In the House of Representatives, U. S., 

December 12, 2013. 

Resolved, That the House recede from its amendment to 

the amendment of the Senate to the resolution (H.J. Res. 59) 

entitled ‘‘Joint Resolution making continuing appropriations 

for fiscal year 2014, and for other purposes.’’, and concur 

therein with the following 

HOUSE AMENDMENT TO SENATE AMENDMENT: 

In lieu of the matter proposed to be inserted by the 

Senate amendment, insert the following: 

1 DIVISION A—BIPARTISAN 

2 BUDGET AGREEMENT 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This division may be cited as the 

5 ‘‘Bipartisan Budget Act of 2013’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of this 

7 division is as follows: 

DIVISION A—BUDGET ENFORCEMENT AND DEFICIT REDUCTION 

Sec. 1. Short title and table of contents. 

TITLE I—BUDGET ENFORCEMENT 

Subtitle A—Amendments to the Balanced Budget and Emergency Deficit 

Control Act of 1985 

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

Act of 1985. 

Subtitle B—Establishing a Congressional Budget 

Sec. 111. Fiscal year 2014 budget resolution. 

Sec. 112. Limitation on advance appropriations in the Senate. 
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Sec. 113. Rule of construction in the House of Representatives. 

Sec. 114. Additional Senate budget enforcement. 

Sec. 115. Authority for fiscal year 2015 budget resolution in the House of Representatives. 

Sec. 116. Authority for fiscal year 2015 budget resolution in the Senate. 

Sec. 117. Exclusion of savings from PAYGO scorecards. 

Sec. 118. Exercise of rulemaking powers. 

Subtitle C—Technical Corrections 

Sec. 121. Technical corrections to the Balanced Budget and Emergency Deficit 

Control Act of 1985. 

Sec. 122. Technical corrections to the Congressional Budget Act of 1974. 

TITLE II—PREVENTION OF WASTE, FRAUD, AND ABUSE 

Sec. 201. Improving the collection of unemployment insurance overpayments. 

Sec. 202. Strengthening Medicaid Third-Party Liability. 

Sec. 203. Restriction on access to the death master file. 

Sec. 204. Identification of inmates requesting or receiving improper payments. 

TITLE III—NATURAL RESOURCES 

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

resources. 

Sec. 302. Amendment to the Mineral Leasing Act. 

Sec. 303. Approval of agreement with Mexico. 

Sec. 304. Amendment to the Outer Continental Shelf Lands Act. 

Sec. 305. Federal oil and gas royalty prepayment cap. 

Sec. 306. Strategic Petroleum Reserve. 

TITLE IV—FEDERAL CIVILIAN AND MILITARY RETIREMENT 

Sec. 401. Increase in contributions to Federal Employees’ Retirement System for 

new employees. 

Sec. 402. Foreign Service Pension System. 

Sec. 403. Annual adjustment of retired pay and retainer pay amounts for retired 

members of the Armed Forces under age 62. 

TITLE V—HIGHER EDUCATION 

Sec. 501. Default reduction program. 

Sec. 502. Elimination of nonprofit servicing contracts. 

TITLE VI—TRANSPORTATION 

Sec. 601. Aviation security service fees. 

Sec. 602. Transportation cost reimbursement. 

Sec. 603. Sterile areas at airports. 

TITLE VII—MISCELLANEOUS PROVISIONS 

Sec. 701. Extension of customs user fees. 

Sec. 702. Limitation on allowable government contractor compensation costs. 

Sec. 703. Pension Benefit Guaranty Corporation premium rate increases. 

Sec. 704. Cancellation of Unobligated Balances. 

Sec. 705. Conservation planning technical assistance user fees. 

Sec. 706. Self plus one coverage. 
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1 (c) REFERENCES.—Except as expressly provided oth2 erwise, any reference to ‘‘this Act’’ contained in any divi3 sion of this Act shall be treated as referring only to the pro4 visions of that division. 

5 TITLE I—BUDGET 

6 ENFORCEMENT 

7 Subtitle A—Amendments to the Bal8 anced Budget and Emergency 

9 Deficit Control Act of 1985 

10 SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND 

11 EMERGENCY DEFICIT CONTROL ACT OF 1985. 

12 (a) REVISED DISCRETIONARY SPENDING LIMITS.— 

13 Section 251(c) of the Balanced Budget and Emergency Def14 icit Control Act of 1985 is amended by striking paragraphs 

15 (1) through (10) and inserting the following new para16 graphs: 

17 ‘‘(1) for fiscal year 2014— 

18 ‘‘(A) for the revised security category, 

19 $520,464,000,000 in new budget authority; and 

20 ‘‘(B) for the revised nonsecurity category, 

21 $491,773,000,000 in new budget authority; 

22 ‘‘(2) for fiscal year 2015— 

23 ‘‘(A) for the revised security category, 

24 $521,272,000,000 in new budget authority; and 
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1 ‘‘(B) for the revised nonsecurity category, 

2 $492,356,000,000 in new budget authority; 

3 ‘‘(3) for fiscal year 2016— 

4 ‘‘(A) for the revised security category, 

5 $577,000,000,000 in new budget authority; and 

6 ‘‘(B) for the revised nonsecurity category, 

7 $530,000,000,000 in new budget authority; 

8 ‘‘(4) for fiscal year 2017— 

9 ‘‘(A) for the revised security category, 

10 $590,000,000,000 in new budget authority; and 

11 ‘‘(B) for the revised nonsecurity category, 

12 $541,000,000,000 in new budget authority; 

13 ‘‘(5) for fiscal year 2018— 

14 ‘‘(A) for the revised security category, 

15 $603,000,000,000 in new budget authority; and 

16 ‘‘(B) for the revised nonsecurity category, 

17 $553,000,000,000 in new budget authority; 

18 ‘‘(6) for fiscal year 2019— 

19 ‘‘(A) for the revised security category, 

20 $616,000,000,000 in new budget authority; and 

21 ‘‘(B) for the revised nonsecurity category, 

22 $566,000,000,000 in new budget authority; 

23 ‘‘(7) for fiscal year 2020— 

24 ‘‘(A) for the revised security category, 

25 $630,000,000,000 in new budget authority; and 
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1 ‘‘(B) for the revised nonsecurity category, 

2 $578,000,000,000 in new budget authority; and 

3 ‘‘(8) for fiscal year 2021— 

4 ‘‘(A) for the revised security category, 

5 $644,000,000,000 in new budget authority; and 

6 ‘‘(B) for the revised nonsecurity category, 

7 $590,000,000,000 in new budget authority;’’. 

8 (b) DIRECT SPENDING ADJUSTMENTS FOR FISCAL

9 YEARS 2014 AND 2015.—(1) Section 251A of the Balanced 

10 Budget and Emergency Deficit Control Act of 1985, as re11 designated by subsection (d), is amended by adding at the 

12 end the following new paragraph: 

13 ‘‘(10) IMPLEMENTING DIRECT SPENDING REDUC14 TIONS FOR FISCAL YEARS 2014 AND 2015.—(A) OMB 

15 shall make the calculations necessary to implement 

16 the direct spending reductions calculated pursuant to 

17 paragraphs (3) and (4) without regard to the amend18 ment made to section 251(c) revising the discre19 tionary spending limits for fiscal years 2014 and 

20 2015 by the Bipartisan Budget Act of 2013. 

21 ‘‘(B) Paragraph (5)(B) shall not be implemented 

22 for fiscal years 2014 and 2015.’’. 

23 (2) Paragraph (5)(B) of section 251A of the Balanced 

24 Budget and Emergency Deficit Control Act of 1985, as re25 designated by subsection (d)(2)(C) of this section, is amend-
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1 ed by striking ‘‘On’’ and inserting ‘‘Except as provided by 

2 paragraph (10), on’’. 

3 (c) EXTENSION OF DIRECT SPENDING REDUCTIONS

4 FOR FISCAL YEARS 2022 AND 2023.—Paragraph (6), as re5 designated by subsection (d)(2)(C) of this section, of section 

6 251A of the Balanced Budget and Emergency Deficit Con7 trol Act of 1985 is amended by inserting ‘‘(A)’’ before ‘‘On 

8 the date’’ and by adding at the end the following new sub9 paragraph: 

10 ‘‘(B) On the dates OMB issues its sequestration 

11 preview reports for fiscal year 2022 and for fiscal 

12 year 2023, pursuant to section 254(c), the President 

13 shall order a sequestration, effective upon issuance 

14 such that— 

15 ‘‘(i) the percentage reduction for nonexempt 

16 direct spending for the defense function is the 

17 same percent as the percentage reduction for 

18 nonexempt direct spending for the defense func19 tion for fiscal year 2021 calculated under para20 graph (3)(B); and 

21 ‘‘(ii) the percentage reduction for non22 exempt direct spending for nondefense functions 

23 is the same percent as the percentage reduction 

24 for nonexempt direct spending for nondefense 
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1 functions for fiscal year 2021 calculated under 

2 paragraph (4)(B).’’. 

3 (d) CONFORMING AMENDMENTS.—Part C of title II of 

4 the Balanced Budget and Emergency Deficit Control Act 

5 of 1985 (2 U.S.C. 900 et seq.) is amended— 

6 (1) in section 250(c)(4) (2 U.S.C. 900(c)(4)), by 

7 adding at the end the following: 

8 ‘‘(D) The term ‘revised security category’ means 

9 discretionary appropriations in budget function 050. 

10 ‘‘(E) The term ‘revised nonsecurity category’ 

11 means discretionary appropriations other than in 

12 budget function 050. 

13 ‘‘(F) The term ‘category’ means the subsets of 

14 discretionary appropriations in section 251(c). Dis15 cretionary appropriations in each of the categories 

16 shall be those designated in the joint explanatory 

17 statement accompanying the conference report on the 

18 Balanced Budget Act of 1997. New accounts or activi19 ties shall be categorized only after consultation with 

20 the Committees on Appropriations and the Budget of 

21 the House of Representatives and the Senate and that 

22 consultation shall, to the extent practicable, include 

23 written communication to such committees that af24 fords such committees the opportunity to comment be-
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1 fore official action is taken with respect to new ac2 counts or activities.’’; and 

3 (2) in section 251A (2 U.S.C. 901a)— 

4 (A) by striking, in the matter preceding 

5 paragraph (1), ‘‘Unless’’ through ‘‘as follows:’’ 

6 and inserting the following: ‘‘Discretionary ap7 propriations and direct spending accounts shall 

8 be reduced in accordance with this section as fol9 lows:’’; 

10 (B) by striking paragraphs (1) and (2); 

11 (C) by redesignating paragraphs (3) 

12 through (11) as paragraphs (1) through (9), re13 spectively; 

14 (D) in paragraph (2), as redesignated, by 

15 striking ‘‘paragraph (3)’’ and inserting ‘‘para16 graph (1)’’; 

17 (E) in paragraph (3), as redesignated, by 

18 striking ‘‘paragraph (4)’’ each place it appears 

19 and inserting ‘‘paragraph (2)’’; 

20 (F) in paragraph (4), as redesignated, by 

21 striking ‘‘paragraph (4)’’ each place it appears 

22 and inserting ‘‘paragraph (2)’’; 

23 (G) in paragraph (5), as redesignated— 
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1 (i) by striking ‘‘paragraph (5)’’ each 

2 place it appears and inserting ‘‘paragraph 

3 (3)’’; and 

4 (ii) by striking ‘‘paragraph (6)’’ each 

5 place it appears and inserting ‘‘paragraph 

6 (4)’’; 

7 (H) in paragraph (6), as redesignated— 

8 (i) by striking ‘‘paragraph (4)’’ and 

9 inserting ‘‘paragraph (2)’’; and 

10 (ii) by striking ‘‘paragraphs (5) and 

11 (6)’’ and inserting ‘‘paragraphs (3) and 

12 (4)’’; 

13 (I) in paragraph (7), as redesignated— 

14 (i) by striking ‘‘paragraph (8)’’ and 

15 inserting ‘‘paragraph (6)’’; and 

16 (ii) by striking ‘‘paragraph (6)’’ each 

17 place it appears and inserting ‘‘paragraph 

18 (4)’’; and 

19 (J) in paragraph (9), as redesignated, by 

20 striking ‘‘paragraph (4)’’ and inserting ‘‘para21 graph (2)’’. 
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1 Subtitle B—Establishing a 

2 Congressional Budget 

3 SEC. 111. FISCAL YEAR 2014 BUDGET RESOLUTION. 

4 (a) FISCAL YEAR 2014.—For the purpose of enforcing 

5 the Congressional Budget Act of 1974 for fiscal year 2014, 

6 and enforcing, in the Senate, budgetary points of order in 

7 prior concurrent resolutions on the budget, the allocations, 

8 aggregates, and levels provided for in subsection (b) shall 

9 apply in the same manner as for a concurrent resolution 

10 on the budget for fiscal year 2014 with appropriate budg11 etary levels for fiscal year 2014 and for fiscal years 2015 

12 through 2023. 

13 (b) COMMITTEE ALLOCATIONS, AGGREGATES, AND

14 LEVELS.—The Chairmen of the Committee on the Budget 

15 of the House of Representatives and the Senate shall each 

16 submit a statement for publication in the Congressional 

17 Record as soon as practicable after the date of enactment 

18 of this Act that includes— 

19 (1) for the Committee on Appropriations of that 

20 House, committee allocations for fiscal year 2014 con21 sistent with the discretionary spending limits set 

22 forth in this Act for the purpose of enforcing section 

23 302 of the Congressional Budget Act of 1974; 
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1 (2) for all committees of that House other than 

2 the Committee on Appropriations, committee alloca3 tions for— 

4 (A) fiscal year 2014; 

5 (B) fiscal years 2014 through 2018 in the 

6 Senate only; and 

7 (C) fiscal years 2014 through 2023; 

8 consistent with the May 2013 baseline of the Congres9 sional Budget Office adjusted to account for the budg10 etary effects of this Act and legislation enacted prior 

11 to this Act but not included in the May 2013 baseline 

12 of the Congressional Budget Office, for the purpose of 

13 enforcing section 302 of the Congressional Budget Act 

14 of 1974; 

15 (3) aggregate spending levels for fiscal year 2014 

16 in accordance with the allocations established under 

17 paragraphs (1) and (2), for the purpose of enforcing 

18 section 311 of the Congressional Budget Act of 1974; 

19 (4) aggregate revenue levels for— 

20 (A) fiscal year 2014; 

21 (B) fiscal years 2014 through 2018 in the 

22 Senate only; and 

23 (C) fiscal years 2014 through 2023; 

24 consistent with the May 2013 baseline of the Congres25 sional Budget Office adjusted to account for the budg-
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1 etary effects of this Act and legislation enacted prior 

2 to this Act but not included in the May 2013 baseline 

3 of the Congressional Budget Office, for the purpose of 

4 enforcing section 311 of the Congressional Budget Act 

5 of 1974; and 

6 (5) in the Senate only, levels of Social Security 

7 revenues and outlays for fiscal year 2014 and for the 

8 periods of fiscal years 2014 through 2018 and 2014 

9 through 2023 consistent with the May 2013 baseline 

10 of the Congressional Budget Office adjusted to account 

11 for the budgetary effects of this Act and legislation en12 acted prior to this Act but not included in the May 

13 2013 baseline of the Congressional Budget Office, for 

14 the purpose of enforcing sections 302 and 311 of the 

15 Congressional Budget Act of 1974. 

16 (c) FURTHER ADJUSTMENTS.—After the date of enact17 ment of this Act, the Chairman of the Committee on the 

18 Budget of the House of Representatives may reduce the ag19 gregates, allocations, and other budgetary levels included in 

20 the statement of the Chairman of the Committee on the 

21 Budget of the House of Representatives referred to in sub22 section (b) to reflect the budgetary effects of any legislation 

23 enacted during the 113th Congress that reduces the deficit. 
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1 SEC. 112. LIMITATION ON ADVANCE APPROPRIATIONS IN 

2 THE SENATE. 

3 (a) POINT OF ORDER AGAINST ADVANCE APPROPRIA4 TIONS IN THE SENATE.— 

5 (1) IN GENERAL.— 

6 (A) POINT OF ORDER.—Except as provided 

7 in paragraph (2), it shall not be in order in the 

8 Senate to consider any bill, joint resolution, mo9 tion, amendment, amendment between the 

10 Houses, or conference report that would provide 

11 an advance appropriation. 

12 (B) DEFINITION.—In this subsection, the 

13 term ‘‘advance appropriation’’ means any new 

14 budget authority provided in a bill or joint reso15 lution making appropriations for fiscal year 

16 2014 that first becomes available for any fiscal 

17 year after 2014 or any new budget authority 

18 provided in a bill or joint resolution making ap19 propriations for fiscal year 2015 that first be20 comes available for any fiscal year after 2015. 

21 (2) EXCEPTIONS.—Advance appropriations may 

22 be provided— 

23 (A) for fiscal years 2015 and 2016 for pro24 grams, projects, activities, or accounts identified 

25 in a statement submitted to the Congressional 

26 Record by the Chairman of the Committee on the 
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1 Budget of the Senate under the heading ‘‘Ac2 counts Identified for Advance Appropriations’’ 

3 in an aggregate amount not to exceed 

4 $28,852,000,000 in new budget authority in each 

5 fiscal year; 

6 (B) for the Corporation for Public Broad7 casting; and 

8 (C) for the Department of Veterans Affairs 

9 for the Medical Services, Medical Support and 

10 Compliance, and Medical Facilities accounts of 

11 the Veterans Health Administration. 

12 (3) SUPERMAJORITY WAIVER AND APPEAL.— 

13 (A) WAIVER.—In the Senate, paragraph (1) 

14 may be waived or suspended only by an affirma15 tive vote of three-fifths of the Members, duly cho16 sen and sworn. 

17 (B) APPEAL.—An affirmative vote of three18 fifths of the Members of the Senate, duly chosen 

19 and sworn, shall be required to sustain an ap20 peal of the ruling of the Chair on a point of 

21 order raised under paragraph (1). 

22 (4) FORM OF POINT OF ORDER.—A point of 

23 order under paragraph (1) may be raised by a Sen24 ator as provided in section 313(e) of the Congres25 sional Budget Act of 1974. 
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1 (5) CONFERENCE REPORTS.—When the Senate is 

2 considering a conference report on, or an amendment 

3 between the Houses in relation to, a bill, upon a point 

4 of order being made by any Senator pursuant to this 

5 subsection, and such point of order being sustained, 

6 such material contained in such conference report or 

7 amendment between the Houses shall be stricken, and 

8 the Senate shall proceed to consider the question of 

9 whether the Senate shall recede from its amendment 

10 and concur with a further amendment, or concur in 

11 the House amendment with a further amendment, as 

12 the case may be, which further amendment shall con13 sist of only that portion of the conference report or 

14 House amendment, as the case may be, not so strick15 en. Any such motion in the Senate shall be debatable. 

16 In any case in which such point of order is sustained 

17 against a conference report (or Senate amendment de18 rived from such conference report by operation of this 

19 paragraph), no further amendment shall be in order. 

20 (6) INAPPLICABILITY.—In the Senate, section 

21 402 of S. Con. Res. 13 (111th Congress) shall no 

22 longer apply. 

23 (b) EXPIRATION.—Subsection (a) shall expire if a con24 current resolution on the budget for fiscal year 2015 is 

25 agreed to by the Senate and House of Representatives pur-
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1 suant to section 301 of the Congressional Budget Act of 

2 1974. 

3 SEC. 113. RULE OF CONSTRUCTION IN THE HOUSE OF REP4 RESENTATIVES. 

5 In the House of Representatives, for the remainder of 

6 the 113th Congress, the provisions of H. Con. Res. 25 (113th 

7 Congress), as deemed in force by H. Res. 243 (113th Con8 gress), shall remain in force to the extent its budgetary lev9 els are not superseded by this subtitle or by further action 

10 of the House of Representatives. 

11 SEC. 114. ADDITIONAL SENATE BUDGET ENFORCEMENT. 

12 (a) SENATE PAY-AS-YOU-GO SCORECARD.— 

13 (1) IN GENERAL.—Effective on the date of enact14 ment of this Act, for the purpose of enforcing section 

15 201 of S. Con. Res. 21 (110th Congress), the Chair16 man of the Committee on the Budget of the Senate 

17 shall reduce any balances of direct spending and reve18 nues for any fiscal year to zero. 

19 (2) FISCAL YEAR 2015.—After April 15, 2014, 

20 but not later than May 15, 2014, for the purpose of 

21 enforcing section 201 of S. Con. Res. 21 (110th Con22 gress), the Chairman of the Committee on the Budget 

23 of the Senate shall reduce any balances of direct 

24 spending and revenues for any fiscal year to zero. 
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1 (3) PUBLICATION.—Upon resetting the Senate 

2 paygo scorecard pursuant to paragraph (2), the 

3 Chairman of the Committee on the Budget of the Sen4 ate shall publish a notification of such action in the 

5 Congressional Record. 

6 (b) FURTHER ADJUSTMENTS.—With respect to any al7 locations, aggregates, or levels set or adjustments made pur8 suant to this subtitle, sections 412 through 414 of S. Con. 

9 Res. 13 (111th Congress) shall remain in effect. 

10 (c) DEFICIT-NEUTRAL RESERVE FUND TO REPLACE

11 SEQUESTRATION.—The Chairman of the Committee on the 

12 Budget of the Senate may revise the allocations of a com13 mittee or committees, aggregates, and other appropriate lev14 els and limits set pursuant to this subtitle for one or more 

15 bills, joint resolutions, amendments, motions, or conference 

16 reports that amend section 251A of the Balanced Budget 

17 and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) 

18 to repeal or revise the enforcement procedures established 

19 under that section, by the amounts provided in such legisla20 tion for those purposes, provided that such legislation would 

21 not increase the deficit over the period of the total of fiscal 

22 years 2014 through 2023. For purposes of determining def23 icit-neutrality under this subsection, the Chairman may in24 clude the estimated effects of any amendment or amend25 ments to the discretionary spending limits in section 251(c) 
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1 of the Balanced Budget and Emergency Deficit Control Act 

2 of 1985 (2 U.S.C. 901(c)). 

3 (d) ADDITIONAL DEFICIT-NEUTRAL RESERVE

4 FUNDS.—In the Senate only, sections 302, 303, 304, 305, 

5 306, 307, 308, 309, 310, 311, 312, 313, 314, 315, 316, 317, 

6 318, 319, 320, 322, 323, 324, 325, 326, 327, 328, 329, 330, 

7 331, 332, 333, 334, 335, 338, 339, 340, 341, 344, 348, 349, 

8 350, 353, 354, 356, 361, 363, 364, 365, 366, 367, 368, 369, 

9 371, 376, 378, 379, and 383 of S. Con. Res. 8 (113th Con10 gress), as passed the Senate, shall have force and effect. 

11 (e) EXPIRATION.—Subsections (a)(2), (c), and (d) shall 

12 expire if a concurrent resolution on the budget for fiscal 

13 year 2015 is agreed to by the Senate and House of Rep14 resentatives pursuant to section 301 of the Congressional 

15 Budget Act of 1974. 

16 SEC. 115. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESO17 LUTION IN THE HOUSE OF REPRESENTA18 TIVES. 

19 (a) FISCAL YEAR 2015.—If a concurrent resolution on 

20 the budget for fiscal year 2015 has not been adopted by 

21 April 15, 2014, for the purpose of enforcing the Congres22 sional Budget Act of 1974, the allocations, aggregates, and 

23 levels provided for in subsection (b) shall apply in the 

24 House of Representatives after April 15, 2014, in the same 

25 manner as for a concurrent resolution on the budget for 
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1 fiscal year 2015 with appropriate budgetary levels for fiscal 

2 year 2015 and for fiscal years 2016 through 2024. 

3 (b) COMMITTEE ALLOCATIONS, AGGREGATES, AND

4 LEVELS.—In the House of Representatives, the Chairman 

5 of the Committee on the Budget shall submit a statement 

6 for publication in the Congressional Record after April 15, 

7 2014, but not later than May 15, 2014, containing— 

8 (1) for the Committee on Appropriations, com9 mittee allocations for fiscal year 2015 at the total 

10 level as set forth in section 251(c)(2) of the Balanced 

11 Budget and Emergency Deficit Control Act of 1985 

12 for the purpose of enforcing section 302 of the Con13 gressional Budget Act of 1974; 

14 (2) for all committees other than the Committee 

15 on Appropriations, committee allocations for fiscal 

16 year 2015 and for the period of fiscal years 2015 

17 through 2024 at the levels included in the most recent 

18 baseline of the Congressional Budget Office, as ad19 justed for the budgetary effects of any provision of law 

20 enacted during the period beginning on the date such 

21 baseline is issued and ending on the date of submis22 sion of such statement, for the purpose of enforcing 

23 section 302 of the Congressional Budget Act of 1974; 

24 and 
20 

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1 (3) aggregate spending levels for fiscal year 2015 

2 and aggregate revenue levels for fiscal year 2015 and 

3 for the period of fiscal years 2015 through 2024, at 

4 the levels included in the most recent baseline of the 

5 Congressional Budget Office, as adjusted for the budg6 etary effects of any provision of law enacted during 

7 the period beginning on the date such baseline is 

8 issued and ending on the date of submission of such 

9 statement, for the purpose of enforcing section 311 of 

10 the Congressional Budget Act of 1974. 

11 (c) ADDITIONAL MATTER.—The statement referred to 

12 in subsection (b) may also include for fiscal year 2015, the 

13 matter contained in title IV (reserve funds) and in sections 

14 601, 603(a), 605(a), and 609 of H. Con. Res. 25 (113th 

15 Congress), as adopted by the House, updated by one fiscal 

16 year, including updated amounts for section 601. 

17 (d) FISCAL YEAR 2015 ALLOCATION TO THE COM18 MITTEE ON APPROPRIATIONS.—If the statement referred to 

19 in subsection (b) is not filed by May 15, 2014, then the 

20 matter referred to in subsection (b)(1) shall be submitted 

21 by the Chairman of the Committee on the Budget for publi22 cation in the Congressional Record on the next day that 

23 the House of Representatives is in session. 

24 (e) ADJUSTMENTS.—The Chairman of the Committee 

25 on the Budget of the House of Representatives may adjust 
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1 the levels included in the statement referred to in subsection 

2 (b) to reflect the budgetary effects of any legislation enacted 

3 during the 113th Congress that reduces the deficit or as oth4 erwise necessary. 

5 (f) APPLICATION.—Subsections (a), (b), (c), (d), and 

6 (e) shall no longer apply if a concurrent resolution on the 

7 budget for fiscal year 2015 is agreed to by the Senate and 

8 House of Representatives pursuant to section 301 of the 

9 Congressional Budget Act of 1974. 

10 SEC. 116. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESO11 LUTION IN THE SENATE. 

12 (a) FISCAL YEAR 2015.—For the purpose of enforcing 

13 the Congressional Budget Act of 1974, after April 15, 2014, 

14 and enforcing budgetary points of order in prior concurrent 

15 resolutions on the budget, the allocations, aggregates, and 

16 levels provided for in subsection (b) shall apply in the Sen17 ate in the same manner as for a concurrent resolution on 

18 the budget for fiscal year 2015 with appropriate budgetary 

19 levels for fiscal years 2014 and 2016 through 2024. 

20 (b) COMMITTEE ALLOCATIONS, AGGREGATES, AND

21 LEVELS.—After April 15, 2014, but not later than May 15, 

22 2014, the Chairman of the Committee on the Budget of the 

23 Senate shall file— 

24 (1) for the Committee on Appropriations, com25 mittee allocations for fiscal years 2014 and 2015 con-
22 

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1 sistent with the discretionary spending limits set 

2 forth in this Act for the purpose of enforcing section 

3 302 of the Congressional Budget Act of 1974; 

4 (2) for all committees other than the Committee 

5 on Appropriations, committee allocations for fiscal 

6 years 2014, 2015, 2015 through 2019, and 2015 

7 through 2024 consistent with the most recent baseline 

8 of the Congressional Budget Office for the purpose of 

9 enforcing section 302 of the Congressional Budget Act 

10 of 1974; 

11 (3) aggregate spending levels for fiscal years 

12 2014 and 2015 in accordance with the allocations es13 tablished under paragraphs (1) and (2), for the pur14 pose of enforcing section 311 of the Congressional 

15 Budget Act of 1974; 

16 (4) aggregate revenue levels for fiscal years 2014, 

17 2015, 2015 through 2019, and 2015 through 2024 

18 consistent with the most recent baseline of the Con19 gressional Budget Office for the purpose of enforcing 

20 section 311 of the Congressional Budget Act of 1974; 

21 and 

22 (5) levels of Social Security revenues and outlays 

23 for fiscal years 2014, 2015, 2015 through 2019, and 

24 2015 through 2024 consistent with the most recent 

25 baseline of the Congressional Budget Office for the 
23 

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1 purpose of enforcing sections 302 and 311 of the Con2 gressional Budget Act of 1974. 

3 (c) ADDITIONAL MATTER.—The filing referred to in 

4 subsection (b) may also include, for fiscal year 2015, the 

5 reserve funds included in section 114(c) and (d) of this Act, 

6 updated by one fiscal year. 

7 (d) SUPERSEDING PREVIOUS STATEMENT.—In the 

8 Senate, the filing referred to in subsection (b) shall super9 sede the statement referred to in section 111(b) of this Act. 

10 (e) EXPIRATION.— This section shall expire if a con11 current resolution on the budget for fiscal year 2015 is 

12 agreed to by the Senate and House of Representatives pur13 suant to section 301 of the Congressional Budget Act of 

14 1974. 

15 SEC. 117. EXCLUSION OF SAVINGS FROM PAYGO SCORE16 CARDS. 

17 (a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—Not18 withstanding section 1(c) of this division, the budgetary ef19 fects of this Act shall not be entered on either PAYGO score20 card maintained pursuant to section 4(d) of the Statutory 

21 Pay-As-You-Go Act of 2010. 

22 (b) SENATE PAYGO SCORECARDS.—Notwithstanding 

23 section 1(c) of this division, the budgetary effects of this Act 

24 shall not be entered on any PAYGO scorecard maintained 
24 

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1 for purposes of section 201 of S. Con. Res. 21 (110th Con2 gress). 

3 SEC. 118. EXERCISE OF RULEMAKING POWERS. 

4 The provisions of this subtitle are enacted by the Con5 gress— 

6 (1) as an exercise of the rulemaking power of the 

7 House of Representatives and the Senate, respectively, 

8 and as such they shall be considered as part of the 

9 rules of each House, respectively, or of that House to 

10 which they specifically apply, and such rules shall su11 persede other rules only to the extent that they are in12 consistent therewith; and 

13 (2) with full recognition of the constitutional 

14 right of either House to change such rules (so far as 

15 relating to such House) at any time, in the same 

16 manner, and to the same extent as in the case of any 

17 other rule of such House. 

18 Subtitle C—Technical Corrections 

19 SEC. 121. TECHNICAL CORRECTIONS TO THE BALANCED 

20 BUDGET AND EMERGENCY DEFICIT CONTROL 

21 ACT OF 1985. 

22 The Balanced Budget and Emergency Deficit Control 

23 Act of 1985 is amended as follows: 
25 

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1 (1) In section 252(b)(2)(B), strike ‘‘applicable to 

2 budget year’’ and insert ‘‘applicable to the budget 

3 year’’. 

4 (2) In section 252(c)(1)(C)(i), strike ‘‘paragraph 

5 (1)’’ and insert ‘‘subsection (b)’’. 

6 (3) In section 254(c)(3)(A), strike ‘‘subsection 

7 252(b)’’ and insert ‘‘section 252(b)’’. 

8 (4) In section 254(f)(4), strike ‘‘subsection 

9 252(b)’’ and insert ‘‘section 252(b)’’. 

10 (5) In section 255(a), strike ‘‘section 231b(a), 

11 231b(f)(2), 231c(a), and 231c(f) of title 45 United 

12 States Code’’ and insert ‘‘sections 3 and 4 of the Rail13 road Retirement Act of 1937 (45 U.S.C. 231 et seq.)’’. 

14 (6) In section 255(h), in the item relating to 

15 Federal Pell Grants, strike ‘‘section 401 Title IV’’ and 

16 insert ‘‘section 401 of title IV’’. 

17 (7) In the first subsection (j) of section 255 (re18 lating to Split Treatment Programs), move the mar19 gins for the list items two ems to the right. 

20 (8) Redesignate the second subsection (j) of sec21 tion 255 (relating to Identification of Programs) as 

22 subsection (k). 

23 (9) In section 257(b)(2)(A)(i), strike ‘‘differenes’’ 

24 and insert ‘‘differences’’. 
26 

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1 (10) In section 258(a)(1), strike ‘‘section 254(j)’’ 

2 and insert ‘‘section 254(i)’’. 

3 SEC. 122. TECHNICAL CORRECTIONS TO THE CONGRES4 SIONAL BUDGET ACT OF 1974. 

5 The Congressional Budget Act of 1974 is amended as 

6 follows: 

7 (1) In sections 301(a)(6) and 301(a)(7), strike 

8 ‘‘For purposes’’ and insert ‘‘for purposes’’. 

9 (2) In section 301(a), in the matter following 

10 paragraph (7), strike ‘‘old age’’ and insert ‘‘old-age’’. 

11 (3) In section 302(g)(2)(A), strike ‘‘committee on 

12 the Budget’’ and insert ‘‘Committee on the Budget’’. 

13 (4) In section 305(a)(1), strike ‘‘clause 2(l)(6) of 

14 rule XI’’ and insert ‘‘clause 4 of rule XIII’’. 

15 (5) In section 305(a)(5), strike ‘‘provisions of 

16 rule XXIII’’ and insert ‘‘provisions of rule XVIII’’. 

17 (6) In section 305(b)(1), strike ‘‘section 304(a)’’ 

18 and insert ‘‘section 304’’. 

19 (7) In section 306 strike ‘‘No’’ and insert ‘‘(a) IN

20 THE SENATE.— In the Senate, no’’, strike ‘‘of either 

21 House’’ and ‘‘in that House’’, strike ‘‘of that House’’, 

22 and add at the end the following new subsection: 

23 ‘‘(b) IN THE HOUSE OF REPRESENTATIVES.—In the 

24 House of Representatives, no bill or joint resolution, or 

25 amendment thereto, or conference report thereon, dealing 
27 

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1 with any matter which is within the jurisdiction of the 

2 Committee on the Budget shall be considered unless it is 

3 a bill or joint resolution which has been reported by the 

4 Committee on the Budget (or from the consideration of 

5 which such committee has been discharged) or unless it is 

6 an amendment to such a bill or joint resolution.’’. 

7 (8) In section 308(d), in the subsection heading, 

8 strike ‘‘Scorekeeping Guidelines.—’’ and insert 

9 ‘‘SCOREKEEPING GUIDELINES.—’’ 

10 (9) In section 310(c)(1)(A)(i) and (ii), strike 

11 ‘‘under that paragraph by more than’’ and insert 

12 ‘‘under that paragraph by more than—’’. 

13 (10) In section 314(d)(2), strike subparagraph 

14 (A), redesignate subparagraphs (B) and (C) as sub15 paragraphs (A) and (B) respectively, in subpara16 graph (A), as redesignated, strike ‘‘under subpara17 graph (A)’’ and insert ‘‘under paragraph (1)’’, and in 

18 subparagraph (B), as redesignated, strike ‘‘under sub19 paragraph (B)’’ and insert ‘‘under subparagraph 

20 (A)’’. 

21 (11) In section 315, add at the end the following 

22 new sentence: ‘‘In the case of a reported bill or joint 

23 resolution considered pursuant to a special order of 

24 business, a point of order under section 303 shall be 

25 determined on the basis of the text made in order as 
28 

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1 an original bill or joint resolution for the purpose of 

2 amendment or to the text on which the previous ques3 tion is ordered directly to passage, as the case may 

4 be.’’. 

5 (12) In section 401(b)(2), strike ‘‘section 302(b)’’ 

6 and insert ‘‘section 302(a)’’. 

7 (13) In section 401(c), add at the end the fol8 lowing new paragraph: 

9 ‘‘(3) In the House of Representatives, subsections 

10 (a) and (b) shall not apply to new authority described 

11 in those subsections to the extent that a provision in 

12 a bill or joint resolution, or an amendment thereto or 

13 a conference report thereon, establishes prospectively 

14 for a Federal office or position a specified or min15 imum level of compensation to be funded by annual 

16 discretionary appropriations.’’. 

17 (14) In section 421(5)(A)(i)(II), strike ‘‘subpara18 graph (B))’’ and insert ‘‘subparagraph (B)’’. 

19 (15) In section 505(c), strike ‘‘section 406(b)’’ 

20 both places it appears and insert ‘‘section 405(b)’’. 

21 (16) In section 904(c)(2), strike 

22 ‘‘258A(b)(3)(C)(I)’’ and ‘‘258(h)(3)’’ and insert 

23 ‘‘258A(b)(3)(C)(i)’’ and ‘‘258B(h)(3)’’, respectively, 

24 and strike ‘‘and 314(e)’’ and insert ‘‘314(e), and 

25 314(f)’’. 
29 

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1 (17) In section 904(d)(3), strike 

2 ‘‘258A(b)(3)(C)(I)’’ and ‘‘258(h)(3)’’ and insert 

3 ‘‘258A(b)(3)(C)(i)’’ and ‘‘258B(h)(3)’’, respectively, 

4 and strike ‘‘and 312(c)’’ and insert ‘‘312(c), 314(e), 

5 and 314(f)’’. 

6 TITLE II—PREVENTION OF 

7 WASTE, FRAUD, AND ABUSE 

8 SEC. 201. IMPROVING THE COLLECTION OF UNEMPLOY9 MENT INSURANCE OVERPAYMENTS. 

10 (a) IN GENERAL.—Section 303 of the Social Security 

11 Act (42 U.S.C. 503) is amended by adding at the end the 

12 following: 

13 ‘‘(m) In the case of a covered unemployment compensa14 tion debt (as defined under section 6402(f)(4) of the Inter15 nal Revenue Code of 1986) that remains uncollected as of 

16 the date that is 1 year after the debt was finally determined 

17 to be due and collected, the State to which such debt is owed 

18 shall take action to recover such debt under section 6402(f) 

19 of the Internal Revenue Code of 1986.’’. 

20 (b) EFFECTIVE DATE.—The amendment made by sub21 section (a) shall take effect upon the date of enactment of 

22 this Act. 
30 

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1 SEC. 202. STRENGTHENING MEDICAID THIRD-PARTY LI2 ABILITY. 

3 (a) PAYMENT FOR PRENATAL AND PREVENTIVE PEDI4 ATRIC CARE AND IN CASES INVOLVING MEDICAL SUP5 PORT.—Section 1902(a)(25) of the Social Security Act (42 

6 U.S.C. 1396a(a)(25)) is amended— 

7 (1) in subparagraph (E)(i), by inserting before 

8 the semicolon at the end the following: ‘‘, except that 

9 the State may, if the State determines doing so is 

10 cost-effective and will not adversely affect access to 

11 care, only make such payment if a third party so lia12 ble has not made payment within 90 days after the 

13 date the provider of such services has initially sub14 mitted a claim to such third party for payment for 

15 such services’’; and 

16 (2) in subparagraph (F)(i), by striking ‘‘30 days 

17 after such services are furnished’’ and inserting ‘‘90 

18 days after the date the provider of such services has 

19 initially submitted a claim to such third party for 

20 payment for such services, except that the State may 

21 make such payment within 30 days after such date if 

22 the State determines doing so is cost-effective and nec23 essary to ensure access to care.’’. 

24 (b) RECOVERY OF MEDICAID EXPENDITURES FROM

25 BENEFICIARY LIABILITY SETTLEMENTS.— 
31 

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1 (1) STATE PLAN REQUIREMENTS.—Section 

2 1902(a)(25) of the Social Security Act (42 U.S.C. 

3 1396a(a)(25)) is amended— 

4 (A) in subparagraph (B), by striking ‘‘to 

5 the extent of such legal liability’’; and 

6 (B) in subparagraph (H), by striking ‘‘pay7 ment by any other party for such health care 

8 items or services’’ and inserting ‘‘any payments 

9 by such third party’’. 

10 (2) ASSIGNMENT OF RIGHTS OF PAYMENT.—Sec11 tion 1912(a)(1)(A) of such Act (42 U.S.C. 

12 1396k(a)(1)(A)) is amended by striking ‘‘payment for 

13 medical care from any third party’’ and inserting 

14 ‘‘any payment from a third party that has a legal li15 ability to pay for care and services available under 

16 the plan’’. 

17 (3) LIENS.—Section 1917(a)(1)(A) of such Act 

18 (42 U.S.C. 1396p(a)(1)(A)) is amended to read as fol19 lows: 

20 ‘‘(A) pursuant to— 

21 ‘‘(i) the judgment of a court on account of 

22 benefits incorrectly paid on behalf of such indi23 vidual, or 
32 

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1 ‘‘(ii) rights acquired by or assigned to the 

2 State in accordance with section 1902(a)(25)(H) 

3 or section 1912(a)(1)(A), or’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall take effect on October 1, 2014. 

6 SEC. 203. RESTRICTION ON ACCESS TO THE DEATH MASTER 

7 FILE. 

8 (a) IN GENERAL.—The Secretary of Commerce shall 

9 not disclose to any person information contained on the 

10 Death Master File with respect to any deceased individual 

11 at any time during the 3-calendar-year period beginning 

12 on the date of the individual’s death, unless such person 

13 is certified under the program established under subsection 

14 (b). 

15 (b) CERTIFICATION PROGRAM.— 

16 (1) IN GENERAL.—The Secretary of Commerce 

17 shall establish a program— 

18 (A) to certify persons who are eligible to ac19 cess the information described in subsection (a) 

20 contained on the Death Master File, and 

21 (B) to perform periodic and unscheduled 

22 audits of certified persons to determine the com23 pliance by such certified persons with the re24 quirements of the program. 
33 

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1 (2) CERTIFICATION.—A person shall not be cer2 tified under the program established under paragraph 

3 (1) unless such person certifies that access to the in4 formation described in subsection (a) is appropriate 

5 because such person— 

6 (A) has— 

7 (i) a legitimate fraud prevention inter8 est, or 

9 (ii) a legitimate business purpose pur10 suant to a law, governmental rule, regula11 tion, or fiduciary duty, and 

12 (B) has systems, facilities, and procedures 

13 in place to safeguard such information, and ex14 perience in maintaining the confidentiality, se15 curity, and appropriate use of such information, 

16 pursuant to requirements similar to the require17 ments of section 6103(p)(4) of the Internal Rev18 enue Code of 1986, and 

19 (C) agrees to satisfy the requirements of 

20 such section 6103(p)(4) as if such section applied 

21 to such person. 

22 (3) FEES.— 

23 (A) IN GENERAL.—The Secretary of Com24 merce shall establish under section 9701 of title 

25 31, United States Code, a program for the charge 
34 

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1 of fees sufficient to cover (but not to exceed) all 

2 costs associated with evaluating applications for 

3 certification and auditing, inspecting, and moni4 toring certified persons under the program. Any 

5 fees so collected shall be deposited and credited as 

6 offsetting collections to the accounts from which 

7 such costs are paid. 

8 (B) REPORT.—The Secretary of Commerce 

9 shall report on an annual basis to the Committee 

10 on Finance of the Senate and the Committee on 

11 Ways and Means of the House of Representatives 

12 on the total fees collected during the preceding 

13 year and the cost of administering the certifi14 cation program under this subsection for such 

15 year. 

16 (c) IMPOSITION OF PENALTY.— 

17 (1) IN GENERAL.—Any person who is certified 

18 under the program established under subsection (b), 

19 who receives information described in subsection (a), 

20 and who during the period of time described in sub21 section (a)— 

22 (A) discloses such information to any per23 son other than a person who meets the require24 ments of subparagraphs (A), (B), and (C) of sub25 section (b)(2), 
35 

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1 (B) discloses such information to any per2 son who uses the information for any purpose 

3 not listed under subsection (b)(2)(A) or who fur4 ther discloses the information to a person who 

5 does not meet such requirements, or 

6 (C) uses any such information for any pur7 pose not listed under subsection (b)(2)(A), 

8 and any person to whom such information is dis9 closed who further discloses or uses such information 

10 as described in the preceding subparagraphs, shall 

11 pay a penalty of $1,000 for each such disclosure or 

12 use. 

13 (2) LIMITATION ON PENALTY.— 

14 (A) IN GENERAL.—The total amount of the 

15 penalty imposed under this subsection on any 

16 person for any calendar year shall not exceed 

17 $250,000. 

18 (B) EXCEPTION FOR WILLFUL VIOLA19 TIONS.—Subparagraph (A) shall not apply in 

20 the case of violations under paragraph (1) that 

21 the Secretary of Commerce determines to be will22 ful or intentional violations. 

23 (d) DEATH MASTER FILE.—For purposes of this sec24 tion, the term ‘‘Death Master File’’ means information on 

25 the name, social security account number, date of birth, and 
36 

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1 date of death of deceased individuals maintained by the 

2 Commissioner of Social Security, other than information 

3 that was provided to such Commissioner under section 

4 205(r) of the Social Security Act (42 U.S.C. 405(r)). 

5 (e) EXEMPTION FROM FREEDOM OF INFORMATION ACT

6 REQUIREMENT WITH RESPECT TO CERTAIN RECORDS OF

7 DECEASED INDIVIDUALS.— 

8 (1) IN GENERAL.—No Federal agency shall be 

9 compelled to disclose the information described in sub10 section (a) to any person who is not certified under 

11 the program established under subsection (b). 

12 (2) TREATMENT OF INFORMATION.—For pur13 poses of section 552 of title 5, United States Code, this 

14 section shall be considered a statute described in sub15 section (b)(3) of such section 552. 

16 (f) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), this section shall take effect on the date 

19 that is 90 days after the date of the enactment of this 

20 Act. 

21 (2) FOIA EXEMPTION.—Subsection (e) shall take 

22 effect on the date of the enactment of this Act. 
37 

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1 SEC. 204. IDENTIFICATION OF INMATES REQUESTING OR 

2 RECEIVING IMPROPER PAYMENTS. 

3 (a) INFORMATION PROVIDED TO THE PRISONER UP4 DATE PROCESSING SYSTEM (PUPS).— 

5 (1) SECTION 202(x)(3)(B)(i)(I).—Section 

6 202(x)(3)(B)(i)(I) of the Social Security Act (42 

7 U.S.C. 402(x)(3)(B)(i)(I)) is amended by— 

8 (A) inserting ‘‘first, middle, and last’’ before 

9 ‘‘names’’; 

10 (B) striking the comma after the words ‘‘so11 cial security account numbers’’ and inserting ‘‘or 

12 taxpayer identification numbers, prison assigned 

13 inmate numbers, last known addresses,’’; 

14 (C) inserting ‘‘dates of release or antici15 pated dates of release, dates of work release,’’ be16 fore ‘‘and, to the extent available’’; and 

17 (D) by inserting ‘‘and clause (iv) of this 

18 subparagraph’’ after ‘‘paragraph (1)’’. 

19 (2) SECTION 1611(e)(1)(I)(i)(I).—Section 

20 1611(e)(1)(I)(i)(I) of the Social Security Act (42 

21 U.S.C. 1382(e)(1)(I)(i)(I)) is amended by— 

22 (A) inserting ‘‘first, middle, and last’’ before 

23 ‘‘names’’; 

24 (B) striking the comma after the words ‘‘so25 cial security account numbers’’ and inserting ‘‘or 
38 

•HJ 59 EAH3 

1 taxpayer identification numbers, prison assigned 

2 inmate numbers, last known addresses,’’; 

3 (C) inserting ‘‘dates of release or antici4 pated dates of release, dates of work release,’’ be5 fore ‘‘and, to the extent available’’; and 

6 (D) by inserting ‘‘and clause (iv) of this 

7 subparagraph’’ after ‘‘this paragraph’’. 

8 (b) AUTHORITY OF SECRETARY OF THE TREASURY TO

9 ACCESS PUPS.— 

10 (1) SECTION 202(x)(3)(B).—Section 202(x)(3)(B) 

11 of the Social Security Act (42 U.S.C. 402(x)(3)(B)) is 

12 amended— 

13 (A) in clause (iv), by inserting before the 

14 period the following: ‘‘, for statistical and re15 search activities conducted by Federal and State 

16 agencies, and to the Secretary of the Treasury 

17 for the purposes of tax administration, debt col18 lection, and identifying, preventing, and recov19 ering improper payments under federally funded 

20 programs’’; and 

21 (B) by adding at the end the following: 

22 ‘‘(v)(I) The Commissioner may disclose information 

23 received pursuant to this paragraph to any officer, em24 ployee, agent, or contractor of the Department of the Treas25 ury whose official duties require such information to assist 
39 

•HJ 59 EAH3 

1 in the identification, prevention, and recovery of improper 

2 payments or in the collection of delinquent debts owed to 

3 the United States, including payments certified by the head 

4 of an executive, judicial, or legislative paying agency, and 

5 payments made to individuals whose eligibility, or con6 tinuing eligibility, to participate in a Federal program (in7 cluding those administered by a State or political subdivi8 sion thereof) is being reviewed. 

9 ‘‘(II) Notwithstanding the provisions of section 552a 

10 of title 5, United States Code, or any other provision of 

11 Federal or State law, the Secretary of the Treasury may 

12 compare information disclosed under subclause (I) with any 

13 other personally identifiable information derived from a 

14 Federal system of records or similar records maintained by 

15 a Federal contractor, a Federal grantee, or an entity ad16 ministering a Federal program or activity, and may redis17 close such comparison of information to any paying or ad18 ministering agency and to the head of the Federal Bureau 

19 of Prisons and the head of any State agency charged with 

20 the administration of prisons with respect to inmates whom 

21 the Secretary of the Treasury has determined may have been 

22 issued, or facilitated in the issuance of, an improper pay23 ment. 
40 

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1 ‘‘(III) The comparison of information disclosed under 

2 subclause (I) shall not be considered a matching program 

3 for purposes of section 552a of title 5, United States Code.’’. 

4 (2) SECTION 1611(e)(1)(I).—Section 1611(e)(1)(I) 

5 of the Social Security Act (42 U.S.C. 1382(e)(1)(I)) 

6 is amended— 

7 (A) in clause (iii), by inserting before the 

8 period the following: ‘‘, for statistical and re9 search activities conducted by Federal and State 

10 agencies, and to the Secretary of the Treasury 

11 for the purposes of tax administration, debt col12 lection, and identifying, preventing, and recov13 ering improper payments under federally funded 

14 programs’’; and 

15 (B) by adding at the end the following: 

16 ‘‘(v)(I) The Commissioner may disclose information 

17 received pursuant to this paragraph to any officer, em18 ployee, agent, or contractor of the Department of the Treas19 ury whose official duties require such information to assist 

20 in the identification, prevention, and recovery of improper 

21 payments or in the collection of delinquent debts owed to 

22 the United States, including payments certified by the head 

23 of an executive, judicial, or legislative paying agency, and 

24 payments made to individuals whose eligibility, or con25 tinuing eligibility, to participate in a Federal program (in-
41 

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1 cluding those administered by a State or political subdivi2 sion thereof) is being reviewed. 

3 ‘‘(II) Notwithstanding the provisions of section 552a 

4 of title 5, United States Code, or any other provision of 

5 Federal or State law, the Secretary of the Treasury may 

6 compare information disclosed under subclause (I) with any 

7 other personally identifiable information derived from a 

8 Federal system of records or similar records maintained by 

9 a Federal contractor, a Federal grantee, or an entity ad10 ministering a Federal program or activity and may redis11 close such comparison of information to any paying or ad12 ministering agency and to the head of the Federal Bureau 

13 of Prisons and the head of any State agency charged with 

14 the administration of prisons with respect to inmates whom 

15 the Secretary of the Treasury has determined may have been 

16 issued, or facilitated in the issuance of, an improper pay17 ment. 

18 ‘‘(III) The comparison of information disclosed under 

19 subclause (I) shall not be considered a matching program 

20 for purposes of section 552a of title 5, United States Code.’’. 

21 (c) CONFORMING AMENDMENT TO THE DO NOT PAY

22 INITIATIVE.—Section 5(a)(2) of the Improper Payments 

23 Elimination and Recovery Improvement Act of 2012 (31 

24 U.S.C. 3321 note) is amended by adding at the end the fol25 lowing: 
42 

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1 ‘‘(F) Information regarding incarcerated 

2 individuals maintained by the Commissioner of 

3 Social Security under sections 202(x) and 

4 1611(e) of the Social Security Act.’’. 

5 TITLE III—NATURAL RESOURCES 

6 SEC. 301. ULTRA-DEEPWATER AND UNCONVENTIONAL NAT7 URAL GAS AND OTHER PETROLEUM RE8 SOURCES. 

9 (a) REPEAL.—Subtitle J of title IX of the Energy Pol10 icy Act of 2005 (42 U.S.C. 16371 et seq.) is repealed. 

11 (b) RESCISSION.—Any unobligated funds appro12 priated for carrying out the subtitle repealed by subsection 

13 (a) are rescinded. 

14 SEC. 302. AMENDMENT TO THE MINERAL LEASING ACT. 

15 Section 35(b) of the Mineral Leasing Act (30 U.S.C. 

16 191(b)) is amended to read as follows— 

17 ‘‘(b) DEDUCTION FOR ADMINISTRATIVE COSTS.—In 

18 determining the amount of payments to the States under 

19 this section, beginning in fiscal year 2014 and for each year 

20 thereafter, the amount of such payments shall be reduced 

21 by 2 percent for any administrative or other costs incurred 

22 by the United States in carrying out the program author23 ized by this Act, and the amount of such reduction shall 

24 be deposited to miscellaneous receipts of the Treasury.’’. 
43 

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1 SEC. 303. APPROVAL OF AGREEMENT WITH MEXICO. 

2 The Agreement between the United States of America 

3 and the United Mexican States Concerning Transboundary 

4 Hydrocarbon Reservoirs in the Gulf of Mexico, signed at 

5 Los Cabos, February 20, 2012, is hereby approved. 

6 SEC. 304. AMENDMENT TO THE OUTER CONTINENTAL 

7 SHELF LANDS ACT. 

8 The Outer Continental Shelf Lands Act (43 U.S.C. 

9 1331 et seq.) is amended by adding at the end the following: 

10 ‘‘SEC. 32. TRANSBOUNDARY HYDROCARBON AGREEMENTS. 

11 ‘‘(a) AUTHORIZATION.—After the date of enactment of 

12 the Bipartisan Budget Act of 2013, the Secretary may im13 plement the terms of any transboundary hydrocarbon agree14 ment for the management of transboundary hydrocarbon 

15 reservoirs entered into by the President and approved by 

16 Congress. In implementing such an agreement, the Sec17 retary shall protect the interests of the United States to pro18 mote domestic job creation and ensure the expeditious and 

19 orderly development and conservation of domestic mineral 

20 resources in accordance with all applicable United States 

21 laws governing the exploration, development, and produc22 tion of hydrocarbon resources on the Outer Continental 

23 Shelf. 

24 ‘‘(b) SUBMISSION TO CONGRESS.— 

25 ‘‘(1) IN GENERAL.—No later than 180 days after 

26 all parties to a transboundary hydrocarbon agreement 
44 

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1 have agreed to its terms, a transboundary hydro2 carbon agreement that does not constitute a treaty in 

3 the judgment of the President shall be submitted by 

4 the Secretary to— 

5 ‘‘(A) the Speaker of the House of Represent6 atives; 

7 ‘‘(B) the Majority Leader of the Senate; 

8 ‘‘(C) the Chair of the Committee on Natural 

9 Resources of the House of Representatives; and 

10 ‘‘(D) the Chair of the Committee on Energy 

11 and Natural Resources of the Senate. 

12 ‘‘(2) CONTENTS OF SUBMISSION.—The submis13 sion shall include— 

14 ‘‘(A) any amendments to this Act or other 

15 Federal law necessary to implement the agree16 ment; 

17 ‘‘(B) an analysis of the economic impacts 

18 such agreement and any amendments neces19 sitated by the agreement will have on domestic 

20 exploration, development, and production of hy21 drocarbon resources on the Outer Continental 

22 Shelf; and 

23 ‘‘(C) a detailed description of any regula24 tions expected to be issued by the Secretary to 

25 implement the agreement. 
45 

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1 ‘‘(c) IMPLEMENTATION OF SPECIFIC TRANSBOUNDARY

2 AGREEMENT WITH MEXICO.—The Secretary may take ac3 tions as necessary to implement the terms of the Agreement 

4 between the United States of America and the United Mexi5 can States Concerning Transboundary Hydrocarbon Res6 ervoirs in the Gulf of Mexico, signed at Los Cabos, February 

7 20, 2012, including— 

8 ‘‘(1) approving unitization agreements and re9 lated arrangements for the exploration, development, 

10 or production of oil and natural gas from trans11 boundary reservoirs or geological structures; 

12 ‘‘(2) making available, in the limited manner 

13 necessary under the agreement and subject to the pro14 tections of confidentiality provided by the agreement, 

15 information relating to the exploration, development, 

16 and production of oil and natural gas from a trans17 boundary reservoir or geological structure that may 

18 be considered confidential, privileged, or proprietary 

19 information under law; 

20 ‘‘(3) taking actions consistent with an expert de21 termination under the agreement; and 

22 ‘‘(4) ensuring only appropriate inspection staff 

23 at the Bureau of Safety and Environmental Enforce24 ment or other Federal agency personnel designated by 

25 the Bureau, the operator, or the lessee have authority 
46 

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1 to stop work on any installation or other device or 

2 vessel permanently or temporarily attached to the sea3 bed of the United States that may be erected thereon 

4 for the purpose of resource exploration, development 

5 or production activities as approved by the Secretary. 

6 ‘‘(d) SAVINGS PROVISIONS.—Nothing in this section 

7 shall be construed— 

8 ‘‘(1) to authorize the Secretary to participate in 

9 any negotiations, conferences, or consultations with 

10 Cuba regarding exploration, development, or produc11 tion of hydrocarbon resources in the Gulf of Mexico 

12 along the United States maritime border with Cuba 

13 or the area known by the Department of the Interior 

14 as the ‘Eastern Gap’; or 

15 ‘‘(2) as affecting the sovereign rights and the ju16 risdiction that the United States has under inter17 national law over the Outer Continental Shelf that 

18 appertains to it.’’. 

19 SEC. 305. FEDERAL OIL AND GAS ROYALTY PREPAYMENT 

20 CAP. 

21 (a) IN GENERAL.—Section 111(i) of the Federal Oil 

22 and Gas Royalty Management Act of 1982 (30 U.S.C. 

23 1721(i)) is amended by striking ‘‘(i) Upon’’ and all that 

24 follows through ‘‘For purposes’’ and inserting the following: 

25 ‘‘(i) LIMITATION ON INTEREST.— 
47 

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1 ‘‘(1) IN GENERAL.—Interest shall not be paid on 

2 any excessive overpayment. 

3 ‘‘(2) EXCESSIVE OVERPAYMENT DEFINED.—For 

4 purposes’’. 

5 (b) EFFECTIVE DATE.—The amendment made by sub6 section (a) shall take effect on July 1, 2014. 

7 SEC. 306. STRATEGIC PETROLEUM RESERVE. 

8 (a) REPEAL OF AUTHORITY TO ACQUIRE IN-KIND

9 ROYALTY CRUDE OIL.—Section 160(a) of the Energy Pol10 icy and Conservation Act (42 U.S.C. 6240(a)) is amended 

11 to read as follows: 

12 ‘‘(a) The Secretary may acquire, place in storage, 

13 transport, or exchange petroleum products acquired by pur14 chase or exchange.’’. 

15 (b) RESCISSION OF FUNDS.—Any unobligated bal16 ances available in the SPR Petroleum Account in the Treas17 ury on the date of enactment of this section are permanently 

18 rescinded. 

19 TITLE IV—FEDERAL CIVILIAN 

20 AND MILITARY RETIREMENT 

21 SEC. 401. INCREASE IN CONTRIBUTIONS TO FEDERAL EM22 PLOYEES’ RETIREMENT SYSTEM FOR NEW EM23 PLOYEES. 

24 (a) DEFINITION.— 
48 

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1 (1) IN GENERAL.—Section 8401 of title 5, 

2 United States Code, is amended— 

3 (A) in paragraph (36), by striking ‘‘and’’ 

4 at the end; 

5 (B) in paragraph (37), by striking the pe6 riod and inserting ‘‘; and’’; and 

7 (C) by adding at the end the following: 

8 ‘‘(38) the term ‘further revised annuity employee’ 

9 means any individual who— 

10 ‘‘(A) on December 31, 2013— 

11 ‘‘(i) is not an employee or Member cov12 ered under this chapter; 

13 ‘‘(ii) is not performing civilian service 

14 which is creditable service under section 

15 8411; and 

16 ‘‘(iii) has less than 5 years of cred17 itable civilian service under section 8411; 

18 and 

19 ‘‘(B) after December 31, 2013, becomes em20 ployed as an employee or becomes a Member cov21 ered under this chapter performing service which 

22 is creditable service under section 8411.’’. 

23 (2) TECHNICAL AMENDMENT.—Section 

24 8401(37)(B) of title 5, United States Code, is amend-
49 

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1 ed by inserting ‘‘and before January 1, 2014,’’ after 

2 ‘‘after December 31, 2012,’’. 

3 (b) INCREASE IN INDIVIDUAL CONTRIBUTIONS.—Sec4 tion 8422(a)(3) of title 5, United States Code, is amended— 

5 (1) in subparagraph (A), by inserting ‘‘or fur6 ther revised annuity employees’’ after ‘‘revised annu7 ity employees’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(C) The applicable percentage under this paragraph 

10 for civilian service by further revised annuity employees 

11 shall be as follows: 

‘‘Employee ................... 10.6 After December 31, 2013. 

Congressional employee ....................... 10.6 After December 31, 2013. 

Member ........................ 10.6 After December 31, 2013. 

Law enforcement officer, firefighter, 

member of the Capitol Police, member 

of the Supreme 

Court Police, or air 

traffic controller ..... 11.1 After December 31, 2013. 

Nuclear materials courier ........................... 11.1 After December 31, 2013. 

Customs and border 

protection officer ..... 11.1 After December 31, 2013.’’. 

12 (c) GOVERNMENT CONTRIBUTIONS.—Section 

13 8423(a)(2) of title 5, United States Code, is amended— 

14 (1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’; 

15 and 

16 (2) by adding at the end the following: 

17 ‘‘(B)(i) Subject to clauses (ii) and (iii), for purposes 

18 of any period in any year beginning after December 31, 
50 

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1 2013, the normal-cost percentage under this subsection shall 

2 be determined and applied as if section 401(b) of the Bipar3 tisan Budget Act of 2013 had not been enacted. 

4 ‘‘(ii) Any contributions under this subsection in excess 

5 of the amounts which (but for clause (i)) would otherwise 

6 have been payable shall be applied toward reducing the un7 funded liability of the Civil Service Retirement System. 

8 ‘‘(iii) After the unfunded liability of the Civil Service 

9 Retirement System has been eliminated, as determined by 

10 the Office, Government contributions under this subsection 

11 shall be determined and made disregarding this subpara12 graph. 

13 ‘‘(iv) The preceding provisions of this subparagraph 

14 shall be disregarded for purposes of determining the con15 tributions payable by the United States Postal Service and 

16 the Postal Regulatory Commission.’’. 

17 (d) ANNUITY CALCULATION.—Section 8415(d) of title 

18 5, United States Code, is amended by inserting ‘‘or a fur19 ther revised annuity employee’’ after ‘‘a revised annuity 

20 employee’’. 

21 SEC. 402. FOREIGN SERVICE PENSION SYSTEM. 

22 (a) DEFINITION.— 

23 (1) IN GENERAL.—Section 852 of the Foreign 

24 Service Act of 1980 (22 U.S.C. 4071a) is amended— 
51 

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1 (A) by redesignating paragraphs (8), (9), 

2 and (10) as paragraphs (9), (10), and (11), re3 spectively; and 

4 (B) by inserting after paragraph (7) the fol5 lowing: 

6 ‘‘(8) the term ‘further revised annuity partici7 pant’ means any individual who— 

8 ‘‘(A) on December 31, 2013— 

9 ‘‘(i) is not a participant; 

10 ‘‘(ii) is not performing service which is 

11 creditable service under section 854; and 

12 ‘‘(iii) has less than 5 years creditable 

13 service under section 854; and 

14 ‘‘(B) after December 31, 2013, becomes a 

15 participant performing service which is cred16 itable service under section 854;’’. 

17 (2) TECHNICAL AMENDMENT.—Section 852(7)(B) 

18 of the Foreign Service Act of 1980 (22 U.S.C. 

19 4071a(7)(B)) is amended by inserting ‘‘and before 

20 January 1, 2014,’’ after ‘‘after December 31, 2012,’’. 

21 (b) DEDUCTIONS AND WITHHOLDINGS FROM PAY.— 

22 Section 856(a)(2) of the Foreign Service Act of 1980 (22 

23 U.S.C. 4071e(a)(2)) is amended— 
52 

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1 (1) in subparagraph (A), by inserting ‘‘or a fur2 ther revised annuity participant’’ after ‘‘revised an3 nuity participant’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(C) The applicable percentage for a further revised 

6 annuity participant shall be as follows: 

‘‘11.15 ................................ After December 31, 2013.’’. 

7 (c) GOVERNMENT CONTRIBUTIONS.—Section 857 of the 

8 Foreign Service Act of 1980 (22 U.S.C. 4071f) is amended 

9 by adding at the end the following: 

10 ‘‘(c)(1) Subject to paragraphs (2) and (3), for purposes 

11 of any period in any year beginning after December 31, 

12 2013, the normal-cost percentage under this section shall 

13 be determined and applied as if section 402(b) of the Bipar14 tisan Budget Act of 2013 had not been enacted. 

15 ‘‘(2) Any contributions under this section in excess of 

16 the amounts which (but for paragraph (1)) would otherwise 

17 have been payable shall be applied toward reducing the un18 funded liability of the Foreign Service Retirement and Dis19 ability System. 

20 ‘‘(3) After the unfunded liability of the Foreign Service 

21 Retirement and Disability System has been eliminated, as 

22 determined by the Secretary of State, Government contribu23 tions under this section shall be determined and made dis24 regarding this subsection.’’. 
53 

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1 SEC. 403. ANNUAL ADJUSTMENT OF RETIRED PAY AND RE2 TAINER PAY AMOUNTS FOR RETIRED MEM3 BERS OF THE ARMED FORCES UNDER AGE 62. 

4 (a) CPI MINUS ONE PERCENT.—Section 1401a(b) of 

5 title 10, United States Code, is amended— 

6 (1) in paragraph (1), by striking ‘‘paragraphs 

7 (2) and (3)’’ and inserting ‘‘paragraph (2), (3), or 

8 (4)’’; 

9 (2) by redesignating paragraphs (4) and (5) as 

10 paragraphs (5) and (6), respectively; and 

11 (3) by inserting after paragraph (3) the fol12 lowing new paragraph (4): 

13 ‘‘(4) REDUCED PERCENTAGE FOR RETIRED MEM14 BERS UNDER AGE 62.— 

15 ‘‘(A) IN GENERAL.—Effective on December 

16 1 of each year, the retired pay of each member 

17 and former member under 62 years of age enti18 tled to that pay shall be adjusted in accordance 

19 with this paragraph instead of paragraph (2) or 

20 (3). 

21 ‘‘(B) CPI MINUS ONE.—If the percent deter22 mined under paragraph (2) is greater than 1 

23 percent, the Secretary shall increase the retired 

24 pay of each member and former member by the 

25 difference between— 
54 

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1 ‘‘(i) the percent determined under 

2 paragraph (2); and 

3 ‘‘(ii) 1 percent. 

4 ‘‘(C) NO NEGATIVE ADJUSTMENT.—If the 

5 percent determined under paragraph (2) is equal 

6 to or less than 1 percent, the Secretary shall not 

7 increase the retired pay of members and former 

8 members under this paragraph. 

9 ‘‘(D) REVISED ADJUSTMENT UPON REACH10 ING AGE 62.—When a member or former member 

11 whose retired pay has been subject to adjustment 

12 under this paragraph becomes 62 years of age, 

13 the Secretary of Defense shall recompute the re14 tired pay of the member or former member, to be 

15 effective on the date of the next adjustment of re16 tired pay under this subsection, so as to be the 

17 amount equal to the amount of retired pay to 

18 which the member or former member would be 

19 entitled on that date if increases in the retired 

20 pay of the member or former member had been 

21 computed as provided in paragraph (2) or as 

22 specified in section 1410 of this title, as applica23 ble, rather than this paragraph. 

24 ‘‘(E) INAPPLICABILITY OF CATCH-UP

25 RULE.—Paragraph (5) shall not apply in the 
55 

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1 case of adjustments made, or not made, as a re2 sult of application of this paragraph.’’. 

3 (b) RESTORAL OF FULL RETIREMENT AMOUNT AT AGE

4 62.—Section 1410(1) of title 10, United States Code, is 

5 amended by striking ‘‘paragraph (3)’’ and inserting ‘‘para6 graph (3) or (4)’’. 

7 (c) EFFECTIVE DATE.—The amendments made by sub8 sections (a) and (b) shall take effect on December 1, 2015. 

9 TITLE V—HIGHER EDUCATION 

10 SEC. 501. DEFAULT REDUCTION PROGRAM. 

11 Effective July 1, 2014, section 428F(a)(1) of the High12 er Education Act of 1965 (20 U.S.C. 1078-6(a)(1)) is 

13 amended— 

14 (1) in subparagraph (A), by striking clause (ii) 

15 and inserting the following: 

16 ‘‘(ii) beginning July 1, 2014, assign 

17 the loan to the Secretary if the guaranty 

18 agency has been unable to sell the loan 

19 under clause (i).’’; and 

20 (2) in subparagraph (D), by striking clause (i) 

21 and inserting the following: 

22 ‘‘(i) the guaranty agency— 

23 ‘‘(I) shall, in the case of a sale 

24 made on or after July 1, 2014, repay 

25 the Secretary 100 percent of the 
56 

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1 amount of the principal balance out2 standing at the time of such sale, mul3 tiplied by the reinsurance percentage 

4 in effect when payment under the 

5 guaranty agreement was made with re6 spect to the loan; and 

7 ‘‘(II) may, in the case of a sale 

8 made on or after July 1, 2014, in 

9 order to defray collection costs— 

10 ‘‘(aa) charge to the borrower 

11 an amount not to exceed 16 per12 cent of the outstanding principal 

13 and interest at the time of the 

14 loan sale; and 

15 ‘‘(bb) retain such amount 

16 from the proceeds of the loan sale; 

17 and’’. 

18 SEC. 502. ELIMINATION OF NONPROFIT SERVICING CON19 TRACTS. 

20 The Higher Education Act of 1965 (20 U.S.C. 1001 

21 et seq.) is amended— 

22 (1) in section 456 (20 U.S.C. 1087f)— 

23 (A) in subsection (a), by striking paragraph 

24 (4); and 

25 (B) by striking subsection (c); and 
57 

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1 (2) in section 458(a) (20 U.S.C. 1087h(a)), by 

2 striking paragraph (2). 

3 TITLE VI—TRANSPORTATION 

4 SEC. 601. AVIATION SECURITY SERVICE FEES. 

5 (a) AIR CARRIER FEES.— 

6 (1) REPEAL.—Section 44940(a)(2) of title 49, 

7 United States Code, is repealed. 

8 (2) CONFORMING AMENDMENT.—Section 

9 44940(d)(1) of such title is amended by striking ‘‘, 

10 and may impose a fee under subsection (a)(2),’’. 

11 (3) EFFECTIVE DATE.—The repeal made by 

12 paragraph (1) and the amendment made by para13 graph (2) shall each take effect on October 1, 2014. 

14 (b) RESTRUCTURING OF PASSENGER FEE.—Section 

15 44940(c) of such title is amended to read as follows: 

16 ‘‘(c) LIMITATION ON FEE.—Fees imposed under sub17 section (a)(1) shall be $5.60 per one-way trip in air trans18 portation or intrastate air transportation that originates 

19 at an airport in the United States.’’. 

20 (c) DEPOSIT OF RECEIPTS IN GENERAL FUND.—Sec21 tion 44940(i) of such title is amended to read as follows: 

22 ‘‘(i) DEPOSIT OF RECEIPTS IN GENERAL FUND.— 

23 ‘‘(1) IN GENERAL.—Beginning in fiscal year 

24 2014, out of fees received in a fiscal year under sub25 section (a)(1), after amounts are made available in 
58 

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1 the fiscal year under section 44923(h), the next funds 

2 derived from such fees in the fiscal year, in the 

3 amount specified for the fiscal year in paragraph (4), 

4 shall be credited as offsetting receipts and deposited 

5 in the general fund of the Treasury. 

6 ‘‘(2) FEE LEVELS.—The Secretary of Homeland 

7 Security shall impose the fee authorized by subsection 

8 (a)(1) so as to collect in a fiscal year at least the 

9 amount specified in paragraph (4) for the fiscal year 

10 for making deposits under paragraph (1). 

11 ‘‘(3) RELATIONSHIP TO OTHER PROVISIONS.— 

12 Subsections (b) and (f) shall not apply to amounts to 

13 be used for making deposits under this subsection. 

14 ‘‘(4) FISCAL YEAR AMOUNTS.—For purposes of 

15 paragraphs (1) and (2), the fiscal year amounts are 

16 as follows: 

17 ‘‘(A) $390,000,000 for fiscal year 2014. 

18 ‘‘(B) $1,190,000,000 for fiscal year 2015. 

19 ‘‘(C) $1,250,000,000 for fiscal year 2016. 

20 ‘‘(D) $1,280,000,000 for fiscal year 2017. 

21 ‘‘(E) $1,320,000,000 for fiscal year 2018. 

22 ‘‘(F) $1,360,000,000 for fiscal year 2019. 

23 ‘‘(G) $1,400,000,000 for fiscal year 2020. 

24 ‘‘(H) $1,440,000,000 for fiscal year 2021. 

25 ‘‘(I) $1,480,000,000 for fiscal year 2022. 
59 

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1 ‘‘(J) $1,520,000,000 for fiscal year 2023.’’. 

2 (d) IMPOSITION OF FEE INCREASE.—The Secretary of 

3 Homeland Security shall implement the fee increase author4 ized by the amendment made by subsection (b)— 

5 (1) beginning on July 1, 2014; and 

6 (2) through the publication of notice of such fee 

7 in the Federal Register, notwithstanding section 9701 

8 of title 31, United States Code, and the procedural re9 quirements of section 553 of title 5, United States 

10 Code. 

11 (e) CONTINUED AVAILABILITY OF EXISTING BAL12 ANCES.—The amendments made by this section shall not 

13 affect the availability of funds made available under section 

14 44940(i) of title 49, United States Code, before the date of 

15 enactment of this Act. 

16 SEC. 602. TRANSPORTATION COST REIMBURSEMENT. 

17 (a) REPEAL.—Sections 55316 and 55317 of chapter 

18 553 of title 46, United States Code, are repealed. 

19 (b) TABLE OF SECTIONS AMENDMENT.—The table of 

20 sections at the beginning of chapter 553 of title 46, United 

21 States Code, is amended by striking the items relating to 

22 section 55316 and 55317. 

23 SEC. 603. STERILE AREAS AT AIRPORTS. 

24 Section 44903 of title 49, United States Code, is 

25 amended by adding at the end the following: 
60 

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1 ‘‘(n) PASSENGER EXIT POINTS FROM STERILE

2 AREA.— 

3 ‘‘(1) IN GENERAL.—The Secretary of Homeland 

4 Security shall ensure that the Transportation Secu5 rity Administration is responsible for monitoring 

6 passenger exit points from the sterile area of airports 

7 at which the Transportation Security Administration 

8 provided such monitoring as of December 1, 2013. 

9 ‘‘(2) STERILE AREA DEFINED.—In this section, 

10 the term ‘sterile area’ has the meaning given that 

11 term in section 1540.5 of title 49, Code of Federal 

12 Regulations (or any corresponding similar regulation 

13 or ruling).’’. 

14 TITLE VII—MISCELLANEOUS 

15 PROVISIONS 

16 SEC. 701. EXTENSION OF CUSTOMS USER FEES. 

17 Section 13031(j)(3) of the Consolidated Omnibus 

18 Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is 

19 amended— 

20 (1) in subparagraph (A), by striking ‘‘October 

21 22, 2021’’ and inserting ‘‘September 30, 2023’’; and 

22 (2) in subparagraph (B)(i), by striking ‘‘October 

23 29, 2021’’ and inserting ‘‘September 30, 2023’’. 
61 

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1 SEC. 702. LIMITATION ON ALLOWABLE GOVERNMENT CON2 TRACTOR COMPENSATION COSTS. 

3 (a) LIMITATION.— 

4 (1) CIVILIAN CONTRACTS.—Section 4304(a)(16) 

5 of title 41, United States Code, is amended to read as 

6 follows: 

7 ‘‘(16) Costs of compensation of contractor and 

8 subcontractor employees for a fiscal year, regardless of 

9 the contract funding source, to the extent that such 

10 compensation exceeds $487,000 per year, adjusted an11 nually to reflect the change in the Employment Cost 

12 Index for all workers, as calculated by the Bureau of 

13 Labor Statistics, except that the head of an executive 

14 agency may establish one or more narrowly targeted 

15 exceptions for scientists, engineers, or other specialists 

16 upon a determination that such exceptions are needed 

17 to ensure that the executive agency has continued ac18 cess to needed skills and capabilities.’’. 

19 (2) DEFENSE CONTRACTS.—Section 

20 2324(e)(1)(P) of title 10, United States Code, is 

21 amended to read as follows: 

22 ‘‘(P) Costs of compensation of contractor 

23 and subcontractor employees for a fiscal year, re24 gardless of the contract funding source, to the ex25 tent that such compensation exceeds $487,000 

26 per year, adjusted annually to reflect the change 
62 

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1 in the Employment Cost Index for all workers, 

2 as calculated by the Bureau of Labor Statistics, 

3 except that the head of an executive agency may 

4 establish one or more narrowly targeted excep5 tions for scientists, engineers, or other specialists 

6 upon a determination that such exceptions are 

7 needed to ensure that the executive agency has 

8 continued access to needed skills and capabili9 ties.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) REPEAL.—Section 1127 of title 41, United 

12 States Code, is hereby repealed. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions at the beginning of chapter 11 of title 41, 

15 United States Code, is amended by striking the item 

16 relating to section 1127. 

17 (c) APPLICABILITY.—This section and the amendments 

18 made by this section shall apply only with respect to costs 

19 of compensation incurred under contracts entered into on 

20 or after the date that is 180 days after the date of the enact21 ment of this Act. 

22 (d) REPORTS.— 

23 (1) IN GENERAL.—Not later than 60 days after 

24 the end of each fiscal year, the Director of the Office 
63 

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1 of Management and Budget shall submit a report on 

2 contractor compensation to— 

3 (A) the Committee on Armed Services of the 

4 Senate; 

5 (B) the Committee on Armed Services of the 

6 House of Representatives; 

7 (C) the Committee on Homeland Security 

8 and Governmental Affairs of the Senate; 

9 (D) the Committee on Oversight and Gov10 ernment Reform of the House of Representatives; 

11 (E) the Committee on Appropriations of the 

12 Senate; and 

13 (F) the Committee on Appropriations of the 

14 House of Representatives. 

15 (2) ELEMENTS.—The report required under 

16 paragraph (1) shall include— 

17 (A) the total number of contractor employ18 ees, by executive agency, in the narrowly tar19 geted exception positions described under sub20 section (a) during the preceding fiscal year; 

21 (B) the taxpayer-funded compensation 

22 amounts received by each contractor employee in 

23 a narrowly targeted exception position during 

24 such fiscal year; and 
64 

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1 (C) the duties and services performed by 

2 contractor employees in the narrowly targeted 

3 exception positions during such fiscal year. 

4 (e) REVIEW.—Not later than 90 days after the date 

5 of the enactment of this Act, the Secretary of Defense and 

6 the Director of the Office of Management and Budget shall 

7 report to Congress on alternative benchmarks and industry 

8 standards for compensation, including whether any such 

9 benchmarks or standards would provide a more appropriate 

10 measure of allowable compensation for the purposes of sec11 tion 2324(e)(1)(P) of title 10, United States Code, and sec12 tion 4304(a)(16) of title 41, United States Code, as amend13 ed by this Act. 

14 SEC. 703. PENSION BENEFIT GUARANTY CORPORATION 

15 PREMIUM RATE INCREASES. 

16 (a) FLAT-RATE PREMIUM INCREASES.—Section 

17 4006(a)(3)(A)(i) of the Employee Retirement Income Secu18 rity Act of 1974 (29 U.S.C. 1306(a)(3)(A)(i)) is amended— 

19 (1) in subclause (II), by striking ‘‘and’’ at the 

20 end; 

21 (2) in subclause (III), by inserting ‘‘and before 

22 January 1, 2015,’’ after ‘‘December 31, 2013’’; and 

23 (3) by inserting after subclause (III) the fol24 lowing: 
65 

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1 ‘‘(IV) for plan years beginning after Decem2 ber 31, 2014, and before January 1, 2016, $57; 

3 and 

4 ‘‘(V) for plan years beginning after Decem5 ber 31, 2015, and before January 1, 2017, $64.’’. 

6 (b) FLAT-RATE PREMIUM RATE INDEXED TO

7 WAGES.— 

8 (1) IN GENERAL.—Section 4006(a)(3) of such 

9 Act (29 U.S.C. 1306(a)(3)) is amended— 

10 (A) by redesignating subparagraphs (G) 

11 through (J) as subparagraphs (H) through (K), 

12 respectively; and 

13 (B) by inserting after subparagraph (F) the 

14 following: 

15 ‘‘(G) For each plan year beginning in a calendar year 

16 after 2016, there shall be substituted for the premium rate 

17 specified in clause (i) of subparagraph (A) an amount equal 

18 to the greater of— 

19 ‘‘(i) the product derived by multiplying the pre20 mium rate specified in clause (i) of subparagraph (A) 

21 by the ratio of— 

22 ‘‘(I) the national average wage index (as de23 fined in section 209(k)(1) of the Social Security 

24 Act) for the first of the 2 calendar years pre-
66 

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1 ceding the calendar year in which such plan 

2 year begins, to 

3 ‘‘(II) the national average wage index (as so 

4 defined) for 2014; and 

5 ‘‘(ii) the premium rate in effect under clause (i) 

6 of subparagraph (A) for plan years beginning in the 

7 preceding calendar year. 

8 If the amount determined under this subparagraph is not 

9 a multiple of $1, such product shall be rounded to the near10 est multiple of $1.’’. 

11 (2) CONFORMING AMENDMENTS.—Section 

12 4006(a)(3)(F) of such Act (29 U.S.C. 1306(a)(3)(F)) 

13 is amended— 

14 (A) in the matter before clause (i), by in15 serting ‘‘and before 2013’’ after ‘‘after 2006’’; 

16 and 

17 (B) in the flush text following clause (ii), by 

18 striking the second sentence. 

19 (c) VARIABLE RATE PREMIUM INCREASES.— 

20 (1) IN GENERAL.—Section 4006(a)(8)(C) of such 

21 Act (29 U.S.C. 1306(a)(8)(C)) is amended— 

22 (A) in clause (i), by striking ‘‘and’’ at the 

23 end; 

24 (B) in clause (ii), by striking ‘‘$5.’’ and in25 serting ‘‘$10; and’’; and 
67 

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1 (C) by adding at the end the following: 

2 ‘‘(iii) in the case of plan years begin3 ning in calendar year 2016, by $5.’’. 

4 (2) CONFORMING AMENDMENTS.—Section 

5 4006(a)(8) of such Act (29 U.S.C. 1306(a)(8)) is 

6 amended— 

7 (A) in subparagraph (A)— 

8 (i) in clause (ii), by striking ‘‘and’’ at 

9 the end; 

10 (ii) in clause (iii), by striking the pe11 riod at the end and inserting ‘‘; and’’; and 

12 (iii) by adding at the end the fol13 lowing: 

14 ‘‘(iv) for plan years beginning after 

15 calendar year 2016, the amount in effect for 

16 plan years beginning in 2016 (determined 

17 after application of subparagraph (C)).’’; 

18 and 

19 (B) in subparagraph (D)— 

20 (i) in clause (ii), by striking ‘‘and’’ at 

21 the end; 

22 (ii) in clause (iii), by striking the pe23 riod at the end and inserting ‘‘; and’’; and 

24 (iii) by adding at the end the fol25 lowing: 
68 

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1 ‘‘(iv) 2014, in the case of plan years 

2 beginning after calendar year 2016.’’. 

3 (d) INCREASE IN VARIABLE RATE PREMIUM CAP.— 

4 (1) IN GENERAL.—Section 4006(a)(3)(E)(i) of 

5 such Act (29 U.S.C. 1306(a)(3)(E)(i)) is amended— 

6 (A) in subclause (I), by striking ‘‘and’’ at 

7 the end; 

8 (B) in subclause (II)— 

9 (i) by inserting ‘‘and before 2016’’ 

10 after ‘‘2012’’; and 

11 (ii) by striking the period at the end 

12 and inserting ‘‘and’’; and 

13 (C) by adding at the end the following: 

14 ‘‘(III) in the case of plan years beginning in a 

15 calendar year after 2015, shall not exceed $500.’’. 

16 (2) INDEX TO WAGES.—Section 4006(a)(3) of 

17 such Act (29 U.S.C. 1306(a)(3)) is amended— 

18 (A) in subparagraph (K) (as redesignated 

19 by subsection (b)(1)(A)), by inserting ‘‘and before 

20 2016’’ after ‘‘2013’’; and 

21 (B) by inserting at the end the following: 

22 ‘‘(L) For each plan year beginning in a calendar year 

23 after 2016, there shall be substituted for the dollar amount 

24 specified in subclause (III) of subparagraph (E)(i) an 

25 amount equal to the greater of— 
69 

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1 ‘‘(i) the product derived by multiplying such dol2 lar amount by the ratio of— 

3 ‘‘(I) the national average wage index (as de4 fined in section 209(k)(1) of the Social Security 

5 Act) for the first of the 2 calendar years pre6 ceding the calendar year in which such plan 

7 year begins, to 

8 ‘‘(II) the national average wage index (as so 

9 defined) for 2014; and 

10 ‘‘(ii) such dollar amount for plan years begin11 ning in the preceding calendar year. 

12 If the amount determined under this subparagraph is not 

13 a multiple of $1, such product shall be rounded to the near14 est multiple of $1.’’. 

15 (e) EFFECTIVE DATE.—The amendments made by this 

16 section shall apply to plan years beginning after December 

17 31, 2013. 

18 SEC. 704. CANCELLATION OF UNOBLIGATED BALANCES. 

19 (a) DEPARTMENT OF JUSTICE ASSETS FORFEITURE

20 FUND.—Effective on the date of enactment of this Act, of 

21 the unobligated balances available under the Department 

22 of Justice Assets Forfeiture Fund, $693,000,000 are perma23 nently cancelled. 

24 (b) TREASURY FORFEITURE FUND.—Effective on the 

25 date of enactment of this Act, of the unobligated balances 
70 

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1 available under the Department of the Treasury Forfeiture 

2 Fund, $867,000,000, are permanently cancelled. 

3 SEC. 705. CONSERVATION PLANNING TECHNICAL ASSIST4 ANCE USER FEES. 

5 (a) USER FEES AUTHORIZED.—Section 3 of the Soil 

6 Conservation and Domestic Allotment Act (16 U.S.C. 590c) 

7 is amended— 

8 (1) by striking ‘‘require—’’ and inserting ‘‘re9 quire the following:’’; 

10 (2) in paragraph (1), by striking the semicolon 

11 at the end and inserting a period; 

12 (3) in paragraph (2), by striking ‘‘; and’’ at the 

13 end and inserting a period; and 

14 (4) by adding at the end the following: 

15 ‘‘(4)(A) The payment of user fees for conservation 

16 planning technical assistance if the Secretary determines 

17 that the fees, subject to subparagraph (B), are— 

18 ‘‘(i) reasonable and appropriate; 

19 ‘‘(ii) assessed for conservation planning technical 

20 assistance resulting in the development of a conserva21 tion plan; and 

22 ‘‘(iii) assessed based on the size of the land or the 

23 complexity of the resource issues involved. 
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1 ‘‘(B) Fees under subparagraph (A) may not exceed 

2 $150 per conservation plan for which technical assistance 

3 is provided. 

4 ‘‘(C) The Secretary may waive fees otherwise required 

5 under subparagraph (A) in the case of conservation plan6 ning technical assistance provided— 

7 ‘‘(i) to beginning farmers or ranchers (as defined 

8 in section 343(a) of the Consolidated Farm and Rural 

9 Development Act (7 U.S.C. 1991(a)); 

10 ‘‘(ii) to limited resource farmers or ranchers (as 

11 defined by the Secretary); 

12 ‘‘(iii) to socially disadvantaged farmers or 

13 ranchers (as defined in section 355(e) of the Consoli14 dated Farm and Rural Development Act (7 U.S.C. 

15 2003(e)); 

16 ‘‘(iv) to qualify for an exemption from ineligi17 bility under section 1212 of the Food Security Act of 

18 1985 (16 U.S.C. 3812); or 

19 ‘‘(v) to comply with Federal, State, or local regu20 latory requirements.’’. 

21 (b) CONSERVATION TECHNICAL ASSISTANCE FUND.— 

22 Section 6 of the Soil Conservation and Domestic Allotment 

23 Act (16 U.S.C. 590f) is amended— 
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1 (1) by striking ‘‘SEC. 6.’’ and all that follows 

2 through ‘‘There are hereby authorized’’ and inserting 

3 the following: 

4 ‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS AND CON5 SERVATION TECHNICAL ASSISTANCE FUNDS. 

6 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(b) CONSERVATION TECHNICAL ASSISTANCE FUND.— 

10 ‘‘(1) IN GENERAL.—There is established in the 

11 Treasury of the United States a fund to be known as 

12 the ‘Conservation Technical Assistance Fund’ (re13 ferred to in this subsection as the ‘Fund’), to be ad14 ministered by the Secretary of Agriculture. 

15 ‘‘(2) DEPOSITS.—An amount equal to the 

16 amounts collected as fees under section 3(4) and late 

17 payments, interest, and such other amounts as are 

18 authorized to be collected pursuant to section 3717 of 

19 title 31, United States Code, shall be deposited in the 

20 Fund. 

21 ‘‘(3) AVAILABILITY.—Amounts in the Fund 

22 shall— 

23 ‘‘(A) only be available to the extent and in 

24 the amount provided in advance in appropria25 tions Acts; 
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1 ‘‘(B) be used for the costs of carrying out 

2 this Act; and 

3 ‘‘(C) remain available until expended.’’. 

4 SEC. 706. SELF PLUS ONE COVERAGE. 

5 (a) ELECTION OF COVERAGE.—Section 8905 of title 5, 

6 United States Code, is amended— 

7 (1) by striking subsection (a) and inserting the 

8 following: 

9 ‘‘(a) An employee may enroll in an approved health 

10 benefits plan described in section 8903 or 8903a— 

11 ‘‘(1) as an individual; 

12 ‘‘(2) for self plus one; or 

13 ‘‘(3) for self and family.’’; 

14 (2) in subsection (c)— 

15 (A) in paragraph (1), in the matter fol16 lowing subparagraph (B), by inserting ‘‘for self 

17 plus one or’’ before ‘‘self and family as provided 

18 in paragraph (2) of this subsection’’; and 

19 (B) in paragraph (2)— 

20 (i) in the matter preceding subpara21 graph (A), by inserting ‘‘for self plus one 

22 or’’ before ‘‘for self and family’’; and 

23 (ii) in subparagraph (B), by inserting 

24 ‘‘(or, in the case of self plus one coverage, 
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1 not more than 1 such child)’’ after ‘‘adopted 

2 children’’; 

3 (3) in subsection (e), by striking ‘‘or each spouse 

4 may enroll as an individual’’ and inserting ‘‘or for 

5 a self plus one enrollment that covers the spouse, or 

6 each spouse may enroll as an individual or for a self 

7 plus one enrollment that does not cover the other 

8 spouse or a child who is covered under the enrollment 

9 of the other spouse’’; and 

10 (4) in subsection (h)— 

11 (A) by striking ‘‘self and family enroll12 ment’’ each place it appears and inserting ‘‘self 

13 plus one or self and family enrollment, as nec14 essary to provide health insurance coverage for 

15 each child who is covered under the order,’’; 

16 (B) by striking ‘‘a child’’ each place it ap17 pears and inserting ‘‘1 or more children’’; 

18 (C) by striking ‘‘the child resides’’ each 

19 place it appears and inserting ‘‘the child or chil20 dren reside’’; 

21 (D) in paragraph (1), by striking ‘‘self and 

22 family coverage’’ each place it appears and in23 serting ‘‘self plus one or self and family coverage, 

24 as necessary to provide health insurance coverage 
75 

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1 for each child who is covered under the order,’’; 

2 and 

3 (E) in paragraph (3), by striking ‘‘the child 

4 continues’’ and inserting ‘‘the child or children 

5 continue’’. 

6 (b) CONTINUED COVERAGE.—Section 8905a of title 5, 

7 United States Code, is amended— 

8 (1) in subsection (d)(3)(A), by inserting ‘‘for self 

9 plus one or’’ before ‘‘for self and family’’; and 

10 (2) in subsection (f)(3)(A), by striking ‘‘for self 

11 and family based on such person’s separation from 

12 service’’ and inserting ‘‘based on such person’s sepa13 ration from service under a self plus one enrollment 

14 that covered the individual or under a self and family 

15 enrollment’’. 

16 (c) CONTRIBUTIONS.—Section 8906(a)(1) of title 5, 

17 United States Code is amended— 

18 (1) in subparagraph (A), by striking at the end 

19 ‘‘and’’; 

20 (2) by redesignating subparagraph (B) as sub21 paragraph (C); and 

22 (3) by inserting after subparagraph (A) the fol23 lowing: 

24 ‘‘(B) enrollments under this chapter for self plus 

25 one; and’’. 
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1 (d) WEIGHTED AVERAGE FOR FIRST YEAR.—For the 

2 first contract year for which an employee may enroll for 

3 self plus one coverage under chapter 89 of title 5, United 

4 States Code, the Office of Personnel Management shall de5 termine the weighted average of the subscription charges 

6 that will be in effect for the contract year for enrollments 

7 for self plus one under such chapter based on an actuarial 

8 analysis. 

9 DIVISION B—MEDICARE AND 

10 OTHER HEALTH PROVISIONS 

11 SEC. 1001. SHORT TITLE; TABLE OF CONTENTS. 

12 (a) SHORT TITLE.— This division may be cited as the 

13 ‘‘Pathway for SGR Reform Act of 2013’’. 

14 (b) TABLE OF CONTENTS.—The table of contents of this 

15 division is as follows: 

DIVISION B—MEDICARE AND OTHER HEALTH PROVISIONS 

Sec. 1001. Short title; table of contents. 

Sec. 1002. Findings; purpose statement. 

TITLE I—MEDICARE EXTENDERS 

Sec. 1101. Physician payment update. 

Sec. 1102. Extension of work GPCI floor. 

Sec. 1103. Extension of therapy cap exceptions process. 

Sec. 1104. Extension of ambulance add-ons. 

Sec. 1105. Medicare inpatient hospital payment adjustment for low-volume hospitals. 

Sec. 1106. Medicare-dependent hospital (MDH) program. 

Sec. 1107. 1-year extension of authorization for special needs plans. 

Sec. 1108. 1-year extension of Medicare reasonable cost contracts. 

Sec. 1109. Extension of existing funding for contract with consensus-based entity. 

Sec. 1110. Extension of funding outreach and assistance for low-income programs. 

TITLE II—OTHER HEALTH PROVISIONS 

Sec. 1201. Extension of the qualifying individual (QI) program. 

Sec. 1202. Temporary extension of transitional medical assistance (TMA). 
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Sec. 1203. Extension of funding for family-to-family health information centers. 

Sec. 1204. Delay of reductions to Medicaid DSH allotments. 

Sec. 1205. Realignment of the Medicare sequester for fiscal year 2023. 

Sec. 1206. Payment for inpatient services in long-term care hospitals (LTCHs). 

1 SEC. 1002. FINDINGS; PURPOSE STATEMENT. 

2 In order to support the provision of quality care for 

3 our nations seniors, Congress finds it appropriate to reform 

4 physician reimbursements under the Medicare program. 

5 SGR reform legislation provides such an opportunity, but 

6 not until next year. In order to facilitate such reform, Con7 gress finds that the Centers for Medicare & Medicaid Serv8 ices should continue to focus its efforts on the following 

9 areas: 

10 (1) SIMPLIFY AND REDUCE ADMINISTRATIVE

11 BURDEN ON PHYSICIANS.—The application and as12 sessment of measures and other activities under SGR 

13 reform should be facilitated by the Centers for Medi14 care and Medicaid Services (CMS) in a way that ac15 counts for the administrative burden such measure16 ment places on physicians. Therefore, the Congress en17 courages CMS to identify and implement, to the ex18 tent practicable, mechanisms to ensure that the appli19 cation and assessment of measures be coordinated 

20 across programs. 

21 (2) TIMELY FEEDBACK FOR PHYSICIANS.—In 

22 order for measure and assessment programs to en23 courage the highest quality care for Medicare seniors, 
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1 the Congress finds it critical that CMS provide physi2 cians with feedback on performance in as close to real 

3 time as possible. Such timely feedback will ensure 

4 that physicians can excel under a system of meaning5 ful measurement. 

6 (3) ENCOURAGE DEVELOPMENT OF NEW MOD7 ELS.—There is great need to test alternatives to Fee8 For-Service reimbursement in the Medicare program. 

9 One option is the promotion and adoption of new 

10 models of care for physicians. To date, there has been 

11 significant development and testing of models for pri12 mary care. Congress supports these efforts and en13 courages them to continue in the future. Congress also 

14 encourages the development and testing of models of 

15 specialty care. 

16 TITLE I—MEDICARE EXTENDERS 

17 SEC. 1101. PHYSICIAN PAYMENT UPDATE. 

18 Section 1848(d) of the Social Security Act (42 U.S.C. 

19 10 1395w–4(d)) is amended by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(15) UPDATE FOR JANUARY THROUGH MARCH

22 OF 2014.— 

23 ‘‘(A) IN GENERAL.—Subject to paragraphs 

24 (7)(B), (8)(B), (9)(B), (10)(B), (11)(B), (12)(B), 

25 (13)(B), and (14)(B), in lieu of the update to the 
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1 single conversion factor established in paragraph 

2 (1)(C) that would otherwise apply for 2014 for 

3 the period beginning on January 1, 2014, and 

4 ending on March 31, 2014, the update to the sin5 gle conversion factor shall be 0.5 percent. 

6 ‘‘(B) NO EFFECT ON COMPUTATION OF CON7 VERSION FACTOR FOR REMAINING PORTION OF

8 2014 AND SUBSEQUENT YEARS.—The conversion 

9 factor under this subsection shall be computed 

10 under paragraph (1)(A) for the period beginning 

11 on April 1, 2014, and ending on December 31, 

12 2014, and for 2015 and subsequent years as if 

13 subparagraph (A) had never applied.’’. 

14 SEC. 1102. EXTENSION OF WORK GPCI FLOOR. 

15 Section 1848(e)(1)(E) of the Social Security Act (42 

16 U.S.C. 1395w-4(e)(1)(E)) is amended by striking ‘‘January 

17 1, 2014’’ and inserting ‘‘April 1, 2014’’. 

18 SEC. 1103. EXTENSION OF THERAPY CAP EXCEPTIONS 

19 PROCESS. 

20 Section 1833(g) of the Social Security Act (42 U.S.C. 

21 1395l(g)) is amended— 

22 (1) in paragraph (5)(A), in the first sentence, by 

23 striking ‘‘December 31, 2013’’ and inserting ‘‘March 

24 31, 2014’’; and 

25 (2) in paragraph (6)(A)— 
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1 (A) by striking ‘‘December 31, 2013’’ and 

2 inserting ‘‘March 31, 2014’’; and 

3 (B) by striking ‘‘or 2013’’ and inserting ‘‘, 

4 2013, or the first three months of 2014’’. 

5 SEC. 1104. EXTENSION OF AMBULANCE ADD-ONS. 

6 (a) GROUND AMBULANCE.—Section 1834(l)(13)(A) of 

7 the Social Security Act (42 U.S.C. 1395m(l)(13)(A)) is 

8 amended— 

9 (1) in the matter preceding clause (i), by strik10 ing ‘‘January 1, 2014’’ and inserting ‘‘April 1, 

11 2014’’; and 

12 (2) in each of clauses (i) and (ii), by striking 

13 ‘‘January 1, 2014’’ and inserting ‘‘April 1, 2014’’ 

14 each place it appears. 

15 (b) SUPER RURAL GROUND AMBULANCE.—Section 

16 1834(l)(12)(A) of the Social Security Act (42 U.S.C. 

17 1395m(l)(12)(A)) is amended by striking ‘‘January 1, 

18 2014’’ and inserting ‘‘April 1, 2014’’. 

19 SEC. 1105. MEDICARE INPATIENT HOSPITAL PAYMENT AD20 JUSTMENT FOR LOW-VOLUME HOSPITALS. 

21 Section 1886(d)(12) of the Social Security Act (42 

22 U.S.C. 1395ww(d)(12)) is amended— 

23 (1) in subparagraph (B), in the matter pre24 ceding clause (i), by striking ‘‘fiscal year 2014 and 

25 subsequent fiscal years’’ and inserting ‘‘the portion of 
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1 fiscal year 2014 beginning on April 1, 2014, fiscal 

2 year 2015, and subsequent fiscal years’’; 

3 (2) in subparagraph (C)(i)— 

4 (A) by inserting ‘‘and the portion of fiscal 

5 year 2014 before’’ after ‘‘and 2013,’’ each place 

6 it appears; and 

7 (B) by inserting ‘‘or portion of fiscal year’’ 

8 after ‘‘during the fiscal year’’; and 

9 (3) in subparagraph (D)— 

10 (A) by inserting ‘‘and the portion of fiscal 

11 year 2014 before April 1, 2014,’’ after ‘‘and 

12 2013,’’; and 

13 (B) by inserting ‘‘or the portion of fiscal 

14 year’’ after ‘‘in the fiscal year’’. 

15 SEC. 1106. MEDICARE-DEPENDENT HOSPITAL (MDH) PRO16 GRAM. 

17 (a) IN GENERAL.—Section 1886(d)(5)(G) of the Social 

18 Security Act (42 U.S.C. 1395ww(d)(5)(G)) is amended— 

19 (1) in clause (i), by striking ‘‘October 1, 2013’’ 

20 and inserting ‘‘April 1, 2014’’; and 

21 (2) in clause (ii)(II), by striking ‘‘October 1, 

22 2013’’ and inserting ‘‘April 1, 2014’’. 

23 (b) CONFORMING AMENDMENTS.— 
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1 (1) EXTENSION OF TARGET AMOUNT.—Section 

2 1886(b)(3)(D) of the Social Security Act (42 U.S.C. 

3 1395ww(b)(3)(D)) is amended— 

4 (A) in the matter preceding clause (i), by 

5 striking ‘‘October 1, 2013’’ and inserting ‘‘April 

6 1, 2014’’; and 

7 (B) in clause (iv), by inserting ‘‘and the 

8 portion of fiscal year 2014 before April 1, 2014’’ 

9 after ‘‘through fiscal year 2013’’. 

10 (2) PERMITTING HOSPITALS TO DECLINE RE11 CLASSIFICATION.—Section 13501(e)(2) of the Omni12 bus Budget Reconciliation Act of 1993 (42 U.S.C. 

13 1395ww note) is amended by striking ‘‘through fiscal 

14 year 2013’’ and inserting ‘‘through the first 2 quar15 ters of fiscal year 2014’’. 

16 SEC. 1107. 1-YEAR EXTENSION OF AUTHORIZATION FOR 

17 SPECIAL NEEDS PLANS. 

18 Section 1859(f)(1) of the Social Security Act (42 

19 U.S.C. 1395w–28(f)(1)) is amended by striking ‘‘2015’’ and 

20 inserting ‘‘2016’’. 

21 SEC. 1108. 1-YEAR EXTENSION OF MEDICARE REASONABLE 

22 COST CONTRACTS. 

23 Section 1876(h)(5)(C)(ii) of the Social Security Act 

24 (42 U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter 
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1 preceding subclause (I), by striking ‘‘January 1, 2014’’ and 

2 inserting ‘‘January 1, 2015’’. 

3 SEC. 1109. EXTENSION OF EXISTING FUNDING FOR CON4 TRACT WITH CONSENSUS-BASED ENTITY. 

5 Section 1890(d) of the Social Security Act (42 U.S.C. 

6 1395aaa(d)) is amended by adding at the end the following 

7 new sentence: ‘‘Amounts transferred under the preceding 

8 sentence shall remain available until expended.’’. 

9 SEC. 1110. EXTENSION OF FUNDING OUTREACH AND AS10 SISTANCE FOR LOW-INCOME PROGRAMS. 

11 (a) ADDITIONAL FUNDING FOR STATE HEALTH INSUR12 ANCE PROGRAMS.—Subsection (a)(1)(B) of section 119 of 

13 the Medicare Improvements for Patients and Providers Act 

14 of 2008 (42 U.S.C. 1395b–3 note), as amended by section 

15 3306 of the Patient Protection and Affordable Care Act 

16 Public Law 111–148) and section 610 of the American Tax17 payer Relief Act of 2012 (Public Law 112-240), is amend18 ed— 

19 (1) in clause (ii), by striking ‘‘and’’ at the end; 

20 (2) in clause (iii), by striking the period at the 

21 end and inserting ‘‘; and’’; and 

22 (3) by inserting after clause (iii) the following 

23 new clause: 

24 ‘‘(iv) for the portion of fiscal year 2014 

25 before April 1, 2014, of $3,750,000.’’. 
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1 (b) ADDITIONAL FUNDING FOR AREA AGENCIES ON

2 AGING.—Subsection (b)(1)(B) of such section 119, as so 

3 amended, is amended— 

4 (1) in clause (ii), by striking ‘‘and’’ at the end; 

5 (2) in clause (iii), by striking the period at the 

6 end and inserting ‘‘; and’’; and 

7 (3) by inserting after clause (iii) the following 

8 new clause: 

9 ‘‘(iv) for the portion of fiscal year 2014 

10 before April 1, 2014, of $3,750,000.’’. 

11 (c) ADDITIONAL FUNDING FOR AGING AND DISABILITY

12 RESOURCE CENTERS.—Subsection (c)(1)(B) of such section 

13 119, as so amended, is amended— 

14 (1) in clause (ii), by striking ‘‘and’’ at the end; 

15 (2) in clause (iii), by striking the period at the 

16 end and inserting ‘‘; and’’; and 

17 (3) by inserting after clause (iii) the following 

18 new clause: 

19 ‘‘(iv) for the portion of fiscal year 2014 

20 before April 1, 2014, of $2,500,000.’’. 

21 (d) ADDITIONAL FUNDING FOR CONTRACT WITH THE

22 NATIONAL CENTER FOR BENEFITS AND OUTREACH EN23 ROLLMENT.—Subsection (d)(2) of such section 119, as so 

24 amended, is amended— 

25 (1) in clause (ii), by striking ‘‘and’’ at the end; 
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1 (2) in clause (iii), by striking the period at the 

2 end and inserting ‘‘; and’’; and 

3 (3) by inserting after clause (iii) the following 

4 new clause: 

5 ‘‘(iv) for the portion of fiscal year 2014 

6 before April 1, 2014, of $2,500,000.’’. 

7 TITLE II—OTHER HEALTH 

8 PROVISIONS 

9 SEC. 1201. EXTENSION OF THE QUALIFYING INDIVIDUAL 

10 (QI) PROGRAM. 

11 (a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the 

12 Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 

13 amended by striking ‘‘December 2013’’ and inserting 

14 ‘‘March 2014’’. 

15 (b) EXTENDING TOTAL AMOUNT AVAILABLE FOR AL16 LOCATION.—Section 1933(g) of the Social Security Act (42 

17 U.S.C. 1396u–3(g)) is amended— 

18 (1) in paragraph (2)— 

19 (A) in subparagraph (S), by striking ‘‘and’’ 

20 after the semicolon; 

21 (B) in subparagraph (T), by striking the 

22 period at the end and inserting ‘‘; and’’; and 

23 (C) by adding at the end the following new 

24 subparagraph: 
86 

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1 ‘‘(U) for the period that begins on January 

2 1, 2014, and ends on March 31, 2014, the total 

3 allocation amount is $200,000,000.’’. 

4 SEC. 1202. TEMPORARY EXTENSION OF TRANSITIONAL MED5 ICAL ASSISTANCE (TMA). 

6 Sections 1902(e)(1)(B) and 1925(f) of the Social Secu7 rity Act (42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are each 

8 amended by striking ‘‘December 31, 2013’’ and inserting 

9 ‘‘March 31, 2014’’. 

10 SEC. 1203. EXTENSION OF FUNDING FOR FAMILY-TO-FAMILY 

11 HEALTH INFORMATION CENTERS. 

12 Section 501(c)(1)(A) of the Social Security Act (42 

13 U.S.C. 701(c)(1)(A)) is amended— 

14 (1) in clause (ii), by striking at the end ‘‘and’’; 

15 (2) in clause (iii), by striking the period at the 

16 end and inserting ‘‘; and’’; and 

17 (3) by adding at the end the following new 

18 clause: 

19 ‘‘(iv) $2,500,000 for the portion of fis20 cal year 2014 before April 1, 2014.’’. 

21 SEC. 1204. DELAY OF REDUCTIONS TO MEDICAID DSH AL22 LOTMENTS. 

23 (a) IN GENERAL.—Section 1923(f) of the Social Secu24 rity Act (42 U.S.C. 1396r–4(f)) is amended— 

25 (1) in paragraph (7)(A)— 
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1 (A) in clause (i), by striking ‘‘2014’’ and 

2 inserting ‘‘2016’’; and 

3 (B) in clause (ii)— 

4 (i) by striking subclauses (I) and (II); 

5 (ii) by redesignating subclauses (III) 

6 through (VII) as subclauses (I) through (V), 

7 respectively; and 

8 (iii) in subclause (I) (as redesignated 

9 by clause (ii)), by striking ‘‘$600,000,000’’ 

10 and inserting ‘‘$1,200,000,000’’; and 

11 (2) in paragraph (8)— 

12 (A) by redesignating subparagraph (C) as 

13 subparagraph (D); 

14 (B) by inserting after subparagraph (B) the 

15 following new subparagraph: 

16 ‘‘(C) FISCAL YEAR 2023.—Only with respect 

17 to fiscal year 2023, the DSH allotment for a 

18 State, in lieu of the amount determined under 

19 paragraph (3) for the State for that year, shall 

20 be equal to the DSH allotment for the State for 

21 fiscal year 2022, as determined under subpara22 graph (B), increased, subject to subparagraphs 

23 (B) and (C) of paragraph (3), and paragraph 

24 (5), by the percentage change in the consumer 
88 

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1 price index for all urban consumers (all items; 

2 U.S. city average), for fiscal year 2022.’’; and 

3 (C) in subparagraph (D) (as redesignated 

4 by subparagraph (A)), by striking ‘‘fiscal year 

5 2022’’ and inserting ‘‘fiscal year 2023’’. 

6 (b) EFFECTIVE DATE.—The amendments made by sub7 section (a) shall be effective as of October 1, 2013. 

8 SEC. 1205. REALIGNMENT OF THE MEDICARE SEQUESTER 

9 FOR FISCAL YEAR 2023. 

10 Paragraph (6) (relating to implementing direct spend11 ing reductions, as redesignated by section 101(d)(2)(C), and 

12 as amended by section 101(c), of the Bipartisan Budget Act 

13 of 2013) of section 251A of the Balanced Budget and Emer14 gency Deficit Control Act of 1985 (2 U.S.C. 901a) is 

15 amended by adding at the end the following new subpara16 graph: 

17 ‘‘(C) Notwithstanding the 2 percent limit speci18 fied in subparagraph (A) for payments for the Medi19 care programs specified in section 256(d), the seques20 tration order of the President under such subpara21 graph for fiscal year 2023 shall be applied to such 

22 payments so that— 

23 ‘‘(i) with respect to the first 6 months in 

24 which such order is effective for such fiscal year, 

25 the payment reduction shall be 2.90 percent; and 
89 

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1 ‘‘(ii) with respect to the second 6 months in 

2 which such order is so effective for such fiscal 

3 year, the payment reduction shall be 1.11 per4 cent.’’. 

5 SEC. 1206. PAYMENT FOR INPATIENT SERVICES IN LONG6 TERM CARE HOSPITALS (LTCHS). 

7 (a) ESTABLISHMENT OF CRITERIA FOR APPLICATION

8 OF SITE NEUTRAL PAYMENT.— 

9 (1) IN GENERAL.—Section 1886(m) of the Social 

10 Security Act (42 U.S.C. 1395ww(m)) is amended by 

11 adding at the end the following: 

12 ‘‘(6) APPLICATION OF SITE NEUTRAL IPPS PAY13 MENT RATE IN CERTAIN CASES.— 

14 ‘‘(A) GENERAL APPLICATION OF SITE NEU15 TRAL IPPS PAYMENT AMOUNT FOR DISCHARGES

16 FAILING TO MEET APPLICABLE CRITERIA.— 

17 ‘‘(i) IN GENERAL.—For a discharge in 

18 cost reporting periods beginning on or after 

19 October 1, 2015, except as provided in 

20 clause (ii) and subparagraph (C), payment 

21 under this title to a long-term care hospital 

22 for inpatient hospital services shall be made 

23 at the applicable site neutral payment rate 

24 (as defined in subparagraph (B)). 
90 

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1 ‘‘(ii) EXCEPTION FOR CERTAIN DIS2 CHARGES MEETING CRITERIA.—Clause (i) 

3 shall not apply (and payment shall be made 

4 to a long-term care hospital without regard 

5 to this paragraph) for a discharge if— 

6 ‘‘(I) the discharge meets the ICU 

7 criterion under clause (iii) or the ven8 tilator criterion under clause (iv); and 

9 ‘‘(II) the discharge does not have 

10 a principal diagnosis relating to a 

11 psychiatric diagnosis or to rehabilita12 tion. 

13 ‘‘(iii) INTENSIVE CARE UNIT (ICU) CRI14 TERION.— 

15 ‘‘(I) IN GENERAL.—The criterion 

16 specified in this clause (in this para17 graph referred to as the ‘ICU cri18 terion’), for a discharge from a long19 term care hospital, is that the stay in 

20 the long-term care hospital ending with 

21 such discharge was immediately pre22 ceded by a discharge from a stay in a 

23 subsection (d) hospital that included at 

24 least 3 days in an intensive care unit 

25 (ICU), as determined by the Secretary. 
91 

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1 ‘‘(II) DETERMINING ICU DAYS.— 

2 In determining intensive care unit 

3 days under subclause (I), the Secretary 

4 shall use data from revenue center 

5 codes 020x or 021x (or such successor 

6 codes as the Secretary may establish). 

7 ‘‘(iv) VENTILATOR CRITERION.—The 

8 criterion specified in this clause (in this 

9 paragraph referred to as the ‘ventilator cri10 terion’), for a discharge from a long-term 

11 care hospital, is that— 

12 ‘‘(I) the stay in the long-term care 

13 hospital ending with such discharge 

14 was immediately preceded by a dis15 charge from a stay in a subsection (d) 

16 hospital; and 

17 ‘‘(II) the individual discharged 

18 was assigned to a Medicare-Severity19 Long-Term-Care-Diagnosis-Related20 Group (MS–LTC–DRG) based on the 

21 receipt of ventilator services of at least 

22 96 hours. 

23 ‘‘(B) APPLICABLE SITE NEUTRAL PAYMENT

24 RATE DEFINED.— 
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1 ‘‘(i) IN GENERAL.—In this paragraph, 

2 the term ‘applicable site neutral payment 

3 rate’ means— 

4 ‘‘(I) for discharges in cost report5 ing periods beginning during fiscal 

6 year 2016 or fiscal year 2017, the 

7 blended payment rate specified in 

8 clause (iii); and 

9 ‘‘(II) for discharges in cost report10 ing periods beginning during fiscal 

11 year 2018 or a subsequent fiscal year, 

12 the site neutral payment rate (as de13 fined in clause (ii)). 

14 ‘‘(ii) SITE NEUTRAL PAYMENT RATE

15 DEFINED.—In this paragraph, the term ‘site 

16 neutral payment rate’ means the lower of— 

17 ‘‘(I) the IPPS comparable per 

18 diem amount determined under para19 graph (d)(4) of section 412.529 of title 

20 42, Code of Federal Regulations, in21 cluding any applicable outlier pay22 ments under section 412.525 of such 

23 title; or 

24 ‘‘(II) 100 percent of the estimated 

25 cost for the services involved. 
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1 ‘‘(iii) BLENDED PAYMENT RATE.—The 

2 blended payment rate specified in this 

3 clause, for a long-term care hospital for in4 patient hospital services for a discharge, is 

5 comprised of— 

6 ‘‘(I) half of the site neutral pay7 ment rate (as defined in clause (ii)) for 

8 the discharge; and 

9 ‘‘(II) half of the payment rate 

10 that would otherwise be applicable to 

11 such discharge without regard to this 

12 paragraph, as determined by the Sec13 retary. 

14 ‘‘(C) LIMITING PAYMENT FOR ALL HOSPITAL

15 DISCHARGES TO SITE NEUTRAL PAYMENT RATE

16 FOR HOSPITALS FAILING TO MEET APPLICABLE

17 LTCH DISCHARGE THRESHOLDS.— 

18 ‘‘(i) NOTICE OF LTCH DISCHARGE PAY19 MENT PERCENTAGE.—For cost reporting pe20 riods beginning during or after fiscal year 

21 2016, the Secretary shall inform each long22 term care hospital of its LTCH discharge 

23 payment percentage (as defined in clause 

24 (iv)) for such period. 
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1 ‘‘(ii) LIMITATION.—For cost reporting 

2 periods beginning during or after fiscal 

3 year 2020, if the Secretary determines for a 

4 long-term care hospital that its LTCH dis5 charge payment percentage for the period is 

6 not at least 50 percent— 

7 ‘‘(I) the Secretary shall inform the 

8 hospital of such fact; and 

9 ‘‘(II) subject to clause (iii), for all 

10 discharges in the hospital in each suc11 ceeding cost reporting period, the pay12 ment amount under this subsection 

13 shall be the payment amount that 

14 would apply under subsection (d) for 

15 the discharge if the hospital were a 

16 subsection (d) hospital. 

17 ‘‘(iii) PROCESS FOR REINSTATE18 MENT.—The Secretary shall establish a 

19 process whereby a long-term care hospital 

20 may seek to and have the provisions of sub21 clause (II) of clause (ii) discontinued with 

22 respect to that hospital. 

23 ‘‘(iv) LTCH DISCHARGE PAYMENT

24 PERCENTAGE.—In this subparagraph, the 

25 term ‘LTCH discharge payment percentage’ 
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1 means, with respect to a long-term care hos2 pital for a cost reporting period beginning 

3 during or after fiscal year 2020, the ratio 

4 (expressed as a percentage) of— 

5 ‘‘(I) the number of discharges for 

6 such hospital and period for which 

7 payment is not made at the site neu8 tral payment rate, to 

9 ‘‘(II) the total number of dis10 charges for such hospital and period. 

11 ‘‘(D) INCLUSION OF SUBSECTION (D) PUER12 TO RICO HOSPITALS.—In this paragraph, any 

13 reference in this paragraph to a subsection (d) 

14 hospital shall be deemed to include a reference to 

15 a subsection (d) Puerto Rico hospital.’’. 

16 (2) MEDPAC STUDY AND REPORT ON IMPACT OF

17 CHANGES.— 

18 (A) STUDY.—The Medicare Payment Assess19 ment Commission shall examine the effect of ap20 plying section 1886(m)(6) of the Social Security 

21 Act, as added by the amendment made by para22 graph (1), on— 

23 (i) the quality of patient care in long24 term care hospitals; 
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1 (ii) the use of hospice care and post2 acute care settings; 

3 (iii) different types of long-term care 

4 hospitals; and 

5 (iv) the growth in Medicare spending 

6 for services in such hospitals. 

7 (B) REPORT.—Not later than June 30, 

8 2019, the Commission shall submit to Congress a 

9 report on such study. The Commission shall in10 clude in such report such recommendations for 

11 changes in the application of such section as the 

12 Commission deems appropriate as well as the 

13 impact of the application of such section on the 

14 need to continue applying the 25 percent rule de15 scribed under sections 412.534 and 412.536 of 

16 title 42, Code of Federal Regulations. 

17 (3) CALCULATION OF LENGTH OF STAY EXCLUD18 ING CASES PAID ON A SITE NEUTRAL BASIS.— 

19 (A) IN GENERAL.—For discharges occurring 

20 in cost reporting periods beginning on or after 

21 October 1, 2015, subject to subparagraph (B), in 

22 calculating the length of stay requirement appli23 cable to a long-term care hospital or satellite fa24 cility under section 1886(d)(1)(B)(iv)(I) of the 

25 Social Security Act (42 U.S.C. 
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1 1395ww(d)(1)(B)(iv)(I)) and section 

2 1861(ccc)(2) of such Act (42 U.S.C. 

3 1395x(ccc)(2)), the Secretary of Health and 

4 Human Services shall exclude the following: 

5 (i) SITE NEUTRAL PAYMENT.—Any pa6 tient for whom payment is made at the site 

7 neutral payment rate (as defined in section 

8 1886(m)(6)(B)(ii)) of such Act, as added by 

9 paragraph (1)). 

10 (ii) MEDICARE ADVANTAGE.—Any pa11 tient for whom payment is made under a 

12 Medicare Advantage plan under part C of 

13 title XVIII of such Act. 

14 (B) LIMITATION ON CONVERTING SUB15 SECTION (D) HOSPITALS.—Subparagraph (A) 

16 shall not apply to a hospital that is classified as 

17 of December 10, 2013, as a subsection (d) hos18 pital (as defined in section 1886(d)(1)(B) of the 

19 Social Security Act, 42 U.S.C. 

20 1395ww(d)(1)(B)) for purposes of determining 

21 whether the requirements of section 

22 1886(d)(1)(B)(iv)(I) or 1861(ccc)(2) of such Act 

23 (42 U.S.C. 1395ww(d)(1)(B)(iv)(I), 

24 1395x(ccc)(2)) are met. 
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1 (b) EXTENSION OF CERTAIN LTCH PAYMENT RULES

2 AND MORATORIUM ON THE ESTABLISHMENT OF CERTAIN

3 HOSPITALS AND FACILITIES.— 

4 (1) EXTENSION OF CERTAIN PAYMENT RULES.— 

5 (A) PAYMENT FOR HOSPITALS-WITHIN-HOS6 PITALS.—Paragraph (2)(C) of section 114(c) of 

7 the Medicare, Medicaid, and SCHIP Extension 

8 Act of 2007 (42 U.S.C. 1395ww note), as amend9 ed by sections 3106(a) and 10312(a) of Public 

10 Law 111–148, is amended by striking ‘‘5-year 

11 period’’ and inserting ‘‘9-year period’’. 

12 (B) 25 PERCENT PATIENT THRESHOLD PAY13 MENT ADJUSTMENT; MAKING THE GRAND14 FATHERED EXEMPTION FOR LONG-TERM CARE

15 HOSPITALS PERMANENT.—Section 114(c)(1) of 

16 the Medicare, Medicaid, and SCHIP Extension 

17 Act of 2007 (42 U.S.C. 1395ww note), as amend18 ed by sections 3106(a) and 10312(a) of Public 

19 Law 111–148, is amended— 

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘for a 5-year pe22 riod’’; and 

23 (ii) in subparagraph (A), by inserting 

24 ‘‘for a 9-year period,’’ before ‘‘section 

25 412.536’’. 
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1 (C) REPORT ASSESSING CONTINUED SUS2 PENSION OF 25 PERCENT RULE.—Not later than 

3 1 year before the end of the 9-year period re4 ferred to in section 114(c)(1) of the Medicare, 

5 Medicaid, and SCHIP Extension Act of 2007 

6 (42 U.S.C. 1395ww note), as amended by sub7 paragraph (B), the Secretary of Health and 

8 Human Services shall submit to Congress a re9 port on the need for any further extensions (or 

10 modifications of the extensions) of the 25 percent 

11 rule described in sections 412.534 and 412.536 of 

12 title 42, Code of Federal Regulations, particu13 larly taking into account the application of sec14 tion 1886(m)(6) of the Social Security Act, as 

15 added by subsection (a)(1). 

16 (2) EXTENSION OF MORATORIUM ON ESTABLISH17 MENT OF AND INCREASE IN BEDS FOR LTCHS.—Sec18 tion 114(d) of the Medicare, Medicaid, and SCHIP 

19 Extension Act of 2007 (42 U.S.C. 1395ww note), as 

20 amended by sections 3106(b) and 10312(b) of Public 

21 Law 111–148, is amended— 

22 (A) in paragraph (1), in the matter pre23 ceding subparagraph (A), by inserting after ‘‘5- 

24 year period’’ the following: ‘‘(and for the period 
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1 beginning January 1, 2015, and ending Sep2 tember 30, 2017)’’; and 

3 (B) by adding at the end the following new 

4 paragraph: 

5 ‘‘(6) LIMITATION ON APPLICATION OF EXCEP6 TIONS.—Paragraphs (2) and (3) shall not apply dur7 ing the period beginning January 1, 2015, and end8 ing September 30, 2017.’’. 

9 (c) ADDITIONAL QUALITY MEASURE.—Section 

10 1886(m)(5)(D) of the Social Security Act (42 U.S.C. 

11 1395ww(m)(5)(D)) is amended by adding at the end the 

12 following new clause: 

13 ‘‘(iv) ADDITIONAL QUALITY MEAS14 URES.—Not later than October 1, 2015, the 

15 Secretary shall establish a functional status 

16 quality measure for change in mobility 

17 among inpatients requiring ventilator sup18 port.’’. 

19 (d) REVIEW OF TREATMENT OF CERTAIN LTCHS.— 

20 (1) EVALUATION.—As part of the annual rule21 making for fiscal year 2015 or fiscal year 2016 to 

22 carry out the payment rates under subsection (d) of 

23 section 1886 of the Social Security Act (42 U.S.C. 

24 1395ww), the Secretary shall evaluate both the pay25 ment rates and regulations governing hospitals which 
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1 are classified under subclause (II) of subsection 

2 (d)(1)(B)(iv) of such section. 

3 (2) ADJUSTMENT AUTHORITY.—Based upon such 

4 evaluation, the Secretary may adjust payment rates 

5 under subsection (b)(3) of section 1886 of the Social 

6 Security Act (42 U.S.C. 1395ww) for a hospital so 

7 classified (such as payment based upon the TEFRA8 payment model) and may adjust the regulations gov9 erning such hospitals, including applying the regula10 tions governing hospitals which are classified under 

11 clause (I) of subsection (d)(1)(B) of such section. 

Attest: 

Clerk. 
113TH CONGRESS 

1ST SESSION H. J. RES. 59 

HOUSE AMENDMENT TO 

SENATE AMENDMENT