[114th Congress Public Law 74]
[From the U.S. Government Publishing Office]
[[Page 583]]
BIPARTISAN BUDGET ACT OF 2015
[[Page 129 STAT. 584]]
Public Law 114-74
114th Congress
An Act
To amend the Internal Revenue Code of 1986 to provide for a right to an
administrative appeal relating to adverse determinations of tax-exempt
status of certain organizations. <<NOTE: Nov. 2, 2015 - [H.R. 1314]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Bipartisan
Budget Act of 2015.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 26 USC 1 note.>> Short Title.--This Act may be cited as
the ``Bipartisan Budget Act of 2015''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--BUDGET ENFORCEMENT
Sec. 101. Amendments to the Balanced Budget and Emergency Deficit
Control Act of 1985.
Sec. 102. Authority for fiscal year 2017 budget resolution in the
Senate.
TITLE II--AGRICULTURE
Sec. 201. Standard Reinsurance Agreement.
TITLE III--COMMERCE
Sec. 301. Debt collection improvements.
TITLE IV--STRATEGIC PETROLEUM RESERVE
Sec. 401. Strategic Petroleum Reserve test drawdown and sale
notification and definition change.
Sec. 402. Strategic Petroleum Reserve mission readiness optimization.
Sec. 403. Strategic Petroleum Reserve drawdown and sale.
Sec. 404. Energy Security and Infrastructure Modernization Fund.
TITLE V--PENSIONS
Sec. 501. Single employer plan annual premium rates.
Sec. 502. Pension Payment Acceleration.
Sec. 503. Mortality tables.
Sec. 504. Extension of current funding stabilization percentages to
2018, 2019, and 2020.
TITLE VI--HEALTH CARE
Sec. 601. Maintaining 2016 Medicare part B premium and deductible levels
consistent with actuarially fair rates.
Sec. 602. Applying the Medicaid additional rebate requirement to generic
drugs.
Sec. 603. Treatment of off-campus outpatient departments of a provider.
Sec. 604. Repeal of automatic enrollment requirement.
TITLE VII--JUDICIARY
Sec. 701. Civil monetary penalty inflation adjustments.
Sec. 702. Crime Victims Fund.
Sec. 703. Assets Forfeiture Fund.
TITLE VIII--SOCIAL SECURITY
Sec. 801. Short title.
[[Page 129 STAT. 585]]
Subtitle A--Ensuring Correct Payments and Reducing Fraud
Sec. 811. Expansion of cooperative disability investigations units.
Sec. 812. Exclusion of certain medical sources of evidence.
Sec. 813. New and stronger penalties.
Sec. 814. References to Social Security and Medicare in electronic
communications.
Sec. 815. Change to cap adjustment authority.
Subtitle B--Promoting Opportunity for Disability Beneficiaries
Sec. 821. Temporary reauthorization of disability insurance
demonstration project authority.
Sec. 822. Modification of demonstration project authority.
Sec. 823. Promoting opportunity demonstration project.
Sec. 824. Use of electronic payroll data to improve program
administration.
Sec. 825. Treatment of earnings derived from services.
Sec. 826. Electronic reporting of earnings.
Subtitle C--Protecting Social Security Benefits
Sec. 831. Closure of unintended loopholes.
Sec. 832. Requirement for medical review.
Sec. 833. Reallocation of payroll tax revenue.
Sec. 834. Access to financial information for waivers and adjustments of
recovery.
Subtitle D--Relieving Administrative Burdens and Miscellaneous
Provisions
Sec. 841. Interagency coordination to improve program administration.
Sec. 842. Elimination of quinquennial determinations relating to wage
credits for military service prior to 1957.
Sec. 843. Certification of benefits payable to a divorced spouse of a
railroad worker to the Railroad Retirement Board.
Sec. 844. Technical amendments to eliminate obsolete provisions.
Sec. 845. Reporting requirements to Congress.
Sec. 846. Expedited examination of administrative law judges.
TITLE IX--TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT
Sec. 901. Temporary extension of public debt limit.
Sec. 902. Restoring congressional authority over the national debt.
TITLE X--SPECTRUM PIPELINE
Sec. 1001. Short title.
Sec. 1002. Definitions.
Sec. 1003. Rule of construction.
Sec. 1004. Identification, reallocation, and auction of Federal
spectrum.
Sec. 1005. Additional uses of Spectrum Relocation Fund.
Sec. 1006. Plans for auction of certain spectrum.
Sec. 1007. FCC auction authority.
Sec. 1008. Reports to Congress.
TITLE XI--REVENUE PROVISIONS RELATED TO TAX COMPLIANCE
Sec. 1101. Partnership audits and adjustments.
Sec. 1102. Partnership interests created by gift.
TITLE XII--DESIGNATION OF SMALL HOUSE ROTUNDA
Sec. 1201. Designating small House rotunda as ``Freedom Foyer''.
TITLE I--BUDGET ENFORCEMENT
SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT
CONTROL ACT OF 1985.
(a) Revised Discretionary Spending Limits.--Section 251(c) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(c)) is amended by striking paragraphs (3) and (4) and inserting the
following:
``(3) for fiscal year 2016--
``(A) for the revised security category,
$548,091,000,000 in new budget authority; and
``(B) for the revised nonsecurity category
$518,491,000,000 in new budget authority;
[[Page 129 STAT. 586]]
``(4) for fiscal year 2017--
``(A) for the revised security category,
$551,068,000,000 in new budget authority; and
``(B) for the revised nonsecurity category,
$518,531,000,000 in new budget authority;''.
(b) Direct Spending Adjustments for Fiscal Years 2016 and 2017.--
Section 251A of the Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 901a), is amended--
(1) in paragraph (5)(B), by striking ``paragraph (10)'' and
inserting ``paragraphs (10) and (11)''; and
(2) by adding at the end the following:
``(11) Implementing direct spending reductions for fiscal
years 2016 and 2017.--(A) OMB shall make the calculations
necessary to implement the direct spending reductions calculated
pursuant to paragraphs (3) and (4) without regard to the
amendment made to section 251(c) revising the discretionary
spending limits for fiscal years 2016 and 2017 by the Bipartisan
Budget Act of 2015.
``(B) Paragraph (5)(B) shall not be implemented for fiscal
years 2016 and 2017.''.
(c) Extension of Direct Spending Reductions for Fiscal Year 2025.--
Section 251A(6) of the Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 901a(6)) is amended--
(1) in subparagraph (B), in the matter preceding clause (i),
by striking ``and for fiscal year 2024'' and by inserting ``for
fiscal year 2024, and for fiscal year 2025'';
(2) by striking subparagraph (C) and redesignating
subparagraph (D) as subparagraph (C); and
(3) in subparagraph (C) (as so redesignated), by striking
``fiscal year 2024'' and inserting ``fiscal year 2025''.
(d) Overseas Contingency Operations Amounts.--In fiscal years 2016
and 2017, the adjustments under section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A))
for Overseas Contingency Operations/Global War on Terrorism
appropriations will be as follows:
(1) For budget function 150--
(A) for fiscal year 2016, $14,895,000,000; and
(B) for fiscal year 2017, $14,895,000,000.
(2) For budget function 050--
(A) for fiscal year 2016, $58,798,000,000; and
(B) for fiscal year 2017, $58,798,000,000.
This subsection shall not affect the applicability of section
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of
1985.
SEC. 102. AUTHORITY FOR FISCAL YEAR 2017 BUDGET RESOLUTION IN THE
SENATE.
(a) <<NOTE: Applicability.>> Fiscal Year 2017.--For the purpose of
enforcing the Congressional Budget Act of 1974, after April 15, 2016,
and enforcing budgetary points of order in prior concurrent resolutions
on the budget, the allocations, aggregates, and levels provided for in
subsection (b) shall apply in the Senate in the same manner as for a
concurrent resolution on the budget for fiscal year 2017 with
appropriate budgetary levels for fiscal years 2018 through 2026.
[[Page 129 STAT. 587]]
(b) <<NOTE: Deadlines. Time period.>> Committee Allocations,
Aggregates, and Levels.--After April 15, 2016, but not later than May
15, 2016, the Chairman of the Committee on the Budget of the Senate
shall file--
(1) for the Committee on Appropriations, committee
allocations for fiscal year 2017 consistent with discretionary
spending limits set forth in section 251(c)(4) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended by
this Act, for the purpose of enforcing section 302 of the
Congressional Budget Act of 1974;
(2) for all committees other than the Committee on
Appropriations, committee allocations for fiscal years 2017,
2017 through 2021, and 2017 through 2026 consistent with the
most recent baseline of the Congressional Budget Office, as
adjusted for the budgetary effects of any provision of law
enacted during the period beginning on the date such baseline is
issued and ending on the date of submission of such statement,
for the purpose of enforcing section 302 of the Congressional
Budget Act of 1974;
(3) aggregate spending levels for fiscal year 2017 in
accordance with the allocations established under paragraphs (1)
and (2), for the purpose of enforcing section 311 of the
Congressional Budget Act of 1974;
(4) aggregate revenue levels for fiscal years 2017, 2017
through 2021, and 2017 through 2026 consistent with the most
recent baseline of the Congressional Budget Office, as adjusted
for the budgetary effects of any provision of law enacted during
the period beginning on the date such baseline is issued and
ending on the date of submission of such statement, for the
purpose of enforcing section 311 of the Congressional Budget Act
of 1974; and
(5) levels of Social Security revenues and outlays for
fiscal years 2017, 2017 through 2021, and 2017 through 2026
consistent with the most recent baseline of the Congressional
Budget Office, as adjusted for the budgetary effects of any
provision of law enacted during the period beginning on the date
such baseline is issued and ending on the date of submission of
such statement, for the purpose of enforcing sections 302 and
311 of the Congressional Budget Act of 1974.
(c) Additional Matter.--The filing referred to in subsection (b) may
also include for fiscal year 2017 the matter contained in subtitles A
and B of title IV of S. Con. Res. 11 (114th Congress) updated by 1
fiscal year.
(d) Expiration.--This section shall expire if a concurrent
resolution on the budget for fiscal year 2017 is agreed to by the Senate
and the House of Representatives pursuant to section 301 of the
Congressional Budget Act of 1974.
TITLE II--AGRICULTURE
SEC. 201. STANDARD REINSURANCE AGREEMENT.
Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(8)) is amended--
(1) in subparagraph (A), in the matter preceding clause (i),
by striking ``may renegotiate'' and all that follows through
[[Page 129 STAT. 588]]
the end of clause (ii) and inserting the following: ``shall
renegotiate the financial terms and conditions of each Standard
Reinsurance Agreement--
``(i) <<NOTE: Deadline.>> not later than
December 31, 2016; and
``(ii) not less than once during each period
of 5 reinsurance years thereafter.''; and
(2) by striking subparagraph (E) and inserting the
following:
``(E) Cap on overall rate of return.--
Notwithstanding subparagraph (F), the Board shall ensure
that the Standard Reinsurance Agreement renegotiated
under subparagraph (A)(i) establishes a target rate of
return for the approved insurance providers, taken as a
whole, that does not exceed 8.9 percent of retained
premium for each of the 2017 through 2026 reinsurance
years.''.
TITLE III--COMMERCE
SEC. 301. DEBT COLLECTION IMPROVEMENTS.
(a) In General.--Section 227(b) of the Communications Act of 1934
(47 U.S.C. 227(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)(iii), by inserting ``,
unless such call is made solely to collect a debt owed
to or guaranteed by the United States'' after ``charged
for the call''; and
(B) in subparagraph (B), by inserting ``, is made
solely pursuant to the collection of a debt owed to or
guaranteed by the United States,'' after ``purposes'';
and
(2) in paragraph (2)--
(A) in subparagraph (F), by striking ``and'' at the
end;
(B) in subparagraph (G), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(H) may restrict or limit the number and duration
of calls made to a telephone number assigned to a
cellular telephone service to collect a debt owed to or
guaranteed by the United States.''.
(b) <<NOTE: Consultation. 47 USC 227 note.>> Deadline for
Regulations.--Not later than 9 months after the date of enactment of
this Act, the Federal Communications Commission, in consultation with
the Department of the Treasury, shall prescribe regulations to implement
the amendments made by this section.
TITLE IV--STRATEGIC PETROLEUM RESERVE
SEC. 401. STRATEGIC PETROLEUM RESERVE TEST DRAWDOWN AND SALE
NOTIFICATION AND DEFINITION CHANGE.
(a) Notice to Congress.--Section 161(g) of the Energy Policy and
Conservation Act (42 U.S.C. 6241(g)) is amended by striking paragraph
(8) and inserting the following:
``(8) Notice to congress.--
``(A) <<NOTE: Deadline.>> Prior notice.--Not less
than 14 days before the date on which a test is carried
out under this subsection,
[[Page 129 STAT. 589]]
the Secretary shall notify both Houses of Congress of
the test.
``(B) <<NOTE: Determination.>> Emergency.--The
prior notice requirement in subparagraph (A) shall not
apply if the Secretary determines that an emergency
exists which requires a test to be carried out, in which
case the Secretary shall notify both Houses of Congress
of the test as soon as possible.
``(C) Detailed description.--
``(i) <<NOTE: Deadline.>> In general.--Not
later than 180 days after the date on which a test
is completed under this subsection, the Secretary
shall submit to both Houses of Congress a detailed
description of the test.
``(ii) Report.--A detailed description
submitted under clause (i) may be included as part
of a report made to the President and Congress
under section 165.''.
(b) Definition Change.--Section 3(8)(C)(iii) of the Energy Policy
and Conservation Act (42 U.S.C. 6202(8)(C)(iii)) is amended by striking
``sabotage or an act of God'' and inserting ``sabotage, an act of
terrorism, or an act of God''.
SEC. 402. <<NOTE: Deadline. Strategic review. Plans. Proposed
schedule.>> STRATEGIC PETROLEUM RESERVE
MISSION READINESS OPTIMIZATION.
Not later than 180 days after the date of enactment of this Act, the
Secretary shall--
(1) complete a long-range strategic review of the Strategic
Petroleum Reserve; and
(2) develop and submit to Congress a proposed action plan,
including a proposed implementation schedule, that--
(A) specifies near- and long-term roles of the
Strategic Petroleum Reserve relative to the energy and
economic security goals and objectives of the United
States;
(B) describes whether existing legal authorities
that govern the policies, configuration, and
capabilities of the Strategic Petroleum Reserve are
adequate to ensure that the Strategic Petroleum Reserve
can meet the current and future energy and economic
security goals and objectives of the United States;
(C) identifies the configuration and performance
capabilities of the Strategic Petroleum Reserve and
recommends an action plan to achieve the optimal--
(i) capacity, location, and composition of
petroleum products in the Strategic Petroleum
Reserve; and
(ii) storage and distributional capabilities;
and
(D) estimates the resources required to attain and
maintain the long-term sustainability and operational
effectiveness of the Strategic Petroleum Reserve.
SEC. 403. <<NOTE: 42 USC 6241.>> STRATEGIC PETROLEUM RESERVE
DRAWDOWN AND SALE.
(a) Drawdown and Sale.--Notwithstanding section 161 of the Energy
Policy and Conservation Act (42 U.S.C. 6241), except as provided in
subsection (b), the Secretary of Energy shall draw down and sell--
(1) 5,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2018;
(2) 5,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2019;
[[Page 129 STAT. 590]]
(3) 5,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2020;
(4) 5,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2021;
(5) 8,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2022;
(6) 10,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2023;
(7) 10,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2024; and
(8) 10,000,000 barrels of crude oil from the Strategic
Petroleum Reserve during fiscal year 2025.
(b) Emergency Protection.--The Secretary shall not draw down and
sell crude oil under this section in amounts that would limit the
authority to sell petroleum products under section 161(h) of the Energy
Policy and Conservation Act (42 U.S.C. 6241(h)) in the full amount
authorized by that subsection.
(c) Proceeds.--Proceeds from a sale under this section shall be
deposited into the general fund of the Treasury during the fiscal year
in which the sale occurs.
SEC. 404. <<NOTE: 42 USC 6239 note.>> ENERGY SECURITY AND
INFRASTRUCTURE MODERNIZATION FUND.
(a) Establishment.--There is hereby established in the Treasury of
the United States a fund to be known as the Energy Security and
Infrastructure Modernization Fund (referred to in this section as the
``Fund''), consisting of--
(1) collections deposited in the Fund under subsection (c);
and
(2) amounts otherwise appropriated to the Fund.
(b) Purpose.--The purpose of the Fund is to provide for the
construction, maintenance, repair, and replacement of Strategic
Petroleum Reserve facilities.
(c) Collection and Deposit of Sale Proceeds in Fund.--
(1) Drawdown and sale.--Notwithstanding section 161 of the
Energy Policy and Conservation Act (42 U.S.C. 6241), to the
extent provided in advance in appropriation Acts, the Secretary
of Energy shall draw down and sell crude oil from the Strategic
Petroleum Reserve in amounts as authorized under subsection (e),
except as provided in paragraph (2). Amounts received for a sale
under this paragraph shall be deposited into the Fund during the
fiscal year in which the sale occurs. Such amounts shall remain
available in the Fund without fiscal year limitation.
(2) Emergency protection.--The Secretary shall not draw down
and sell crude oil under this subsection in amounts that would
limit the authority to sell petroleum products under section
161(h) of the Energy Policy and Conservation Act (42 U.S.C.
6241(h)) in the full amount authorized by that subsection.
(d) Authorized Uses of Fund.--
(1) In general.--Amounts in the Fund may be used for, or may
be credited as offsetting collections for amounts used for,
carrying out the program described in paragraph (2)(B), to the
extent provided in advance in appropriation Acts.
(2) Program to modernize the strategic petroleum reserve.--
[[Page 129 STAT. 591]]
(A) Findings.--Congress finds the following:
(i) The Strategic Petroleum Reserve is one of
the Nation's most valuable energy security assets.
(ii) The age and condition of the Strategic
Petroleum Reserve have diminished its value as a
Federal energy security asset.
(iii) Global oil markets and the location and
amount of United States oil production and
refining capacity have dramatically changed in the
40 years since the establishment of the Strategic
Petroleum Reserve.
(iv) Maximizing the energy security value of
the Strategic Petroleum Reserve requires a
modernized infrastructure that meets the drawdown
and distribution needs of changed domestic and
international oil and refining market conditions.
(B) Program.--The Secretary of Energy shall
establish a Strategic Petroleum Reserve modernization
program to protect the United States economy from the
impacts of emergency product supply disruptions. The
program may include--
(i) operational improvements to extend the
useful life of surface and subsurface
infrastructure;
(ii) maintenance of cavern storage integrity;
and
(iii) addition of infrastructure and
facilities to optimize the drawdown and
incremental distribution capacity of the Strategic
Petroleum Reserve.
(e) Authorization of Appropriations.--There are authorized to be
appropriated (and drawdowns and sales under subsection (c) in an equal
amount are authorized) for carrying out subsection (d)(2)(B),
$2,000,000,000 for the period encompassing fiscal years 2017 through
2020.
(f) Transmission of Department Budget Requests.--The Secretary of
Energy shall prepare and submit in the Department's annual budget
request to Congress--
(1) an itemization of the amounts of funds necessary to
carry out subsection (d); and
(2) a designation of any activities thereunder for which a
multiyear budget authority would be appropriate.
(g) Sunset.--The authority of the Secretary to draw down and sell
crude oil from the Strategic Petroleum Reserve under this section shall
expire at the end of fiscal year 2020.
TITLE V--PENSIONS
SEC. 501. <<NOTE: Time periods.>> SINGLE EMPLOYER PLAN ANNUAL
PREMIUM RATES.
(a) Flat-Rate Premium.--
(1) In general.--Section 4006(a)(3)(A)(i) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1306(a)(3)(A)(i)) is amended by striking ``and'' at the end of
subclause (IV), by striking the period at the end of subclause
(V) and inserting a semicolon, and by inserting after subclause
(V) the following:
``(VI) for plan years beginning
after December 31, 2016, and before
January 1, 2018, $69;
[[Page 129 STAT. 592]]
``(VII) for plan years beginning
after December 31, 2017, and before
January 1, 2019, $74; and
``(VIII) for plan years beginning
after December 31, 2018, $80.''.
(2) Premium rates after 2019.--Section 4006(a)(3)(G) of such
Act (29 U.S.C. 1306(a)(3)(G)) is amended--
(A) in the matter preceding clause (i), by striking
``2016'' and inserting ``2019''; and
(B) in clause (i)(II) by striking ``2014'' and
inserting ``2017''.
(b) Variable-Rate Premium Increases.--
(1) In general.--Section 4006(a)(8)(C) of such Act (29
U.S.C. 1306(a)(8)(C)) is amended--
(A) in the subparagraph heading, by striking
``increase in 2014 and 2015'' and inserting
``increases'';
(B) in clause (ii), by striking ``and'' at the end;
(C) in clause (iii), by striking the period at the
end and inserting a semicolon; and
(D) by adding at the end the following:
``(iv) in the case of plan years beginning in
calendar year 2017, by $3;
``(v) in the case of plan years beginning in
calendar year 2018, by $4; and
``(vi) in the case of plan years beginning in
calendar year 2019, by $4.''.
(2) Conforming amendments.--Section 4006(a)(8) of such Act
(29 U.S.C. 1306(a)(8)) is amended--
(A) in subparagraph (A)--
(i) in clause (iii), by striking ``and'' at
the end;
(ii) in clause (iv), by striking the period at
the end and inserting a semicolon; and
(iii) by adding at the end the following:
``(v) for plan years beginning after calendar
year 2017, the amount in effect for plan years
beginning in 2017 (determined after application of
subparagraph (C));
``(vi) for plan years beginning after calendar
year 2018, the amount in effect for plan years
beginning in 2018 (determined after application of
subparagraph (C)); and
``(vii) for plan years beginning after
calendar year 2019, the amount in effect for plan
years beginning in 2019 (determined after
application of subparagraph (C)).''; and
(B) in subparagraph (D)--
(i) in clause (iii), by striking ``and'' at
the end;
(ii) in clause (iv), by striking the period at
the end and inserting a semicolon; and
(iii) by adding at the end the following:
``(v) 2015, in the case of plan years
beginning after calendar year 2017;
``(vi) 2016, in the case of plan years
beginning after calendar year 2018; and
``(vii) 2017, in the case of plan years
beginning after calendar year 2019.''.
[[Page 129 STAT. 593]]
(3) <<NOTE: 29 USC 1306 note.>> Effective date.--The
amendments made by this section shall apply to plan years
beginning after December 31, 2016.
SEC. 502. <<NOTE: Time periods. 29 USC 1307 note.>> PENSION
PAYMENT ACCELERATION.
Notwithstanding section 4007(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 of title
29, Code of Federal Regulations, for plan years commencing after
December 31, 2024, and before January 1, 2026, the premium due date for
such plan years shall be the fifteenth day of the ninth calendar month
that begins on or after the first day of the premium payment year.
SEC. 503. MORTALITY TABLES.
(a) <<NOTE: Determination. 26 USC 430 note.>> Credibility.--For
purposes of subclause (I) of section 430(h)(3)(C)(iii) of the Internal
Revenue Code of 1986 and subclause (I) of section 303(h)(3)(C)(iii) of
the Employee Retirement Income Security Act of 1974, the determination
of whether plans have credible information shall be made in accordance
with established actuarial credibility theory, which--
(1) is materially different from rules under such section of
such Code, including Revenue Procedure 2007-37, that are in
effect on the date of the enactment of this Act; and
(2) permits the use of tables that reflect adjustments to
the tables described in subparagraphs (A) and (B) of section
430(h)(3) of such Code, and subparagraphs (A) and (B) of section
303(h)(3) of such Act, if such adjustments are based on the
experience described in subclause (II) of section
430(h)(3)(C)(iii) of such Code and in subclause (II) of section
303(h)(3)(C)(iii) of such Act.
(b) Effective Date.--This section shall apply to plan years
beginning after December 31, 2015.
SEC. 504. EXTENSION OF CURRENT FUNDING STABILIZATION PERCENTAGES
TO 2018, 2019, AND 2020.
(a) Funding Stabilization Under the Internal Revenue Code of 1986.--
The table in subclause (II) of section 430(h)(2)(C)(iv) of the Internal
Revenue Code of <<NOTE: 26 USC 430.>> 1986 is amended to read as
follows:
----------------------------------------------------------------------------------------------------------------
The applicable minimum
``If the calendar year is: percentage is: The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017, 90%.......................... 110%
2018, 2019, or 2020.
2021.................................. 85%.......................... 115%
2022.................................. 80%.......................... 120%
2023.................................. 75%.......................... 125%
After 2023............................ 70%.......................... 130%''.
----------------------------------------------------------------------------------------------------------------
(b) Funding Stabilization Under Employee Retirement Income Security
Act of 1974.--
(1) In general.--The table in subclause (II) of section
303(h)(2)(C)(iv) of the Employee Retirement Income Security
[[Page 129 STAT. 594]]
Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)) is amended to read as
follows:
----------------------------------------------------------------------------------------------------------------
The applicable minimum
``If the calendar year is: percentage is: The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, 2017, 90%.......................... 110%
2018, 2019, or 2020.
2021.................................. 85%.......................... 115%
2022.................................. 80%.......................... 120%
2023.................................. 75%.......................... 125%
After 2023............................ 70%.......................... 130%''.
----------------------------------------------------------------------------------------------------------------
(2) Conforming amendments.--
(A) In general.--Section 101(f)(2)(D) of such Act
(29 U.S.C. 1021(f)(2)(D)) is amended--
(i) in clause (i) by striking ``and the
Highway and Transportation Funding Act of 2014''
both places it appears and inserting ``, the
Highway and Transportation Funding Act of 2014,
and the Bipartisan Budget Act of 2015''; and
(ii) in clause (ii) by striking ``2020'' and
inserting ``2023''.
(B) Statements.--The Secretary of Labor shall modify
the statements required under subclauses (I) and (II) of
section 101(f)(2)(D)(i) of such Act to conform to the
amendments made by this section.
(c) <<NOTE: 26 USC 430 note.>> Effective Date.--The amendments made
by this section shall apply with respect to plan years beginning after
December 31, 2015.
TITLE VI--HEALTH CARE
SEC. 601. MAINTAINING 2016 MEDICARE PART B PREMIUM AND DEDUCTIBLE
LEVELS CONSISTENT WITH ACTUARIALLY FAIR
RATES.
(a) 2016 Premium and Deductible and Repayment Through Future
Premiums.--Section 1839(a) of the Social Security Act (42 U.S.C.
1395r(a)) is amended--
(1) in the second sentence of paragraph (1), by striking
``Such'' and inserting ``Subject to paragraphs (5) and (6),
such''; and
(2) by adding at the end the following:
``(5)(A) <<NOTE: Applicability.>> In applying this part (including
subsection (i) and section 1833(b)), the monthly actuarial rate for
enrollees age 65 and over for 2016 shall be determined as if subsection
(f) did not apply.
``(B) Subsection (f) shall continue to be applied to paragraph
(6)(A) (during a repayment month, as described in paragraph (6)(B)) and
without regard to the application of subparagraph (A).
``(6)(A) With respect to a repayment month (as described in
subparagraph (B)), the monthly premium otherwise established under
paragraph (3) shall be increased by, subject to subparagraph (D), $3.
[[Page 129 STAT. 595]]
``(B) For purposes of this paragraph, a repayment month is a month
during a year, beginning with 2016, for which a balance due amount is
computed under subparagraph (C) as greater than zero.
``(C) For purposes of this paragraph, the balance due amount
computed under this subparagraph, with respect to a month, is the amount
estimated by the Chief Actuary of the Centers for Medicare & Medicaid
Services to be equal to--
``(i) the amount transferred under section 1844(d)(1); plus
``(ii) the amount that is equal to the aggregate reduction,
for all individuals enrolled under this part, in the income
related monthly adjustment amount as a result of the application
of paragraph (5); minus
``(iii) the amounts payable under this part as a result of
the application of this paragraph for preceding months.
``(D) <<NOTE: Estimate. Applicability.>> If the balance due amount
computed under subparagraph (C), without regard to this subparagraph,
for December of a year would be less than zero, the Chief Actuary of the
Centers for Medicare & Medicaid Services shall estimate, and the
Secretary shall apply, a reduction to the dollar amount increase applied
under subparagraph (A) for each month during such year in a manner such
that the balance due amount for January of the subsequent year is equal
to zero.''.
(b) Transitional Government Contribution.--Section 1844 of the
Social Security Act (42 U.S.C. 1395w) is amended--
(1) <<NOTE: Applicability.>> in subsection (a), by adding
at the end the following:
``In applying paragraph (1), the amounts transferred under subsection
(d)(1) with respect to enrollees described in subparagraphs (A) and (B)
of such subsection shall be treated as premiums payable and deposited in
the Trust Fund under subparagraphs (A) and (B), respectively, of
paragraph (1).''; and
(2) by adding at the end the following:
``(d)(1) For 2016, there shall be transferred from the General Fund
to the Trust Fund an amount, as estimated by the Chief Actuary of the
Centers for Medicare & Medicaid Services, equal to the reduction in
aggregate premiums payable under this part for a month in such year
(excluding any changes in amounts collected under section 1839(i)) that
is attributable to the application of section 1839(a)(5)(A) with respect
to--
``(A) enrollees age 65 and over; and
``(B) enrollees under age 65.
Such amounts shall be transferred from time to time as appropriate.
``(2) Premium increases affected under section 1839(a)(6) shall not
be taken into account in applying subsection (a).
``(3) There shall be transferred from the Trust Fund to the General
Fund of the Treasury amounts equivalent to the additional premiums
payable as a result of the application of section 1839(a)(6), excluding
the aggregate payments attributable to the application of section
1839(i)(3)(A)(ii)(II).''.
(c) Conforming Application of High Income Adjustments to Increased
Monthly Premium in Same Manner as for Regular Medicare Premiums.--
Section 1839(i)(3)(A)(ii) of the Social Security Act (42 U.S.C.
1395r(i)(3)(A)(ii)) is amended--
(1) by striking ``amount.--200 percent'' and inserting the
following: ``amount.--
``(I) 200 percent''; and
[[Page 129 STAT. 596]]
(2) by striking the period at the end and inserting ``;
plus''; and
(3) by adding at the end the following new subclause:
``(II) 4 times the amount of the
increase in the monthly premium under
subsection (a)(6) for a month in the
year.''.
(d) <<NOTE: 42 USC 1395r note.>> Conditional Application to 2017 if
No Social Security COLA for 2017.--If there is no increase in the
monthly insurance benefits payable under title II with respect to
December 2016 pursuant to section 215(i), then the amendments made by
this section shall be applied as if--
(1) the reference to ``2016'' in paragraph (5)(A) of section
1839(a) of the Social Security Act (42 U.S.C. 1395r(a)), as
added by subsection (a)(2), was a reference to ``2016 and
2017'';
(2) the reference to ``a month during a year, beginning with
2016'' in paragraph (6)(B) of section 1839 of such Act (42
U.S.C. 1395r(a)), as added by subsection (a)(2), was a reference
to ``a month in a year, beginning with 2016 and beginning with
2017, respectively''; and
(3) the reference to ``2016'' in subsection (d)(1) of
section 1844 of such Act (42 U.S.C. 1395w), as added by
subsection (b)(2), was a reference to ``each of 2016 and 2017''.
Any increase in premiums effected under this subsection shall be in
addition to the increase effected by the amendments made by subsection
(a).
(e) <<NOTE: 42 USC 1395r note.>> Construction Regarding No
Authority to Initiate Application to Years After 2017.--Nothing in
subsection (d) or the amendments made by this section shall be construed
as authorizing the Secretary of Health and Human Services to initiate
application of such subsection or amendments for a year after 2017.
SEC. 602. APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO
GENERIC DRUGS.
(a) In General.--Section 1927(c)(3) of the Social Security Act (42
U.S.C. 1396r-8(c)(3)) is amended--
(1) in subparagraph (A), by striking ``The amount'' and
inserting ``Except as provided in subparagraph (C), the
amount''; and
(2) by adding at the end the following new subparagraph:
``(C) Additional rebate.--
``(i) In general.--The amount of the rebate
specified in this paragraph for a rebate period,
with respect to each dosage form and strength of a
covered outpatient drug other than a single source
drug or an innovator multiple source drug of a
manufacturer, shall be increased in the manner
that the rebate for a dosage form and strength of
a single source drug or an innovator multiple
source drug is increased under subparagraphs (A)
and (D) of paragraph (2), except as provided in
clause (ii).
``(ii) Special rules for application of
provision.--In applying subparagraphs (A) and (D)
of paragraph (2) under clause (i)--
``(I) the reference in subparagraph
(A)(i) of such paragraph to `1990' shall
be deemed a reference to `2014';
[[Page 129 STAT. 597]]
``(II) subject to clause (iii), the
reference in subparagraph (A)(ii) of
such paragraph to `the calendar quarter
beginning July 1, 1990' shall be deemed
a reference to `the calendar quarter
beginning July 1, 2014'; and
``(III) subject to clause (iii), the
reference in subparagraph (A)(ii) of
such paragraph to `September 1990' shall
be deemed a reference to `September
2014';
``(IV) the references in
subparagraph (D) of such paragraph to
`paragraph (1)(A)(ii)', `this
paragraph', and `December 31, 2009'
shall be deemed references to
`subparagraph (A)', `this subparagraph',
and `December 31, 2014', respectively;
and
``(V) any reference in such
paragraph to a `single source drug or an
innovator multiple source drug' shall be
deemed to be a reference to a drug to
which clause (i) applies.
``(iii) <<NOTE: Applicability.>> Special rule
for certain noninnovator multiple source drugs.--
In applying paragraph (2)(A)(ii)(II) under clause
(i) with respect to a covered outpatient drug that
is first marketed as a drug other than a single
source drug or an innovator multiple source drug
after April 1, 2013, such paragraph shall be
applied--
``(I) by substituting `the
applicable quarter' for `the calendar
quarter beginning July 1, 1990'; and
``(II) by substituting `the last
month in such applicable quarter' for
`September 1990'.
``(iv) Applicable quarter defined.--In this
subsection, the term `applicable quarter' means,
with respect to a drug described in clause (iii),
the fifth full calendar quarter after which the
drug is marketed as a drug other than a single
source drug or an innovator multiple source
drug.''.
(b) <<NOTE: Applicability. Time period. 42 USC 1396r-8.>> Effective
Date.--The amendments made by subsection (a) shall apply to rebate
periods beginning after the date that is one year after the date of the
enactment of this Act.
SEC. 603. TREATMENT OF OFF-CAMPUS OUTPATIENT DEPARTMENTS OF A
PROVIDER.
Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) is
amended--
(1) in paragraph (1)(B)--
(A) in clause (iii), by striking ``but'' at the end;
(B) in clause (iv), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(v) does not include applicable items and
services (as defined in subparagraph (A) of
paragraph (21)) that are furnished on or after
January 1, 2017, by an off-campus outpatient
department of a provider (as defined in
subparagraph (B) of such paragraph).''; and
(2) by adding at the end the following new paragraph:
``(21) Services furnished by an off-campus outpatient
department of a provider.--
[[Page 129 STAT. 598]]
``(A) <<NOTE: Definition.>> Applicable items and
services.--For purposes of paragraph (1)(B)(v) and this
paragraph, the term `applicable items and services'
means items and services other than items and services
furnished by a dedicated emergency department (as
defined in section 489.24(b) of title 42 of the Code of
Federal Regulations).
``(B) Off-campus outpatient department of a
provider.--
``(i) <<NOTE: Definition.>> In general.--For
purposes of paragraph (1)(B)(v) and this
paragraph, subject to clause (ii), the term `off-
campus outpatient department of a provider' means
a department of a provider (as defined in section
413.65(a)(2) of title 42 of the Code of Federal
Regulations, as in effect as of the date of the
enactment of this paragraph) that is not located--
``(I) on the campus (as defined in
such section 413.65(a)(2)) of such
provider; or
``(II) within the distance
(described in such definition of campus)
from a remote location of a hospital
facility (as defined in such section
413.65(a)(2)).
``(ii) Exception.--For purposes of paragraph
(1)(B)(v) and this paragraph, the term `off-campus
outpatient department of a provider' shall not
include a department of a provider (as so defined)
that was billing under this subsection with
respect to covered OPD services furnished prior to
the date of the enactment of this paragraph.
``(C) Availability of payment under other payment
systems.--Payments for applicable items and services
furnished by an off-campus outpatient department of a
provider that are described in paragraph (1)(B)(v) shall
be made under the applicable payment system under this
part (other than under this subsection) if the
requirements for such payment are otherwise met.
``(D) Information needed for implementation.--Each
hospital shall provide to the Secretary such information
as the Secretary determines appropriate to implement
this paragraph and paragraph (1)(B)(v) (which may
include reporting of information on a hospital claim
using a code or modifier and reporting information about
off-campus outpatient departments of a provider on the
enrollment form described in section 1866(j)).
``(E) Limitations.--There shall be no administrative
or judicial review under section 1869, section 1878, or
otherwise of the following:
``(i) The determination of the applicable
items and services under subparagraph (A) and
applicable payment systems under subparagraph (C).
``(ii) The determination of whether a
department of a provider meets the term described
in subparagraph (B).
``(iii) Any information that hospitals are
required to report pursuant to subparagraph
(D).''.
[[Page 129 STAT. 599]]
SEC. 604. REPEAL OF AUTOMATIC ENROLLMENT REQUIREMENT.
The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) is
amended by repealing section <<NOTE: 29 USC 218a.>> 18A (as added by
section 1511 of the Patient Protection and Affordable Care Act (Public
Law 111-148)).
TITLE VII--JUDICIARY
SEC. 701. <<NOTE: Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015. 28 USC 1
note. 28 USC 2461 note.>> CIVIL MONETARY
PENALTY INFLATION ADJUSTMENTS.
(a) Short Title.--This section may be cited as the ``Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015''.
(b) Amendments.--The Federal Civil Penalties Inflation Adjustment
Act of 1990 (28 U.S.C. 2461 note) is amended--
(1) in section 4--
(A) by striking the matter preceding paragraph (1)
and inserting the following:
``(a) <<NOTE: Deadlines.>> In General.--Not later than July 1,
2016, and not later than January 15 of every year thereafter, and
subject to subsections (c) and (d), the head of each agency
shall--'';
(B) in paragraph (1)--
(i) by striking ``by regulation adjust'' and
inserting ``in accordance with subsection (b),
adjust''; and
(ii) by striking ``, the Tariff Act of 1930,
the Occupational Safety and Health Act of 1970, or
the Social Security Act'' and inserting `` or the
Tariff Act of 1930'';
(C) in paragraph (2), by striking ``such
regulation'' and inserting ``such adjustment''; and
(D) by adding at the end the following:
``(b) Procedures for Adjustments.--
``(1) Catch up adjustment.--For the first adjustment made
under subsection (a) after the date of enactment of the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of
2015--
``(A) <<NOTE: Regulations.>> the head of an agency
shall adjust civil monetary penalties through an interim
final rulemaking; and
``(B) <<NOTE: Effective date. Deadline.>> the
adjustment shall take effect not later than August 1,
2016.
``(2) Subsequent adjustments.--For the second adjustment
made under subsection (a) after the date of enactment of the
Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015, and each adjustment thereafter, the head of an
agency shall adjust civil monetary penalties and shall make the
adjustment notwithstanding section 553 of title 5, United States
Code.
``(c) Exception.--For the first adjustment made under subsection (a)
after the date of enactment of the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, the head of an agency may
adjust the amount of a civil monetary penalty by less than the otherwise
required amount if--
``(1) <<NOTE: Publication. Notice. Public
comments. Determination. Regulations.>> the head of the agency,
after publishing a notice of proposed rulemaking and providing
an opportunity for comment, determines in a final rule that--
``(A) increasing the civil monetary penalty by the
otherwise required amount will have a negative economic
impact; or
[[Page 129 STAT. 600]]
``(B) the social costs of increasing the civil
monetary penalty by the otherwise required amount
outweigh the benefits; and
``(2) the Director of the Office of Management and Budget
concurs with the determination of the head of the agency under
paragraph (1).
``(d) <<NOTE: Time period.>> Other Adjustments Made.--If a civil
monetary penalty subject to a cost-of-living adjustment under this Act
is, during the 12 months preceding a required cost-of-living adjustment,
increased by an amount greater than the amount of the adjustment
required under subsection (a), the head of the agency is not required to
make the cost-of-living adjustment for that civil monetary penalty in
that year.'';
(2) <<NOTE: 28 USC 2461 note.>> in section 5--
(A) in subsection (a), by striking ``to the
nearest--'' and all that follows through the end of
subsection (a) and inserting ``to the nearest multiple
of $1.''; and
(B) by amending subsection (b) to read as follows:
``(b) Definition.--
``(1) In general.--Except as provided in paragraph (2), for
purposes of subsection (a), the term `cost-of-living adjustment'
means the percentage (if any) for each civil monetary penalty by
which--
``(A) the Consumer Price Index for the month of
October preceding the date of the adjustment, exceeds
``(B) the Consumer Price Index for the month of
October 1 year before the month of October referred to
in subparagraph (A).
``(2) Initial adjustment.--
``(A) In general.--Subject to subparagraph (C), for
the first inflation adjustment under section 4 made by
an agency after the date of enactment of the Federal
Civil Penalties Inflation Adjustment Act Improvements
Act of 2015, the term `cost-of-living adjustment' means
the percentage (if any) for each civil monetary penalty
by which the Consumer Price Index for the month of
October, 2015 exceeds the Consumer Price Index for the
month of October of the calendar year during which the
amount of such civil monetary penalty was established or
adjusted under a provision of law other than this Act.
``(B) Application of adjustment.--The cost-of-living
adjustment described in subparagraph (A) shall be
applied to the amount of the civil monetary penalty as
it was most recently established or adjusted under a
provision of law other than this Act.
``(C) Maximum adjustment.--The amount of the
increase in a civil monetary penalty under subparagraph
(A) shall not exceed 150 percent of the amount of that
civil monetary penalty on the date of enactment of the
Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015.'';
(3) <<NOTE: 28 USC 2461 note.>> in section 6, by striking
``violations which occur'' and inserting ``civil monetary
penalties, including those whose associated violation predated
such increase, which are assessed''; and
(4) by adding at the end the following:
[[Page 129 STAT. 601]]
``SEC. 7. <<NOTE: 28 USC 2461 note. Deadlines.>> IMPLEMENTATION
AND OVERSIGHT ENHANCEMENTS.
``(a) OMB Guidance.--Not later than February 29, 2016, not later
than December 15, 2016, and December 15 of every year thereafter, the
Director of the Office of Management and Budget shall issue guidance to
agencies on implementing the inflation adjustments required under this
Act.
``(b) Agency Financial Reports.--The head of each agency shall
include in the Agency Financial Report submitted under OMB Circular A-
136, or any successor thereto, information about the civil monetary
penalties within the jurisdiction of the agency, including the
adjustment of the civil monetary penalties by the head of the agency
under this Act.
``(c) <<NOTE: Reports.>> GAO Review.--The Comptroller General of
the United States shall annually submit to Congress a report assessing
the compliance of agencies with the inflation adjustments required under
this Act, which may be included as part of another report submitted to
Congress.''.
(c) Repeal.--Section 31001(s) of the Debt Collection Improvement Act
of 1996 (28 U.S.C. 2461 note) is amended by striking paragraph (2).
SEC. 702. <<NOTE: Rescission.>> CRIME VICTIMS FUND.
There is hereby rescinded and permanently canceled $1,500,000,000 of
the funds deposited or available in the Crime Victims Fund created by
section 1402 of the Victims of Crime Act of 1984 (42 U.S.C. 10601).
SEC. 703. <<NOTE: Rescission. Cancellation.>> ASSETS FORFEITURE
FUND.
Of the amounts deposited in the Department of Justice Assets
Forfeiture Fund, $746,000,000 are hereby rescinded and permanently
cancelled.
TITLE VIII--SOCIAL <<NOTE: Social Security Benefit Protection and
Opportunity Enhancement Act of 2015. 42 USC 1305 note.>> SECURITY
SEC. 801. SHORT TITLE.
This title may be cited as the ``Social Security Benefit Protection
and Opportunity Enhancement Act of 2015''.
Subtitle A--Ensuring Correct Payments and Reducing Fraud
SEC. 811. EXPANSION OF COOPERATIVE DISABILITY INVESTIGATIONS
UNITS.
(a) <<NOTE: Deadline. 42 USC 421.>> In General.--Not later than
October 1, 2022, the Commissioner of Social Security shall take any
necessary actions, subject to the availability of appropriations, to
ensure that cooperative disability investigations units have been
established, in areas where there is cooperation with local law
enforcement agencies, that would cover each of the 50 States, the
District of Columbia, Puerto Rico, Guam, the Northern Mariana Islands,
the Virgin Islands, and American Samoa.
(b) Report.--Not later than 90 days after the date of the enactment
of this Act and annually thereafter until the earlier of 2022 or the
date on which nationwide coverage is achieved, the Commissioner of
Social Security shall submit to the Committee
[[Page 129 STAT. 602]]
on Ways and Means of the House of Representatives and the Committee on
Finance of the Senate a report describing a plan to implement the
nationwide coverage described in subsection (a) and outlining areas
where the Social Security Administration did not receive the cooperation
of local law enforcement agencies.
SEC. 812. EXCLUSION OF CERTAIN MEDICAL SOURCES OF EVIDENCE.
(a) In General.--Section 223(d)(5) of the Social Security Act (42
U.S.C. 423(d)(5)) is amended by adding at the end the following:
``(C)(i) <<NOTE: Determination.>> In making any
determination with respect to whether an individual is
under a disability or continues to be under a
disability, the Commissioner of Social Security may not
consider (except for good cause as determined by the
Commissioner) any evidence furnished by--
``(I) any individual or entity who has been
convicted of a felony under section 208 or under
section 1632;
``(II) any individual or entity who has been
excluded from participation in any Federal health
care program under section 1128; or
``(III) any person with respect to whom a
civil money penalty or assessment has been imposed
under section 1129 for the submission of false
evidence.
``(ii) To the extent and at such times as is
necessary for the effective implementation of clause (i)
of this subparagraph--
``(I) the Inspector General of the Social
Security Administration shall transmit to the
Commissioner information relating to persons
described in subclause (I) or (III) of clause (i);
``(II) the Secretary of Health and Human
Services shall transmit to the Commissioner
information relating to persons described in
subclause (II) of clause (i); and''.
(b) <<NOTE: Deadline. 42 USC 423 note.>> Regulations.--Not later
than 1 year after the date of the enactment of this Act, the
Commissioner of Social Security shall issue regulations to carry out the
amendment made by subsection (a).
(c) <<NOTE: Applicability. 42 USC 423 note.>> Effective Date.--The
amendment made by subsection (a) shall apply with respect to
determinations of disability made on or after the earlier of--
(1) the effective date of the regulations issued by the
Commissioner under subsection (b); or
(2) one year after the date of the enactment of this Act.
SEC. 813. NEW AND STRONGER PENALTIES.
(a) Conspiracy to Commit Social Security Fraud.--
(1) Amendment to title ii.--Section 208(a) of the Social
Security Act (42 U.S.C. 408(a)) is amended--
(A) in paragraph (7)(C), by striking ``or'' at the
end;
(B) in paragraph (8), by adding ``or'' at the end;
and
(C) by inserting after paragraph (8) the following:
``(9) conspires to commit any offense described in any of
paragraphs (1) through (4),''.
(2) Amendment to title viii.--Section 811(a) of such Act (42
U.S.C. 1011(a)) is amended--
(A) in paragraph (3), by striking ``or'' at the end;
(B) in paragraph (4), by striking the comma and
adding ``; or'' at the end; and
[[Page 129 STAT. 603]]
(C) by inserting after paragraph (4) the following:
``(5) conspires to commit any offense described in any of
paragraphs (1) through (3),''.
(3) Amendment to title xvi.--Section 1632(a) of such Act (42
U.S.C. 1383a(a)) is amended--
(A) in paragraph (3), by striking ``or'' at the end;
(B) in paragraph (4), by adding ``or'' at the end;
and
(C) by inserting after paragraph (4) the following:
``(5) conspires to commit any offense described in any of
paragraphs (1) through (3),''.
(b) Increased Criminal Penalties for Certain Individuals Violating
Positions of Trust.--
(1) Amendment to title ii.--Section 208(a) of the Social
Security Act (42 U.S.C. 408(a)), as amended by subsection (a),
is further amended by striking the period at the end and
inserting ``, except that in the case of a person who receives a
fee or other income for services performed in connection with
any determination with respect to benefits under this title
(including a claimant representative, translator, or current or
former employee of the Social Security Administration), or who
is a physician or other health care provider who submits, or
causes the submission of, medical or other evidence in
connection with any such determination, such person shall be
guilty of a felony and upon conviction thereof shall be fined
under title 18, United States Code, or imprisoned for not more
than ten years, or both.''.
(2) Amendment to title viii.--Section 811(a) of such Act (42
U.S.C. 1011(a)), as amended by subsection (a), is further
amended by striking the period at the end and inserting ``,
except that in the case of a person who receives a fee or other
income for services performed in connection with any
determination with respect to benefits under this title
(including a claimant representative, translator, or current or
former employee of the Social Security Administration), or who
is a physician or other health care provider who submits, or
causes the submission of, medical or other evidence in
connection with any such determination, such person shall be
guilty of a felony and upon conviction thereof shall be fined
under title 18, United States Code, or imprisoned for not more
than ten years, or both.''.
(3) Amendment to title xvi.--Section 1632(a) of such Act (42
U.S.C. 1383a(a)), as amended by subsection (a), is further
amended by striking the period at the end and inserting ``,
except that in the case of a person who receives a fee or other
income for services performed in connection with any
determination with respect to benefits under this title
(including a claimant representative, translator, or current or
former employee of the Social Security Administration), or who
is a physician or other health care provider who submits, or
causes the submission of, medical or other evidence in
connection with any such determination, such person shall be
guilty of a felony and upon conviction thereof shall be fined
under title 18, United States Code, or imprisoned for not more
than ten years, or both.''.
(c) Increased Civil Monetary Penalties for Certain Individuals
Violating Positions of Trust.--Section 1129(a)(1) of the Social Security
Act (42 U.S.C. 1320a-8(a)(1)) is amended,
[[Page 129 STAT. 604]]
in the matter following subparagraph (C), by inserting after
``withholding disclosure of such fact'' the following: ``, except that
in the case of such a person who receives a fee or other income for
services performed in connection with any such determination (including
a claimant representative, translator, or current or former employee of
the Social Security Administration) or who is a physician or other
health care provider who submits, or causes the submission of, medical
or other evidence in connection with any such determination, the amount
of such penalty shall be not more than $7,500''.
(d) No Benefits Payable to Individuals for Whom a Civil Monetary
Penalty Is Imposed for Fraudulently Concealing Work Activity.--Section
222(c)(5) of the Social Security Act (42 U.S.C. 422(c)(5)) is amended by
inserting after ``conviction by a Federal court'' the following: ``, or
the imposition of a civil monetary penalty under section 1129,''.
SEC. 814. REFERENCES TO SOCIAL SECURITY AND MEDICARE IN ELECTRONIC
COMMUNICATIONS.
(a) In General.--Section 1140(a)(1) of the Social Security Act (42
U.S.C. 1320b-10(a)(1)) is amended by inserting ``(including any Internet
or other electronic communication)'' after ``or other communication''.
(b) Each Communication Treated as Separate Violation.--Section
1140(b) of such Act (42 U.S.C. 1320b-10(b)) is amended by inserting
after the second sentence the following: ``In the case of any items
referred to in subsection (a)(1) consisting of Internet or other
electronic communications, each dissemination, viewing, or accessing of
such a communication which contains one or more words, letters, symbols,
or emblems in violation of subsection (a) shall represent a separate
violation''.
SEC. 815. CHANGE TO CAP ADJUSTMENT AUTHORITY.
Section 251(b)(2)(B) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(b)(2)(B)) is amended--
(1) in clause (i)--
(A) in the matter before subclause (I), by striking
``and for the cost associated with conducting
redeterminations of eligibility under title XVI of the
Social Security Act'' and inserting ``, for the cost
associated with conducting redeterminations of
eligibility under title XVI of the Social Security Act,
for the cost of co-operative disability investigation
units, and for the cost associated with the prosecution
of fraud in the programs and operations of the Social
Security Administration by Special Assistant United
States Attorneys'';
(B) in subclause (VI), by striking
``$1,309,000,000'' and inserting ``$1,546,000,000'';
(C) in subclause (VII), by striking
``$1,309,000,000'' and inserting ``$1,462,000,000'';
(D) in subclause (VIII), by striking
``$1,309,000,000'' and inserting ``$1,410,000,000''; and
(E) in subclause (X), by striking ``$1,309,000,000''
and inserting ``$1,302,000,000'';
(2) in clause (ii)(I), by inserting ``, including work-
related continuing disability reviews to determine whether
earnings derived from services demonstrate an individual's
ability to
[[Page 129 STAT. 605]]
engage in substantial gainful activity'' before the semicolon;
and
(3) in clause (ii)(III), by striking ``and
redeterminations'' and inserting ``, redeterminations, co-
operative disability investigation units, and fraud
prosecutions''.
Subtitle B--Promoting Opportunity for Disability Beneficiaries
SEC. 821. TEMPORARY REAUTHORIZATION OF DISABILITY INSURANCE
DEMONSTRATION PROJECT AUTHORITY.
(a) Termination Date.--Section 234(d)(2) of the Social Security Act
(42 U.S.C. 434(d)(2)) is amended by striking ``December 18, 2005'' and
inserting ``December 31, 2021, and the authority to carry out such
projects shall terminate on December 31, 2022''.
(b) Authority to Waive Compliance With Benefits Requirements.--
Section 234(c) of such Act is amended by striking ``December 17, 2005''
and inserting ``December 30, 2021''.
SEC. 822. MODIFICATION OF DEMONSTRATION PROJECT AUTHORITY.
(a) In General.--Section 234(a)(1) of the Social Security Act (42
U.S.C. 434(a)(1)) is amended in the matter preceding subparagraph (A) by
inserting ``to promote attachment to the labor force and'' after
``designed''.
(b) Congressional Review Period.--Section 234(c) of the Social
Security Act (42 U.S.C. 434(c)), as amended by section 821(b) of this
Act, is further amended by inserting ``including the objectives of the
experiment or demonstration project, the expected annual and total
costs, and the dates on which the experiment or demonstration project is
expected to start and finish,'' after ``thereof,''
(c) Additional Requirements.--Section 234 of the Social Security Act
(42 U.S.C. 434), as amended by subsection (b), is further amended by
adding at the end the following:
``(e) Additional Requirements.--In developing and carrying out any
experiment or demonstration project under this section, the Commissioner
may not require any individual to participate in such experiment or
demonstration project and shall ensure--
``(1) that the voluntary participation of individuals in
such experiment or demonstration project is obtained through
informed written consent which satisfies the requirements for
informed consent established by the Commissioner for use in such
experiment or demonstration project in which human subjects are
at risk;
``(2) that any individual's voluntary agreement to
participate in any such experiment or demonstration project may
be revoked by such individual at any time; and
``(3) that such experiment or demonstration project is
expected to yield statistically significant results.''.
(d) Annual Reporting Deadline.--Section 234(d)(1) of such Act is
amended by striking ``June 9'' and inserting ``September 30''.
SEC. 823. PROMOTING OPPORTUNITY DEMONSTRATION PROJECT.
Section 234 of the Social Security Act (42 U.S.C. 434), as amended
by section 822 of this Act, is further amended by adding at the end the
following:
[[Page 129 STAT. 606]]
``(f) Promoting Opportunity Demonstration Project.--
``(1) <<NOTE: Time period. Deadline.>> In general.--The
Commissioner shall carry out a demonstration project under this
subsection as described in paragraph (2) during a 5-year period
beginning not later than January 1, 2017.
``(2) Benefit offset.--Under the demonstration project
described in this paragraph, with respect to any individual
participating in the project who is otherwise entitled to a
benefit under section 223(a)(1) for a month--
``(A) any such benefit otherwise payable to the
individual for such month (other than a benefit payable
for any month prior to the 1st month beginning after the
date on which the individual's entitlement to such
benefit is determined) shall be reduced by $1 for each
$2 by which the individual's earnings derived from
services paid during such month exceeds an amount equal
to the individual's impairment-related work expenses for
such month (as determined under paragraph (3)), except
that such benefit may not be reduced below $0;
``(B) no benefit shall be payable under section 202
on the basis of the wages and self-employment income of
the individual for any month for which the benefit of
such individual under section 223(a)(1) is reduced to $0
pursuant to subparagraph (A);
``(C) entitlement to any benefit described in
subparagraph (A) or (B) shall not terminate due to
earnings derived from services except following the
first month for which such benefit has been reduced to
$0 pursuant to subparagraph (A) (and the trial work
period (as defined in section 222(c)) and extended
period of eligibility shall not apply to any such
individual for any such month); and
``(D) in any case in which such an individual is
entitled to hospital insurance benefits under part A of
title XVIII by reason of section 226(b) and such
individual's entitlement to a benefit described in
subparagraph (A) or (B) or status as a qualified
railroad retirement beneficiary is terminated pursuant
to subparagraph (C), such individual shall be deemed to
be entitled to such benefits or to occupy such status
(notwithstanding the termination of such entitlement or
status) for the period of consecutive months throughout
all of which the physical or mental impairment, on which
such entitlement or status was based, continues, and
throughout all of which such individual would have been
entitled to monthly insurance benefits under title II or
as a qualified railroad retirement beneficiary had such
termination of entitlement or status not occurred, but
not in excess of 93 such months.
``(3) Impairment-related work expenses.--
``(A) In general.--For purposes of paragraph (2)(A)
and except as provided in subparagraph (C), the amount
of an individual's impairment-related work expenses for
a month is deemed to be the minimum threshold amount.
``(B) <<NOTE: Definition. Determination.>> Minimum
threshold amount.--In this paragraph, the term `minimum
threshold amount' means an amount, to be determined by
the Commissioner, which shall not exceed the amount
sufficient to demonstrate that
[[Page 129 STAT. 607]]
an individual has rendered services in a month, as
determined by the Commissioner under section
222(c)(4)(A). The Commissioner may test multiple minimum
threshold amounts.
``(C) Exception for itemized impairment-related work
expenses.--
``(i) In general.--Notwithstanding
subparagraph (A), in any case in which the amount
of such an individual's itemized impairment-
related work expenses (as defined in clause (ii))
for a month is greater than the minimum threshold
amount, the amount of the individual's impairment-
related work expenses for the month shall be equal
to the amount of the individual's itemized
impairment-related work expenses (as so defined)
for the month.
``(ii) Definition.--In this subparagraph, the
term `itemized impairment-related work expenses'
means the amount excluded under section
223(d)(4)(A) from an individual's earnings for a
month in determining whether an individual is able
to engage in substantial gainful activity by
reason of such earnings in such month, except that
such amount does not include the cost to the
individual of any item or service for which the
individual does not provide to the Commissioner a
satisfactory itemized accounting.
``(D) Limitation.--Notwithstanding the other
provisions of this paragraph, for purposes of paragraph
(2)(A), the amount of an individual's impairment-related
work expenses for a month shall not exceed the amount of
earnings derived from services, prescribed by the
Commissioner under regulations issued pursuant to
section 223(d)(4)(A), sufficient to demonstrate an
individual's ability to engage in substantial gainful
activity.''.
SEC. 824. USE OF ELECTRONIC PAYROLL DATA TO IMPROVE PROGRAM
ADMINISTRATION.
(a) In General.--Title XI of the Social Security Act (42 U.S.C. 1301
et seq.) is amended by inserting after section 1183 the following: ``
``information exchange with payroll data providers
``Sec. 1184. (a) <<NOTE: 42 USC 1320e-3.>> In General.--The
Commissioner of Social Security may enter into an information exchange
with a payroll data provider for purposes of--
``(1) efficiently administering--
``(A) monthly insurance benefits under subsections
(d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii),
and (f)(1)(B)(ii) of section 202 and subsection (a)(1)
of section 223; and
``(B) supplemental security income benefits under
title XVI; and
``(2) preventing improper payments of such benefits without
the need for verification by independent or collateral sources.
``(b) <<NOTE: Federal Register, publication. Notice.>> Notification
Requirements.--Before entering into an information exchange pursuant to
subsection (a), the Commissioner shall publish in the Federal Register a
notice describing the
[[Page 129 STAT. 608]]
information exchange and the extent to which the information received
through such exchange is--
``(1) relevant and necessary to--
``(A) accurately determine entitlement to, and the
amount of, benefits described under subparagraph (A) of
subsection (a)(1);
``(B) accurately determine eligibility for, and the
amount of, benefits described in subparagraph (B) of
such subsection; and
``(C) prevent improper payment of such benefits; and
``(2) sufficiently accurate, up-to-date, and complete.
``(c) Definitions.--For purposes of this section:
``(1) Payroll data provider.--The term `payroll data
provider' means payroll providers, wage verification companies,
and other commercial or non-commercial entities that collect and
maintain data regarding employment and wages, without regard to
whether the entity provides such data for a fee or without cost.
``(2) Information exchange.--The term `information exchange'
means the automated comparison of a system of records maintained
by the Commissioner of Social Security with records maintained
by a payroll data provider.''.
(b) Authorization to Access Information Held by Payroll Data
Providers.--
(1) Amendment to title ii.--Section 225 of the Social
Security Act (42 U.S.C. 425) is amended by adding at the end the
following:
``(c) Access to Information Held by Payroll Data Providers.--(1)
The <<NOTE: Determination.>> Commissioner of Social Security may require
each individual who applies for or is entitled to monthly insurance
benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B),
(e)(1)(B)(ii), and (f)(1)(B)(ii) of section 202 and subsection (a)(1) of
section 223 to provide authorization by the individual for the
Commissioner to obtain from any payroll data provider (as defined in
section 1184(c)(1)) any record held by the payroll data provider with
respect to the individual whenever the Commissioner determines the
record is needed in connection with a determination of initial or
ongoing entitlement to such benefits.
``(2) <<NOTE: Termination date.>> An authorization provided by an
individual under this subsection shall remain effective until the
earliest of--
``(A) the rendering of a final adverse decision on the
individual's application or entitlement to benefits under this
title;
``(B) the termination of the individual's entitlement to
benefits under this title; or
``(C) <<NOTE: Notification.>> the express revocation by the
individual of the authorization, in a written notification to
the Commissioner.
``(3) The Commissioner of Social Security is not required to furnish
any authorization obtained pursuant to this subsection to the payroll
data provider.
``(4) <<NOTE: Notification.>> The Commissioner shall inform any
person who provides authorization pursuant to this clause of the
duration and scope of the authorization.
``(5) <<NOTE: Effective date.>> If an individual who applies for or
is entitled to benefits under this title refuses to provide, or revokes,
any authorization under this subsection, subsection (d) shall not apply
to such individual beginning with the first day of the first month in
which he or she refuses or revokes such authorization.''.
[[Page 129 STAT. 609]]
(2) Title xvi.--Section 1631(e)(1)(B) of the Social Security
Act (42 U.S.C. 1383(e)(1)(B)) is amended by adding at the end
the following:
``(iii)(I) <<NOTE: Determination.>> The Commissioner of Social
Security may require each applicant for, or recipient of, benefits under
this title to provide authorization by the applicant, recipient or legal
guardian (or by any other person whose income or resources are material
to the determination of the eligibility of the applicant or recipient
for such benefits) for the Commissioner to obtain from any payroll data
provider (as defined in section 1184(c)(1)) any record held by the
payroll data provider with respect to the applicant or recipient (or any
such other person) whenever the Commissioner determines the record is
needed in connection with a determination of initial or ongoing
eligibility or the amount of such benefits.
``(II) <<NOTE: Termination date.>> An authorization provided by an
applicant, recipient or legal guardian (or any other person whose income
or resources are material to the determination of the eligibility of the
applicant or recipient) under this clause shall remain effective until
the earliest of--
``(aa) the rendering of a final adverse decision on the
applicant's application for eligibility for benefits under this
title;
``(bb) the cessation of the recipient's eligibility for
benefits under this title;
``(cc) <<NOTE: Notification.>> the express revocation by
the applicant, or recipient (or such other person referred to in
subclause (I)) of the authorization, in a written notification
to the Commissioner; or
``(dd) the termination of the basis upon which the
Commissioner considers another person's income and resources
available to the applicant or recipient.
``(III) The Commissioner of Social Security is not required to
furnish any authorization obtained pursuant to this clause to the
payroll data provider.
``(IV) <<NOTE: Notification.>> The Commissioner shall inform any
person who provides authorization pursuant to this clause of the
duration and scope of the authorization.
``(V) <<NOTE: Effective date.>> If an applicant for, or recipient
of, benefits under this title (or any such other person referred to in
subclause (I)) refuses to provide, or revokes, any authorization
required by subclause (I), paragraph (2)(B) and paragraph (10) shall not
apply to such applicant or recipient beginning with the first day of the
first month in which he or she refuses or revokes such authorization.''.
(c) Reporting Responsibilities for Beneficiaries Subject to
Information Exchange With Payroll Data Provider.--
(1) Amendment to title ii.--Section 225 of the Social
Security (42 U.S.C. 425), as amended by subsection (b)(1), is
further amended by adding at the end the following:
``(d) An individual who has authorized the Commissioner of Social
Security to obtain records from a payroll data provider under subsection
(c) shall not be subject to a penalty under section 1129A for any
omission or error with respect to such individual's wages as reported by
the payroll data provider.''.
(2) Amendment to title xvi.--Section 1631(e) of the Social
Security Act (42 U.S.C. 1383(e)) is amended--
(A) in paragraph (2)--
[[Page 129 STAT. 610]]
(i) by striking ``In the case of the failure''
and inserting ``(A) In the case of the failure'';
(ii) by redesignating subparagraphs (A)
through (C) as clauses (i) through (iii),
respectively; and
(iii) by adding at the end the following:
``(B) For purposes of subparagraph (A), the Commissioner of Social
Security shall find that good cause exists for the failure of, or delay
by, an individual in submitting a report of an event or change in
circumstances relevant to eligibility for or amount of benefits under
this title in any case where--
``(i) the individual (or another person referred to in
paragraph (1)(B)(iii)(I)) has provided authorization to the
Commissioner to access payroll data records related to the
individual; and
``(ii) the event or change in circumstance is a change in
the individual's employer.''; and
(B) by adding at the end the following:
``(10) An individual who has authorized the Commissioner of Social
Security to obtain records from a payroll data provider under paragraph
(1)(B)(iii) (or on whose behalf another person described in subclause
(I) of such paragraph has provided such authorization) shall not be
subject to a penalty under section 1129A for any omission or error with
respect to such individual's wages as reported by the payroll data
provider.''.
(d) <<NOTE: Deadline. Procedures. 42 USC 1320e-3 note.>>
Regulations.--Not later than 1 year after the date of the enactment of
this Act, the Commissioner of Social Security shall prescribe by
regulation procedures for implementing the Commissioner's access to and
use of information held by payroll providers, including--
(1) <<NOTE: Guidelines.>> guidelines for establishing and
maintaining information exchanges with payroll providers,
pursuant to section 1184 of the Social Security Act;
(2) beneficiary authorizations;
(3) reduced wage reporting responsibilities for individuals
who authorize the Commissioner to access information held by
payroll data providers through an information exchange; and
(4) <<NOTE: Notification.>> procedures for notifying
individuals in writing when they become subject to such reduced
wage reporting requirements and when such reduced wage reporting
requirements no longer apply to them.
(e) <<NOTE: 42 USC 425 note.>> Effective Date.--The amendments made
by this section shall take effect on the date that is 1 year after the
date of the enactment of this Act.
SEC. 825. TREATMENT OF EARNINGS DERIVED FROM SERVICES.
(a) In General.--Section 223(d)(4) of the Social Security Act (42
U.S.C. 423(d)(4)) is amended by adding at the end the following:
``(C)(i) <<NOTE: Determinations.>> Subject to clause (ii), in
determining when earnings derived from services demonstrate an
individual's ability to engage in substantial gainful activity, such
earnings shall be presumed to have been earned--
``(I) in making a determination of initial entitlement on
the basis of disability, in the month in which the services were
performed from which such earnings were derived; and
``(II) in any other case, in the month in which such
earnings were paid.
[[Page 129 STAT. 611]]
``(ii) A presumption made under clause (i) shall not apply to a
determination described in such clause if--
``(I) the Commissioner can reasonably establish, based on
evidence readily available at the time of such determination,
that the earnings were earned in a different month than when
paid; or
``(II) in any case in which there is a determination that no
benefit is payable due to earnings, after the individual is
notified of the presumption made and provided with an
opportunity to submit additional information along with an
explanation of what additional information is needed, the
individual shows to the satisfaction of the Commissioner that
such earnings were earned in another month.''.
(b) <<NOTE: 42 USC 423 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect upon the date of the enactment of
this Act, or as soon as practicable thereafter.
SEC. 826. <<NOTE: 42 USC 423 note.>> ELECTRONIC REPORTING OF
EARNINGS.
(a) <<NOTE: Deadline.>> In General.--Not later than September 30,
2017, the Commissioner of Social Security shall establish and implement
a system that--
(1) allows an individual entitled to a monthly insurance
benefit based on disability under title II of the Social
Security Act (or a representative of the individual) to report
to the Commissioner the individual's earnings derived from
services through electronic means, including by telephone and
Internet; and
(2) automatically issues a receipt to the individual (or
representative) after receiving each such report.
(b) Supplemental Security Income Reporting System as Model.--The
Commissioner shall model the system established under subsection (a) on
the electronic wage reporting systems for recipients of supplemental
security income under title XVI of such Act.
Subtitle C--Protecting Social Security Benefits
SEC. 831. CLOSURE OF UNINTENDED LOOPHOLES.
(a) Presumed Filing of Application by Individuals Eligible for Old-
Age Insurance Benefits and for Wife's or Husband's Insurance Benefits.--
(1) In general.--Section 202(r) of the Social Security Act
(42 U.S.C. 402(r)) is amended by striking paragraphs (1) and (2)
and inserting the following:
``(1) If an individual is eligible for a wife's or husband's
insurance benefit (except in the case of eligibility pursuant to
clause (ii) of subsection (b)(1)(B) or subsection (c)(1)(B), as
appropriate), in any month for which the individual is entitled
to an old-age insurance benefit, such individual shall be deemed
to have filed an application for wife's or husband's insurance
benefits for such month.
``(2) If an individual is eligible (but for section
202(k)(4)) for an old-age insurance benefit in any month for
which the individual is entitled to a wife's or husband's
insurance benefit (except in the case of entitlement pursuant to
clause (ii) of
[[Page 129 STAT. 612]]
subsection (b)(1)(B) or subsection (c)(1)(B), as appropriate),
such individual shall be deemed to have filed an application for
old-age insurance benefits--
``(A) for such month, or
``(B) if such individual is also entitled to a
disability insurance benefit for such month, in the
first subsequent month for which such individual is not
entitled to a disability insurance benefit.''.
(2) Conforming amendment.--Section 202 of the Social
Security Act (42 U.S.C. 402) is amended--
(A) in subsection (b)(1), by striking subparagraph
(B) and inserting the following:
``(B)(i) has attained age 62, or
``(ii) in the case of a wife, has in her care (individually
or jointly with such individual) at the time of filing such
application a child entitled to a child's insurance benefit on
the basis of the wages and self-employment income of such
individual,''; and
(B) in subsection (c)(1), by striking subparagraph
(B) and inserting the following:
``(B)(i) has attained age 62, or
``(ii) in the case of a husband, has in his care
(individually or jointly with such individual) at the time of
filing such application a child entitled to a child's insurance
benefit on the basis of the wages and self-employment income of
such individual,''.
(3) <<NOTE: Applicability. 42 USC 402 note.>> Effective
date.--The amendments made by this subsection shall apply with
respect to individuals who attain age 62 in any calendar year
after 2015.
(b) Voluntary Suspension of Benefits.--
(1) In general.--Section 202 of the Social Security Act (42
U.S.C. 402) is amended by adding at the end the following:
``(z) Voluntary Suspension.--(1)(A) Except as otherwise provided in
this subsection, any individual who has attained retirement age (as
defined in section 216(l)) and is entitled to old-age insurance benefits
may request that payment of such benefits be suspended--
``(i) <<NOTE: Effective date.>> beginning with the
month following the month in which such request is
received by the Commissioner, and
``(ii) <<NOTE: Termination date.>> ending with the
earlier of the month following the month in which a
request by the individual for a resumption of such
benefits is so received or the month following the month
in which the individual attains the age of 70.
``(2) <<NOTE: Termination date.>> An individual may not suspend
such benefits under this subsection, and any suspension of such benefits
under this subsection shall end, effective with respect to any month in
which the individual becomes subject to--
``(A) mandatory suspension of such benefits under section
202(x);
``(B) termination of such benefits under section 202(n);
``(C) a penalty under section 1129A imposing nonpayment of
such benefits; or
``(D) any other withholding, in whole or in part, of such
benefits under any other provision of law that authorizes
recovery of a debt by withholding such benefits.
[[Page 129 STAT. 613]]
``(3) In the case of an individual who requests that such benefits
be suspended under this subsection, for any month during the period in
which the suspension is in effect--
``(A) no retroactive benefits (as defined in subsection
(j)(4)(B)(iii)) shall be payable to such individual;
``(B) no monthly benefit shall be payable to any other
individual on the basis of such individual's wages and self-
employment income; and
``(C) no monthly benefit shall be payable to such individual
on the basis of another individual's wages and self-employment
income.''.
(2) Conforming amendment.--Section 202(w)(2)(B)(ii) of the
Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended by
inserting ``under section 202(z)'' after ``request''.
(3) <<NOTE: Applicability. 42 USC 402 note.>> Effective
date.--The amendments made by this subsection shall apply with
respect to requests for benefit suspension submitted beginning
at least 180 days after the date of the enactment of this Act.
SEC. 832. REQUIREMENT FOR MEDICAL REVIEW.
(a) In General.--Section 221(h) of the Social Security Act (42
U.S.C. 421(h)) is amended to read as follows:
``(h) <<NOTE: Determination.>> An initial determination under
subsection (a), (c), (g), or (i) shall not be made until the
Commissioner of Social Security has made every reasonable effort to
ensure--
``(1) in any case where there is evidence which indicates
the existence of a mental impairment, that a qualified
psychiatrist or psychologist has completed the medical portion
of the case review and any applicable residual functional
capacity assessment; and
``(2) in any case where there is evidence which indicates
the existence of a physical impairment, that a qualified
physician has completed the medical portion of the case review
and any applicable residual functional capacity assessment.''.
(b) <<NOTE: Applicability. 42 USC 421 note.>> Effective Date.--The
amendment made by subsection (a) shall apply with respect to
determinations of disability made on or after the date that is 1 year
after the date of the enactment of this Act.
SEC. 833. <<NOTE: Time periods.>> REALLOCATION OF PAYROLL TAX
REVENUE.
(1) Wages.--Section 201(b)(1) of the Social Security Act (42
U.S.C. 401(b)(1)) is amended by striking ``and (R) 1.80 per
centum of the wages (as so defined) paid after December 31,
1999, and so reported'' and inserting ``(R) 1.80 per centum of
the wages (as so defined) paid after December 31, 1999, and
before January 1, 2016, and so reported, (S) 2.37 per centum of
the wages (as so defined) paid after December 31, 2015, and
before January 1, 2019, and so reported, and (T) 1.80 per centum
of the wages (as so defined) paid after December 31, 2018, and
so reported,''.
(2) Self-employment income.--Section 201(b)(2) of such Act
(42 U.S.C. 401(b)(2)) is amended by striking ``and (R) 1.80 per
centum of the amount of self-employment income (as so defined)
so reported for any taxable year beginning after December 31,
1999'' and inserting ``(R) 1.80 per centum of the amount of
self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 1999, and before
January 1, 2016, (S) 2.37 per centum of
[[Page 129 STAT. 614]]
the amount of self-employment income (as so defined) so reported
for any taxable year beginning after December 31, 2015, and
before January 1, 2019, and (T) 1.80 per centum of the amount of
self-employment income (as so defined) so reported for any
taxable year beginning after December 31, 2018''.
(3) <<NOTE: Applicability. 42 USC 404.>> Effective date.--
The amendments made by this section shall apply with respect to
wages paid after December 31, 2015, and self-employment income
for taxable years beginning after such date.
SEC. 834. ACCESS TO FINANCIAL INFORMATION FOR WAIVERS AND
ADJUSTMENTS OF RECOVERY.
(a) Access to Financial Information for Old-age, Survivors, and
Disability Insurance Waivers.--Section 204(b) of the Social Security Act
(42 U.S.C. 404(b)) is amended to read as follows:
``(b)(1) <<NOTE: Determinations.>> In any case in which more than
the correct amount of payment has been made, there shall be no
adjustment of payments to, or recovery by the United States from, any
person who is without fault if such adjustment or recovery would defeat
the purpose of this title or would be against equity and good
conscience.
``(2) In making for purposes of this subsection any determination of
whether any individual is without fault, the Commissioner of Social
Security shall specifically take into account any physical, mental,
educational, or linguistic limitation such individual may have
(including any lack of facility with the English language).
``(3)(A) In making for purposes of this subsection any determination
of whether such adjustment or recovery would defeat the purpose of this
title, the Commissioner of Social Security shall require an individual
to provide authorization for the Commissioner to obtain (subject to the
cost reimbursement requirements of section 1115(a) of the Right to
Financial Privacy Act) from any financial institution (within the
meaning of section 1101(1) of such Act) any financial record (within the
meaning of section 1101(2) of such Act) held by the institution with
respect to such individual whenever the Commissioner determines the
record is needed in connection with a determination with respect to such
adjustment or recovery.
``(B) <<NOTE: Termination.>> Notwithstanding section 1104(a)(1) of
the Right to Financial Privacy Act, an authorization provided by an
individual pursuant this paragraph shall remain effective until the
earlier of--
``(i) the rendering of a final decision on whether
adjustment or recovery would defeat the purpose of this title;
or
``(ii) <<NOTE: Notification.>> the express revocation by
the individual of the authorization, in a written notification
to the Commissioner.
``(C)(i) An authorization obtained by the Commissioner of Social
Security pursuant this paragraph shall be considered to meet the
requirements of the Right to Financial Privacy Act for purposes of
section 1103(a) of such Act, and need not be furnished to the financial
institution, notwithstanding section 1104(a) of such Act.
``(ii) The certification requirements of section 1103(b) of the
Right to Financial Privacy Act shall not apply to requests by the
Commissioner of Social Security pursuant to an authorization provided
under this paragraph.
[[Page 129 STAT. 615]]
``(iii) A request by the Commissioner pursuant to an authorization
provided under this paragraph is deemed to meet the requirements of
section 1104(a)(3) of the Right to Financial Privacy Act and the flush
language of section 1102 of such Act.
``(D) <<NOTE: Notification.>> The Commissioner shall inform any
person who provides authorization pursuant to this paragraph of the
duration and scope of the authorization.
``(E) If an individual refuses to provide, or revokes, any
authorization for the Commissioner of Social Security to obtain from any
financial institution any financial record, the Commissioner may, on
that basis, determine that adjustment or recovery would not defeat the
purpose of this title.''.
(b) Access to Financial Information for Supplemental Security Income
Waivers.--
(1) <<NOTE: Determination. Records.>> In general.--Section
1631(b)(1)(B) of the Social Security Act (42 U.S.C.
1383(b)(1)(B)) is amended by adding at the end the following:
``In making for purposes of this subparagraph a determination of
whether an adjustment or recovery would defeat the purpose of
this title, the Commissioner of Social Security shall require an
individual to provide authorization for the Commissioner to
obtain (subject to the cost reimbursement requirements of
section 1115(a) of the Right to Financial Privacy Act) from any
financial institution (within the meaning of section 1101(1) of
such Act) any financial record (within the meaning of section
1101(2) of such Act) held by the institution with respect to
such individual whenever the Commissioner determines that the
record is needed in connection with a determination with respect
to such adjustment or recovery, under the terms and conditions
established under subsection (e)(1)(B).''.
(2) Conforming amendment.--Section 1631(e)(1)(B)(ii)(V) of
such Act (42 U.S.C. 1383(e)(1)(B)(ii)(V)) is amended by
inserting ``, determine that adjustment or recovery on account
of an overpayment with respect to the applicant or recipient
would not defeat the purpose of this title, or both'' before the
period at the end.
(c) <<NOTE: Applicability. 42 USC 404 note.>> Effective Date.--The
amendments made by this section shall apply with respect to
determinations made on or after the date that is 3 months after the date
of the enactment of this section.
Subtitle D--Relieving Administrative Burdens and Miscellaneous
Provisions
SEC. 841. INTERAGENCY COORDINATION TO IMPROVE PROGRAM
ADMINISTRATION.
(a) In General.--Title XI of the Social Security Act (42 U.S.C. 1301
et seq.) is amended by inserting after section 1127 the following:
``interagency coordination to improve program administration
``Sec. 1127A. (a) <<NOTE: Contracts. Procedure. 42 USC 1320a-6a.>>
Coordination Agreement.--Notwithstanding any other provision of law,
including section 207 of this Act, the Commissioner of Social Security
(referred to in this section as
[[Page 129 STAT. 616]]
`the Commissioner') and the Director of the Office of Personnel
Management (referred to in this section as `the Director') shall enter
into an agreement under which a system is established to carry out the
following procedure:
``(1) <<NOTE: Notification. Certification.>> The Director
shall notify the Commissioner when any individual is determined
to be entitled to a monthly disability annuity payment pursuant
to subchapter V of chapter 84 of subpart G of part III of title
5, United States Code, and shall certify that such individual
has provided the authorization described in subsection (f).
``(2) <<NOTE: Determination. Notification.>> If the
Commissioner determines that an individual described in
paragraph (1) is also entitled to past-due benefits under
section 223, the Commissioner shall notify the Director of such
fact.
``(3) <<NOTE: Deadline.>> Not later than 30 days after
receiving a notification described in paragraph (2) with respect
to an individual, the Director shall provide the Commissioner
with the total amount of any disability annuity overpayments
made to such individual, as well as any other information (in
such form and manner as the Commissioner shall require) that the
Commissioner determines is necessary to carry out this section.
``(4) If the Director provides the Commissioner with the
information described in paragraph (3) in a timely manner, the
Commissioner may withhold past-due benefits under section 223 to
which such individual is entitled and may pay the amount
described in paragraph (3) to the Office of Personnel Management
for any disability annuity overpayments made to such individual.
``(5) The Director shall credit any amount received under
paragraph (4) with respect to an individual toward any
disability annuity overpayment owed by such individual.
``(b) Limitations.--
``(1) Priority of Other Reductions.--Benefits shall only be withheld
under this section after any other reduction applicable under this Act,
including sections 206(a)(4), 224, and 1127(a).
``(2) Timely Notification Required.--The Commissioner may not
withhold benefits under this section if the Director does not provide
the notice described in subsection (a)(3) within the time period
described in such subsection.
``(c) Delayed Payment of Past-Due Benefits.--If the Commissioner is
required to make a notification described in subsection (a)(2) with
respect to an individual, the Commissioner shall not make any payment of
past-due benefits under section 223 to such individual until after the
period described in subsection (a)(3).
``(d) Review.--Notwithstanding section 205 or any other provision of
law, any determination regarding the withholding of past-due benefits
under this section shall only be subject to adjudication and review by
the Director under section 8461 of title 5, United States Code.
``(e) Disability Annuity Overpayment Defined.--For purposes of this
section, the term `disability annuity overpayment' means the amount of
the reduction under section 8452(a)(2) of title 5, United States Code,
applicable to a monthly annuity payment made to an individual pursuant
to subchapter V of chapter 84 of subpart G of part III of such title due
to the individual's
[[Page 129 STAT. 617]]
concurrent entitlement to a disability insurance benefit under section
223 during such month.
``(f) Authorization to Withhold Benefits.--The authorization
described in this subsection, with respect to an individual, is written
authorization provided by the individual to the Director which
authorizes the Commissioner to withhold past-due benefits under section
223 to which such individual is entitled in order to pay the amount
withheld to the Office of Personnel Management for any disability
overpayments made to such individual.
``(g) Expenses.--The Director shall pay to the Social Security
Administration an amount equal to the amount estimated by the
Commissioner as the total cost incurred by the Social Security
Administration in carrying out this section for each calendar
quarter.''.
(b) <<NOTE: Applicability. 42 USC 1320a-6a note.>> Effective
Date.--The amendment made by this section shall apply to past-due
disability insurance benefits payable on or after the date that is 1
year after the date of the enactment of this section.
SEC. 842. ELIMINATION OF QUINQUENNIAL DETERMINATIONS RELATING TO
WAGE CREDITS FOR MILITARY SERVICE PRIOR TO
1957.
Section 217(g)(2) of the Social Security Act (42 U.S.C. 417(g)(2))
is amended--
(1) by inserting ``through 2010'' after ``each fifth year
thereafter''; and
(2) by inserting after the first sentence the following:
``The Secretary of Health and Human Services shall revise the
amount determined under paragraph (1) with respect to the
Federal Hospital Insurance Trust Fund under title XVIII in 2015
and each fifth year thereafter through such date, and using such
data, as the Secretary determines appropriate on the basis of
the amount of benefits and administrative expenses actually paid
from such Trust Fund under title XVIII and the relevant
actuarial assumptions set forth in the report of the Board of
Trustees of such Trust Fund for such year under section
1817(b).''.
SEC. 843. CERTIFICATION OF BENEFITS PAYABLE TO A DIVORCED SPOUSE
OF A RAILROAD WORKER TO THE RAILROAD
RETIREMENT BOARD.
Section 205(i) of the Social Security Act (42 U.S.C. 405(i)) is
amended by inserting ``or divorced wife or divorced husband'' after
``the wife or husband''.
SEC. 844. TECHNICAL AMENDMENTS TO ELIMINATE OBSOLETE PROVISIONS.
(a) Elimination of Reference in Section 226 to a Repealed
Provision.--Section 226 of the Social Security Act (42 U.S.C. 426) is
amended--
(1) by striking subsection (i); and
(2) by redesignating subsection (j) as subsection (i).
(b) Elimination of Reference in Section 226A to a Repealed
Provision.--Section 226A of such Act (42 U.S.C. 426-1) is amended by
striking the second subsection (c).
[[Page 129 STAT. 618]]
SEC. 845. REPORTING REQUIREMENTS TO CONGRESS.
(a) Report on Fraud and Improper Payment Prevention Activities.--
Section 704(b) of the Social Security Act (42 U.S.C. 904(b)) is amended
by adding at the end the following:
``(3) <<NOTE: Time period.>> For each fiscal year beginning
with 2016 and ending with 2021, the Commissioner shall include
in the annual budget prepared pursuant to subparagraph (A) a
report describing the purposes for which amounts made available
for purposes described in section 251(b)(2)(B) of the Balanced
Budget and Emergency Deficit Control Act of 1985 for the fiscal
year were expended by the Social Security Administration and the
purposes for which the Commissioner plans for the Administration
to expend such funds in the succeeding fiscal year, including--
``(A) the total such amount expended;
``(B) the amount expended on co-operative disability
investigation units;
``(C) the number of cases of fraud prevented by co-
operative disability investigation units and the amount
expended on such cases (as reported to the Commissioner
by the Inspector General of the Social Security
Administration);
``(D) the number of felony cases prosecuted under
section 208 (as reported to the Commissioner by the
Inspector General) and the amount expended by the Social
Security Administration in supporting the prosecution of
such cases;
``(E) the amount of such felony cases successfully
prosecuted (as reported to the Commissioner by the
Inspector General) and the amount expended by the Social
Security Administration in supporting the prosecution of
such cases;
``(F) the amount expended on and the number of
completed--
``(i) continuing disability reviews conducted
by mail;
``(ii) redeterminations conducted by mail;
``(iii) medical continuing disability reviews
conducted pursuant to section 221(i);
``(iv) medical continuing disability reviews
conducted pursuant to 1614(a)(3)(H);
``(v) redeterminations conducted pursuant to
section 1611(c); and
``(vi) work-related continuing disability
reviews to determine whether earnings derived from
services demonstrate an individual's ability to
engage in substantial gainful activity;
``(G) the number of cases of fraud identified for
which benefits were terminated as a result of medical
continuing disability reviews (as reported to the
Commissioner by the Inspector General), work-related
continuing disability reviews, and redeterminations, and
the amount of resulting savings for each such type of
review or redetermination; and
``(H) the number of work-related continuing
disability reviews in which a beneficiary improperly
reported earnings derived from services for more than 3
consecutive months, and the amount of resulting
savings.''.
(b) <<NOTE: 42 USC 421 note.>> Report on Work-Related Continuing
Disability Reviews.--The Commissioner of Social Security shall annually
[[Page 129 STAT. 619]]
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a report on
the number of work-related continuing disability reviews conducted each
year to determine whether earnings derived from services demonstrate an
individual's ability to engage in substantial gainful activity. Such
report shall include--
(1) the number of individuals receiving benefits based on
disability under title II of such Act for whom reports of
earnings were received from any source by the Commissioner in
the previous calendar year, reported as a total number and
separately by the source of the report;
(2) the number of individuals for whom such reports resulted
in a determination to conduct a work-related continuing
disability review, and the basis on which such determinations
were made;
(3) in the case of a beneficiary selected for a work-related
continuing disability review on the basis of a report of
earnings from any source--
(A) the average number of days--
(i) between the receipt of the report and the
initiation of the review;
(ii) between the initiation and the completion
of the review; and
(iii) the average amount of overpayment, if
any;
(B) the number of such reviews completed during such
calendar year, and the number of such reviews that
resulted in a suspension or termination of benefits;
(C) the number of such reviews initiated in the
current year that had not been completed as of the end
of such calendar year;
(D) the number of such reviews initiated in a prior
year that had not been completed as of the end of such
calendar year;
(4) the total savings to the Trust Funds and the Treasury
generated from benefits suspended or terminated as a result of
such reviews; and
(5) with respect to individuals for whom a work-related
continuing disability review was completed during such calendar
year--
(A) the number who participated in the Ticket to
Work program under section 1148 during such calendar
year;
(B) the number who used any program work incentives
during such calendar year; and
(C) the number who received vocational
rehabilitation services during such calendar year with
respect to which the Commissioner of Social Security
reimbursed a State agency under section 222(d).
(c) <<NOTE: 42 USC 404 note.>> Report on Overpayment Waivers.--Not
later than January 1 of each calendar year, the Commissioner of Social
Security shall submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a report on--
(1) the number and total value of overpayments recovered or
scheduled to be recovered by the Social Security Administration
during the previous fiscal year of benefits under title II and
title XVI, respectively, including the terms and conditions of
repayment of such overpayments; and
[[Page 129 STAT. 620]]
(2) the number and total value of overpayments waived by the
Social Security Administration during the previous fiscal year
of benefits under title II and title XVI, respectively.
SEC. 846. <<NOTE: 42 USC 904 note.>> EXPEDITED EXAMINATION OF
ADMINISTRATIVE LAW JUDGES.
(a) In General.--Notwithstanding any other provision of law, the
Office of Personnel Management shall, upon request of the Commissioner
of Social Security, expeditiously administer a sufficient number of
competitive examinations, as determined by the Commissioner, for the
purpose of identifying an adequate number of candidates to be appointed
as Administrative Law Judges under section 3105 of title 5, United
States Code. <<NOTE: Deadlines.>> The first such examination shall take
place not later than April 1, 2016 and other examinations shall take
place at such time or times requested by the Commissioner, but not later
than December 31, 2022. Such examinations shall proceed even if one or
more individuals who took a prior examination have appealed an adverse
determination and one or more of such appeals have not concluded,
provided that--
(1) the Commissioner of Social Security has made a
determination that delaying the examination poses a significant
risk that an adequate number of Administrative Law Judges will
not be available to meet the need of the Social Security
Administration to reduce or prevent a backlog of cases awaiting
a hearing;
(2) an individual whose appeal is pending is provided an
option to continue their appeal or elects to take the new
examination, in which case the appeal is considered vacated; and
(3) an individual who decides to continue his or her appeal
and who ultimately prevails in the appeal shall receive
expeditious consideration for hire by the Office Personnel
Management and the Commissioner of Social Security.
(b) Payment of Costs.--Notwithstanding any other provision of law,
the Commissioner of Social Security shall pay the full cost associated
with each examination conducted pursuant to subsection (a).
TITLE IX--TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT
SEC. 901. <<NOTE: 31 USC 3101 note. Time period.>> TEMPORARY
EXTENSION OF PUBLIC DEBT LIMIT.
(a) In General.--Section 3101(b) of title 31, United States Code,
shall not apply for the period beginning on the date of the enactment of
this Act and ending on March 15, 2017.
(b) Special Rule Relating to Obligations Issued During Extension
Period.--Effective <<NOTE: Effective date.>> March 16, 2017, the
limitation in effect under section 3101(b) of title 31, United States
Code, shall be increased to the extent that--
(1) the face amount of obligations issued under chapter 31
of such title and the face amount of obligations whose principal
and interest are guaranteed by the United States Government
(except guaranteed obligations held by the Secretary of the
Treasury) outstanding on March 16, 2017, exceeds
(2) the face amount of such obligations outstanding on the
date of the enactment of this Act.
[[Page 129 STAT. 621]]
SEC. 902. <<NOTE: 31 USC 3101 note.>> RESTORING CONGRESSIONAL
AUTHORITY OVER THE NATIONAL DEBT.
(a) Extension Limited to Necessary Obligations.--An obligation shall
not be taken into account under section 901(b)(1) unless the issuance of
such obligation was necessary to fund a commitment incurred pursuant to
law by the Federal Government that required payment before March 16,
2017.
(b) Prohibition on Creation of Cash Reserve During Extension
Period.--The Secretary of the Treasury shall not issue obligations
during the period specified in section 901(a) for the purpose of
increasing the cash balance above normal operating balances in
anticipation of the expiration of such period.
TITLE X--SPECTRUM <<NOTE: Spectrum Pipeline Act of 2015.>> PIPELINE
SEC. 1001. <<NOTE: 47 USC 901 note.>> SHORT TITLE.
This title may be cited as the ``Spectrum Pipeline Act of 2015''.
SEC. 1002. <<NOTE: 47 USC 921 note.>> DEFINITIONS.
In this title:
(1) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications and
Information.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Federal entity.--The term ``Federal entity'' has the
meaning given such term in section 113(l) of the National
Telecommunications and Information Administration Organization
Act (47 U.S.C. 923(l)).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
SEC. 1003. <<NOTE: 47 USC 921 note.>> RULE OF CONSTRUCTION.
Each range of frequencies described in this title shall be construed
to be inclusive of the upper and lower frequencies in the range.
SEC. 1004. <<NOTE: 47 USC 921 note.>> IDENTIFICATION,
REALLOCATION, AND AUCTION OF FEDERAL
SPECTRUM.
(a) <<NOTE: Deadline. Reports.>> Identification of Spectrum.--Not
later than January 1, 2022, the Secretary shall submit to the President
and to the Commission a report identifying 30 megahertz of
electromagnetic spectrum (in bands of not less than 10 megahertz of
contiguous frequencies) below the frequency of 3 gigahertz (except for
the spectrum between the frequencies of 1675 megahertz and 1695
megahertz) for reallocation from Federal use to non-Federal use or
shared Federal and non-Federal use, or a combination thereof.
(b) <<NOTE: President. Deadlines.>> Clearing of Spectrum.--The
President shall--
(1) not later than January 1, 2022, begin the process of
withdrawing or modifying the assignment to a Federal Government
station of the electromagnetic spectrum identified under
subsection (a); and
(2) <<NOTE: Notifications.>> not later than 30 days after
completing the withdrawal or modification, notify the Commission
that the withdrawal or modification is complete.
(c) Reallocation and Auction.--
(1) In general.--The Commission shall--
[[Page 129 STAT. 622]]
(A) reallocate the electromagnetic spectrum
identified under subsection (a) for non-Federal use or
shared Federal and non-Federal use, or a combination
thereof; and
(B) <<NOTE: Deadline.>> notwithstanding paragraph
(15)(A) of section 309(j) of the Communications Act of
1934 (47 U.S.C. 309(j)), not later than July 1, 2024,
begin a system of competitive bidding under such section
to grant new initial licenses for the use of such
spectrum, subject to flexible-use service rules.
(2) Proceeds to cover 110 percent of federal relocation or
sharing costs.--Nothing in paragraph (1) shall be construed to
relieve the Commission from the requirements of section
309(j)(16)(B) of the Communications Act of 1934 (47 U.S.C.
309(j)(16)(B)).
SEC. 1005. ADDITIONAL USES OF SPECTRUM RELOCATION FUND.
(a) In General.--Section 118 of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 928) is amended--
(1) by redesignating subsection (g) as subsection (i); and
(2) by inserting after subsection (f) the following:
``(g) Additional Payments for Research and Development and Planning
Activities.--
``(1) Amounts available.--Notwithstanding subsections (c)
through (e)--
``(A) <<NOTE: Appropriation authorization.>> there
are appropriated from the Fund on the date of the
enactment of the Spectrum Pipeline Act of 2015, and
available to the Director of OMB for use in accordance
with paragraph (2), not more than $500,000,000 from
amounts in the Fund on such date of enactment; and
``(B) there are appropriated from the Fund after
such date of enactment, and available to the Director of
OMB for use in accordance with such paragraph, not more
than 10 percent of the amounts deposited in the Fund
after such date of enactment.
``(2) Use of amounts.--
``(A) In general.--The Director of OMB may use
amounts made available under paragraph (1) to make
payments requested by Federal entities for research and
development, engineering studies, economic analyses,
activities with respect to systems, or other planning
activities intended to improve the efficiency and
effectiveness of the spectrum use of Federal entities in
order to make available frequencies described in
subparagraph (C) for reallocation for non-Federal use or
shared Federal and non-Federal use, or a combination
thereof, and for auction in accordance with such
reallocation.
``(B) Systems that improve efficiency and
effectiveness of federal spectrum use.--For purposes of
a payment under subparagraph (A) for activities with
respect to systems that improve the efficiency and
effectiveness of the spectrum use of Federal entities,
such systems include the following:
``(i) Systems that have increased
functionality or that increase the ability of a
Federal entity to accommodate spectrum sharing
with non-Federal entities.
[[Page 129 STAT. 623]]
``(ii) Systems that consolidate functions or
services that have been provided using separate
systems.
``(iii) Non-spectrum technology or systems.
``(C) Frequencies described.--The frequencies
described in this subparagraph are, with respect to a
payment under subparagraph (A), frequencies that--
``(i) are assigned to a Federal entity; and
``(ii) at the time of the activities conducted
with such payment, are not identified for auction.
``(D) Conditions.--The Director of OMB may not make
a payment to a Federal entity under subparagraph (A)--
``(i) unless--
``(I) <<NOTE: Plans.>> the Federal
entity has submitted to the Technical
Panel established under section
113(h)(3) a plan describing the
activities that the Federal entity will
conduct with such payment;
``(II) the Technical Panel has
approved such plan under subparagraph
(E); and
``(III) the Director of OMB has
submitted the plan approved under
subparagraph (E) to the congressional
committees described in subsection
(d)(2)(C); and
``(ii) <<NOTE: Deadline.>> until 60 days have
elapsed after submission of the plan under clause
(i)(III).
``(E) Review by technical panel.--
``(i) In general.--Not later than 120 days
after a Federal entity submits a plan under
subparagraph (D)(i)(I) to the Technical Panel
established under section 113(h)(3), the Technical
Panel shall approve or disapprove such plan.
``(ii) Criteria for review.--In considering
whether to approve or disapprove a plan under this
subparagraph, the Technical Panel shall consider
whether--
``(I) the activities that the
Federal entity will conduct with the
payment will--
``(aa) increase the
probability of relocation from
or sharing of Federal spectrum;
``(bb) facilitate an auction
intended to occur not later than
8 years after the payment; and
``(cc) increase the net
expected auction proceeds in an
amount not less than the time
value of the amount of the
payment; and
``(II) the transfer will leave
sufficient amounts in the Fund for the
other purposes of the Fund.
``(h) Prioritization of Payments.--In determining whether to make
payments under subsections (f) and (g), the Director of OMB shall, to
the extent practicable, prioritize payments under subsection (g).''.
(b) Administrative Support for Technical Panel.--Section
113(h)(3)(C) of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 923(h)(3)(C)) is amended by
striking ``this subsection and subsection (i)'' and inserting ``this
subsection, subsection (i), and section 118(g)(2)(E)''.
[[Page 129 STAT. 624]]
(c) Eligible Federal Entities.--Section 113 of the National
Telecommunications and Information Administration Organization Act (47
U.S.C. 923) is amended--
(1) in subsection (g)--
(A) in paragraph (1)--
(i) by striking ``authorized to use a band of
eligible frequencies described in paragraph (2)
and'';
(ii) by inserting ``eligible'' after ``auction
of'';
(iii) by inserting ``eligible'' after
``reallocation of''; and
(B) in paragraph (3)(A), by striking ``previously
assigned to such entity or the sharing of spectrum
frequencies assigned to such entity'' and inserting ``or
the sharing of spectrum frequencies''; and
(2) in subsection (h)(1), by striking ``authorized to use
any such frequency''.
SEC. 1006. PLANS FOR AUCTION OF CERTAIN SPECTRUM.
(a) Reports to Congress.--In accordance with each paragraph of
subsection (c), the Commission, in coordination with the Assistant
Secretary, shall submit to the Committee on Energy and Commerce of the
House of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report containing a proposed plan for the
assignment of new licenses for non-Federal use of the spectrum
identified under such paragraph, including--
(1) an assessment of the operations of Federal entities that
operate Federal Government stations authorized to use such
spectrum;
(2) an estimated timeline for the competitive bidding
process; and
(3) a proposed plan for balance between unlicensed and
licensed use.
(b) Information for Assessment of Federal Entity Operations.--The
Assistant Secretary, in coordination with the affected Federal entities,
shall provide to the Commission the necessary information to carry out
subsection (a)(1).
(c) Report Deadlines; Identification of Spectrum.--The Commission
shall submit reports under subsection (a) as follows:
(1) Not later than January 1, 2022, for at least 50
megahertz of spectrum (in bands of not less than 10 megahertz of
contiguous frequencies) below 6 gigahertz, to be identified by
the Commission, in coordination with the Assistant Secretary,
from spectrum other than the spectrum identified under section
1004(a).
(2) Not later than January 1, 2024, for at least 50
megahertz of spectrum (in bands of not less than 10 megahertz of
contiguous frequencies) below 6 gigahertz, to be identified by
the Commission, in coordination with the Assistant Secretary,
from spectrum other than the spectrum identified under paragraph
(1) or section 1004(a).
SEC. 1007. <<NOTE: Expiration date.>> FCC AUCTION AUTHORITY.
Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C.
309(j)(11)) is amended by inserting before the period at the end the
following: ``, except that, with respect to the electromagnetic spectrum
identified under section 1004(a) of the Spectrum Pipeline Act of 2015,
such authority shall expire on September 30, 2025''.
[[Page 129 STAT. 625]]
SEC. 1008. REPORTS TO CONGRESS.
Not later than 3 years after the date of the enactment of this Act,
the Commission shall submit to Congress--
(1) a report containing an analysis of the results of the
rules changes relating to the frequencies between 3550 megahertz
and 3650 megahertz; and
(2) a report containing an analysis of proposals to promote
and identify additional spectrum bands that can be shared
between incumbent uses and new licensed, and unlicensed services
under such rules and identification of at least 1 gigahertz
between 6 gigahertz and 57 GHz for such use.
TITLE XI--REVENUE PROVISIONS RELATED TO TAX COMPLIANCE
SEC. 1101. PARTNERSHIP AUDITS AND ADJUSTMENTS.
(a) Repeal of TEFRA Partnership Audit Rules.--Chapter 63 of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 2601, 6221-6231, 6233,
6234.>> is amended by striking subchapter C (and by striking the item
relating to such subchapter in the table of subchapters for such
chapter).
(b) Repeal of Electing Large Partnership Rules.--
(1) In general.--Subchapter K of chapter 1 of such Code
is <<NOTE: 26 USC prec. 6221.>> amended by striking part IV (and
by striking the item relating to such part in the table of parts
for such subchapter).
(2) Assessment rules relating to electing large
partnerships.--Chapter 63 of such Code is amended by striking
subchapter D (and by striking the item relating to such
subchapter in the table of subchapters for such chapter).
(c) Partnership Audit Reform.--
(1) In general.--Chapter 63 of such Code, as amended by the
preceding provisions of this section, <<NOTE: 26 USC prec.
6621.>> is amended by inserting after subchapter B the following
new subchapter:
``Subchapter C--Treatment of Partnerships
``Part I--In General
``Part II--Partnership Adjustments
``Part III--Procedure
``Part IV--Definitions and Special Rules
``PART I--IN GENERAL
``Sec. 6221. Determination at partnership level.
``Sec. 6222. Partner's return must be consistent with partnership
return.
``Sec. 6223. Designation of partnership representative.
``SEC. 6221. <<NOTE: 26 USC 6221.>> DETERMINATION AT PARTNERSHIP
LEVEL.
``(a) In General.--Any adjustment to items of income, gain, loss,
deduction, or credit of a partnership for a partnership taxable year
(and any partner's distributive share thereof) shall be determined, any
tax attributable thereto shall be assessed and collected, and the
applicability of any penalty, addition to tax, or additional amount
which relates to an adjustment to any such item or share shall be
determined, at the partnership level pursuant to this subchapter.
[[Page 129 STAT. 626]]
``(b) Election Out for Certain Partnerships With 100 or Fewer
Partners, etc.--
``(1) In general.--This subchapter shall not apply with
respect to any partnership for any taxable year if--
``(A) the partnership elects the application of this
subsection for such taxable year,
``(B) for such taxable year the partnership is
required to furnish 100 or fewer statements under
section 6031(b) with respect to its partners,
``(C) each of the partners of such partnership is an
individual, a C corporation, any foreign entity that
would be treated as a C corporation were it domestic, an
S corporation, or an estate of a deceased partner,
``(D) the election--
``(i) is made with a timely filed return for
such taxable year, and
``(ii) includes (in the manner prescribed by
the Secretary) a disclosure of the name and
taxpayer identification number of each partner of
such partnership, and
``(E) <<NOTE: Notification.>> the partnership
notifies each such partner of such election in the
manner prescribed by the Secretary.
``(2) Special rules relating to certain partners.--
``(A) S corporation partners.--In the case of a
partner that is an S corporation--
``(i) the partnership shall only be treated as
meeting the requirements of paragraph (1)(C) with
respect to such partner if such partnership
includes (in the manner prescribed by the
Secretary) a disclosure of the name and taxpayer
identification number of each person with respect
to whom such S corporation is required to furnish
a statement under section 6037(b) for the taxable
year of the S corporation ending with or within
the partnership taxable year for which the
application of this subsection is elected, and
``(ii) the statements such S corporation is
required to so furnish shall be treated as
statements furnished by the partnership for
purposes of paragraph (1)(B).
``(B) Foreign partners.--For purposes of paragraph
(1)(D)(ii), the Secretary may provide for alternative
identification of any foreign partners.
``(C) Other partners.--The Secretary may by
regulation or other guidance prescribe rules similar to
the rules of subparagraph (A) with respect to any
partners not described in such subparagraph or paragraph
(1)(C).
``SEC. 6222. <<NOTE: 26 USC 6222.>> PARTNER'S RETURN MUST BE
CONSISTENT WITH PARTNERSHIP RETURN.
``(a) In General.--A partner shall, on the partner's return, treat
each item of income, gain, loss, deduction, or credit attributable to a
partnership in a manner which is consistent with the treatment of such
income, gain, loss, deduction, or credit on the partnership return.
``(b) Underpayment Due to Inconsistent Treatment Assessed as Math
Error.--Any underpayment of tax by a partner by reason of failing to
comply with the requirements of subsection (a) shall be assessed and
collected in the same manner as if such
[[Page 129 STAT. 627]]
underpayment were on account of a mathematical or clerical error
appearing on the partner's return. Paragraph (2) of section 6213(b)
shall not apply to any assessment of an underpayment referred to in the
preceding sentence.
``(c) Exception for Notification of Inconsistent Treatment.--
``(1) In general.--In the case of any item referred to in
subsection (a), if--
``(A)(i) the partnership has filed a return but the
partner's treatment on the partner's return is (or may
be) inconsistent with the treatment of the item on the
partnership return, or
``(ii) the partnership has not filed a return, and
``(B) the partner files with the Secretary a
statement identifying the inconsistency,
subsections (a) and (b) shall not apply to such item.
``(2) Partner receiving incorrect information.--A partner
shall be treated as having complied with subparagraph (B) of
paragraph (1) with respect to an item if the partner--
``(A) demonstrates to the satisfaction of the
Secretary that the treatment of the item on the
partner's return is consistent with the treatment of the
item on the statement furnished to the partner by the
partnership, and
``(B) elects to have this paragraph apply with
respect to that item.
``(d) Final Decision on Certain Positions Not Binding on
Partnership.--Any final decision with respect to an inconsistent
position identified under subsection (c) in a proceeding to which the
partnership is not a party shall not be binding on the partnership.
``(e) Addition to Tax for Failure to Comply With Section.--For
addition to tax in the case of a partner's disregard of the requirements
of this section, see part II of subchapter A of chapter 68.
``SEC. 6223. <<NOTE: 26 USC 6223.>> PARTNERS BOUND BY ACTIONS OF
PARTNERSHIP.
``(a) Designation of Partnership Representative.--Each partnership
shall designate (in the manner prescribed by the Secretary) a partner
(or other person) with a substantial presence in the United States as
the partnership representative who shall have the sole authority to act
on behalf of the partnership under this subchapter. In any case in which
such a designation is not in effect, the Secretary may select any person
as the partnership representative.
``(b) Binding Effect.--A partnership and all partners of such
partnership shall be bound--
``(1) by actions taken under this subchapter by the
partnership, and
``(2) by any final decision in a proceeding brought under
this subchapter with respect to the partnership.
``PART II--PARTNERSHIP <<NOTE: 26 USC prec. 6225.>> ADJUSTMENTS
``Sec. 6225. Partnership adjustment by Secretary.
``Sec. 6226. Alternative to payment of imputed underpayment by
partnership.
``Sec. 6227. Administrative adjustment request by partnership.
[[Page 129 STAT. 628]]
``SEC. 6225. <<NOTE: 26 USC 6225.>> PARTNERSHIP ADJUSTMENT BY
SECRETARY.
``(a) In General.--In the case of any adjustment by the Secretary in
the amount of any item of income, gain, loss, deduction, or credit of a
partnership, or any partner's distributive share thereof--
``(1) the partnership shall pay any imputed underpayment
with respect to such adjustment in the adjustment year as
provided in section 6232, and
``(2) any adjustment that does not result in an imputed
underpayment shall be taken into account by the partnership in
the adjustment year--
``(A) except as provided in subparagraph (B), as a
reduction in non-separately stated income or an increase
in non-separately stated loss (whichever is appropriate)
under section 702(a)(8), or
``(B) in the case of an item of credit, as a
separately stated item.
``(b) Determination of Imputed Underpayments.--For purposes of this
subchapter--
``(1) In general.--Except as provided in subsection (c), any
imputed underpayment with respect to any partnership adjustment
for any reviewed year shall be determined--
``(A) by netting all adjustments of items of income,
gain, loss, or deduction and multiplying such net amount
by the highest rate of tax in effect for the reviewed
year under section 1 or 11,
``(B) by treating any net increase or decrease in
loss under subparagraph (A) as a decrease or increase,
respectively, in income, and
``(C) by taking into account any adjustments to
items of credit as an increase or decrease, as the case
may be, in the amount determined under subparagraph (A).
``(2) Adjustments to distributive shares of partners not
netted.--In the case of any adjustment which reallocates the
distributive share of any item from one partner to another, such
adjustment shall be taken into account under paragraph (1) by
disregarding--
``(A) any decrease in any item of income or gain,
and
``(B) any increase in any item of deduction, loss,
or credit.
``(c) <<NOTE: Procedures.>> Modification of Imputed
Underpayments.--
``(1) In general.--The Secretary shall establish procedures
under which the imputed underpayment amount may be modified
consistent with the requirements of this subsection.
``(2) Amended returns of partners.--
``(A) In general.--Such procedures shall provide
that if--
``(i) one or more partners file returns
(notwithstanding section 6511) for the taxable
year of the partners which includes the end of the
reviewed year of the partnership,
``(ii) such returns take into account all
adjustments under subsection (a) properly
allocable to such partners (and for any other
taxable year with respect to which any tax
attribute is affected by reason of such
adjustments), and
[[Page 129 STAT. 629]]
``(iii) payment of any tax due is included
with such return,
then the imputed underpayment amount shall be determined
without regard to the portion of the adjustments so
taken into account.
``(B) <<NOTE: Applicability.>> Reallocation of
distributive share.--In the case of any adjustment which
reallocates the distributive share of any item from one
partner to another, paragraph (2) shall apply only if
returns are filed by all partners affected by such
adjustment.
``(3) Tax-exempt partners.--Such procedures shall provide
for determining the imputed underpayment without regard to the
portion thereof that the partnership demonstrates is allocable
to a partner that would not owe tax by reason of its status as a
tax-exempt entity (as defined in section 168(h)(2)).
``(4) Modification of applicable highest tax rates.--
``(A) In general.--Such procedures shall provide for
taking into account a rate of tax lower than the rate of
tax described in subsection (b)(1)(A) with respect to
any portion of the imputed underpayment that the
partnership demonstrates is allocable to a partner
which--
``(i) in the case of ordinary income, is a C
corporation, or
``(ii) in the case of a capital gain or
qualified dividend, is an individual.
In no event shall the lower rate determined under the
preceding sentence be less than the highest rate in
effect with respect to the income and taxpayer described
in clause (i) or clause (ii), as the case may be. For
purposes of clause (ii), an S corporation shall be
treated as an individual.
``(B) <<NOTE: Determination.>> Portion of imputed
underpayment to which lower rate applies.--
``(i) In general.--Except as provided in
clause (ii), the portion of the imputed
underpayment to which the lower rate applies with
respect to a partner under subparagraph (A) shall
be determined by reference to the partners'
distributive share of items to which the imputed
underpayment relates.
``(ii) Rule in case of varied treatment of
items among partners.--If the imputed underpayment
is attributable to the adjustment of more than 1
item, and any partner's distributive share of such
items is not the same with respect to all such
items, then the portion of the imputed
underpayment to which the lower rate applies with
respect to a partner under subparagraph (A) shall
be determined by reference to the amount which
would have been the partner's distributive share
of net gain or loss if the partnership had sold
all of its assets at their fair market value as of
the close of the reviewed year of the partnership.
``(5) Other procedures for modification of imputed
underpayment.--The Secretary may by regulations or guidance
provide for additional procedures to modify imputed underpayment
amounts on the basis of such other factors as the Secretary
determines are necessary or appropriate to carry out the
purposes of this subsection.
[[Page 129 STAT. 630]]
``(6) <<NOTE: Deadline. Time period.>> Year and day for
submission to secretary.--Anything required to be submitted
pursuant to paragraph (1) shall be submitted to the Secretary
not later than the close of the 270-day period beginning on the
date on which the notice of a proposed partnership adjustment is
mailed under section 6231 unless such period is extended with
the consent of the Secretary.
``(7) Decision of secretary.--Any modification of the
imputed underpayment amount under this subsection shall be made
only upon approval of such modification by the Secretary.
``(d) Definitions.--For purposes of this subchapter--
``(1) Reviewed year.--The term `reviewed year' means the
partnership taxable year to which the item being adjusted
relates.
``(2) Adjustment year.--The term `adjustment year' means the
partnership taxable year in which--
``(A) in the case of an adjustment pursuant to the
decision of a court in a proceeding brought under
section 6234, such decision becomes final,
``(B) in the case of an administrative adjustment
request under section 6227, such administrative
adjustment request is made, or
``(C) in any other case, notice of the final
partnership adjustment is mailed under section 6231.
``SEC. 6226. <<NOTE: 26 USC 6226.>> ALTERNATIVE TO PAYMENT OF
IMPUTED UNDERPAYMENT BY PARTNERSHIP.
``(a) In General.--If the partnership--
``(1) <<NOTE: Deadline. Notice.>> not later than 45 days
after the date of the notice of final partnership adjustment,
elects the application of this section with respect to an
imputed underpayment, and
``(2) at such time and in such manner as the Secretary may
provide, furnishes to each partner of the partnership for the
reviewed year and to the Secretary a statement of the partner's
share of any adjustment to income, gain, loss, deduction, or
credit (as determined in the notice of final partnership
adjustment),
section 6225 shall not apply with respect to such underpayment and each
such partner shall take such adjustment into account as provided in
subsection (b). The election under paragraph (1) shall be made in such
manner as the Secretary may provide and, once made, shall be revocable
only with the consent of the Secretary.
``(b) Adjustments Taken Into Account by Partner.--
``(1) Tax imposed in year of statement.--Each partner's tax
imposed by chapter 1 for the taxable year which includes the
date the statement was furnished under subsection (a) shall be
increased by the aggregate of the adjustment amounts determined
under paragraph (2) for the taxable years referred to therein.
``(2) Adjustment amounts.--The adjustment amounts determined
under this paragraph are--
``(A) in the case of the taxable year of the partner
which includes the end of the reviewed year, the amount
by which the tax imposed under chapter 1 would increase
if the partner's share of the adjustments described in
subsection (a) were taken into account for such taxable
year, plus
[[Page 129 STAT. 631]]
``(B) in the case of any taxable year after the
taxable year referred to in subparagraph (A) and before
the taxable year referred to in paragraph (1), the
amount by which the tax imposed under chapter 1 would
increase by reason of the adjustment to tax attributes
under paragraph (3).
``(3) Adjustment of tax attributes.--Any tax attribute which
would have been affected if the adjustments described in
subsection (a) were taken into account for the taxable year
referred to in paragraph (2)(A) shall--
``(A) in the case of any taxable year referred to in
paragraph (2)(B), be appropriately adjusted for purposes
of applying such paragraph, and
``(B) in the case of any subsequent taxable year, be
appropriately adjusted.
``(c) <<NOTE: Determination.>> Penalties and Interest.--
``(1) Penalties.--Notwithstanding subsections (a) and (b),
any penalties, additions to tax, or additional amount shall be
determined as provided under section 6221 and the partners of
the partnership for the reviewed year shall be liable for any
such penalty, addition to tax, or additional amount.
``(2) Interest.--In the case of an imputed underpayment with
respect to which the application of this section is elected,
interest shall be determined--
``(A) at the partner level,
``(B) from the due date of the return for the
taxable year to which the increase is attributable
(determined by taking into account any increases
attributable to a change in tax attributes for a taxable
year under subsection (b)(2)), and
``(C) at the underpayment rate under section
6621(a)(2), determined by substituting `5 percentage
points' for `3 percentage points' in subparagraph (B)
thereof.
``SEC. 6227. <<NOTE: 26 USC 6227.>> ADMINISTRATIVE ADJUSTMENT
REQUEST BY PARTNERSHIP.
``(a) In General.--A partnership may file a request for an
administrative adjustment in the amount of one or more items of income,
gain, loss, deduction, or credit of the partnership for any partnership
taxable year.
``(b) <<NOTE: Determination.>> Adjustment.--Any such adjustment
under subsection (a) shall be determined and taken into account for the
partnership taxable year in which the administrative adjustment request
is made--
``(1) by the partnership under rules similar to the rules of
section 6225 (other than paragraphs (2), (6) and (7) of
subsection (c) thereof) for the partnership taxable year in
which the administrative adjustment request is made, or
``(2) by the partnership and partners under rules similar to
the rules of section 6226 (determined without regard to the
substitution described in subsection (c)(2)(C) thereof).
In the case <<NOTE: Applicability.>> of an adjustment that would not
result in an imputed underpayment, paragraph (1) shall not apply and
paragraph (2) shall apply with appropriate adjustments.
``(c) Period of Limitations.--A partnership may not file such a
request more than 3 years after the later of--
``(1) the date on which the partnership return for such year
is filed, or
[[Page 129 STAT. 632]]
``(2) the last day for filing the partnership return for
such year (determined without regard to extensions).
In no event may a partnership file such a request after a notice of an
administrative proceeding with respect to the taxable year is mailed
under section 6231.
``PART <<NOTE: 26 USC 6231 note.>> 1--PROCEDURE
``Sec. 6231. Notice of proceedings and adjustment.
``Sec. 6232. Assessment, collection, and payment.
``Sec. 6233. Interest and penalties.
``Sec. 6234. Judicial review of partnership adjustment.
``Sec. 6235. Period of limitations on making adjustments.
``SEC. 6231. <<NOTE: 26 USC 6231.>> NOTICE OF PROCEEDINGS AND
ADJUSTMENT.
``(a) <<NOTE: Mailings.>> In General.--The Secretary shall mail to
the partnership and the partnership representative--
``(1) notice of any administrative proceeding initiated at
the partnership level with respect to an adjustment of any item
of income, gain, loss, deduction, or credit of a partnership for
a partnership taxable year, or any partner's distributive share
thereof,
``(2) notice of any proposed partnership adjustment
resulting from such proceeding, and
``(3) notice of any final partnership adjustment resulting
from such proceeding.
Any <<NOTE: Deadline.>> notice of a final partnership adjustment shall
not be mailed earlier than 270 days after the date on which the notice
of the proposed partnership adjustment is mailed. Such notices shall be
sufficient if mailed to the last known address of the partnership
representative or the partnership (even if the partnership has
terminated its existence). The first sentence shall apply to any
proceeding with respect to an administrative adjustment request filed by
a partnership under section 6227.
``(b) Further Notices Restricted.--If the Secretary mails a notice
of a final partnership adjustment to any partnership for any partnership
taxable year and the partnership files a petition under section 6234
with respect to such notice, in the absence of a showing of fraud,
malfeasance, or misrepresentation of a material fact, the Secretary
shall not mail another such notice to such partnership with respect to
such taxable year.
``(c) Authority to Rescind Notice With Partnership Consent.--The
Secretary may, with the consent of the partnership, rescind any notice
of a partnership adjustment mailed to such partnership. Any notice so
rescinded shall not be treated as a notice of a partnership adjustment
for purposes of this subchapter, and the taxpayer shall have no right to
bring a proceeding under section 6234 with respect to such notice.
``SEC. 6232. <<NOTE: 26 USC 6232.>> ASSESSMENT, COLLECTION, AND
PAYMENT.
``(a) In General.--Any imputed underpayment shall be assessed and
collected in the same manner as if it were a tax imposed for the
adjustment year by subtitle A, except that in the case of an
administrative adjustment request to which section 6227(b)(1) applies,
the underpayment shall be paid when the request is filed.
``(b) Limitation on Assessment.--Except as otherwise provided in
this chapter, no assessment of a deficiency may be made (and no levy or
proceeding in any court for the collection of any amount
[[Page 129 STAT. 633]]
resulting from such adjustment may be made, begun or prosecuted)
before--
``(1) <<NOTE: Time period.>> the close of the 90th day
after the day on which a notice of a final partnership
adjustment was mailed, and
``(2) if a petition is filed under section 6234 with respect
to such notice, the decision of the court has become final.
``(c) <<NOTE: Courts.>> Premature Action May Be Enjoined.--
Notwithstanding section 7421(a), any action which violates subsection
(b) may be enjoined in the proper court, including the Tax Court. The
Tax Court shall have no jurisdiction to enjoin any action under this
subsection unless a timely petition has been filed under section 6234
and then only in respect of the adjustments that are the subject of such
petition.
``(d) Exceptions to Restrictions on Adjustments.--
``(1) Adjustments arising out of math or clerical errors.--
``(A) <<NOTE: Notification. Applicability.>> In
general.-- If the partnership is notified that, on
account of a mathematical or clerical error appearing on
the partnership return, an adjustment to a item is
required, rules similar to the rules of paragraphs (1)
and (2) of section 6213(b) shall apply to such
adjustment.
``(B) Special rule.--If a partnership is a partner
in another partnership, any adjustment on account of
such partnership's failure to comply with the
requirements of section 6222(a) with respect to its
interest in such other partnership shall be treated as
an adjustment referred to in subparagraph (A), except
that paragraph (2) of section 6213(b) shall not apply to
such adjustment.
``(2) <<NOTE: Notice.>> Partnership may waive
restrictions.--The partnership may at any time (whether or not
any notice of partnership adjustment has been issued), by a
signed notice in writing filed with the Secretary, waive the
restrictions provided in subsection (b) on the making of any
partnership adjustment.
``(e) Limit Where No Proceeding Begun.--If no proceeding under
section 6234 is begun with respect to any notice of a final partnership
adjustment during the 90-day period described in subsection (b) thereof,
the amount for which the partnership is liable under section 6225 shall
not exceed the amount determined in accordance with such notice.
``SEC. 6233. <<NOTE: 26 USC 6233.>> INTEREST AND PENALTIES.
``(a) Interest and Penalties Determined From Reviewed Year.--
``(1) In general.--Except to the extent provided in section
6226(c), in the case of a partnership adjustment for a reviewed
year--
``(A) interest shall be computed under paragraph
(2), and
``(B) the partnership shall be liable for any
penalty, addition to tax, or additional amount as
provided in paragraph (3).
``(2) <<NOTE: Time period.>> Determination of amount of
interest.--The interest computed under this paragraph with
respect to any partnership adjustment is the interest which
would be determined under chapter 67 for the period beginning on
the day after the return due date for the reviewed year and
ending on the return due date for the adjustment year (or, if
earlier,
[[Page 129 STAT. 634]]
the date payment of the imputed underpayment is made). Proper
adjustments in the amount determined under the preceding
sentence shall be made for adjustments required for partnership
taxable years after the reviewed year and before the adjustment
year by reason of such partnership adjustment.
``(3) <<NOTE: Determination.>> Penalties.--Any penalty,
addition to tax, or additional amount shall be determined at the
partnership level as if such partnership had been an individual
subject to tax under chapter 1 for the reviewed year and the
imputed underpayment were an actual underpayment (or
understatement) for such year.
``(b) <<NOTE: Determination.>> Interest and Penalties With Respect
to Adjustment Year Return.--
``(1) In general.--In the case of any failure to pay an
imputed underpayment on the date prescribed therefor, the
partnership shall be liable--
``(A) for interest as determined under paragraph
(2), and
``(B) for any penalty, addition to tax, or
additional amount as determined under paragraph (3).
``(2) Interest.--Interest determined under this paragraph is
the interest that would be determined by treating the imputed
underpayment as an underpayment of tax imposed in the adjustment
year.
``(3) Penalties.--Penalties, additions to tax, or additional
amounts determined under this paragraph are the penalties,
additions to tax, or additional amounts that would be
determined--
``(A) by applying section 6651(a)(2) to such failure
to pay, and
``(B) by treating the imputed underpayment as an
underpayment of tax for purposes of part II of
subchapter A of chapter 68.
``SEC. 6234. <<NOTE: 26 USC 6234.>> JUDICIAL REVIEW OF
PARTNERSHIP ADJUSTMENT.
``(a) <<NOTE: Deadline.>> In General.--Within 90 days after the
date on which a notice of a final partnership adjustment is mailed under
section 6231 with respect to any partnership taxable year, the
partnership may file a petition for a readjustment for such taxable year
with--
``(1) the Tax Court,
``(2) the district court of the United States for the
district in which the partnership's principal place of business
is located, or
``(3) the Claims Court.
``(b) Jurisdictional Requirement for Bringing Action in District
Court or Claims Court.--
``(1) In general.--A readjustment petition under this
section may be filed in a district court of the United States or
the Claims Court only if the partnership filing the petition
deposits with the Secretary, on or before the date the petition
is filed, the amount of the imputed underpayment (as of the date
of the filing of the petition) if the partnership adjustment was
made as provided by the notice of final partnership adjustment.
The court may by order provide that the jurisdictional
requirements of this paragraph are satisfied where there has
been a good faith attempt to satisfy such requirement and
[[Page 129 STAT. 635]]
any shortfall of the amount required to be deposited is timely
corrected.
``(2) Interest payable.--Any amount deposited under
paragraph (1), while deposited, shall not be treated as a
payment of tax for purposes of this title (other than chapter
67).
``(c) Scope of Judicial Review.--A court with which a petition is
filed in accordance with this section shall have jurisdiction to
determine all items of income, gain, loss, deduction, or credit of the
partnership for the partnership taxable year to which the notice of
final partnership adjustment relates, the proper allocation of such
items among the partners, and the applicability of any penalty, addition
to tax, or additional amount for which the partnership may be liable
under this subchapter.
``(d) Determination of Court Reviewable.--Any determination by a
court under this section shall have the force and effect of a decision
of the Tax Court or a final judgment or decree of the district court or
the Claims Court, as the case may be, and shall be reviewable as such.
The date of any such determination shall be treated as being the date of
the court's order entering the decision.
``(e) Effect of Decision Dismissing Action.--If an action brought
under this section is dismissed other than by reason of a rescission
under section 6231(c), the decision of the court dismissing the action
shall be considered as its decision that the notice of final partnership
adjustment is correct, and an appropriate order shall be entered in the
records of the court.
``SEC. 6235. <<NOTE: 26 USC 6235.>> PERIOD OF LIMITATIONS ON
MAKING ADJUSTMENTS.
``(a) In General.--Except as otherwise provided in this section, no
adjustment under this subpart for any partnership taxable year may be
made after the later of--
``(1) the date which is 3 years after the latest of--
``(A) the date on which the partnership return for
such taxable year was filed,
``(B) the return due date for the taxable year, or
``(C) the date on which the partnership filed an
administrative adjustment request with respect to such
year under section 6227, or
``(2) in the case of any modification of an imputed
underpayment under section 6225(c), the date that is 270 days
(plus the number of days of any extension consented to by the
Secretary under paragraph (4) thereof) after the date on which
everything required to be submitted to the Secretary pursuant to
such section is so submitted, or
``(3) in the case of any notice of a proposed partnership
adjustment under section 6231(a)(2), the date that is 270 days
after the date of such notice.
``(b) Extension by Agreement.--The period described in subsection
(a) (including an extension period under this subsection) may be
extended by an agreement entered into by the Secretary and the
partnership before the expiration of such period.
``(c) Special Rule in Case of Fraud, etc.--
``(1) False return.--In the case of a false or fraudulent
partnership return with intent to evade tax, the adjustment may
be made at any time.
``(2) <<NOTE: Applicability.>> Substantial omission of
income.--If any partnership omits from gross income an amount
properly includible therein
[[Page 129 STAT. 636]]
and such amount is described in section 6501(e)(1)(A),
subsection (a) shall be applied by substituting `6 years' for `3
years'.
``(3) No return.--In the case of a failure by a partnership
to file a return for any taxable year, the adjustment may be
made at any time.
``(4) Return filed by secretary.--For purposes of this
section, a return executed by the Secretary under subsection (b)
of section 6020 on behalf of the partnership shall not be
treated as a return of the partnership.
``(d) Suspension When Secretary Mails Notice of Adjustment.--If
notice of a final partnership adjustment with respect to any taxable
year is mailed under section 6231, the running of the period specified
in subsection (a) (as modified by the other provisions of this section)
shall be suspended--
``(1) <<NOTE: Time period.>> for the period during which an
action may be brought under section 6234 (and, if a petition is
filed under such section with respect to such notice, until the
decision of the court becomes final), and
``(2) for 1 year thereafter.
``PART 2--DEFINITIONS <<NOTE: 26 USC prec. 6241.>> AND SPECIAL RULES
``Sec. 6241. Definitions and special rules.
``SEC. 6241. <<NOTE: 26 USC 6241.>> DEFINITIONS AND SPECIAL
RULES.
``For purposes of this subchapter--
``(1) Partnership.--The term `partnership' means any
partnership required to file a return under section 6031(a).
``(2) Partnership adjustment.--The term `partnership
adjustment' means any adjustment in the amount of any item of
income, gain, loss, deduction, or credit of a partnership, or
any partner's distributive share thereof.
``(3) Return due date.--The term `return due date' means,
with respect to the taxable year, the date prescribed for filing
the partnership return for such taxable year (determined without
regard to extensions).
``(4) Payments nondeductible.--No deduction shall be allowed
under subtitle A for any payment required to be made by a
partnership under this subchapter.
``(5) Partnerships having principal place of business
outside united states.--For purposes of sections 6234, a
principal place of business located outside the United States
shall be treated as located in the District of Columbia.
``(6) Partnerships in cases under title 11 of united states
code.--
``(A) Suspension of period of limitations on making
adjustment, assessment, or collection.--
The <<NOTE: Applicability.>> running of any period of
limitations provided in this subchapter on making a
partnership adjustment (or provided by section 6501 or
6502 on the assessment or collection of any imputed
underpayment determined under this subchapter) shall, in
a case under title 11 of the United States Code, be
suspended during the period during which the Secretary
is prohibited by reason of such case from making the
adjustment (or assessment or collection) and--
[[Page 129 STAT. 637]]
``(i) for adjustment or assessment, 60 days
thereafter, and
``(ii) for collection, 6 months thereafter.
A rule similar to the rule of section 6213(f)(2) shall
apply for purposes of section 6232(b).
``(B) Suspension of period of limitation for filing
for judicial review.--The running of the period
specified in section 6234 shall, in a case under title
11 of the United States Code, be suspended during the
period during which the partnership is prohibited by
reason of such case from filing a petition under section
6234 and for 60 days thereafter.
``(7) Treatment where partnership ceases to exist.--If a
partnership ceases to exist before a partnership adjustment
under this subchapter takes effect, such adjustment shall be
taken into account by the former partners of such partnership
under regulations prescribed by the Secretary.
``(8) Extension to entities filing partnership return.--If a
partnership return is filed by an entity for a taxable year but
it is determined that the entity is not a partnership (or that
there is no entity) for such year, then, to the extent provided
in regulations, the provisions of this subchapter are hereby
extended in respect of such year to such entity and its items
and to persons holding an interest in such entity.''.
(2) Clerical amendment.--The table of subchapters for
chapter 63 of the Internal Revenue Code of 1986, as amended by
the preceding provisions of this section, <<NOTE: 26 USC prec.
6201.>> is amended by inserting after the item relating to
subchapter B the following new item:
``subchapter c. treatment of partnerships.''.
(d) Binding Nature of Partnership Adjustment Proceedings.--Section
6330(c)(4) of such Code <<NOTE: 26 USC 6330.>> is amended by striking
``or'' at the end of subparagraph (A), by striking the period at the end
of subparagraph (B) and inserting ``; or'', and by inserting after
subparagraph (B) the following new subparagraph:
``(C) <<NOTE: Determination.>> a final
determination has been made with respect to such issue
in a proceeding brought under subchapter C of chapter
63.''.
(e) Restriction on Authority to Amend Partner Information
Statements.--Section 6031(b) of such Code is amended by adding at the
end the following: ``Except as provided in the procedures under section
6225(c), with respect to statements under section 6226, or as otherwise
provided by the Secretary, information required to be furnished by the
partnership under this subsection may not be amended after the due date
of the return under subsection (a) to which such information relates.''.
(f) Conforming Amendments.--
(1) Section 6031(b) of such Code is amended by striking the
last sentence.
(2) Section 6422 of such Code is amended by striking
paragraph (12).
(3) Section 6501(n) of such Code is amended by striking
paragraphs (2) and (3) and by striking ``Cross References'' and
all that follows through ``For period of limitations'' and
inserting ``Cross Reference.--For period of limitations''.
[[Page 129 STAT. 638]]
(4) Section 6503(a)(1) of such Code <<NOTE: 26 USC
6503.>> is amended by striking ``(or section 6229'' and all that
follows through ``of section 6230(a))''.
(5) Section 6504 of such Code is amended by striking
paragraph (11).
(6) Section 6511 of such Code is amended by striking
subsection (g).
(7) Section 6512(b)(3) of such Code is amended by striking
the second sentence.
(8) Section 6515 of such Code is amended by striking
paragraph (6).
(9) Section 6601(c) of such Code is amended by striking the
last sentence.
(10) Section 7421(a) of such Code is amended by striking
``6225(b), 6246(b)'' and inserting ``6232(c)''.
(11) Section 7422 of such Code is amended by striking
subsection (h).
(12) Section 7459(c) of such Code is amended by striking
``section 6226'' and all that follows through ``or 6252'' and
inserting ``section 6234''.
(13) Section 7482(b)(1) of such Code is amended--
(A) in subparagraph (E), by striking ``section 6226,
6228, 6247, or 6252'' and inserting ``section 6234'',
(B) by striking subparagraph (F), by striking ``or''
at the end of subparagraph (E) and inserting a period,
and by inserting ``or'' at the end of subparagraph (D),
and
(C) in the last sentence, by striking ``section
6226, 6228(a), or 6234(c)'' and inserting ``section
6234''.
(14) Section 7485(b) of such Code is amended by striking
``section 6226, 6228(a), 6247, or 6252'' and inserting ``section
6234''.
(g) <<NOTE: Applicability. 26 USC 6221 note.>> Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
returns filed for partnership taxable years beginning after
December 31, 2017.
(2) Administrative adjustment requests.--In the case of
administrative adjustment request under section 6227 of such
Code, the amendments made by this section shall apply to
requests with respect to returns filed for partnership taxable
years beginning after December 31, 2017.
(3) Adjusted partners statements.--In the case of a
partnership electing the application of section 6226 of such
Code, the amendments made by this section shall apply to
elections with respect to returns filed for partnership taxable
years beginning after December 31, 2017.
(4) Election.--A partnership may elect (at such time and in
such form and manner as the Secretary of the Treasury may
prescribe) for the amendments made by this section (other than
the election under section 6221(b) of such Code (as added by
this Act)) to apply to any return of the partnership filed for
partnership taxable years beginning after the date of the
enactment of this Act and before January 1, 2018.
SEC. 1102. PARTNERSHIP INTERESTS CREATED BY GIFT.
(a) <<NOTE: Determination.>> In General.--Section 761(b) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following: ``In the
[[Page 129 STAT. 639]]
case of a capital interest in a partnership in which capital is a
material income-producing factor, whether a person is a partner with
respect to such interest shall be determined without regard to whether
such interest was derived by gift from any other person.''.
(b) Conforming Amendments.--Section 704(e) <<NOTE: 26 USC 704.>> of
such Code is amended--
(1) by striking paragraph (1) and by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively,
(2) by striking ``this section'' in paragraph (2) (as so
redesignated) and inserting ``this subsection'', and
(3) by striking ``Family Partnerships'' in the heading and
inserting ``Partnership Interests Created by Gift''.
(c) <<NOTE: Applicability. 26 USC 704.>> Effective Date.--The
amendments made by this section shall apply to partnership taxable years
beginning after December 31, 2015.
TITLE XII--DESIGNATION OF SMALL HOUSE ROTUNDA
SEC. 1201. <<NOTE: 40 USC 5101 note.>> DESIGNATING SMALL HOUSE
ROTUNDA AS ``FREEDOM FOYER''.
The first floor of the area of the House of Representatives wing of
the United States Capitol known as the small House rotunda is designated
the ``Freedom Foyer''.
Approved November 2, 2015.
LEGISLATIVE HISTORY--H.R. 1314:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 114-67 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 161 (2015):
Apr. 15, considered and passed House.
May 14, 18-22, considered and passed Senate, amended.
June 12, House failed to concur in Senate amendment.
Oct. 28, House concurred in Senate amendment with an
amendment. Senate considered House amendment.
Oct. 29, 30, Senate considered and concurred in House
amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2015):
Nov. 2, Presidential remarks.
<all>