Text: H.R.1314 — 114th Congress (2015-2016)All Information (Except Text)

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Public Law No: 114-74 (11/02/2015)

 
[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>