015 that first
becomes available for any fiscal year after 2015.
(2) Exceptions.--Advance appropriations may be provided--
(A) for fiscal years 2015 and 2016 for programs,
projects, activities, or accounts identified in a
statement submitted to the Congressional Record by the
Chairman of the Committee on the Budget of the Senate
under the heading ``Accounts Identified for Advance
Appropriations'' in an aggregate amount not to exceed
$28,852,000,000 in new budget authority in each fiscal
year;
(B) for the Corporation for Public Broadcasting; and
(C) for the Department of Veterans Affairs for the
Medical Services, Medical Support and Compliance, and
Medical Facilities accounts of the Veterans Health
Administration.
(3) Supermajority waiver and appeal.--
(A) Waiver.--In the Senate, paragraph (1) may be
waived or suspended only by an affirmative vote of
three-fifths of the Members, duly chosen and sworn.
(B) Appeal.--An affirmative vote of three-fifths of
the Members of the Senate, duly chosen and sworn, shall
be required to sustain an appeal of the ruling of the
Chair on a point of order raised under paragraph (1).

[[Page 1171]]

(4) Form of point of order.--A point of order under
paragraph (1) may be raised by a Senator as provided in section
313(e) of the Congressional Budget Act of 1974.
(5) Conference reports.--When the Senate is considering a
conference report on, or an amendment between the Houses in
relation to, a bill, upon a point of order being made by any
Senator pursuant to this subsection, and such point of order
being sustained, such material contained in such conference
report or amendment between the Houses shall be stricken, and
the Senate shall proceed to consider the question of whether the
Senate shall recede from its amendment and concur with a further
amendment, or concur in the House amendment with a further
amendment, as the case may be, which further amendment shall
consist of only that portion of the conference report or House
amendment, as the case may be, not so stricken. Any such motion
in the Senate shall be debatable. In any case in which such
point of order is sustained against a conference report (or
Senate amendment derived from such conference report by
operation of this paragraph), no further amendment shall be in
order.
(6) Inapplicability.--In the Senate, section 402 of S. Con.
Res. 13 (111th Congress) shall no longer apply.

(b) Expiration.--Subsection (a) shall expire if a concurrent
resolution on the budget for fiscal year 2015 is agreed to by the Senate
and House of Representatives pursuant to section 301 of the
Congressional Budget Act of 1974.

SEC. 113. RULE OF CONSTRUCTION IN THE HOUSE OF REPRESENTATIVES.

In the House of Representatives, for the remainder of the 113th
Congress, the provisions of H. Con. Res. 25 (113th Congress), as deemed
in force by H. Res. 243 (113th Congress), shall remain in force to the
extent its budgetary levels are not superseded by this subtitle or by
further action of the House of Representatives.

SEC. 114. ADDITIONAL SENATE BUDGET ENFORCEMENT.

(a) Senate Pay-As-You-Go Scorecard.--
(1) <>  In general.--Effective on the
date of enactment of this Act, for the purpose of enforcing
section 201 of S. Con. Res. 21 (110th Congress), the Chairman of
the Committee on the Budget of the Senate shall reduce any
balances of direct spending and revenues for any fiscal year to
zero.
(2) <>  Fiscal year 2015.--
After April 15, 2014, but not later than May 15, 2014, for the
purpose of enforcing section 201 of S. Con. Res. 21 (110th
Congress), the Chairman of the Committee on the Budget of the
Senate shall reduce any balances of direct spending and revenues
for any fiscal year to zero.
(3) <>  Publication.--Upon resetting the
Senate paygo scorecard pursuant to paragraph (2), the Chairman
of the Committee on the Budget of the Senate shall publish a
notification of such action in the Congressional Record.

(b) Further Adjustments.--With respect to any allocations,
aggregates, or levels set or adjustments made pursuant to this subtitle,
sections 412 through 414 of S. Con. Res. 13 (111th Congress) shall
remain in effect.
(c) Deficit-Neutral Reserve Fund To Replace Sequestration.--The
Chairman of the Committee on the Budget of the Senate

[[Page 1172]]

may revise the allocations of a committee or committees, aggregates, and
other appropriate levels and limits set pursuant to this subtitle for
one or more bills, joint resolutions, amendments, motions, or conference
reports that amend section 251A of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901a) to repeal or revise the
enforcement procedures established under that section, by the amounts
provided in such legislation for those purposes, provided that such
legislation would not increase the deficit over the period of the total
of fiscal years 2014 through 2023. For purposes of determining deficit-
neutrality under this subsection, the Chairman may include the estimated
effects of any amendment or amendments to the discretionary spending
limits in section 251(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(c)).
(d) Additional Deficit-Neutral Reserve Funds.--In the Senate only,
sections 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313,
314, 315, 316, 317, 318, 319, 320, 322, 323, 324, 325, 326, 327, 328,
329, 330, 331, 332, 333, 334, 335, 338, 339, 340, 341, 344, 348, 349,
350, 353, 354, 356, 361, 363, 364, 365, 366, 367, 368, 369, 371, 376,
378, 379, and 383 of S. Con. Res. 8 (113th Congress), as passed the
Senate, shall have force and effect.
(e) Expiration.--Subsections (a)(2), (c), and (d) shall expire if a
concurrent resolution on the budget for fiscal year 2015 is agreed to by
the Senate and House of Representatives pursuant to section 301 of the
Congressional Budget Act of 1974.

SEC. 115. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION IN THE HOUSE
OF REPRESENTATIVES.

(a) <>  Fiscal Year 2015.--If
a concurrent resolution on the budget for fiscal year 2015 has not been
adopted by April 15, 2014, for the purpose of enforcing the
Congressional Budget Act of 1974, the allocations, aggregates, and
levels provided for in subsection (b) shall apply in the House of
Representatives after April 15, 2014, in the same manner as for a
concurrent resolution on the budget for fiscal year 2015 with
appropriate budgetary levels for fiscal year 2015 and for fiscal years
2016 through 2024.

(b) <>  Committee Allocations, Aggregates, and Levels.--In
the House of Representatives, the Chairman of the Committee on the
Budget shall submit a statement for publication in the Congressional
Record after April 15, 2014, but not later than May 15, 2014,
containing--
(1) for the Committee on Appropriations, committee
allocations for fiscal year 2015 at the total level as set forth
in section 251(c)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985 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 year 2015 and
for the period of fiscal years 2015 through 2024 at the levels
included in 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; and

[[Page 1173]]

(3) aggregate spending levels for fiscal year 2015 and
aggregate revenue levels for fiscal year 2015 and for the period
of fiscal years 2015 through 2024, at the levels included in 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.

(c) Additional Matter.--The statement referred to in subsection (b)
may also include for fiscal year 2015, the matter contained in title IV
(reserve funds) and in sections 601, 603(a), 605(a), and 609 of H. Con.
Res. 25 (113th Congress), as adopted by the House, updated by one fiscal
year, including updated amounts for section 601.
(d) Fiscal Year 2015 Allocation to the Committee on
Appropriations. <> --If the statement referred to in subsection (b) is not
filed by May 15, 2014, then the matter referred to in subsection (b)(1)
shall be submitted by the Chairman of the Committee on the Budget for
publication in the Congressional Record on the next day that the House
of Representatives is in session.

(e) Adjustments.--The Chairman of the Committee on the Budget of the
House of Representatives may adjust the levels included in the statement
referred to in subsection (b) to reflect the budgetary effects of any
legislation enacted during the 113th Congress that reduces the deficit
or as otherwise necessary.
(f) Application.--Subsections (a), (b), (c), (d), and (e) shall no
longer apply if a concurrent resolution on the budget for fiscal year
2015 is agreed to by the Senate and House of Representatives pursuant to
section 301 of the Congressional Budget Act of 1974.

SEC. 116. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION IN THE
SENATE.

(a) <>  Fiscal Year 2015.--For the purpose of
enforcing the Congressional Budget Act of 1974, after April 15, 2014,
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 2015 with
appropriate budgetary levels for fiscal years 2014 and 2016 through
2024.

(b) <>  Committee Allocations,
Aggregates, and Levels.--After April 15, 2014, but not later than May
15, 2014, the Chairman of the Committee on the Budget of the Senate
shall file--
(1) for the Committee on Appropriations, committee
allocations for fiscal years 2014 and 2015 consistent with the
discretionary spending limits set forth in 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 2014,
2015, 2015 through 2019, and 2015 through 2024 consistent with
the most recent baseline of the Congressional Budget Office for
the purpose of enforcing section 302 of the Congressional Budget
Act of 1974;

[[Page 1174]]

(3) aggregate spending levels for fiscal years 2014 and 2015
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 2014, 2015,
2015 through 2019, and 2015 through 2024 consistent with the
most recent baseline of the Congressional Budget Office 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 2014, 2015, 2015 through 2019, and 2015 through
2024 consistent with the most recent baseline of the
Congressional Budget Office 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 2015, the reserve funds included in
section 114(c) and (d) of this Act, updated by one fiscal year.
(d) Superseding Previous Statement.--In the Senate, the filing
referred to in subsection (b) shall supersede the statement referred to
in section 111(b) of this Act.
(e) Expiration.--This section shall expire if a concurrent
resolution on the budget for fiscal year 2015 is agreed to by the Senate
and House of Representatives pursuant to section 301 of the
Congressional Budget Act of 1974.

SEC. 117. EXCLUSION OF SAVINGS FROM PAYGO SCORECARDS.

(a) Statutory Pay-As-You-Go Scorecards.--Notwithstanding section
1(c) of this division, the budgetary effects of this Act shall not be
entered on either PAYGO scorecard maintained pursuant to section 4(d) of
the Statutory Pay-As-You-Go Act of 2010.
(b) Senate PAYGO Scorecards.--Notwithstanding section 1(c) of this
division, the budgetary effects of this Act shall not be entered on any
PAYGO scorecard maintained for purposes of section 201 of S. Con. Res.
21 (110th Congress).

SEC. 118. EXERCISE OF RULEMAKING POWERS.

The provisions of this subtitle are enacted by the Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such they
shall be considered as part of the rules of each House,
respectively, or of that House to which they specifically apply,
and such rules shall supersede other rules only to the extent
that they are inconsistent therewith; and
(2) with full recognition of the constitutional right of
either House to change such rules (so far as relating to such
House) at any time, in the same manner, and to the same extent
as in the case of any other rule of such House.

Subtitle C--Technical Corrections

SEC. 121. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND EMERGENCY
DEFICIT CONTROL ACT OF 1985.

The Balanced Budget and Emergency Deficit Control Act of 1985 is
amended as follows:
(1) In section 252(b)(2)(B), <>  strike
``applicable to budget year'' and insert ``applicable to the
budget year''.

[[Page 1175]]

(2) In section 252(c)(1)(C)(i), strike ``paragraph (1)'' and
insert ``subsection (b)''.
(3) In section 254(c)(3)(A), <>  strike
``subsection 252(b)'' and insert ``section 252(b)''.
(4) In section 254(f)(4), strike ``subsection 252(b)'' and
insert ``section 252(b)''.
(5) In section 255(a), <>  strike
``section 231b(a), 231b(f)(2), 231c(a), and 231c(f) of title 45
United States Code'' and insert ``sections 3 and 4 of the
Railroad Retirement Act of 1937 (45 U.S.C. 231 et seq.)''.
(6) In section 255(h), in the item relating to Federal Pell
Grants, strike ``section 401 Title IV'' and insert ``section 401
of title IV''.
(7) In the first subsection (j) of section 255 (relating to
Split Treatment Programs), move the margins for the list items
two ems to the right.
(8) Redesignate the second subsection (j) of section 255
(relating to Identification of Programs) as subsection (k).
(9) In section 257(b)(2)(A)(i), <>  strike
``differenes'' and insert ``differences''.
(10) In section 258(a)(1), <>  strike
``section 254(j)'' and insert ``section 254(i)''.

SEC. 122. TECHNICAL CORRECTIONS TO THE CONGRESSIONAL BUDGET ACT OF 1974.

The Congressional Budget Act of 1974 is amended as follows:
(1) In sections 301(a)(6) and 301(a)(7), <>  strike ``For purposes'' and insert ``for purposes''.
(2) In section 301(a), in the matter following paragraph
(7), strike ``old age'' and insert ``old-age''.
(3) In section 302(g)(2)(A), <>  strike
``committee on the Budget'' and insert ``Committee on the
Budget''.
(4) In section 305(a)(1), <>  strike
``clause 2(l)(6) of rule XI'' and insert ``clause 4 of rule
XIII''.
(5) In section 305(a)(5), strike ``provisions of rule
XXIII'' and insert ``provisions of rule XVIII''.
(6) In section 305(b)(1), strike ``section 304(a)'' and
insert ``section 304''.
(7) In section 306 <>  strike ``No'' and
insert ``(a) In the Senate.--In the Senate, no'', strike ``of
either House'' and ``in that House'', strike ``of that House'',
and add at the end the following new subsection:

``(b) In the House of Representatives.--In the House of
Representatives, no bill or joint resolution, or amendment thereto, or
conference report thereon, dealing with any matter which is within the
jurisdiction of the Committee on the Budget shall be considered unless
it is a bill or joint resolution which has been reported by the
Committee on the Budget (or from the consideration of which such
committee has been discharged) or unless it is an amendment to such a
bill or joint resolution.''.
(8) In section 308(d) <> , in the
subsection heading, strike ``Scorekeeping Guidelines.--'' and
insert ``Scorekeeping Guidelines.--''.
(9) In section 310(c)(1)(A)(i) <>  and
(ii), strike ``under that paragraph by more than'' and insert
``under that paragraph by more than--''.

[[Page 1176]]

(10) In section 314(d)(2) <> , strike
subparagraph (A), redesignate subparagraphs (B) and (C) as
subparagraphs (A) and (B) respectively, in subparagraph (A), as
redesignated, strike ``under subparagraph (A)'' and insert
``under paragraph (1)'', and in subparagraph (B), as
redesignated, strike ``under subparagraph (B)'' and insert
``under subparagraph (A)''.
(11) In section 315, <>  add at the end
the following new sentence: <> ``In the
case of a reported bill or joint resolution considered pursuant
to a special order of business, a point of order under section
303 shall be determined on the basis of the text made in order
as an original bill or joint resolution for the purpose of
amendment or to the text on which the previous question is
ordered directly to passage, as the case may be.''.
(12) In section 401(b)(2) <> , strike
``section 302(b)'' and insert ``section 302(a)''.
(13) In section 401(c), add at the end the following new
paragraph:
``(3) In the House of Representatives, subsections (a) and
(b) shall not apply to new authority described in those
subsections to the extent that a provision in a bill or joint
resolution, or an amendment thereto or a conference report
thereon, establishes prospectively for a Federal office or
position a specified or minimum level of compensation to be
funded by annual discretionary appropriations.''.
(14) In section 421(5)(A)(i)(II) <> ,
strike ``subparagraph (B))'' and insert ``subparagraph (B)''.
(15) In section 505(c) <> , strike
``section 406(b)'' both places it appears and insert ``section
405(b)''.
(16) In section 904(c)(2) <> , strike
``258A(b)(3)(C)(I)'' and ``258(h)(3)'' and insert
``258A(b)(3)(C)(i)'' and ``258B(h)(3)'', respectively, and
strike ``and 314(e)'' and insert ``314(e), and 314(f)''.
(17) In section 904(d)(3), strike ``258A(b)(3)(C)(I)'' and
``258(h)(3)'' and insert ``258A(b)(3)(C)(i)'' and
``258B(h)(3)'', respectively, and strike ``and 312(c)'' and
insert ``312(c), 314(e), and 314(f)''.

TITLE II--PREVENTION OF WASTE, FRAUD, AND ABUSE

SEC. 201. IMPROVING THE COLLECTION OF UNEMPLOYMENT INSURANCE
OVERPAYMENTS.

(a) In General.--Section 303 of the Social Security Act (42 U.S.C.
503) is amended by adding at the end the following:
``(m) In the case of a covered unemployment compensation debt (as
defined under section 6402(f)(4) of the Internal Revenue Code of 1986)
that remains uncollected as of the date that is 1 year after the debt
was finally determined to be due and collected, the State to which such
debt is owed shall take action to recover such debt under section
6402(f) of the Internal Revenue Code of 1986.''.
(b) <>  Effective Date.--The amendment made
by subsection (a) shall take effect upon the date of enactment of this
Act.

[[Page 1177]]

SEC. 202. STRENGTHENING MEDICAID THIRD-PARTY LIABILITY.

(a) <>  Payment for Prenatal and Preventive
Pediatric Care and in Cases Involving Medical Support.--Section
1902(a)(25) of the Social Security Act (42 U.S.C. 1396a(a)(25)) is
amended--
(1) in subparagraph (E)(i), by inserting before the
semicolon at the end the following: ``, except that the State
may, if the State determines doing so is cost-effective and will
not adversely affect access to care, only make such payment if a
third party so liable has not made payment within 90 days after
the date the provider of such services has initially submitted a
claim to such third party for payment for such services''; and
(2) in subparagraph (F)(i), by striking ``30 days after such
services are furnished'' and inserting ``90 days after the date
the provider of such services has initially submitted a claim to
such third party for payment for such services, except that the
State may make such payment within 30 days after such date if
the State determines doing so is cost-effective and necessary to
ensure access to care.''.

(b) Recovery of Medicaid Expenditures From Beneficiary Liability
Settlements.--
(1) State plan requirements.--Section 1902(a)(25) of the
Social Security Act (42 U.S.C. 1396a(a)(25)) is amended--
(A) in subparagraph (B), by striking ``to the extent
of such legal liability''; and
(B) in subparagraph (H), by striking ``payment by
any other party for such health care items or services''
and inserting ``any payments by such third party''.
(2) Assignment of rights of payment.--Section 1912(a)(1)(A)
of such Act (42 U.S.C. 1396k(a)(1)(A)) is amended by striking
``payment for medical care from any third party'' and inserting
``any payment from a third party that has a legal liability to
pay for care and services available under the plan''.
(3) Liens.--Section 1917(a)(1)(A) of such Act (42 U.S.C.
1396p(a)(1)(A)) is amended to read as follows:
``(A) pursuant to--
``(i) the judgment of a court on account of benefits
incorrectly paid on behalf of such individual, or
``(ii) rights acquired by or assigned to the State
in accordance with section 1902(a)(25)(H) or section
1912(a)(1)(A), or''.

(c) <>  Effective Date.--The amendments
made by this section shall take effect on October 1, 2014.

SEC. 203 <> . RESTRICTION ON ACCESS TO THE DEATH
MASTER FILE.

(a) <>  In General.--The Secretary of
Commerce shall not disclose to any person information contained on the
Death Master File with respect to any deceased individual at any time
during the 3-calendar-year period beginning on the date of the
individual's death, unless such person is certified under the program
established under subsection (b).

(b) Certification Program.--
(1) In general.--The Secretary of Commerce shall establish a
program--

[[Page 1178]]

(A) to certify persons who are eligible to access
the information described in subsection (a) contained on
the Death Master File, and
(B) to perform periodic and unscheduled audits of
certified persons to determine the compliance by such
certified persons with the requirements of the program.
(2) Certification.--A person shall not be certified under
the program established under paragraph (1) unless such person
certifies that access to the information described in subsection
(a) is appropriate because such person--
(A) has--
(i) a legitimate fraud prevention interest, or
(ii) a legitimate business purpose pursuant to
a law, governmental rule, regulation, or fiduciary
duty, and
(B) has systems, facilities, and procedures in place
to safeguard such information, and experience in
maintaining the confidentiality, security, and
appropriate use of such information, pursuant to
requirements similar to the requirements of section
6103(p)(4) of the Internal Revenue Code of 1986, and
(C) agrees to satisfy the requirements of such
section 6103(p)(4) as if such section applied to such
person.
(3) Fees.--
(A) In general.--The Secretary of Commerce shall
establish under section 9701 of title 31, United States
Code, a program for the charge of fees sufficient to
cover (but not to exceed) all costs associated with
evaluating applications for certification and auditing,
inspecting, and monitoring certified persons under the
program. Any fees so collected shall be deposited and
credited as offsetting collections to the accounts from
which such costs are paid.
(B) Report.--The Secretary of Commerce shall report
on an annual basis to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives on the total fees collected during
the preceding year and the cost of administering the
certification program under this subsection for such
year.

(c) Imposition of Penalty.--
(1) In general.--Any person who is certified under the
program established under subsection (b), who receives
information described in subsection (a), and who during the
period of time described in subsection (a)--
(A) discloses such information to any person other
than a person who meets the requirements of
subparagraphs (A), (B), and (C) of subsection (b)(2),
(B) discloses such information to any person who
uses the information for any purpose not listed under
subsection (b)(2)(A) or who further discloses the
information to a person who does not meet such
requirements, or
(C) uses any such information for any purpose not
listed under subsection (b)(2)(A),
and any person to whom such information is disclosed who further
discloses or uses such information as described in the preceding
subparagraphs, shall pay a penalty of $1,000 for each such
disclosure or use.
(2) Limitation on penalty.--

[[Page 1179]]

(A) In general.--The total amount of the penalty
imposed under this subsection on any person for any
calendar year shall not exceed $250,000.
(B) Exception for willful violations.--Subparagraph
(A) shall not apply in the case of violations under
paragraph (1) that the Secretary of Commerce determines
to be willful or intentional violations.

(d) <>  Death Master File.--For purposes of this
section, the term ``Death Master File'' means information on the name,
social security account number, date of birth, and date of death of
deceased individuals maintained by the Commissioner of Social Security,
other than information that was provided to such Commissioner under
section 205(r) of the Social Security Act (42 U.S.C. 405(r)).

(e) Exemption From Freedom of Information Act Requirement With
Respect to Certain Records of Deceased Individuals.--
(1) In general.--No Federal agency shall be compelled to
disclose the information described in subsection (a) to any
person who is not certified under the program established under
subsection (b).
(2) Treatment of information.--For purposes of section 552
of title 5, United States Code, this section shall be considered
a statute described in subsection (b)(3) of such section 552.

(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section shall take effect on the date that is 90 days after the
date of the enactment of this Act.
(2) FOIA exemption.--Subsection (e) shall take effect on the
date of the enactment of this Act.

SEC. 204. IDENTIFICATION OF INMATES REQUESTING OR RECEIVING IMPROPER
PAYMENTS.

(a) Information Provided to the Prisoner Update Processing System
(PUPS).--
(1) Section 202(x)(3)(b)(i)(i).--Section 202(x)(3)(B)(i)(I)
of the Social Security Act (42 U.S.C. 402(x)(3)(B)(i)(I)) is
amended by--
(A) inserting ``first, middle, and last'' before
``names'';
(B) striking the comma after the words ``social
security account numbers'' and inserting ``or taxpayer
identification numbers, prison assigned inmate numbers,
last known addresses,'';
(C) inserting ``dates of release or anticipated
dates of release, dates of work release,'' before ``and,
to the extent available''; and
(D) by inserting ``and clause (iv) of this
subparagraph'' after ``paragraph (1)''.
(2) Section 1611(e)(1)(i)(i)(i).--Section
1611(e)(1)(I)(i)(I) of the Social Security Act (42 U.S.C.
1382(e)(1)(I)(i)(I)) is amended by--
(A) inserting ``first, middle, and last'' before
``names'';
(B) striking the comma after the words ``social
security account numbers'' and inserting ``or taxpayer
identification numbers, prison assigned inmate numbers,
last known addresses,'';

[[Page 1180]]

(C) inserting ``dates of release or anticipated
dates of release, dates of work release,'' before ``and,
to the extent available''; and
(D) by inserting ``and clause (iv) of this
subparagraph'' after ``this paragraph''.

(b) Authority of Secretary of the Treasury to Access PUPS.--
(1) Section 202(x)(3)(b).--Section 202(x)(3)(B) of the
Social Security Act (42 U.S.C. 402(x)(3)(B)) is amended--
(A) in clause (iv), by inserting before the period
the following: ``, for statistical and research
activities conducted by Federal and State agencies, and
to the Secretary of the Treasury for the purposes of tax
administration, debt collection, and identifying,
preventing, and recovering improper payments under
federally funded programs''; and
(B) by adding at the end the following:

``(v)(I) The Commissioner may disclose information received pursuant
to this paragraph to any officer, employee, agent, or contractor of the
Department of the Treasury whose official duties require such
information to assist in the identification, prevention, and recovery of
improper payments or in the collection of delinquent debts owed to the
United States, including payments certified by the head of an executive,
judicial, or legislative paying agency, and payments made to individuals
whose eligibility, or continuing eligibility, to participate in a
Federal program (including those administered by a State or political
subdivision thereof) is being reviewed.
``(II) Notwithstanding the provisions of section 552a of title 5,
United States Code, or any other provision of Federal or State law, the
Secretary of the Treasury may compare information disclosed under
subclause (I) with any other personally identifiable information derived
from a Federal system of records or similar records maintained by a
Federal contractor, a Federal grantee, or an entity administering a
Federal program or activity, and may redisclose such comparison of
information to any paying or administering agency and to the head of the
Federal Bureau of Prisons and the head of any State agency charged with
the administration of prisons with respect to inmates whom the Secretary
of the Treasury has determined may have been issued, or facilitated in
the issuance of, an improper payment.
``(III) The comparison of information disclosed under subclause (I)
shall not be considered a matching program for purposes of section 552a
of title 5, United States Code.''.
(2) Section 1611(e)(1)(i).--Section 1611(e)(1)(I) of the
Social Security Act (42 U.S.C. 1382(e)(1)(I)) is amended--
(A) in clause (iii), by inserting before the period
the following: ``, for statistical and research
activities conducted by Federal and State agencies, and
to the Secretary of the Treasury for the purposes of tax
administration, debt collection, and identifying,
preventing, and recovering improper payments under
federally funded programs''; and
(B) by adding at the end the following:

``(v)(I) The Commissioner may disclose information received pursuant
to this paragraph to any officer, employee, agent, or contractor of the
Department of the Treasury whose official duties require such
information to assist in the identification, prevention, and recovery of
improper payments or in the collection of delinquent

[[Page 1181]]

debts owed to the United States, including payments certified by the
head of an executive, judicial, or legislative paying agency, and
payments made to individuals whose eligibility, or continuing
eligibility, to participate in a Federal program (including those
administered by a State or political subdivision thereof) is being
reviewed.
``(II) Notwithstanding the provisions of section 552a of title 5,
United States Code, or any other provision of Federal or State law, the
Secretary of the Treasury may compare information disclosed under
subclause (I) with any other personally identifiable information derived
from a Federal system of records or similar records maintained by a
Federal contractor, a Federal grantee, or an entity administering a
Federal program or activity and may redisclose such comparison of
information to any paying or administering agency and to the head of the
Federal Bureau of Prisons and the head of any State agency charged with
the administration of prisons with respect to inmates whom the Secretary
of the Treasury has determined may have been issued, or facilitated in
the issuance of, an improper payment.
``(III) The comparison of information disclosed under subclause (I)
shall not be considered a matching program for purposes of section 552a
of title 5, United States Code.''.
(c) Conforming Amendment to the Do Not Pay Initiative.--Section
5(a)(2) of the Improper Payments Elimination and Recovery Improvement
Act of 2012 (31 U.S.C. 3321 note) is amended by adding at the end the
following:
``(F) Information regarding incarcerated individuals
maintained by the Commissioner of Social Security under
sections 202(x) and 1611(e) of the Social Security
Act.''.

TITLE III--NATURAL RESOURCES

SEC. 301. ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER
PETROLEUM RESOURCES.

(a) Repeal.--Subtitle J of title IX of the Energy Policy Act of 2005
(42 U.S.C. 16371 et seq.) is repealed.
(b) Rescission.--Any unobligated funds appropriated for carrying out
the subtitle repealed by subsection (a) are rescinded.

SEC. 302. AMENDMENT TO THE MINERAL LEASING ACT.

Section 35(b) of the Mineral Leasing Act (30 U.S.C. 191(b)) is
amended to read as follows--
``(b) <>  Deduction for Administrative
Costs.--In determining the amount of payments to the States under this
section, beginning in fiscal year 2014 and for each year thereafter, the
amount of such payments shall be reduced by 2 percent for any
administrative or other costs incurred by the United States in carrying
out the program authorized by this Act, and the amount of such reduction
shall be deposited to miscellaneous receipts of the Treasury.''.

SEC. <> 303. APPROVAL OF AGREEMENT WITH
MEXICO.

The Agreement between the United States of America and the United
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the
Gulf of Mexico, signed at Los Cabos, February 20, 2012, is hereby
approved.

[[Page 1182]]

SEC. 304. AMENDMENT TO THE OUTER CONTINENTAL SHELF LANDS ACT.

The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is
amended by adding at the end the following:

``SEC. 32. <>  TRANSBOUNDARY HYDROCARBON
AGREEMENTS.

``(a) Authorization.--After the date of enactment of the Bipartisan
Budget Act of 2013, the Secretary may implement the terms of any
transboundary hydrocarbon agreement for the management of transboundary
hydrocarbon reservoirs entered into by the President and approved by
Congress. In implementing such an agreement, the Secretary shall protect
the interests of the United States to promote domestic job creation and
ensure the expeditious and orderly development and conservation of
domestic mineral resources in accordance with all applicable United
States laws governing the exploration, development, and production of
hydrocarbon resources on the Outer Continental Shelf.
``(b) Submission to Congress.--
``(1) <>  In general.--No later than 180
days after all parties to a transboundary hydrocarbon agreement
have agreed to its terms, a transboundary hydrocarbon agreement
that does not constitute a treaty in the judgment of the
President shall be submitted by the Secretary to--
``(A) the Speaker of the House of Representatives;
``(B) the Majority Leader of the Senate;
``(C) the Chair of the Committee on Natural
Resources of the House of Representatives; and
``(D) the Chair of the Committee on Energy and
Natural Resources of the Senate.
``(2) Contents of submission.--The submission shall
include--
``(A) any amendments to this Act or other Federal
law necessary to implement the agreement;
``(B) an analysis of the economic impacts such
agreement and any amendments necessitated by the
agreement will have on domestic exploration,
development, and production of hydrocarbon resources on
the Outer Continental Shelf; and
``(C) a detailed description of any regulations
expected to be issued by the Secretary to implement the
agreement.

``(c) Implementation of Specific Transboundary Agreement With
Mexico.--The Secretary may take actions as necessary to implement the
terms of the Agreement between the United States of America and the
United Mexican States Concerning Transboundary Hydrocarbon Reservoirs in
the Gulf of Mexico, signed at Los Cabos, February 20, 2012, including--
``(1) approving unitization agreements and related
arrangements for the exploration, development, or production of
oil and natural gas from transboundary reservoirs or geological
structures;
``(2) making available, in the limited manner necessary
under the agreement and subject to the protections of
confidentiality provided by the agreement, information relating
to the exploration, development, and production of oil and
natural gas from a transboundary reservoir or geological
structure that may be considered confidential, privileged, or
proprietary information under law;

[[Page 1183]]

``(3) taking actions consistent with an expert determination
under the agreement; and
``(4) ensuring only appropriate inspection staff at the
Bureau of Safety and Environmental Enforcement or other Federal
agency personnel designated by the Bureau, the operator, or the
lessee have authority to stop work on any installation or other
device or vessel permanently or temporarily attached to the
seabed of the United States that may be erected thereon for the
purpose of resource exploration, development or production
activities as approved by the Secretary.

``(d) Savings Provisions.--Nothing in this section shall be
construed--
``(1) to authorize the Secretary to participate in any
negotiations, conferences, or consultations with Cuba regarding
exploration, development, or production of hydrocarbon resources
in the Gulf of Mexico along the United States maritime border
with Cuba or the area known by the Department of the Interior as
the `Eastern Gap'; or
``(2) as affecting the sovereign rights and the jurisdiction
that the United States has under international law over the
Outer Continental Shelf that appertains to it.''.

SEC. 305. FEDERAL OIL AND GAS ROYALTY PREPAYMENT CAP.

(a) In General.--Section 111(i) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1721(i)) is amended by striking ``(i)
Upon'' and all that follows through ``For purposes'' and inserting the
following:
``(i) Limitation on Interest.--
``(1) In general.--Interest shall not be paid on any
excessive overpayment.
``(2) Excessive overpayment defined.--For purposes''.

(b) <>  Effective Date.--The amendment made
by subsection (a) shall take effect on July 1, 2014.

SEC. 306. STRATEGIC PETROLEUM RESERVE.

(a) Repeal of Authority To Acquire In-Kind Royalty Crude Oil.--
Section 160(a) of the Energy Policy and Conservation Act (42 U.S.C.
6240(a)) is amended to read as follows:
``(a) The Secretary may acquire, place in storage, transport, or
exchange petroleum products acquired by purchase or exchange.''.
(b) Rescission of Funds.--Any unobligated balances available in the
SPR Petroleum Account in the Treasury on the date of enactment of this
section are permanently rescinded.

TITLE IV--FEDERAL CIVILIAN AND MILITARY RETIREMENT

SEC. 401. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES RETIREMENT
SYSTEM FOR NEW EMPLOYEES.

(a) Definition.--
(1) In general.--Section 8401 of title 5, United States
Code, is amended--
(A) in paragraph (36), by striking ``and'' at the
end;
(B) in paragraph (37), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:

[[Page 1184]]

``(38) the term `further revised annuity employee' means any
individual who--
``(A) on December 31, 2013--
``(i) is not an employee or Member covered
under this chapter;
``(ii) is not performing civilian service
which is creditable service under section 8411;
and
``(iii) has less than 5 years of creditable
civilian service under section 8411; and
``(B) after December 31, 2013, becomes employed as
an employee or becomes a Member covered under this
chapter performing service which is creditable service
under section 8411.''.
(2) Technical amendment.--Section 8401(37)(B) of title 5,
United States Code, is amended by inserting ``and before January
1, 2014,'' after ``after December 31, 2012,''.

(b) Increase in Individual Contributions.--Section 8422(a)(3) of
title 5, United States Code, is amended--
(1) in subparagraph (A), by inserting ``or further revised
annuity employees'' after ``revised annuity employees''; and
(2) by adding at the end the following:

``(C) The applicable percentage under this paragraph for civilian
service by further revised annuity employees shall be as follows:


``Employee.............................  10.6......................  After December 31, 2013.
Congressional employee.................  10.6......................  After December 31, 2013.
Member.................................  10.6......................  After December 31, 2013.
Law enforcement officer, firefighter,    11.1......................  After December 31, 2013.
member of the Capitol Police, member
of the Supreme Court Police, or air
traffic controller....................
Nuclear materials courier..............  11.1......................  After December 31, 2013.
Customs and border protection officer..  11.1......................  After December 31, 2013.''.


(c) Government Contributions.--Section 8423(a)(2) of title 5, United
States Code, is amended--
(1) by striking ``(2)'' and inserting ``(2)(A)''; and
(2) by adding at the end the following:

``(B)(i) <>  Subject to clauses
(ii) and (iii), for purposes of any period in any year beginning after
December 31, 2013, the normal-cost percentage under this subsection
shall be determined and applied as if section 401(b) of the Bipartisan
Budget Act of 2013 had not been enacted.

``(ii) Any contributions under this subsection in excess of the
amounts which (but for clause (i)) would otherwise have been payable
shall be applied toward reducing the unfunded liability of the Civil
Service Retirement System.
``(iii) After the unfunded liability of the Civil Service Retirement
System has been eliminated, as determined by the Office, Government
contributions under this subsection shall be determined and made
disregarding this subparagraph.

[[Page 1185]]

``(iv) The preceding provisions of this subparagraph shall be
disregarded for purposes of determining the contributions payable by the
United States Postal Service and the Postal Regulatory Commission.''.
(d) Annuity Calculation.--Section 8415(d) of title 5, United States
Code, is amended by inserting ``or a further revised annuity employee''
after ``a revised annuity employee''.

SEC. 402. FOREIGN SERVICE PENSION SYSTEM.

(a) Definition.--
(1) In general.--Section 852 of the Foreign Service Act of
1980 (22 U.S.C. 4071a) is amended--
(A) by redesignating paragraphs (8), (9), and (10)
as paragraphs (9), (10), and (11), respectively; and
(B) by inserting after paragraph (7) the following:
``(8) the term `further revised annuity participant' means
any individual who--
``(A) on December 31, 2013--
``(i) is not a participant;
``(ii) is not performing service which is
creditable service under section 854; and
``(iii) has less than 5 years creditable
service under section 854; and
``(B) after December 31, 2013, becomes a participant
performing service which is creditable service under
section 854;''.
(2) Technical amendment.--Section 852(7)(B) of the Foreign
Service Act of 1980 (22 U.S.C. 4071a(7)(B)) is amended by
inserting ``and before January 1, 2014,'' after ``after December
31, 2012,''.

(b) Deductions and Withholdings From Pay.--Section 856(a)(2) of the
Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2)) is amended--
(1) in subparagraph (A), by inserting ``or a further revised
annuity participant'' after ``revised annuity participant''; and
(2) by adding at the end the following:

``(C) The applicable percentage for a further revised annuity
participant shall be as follows:


``11.15..........................  After December 31, 2013.''.


(c) Government Contributions.--Section 857 of the Foreign Service
Act of 1980 (22 U.S.C. 4071f) is amended by adding at the end the
following:
``(c)(1) <>  Subject to
paragraphs (2) and (3), for purposes of any period in any year beginning
after December 31, 2013, the normal-cost percentage under this section
shall be determined and applied as if section 402(b) of the Bipartisan
Budget Act of 2013 had not been enacted.

``(2) Any contributions under this section in excess of the amounts
which (but for paragraph (1)) would otherwise have been payable shall be
applied toward reducing the unfunded liability of the Foreign Service
Retirement and Disability System.
``(3) After the unfunded liability of the Foreign Service Retirement
and Disability System has been eliminated, as determined by the
Secretary of State, Government contributions under this section shall be
determined and made disregarding this subsection.''.

[[Page 1186]]

SEC. 403. ANNUAL ADJUSTMENT OF RETIRED PAY AND RETAINER PAY AMOUNTS FOR
RETIRED MEMBERS OF THE ARMED FORCES UNDER AGE 62.

(a) CPI Minus One Percent.--Section 1401a(b) of title 10, United
States Code, is amended--
(1) in paragraph (1), by striking ``paragraphs (2) and (3)''
and inserting ``paragraph (2), (3), or (4)'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (3) the following new
paragraph (4):
``(4) Reduced percentage for retired members under age 62.--
``(A) <>  In general.--
Effective on December 1 of each year, the retired pay of
each member and former member under 62 years of age
entitled to that pay shall be adjusted in accordance
with this paragraph instead of paragraph (2) or (3).
``(B) CPI minus one.--If the percent determined
under paragraph (2) is greater than 1 percent, the
Secretary shall increase the retired pay of each member
and former member by the difference between--
``(i) the percent determined under paragraph
(2); and
``(ii) 1 percent.
``(C) No negative adjustment.--If the percent
determined under paragraph (2) is equal to or less than
1 percent, the Secretary shall not increase the retired
pay of members and former members under this paragraph.
``(D) Revised adjustment upon reaching age 62.--When
a member or former member whose retired pay has been
subject to adjustment under this paragraph becomes 62
years of age, the Secretary of Defense shall recompute
the retired pay of the member or former member, to be
effective on the date of the next adjustment of retired
pay under this subsection, so as to be the amount equal
to the amount of retired pay to which the member or
former member would be entitled on that date if
increases in the retired pay of the member or former
member had been computed as provided in paragraph (2) or
as specified in section 1410 of this title, as
applicable, rather than this paragraph.
``(E) Inapplicability of catch-up rule.--Paragraph
(5) shall not apply in the case of adjustments made, or
not made, as a result of application of this
paragraph.''.

(b) Restoral of Full Retirement Amount at Age 62.--Section 1410(1)
of title 10, United States Code, is amended by striking ``paragraph
(3)'' and inserting ``paragraph (3) or (4)''.
(c) <>  Effective Date.--The amendments
made by subsections (a) and (b) shall take effect on December 1, 2015.

TITLE V--HIGHER EDUCATION

SEC. 501. <>  DEFAULT
REDUCTION PROGRAM.

Effective July 1, 2014, section 428F(a)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1078-6(a)(1)) is amended--

[[Page 1187]]

(1) in subparagraph (A), by striking clause (ii) and
inserting the following:
``(ii) beginning July 1, 2014, assign the loan
to the Secretary if the guaranty agency has been
unable to sell the loan under clause (i).''; and
(2) in subparagraph (D), by striking clause (i) and
inserting the following:
``(i) the guaranty agency--
``(I) shall, in the case of a sale
made on or after July 1, 2014, repay the
Secretary 100 percent of the amount of
the principal balance outstanding at the
time of such sale, multiplied by the
reinsurance percentage in effect when
payment under the guaranty agreement was
made with respect to the loan; and
``(II) may, in the case of a sale
made on or after July 1, 2014, in order
to defray collection costs--
``(aa) charge to the
borrower an amount not to exceed
16 percent of the outstanding
principal and interest at the
time of the loan sale; and
``(bb) retain such amount
from the proceeds of the loan
sale; and''.

SEC. 502. ELIMINATION OF NONPROFIT SERVICING CONTRACTS.

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is
amended--
(1) in section 456 (20 U.S.C. 1087f)--
(A) in subsection (a), by striking paragraph (4);
and
(B) by striking subsection (c); and
(2) in section 458(a) (20 U.S.C. 1087h(a)), by striking
paragraph (2).

TITLE VI--TRANSPORTATION

SEC. 601. AVIATION SECURITY SERVICE FEES.

(a) Air Carrier Fees.--
(1) Repeal.--Section 44940(a)(2) of title 49, United States
Code, is repealed.
(2) Conforming amendment.--Section 44940(d)(1) of such title
is amended by striking ``, and may impose a fee under subsection
(a)(2),''.
(3) <>  Effective date.--The
repeal made by paragraph (1) and the amendment made by paragraph
(2) shall each take effect on October 1, 2014.

(b) Restructuring of Passenger Fee.--Section 44940(c) of such title
is amended to read as follows:
``(c) Limitation on Fee.--Fees imposed under subsection (a)(1) shall
be $5.60 per one-way trip in air transportation or intrastate air
transportation that originates at an airport in the United States.''.
(c) Deposit of Receipts in General Fund.--Section 44940(i) of such
title is amended to read as follows:
``(i) Deposit of Receipts in General Fund.--

[[Page 1188]]

``(1) <>  In general.--Beginning in
fiscal year 2014, out of fees received in a fiscal year under
subsection (a)(1), after amounts are made available in the
fiscal year under section 44923(h), the next funds derived from
such fees in the fiscal year, in the amount specified for the
fiscal year in paragraph (4), shall be credited as offsetting
receipts and deposited in the general fund of the Treasury.
``(2) Fee levels.--The Secretary of Homeland Security shall
impose the fee authorized by subsection (a)(1) so as to collect
in a fiscal year at least the amount specified in paragraph (4)
for the fiscal year for making deposits under paragraph (1).
``(3) Relationship to other provisions.--Subsections (b) and
(f) shall not apply to amounts to be used for making deposits
under this subsection.
``(4) Fiscal year amounts.--For purposes of paragraphs (1)
and (2), the fiscal year amounts are as follows:
``(A) $390,000,000 for fiscal year 2014.
``(B) $1,190,000,000 for fiscal year 2015.
``(C) $1,250,000,000 for fiscal year 2016.
``(D) $1,280,000,000 for fiscal year 2017.
``(E) $1,320,000,000 for fiscal year 2018.
``(F) $1,360,000,000 for fiscal year 2019.
``(G) $1,400,000,000 for fiscal year 2020.
``(H) $1,440,000,000 for fiscal year 2021.
``(I) $1,480,000,000 for fiscal year 2022.
``(J) $1,520,000,000 for fiscal year 2023.''.

(d) <>  Imposition of Fee Increase.--The
Secretary of Homeland Security shall implement the fee increase
authorized by the amendment made by subsection (b)--
(1) <>  beginning on July 1, 2014;
and
(2) <>
through the publication of notice of such fee in the Federal
Register, notwithstanding section 9701 of title 31, United
States Code, and the procedural requirements of section 553 of
title 5, United States Code.

(e) <>  Continued Availability of Existing
Balances.--The amendments made by this section shall not affect the
availability of funds made available under section 44940(i) of title 49,
United States Code, before the date of enactment of this Act.

SEC. 602. TRANSPORTATION COST REIMBURSEMENT.

(a) Repeal.--Sections 55316 and 55317 of chapter 553 of title 46,
United States Code, are repealed.
(b) Table of Sections Amendment.--The table of sections at the
beginning of chapter 553 of title 46, United States Code, is amended by
striking the items relating to section 55316 and 55317.

SEC. 603. STERILE AREAS AT AIRPORTS.

Section 44903 of title 49, United States Code, is amended by adding
at the end the following:
``(n) Passenger Exit Points From Sterile Area.--
``(1) In general.--The Secretary of Homeland Security shall
ensure that the Transportation Security Administration is
responsible for monitoring passenger exit points from the
sterile area of airports at which the Transportation Security
Administration provided such monitoring as of December 1, 2013.

[[Page 1189]]

``(2) Sterile area defined.--In this section, the term
`sterile area' has the meaning given that term in section 1540.5
of title 49, Code of Federal Regulations (or any corresponding
similar regulation or ruling).''.

TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. EXTENSION OF CUSTOMS USER FEES.

Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended--
(1) in subparagraph (A), by striking ``October 22, 2021''
and inserting ``September 30, 2023''; and
(2) in subparagraph (B)(i), by striking ``October 29, 2021''
and inserting ``September 30, 2023''.

SEC. 702. LIMITATION ON ALLOWABLE GOVERNMENT CONTRACTOR COMPENSATION
COSTS.

(a) <>  Limitation.--
(1) Civilian contracts.--Section 4304(a)(16) of title 41,
United States Code, is amended to read as follows:
``(16) Costs of compensation of contractor and subcontractor
employees for a fiscal year, regardless of the contract funding
source, to the extent that such compensation exceeds $487,000
per year, adjusted annually to reflect the change in the
Employment Cost Index for all workers, as calculated by the
Bureau of Labor Statistics, except that the head of an executive
agency may establish one or more narrowly targeted exceptions
for scientists, engineers, or other specialists upon a
determination that such exceptions are needed to ensure that the
executive agency has continued access to needed skills and
capabilities.''.
(2) Defense contracts.--Section 2324(e)(1)(P) of title 10,
United States Code, is amended to read as follows:
``(P) Costs of compensation of contractor and
subcontractor employees for a fiscal year, regardless of
the contract funding source, to the extent that such
compensation exceeds $487,000 per year, adjusted
annually to reflect the change in the Employment Cost
Index for all workers, as calculated by the Bureau of
Labor Statistics, except that the head of an executive
agency may establish one or more narrowly targeted
exceptions for scientists, engineers, or other
specialists upon a determination that such exceptions
are needed to ensure that the executive agency has
continued access to needed skills and capabilities.''.

(b) Conforming Amendments.--
(1) Repeal.--Section 1127 of title 41, United States Code,
is hereby repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 11 of title 41, United States Code, is
amended by striking the item relating to section 1127.

(c) <>  Applicability.--This
section and the amendments made by this section shall apply only with
respect to costs of compensation incurred under contracts entered into
on or after the date that is 180 days after the date of the enactment of
this Act.

(d) <>  Reports.--

[[Page 1190]]

(1) In general.--Not later than 60 days after the end of
each fiscal year, the Director of the Office of Management and
Budget shall submit a report on contractor compensation to--
(A) the Committee on Armed Services of the Senate;
(B) the Committee on Armed Services of the House of
Representatives;
(C) the Committee on Homeland Security and
Governmental Affairs of the Senate;
(D) the Committee on Oversight and Government Reform
of the House of Representatives;
(E) the Committee on Appropriations of the Senate;
and
(F) the Committee on Appropriations of the House of
Representatives.
(2) Elements.--The report required under paragraph (1) shall
include--
(A) the total number of contractor employees, by
executive agency, in the narrowly targeted exception
positions described under subsection (a) during the
preceding fiscal year;
(B) the taxpayer-funded compensation amounts
received by each contractor employee in a narrowly
targeted exception position during such fiscal year; and
(C) the duties and services performed by contractor
employees in the narrowly targeted exception positions
during such fiscal year.

(e) <>  Review.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of Defense
and the Director of the Office of Management and Budget shall report to
Congress on alternative benchmarks and industry standards for
compensation, including whether any such benchmarks or standards would
provide a more appropriate measure of allowable compensation for the
purposes of section 2324(e)(1)(P) of title 10, United States Code, and
section 4304(a)(16) of title 41, United States Code, as amended by this
Act.

SEC. 703. PENSION BENEFIT GUARANTY CORPORATION PREMIUM RATE INCREASES.

(a) Flat-Rate Premium Increases.--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--
(1) in subclause (II), by striking ``and'' at the end;
(2) in subclause (III), by inserting ``and before January 1,
2015,'' after ``December 31, 2013''; and
(3) <>  by inserting after subclause
(III) the following:
``(IV) for plan years beginning after December 31,
2014, and before January 1, 2016, $57; and
``(V) for plan years beginning after December 31,
2015, and before January 1, 2017, $64.''.

(b) Flat-Rate Premium Rate Indexed to Wages.--
(1) In general.--Section 4006(a)(3) of such Act (29 U.S.C.
1306(a)(3)) is amended--
(A) by redesignating subparagraphs (G) through (J)
as subparagraphs (H) through (K), respectively; and
(B) by inserting after subparagraph (F) the
following:

[[Page 1191]]

``(G) For each plan year beginning in a calendar year after 2016,
there shall be substituted for the premium rate specified in clause (i)
of subparagraph (A) an amount equal to the greater of--
``(i) the product derived by multiplying the premium rate
specified in clause (i) of subparagraph (A) by the ratio of--
``(I) the national average wage index (as defined in
section 209(k)(1) of the Social Security Act) for the
first of the 2 calendar years preceding the calendar
year in which such plan year begins, to
``(II) the national average wage index (as so
defined) for 2014; and
``(ii) the premium rate in effect under clause (i) of
subparagraph (A) for plan years beginning in the preceding
calendar year.

If the amount determined under this subparagraph is not a multiple of
$1, such product shall be rounded to the nearest multiple of $1.''.
(2) Conforming amendments.--Section 4006(a)(3)(F) of such
Act (29 U.S.C. 1306(a)(3)(F)) is amended--
(A) in the matter before clause (i), by inserting
``and before 2013'' after ``after 2006''; and
(B) in the flush text following clause (ii), by
striking the second sentence.

(c) 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 clause (i), by striking ``and'' at the end;
(B) in clause (ii), by striking ``$5.'' and
inserting ``$10; and''; and
(C) by adding at the end the following:
``(iii) in the case of plan years beginning in
calendar year 2016, by $5.''.
(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 (ii), by striking ``and'' at the
end;
(ii) in clause (iii), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(iv) for plan years beginning after calendar
year 2016, the amount in effect for plan years
beginning in 2016 (determined after application of
subparagraph (C)).''; and
(B) in subparagraph (D)--
(i) in clause (ii), by striking ``and'' at the
end;
(ii) in clause (iii), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(iv) 2014, in the case of plan years
beginning after calendar year 2016.''.

(d) Increase in Variable Rate Premium Cap.--
(1) In general.--Section 4006(a)(3)(E)(i) of such Act (29
U.S.C. 1306(a)(3)(E)(i)) is amended--
(A) in subclause (I), by striking ``and'' at the
end;
(B) in subclause (II)--

[[Page 1192]]

(i) by inserting ``and before 2016'' after
``2012''; and
(ii) by striking the period at the end and
inserting ``and''; and
(C) by adding at the end the following:
``(III) <>  in the case of plan years
beginning in a calendar year after 2015, shall not exceed
$500.''.
(2) Index to wages.--Section 4006(a)(3) of such Act (29
U.S.C. 1306(a)(3)) is amended--
(A) in subparagraph (K) (as redesignated by
subsection (b)(1)(A)), by inserting ``and before 2016''
after ``2013''; and
(B) by inserting at the end the following:

``(L) <>  For each plan year beginning in a
calendar year after 2016, there shall be substituted for the dollar
amount specified in subclause (III) of subparagraph (E)(i) an amount
equal to the greater of--
``(i) the product derived by multiplying such dollar amount
by the ratio of--
``(I) the national average wage index (as defined in
section 209(k)(1) of the Social Security Act) for the
first of the 2 calendar years preceding the calendar
year in which such plan year begins, to
``(II) the national average wage index (as so
defined) for 2014; and
``(ii) such dollar amount for plan years beginning in the
preceding calendar year.

If the amount determined under this subparagraph is not a multiple of
$1, such product shall be rounded to the nearest multiple of $1.''.
(e) Effective Date.--The amendments made by this section shall apply
to plan years beginning after December 31, 2013.

SEC. 704. <>  CANCELLATION OF UNOBLIGATED
BALANCES.

(a) Department of Justice Assets Forfeiture Fund.--Effective on the
date of enactment of this Act, of the unobligated balances available
under the Department of Justice Assets Forfeiture Fund, $693,000,000 are
permanently cancelled.
(b) Treasury Forfeiture Fund.--Effective on the date of enactment of
this Act, of the unobligated balances available under the Department of
the Treasury Forfeiture Fund, $867,000,000, are permanently cancelled.

SEC. 705. CONSERVATION PLANNING TECHNICAL ASSISTANCE USER FEES.

(a) User Fees Authorized.--Section 3 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590c) is amended--
(1) by striking ``require--'' and inserting ``require the
following:'';
(2) in paragraph (1), by striking the semicolon at the end
and inserting a period;
(3) in paragraph (2), by striking ``; and'' at the end and
inserting a period; and
(4) by adding at the end the following:

``(4)(A) <>  The payment of user fees for
conservation planning technical assistance if the Secretary determines
that the fees, subject to subparagraph (B), are--
``(i) reasonable and appropriate;

[[Page 1193]]

``(ii) assessed for conservation planning technical
assistance resulting in the development of a conservation plan;
and
``(iii) assessed based on the size of the land or the
complexity of the resource issues involved.

``(B) Fees under subparagraph (A) may not exceed $150 per
conservation plan for which technical assistance is provided.
``(C) <>  The Secretary may waive fees otherwise
required under subparagraph (A) in the case of conservation planning
technical assistance provided--
``(i) to beginning farmers or ranchers (as defined in
section 343(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a));
``(ii) to limited resource farmers or ranchers (as defined
by the Secretary);
``(iii) to socially disadvantaged farmers or ranchers (as
defined in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e));
``(iv) to qualify for an exemption from ineligibility under
section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812);
or
``(v) to comply with Federal, State, or local regulatory
requirements.''.

(b) Conservation Technical Assistance Fund.--Section 6 of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590f) is amended--
(1) by striking ``sec. 6.'' and all that follows through
``There are hereby authorized'' and inserting the following:

``SEC. 6. AUTHORIZATION OF APPROPRIATIONS AND CONSERVATION TECHNICAL
ASSISTANCE FUNDS.

``(a) Authorization of Appropriations.--There is authorized''; and
(2) by adding at the end the following:

``(b) Conservation Technical Assistance Fund.--
``(1) In general.--There is established in the Treasury of
the United States a fund to be known as the `Conservation
Technical Assistance Fund' (referred to in this subsection as
the `Fund'), to be administered by the Secretary of Agriculture.
``(2) Deposits.--An amount equal to the amounts collected as
fees under section 3(4) and late payments, interest, and such
other amounts as are authorized to be collected pursuant to
section 3717 of title 31, United States Code, shall be deposited
in the Fund.
``(3) Availability.--Amounts in the Fund shall--
``(A) only be available to the extent and in the
amount provided in advance in appropriations Acts;
``(B) be used for the costs of carrying out this
Act; and
``(C) remain available until expended.''.

SEC. 706. SELF PLUS ONE COVERAGE.

(a) Election of Coverage.--Section 8905 of title 5, United States
Code, is amended--
(1) by striking subsection (a) and inserting the following:

``(a) An employee may enroll in an approved health benefits plan
described in section 8903 or 8903a--
``(1) as an individual;
``(2) for self plus one; or

[[Page 1194]]

``(3) for self and family.'';
(2) in subsection (c)--
(A) in paragraph (1), in the matter following
subparagraph (B), by inserting ``for self plus one or''
before ``self and family as provided in paragraph (2) of
this subsection''; and
(B) in paragraph (2)--
(i) in the matter preceding subparagraph (A),
by inserting ``for self plus one or'' before ``for
self and family''; and
(ii) in subparagraph (B), by inserting ``(or,
in the case of self plus one coverage, not more
than 1 such child)'' after ``adopted children'';
(3) in subsection (e), by striking ``or each spouse may
enroll as an individual'' and inserting ``or for a self plus one
enrollment that covers the spouse, or each spouse may enroll as
an individual or for a self plus one enrollment that does not
cover the other spouse or a child who is covered under the
enrollment of the other spouse''; and
(4) in subsection (h)--
(A) by striking ``self and family enrollment'' each
place it appears and inserting ``self plus one or self
and family enrollment, as necessary to provide health
insurance coverage for each child who is covered under
the order,'';
(B) by striking ``a child'' each place it appears
and inserting ``1 or more children'';
(C) by striking ``the child resides'' each place it
appears and inserting ``the child or children reside'';
(D) in paragraph (1), by striking ``self and family
coverage'' each place it appears and inserting ``self
plus one or self and family coverage, as necessary to
provide health insurance coverage for each child who is
covered under the order,''; and
(E) in paragraph (3), by striking ``the child
continues'' and inserting ``the child or children
continue''.

(b) Continued Coverage.--Section 8905a of title 5, United States
Code, is amended--
(1) in subsection (d)(3)(A), by inserting ``for self plus
one or'' before ``for self and family''; and
(2) in subsection (f)(3)(A), by striking ``for self and
family based on such person's separation from service'' and
inserting ``based on such person's separation from service under
a self plus one enrollment that covered the individual or under
a self and family enrollment''.

(c) Contributions.--Section 8906(a)(1) of title 5, United States
Code is amended--
(1) in subparagraph (A), by striking at the end ``and'';
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting after subparagraph (A) the following:
``(B) enrollments under this chapter for self plus one;
and''.

(d) <>  Weighted Average for
First Year.--For the first contract year for which an employee may
enroll for self plus one coverage under chapter 89 of title 5, United
States Code, the Office of Personnel Management shall determine the
weighted average of the subscription charges that will be in effect for
the contract

[[Page 1195]]

year for enrollments for self plus one under such chapter based on an
actuarial analysis.

DIVISION <> B--MEDICARE AND
OTHER HEALTH PROVISIONS

SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.

(a) <>  Short Title.--This division may be
cited as the ``Pathway for SGR Reform Act of 2013''.

(b) Table of Contents.--The table of contents of this division is as
follows:

DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS

Sec. 1001. Short title; table of contents.
Sec. 1002. Findings; purpose statement.

TITLE I--MEDICARE EXTENDERS

Sec. 1101. Physician payment update.
Sec. 1102. Extension of work GPCI floor.
Sec. 1103. Extension of therapy cap exceptions process.
Sec. 1104. Extension of ambulance add-ons.
Sec. 1105. Medicare inpatient hospital payment adjustment for low-volume
hospitals.
Sec. 1106. Medicare-dependent hospital (MDH) program.
Sec. 1107. 1-year extension of authorization for special needs plans.
Sec. 1108. 1-year extension of Medicare reasonable cost contracts.
Sec. 1109. Extension of existing funding for contract with consensus-
based entity.
Sec. 1110. Extension of funding outreach and assistance for low-income
programs.

TITLE II--OTHER HEALTH PROVISIONS

Sec. 1201. Extension of the qualifying individual (QI) program.
Sec. 1202. Temporary extension of transitional medical assistance (TMA).
Sec. 1203. Extension of funding for family-to-family health information
centers.
Sec. 1204. Delay of reductions to Medicaid DSH allotments.
Sec. 1205. Realignment of the Medicare sequester for fiscal year 2023.
Sec. 1206. Payment for inpatient services in long-term care hospitals
(LTCHs).

SEC. 1002. <>  FINDINGS; PURPOSE STATEMENT.

In order to support the provision of quality care for our nation's
seniors, Congress finds it appropriate to reform physician
reimbursements under the Medicare program. SGR reform legislation
provides such an opportunity, but not until next year. In order to
facilitate such reform, Congress finds that the Centers for Medicare &
Medicaid Services should continue to focus its efforts on the following
areas:
(1) Simplify and reduce administrative burden on
physicians.--The application and assessment of measures and
other activities under SGR reform should be facilitated by the
Centers for Medicare and Medicaid Services (CMS) in a way that
accounts for the administrative burden such measurement places
on physicians. Therefore, the Congress encourages CMS to
identify and implement, to the extent practicable, mechanisms to
ensure that the application and assessment of measures be
coordinated across programs.
(2) Timely feedback for physicians.--In order for measure
and assessment programs to encourage the highest quality care
for Medicare seniors, the Congress finds it critical that CMS
provide physicians with feedback on performance in as close to
real time as possible. Such timely feedback will ensure that
physicians can excel under a system of meaningful measurement.

[[Page 1196]]

(3) Encourage development of new models.--There is great
need to test alternatives to Fee-For-Service reimbursement in
the Medicare program. One option is the promotion and adoption
of new models of care for physicians. To date, there has been
significant development and testing of models for primary care.
Congress supports these efforts and encourages them to continue
in the future. Congress also encourages the development and
testing of models of specialty care.

TITLE I--MEDICARE EXTENDERS

SEC. 1101. PHYSICIAN PAYMENT UPDATE.

Section 1848(d) of the Social Security Act (42 U.S.C. 10 1395w-4(d))
is amended by adding at the end the following new paragraph:
``(15) <>  Update for january through
march of 2014.--
``(A) In general.--Subject to paragraphs (7)(B),
(8)(B), (9)(B), (10)(B), (11)(B), (12)(B), (13)(B), and
(14)(B), in lieu of the update to the single conversion
factor established in paragraph (1)(C) that would
otherwise apply for 2014 for the period beginning on
January 1, 2014, and ending on March 31, 2014, the
update to the single conversion factor shall be 0.5
percent.
``(B) No effect on computation of conversion factor
for remaining portion of 2014 and subsequent years.--The
conversion factor under this subsection shall be
computed under paragraph (1)(A) for the period beginning
on April 1, 2014, and ending on December 31, 2014, and
for 2015 and subsequent years as if subparagraph (A) had
never applied.''.

SEC. 1102. EXTENSION OF WORK GPCI FLOOR.

Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 1395w-
4(e)(1)(E)) is amended by striking ``January 1, 2014'' and inserting
``April 1, 2014''.

SEC. 1103. EXTENSION OF THERAPY CAP EXCEPTIONS PROCESS.

Section 1833(g) of the Social Security Act (42 U.S.C. 1395l(g)) is
amended--
(1) in paragraph (5)(A), in the first sentence, by striking
``December 31, 2013'' and inserting ``March 31, 2014''; and
(2) in paragraph (6)(A)--
(A) by striking ``December 31, 2013'' and inserting
``March 31, 2014''; and
(B) by striking ``or 2013'' and inserting ``, 2013,
or the first three months of 2014''.

SEC. 1104. EXTENSION OF AMBULANCE ADD-ONS.

(a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social Security
Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
(1) in the matter preceding clause (i), by striking
``January 1, 2014'' and inserting ``April 1, 2014''; and
(2) in each of clauses (i) and (ii), by striking ``January
1, 2014'' and inserting ``April 1, 2014'' each place it appears.

(b) Super Rural Ground Ambulance.--Section 1834(l)(12)(A) of the
Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended by striking
``January 1, 2014'' and inserting ``April 1, 2014''.

[[Page 1197]]

SEC. 1105. MEDICARE INPATIENT HOSPITAL PAYMENT ADJUSTMENT FOR LOW-VOLUME
HOSPITALS.

Section 1886(d)(12) of the Social Security Act (42 U.S.C.
1395ww(d)(12)) is amended--
(1) in subparagraph (B), in the matter preceding clause (i),
by striking ``fiscal year 2014 and subsequent fiscal years'' and
inserting ``the portion of fiscal year 2014 beginning on April
1, 2014, fiscal year 2015, and subsequent fiscal years'';
(2) in subparagraph (C)(i)--
(A) by inserting ``and the portion of fiscal year
2014 before'' after ``and 2013,'' each place it appears;
and
(B) by inserting ``or portion of fiscal year'' after
``during the fiscal year''; and
(3) in subparagraph (D)--
(A) by inserting ``and the portion of fiscal year
2014 before April 1, 2014,'' after ``and 2013,''; and
(B) by inserting ``or the portion of fiscal year''
after ``in the fiscal year''.

SEC. 1106. MEDICARE-DEPENDENT HOSPITAL (MDH) PROGRAM.

(a) In General.--Section 1886(d)(5)(G) of the Social Security Act
(42 U.S.C. 1395ww(d)(5)(G)) is amended--
(1) in clause (i), by striking ``October 1, 2013'' and
inserting ``April 1, 2014''; and
(2) in clause (ii)(II), by striking ``October 1, 2013'' and
inserting ``April 1, 2014''.

(b) Conforming Amendments.--
(1) Extension of target amount.--Section 1886(b)(3)(D) of
the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is amended--
(A) in the matter preceding clause (i), by striking
``October 1, 2013'' and inserting ``April 1, 2014''; and
(B) in clause (iv), by inserting ``and the portion
of fiscal year 2014 before April 1, 2014'' after
``through fiscal year 2013''.
(2) Permitting hospitals to decline reclassification.--
Section 13501(e)(2) of the Omnibus Budget Reconciliation Act of
1993 (42 U.S.C. 1395ww note) is amended by striking ``through
fiscal year 2013'' and inserting ``through the first 2 quarters
of fiscal year 2014''.

SEC. 1107. 1-YEAR EXTENSION OF AUTHORIZATION FOR SPECIAL NEEDS PLANS.

Section 1859(f)(1) of the Social Security Act (42 U.S.C. 1395w-
28(f)(1)) is amended by striking ``2015'' and inserting ``2016''.

SEC. 1108. 1-YEAR EXTENSION OF MEDICARE REASONABLE COST CONTRACTS.

Section 1876(h)(5)(C)(ii) of the Social Security Act (42 U.S.C.
1395mm(h)(5)(C)(ii)) is amended, in the matter preceding subclause (I),
by striking ``January 1, 2014'' and inserting ``January 1, 2015''.

SEC. 1109. EXTENSION OF EXISTING FUNDING FOR CONTRACT WITH CONSENSUS-
BASED ENTITY.

Section 1890(d) of the Social Security Act (42 U.S.C. 1395aaa(d)) is
amended by adding at the end the following new sentence: ``Amounts
transferred under the preceding sentence shall remain available until
expended.''.

[[Page 1198]]

SEC. 1110. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME
PROGRAMS.

(a) Additional Funding for State Health Insurance Programs.--
Subsection (a)(1)(B) of section 119 of the Medicare Improvements for
Patients and Providers Act of 2008 (42 U.S.C. 1395b-3 note), as amended
by section 3306 of the Patient Protection and Affordable Care Act Public
Law 111-148) and section 610 of the American Taxpayer Relief Act of 2012
(Public Law 112-240), is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (iii) the following new
clause:
``(iv) for the portion of fiscal year 2014
before April 1, 2014, of $3,750,000.''.

(b) Additional Funding for Area Agencies on Aging.--Subsection
(b)(1)(B) of such section 119, as so amended, is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (iii) the following new
clause:
``(iv) for the portion of fiscal year 2014
before April 1, 2014, of $3,750,000.''.

(c) Additional Funding for Aging and Disability Resource Centers.--
Subsection (c)(1)(B) of such section 119, as so amended, is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (iii) the following new
clause:
``(iv) for the portion of fiscal year 2014
before April 1, 2014, of $2,500,000.''.

(d) Additional Funding for Contract With the National Center for
Benefits and Outreach Enrollment.--Subsection (d)(2) of such section
119, as so amended, is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (iii) the following new
clause:
``(iv) for the portion of fiscal year 2014
before April 1, 2014, of $2,500,000.''.

TITLE II--OTHER HEALTH PROVISIONS

SEC. 1201. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``December
2013'' and inserting ``March 2014''.
(b) Extending Total Amount Available for Allocation.--Section
1933(g) of the Social Security Act (42 U.S.C. 1396u-3(g)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (S), by striking ``and'' after
the semicolon;

[[Page 1199]]

(B) in subparagraph (T), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(U) <>  for the period that
begins on January 1, 2014, and ends on March 31, 2014,
the total allocation amount is $200,000,000.''.

SEC. 1202. TEMPORARY EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42
U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended by striking
``December 31, 2013'' and inserting ``March 31, 2014''.

SEC. 1203. EXTENSION OF FUNDING FOR FAMILY-TO-FAMILY HEALTH INFORMATION
CENTERS.

Section 501(c)(1)(A) of the Social Security Act (42 U.S.C.
701(c)(1)(A)) is amended--
(1) in clause (ii), by striking at the end ``and'';
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new clause:
``(iv) $2,500,000 for the portion of fiscal
year 2014 before April 1, 2014.''.

SEC. 1204. DELAY OF REDUCTIONS TO MEDICAID DSH ALLOTMENTS.

(a) In General.--Section 1923(f) of the Social Security Act (42
U.S.C. 1396r-4(f)) is amended--
(1) in paragraph (7)(A)--
(A) in clause (i), by striking ``2014'' and
inserting ``2016''; and
(B) in clause (ii)--
(i) by striking subclauses (I) and (II);
(ii) by redesignating subclauses (III) through
(VII) as subclauses (I) through (V), respectively;
and
(iii) in subclause (I) (as redesignated by
clause (ii)), by striking ``$600,000,000'' and
inserting ``$1,200,000,000''; and
(2) in paragraph (8)--
(A) by redesignating subparagraph (C) as
subparagraph (D);
(B) by inserting after subparagraph (B) the
following new subparagraph:
``(C) Fiscal year 2023.--Only with respect to fiscal
year 2023, the DSH allotment for a State, in lieu of the
amount determined under paragraph (3) for the State for
that year, shall be equal to the DSH allotment for the
State for fiscal year 2022, as determined under
subparagraph (B), increased, subject to subparagraphs
(B) and (C) of paragraph (3), and paragraph (5), by the
percentage change in the consumer price index for all
urban consumers (all items; U.S. city average), for
fiscal year 2022.''; and
(C) in subparagraph (D) (as redesignated by
subparagraph (A)), by striking ``fiscal year 2022'' and
inserting ``fiscal year 2023''.

(b) <>  Effective Date.--The amendments
made by subsection (a) shall be effective as of October 1, 2013.

[[Page 1200]]

SEC. 1205. REALIGNMENT OF THE MEDICARE SEQUESTER FOR FISCAL YEAR 2023.

Paragraph (6) (relating to implementing direct spending reductions,
as redesignated by section 101(d)(2)(C), and as amended by section
101(c), of the Bipartisan Budget Act of 2013) of section 251A of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901a) is amended by adding at the end the following new subparagraph:
``(C) <>  Notwithstanding the 2
percent limit specified in subparagraph (A) for payments for the
Medicare programs specified in section 256(d), the sequestration
order of the President under such subparagraph for fiscal year
2023 shall be applied to such payments so that--
``(i) with respect to the first 6 months in which
such order is effective for such fiscal year, the
payment reduction shall be 2.90 percent; and
``(ii) with respect to the second 6 months in which
such order is so effective for such fiscal year, the
payment reduction shall be 1.11 percent.''.

SEC. 1206. PAYMENT FOR INPATIENT SERVICES IN LONG-TERM CARE HOSPITALS
(LTCHS).

(a) Establishment of Criteria for Application of Site Neutral
Payment.--
(1) In general.--Section 1886(m) of the Social Security Act
(42 U.S.C. 1395ww(m)) is amended by adding at the end the
following:
``(6) Application of site neutral ipps payment rate in
certain cases.--
``(A) General application of site neutral ipps
payment amount for discharges failing to meet applicable
criteria.--
``(i) In general.--For a discharge in cost
reporting periods beginning on or after October 1,
2015, except as provided in clause (ii) and
subparagraph (C), payment under this title to a
long-term care hospital for inpatient hospital
services shall be made at the applicable site
neutral payment rate (as defined in subparagraph
(B)).
``(ii) Exception for certain discharges
meeting criteria.--Clause (i) shall not apply (and
payment shall be made to a long-term care hospital
without regard to this paragraph) for a discharge
if--
``(I) the discharge meets the ICU
criterion under clause (iii) or the
ventilator criterion under clause (iv);
and
``(II) the discharge does not have a
principal diagnosis relating to a
psychiatric diagnosis or to
rehabilitation.
``(iii) Intensive care unit (icu) criterion.--
``(I) <>  In
general.--The criterion specified in
this clause (in this paragraph referred
to as the `ICU criterion'), for a
discharge from a long-term care
hospital, is that the stay in the long-
term care hospital ending with such
discharge was immediately preceded by a
discharge from a stay in a subsection
(d) hospital that included at least

[[Page 1201]]

3 days in an intensive care unit (ICU),
as determined by the Secretary.
``(II) Determining icu days.--In
determining intensive care unit days
under subclause (I), the Secretary shall
use data from revenue center codes 020x
or 021x (or such successor codes as the
Secretary may establish).
``(iv) Ventilator criterion.--The criterion
specified in this clause (in this paragraph
referred to as the `ventilator criterion'), for a
discharge from a long-term care hospital, is
that--
``(I) the stay in the long-term care
hospital ending with such discharge was
immediately preceded by a discharge from
a stay in a subsection (d) hospital; and
``(II) the individual discharged was
assigned to a Medicare-Severity-Long-
Term-Care-Diagnosis-Related-Group (MS-
LTC-DRG) based on the receipt of
ventilator services of at least 96
hours.
``(B) Applicable site neutral payment rate
defined.--
``(i) In general.--In this paragraph, the term
`applicable site neutral payment rate' means--
``(I) for discharges in cost
reporting periods beginning during
fiscal year 2016 or fiscal year 2017,
the blended payment rate specified in
clause (iii); and
``(II) for discharges in cost
reporting periods beginning during
fiscal year 2018 or a subsequent fiscal
year, the site neutral payment rate (as
defined in clause (ii)).
``(ii) Site neutral payment rate defined.--In
this paragraph, the term `site neutral payment
rate' means the lower of--
``(I) the IPPS comparable per diem
amount determined under paragraph (d)(4)
of section 412.529 of title 42, Code of
Federal Regulations, including any
applicable outlier payments under
section 412.525 of such title; or
``(II) 100 percent of the estimated
cost for the services involved.
``(iii) Blended payment rate.--The blended
payment rate specified in this clause, for a long-
term care hospital for inpatient hospital services
for a discharge, is comprised of--
``(I) half of the site neutral
payment rate (as defined in clause (ii))
for the discharge; and
``(II) half of the payment rate that
would otherwise be applicable to such
discharge without regard to this
paragraph, as determined by the
Secretary.
``(C) Limiting payment for all hospital discharges
to site neutral payment rate for hospitals failing to
meet applicable ltch discharge thresholds.--
``(i) <>  Notice of ltch
discharge payment percentage.--For cost reporting
periods beginning during or after fiscal year
2016, the Secretary shall inform each

[[Page 1202]]

long-term care hospital of its LTCH discharge
payment percentage (as defined in clause (iv)) for
such period.
``(ii) <>  Limitation.--
For cost reporting periods beginning during or
after fiscal year 2020, if the Secretary
determines for a long-term care hospital that its
LTCH discharge payment percentage for the period
is not at least 50 percent--
``(I) <>  the
Secretary shall inform the hospital of
such fact; and
``(II) subject to clause (iii), for
all discharges in the hospital in each
succeeding cost reporting period, the
payment amount under this subsection
shall be the payment amount that would
apply under subsection (d) for the
discharge if the hospital were a
subsection (d) hospital.
``(iii) Process for reinstatement.--The
Secretary shall establish a process whereby a
long-term care hospital may seek to and have the
provisions of subclause (II) of clause (ii)
discontinued with respect to that hospital.
``(iv) <>  LTCH discharge
payment percentage.--In this subparagraph, the
term `LTCH discharge payment percentage' means,
with respect to a long-term care hospital for a
cost reporting period beginning during or after
fiscal year 2020, the ratio (expressed as a
percentage) of--
``(I) the number of discharges for
such hospital and period for which
payment is not made at the site neutral
payment rate, to
``(II) the total number of
discharges for such hospital and period.
``(D) Inclusion of subsection (d) puerto rico
hospitals.--In this paragraph, any reference in this
paragraph to a subsection (d) hospital shall be deemed
to include a reference to a subsection (d) Puerto Rico
hospital.''.
(2) Medpac study and report on impact of changes.--
(A) Study.--The Medicare Payment Assessment
Commission shall examine the effect of applying section
1886(m)(6) of the Social Security Act, as added by the
amendment made by paragraph (1), on--
(i) the quality of patient care in long-term
care hospitals;
(ii) the use of hospice care and post-acute
care settings;
(iii) different types of long-term care
hospitals; and
(iv) the growth in Medicare spending for
services in such hospitals.
(B) Report.--Not later than June 30, 2019, the
Commission shall submit to Congress a report on such
study. <>  The Commission
shall include in such report such recommendations for
changes in the application of such section as the
Commission deems appropriate as well as the impact of
the application of such section on the need to continue
applying the 25 percent rule described under sections
412.534 and 412.536 of title 42, Code of Federal
Regulations.

[[Page 1203]]

(3) <>  Calculation of length of
stay excluding cases paid on a site neutral basis.--
(A) <>  In general.--For
discharges occurring in cost reporting periods beginning
on or after October 1, 2015, subject to subparagraph
(B), in calculating the length of stay requirement
applicable to a long-term care hospital or satellite
facility under section 1886(d)(1)(B)(iv)(I) of the
Social Security Act (42 U.S.C. 1395ww(d)(1)(B)(iv)(I))
and section 1861(ccc)(2) of such Act (42 U.S.C.
1395x(ccc)(2)), the Secretary of Health and Human
Services shall exclude the following:
(i) Site neutral payment.--Any patient for
whom payment is made at the site neutral payment
rate (as defined in section 1886(m)(6)(B)(ii)) of
such Act, as added by paragraph (1)).
(ii) Medicare advantage.--Any patient for whom
payment is made under a Medicare Advantage plan
under part C of title XVIII of such Act.
(B) Limitation on converting subsection (d)
hospitals.--Subparagraph (A) shall not apply to a
hospital that is classified as of December 10, 2013, as
a subsection (d) hospital (as defined in section
1886(d)(1)(B) of the Social Security Act, 42 U.S.C.
1395ww(d)(1)(B)) for purposes of determining whether the
requirements of section 1886(d)(1)(B)(iv)(I) or
1861(ccc)(2) of such Act (42 U.S.C.
1395ww(d)(1)(B)(iv)(I), 1395x(ccc)(2)) are met.

(b) Extension of Certain LTCH Payment Rules and Moratorium on the
Establishment of Certain Hospitals and Facilities.--
(1) Extension of certain payment rules.--
(A) Payment for hospitals-within-hospitals.--
Paragraph (2)(C) of section 114(c) of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (42 U.S.C.
1395ww note), as amended by sections 3106(a) and
10312(a) of Public Law 111-148, is amended by striking
``5-year period'' and inserting ``9-year period''.
(B) 25 percent patient threshold payment adjustment;
making the grandfathered exemption for long-term care
hospitals permanent.--Section 114(c)(1) of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (42 U.S.C.
1395ww note), as amended by sections 3106(a) and
10312(a) of Public Law 111-148, is amended--
(i) in the matter preceding subparagraph (A),
by striking ``for a 5-year period''; and
(ii) in subparagraph (A), by inserting ``for a
9-year period,'' before ``section 412.536''.
(C) Report assessing continued suspension of 25
percent rule.--Not later than 1 year before the end of
the 9-year period referred to in section 114(c)(1) of
the Medicare, Medicaid, and SCHIP Extension Act of 2007
(42 U.S.C. 1395ww note), as amended by subparagraph (B),
the Secretary of Health and Human Services shall submit
to Congress a report on the need for any further
extensions (or modifications of the extensions) of the
25 percent rule described in sections 412.534 and
412.536 of title 42, Code of Federal Regulations,
particularly taking

[[Page 1204]]

into account the application of section 1886(m)(6) of
the Social Security Act, as added by subsection (a)(1).
(2) Extension of moratorium on establishment of and increase
in beds for ltchs.--Section 114(d) of the Medicare, Medicaid,
and SCHIP Extension Act of 2007 (42 U.S.C. 1395ww note), as
amended by sections 3106(b) and 10312(b) of Public Law 111-148,
is amended--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by inserting after ``5-year period''
the following: ``(and for the period beginning January
1, 2015, and ending September 30, 2017)''; and
(B) by adding at the end the following new
paragraph:
``(6) <>  Limitation on application of
exceptions.--Paragraphs (2) and (3) shall not apply during the
period beginning January 1, 2015, and ending September 30,
2017.''.

(c) Additional Quality Measure.--Section 1886(m)(5)(D) of the Social
Security Act (42 U.S.C. 1395ww(m)(5)(D)) is amended by adding at the end
the following new clause:
``(iv) <>  Additional quality
measures.--Not later than October 1, 2015, the
Secretary shall establish a functional status
quality measure for change in mobility among
inpatients requiring ventilator support.''.

(d) <>  Review of Treatment of Certain
LTCHs.--
(1) Evaluation.--As part of the annual rulemaking for fiscal
year 2015 or fiscal year 2016 to carry out the payment rates
under subsection (d) of section 1886 of the Social Security Act
(42 U.S.C. 1395ww), the Secretary shall evaluate both the
payment rates and regulations governing hospitals which are
classified under subclause (II) of subsection (d)(1)(B)(iv) of
such section.
(2) Adjustment authority.--Based upon such evaluation, the
Secretary may adjust payment rates under subsection (b)(3) of
section 1886 of the Social Security Act (42 U.S.C. 1395ww) for a
hospital so classified (such as payment based upon the TEFRA-
payment model) and may adjust the regulations governing such
hospitals, including applying the regulations governing
hospitals which are classified under clause (I) of subsection
(d)(1)(B) of such section.

Approved December 26, 2013.

LEGISLATIVE HISTORY--H.J. Res. 59:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 159 (2013):
Sept. 20, considered and passed House.
Sept. 24-27, considered and passed Senate, amended.
Sept. 28, House concurred in Senate amendment with
amendments.
Sept. 30, Senate disagreed to House amendments. House
receded from its amendments and concurred in Senate
amendment with another amendment. Senate disagreed to
House amendment.
Dec. 12, House receded and concurred in Senate amendment
with an amendment.
Dec. 15, 17, 18, Senate considered and concurred in House
amendment.