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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 22 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                 H. R. 22

 To make certain changes to improve the administration of the medicare 
   program, to reform customs overtime pay practices, to prevent the 
payment of Federal benefits to deceased individuals, to require reports 
 on employers with underfunded pension plans, to provide for increased 
        taxpayer procedural protections, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

 Mr. Pickle (for himself, Mr. Rostenkowski, Mr. Stark, Mr. Rangel, Mr. 
Jacobs, Mr. Ford of Tennessee, Mr. Thomas of California, Mr. Sundquist, 
and Mr. Shaw) introduced the following bill; which was referred jointly 
  to the Committees on Ways and Means, Energy and Commerce, and Post 
                        Office and Civil Service

                           September 14, 1993

Additional sponsors: Ms. Eddie Bernice Johnson of Texas, Mr. Swift, Mr. 
  Barlow, Mr. Cramer, Mr. Richardson, Mrs. Lloyd, Mr. Gordon, and Mr. 
                               Strickland

_______________________________________________________________________

                                 A BILL

 
 To make certain changes to improve the administration of the medicare 
   program, to reform customs overtime pay practices, to prevent the 
payment of Federal benefits to deceased individuals, to require reports 
 on employers with underfunded pension plans, to provide for increased 
        taxpayer procedural protections, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Program Improvement Act of 
1993''.

          TITLE I--PROVISIONS RELATING TO THE MEDICARE PROGRAM

SEC. 1000. REFERENCES IN TITLE.

    (a) Amendments to Social Security Act.--Except as otherwise 
specifically provided, whenever in this title an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (b) References to OBRA.--In this Act, the terms ``OBRA-1989'' and 
``OBRA-1990'' refer to the Omnibus Budget Reconciliation Act of 1989 
(Public Law 101-239) and the Omnibus Budget Reconciliation Act of 1990 
(Public Law 101-508), respectively.

                 Subtitle A--Durable Medical Equipment

SEC. 1001. CERTIFICATION OF SUPPLIERS.

    (a) Requirements.--
            (1) In general.--Section 1834 (42 U.S.C. 1395m) is amended 
        by adding at the end the following new subsection:
    ``(i) Requirements for Suppliers of Medical Equipment and 
Supplies.--
            ``(1) Issuance and renewal of supplier number.--
                    ``(A) Payment.--Except as provided in subparagraph 
                (C), no payment may be made under this part after 
                October 1, 1993, for items furnished by a supplier of 
                medical equipment and supplies unless such supplier 
                obtains (and renews at such intervals as the Secretary 
                may require) a supplier number.
                    ``(B) Standards for possessing a supplier number.--
                A supplier may not obtain a supplier number unless--
                            ``(i) for medical equipment and supplies 
                        furnished on or after October 1, 1993, and on 
                        or before December 31, 1994, the supplier meets 
                        standards prescribed by the Secretary; and
                            ``(ii) for medical equipment and supplies 
                        furnished on or after January 1, 1995, the 
                        supplier meets revised standards prescribed by 
                        the Secretary (in consultation with 
                        representatives of suppliers of medical 
                        equipment and supplies, carriers, and 
                        consumers) that shall include requirements that 
                        the supplier--
                                    ``(I) comply with all applicable 
                                State and Federal licensure and 
                                regulatory requirements;
                                    ``(II) maintain a physical facility 
                                on an appropriate site;
                                    ``(III) have proof of appropriate 
                                liability insurance; and
                                    ``(IV) meet such other requirements 
                                as the Secretary may specify.
                    ``(C) Exception for items furnished as incident to 
                a physician's service.--Subparagraph (A) shall not 
                apply with respect to medical equipment and supplies 
                furnished as an incident to a physician's service.
                    ``(D) Prohibition against multiple supplier 
                numbers.--The Secretary may not issue more than one 
                supplier number to any supplier of medical equipment 
                and supplies unless the issuance of more than one 
                number is appropriate to identify subsidiary or 
                regional entities under the supplier's ownership or 
                control.
                    ``(E) Prohibition against delegation of supplier 
                determinations.--The Secretary may not delegate (other 
                than by contract under section 1842) the responsibility 
                to determine whether suppliers meet the standards 
                necessary to obtain a supplier number.
            ``(2) Certificates of medical necessity.--
                    ``(A) Standardized certificates.--Not later than 
                October 1, 1993, the Secretary shall, in consultation 
                with carriers under this part, develop one or more 
                standardized certificates of medical necessity (as 
                defined in subparagraph (C)) for medical equipment and 
                supplies for which the Secretary determines that such a 
                certificate is necessary.
                    ``(B) Prohibition against distribution by suppliers 
                of certificates of medical necessity.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a supplier of medical equipment 
                        and supplies may not distribute to physicians 
                        or to individuals entitled to benefits under 
                        this part for commercial purposes any completed 
                        or partially completed certificates of medical 
                        necessity on or after October 1, 1993.
                            ``(ii) Exception for certain billing 
                        information.--Clause (i) shall not apply with 
                        respect to a certificate of medical necessity 
                        for any item that is not contained on the list 
                        of potentially overused items developed by the 
                        Secretary under subsection (a)(15)(A) to the 
                        extent that such certificate contains only 
                        information completed by the supplier of 
                        medical equipment and supplies identifying such 
                        supplier and the beneficiary to whom such 
                        medical equipment and supplies are furnished, a 
                        description of such medical equipment and 
                        supplies, any product code identifying such 
                        medical equipment and supplies, and any other 
                        administrative information (other than 
                        information relating to the beneficiary's 
                        medical condition) identified by the Secretary. 
                        In the event a supplier provides a certificate 
                        of medical necessity containing information 
                        permitted under this clause, such certificate 
                        shall also contain the fee schedule amount and 
                        the supplier's charge for the medical equipment 
                        or supplies being furnished prior to 
                        distribution of such certificate to the 
                        physician.
                            ``(iii) Penalty.--Any supplier of medical 
                        equipment and supplies who knowingly and 
                        willfully distributes a certificate of medical 
                        necessity in violation of clause (i) is subject 
                        to a civil money penalty in an amount not to 
                        exceed $1,000 for each such certificate of 
                        medical necessity so distributed. The 
                        provisions of section 1128A (other than 
                        subsections (a) and (b)) shall apply to civil 
                        money penalties under this subparagraph in the 
                        same manner as they apply to a penalty or 
                        proceeding under section 1128A(a).
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `certificate of medical necessity' means a 
                form or other document containing information required 
                by the Secretary to be submitted to show that a covered 
                item is reasonable and necessary for the diagnosis or 
                treatment of illness or injury or to improve the 
                functioning of a malformed body member.
            ``(3) Coverage and review criteria.--
                    ``(A) Development and establishment.--Not later 
                than January 1, 1995, the Secretary, in consultation 
                with representatives of suppliers of medical equipment 
                and supplies, individuals enrolled under this part, and 
                appropriate medical specialty societies, shall develop 
                and establish uniform national coverage and utilization 
                review criteria for 200 items of medical equipment and 
                supplies selected in accordance with the standards 
                described in subparagraph (B). The Secretary shall 
                publish the criteria as part of the instructions 
                provided to fiscal intermediaries and carriers under 
                this part and no further publication, including 
                publication in the Federal Register, shall be required.
                    ``(B) Standards for selecting items subject to 
                criteria.--The Secretary may select an item for 
                coverage under the criteria developed and established 
                under subparagraph (A) if the Secretary finds that--
                            ``(i) the item is frequently purchased or 
                        rented by beneficiaries;
                            ``(ii) the item is frequently subject to a 
                        determination that such item is not medically 
                        necessary; or
                            ``(iii) the coverage or utilization 
                        criteria applied to the item (as of the date of 
                        the enactment of this subsection) is not 
                        consistent among carriers.
                    ``(C) Annual review and expansion of items subject 
                to criteria.--The Secretary shall annually review the 
                coverage and utilization of items of medical equipment 
                and supplies to determine whether items not included 
                among the items selected under subparagraph (A) should 
                be made subject to uniform national coverage and 
                utilization review criteria, and, if appropriate, shall 
                develop and apply such criteria to such additional 
                items.
            ``(4) Definition.--The term `medical equipment and 
        supplies'' means--
                    ``(A) durable medical equipment (as defined in 
                section 1861(n));
                    ``(B) prosthetic devices (as described in section 
                1861(s)(8));
                    ``(C) orthotics and prosthetics (as described in 
                section 1861(s)(9));
                    ``(D) surgical dressings (as described in section 
                1861(s)(5));
                    ``(E) such other items as the Secretary may 
                determine; and
                    ``(F) for purposes of paragraphs (1) and (3)--
                            ``(i) home dialysis supplies and equipment 
                        (as described in section 1861(s)(2)(F)), and
                            ``(ii) immunosuppressive drugs (as 
                        described in section 1861(s)(2)(J)).''.
    (2) Conforming amendment.--Effective October 1, 1993, paragraph 
(16) of section 1834(a) (42 U.S.C. 1395m(a)) is repealed.
    (b) Report on effect of uniform criteria on utilization of items.--
Not later than July 1, 1995, the Secretary shall submit a report to the 
Committee on Ways and Means and the Committee on Energy and Commerce of 
the House of Representatives and the Committee on Finance of the Senate 
analyzing the impact of the uniform criteria established under section 
1834(i)(3)(A) of the Social Security Act (as added by subsection (a)) 
on the utilization of items of medical equipment and supplies by 
individuals enrolled under part B of the medicare program.
    (c) Use of Covered Items by Disabled Beneficiaries.--
            (1) In general.--The Secretary of Health and Human 
        Services, in consultation with representatives of suppliers of 
        durable medical equipment under part B of the medicare program 
        and individuals entitled to benefits under such program on the 
        basis of disability, shall conduct a study of the effects of 
        the methodology for determining payments for items of such 
        equipment under such part on the ability of such individuals to 
        obtain items of such equipment, including customized items.
            (2) Report.--Not later than May 1, 1994, the Secretary 
        shall submit a report to Congress on the study conducted under 
        paragraph (1), and shall include in the report such 
        recommendations as the Secretary considers appropriate to 
        assure that disabled medicare beneficiaries have access to 
        items of durable medical equipment.
    (d) Criteria for Treatment of Items as Prosthetics Devices or 
Orthotics and Prosthetics.--Not later than July 1, 1994, the Secretary 
of Health and Human Services shall submit a report to the Committees on 
Ways and Means and Energy and Commerce of the House of Representatives 
and the Committee on Finance of the Senate describing prosthetic 
devices or orthotics and prosthetics covered under part B of the 
medicare program that do not require individualized or custom fitting 
and adjustment to be used by a patient. Such report shall include 
recommendations for an appropriate methodology for determining the 
amount of payment for such items under such program.

SEC. 1002. PROHIBITION AGAINST CARRIER FORUM SHOPPING.

    (a) In General.--Section 1834(a)(12) (42 U.S.C. 1395m(a)(12)) is 
amended to read as follows:
            ``(12) Use of carriers to process claims.--
                    ``(A) Designation of regional carriers.--The 
                Secretary may designate, by regulation under section 
                1842, one carrier for one or more entire regions to 
                process all claims within the region for covered items 
                under this section.
                    ``(B) Prohibition against carrier shopping.--(i) No 
                supplier of a covered item may present or cause to be 
                presented a claim for payment under this part unless 
                such claim is presented to the appropriate regional 
                carrier (as designated by the Secretary).
                    ``(ii) For purposes of clause (i), the term 
                `appropriate regional carrier' means the carrier having 
                jurisdiction over the geographic area that includes the 
                permanent residence of the patient to whom the item is 
                furnished.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to items furnished on or after October 1, 1993.
    (c) Clarification of Authority to Designate Carriers for Other 
Items and Services.--Nothing in this subsection or the amendment made 
by this subsection may be construed to restrict the authority of the 
Secretary of Health and Human Services to designate regional carriers 
or modify claims jurisdiction rules with respect to items or services 
under part B of the medicare program that are not covered items under 
section 1834(a) of the Social Security Act or prosthetic devices or 
orthotics and prosthetics under section 1834(h) of such Act.

SEC. 1003. RESTRICTIONS ON CERTAIN MARKETING AND SALES ACTIVITIES.

    (a) Prohibiting Unsolicited Telephone Contacts From Suppliers of 
Durable Medical Equipment to Medicare Beneficiaries.--
            (1) In general.--Section 1834(a) (42 U.S.C. 1395m(a)) is 
        amended by adding at the end the following new paragraph:
            ``(17) Prohibition against unsolicited telephone contacts 
        by suppliers.--
                    ``(A) In general.--A supplier of a covered item 
                under this subsection may not contact an individual 
                enrolled under this part by telephone regarding the 
                furnishing of a covered item to the individual (other 
                than a covered item the supplier has already furnished 
                to the individual) unless--
                            ``(i) the individual gives permission to 
                        the supplier to make contact by telephone for 
                        such purpose; or
                            ``(ii) the supplier has furnished a covered 
                        item under this subsection to the individual 
                        during the 15-month period preceding the date 
                        on which the supplier contacts the individual 
                        for such purpose.
                    ``(B) Prohibiting payment for items furnished 
                subsequent to unsolicited contacts.--If a supplier 
                knowingly contacts an individual in violation of 
                subparagraph (A), no payment may be made under this 
                part for any item subsequently furnished to the 
                individual by the supplier.
                    ``(C) Exclusion from program for suppliers engaging 
                in pattern of unsolicited contacts.--If a supplier 
                knowingly contacts individuals in violation of 
                subparagraph (A) to such an extent that the supplier's 
                conduct establishes a pattern of contacts in violation 
                of such subparagraph, the Secretary shall exclude the 
                supplier from participation in the programs under this 
                Act, in accordance with the procedures set forth in 
                subsections (c), (f), and (g) of section 1128.''.
            (2) Requiring refund of amounts collected for disallowed 
        items.--Section 1834(a) (42 U.S.C. 1395m(a)), as amended by 
        paragraph (1), is amended by adding at the end the following 
        new paragraph:
            ``(18) Refund of amounts collected for certain disallowed 
        items.--
                    ``(A) In general.--If a nonparticipating supplier 
                furnishes to an individual enrolled under this part a 
                covered item for which no payment may be made under 
                this part by reason of paragraph (17)(B), the supplier 
                shall refund on a timely basis to the patient (and 
                shall be liable to the patient for) any amounts 
                collected from the patient for the item, unless--
                            ``(i) the supplier establishes that the 
                        supplier did not know and could not reasonably 
                        have been expected to know that payment may not 
                        be made for the item by reason of paragraph 
                        (17)(B), or
                            ``(ii) before the item was furnished, the 
                        patient was informed that payment under this 
                        part may not be made for that item and the 
                        patient has agreed to pay for that item.
                    ``(B) Sanctions.--If a supplier knowingly and 
                willfully fails to make refunds in violation of 
                subparagraph (A), the Secretary may apply sanctions 
                against the supplier in accordance with section 
                1842(j)(2).
                    ``(C) Notice.--Each carrier with a contract in 
                effect under this part with respect to suppliers of 
                covered items shall send any notice of denial of 
                payment for covered items by reason of paragraph 
                (17)(B) and for which payment is not requested on an 
                assignment-related basis to the supplier and the 
                patient involved.
                    ``(D) Timely basis defined.--A refund under 
                subparagraph (A) is considered to be on a timely basis 
                only if--
                            ``(i) in the case of a supplier who does 
                        not request reconsideration or seek appeal on a 
                        timely basis, the refund is made within 30 days 
                        after the date the supplier receives a denial 
                        notice under subparagraph (C), or
                            ``(ii) in the case in which such a 
                        reconsideration or appeal is taken, the refund 
                        is made within 15 days after the date the 
                        supplier receives notice of an adverse 
                        determination on reconsideration or appeal.''.
    (b) Conforming Amendment.--Section 1834(h)(3) (42 U.S.C. 
1395m(h)(3)) is amended by striking ``Paragraph (12)'' and inserting 
``Paragraphs (12) and (17)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to items furnished after the expiration of the 60-day 
period that begins on the date of the enactment of this Act.

SEC. 1004. BENEFICIARY LIABILITY FOR NONCOVERED SERVICES.

    (a) In General.--Section 1879 (42 U.S.C. 1395pp) is amended by 
adding at the end the following new subsection:
    ``(h) If a supplier of medical equipment and supplies (as defined 
in section 1834(i)(4))--
            ``(1) furnishes an item or service to a beneficiary for 
        which no payment may be made by reason of section 1834(i)(1);
            ``(2) furnishes an item or service to a beneficiary for 
        which payment is denied in advance under section 1834(a)(15); 
        or
            ``(3) furnishes an item or service to a beneficiary for 
        which payment is denied under section 1862(a)(1);
any expenses incurred for items and services furnished to an individual 
by such a supplier on an unassigned basis shall be the responsibility 
of such supplier. The individual shall have no financial responsibility 
for such expenses and the supplier shall refund on a timely basis to 
the individual (and shall be liable to the individual for) any amounts 
collected from the individual for such items or services. The 
provisions of section 1834(a)(18) shall apply to refunds required under 
the previous sentence in the same manner as such provisions apply to 
refunds under such section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to items or services furnished on or after October 1, 1993.

SEC. 1005. ADJUSTMENTS FOR INHERENT REASONABLENESS.

    (a) Adjustments Made to Final Payment Amounts.--
            (1) In general.--Section 1834(a)(10)(B) (42 U.S.C. 
        1395m(a)(10)(B)) is amended by adding at the end the following: 
        ``In applying such provisions to payments for an item under 
        this subsection, the Secretary shall make adjustments to the 
        payment basis for the item described in paragraph (1)(B) if the 
        Secretary determines (in accordance with such provisions and on 
        the basis of prices and costs applicable at the time the item 
        is furnished) that such payment basis is not inherently 
        reasonable.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.
    (b) Adjustment Required for Certain Items.--
            (1) In general.--In accordance with section 1834(a)(10)(B) 
        of the Social Security Act (as amended by subsection (a)), the 
        Secretary of Health and Human Services shall determine whether 
        the payment amounts for the items described in paragraph (2) 
        are not inherently reasonable, and shall adjust such amounts in 
        accordance with such section if the amounts are not inherently 
        reasonable.
            (2) Items described.--The items referred to in paragraph 
        (1) are decubitus care equipment, transcutaneous electrical 
        nerve stimulators, and any other items considered appropriate 
        by the Secretary.

SEC. 1006. PAYMENT FOR OSTOMY SUPPLIES, TRACHEOSTOMY SUPPLIES, 
              UROLOGICALS, AND SURGICAL DRESSINGS.

    (a) Ostomy Supplies, Tracheostomy Supplies, and Urologicals.--
            (1) In general.--Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)) 
        is amended by adding at the end the following new subparagraph:
                    ``(E) Exception for certain items.--Payment for 
                ostomy supplies, tracheostomy supplies, and urologicals 
                shall be made in accordance with subparagraphs (B) and 
                (C) of section 1834(a)(2).''.
            (2) Conforming amendment.--Section 1834(h)(1)(B) (42 U.S.C. 
        1395m(h)(1)(B)) is amended by striking ``subparagraph (C),'' 
        and inserting ``subparagraphs (C) and (E),''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to items furnished on or after January 1, 1994.
    (b) Surgical Dressings.--
            (1) In general.--Section 1834 (42 U.S.C. 1395m), as amended 
        by section 1001(a), is amended by adding at the end the 
        following new subsection:
    ``(j) Payment for Surgical Dressings.--
            ``(1) In general.--Payment under this subsection for 
        surgical dressings (described in section 1861(s)(5)) shall be 
        made in a lump sum amount for the purchase of the item in an 
        amount equal to 80 percent of the lesser of--
                    ``(A) the actual charge for the item; or
                    ``(B) a payment amount determined in accordance 
                with the methodology described in subparagraphs (B) and 
                (C) of subsection (a)(2) (except that in applying such 
                methodology, the national limited payment amount 
                referred to in such subparagraphs shall be initially 
                computed based on local payment amounts using average 
                reasonable charges for the 12-month period ending 
                December 31, 1992, increased by the covered item 
                updates described in such subsection for 1993 and 1994)
            ``(2) Exceptions.--Paragraph (1) shall not apply to 
        surgical dressings that are--
                    ``(A) furnished as an incident to a physician's 
                professional service; or
                    ``(B) furnished by a home health agency.''.
            (2) Conforming amendment.--Section 1833(a)(1) (42 U.S.C. 
        1395l(a)(1)) is amended--
                    (A) by striking ``and'' before ``(N)'';
                    (B) with respect to the matter inserted by section 
                4155(b)(2)(B) of OBRA-1990--
                            (i) by striking ``(M)'' and inserting ``, 
                        and (O)'', and
                            (ii) by transferring and inserting it (as 
                        amended) immediately before the semicolon at 
                        the end;
                    (C) by striking ``and'' before ``(O)''; and
                    (D) by inserting before the semicolon at the end 
                the following: ``, and (P) with respect to surgical 
                dressings, the amounts paid shall be the amounts 
                determined under section 1834(j)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to items furnished on or after January 1, 1994.

SEC. 1007. PAYMENTS FOR TENS DEVICES.

    (a) In General.--Section 1834(a)(1)(D) (42 U.S.C. 1395m(a)(1)(D)) 
is amended by striking ``15 percent'' the second place it appears and 
inserting ``45 percent''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to items furnished on or after January 1, 1994.

SEC. 1008. MISCELLANEOUS AND TECHNICAL CORRECTIONS.

    (a) Updates to Payment Amounts.--Subparagraph (A) of section 
1834(a)(14) (42 U.S.C. 1395m(a)(14)) is amended to read as follows:
                    ``(A) for 1991 and 1992, the percentage increase in 
                the consumer price index for all urban consumers (U.S. 
                city average) for the 12-month period ending with June 
                of the previous year reduced by 1 percentage point; 
                and''.
    (b) Treatment of Potentially Overused Items and Advanced 
Determinations of Coverage.--(1) Effective on the date of the enactment 
of this Act, section 1834(a)(15) (42 U.S.C. 1395m(a)(15)) is amended to 
read as follows:
            ``(15) Special treatment for potentially overused items.--
                    ``(A) Development of list of items by secretary.--
                The Secretary shall develop and periodically update a 
                list of items for which payment may be made under this 
                subsection that are potentially overused, and shall 
                include in such list seat-lift mechanisms, 
                transcutaneous electrical nerve stimulators, motorized 
                scooters, decubitus care mattresses, and any such other 
                item determined by the Secretary to be potentially 
                overused on the basis of any of the following 
                criteria--
                            ``(i) the item is marketed directly to 
                        potential patients;
                            ``(ii) the item is marketed with an offer 
                        to potential patients to waive the costs of 
                        coinsurance associated with the item or is 
                        marketed as being available at no cost to 
                        policyholders of a medicare supplemental policy 
                        (as defined in section 1882(g)(1));
                            ``(iii) the item has been subject to a 
                        consistent pattern of overutilization; or
                            ``(iv) a high proportion of claims for 
                        payment for such item under this part may not 
                        be made because of the application of section 
                        1862(a)(1).
                    ``(B) Items subject to special carrier scrutiny.--
                Payment may not be made under this part for any item 
                contained in the list developed by the Secretary under 
                subparagraph (A) unless the carrier has subjected the 
                claim for payment for the item to special scrutiny or 
                has followed the procedures described in paragraph 
                (11)(C) with respect to the item.''.
    (2) Effective January 1, 1994, section 1834(a)(11) (42 U.S.C. 
1395m(a)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Carrier determinations for certain items in 
                advance.--A carrier shall determine in advance whether 
                payment for an item may not be made under this 
                subsection because of the application of section 
                1862(a)(1) if--
                            ``(i) the item is a customized item (other 
                        than inexpensive items specified by the 
                        Secretary); or
                            ``(ii) the item is a specified covered item 
                        under subparagraph (B).''.
    (3) Effective for standards applied for contract years beginning 
after the date of the enactment of this Act, section 1842(c) (42 U.S.C. 
1395u(c)) is amended by adding at the end the following new paragraph:
    ``(4) Each contract under this section which provides for the 
disbursement of funds, as described in subsection (a)(1)(B), shall 
require the carrier to meet criteria developed by the Secretary to 
measure the timeliness of carrier responses to requests for payment of 
items described in section 1834(a)(11)(C).''.
    (4) Section 1834(h)(3) (42 U.S.C. 1395m(h)(3)) is amended by 
striking ``paragraph (10) and paragraph (11)'' and inserting 
``paragraphs (10) and (11)''.
    (c) Study of Variations in Durable Medical Equipment Supplier 
Costs.--
            (1) Collection and analysis of supplier cost data.--The 
        Administration of the Health Care Financing Administration 
        shall, in consultation with appropriate organizations, collect 
        data on supplier costs of durable medical equipment for which 
        payment may be made under part B of the medicare program, and 
        shall analyze such data to determine the proportions of such 
        costs attributable to the service and product components of 
        furnishing such equipment and the extent to which such 
        proportions vary by type of equipment and by the geographic 
        region in which the supplier is located.
            (2) Development of geographic adjustment index; reports.--
        Not later than January 1, 1995--
                    (A) the Administrator shall submit a report to the 
                Committees on Energy and Commerce and Ways and Means of 
                the House of Representatives and the Committee on 
                Finance of the Senate on the data collected and the 
                analysis conducted under paragraph (1), and shall 
                include in such report the Administrator's 
                recommendations for a geographic cost adjustment index 
                for suppliers of durable medical equipment under the 
                medicare program and an analysis of the impact of such 
                proposed index on payments under the medicare program; 
                and
                    (B) the Comptroller General shall submit a report 
                to the Committees on Energy and Commerce and Ways and 
                Means of the House of Representatives and the Committee 
                on Finance of the Senate analyzing on a geographic 
                basis the supplier costs of durable medical equipment 
                under the medicare program.
    (d) Oxygen Retesting.--Section 1834(a)(5)(E) (42 U.S.C. 
1395m(a)(5)(E)) is amended by striking ``55'' and inserting ``56''.
    (e) Other Miscellaneous and Technical Amendments.--(1) Section 
4152(a)(3) of OBRA-1990 is amended by striking ``amendment made by 
subsection (a)'' and inserting ``amendments made by this subsection''.
    (2) Section 4152(c)(2) of OBRA-1990 is amended by striking 
``1395m(a)(7)(A)'' and inserting ``1395m(a)(7)''.
    (3) Section 1834(a)(7)(A)(iii)(II) (42 U.S.C. 
1395m(a)(7)(A)(iii)(II)) is amended by striking ``clause (v)'' and 
inserting ``clause (vi)''.
    (4) Section 1834(a)(7)(C)(i) (42 U.S.C. 1395m(a)(7)(C)(i)) is 
amended by striking ``or paragraph (3)''.
    (5) Section 1834(a)(3) (42 U.S.C. 1395m(a)(3)) is amended by 
striking subparagraph (D).
    (6) Section 4153(c)(1) of OBRA-1990 is amended by striking 
``1834(a)'' and inserting ``1834(h)''.
    (7) Section 4153(d)(2) of OBRA-1990 is amended by striking 
``Reconiliation'' and inserting ``Reconciliation''.
    (8)(A) Section 1834(a) (42 U.S.C. 1395m(a)) is amended by striking 
paragraph (6).
    (B) Section 1834(a) (42 U.S.C. 1395m(a)) is amended--
            (i) in subparagraphs (A) and (B) of paragraph (1), by 
        striking ``(2) through (7)'' each place it appears and 
        inserting ``(2) through (5) and (7)'';
            (ii) in paragraph (7), by striking ``(2) through (6)'' and 
        inserting ``(2) through (5)'';
            (iii) in paragraph (8), by striking ``paragraphs (6) and 
        (7)'' each place it appears in the matter preceding 
        subparagraph (A) and in subparagraph (C) and inserting 
        ``paragraph (7)''; and
            (iv) in paragraph (8)(A)(i), by striking ``described--'' 
        and all that follows and inserting ``described in paragraph (7) 
        equal to the average of the purchase prices on the claims 
        submitted on an assignment-related basis for the unused item 
        supplied during the 6-month period ending with December 
        1986.''.
    (9) The amendments made by this subsection shall take effect as if 
included in the enactment of OBRA-1990.

                  Subtitle B--Medicare Secondary Payer

SEC. 1101. MEDICARE SECONDARY PAYER.

    (a) Secondary Payer Exemption for Members of Religious Orders.--
Effective as if included in the enactment of OBRA-1989, section 
6202(e)(2) of such Act is amended by adding at the end the following: 
``Such amendment also shall apply to items and services furnished 
before such date with respect to secondary payor cases which the 
Secretary of Health and Human Services had not identified as of such 
date.''.
    (b) Improving Identification of Medicare Secondary Payer 
Situations.--
            (1) Survey of beneficiaries.--
                    (A) In general.--Section 1862(b)(5) (42 U.S.C. 
                1395y(b)(5)) is amended by adding at the end the 
                following new subparagraph:
                    ``(D) Obtaining information from beneficiaries.--
                Before an individual applies for benefits under part A 
                or enrolls under part B, the Administrator shall mail 
                the individual a questionnaire to obtain information on 
                whether the individual is covered under a primary plan 
                and the nature of the coverage provided under the plan, 
                including the name, address, and identifying number of 
                the plan.''.
                    (B) Distribution of questionnaire by contractor.--
                The Secretary of Health and Human Services shall enter 
                into an agreement with an entity not later than 
                November 1, 1993, to distribute the questionnaire 
                described in section 1862(b)(5)(D) of the Social 
                Security Act (as added by subparagraph (A)).
                    (C) No medicare secondary payor denial based on 
                failure to complete questionnaire.--Section 1862(b)(2) 
                (42 U.S.C. 1395y(b)(2)) is amended by adding at the end 
                the following new subparagraph:
                    ``(C) Treatment of questionnaires.--The Secretary 
                may not fail to make payment under subparagraph (A) 
                solely on the ground that an individual failed to 
                complete a questionnaire concerning the existence of a 
                primary plan.''.
            (2) Mandatory screening by providers and suppliers under 
        part b.--
                    (A) In general.--Section 1862(b) (42 U.S.C. 
                1395y(b)) is amended by adding at the end the following 
                new paragraph:
            ``(6) Screening requirements for providers and suppliers.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this title, no payment may be made for any 
                item or service furnished under part B unless the 
                entity furnishing such item or service completes (to 
                the best of its knowledge and on the basis of 
                information obtained from the individual to whom the 
                item or service is furnished) the portion of the claim 
                form relating to the availability of other health 
                benefit plans.
                    ``(B) Penalties.--An entity that knowingly, 
                willfully, and repeatedly fails to complete a claim 
                form in accordance with subparagraph (A) or provides 
                inaccurate information relating to the availability of 
                other health benefit plans on a claim form under such 
                subparagraph shall be subject to a civil money penalty 
                of not to exceed $2,000 for each such incident. The 
                provisions of section 1128A (other than subsections (a) 
                and (b)) shall apply to a civil money penalty under the 
                previous sentence in the same manner as such provisions 
                apply to a penalty or proceeding under section 
                1128A(a).''.
                    (B)  Effective date.--The amendment made by 
                subparagraph (A) shall apply with respect to items and 
                services furnished on or after July 1, 1993.
    (c) Improvements in Recovery of Payments From Primary Payers.--
            (1) Submission of reports on efforts to recover erroneous 
        payments.--
                    (A) Fiscal intermediaries under part a.--Section 
                1816 (42 U.S.C. 1396h) is amended by adding at the end 
                the following new subsection:
    ``(k) An agreement with an agency or organization under this 
section shall require that such agency or organization submit an annual 
report to the Secretary describing the steps taken to recover payments 
made for items or services for which payment has been or could be made 
under a primary plan (as defined in section 1862(b)(2)(A)).''.
                    (B) Carriers under part b.--Section 1842(b)(3) (42 
                U.S.C. 1395u(b)(3)) is amended--
                            (i) by striking ``and'' at the end of 
                        subparagraphs (G) and (H); and
                            (ii) by inserting after subparagraph (H) 
                        the following new subparagraph:
            ``(I) will submit annual reports to the Secretary 
        describing the steps taken to recover payments made under this 
        part for items or services for which payment has been or could 
        be made under a primary plan (as defined in section 
        1862(b)(2)(A)).''.
            (2) Requirements under carrier performance evaluation 
        program.--
                    (A) Fiscal intermediaries under part a.--Section 
                1816(f)(1)(A) (42 U.S.C. 1396h(f)(1)(A)) is amended by 
                striking ``processing'' and inserting ``processing 
                (including the agency's or organization's success in 
                recovering payments made under this title for services 
                for which payment has been or could be made under a 
                primary plan (as defined in section 1862(b)(2)(A)))''.
                    (B) Carriers under part b.--Section 1842(b)(2) (42 
                U.S.C. 1395u(b)(2)) is amended by adding at the end the 
                following new subparagraph:
    ``(D) In addition to any other standards and criteria established 
by the Secretary for evaluating carrier performance under this 
paragraph relating to avoiding erroneous payments, the Secretary shall 
establish standards and criteria relating to the carrier's success in 
recovering payments made under this part for items or services for 
which payment has been or could be made under a primary plan (as 
defined in section 1862(b)(2)(A)).''.
            (3) Deadline for reimbursement by primary plans.--
                    (A) In general.--Section 1862(b)(2)(B)(i) (42 
                U.S.C. 1395y(b)(2)(B)(i)) is amended by adding at the 
                end the following sentence: ``If reimbursement is not 
                made to the appropriate Trust Fund before the 
                expiration of the 60-day period that begins on the date 
                such notice or other information is received, the 
                Secretary may charge interest (beginning with the date 
                on which the notice or other information is received) 
                on the amount of the reimbursement until reimbursement 
                is made (at a rate determined by the Secretary in 
                accordance with regulations of the Secretary of the 
                Treasury applicable to charges for late payments).''.
                    (B) Conforming amendment.--The heading of clause 
                (i) of section 1862(b)(2)(B) is amended to read as 
                follows: ``Repayment required.--''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to payments for items and 
                services furnished on or after the date of the 
                enactment of this Act.
            (4) Effective date.--The amendments made by paragraphs (1) 
        and (2) shall apply to contracts with fiscal intermediaries and 
        carriers under title XVIII of the Social Security Act for years 
        beginning with 1993.
    (d) Miscellaneous and Technical Corrections.--
            (1) The sentence in section 1862(b)(1)(C) added by section 
        4203(c)(1)(B) of OBRA-1990 is amended--
                    (A) by striking ``on or before January 1, 1996,'' 
                and inserting ``before January 1, 1996''; and
                    (B) by striking ``clauses (i) and (ii)'' and 
                inserting ``this subparagraph''.
            (2) Effective as if included in the enactment of OBRA-1989, 
        section 1862(b)(1) is amended--
                    (A) in subparagraphs (A)(v) and (B)(iv)(II), by 
                inserting ``, without regard to section 5000(d) of such 
                Code'' before the period at the end of each 
                subparagraph;
                    (B) in subparagraph (A)(iii), by striking ``current 
                calendar year or the preceding calendar year'' and 
                inserting ``current calendar year and the preceding 
                calendar year''; and
                    (C) in the matter in subparagraph (C) after clause 
                (ii), by striking ``taking into account that'' and 
                inserting ``paying benefits secondary to this title 
                when''.
            (3) Section 4203(c)(2) of OBRA-1990 is amended--
                    (A) by striking ``the application of clause (iii)'' 
                and inserting ``the second sentence'';
                    (B) by striking ``on individuals'' and all that 
                follows through ``section 226A of such Act'';
                    (C) in clause (ii), by striking ``clause'' and 
                inserting ``sentence'';
                    (D) in clause (v), by adding ``and'' at the end; 
                and
                    (E) in clause (vi)--
                            (i) by inserting ``of such Act'' after 
                        ``1862(b)(1)(C)'', and
                            (ii) by striking the period at the end and 
                        inserting the following: ``, without regard to 
                        the number of employees covered by such 
                        plans.''.
            (4) Section 4203(d) of OBRA-1990 is amended by striking 
        ``this subsection'' and inserting ``this section''.
            (5) Except as provided in paragraph (2), the amendments 
        made by this subsection shall be effective as if included in 
        the enactment of OBRA-1990.

                  TITLE II--CUSTOMS OFFICER PAY REFORM

SEC. 2001. OVERTIME AND PREMIUM PAY FOR CUSTOMS OFFICERS.

    (a) In General.--Section 5 of the Act of February 13, 1911 (19 
U.S.C. 261 and 267) is amended to read as follows:

``SEC. 5. OVERTIME AND PREMIUM PAY FOR CUSTOMS OFFICERS.

    ``(a) Overtime Pay.--
            ``(1) In general.--Subject to paragraph (2) and subsection 
        (c), a customs officer who is officially assigned to perform 
        work in excess of 40 hours in the administrative workweek of 
        the officer or in excess of 8 hours in a day shall be 
        compensated for that work at an hourly rate of pay that is 
        equal to 2 times the hourly rate of the basic pay of the 
        officer. For purposes of this paragraph, the hourly rate of 
        basic pay for a customs officer does not include any premium 
        pay provided for under subsection (b).
            ``(2) Special provisions relating to overtime work on 
        callback basis.--
                    ``(A) Minimum duration.--Any work for which 
                compensation is authorized under paragraph (1) and for 
                which the customs officer is required to return to the 
                officer's place of work shall be treated as being not 
                less than 2 hours in duration; but only if such work 
                begins at least 1 hour after the end of any previous 
                regularly scheduled work assignment and ends at least 1 
                hour before the beginning of the following regularly 
                scheduled work assignment.
                    ``(B) Compensation for commuting time.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), in addition to the compensation 
                        authorized under paragraph (1) for work to 
                        which subparagraph (A) applies, the customs 
                        officer is entitled to be paid, as compensation 
                        for commuting time, an amount equal to 3 times 
                        the hourly rate of basic pay of the officer.
                            ``(ii) Exception.--Compensation for 
                        commuting time is not payable under clause (i) 
                        if the work for which compensation is 
                        authorized under paragraph (1)--
                                    ``(I) does not commence within 16 
                                hours of the customs officer's last 
                                regularly scheduled work assignment, or
                                    ``(II) commences within 2 hours of 
                                the next regularly scheduled work 
                                assignment of the customs officer.
    ``(b) Premium Pay for Customs Officers.--
            ``(1) Night work differential.--
                    ``(A) 3 p.m. to midnight shiftwork.--If the 
                majority of the hours of regularly scheduled work of a 
                customs officer occur during the period beginning at 3 
                p.m. and ending at 12 a.m., the officer is entitled to 
                pay for work during such period (except for work to 
                which paragraph (2) or (3) applies) at the officer's 
                hourly rate of basic pay plus premium pay amounting to 
                15 percent of that basic rate.
                    ``(B) 11 p.m. to 8 a.m. shiftwork.--If the majority 
                of the hours of regularly scheduled work of a customs 
                officer occur during the period beginning at 11 p.m. 
                and ending at 8 a.m., the officer is entitled to pay 
                for work during such period (except for work to which 
                paragraph (2) or (3) applies) at the officer's hourly 
                rate of basic pay plus premium pay amounting to 20 
                percent of that basic rate.
                    ``(C) 7:30 p.m. to 3:30 a.m. shiftwork.--If the 
                regularly scheduled work assignment of a customs 
                officer is 7:30 p.m. to 3:30 a.m., the officer is 
                entitled to pay for work during such period (except for 
                work to which paragraph (2) or (3) applies) at the 
                officer's hourly rate of basic pay plus premium pay 
                amounting to 15 percent of that basic rate for the 
                period from 7:30 p.m. to 11:30 p.m. and at the 
                officer's hourly rate of basic pay plus premium pay 
                amounting to 20 percent of that basic rate for the 
                period from 11:30 p.m. to 3:30 a.m.
            ``(2) Sunday differential.--A customs officer who performs 
        any regularly scheduled work on a Sunday that is not a holiday 
        is entitled to pay for that work at the officer's hourly rate 
        of basic pay plus premium pay amounting to 50 percent of that 
        basic rate.
            ``(3) Holiday differential.--A customs officer who performs 
        any regularly scheduled work on a holiday is entitled to pay 
        for that work at the officer's hourly rate of basic pay plus 
        premium pay amounting to 100 percent of that basic rate.
            ``(4) Treatment of premium pay.--Premium pay provided for 
        under this subsection may not be treated as being overtime pay 
        or compensation for any purpose.
    ``(c) Limitations.--
            ``(1) Fiscal year cap.--The aggregate of overtime pay under 
        subsection (a) (including commuting compensation under 
        subsection (a)(2)(B)) and premium pay under subsection (b) that 
        a customs officer may be paid in any fiscal year may not exceed 
        $25,000; except that the Commissioner of Customs or his 
        designee may waive this limitation in individual cases in order 
        to prevent excessive costs or to meet emergency requirements of 
        the Customs Service.
            ``(2) Exclusivity of pay under this section.--A customs 
        officer who receives overtime pay under subsection (a) or 
        premium pay under subsection (b) for time worked may not 
        receive pay or other compensation for that work under any other 
        provision of law.
    ``(d) Regulations.--The Secretary of the Treasury shall prescribe 
such regulations as are necessary or appropriate to carry out this 
section, including regulations--
            ``(1) to ensure that callback work assignments are 
        commensurate with the overtime pay authorized for such work; 
        and
            ``(2) to prevent the disproportionate assignment of 
        overtime work to customs officers who are near to retirement.
    ``(e) Definitions.--As used in this section:
            ``(1) The term `customs officer' means an individual 
        performing those functions specified by regulation by the 
        Secretary of the Treasury for a customs inspector or canine 
        enforcement officer. Such functions shall be consistent with 
        such applicable standards as may be promulgated by the Office 
        of Personnel Management.
            ``(2) The term `holiday' means any day designated as a 
        holiday under a Federal statute or Executive order.''.
    (b) Conforming Amendments.--
            (1) Section 2 of the Act of June 3, 1944 (19 U.S.C. 1451a), 
        is repealed.
            (2) Section 450 of the Tariff Act of 1930 (19 U.S.C. 1450) 
        is amended--
                    (A) by striking out ``at night'' in the section 
                heading and inserting ``during overtime hours'';
                    (B) by striking out ``at night'' and inserting 
                ``during overtime hours''; and
                    (C) by inserting ``aircraft,'' immediately before 
                ``vessel''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
apply to customs inspectional services provided on or after October 1, 
1993.

SEC. 2002. FOREIGN LANGUAGE PROFICIENCY AWARDS FOR CUSTOMS OFFICERS.

    Cash awards for foreign language proficiency may, under regulations 
prescribed by the Secretary of the Treasury, be paid to customs 
officers (as referred to in section 5(e)(1) of the Act of February 13, 
1911) to the same extent and in the same manner as would be allowable 
under subchapter III of chapter 45 of title 5, United States Code, with 
respect to law enforcement officers (as defined by section 4521 of such 
title).

SEC. 2003. APPROPRIATIONS REIMBURSEMENTS FROM THE CUSTOMS USER FEE 
              ACCOUNT.

    Section 13031(f)(3) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(3)) is amended--
            (1) by amending clause (i) of subparagraph (A) to read as 
        follows: ``(i) in--
                    ``(I) paying overtime compensation and premium pay 
                under section 5 (a) and (b) of the Act of February 13, 
                1911,
                    ``(II) paying agency contributions to the Civil 
                Service Retirement and Disability Fund to match 
                deductions from the overtime compensation paid under 
                subclause (I), and
                    ``(III) providing all preclearance services for 
                which the recipients of such services are not required 
                to reimburse the Secretary of the Treasury, and''; and
            (2) by striking out ``except for costs described in 
        subparagraph (A)(i) (I) and (II),'' in subparagraph (B)(i).

SEC. 2004. TREATMENT OF CERTAIN PAY OF CUSTOMS OFFICERS FOR RETIREMENT 
              PURPOSES.

    (a) In General.--Section 8331(3) of title 5, United States Code, is 
amended--
            (1) by striking out ``and'' at the end of subparagraph (C);
            (2) by striking out the semicolon at the end of 
        subparagraph (D) and inserting ``; and'';
            (3) by adding after subparagraph (D) the following:
                    ``(E) with respect to a customs officer (referred 
                to in subsection (e)(1) of section 5 of the Act of 
                February 13, 1911), compensation for overtime 
                inspectional services provided for under subsection (a) 
                of such section 5, but not to exceed 50 percent of any 
                statutory maximum in overtime pay for customs officers 
                which is in effect for the year involved;''; and
            (4) by striking out ``subparagraphs (B), (C), and (D) of 
        this paragraph,'' and inserting ``subparagraphs (B), (C), (D), 
        and (E) of this paragraph''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of the enactment of this Act and apply only with 
respect to service performed on or after such date.

SEC. 2005. REPORTS.

    (a) Customs User Fee Account Reports.--Subparagraph (D) of section 
13031(f)(3) of the Consolidated Omnibus Budget Reconciliation Act of 
1985 (19 U.S.C. 58c(f)(3)(D)) is amended to read as follows:
                    ``(D) At the close of each fiscal year, the 
                Secretary of the Treasury shall submit a report to the 
                Committee on Finance of the Senate and the Committee on 
                Ways and Means of the House of Representatives--
                            ``(i) containing a detailed accounting of 
                        all expenditures from the Customs User Fee 
                        Account during such year, including a summary 
                        of the expenditures, on a port-by-port basis, 
                        for which reimbursement has been provided under 
                        subparagraph (A)(ii);
                            ``(ii) containing a listing of all callback 
                        assignments of customs officers for which 
                        overtime compensation was paid under section 
                        5(a) of the Act of February 13, 1911, and that 
                        were less than 1 hour in duration; and
                            ``(iii) containing a listing of all customs 
                        officers who were paid $25,000 or more under 
                        subsections 5(a) and 5(b) of the Act of 
                        February 13, 1911, including a listing of the 
                        total compensation paid to each of those 
                        customs officers under all other statutory 
                        authority.''.
    (b) Other Reports.--
            (1) GAO report.--The Comptroller General of the United 
        States shall undertake--
                    (A) an evaluation of the appropriateness and 
                efficiency of the customs user fee laws for financing 
                the provision of customs inspectional services; and
                    (B) a study to determine whether cost savings in 
                the provision of overtime inspectional services could 
                be realized by the United States Customs Service 
                through the use of additional inspectors as opposed to 
                continuing the current practice of relying on overtime 
                pay.
        The Comptroller General shall submit a report on the evaluation 
        and study required under this subsection to the Committees by 
        no later than the 1st anniversary of the date of the enactment 
        of this Act.
            (2) Treasury recommendation.--On the day that the President 
        submits the budget for the United States Government for fiscal 
        year 1995 to the Congress under section 1105(a) of title 31, 
        United States Code, the Secretary of the Treasury shall submit 
        to the Committees recommended legislative proposals for 
        improving the operation of customs user fee laws in financing 
        the provision of customs inspectional services.
            (3) Definition of committees.--For purposes of this 
        subsection, the term ``Committees'' means the Committee on Ways 
        and Means of the House of Representatives and the Committee on 
        Finance of the Senate.

TITLE III--AVAILABILITY AND USE OF DEATH INFORMATION UNDER THE OLD-AGE, 
              SURVIVORS, AND DISABILITY INSURANCE PROGRAM

SEC. 3001. AVAILABILITY AND USE OF DEATH INFORMATION UNDER THE OLD-AGE, 
              SURVIVORS, AND DISABILITY INSURANCE PROGRAM.

    (a) Improvements in Program for Use of Death Certificates to 
Correct Program Information.--
            (1) Elimination of state restrictions on use of 
        information.--Section 205(r)(1) of the Social Security Act (42 
        U.S.C. 405(r)(1)) is amended by adding at the end, after and 
        below subparagraph (B), the following new sentence:
``Any contract entered into pursuant to subparagraph (A) shall not 
include any restriction on the use of information obtained by the 
Secretary pursuant to such contract, except to the extent that such use 
may be restricted under paragraph (6).''.
            (2) Information provided to state agencies free of 
        charge.--
                    (A) In general.--Section 205(r)(4) of such Act (42 
                U.S.C. 405(r)(4)) is amended to read as follows:
    ``(4)(A) In the case of individuals with respect to whom federally 
funded benefits are provided by (or through) a State agency other than 
under this Act, the Secretary shall to the extent feasible provide such 
information free of charge through a cooperative arrangement with such 
agency, for ensuring proper payment of those benefits with respect to 
such individuals, if such arrangement does not conflict with the duties 
of the Secretary under paragraph (1).
    ``(B) The Secretary may enter into similar agreements with States 
to provide information free of charge for their use in programs wholly 
funded by the States if such arrangement does not conflict with the 
duties of the Secretary under paragraph (1).''.
                    (B) Conforming amendment.--Section 205(r)(3) of 
                such Act (42 U.S.C. 405(r)(3)) is amended by striking 
                ``or State''.
            (3) Use by states of social security account numbers 
        contingent upon participation in program.--Section 205(r)(2) of 
        such Act (42 U.S.C. 405(r)(2)) is amended--
                    (A) by inserting ``(A)'' after ``(2)''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(B) Notwithstanding section 7(a)(2)(B) of the Privacy Act of 1974 
and clauses (i) and (v) of subsection (c)(2)(C) of this section, any 
State which is not a party to a contract with the Secretary meeting the 
requirements of paragraph (1) (and any political subdivision thereof) 
may not utilize an individual's social security account number in the 
administration of any driver's license or motor vehicle registration 
law.''.
    (b) Study Regarding Improvements in Gathering and Reporting of 
Death Information.
            (1) In general.--As soon as practicable after the date of 
        the enactment of this Act, the Secretary of Health and Human 
        Services shall conduct a study of possible improvements in the 
        current methods of gathering and reporting death information by 
        the Federal, State, and local governments which would result in 
        more efficient and expeditious handling of such information.
            (2) Specific matters to be studied.--In carrying out the 
        study required under this subsection, the Secretary shall--
                    (A) ascertain the delays in the receipt of death 
                information which are currently encountered by the 
                Social Security Administration and other agencies in 
                need of such information on a regular basis,
                    (B) analyze the causes of such delays,
                    (C) develop alternative options for improving 
                Federal, State, and local agency cooperation in 
                reducing such delays, and
                    (D) evaluate the costs and benefits associated with 
                the options referred to in subparagraph (C).
            (3) Report.--Not later than June 1, 1994, the Secretary 
        shall submit a written report to the Committee on Ways and 
        Means of the House of Representatives and the Committee on 
        Finance of the Senate setting forth the results of the study 
        conducted pursuant to this subsection, together with such 
        administrative and legislative recommendations as the Secretary 
        may consider appropriate.
    (c) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect 1 year after the date of the enactment of 
        this Act.
            (2) Promotion of entry into new contracts.--As soon as 
        practicable after the date of the enactment of this Act, the 
        Secretary of Health and Human Services shall take such actions 
        as are necessary and appropriate to promote entry into 
        contracts under section 205(r) of the Social Security Act which 
        are in compliance with the requirements of the amendments made 
        by subsection (a).

       TITLE IV--PBGC REPORT ON EMPLOYERS WITH UNDERFUNDED PLANS

SEC. 4001. REPORT ON EMPLOYERS WITH UNDERFUNDED PLANS.

    (a) General Rule.--The Pension Benefit Guaranty Corporation shall, 
on January 31 of each calendar year after 1993, submit a report to the 
Congress setting forth--
            (1) the name of each contributing sponsor of 1 or more 
        applicable plans having unfunded liabilities aggregating 
        $25,000,000 or more, and
            (2) the name of each contributing sponsor with an 
        applicable plan which has an unfunded liability in excess of 
        $5,000,000 and with respect to which a minimum funding waiver 
        in excess of $1,000,000 has been granted.
Information may be included in such report only if such information may 
be publicly disclosed by the Pension Benefit Guaranty Corporation.
    (b) Determinations of Unfunded Liability.--For purposes of 
subsection (a), determinations of the unfunded liability of any plan 
shall be made by the Pension Benefit Guaranty Corporation on the basis 
of the most recent information available to it.
    (c) Applicable Plan.--For purposes of subsection (a), the term 
``applicable plan'' means any employee pension benefit plan (as defined 
in paragraph (2) of section 3 of the Employee Retirement Income 
Security Act of 1974) covered under subtitle B of title IV of such Act; 
except that such term shall not include a multiemployer plan (as 
defined in section 4001(a)(3) of such Act).
    (d) Contributing Sponsor.--For purposes of this section, the term 
``contributing sponsor'' has the meaning given to such term by section 
4001(a)(13) of such Act.

                   TITLE V--TAXPAYER BILL OF RIGHTS 2

SEC. 5000. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This title may be cited as the ``Taxpayer Bill of 
Rights 2''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title or title VI an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Internal Revenue Code of 1986.

                     Subtitle A--Taxpayer Advocate

SEC. 5001. ESTABLISHMENT OF POSITION OF TAXPAYER ADVOCATE WITHIN 
              INTERNAL REVENUE SERVICE.

    (a) General Rule.--Section 7802 (relating to Commissioner of 
Internal Revenue; Assistant Commissioner (Employee Plans and Exempt 
Organizations)) is amended by adding at the end thereof the following 
new subsection:
    ``(d) Office of Taxpayer Advocate.--
            ``(1) In general.--There is established in the Internal 
        Revenue Service an office to be known as the `Office of the 
        Taxpayer Advocate'. Such office, including all problem 
        resolution officers, shall be under the supervision and 
        direction of an official to be known as the `Taxpayer Advocate' 
        who shall be appointed by the President by and with the advice 
        and consent of the Senate, and who shall report directly to the 
        Commissioner of Internal Revenue. The Taxpayer Advocate shall 
        be entitled to compensation at the same rate as the Chief 
        Counsel for the Internal Revenue Service.
            ``(2) Functions of office.--
                    ``(A) In general.--It shall be the function of the 
                Office of Taxpayer Advocate to--
                            ``(i) assist taxpayers in resolving 
                        problems with the Internal Revenue Service,
                            ``(ii) identify areas in which taxpayers 
                        have problems in dealings with the Internal 
                        Revenue Service,
                            ``(iii) to the extent possible, propose 
                        changes in the administrative practices of the 
                        Internal Revenue Service to mitigate problems 
                        identified under clause (ii), and
                            ``(iv) identify potential legislative 
                        changes which may be appropriate to mitigate 
                        such problems.
                    ``(B) Annual reports.--
                            ``(i) Objectives.--Not later than October 
                        31 of each calendar year after 1993, the 
                        Taxpayer Advocate shall report to the Committee 
                        on Ways and Means of the House of 
                        Representatives and the Committee on Finance of 
                        the Senate on the objectives of the Taxpayer 
                        Advocate for the following calendar year. Any 
                        such report shall contain full and substantive 
                        analysis, in addition to statistical 
                        information.
                            ``(ii) Activities.--Not later than June 30 
                        of each calendar year after 1993, the Taxpayer 
                        Advocate shall report to the Committee on Ways 
                        and Means of the House of Representatives and 
                        the Committee on Finance of the Senate on the 
                        activities of the Taxpayer Advocate during the 
                        fiscal year ending during such calendar year. 
                        Any such report shall contain full and 
                        substantive analysis, in addition to 
                        statistical information, and shall--
                                    ``(I) identify the initiatives the 
                                Taxpayer Advocate has taken on 
                                improving taxpayer services and 
                                Internal Revenue Service 
                                responsiveness,
                                    ``(II) contain recommendations 
                                received from individuals with the 
                                authority to issue taxpayer assistance 
                                orders under section 7811,
                                    ``(III) contain a summary of at 
                                least 20 of the most serious problems 
                                encountered by taxpayers, including a 
                                description of the nature of such 
                                problems,
                                    ``(IV) contain an inventory of the 
                                items described in subclauses (I), 
                                (II), and (III) for which action has 
                                been taken and the result of such 
                                action,
                                    ``(V) contain an inventory of the 
                                items described in subclauses (I), 
                                (II), and (III) for which action 
                                remains to be completed and the period 
                                during which each item has remained on 
                                such inventory,
                                    ``(VI) contain an inventory of the 
                                items described in subclauses (II) and 
                                (III) for which no action has been 
                                taken, the period during which each 
                                item has remained on such inventory, 
                                the reasons for the inaction, and 
                                identify any Internal Revenue Service 
                                official who is responsible for such 
                                inaction,
                                    ``(VII) identify any Taxpayer 
                                Assistance Order which was not honored 
                                by the Internal Revenue Service in a 
                                timely manner, as specified under 
                                section 7811(b),
                                    ``(VIII) contain recommendations 
                                for such administrative and legislative 
                                action as may be appropriate to resolve 
                                problems encountered by taxpayers, and
                                    ``(IX) include such other 
                                information as the Taxpayer Advocate 
                                may deem advisable.
                            ``(iii) Report to be submitted directly.--
                        Each report required under this subparagraph 
                        shall be provided directly to the Committees 
                        referred to in clauses (i) and (ii) without any 
                        prior review or comment from the Commissioner 
                        of the Internal Revenue Service, the Secretary 
                        of the Treasury, any other officer or employee 
                        of the Department of the Treasury, or the 
                        Office of Management and Budget.
            ``(3) Responsibilities of Commissioner of Internal Revenue 
        Service.--The Commissioner of Internal Revenue shall establish 
        procedures requiring a formal response to all recommendations 
        submitted to the Commissioner by the Taxpayer Advocate.''
    (b) Conforming Amendments.--
            (1) Section 7811 (relating to taxpayer assistance orders) 
        is amended--
                    (A) by striking ``the Office of Ombudsman'' in 
                subsection (a) and inserting ``the Office of the 
                Taxpayer Advocate'', and
                    (B) by striking ``Ombudsman'' each place it appears 
                (including in the headings of subsections (e) and (f)) 
                and inserting ``Taxpayer Advocate''.
            (2) The heading for section 7802 is amended to read as 
        follows:

``SEC. 7802. COMMISSIONER OF INTERNAL REVENUE; ASSISTANT COMMISSIONERS; 
              TAXPAYER ADVOCATE.''

            (3) The table of sections for subchapter A of chapter 80 of 
        subtitle F is amended by striking the item relating to section 
        7802 and inserting the following new item:

                              ``Sec. 7802. Commissioner of Internal 
                                        Revenue; Assistant 
                                        Commissioners; Taxpayer 
                                        Advocate.''

    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 5002. EXPANSION OF AUTHORITY TO ISSUE TAXPAYER ASSISTANCE ORDERS.

    (a) Terms of Orders.--Subsection (b) of section 7811 (relating to 
terms of taxpayer assistance orders) is amended--
            (1) by inserting ``within a specified time period'' after 
        ``the Secretary'', and
            (2) by inserting ``take any action as permitted by law,'' 
        after ``cease any action,''.
    (b) Limitation on Authority To Modify or Rescind.--Section 7811(c) 
(relating to authority to modify or rescind) is amended to read as 
follows:
    ``(c) Authority To Modify or Rescind.--Any Taxpayer Assistance 
Order issued by the Taxpayer Advocate under this section may be 
modified or rescinded only by the Taxpayer Advocate, the Commissioner, 
or any superior of either.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

     Subtitle B--Modifications to Installment Agreement Provisions

SEC. 5101. NOTIFICATION OF REASONS FOR TERMINATION OR DENIAL OF 
              INSTALLMENT AGREEMENTS.

    (a) Terminations.--Subsection (b) of section 6159 (relating to 
extent to which agreements remain in effect) is amended by adding at 
the end thereof the following new paragraph:
            ``(5) Notice requirements.--The Secretary may not take any 
        action under paragraph (2), (3), or (4) unless--
                    ``(A) a notice of such action is provided to the 
                taxpayer not later than the day 30 days before the date 
                of such action, and
                    ``(B) such notice includes an explanation why the 
                Secretary intends to take such action.
        The preceding sentence shall not apply in any case in which the 
        Secretary believes that collection of any tax to which an 
        agreement under this section relates is in jeopardy.''
    (b) Denials.--Section 6159 (relating to agreements for payment of 
tax liability in installments) is amended by adding at the end thereof 
the following new subsection:
    ``(c) Notice Requirements for Denials.--The Secretary may not deny 
any request for an installment agreement under this section unless--
            ``(1) a notice of the proposed denial is provided to the 
        taxpayer not later than the day 30 days before the date of such 
        denial, and
            ``(2) such notice includes an explanation why the Secretary 
        intends to deny such request.
The preceding sentence shall not apply in any case in which the 
Secretary believes that collection of any tax to which a request for an 
agreement under this section relates is in jeopardy.''
    (c) Conforming Amendment.--Paragraph (3) of section 6159(b) is 
amended to read as follows:
            ``(3) Subsequent change in financial conditions.--If the 
        Secretary makes a determination that the financial condition of 
        a taxpayer with whom the Secretary has entered into an 
        agreement under subsection (a) has significantly changed, the 
        Secretary may alter, modify, or terminate such agreement.''
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date 6 months after the date of the enactment of this 
Act.

SEC. 5102. ADMINISTRATIVE REVIEW OF DENIAL OF REQUEST FOR, OR 
              TERMINATION OF, INSTALLMENT AGREEMENT.

    (a) General Rule.--Section 6159 (relating to agreements for payment 
of tax liability in installments), as amended by section 1101, is 
amended by adding at the end thereof the following new subsection:
    ``(d) Administrative Review.--The Secretary shall establish 
procedures for an independent administrative review of denials of 
requests for, or terminations of, installment agreements under this 
section.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1994.

                          Subtitle C--Interest

SEC. 5201. EXPANSION OF AUTHORITY TO ABATE INTEREST.

    (a) General Rule.--Paragraph (1) of section 6404(e) (relating to 
abatement of interest in certain cases) is amended--
            (1) by inserting ``unreasonable'' before ``error'' each 
        place it appears in subparagraphs (A) and (B), and
            (2) by striking ``ministerial act'' each place it appears 
        and inserting ``ministerial or managerial act''.
    (b) Clerical Amendment.--The subsection heading for subsection (e) 
of section 6404 is amended by striking ``Assessments'' and inserting 
``Abatement''.
    (c) Effective Date.--The amendments made by this section shall 
apply to interest accruing with respect to deficiencies or payments for 
taxable years beginning after the date of the enactment of this Act.

SEC. 5202. EXTENSION OF INTEREST-FREE PERIOD FOR PAYMENT OF TAX AFTER 
              NOTICE AND DEMAND.

    (a) General Rule.--Paragraph (3) of section 6601(e) (relating to 
payments made within 10 days after notice and demand) is amended to 
read as follows:
            ``(3) Payments made within specified period after notice 
        and demand.--If notice and demand is made for payment of any 
        amount and if such amount is paid within 21 days (10 days if 
        the amount for which such notice and demand is made equals or 
        exceeds $100,000) after the date of such notice and demand, 
        interest under this section on the amount so paid shall not be 
        imposed for the period after the date of such notice and 
        demand.''
    (b) Conforming Amendment.--Paragraph (3) of section 6651(a) 
(relating to addition to tax for failure to file tax return or pay tax) 
is amended by striking ``10 days'' and inserting ``21 days (10 days if 
the amount for which such notice and demand is made equals or exceed 
$100,000)''.
    (c) Effective Date.--The amendments made by this section shall 
apply in the case of any notice and demand given after June 30, 1994.

                       Subtitle D--Joint Returns

SEC. 5301. DISCLOSURE OF COLLECTION ACTIVITIES.

    (a) General Rule.--Subsection (e) of section 6103 (relating to 
disclosure to persons having material interest) is amended by adding at 
the end thereof the following new paragraph:
            ``(8) Disclosure of collection activities with respect to 
        joint return.--If any deficiency of tax with respect to a joint 
        return is assessed and the individuals filing such return are 
        no longer married or no longer reside in the same household, 
        upon request in writing of either of such individuals, the 
        Secretary may disclose in writing to the individual making the 
        request whether the Secretary has attempted to collect such 
        deficiency from such other individual, the general nature of 
        such collection activities, and the amount collected.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 5302. JOINT RETURN MAY BE MADE AFTER SEPARATE RETURNS WITHOUT FULL 
              PAYMENT OF TAX.

    (a) General Rule.--Paragraph (2) of section 6013(b) (relating to 
limitations on filing of joint return after filing separate returns) is 
amended by striking subparagraph (A) and redesignating the following 
subparagraphs accordingly.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

                   Subtitle E--Collection Activities

SEC. 5401. MODIFICATIONS TO LIEN AND LEVY PROVISIONS.

    (a) Withdrawal of Certain Notices.--Section 6323 (relating to 
validity and priority against certain persons) is amended by adding at 
the end thereof the following new subsection:
    ``(j) Withdrawal of Notice in Certain Circumstances.--
            ``(1) In general.--The Secretary may withdraw a notice of a 
        lien filed under this section and this chapter shall be applied 
        as if the withdrawn notice had not been filed, if the Secretary 
        determines that--
                    ``(A) the filing of such notice was premature or 
                otherwise not in accordance with administrative 
                procedures of the Secretary,
                    ``(B) the taxpayer has entered into an agreement 
                under section 6159 to satisfy the tax liability for 
                which the lien was imposed by means of installment 
                payments, unless such agreement provides otherwise,
                    ``(C) the withdrawal of such notice will facilitate 
                the collection of the tax liability, or
                    ``(D) with the consent of the taxpayer or the 
                Taxpayer Advocate, the withdrawal of such notice would 
                be in the best interests of the taxpayer (as determined 
                by the Taxpayer Advocate) and the United States.
        Any such withdrawal shall be made by filing notice thereof at 
        the same office as the withdrawn notice. A copy of such notice 
        of withdrawal shall be provided to the taxpayer.
            ``(2) Notice to credit agencies, etc.--Upon written request 
        by the taxpayer with respect to whom a notice of a lien was 
        withdrawn under paragraph (1), the Secretary shall promptly 
        make reasonable efforts to notify credit reporting agencies, 
        and any financial institution or creditor whose name and 
        address is specified in such request, of the withdrawal of such 
        notice. Any such request shall be in such form as the Secretary 
        may prescribe.''
    (b) Return of Levied Property in Certain Cases.--Section 6343 
(relating to authority to release levy and return property) is amended 
by adding at the end thereof the following new subsection:
    ``(d) Return of Property in Certain Cases.--If--
            ``(1) any property has been levied upon, and
            ``(2) the Secretary determines that--
                    ``(A) the levy on such property was premature or 
                otherwise not in accordance with administrative 
                procedures of the Secretary,
                    ``(B) the taxpayer has entered into an agreement 
                under section 6159 to satisfy the tax liability for 
                which the levy was imposed by means of installment 
                payments, unless such agreement provides otherwise,
                    ``(C) the return of such property will facilitate 
                the collection of the tax liability, or
                    ``(D) with the consent of the taxpayer or the 
                Taxpayer Advocate, the return of such property would be 
                in the best interests of the taxpayer (as determined by 
                the Taxpayer Advocate) and the United States,
the provisions of subsection (b) shall apply in the same manner as if 
such property had been wrongly levied upon, except that no interest 
shall be allowed under subsection (c).''
    (c) Modifications in Certain Levy Exemption Amounts.--
            (1) Fuel, etc.--Paragraph (2) of section 6334(a) (relating 
        to fuel, provisions, furniture, and personal effects exempt 
        from levy) is amended--
                    (A) by striking ``If the taxpayer is the head of a 
                family, so'' and inserting ``So'', and
                    (B) by striking ``$1,650 ($1,550 in the case of 
                levies issued during 1989)'' and inserting ``$1,700''.
            (2) Books, etc.--Paragraph (3) of section 6334(a) (relating 
        to books and tools of a trade, business, or profession exempt 
        from levy) is amended by striking ``$1,100 ($1,050 in the case 
        of levies issued during 1989)'' and inserting ``$1,200''.
            (3) Indexed for inflation.--Section 6334 (relating to 
        property exempt from levy) is amended by adding at the end 
        thereof the following new subsection:
    ``(f) Inflation Adjustments.--
            ``(1) In general.--In the case of any calendar year 
        beginning after 1994, each dollar amount referred to in 
        paragraphs (2) and (3) of subsection (a) shall be increased by 
        an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year, by 
                substituting `calendar year 1993' for `calendar year 
                1989' in subparagraph (B) thereof.
            ``(2) Rounding.--If any dollar amount after being increased 
        under paragraph (1) is not a multiple of $10, such dollar 
        amount shall be rounded to the nearest multiple of $10 (or, if 
        such dollar amount is a multiple of $5, such dollar amount 
        shall be increased to the next higher multiple of $10).''
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act.
            (2) Exempt amounts.--The amendments made by subsection (c) 
        shall take effect with respect to levies issued after December 
        31, 1993.

SEC. 5402. OFFERS-IN-COMPROMISE.

    (a) General Rule.--Subsection (a) of section 7122 (relating to 
compromises) is amended by adding at the end thereof the following new 
sentence: ``The Secretary may make such a compromise in any case where 
the Secretary determines that such compromise would be in the best 
interests of the United States.''.
    (b) Review Requirements.--Subsection (b) of section 7122 (relating 
to records) is amended by striking ``$500.'' and inserting ``$50,000. 
However, such compromise shall be subject to continuing quality review 
by the Secretary.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 5403. NOTIFICATION OF EXAMINATION.

    (a) In General.--Section 7605 (relating to restrictions on 
examination of taxpayer) is amended by redesignating subsection (c) as 
subsection (d) and by inserting after subsection (b) the following new 
subsection:
    ``(c) Notification Requirement.--No examination described in 
subsection (a) shall be made unless the Secretary notifies the taxpayer 
in writing by mail to an address determined under section 6212(b) that 
the taxpayer is under examination and provides the taxpayer with an 
explanation of the process as described in section 7521(b)(1). The 
preceding sentence shall not apply in the case of any examination if 
the Secretary determines that--
            ``(1) such examination is in connection with a criminal 
        investigation or is with respect to a tax the collection of 
        which is in jeopardy, or
            ``(2) the application of the preceding sentence would be 
        inconsistent with national security needs or would interfere 
        with the effective conduct of a confidential law enforcement or 
        foreign counterintelligence activity.''
    (b) Conforming Amendment.--Paragraph (1) of section 7521(b) 
(relating to safeguards) is amended by striking ``or at''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 5404. INCREASE IN LIMIT ON RECOVERY OF CIVIL DAMAGES FOR 
              UNAUTHORIZED COLLECTION ACTIONS.

    (a) General Rule.--Subsection (b) of section 7433 (relating to 
damages) is amended by striking ``$100,000'' and inserting 
``$1,000,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to actions by officers or employees of the Internal Revenue 
Service after the date of the enactment of this Act.

SEC. 5405. SAFEGUARDS RELATING TO DESIGNATED SUMMONS.

    (a) Standard of Review.--Subparagraph (A) of section 6503(k)(2) 
(defining designated summons) is amended by redesignating clauses (i) 
and (ii) as clauses (ii) and (iii), respectively, and by inserting 
before clause (ii) (as so redesignated) the following new clause:
                            ``(i) the issuance of such summons is 
                        preceded by a review of such issuance by the 
                        regional counsel of the Office of Chief Counsel 
                        for the region in which the examination of the 
                        corporation is being conducted,''.
    (b) Notice Requirements for Issuance.--Section 6503(k) is amended 
by adding at the end thereof the following new paragraph:
            ``(4) Notice requirements.--With respect to any summons 
        referred to in paragraph (1)(A) issued to any person other than 
        the corporation, the Secretary shall promptly notify the 
        corporation, in writing, that such summons has been issued with 
        respect to such corporation's return of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to summons issued after the date of the enactment of this Act.

                    Subtitle F--Information Returns

SEC. 5501. PHONE NUMBER OF PERSON PROVIDING PAYEE STATEMENTS REQUIRED 
              TO BE SHOWN ON SUCH STATEMENT.

    (a) General Rule.--The following provisions are each amended by 
striking ``name and address'' and inserting ``name, address, and phone 
number of the information contact'':
            (1) Section 6041(d)(1).
            (2) Section 6041A(e)(1).
            (3) Section 6042(c)(1).
            (4) Section 6044(e)(1).
            (5) Section 6045(b)(1).
            (6) Section 6049(c)(1)(A).
            (7) Section 6050B(b)(1).
            (8) Section 6050H(d)(1).
            (9) Section 6050I(e)(1).
            (10) Section 6050J(e).
            (11) Section 6050K(b)(1).
            (12) Section 6050N(b)(1).
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to statements required to be furnished after December 31, 1994 
(determined without regard to any extension).

SEC. 5502. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMATION RETURNS.

    (a) General Rule.--Subchapter B of chapter 76 (relating to 
proceedings by taxpayers and third parties) is amended by redesignating 
section 7434 as section 7435 and by inserting after section 7433 the 
following new section:

``SEC. 7434. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMATION 
              RETURNS.

    ``(a) In General.--If any person willfully files a false or 
fraudulent information return with respect to payments purported to be 
made to any other person, such other person may bring a civil action 
for damages against the person so filing such return.
    ``(b) Damages.--In any action brought under subsection (a), upon a 
finding of liability on the part of the defendant, the defendant shall 
be liable to the plaintiff in an amount equal to the greater of $5,000 
or the sum of--
            ``(1) any actual damages sustained by the plaintiff as a 
        proximate result of the filing of the false or fraudulent 
        information return (including any costs attributable to 
        resolving deficiencies asserted as a result of such filing), 
        and
            ``(2) the costs of the action.
    ``(c) Period for Bringing Action.--Notwithstanding any other 
provision of law, an action to enforce the liability created under this 
section may be brought without regard to the amount in controversy and 
may be brought only within the later of--
            ``(1) 4 years after the date of the filing of the false or 
        fraudulent information return, or
            ``(2) 1 year after the date such false or fraudulent 
        information return would have been discovered by exercise of 
        reasonable care.
    ``(d) Copy of Complaint Filed With IRS.--Any person bringing an 
action under subsection (a) shall provide a copy of the complaint to 
the Internal Revenue Service upon the filing of such complaint with the 
court.
    ``(e) Finding of Court To Include Correct Amount of Payment.--The 
judgment of the court in an action brought under subsection (a) shall 
include a finding of the correct amount which should have been reported 
in the information return.
    ``(f) Information Return.--For purposes of this section, the term 
`information return' means any statement described in section 
6724(d)(1)(A).''
    (b) Clerical Amendment.--The table of sections for subchapter B of 
chapter 76 is amended by striking the item relating to section 7434 and 
inserting the following:

                              ``Sec. 7434. Civil damages for fraudulent 
                                        filing of information returns.
                              ``Sec. 7435. Cross references.''
    (c) Effective Date.--The amendments made by this section shall 
apply to false or fraudulent information returns filed after the date 
of the enactment of this Act.

SEC. 5503. REQUIREMENT TO VERIFY ACCURACY OF INFORMATION RETURNS.

    (a) General Rule.--Section 6201 (relating to assessment authority) 
is amended by redesignating subsection (d) as subsection (e) and by 
inserting after subsection (c) the following new subsection:
    ``(d) Required Reasonable Verification of Information Returns.--In 
any court proceeding, if a taxpayer asserts a reasonable dispute with 
respect to any item of income reported on an information return filed 
with the Secretary under subpart B of part III of subchapter A of 
chapter 61 by a third party and the taxpayer has fully cooperated with 
the Secretary (including providing, within a reasonable period of time, 
access to and inspection of all witnesses, information, and documents 
within the control of the taxpayer as reasonably requested by the 
Secretary), the Secretary shall present reasonable and probative 
information concerning such deficiency in addition to such information 
return.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

  Subtitle G--Modifications to Penalty for Failure to Collect and Pay 
                                Over Tax

SEC. 5601. PRELIMINARY NOTICE REQUIREMENT.

    (a) In General.--Section 6672 (relating to failure to collect and 
pay over tax, or attempt to evade or defeat tax) is amended by 
redesignating subsection (b) as subsection (c) and by inserting after 
subsection (a) the following new subsection:
    ``(b) Preliminary Notice Requirement.--
            ``(1) In general.--No penalty shall be imposed under 
        subsection (a) unless the Secretary notifies the taxpayer in 
        writing by mail to an address as determined under section 
        6212(b) that the taxpayer shall be subject to an assessment of 
        such penalty.
            ``(2) Timing of notice.--The mailing of the notice 
        described in paragraph (1) shall precede any notice and demand 
        of any penalty under subsection (a) by at least 60 days.
            ``(3) Statute of limitations.--If a notice described in 
        paragraph (1) with respect to any penalty is mailed before the 
        expiration of the period provided by section 6501 for the 
        assessment of such penalty (determined without regard to this 
        paragraph), the period provided by such section for the 
        assessment of such penalty shall not expire before the date 90 
        days after the date on which such notice was mailed.
            ``(4) Exception for jeopardy.--This subsection shall not 
        apply if the Secretary finds that the collection of the penalty 
        is in jeopardy.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to assessments made after June 30, 1994.

SEC. 5602. NO PENALTY IF PROMPT NOTIFICATION OF THE SECRETARY.

    (a) In General.--Section 6672 (relating to failure to collect and 
pay over tax, or attempt to evade or defeat tax) is amended by adding 
at the end thereof the following new subsection:
    ``(d) Penalty Not Applicable Where Prompt Notification of 
Failure.--
            ``(1) In general.--A person shall not be liable for any 
        penalty under subsection (a) by reason of any failure referred 
        to in subsection (a) if--
                    ``(A) such person is not a significant owner, or 
                highly compensated employee, of the trade or business 
                with respect to which such failure occurred,
                    ``(B) such person notifies the Secretary (in such 
                manner as he may prescribe) that such failure has 
                occurred within 10 days after the date of such failure,
                    ``(C) such notification was before any notice by 
                the Secretary to any person with respect to such 
                failure, and
                    ``(D) such failure is not a part of a plan to 
                defraud the Federal Government.
            ``(2) Definitions.--For purposes of paragraph (1)--
                    ``(A) Significant owner.--The term `significant 
                owner' means--
                            ``(i) any person holding an interest as a 
                        proprietor in a trade or business carried on as 
                        a proprietorship, and
                            ``(ii) in the case of a trade or business 
                        conducted by a corporation or partnership, any 
                        person who is a 5-percent owner (as defined in 
                        section 416(i)(1)) in such corporation or 
                        partnership, as the case may be.
                    ``(B) Highly compensated employee.--The term 
                `highly compensated employee' means any employee who 
                receives compensation from the employer at an annual 
                rate in excess of $75,000.
            ``(3) Special rules.--
                    ``(A) One-time relief.--This subsection shall apply 
                only once with respect to--
                            ``(i) any person, and
                            ``(ii) any trade or business with respect 
                        to which the failure described in subsection 
                        (a) occurred.
                    ``(B) Application of subsection.--This subsection 
                shall not apply if it results in no person being held 
                liable for the penalty described in subsection (a).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply in the case of failures after the date of the enactment of this 
Act.

SEC. 5603. DISCLOSURE OF CERTAIN INFORMATION WHERE MORE THAN 1 PERSON 
              SUBJECT TO PENALTY.

    (a) In General.--Subsection (e) of section 6103 (relating to 
disclosure to persons having material interest), as amended by section 
5301, is amended by adding at the end thereof the following new 
paragraph:
            ``(9) Disclosure of certain information where more than 1 
        person subject to penalty under section 6672.--If the Secretary 
        determines that a person is liable for a penalty under section 
        6672(a) with respect to any failure, upon request in writing of 
        such person, the Secretary shall disclose in writing to such 
        person--
                    ``(A) the name of any other person whom the 
                Secretary has determined to be liable for such penalty 
                with respect to such failure, and
                    ``(B) whether the Secretary has attempted to 
                collect such penalty from such other person, the 
                general nature of such collection activities, and the 
                amount collected.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 5604. PENALTIES UNDER SECTION 6672.

    (a) Public Information Requirements.--The Secretary of the Treasury 
or the Secretary's delegate (hereafter in this section referred to as 
the ``Secretary'') shall take such actions as may be appropriate to 
ensure that employees are aware of their responsibilities under the 
Federal tax depository system, the circumstances under which employees 
may be liable for the penalty imposed by section 6672 of the Internal 
Revenue Code of 1986, and the responsibility to promptly report to the 
Internal Revenue Service any failure referred to in subsection (a) of 
such section 6672. Such actions shall include--
            (1) printing of a warning on deposit coupon booklets and 
        the appropriate tax returns that certain employees may be 
        liable for the penalty imposed by such section 6672, and
            (2) the development of a special information packet.
    (b) Board Members of Tax-Exempt Organizations.--
            (1) Voluntary board members.--
                    (A) In general.--The penalty under section 6672 of 
                the Internal Revenue Code of 1986 shall not be imposed 
                on unpaid, volunteer members of any board of trustees 
                or directors of an organization referred to in section 
                501 of such Code to the extent such members are solely 
                serving in an honorary capacity, do not participate in 
                the day-to-day or financial operations of the 
                organization, and do not have actual knowledge of the 
                failure on which such penalty is imposed.
                    (B) Application of paragraph.--This paragraph shall 
                not apply if it results in no person being held liable 
                for the penalty described in section 6672(a) of the 
                Internal Revenue Code of 1986.
            (2) Development of explanatory materials.--The Secretary 
        shall develop materials explaining the circumstances under 
        which board members of tax-exempt organizations (including 
        voluntary and honorary members) may be subject to penalty under 
        section 6672 of such Code. Such materials shall be made 
        available to tax-exempt organizations.
            (3) IRS instructions.--The Secretary shall clarify the 
        instructions to Internal Revenue Service employees on the 
        application of the penalty under section 6672 of such Code with 
        regard to voluntary members of boards of trustees or directors 
        of tax-exempt organizations.
    (c) Prompt Notification.--To the maximum extent practicable, the 
Secretary shall notify all persons who have failed to make timely and 
complete deposit of any taxes described in section 6672 of the Internal 
Revenue Code of 1986 of such failure within 30 days after the return 
was filed reflecting such failure or after the date on which the 
Secretary is first aware of such failure. If the person failing to make 
the deposit is not an individual, the Secretary shall notify the entity 
subject to such deposit requirement and that entity shall notify, 
within 15 days of the notification by the Secretary, all officers, 
general partners, trustees, or other managers of the failure.

             Subtitle H--Awarding of Costs and Certain Fees

SEC. 5701. MOTION FOR DISCLOSURE OF INFORMATION.

    Paragraph (4) of section 7430(c) (defining prevailing party) is 
amended by adding at the end thereof the following new subparagraph:
                    ``(C) Motion for disclosure of information.--Once a 
                taxpayer substantially prevails as described in 
                subparagraph (A)(ii), the taxpayer may file a motion 
                for an order requiring the disclosure (within a 
                reasonable period of time specified by the court) of 
                all information and copies of relevant records in the 
                possession of the Internal Revenue Service with respect 
                to such taxpayer's case and the substantial 
                justification for the position taken by the Internal 
                Revenue Service.''

SEC. 5702. INCREASED LIMIT ON ATTORNEY FEES.

    Paragraph (1) of section 7430(c) (defining reasonable litigation 
costs) is amended--
            (1) by striking ``$75'' in clause (iii) of subparagraph (B) 
        and inserting ``$110'',
            (2) by striking ``an increase in the cost of living or'' in 
        clause (iii) of subparagraph (B), and
            (3) by adding after clause (iii) the following:
        ``In the case of any calendar year beginning after 1993, the 
        dollar amount referred to in clause (iii) shall be increased by 
        an amount equal to such dollar amount multiplied by the cost-
        of-living adjustment determined under section 1(f)(3) for such 
        calendar year, by substituting `calendar year 1992' for 
        `calendar year 1989' in subparagraph (B) thereof. If any dollar 
        amount after being increased under the preceding sentence is 
        not a multiple of $10, such dollar amount shall be rounded to 
        the nearest multiple of $10 (or, if such dollar amount is a 
        multiple of $5, such dollar amount shall be increased to the 
        next higher multiple of $10).''

SEC. 5703. FAILURE TO AGREE TO EXTENSION NOT TAKEN INTO ACCOUNT.

    Paragraph (1) of section 7430(b) (relating to requirement that 
administrative remedies be exhausted) is amended by adding at the end 
thereof the following new sentence: ``Any failure to agree to an 
extension of the time for the assessment of any tax shall not be taken 
into account for purposes of determining whether the prevailing party 
meets the requirements of the preceding sentence.''

SEC. 5704. EFFECTIVE DATE.

    The amendments made by this subtitle shall apply in the case of 
proceedings commenced after the date of the enactment of this Act.

                      Subtitle I--Other Provisions

SEC. 5801. REQUIRED CONTENT OF CERTAIN NOTICES.

    (a) General Rule.--Subsection (a) of section 7522 (relating to 
content of tax due, deficiency, and other notices) is amended by 
striking ``shall describe the basis for, and identify'' and inserting 
``shall set forth the adjustments which are the basis for, and shall 
identify''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to notices sent after the date 6 months after the date of the 
enactment of this Act.

SEC. 5802. TREATMENT OF SUBSTITUTE RETURNS UNDER SECTION 6651.

    (a) General Rule.--Section 6651 (relating to failure to file tax 
return or to pay tax) is amended by adding at the end thereof the 
following new subsection:
    ``(h) Treatment of Returns Prepared by Secretary Under Section 
6020(b).--In the case of any return made by the Secretary under section 
6020(b)--
            ``(1) such return shall be disregarded for purposes of 
        determining the amount of the addition under paragraph (1) of 
        subsection (a), but
            ``(2) such return shall be treated as the return filed by 
        the taxpayer for purposes of determining the amount of the 
        addition under paragraphs (2) and (3) of subsection (a).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply in the case of any return the due date for which (determined 
without regard to extensions) is after the date of the enactment of 
this Act.

SEC. 5803. RELIEF FROM RETROACTIVE APPLICATION OF TREASURY DEPARTMENT 
              REGULATIONS.

    (a) In General.--Subsection (b) of section 7805 (relating to rules 
and regulations) is amended to read as follows:
    ``(b) Retroactivity of Regulations.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, no temporary, proposed, or final regulation 
        relating to the internal revenue laws shall apply to any 
        taxable period ending before the earliest of the following 
        dates:
                    ``(A) The date on which such regulation is filed 
                with the Federal Register.
                    ``(B) In the case of any final regulation, the date 
                on which any proposed or temporary regulation to which 
                such final regulation relates was filed with the 
                Federal Register.
                    ``(C) The date on which any notice substantially 
                describing the expected contents of any temporary, 
                proposed, or final regulation is issued to the public.
            ``(2) Exception for promptly issued regulations.--Paragraph 
        (1) shall not apply to regulations issued within 12 months of 
        the date of the enactment of the statutory provision to which 
        the regulation relates.
            ``(3) Prevention of abuse.--The Secretary may provide that 
        any regulation may take effect or apply retroactively to 
        prevent abuse of a statute to which the regulation relates.
            ``(4) Correction of procedural defects.--The Secretary may 
        provide that any regulation may apply retroactively to correct 
        a procedural defect in the issuance of any prior regulation.
            ``(5) Internal regulations.--The limitations of paragraph 
        (1) shall not apply to any regulation relating to internal 
        Treasury Department policies, practices or procedures.
            ``(6) Congressional authorization.--The limitation of 
        paragraph (1) may be superseded by a legislative grant from 
        Congress authorizing the Secretary to prescribe the effective 
        date with respect to any regulation.
            ``(7) Election to apply retroactively.--The Secretary may 
        provide for any taxpayer to elect to apply any regulation 
        before the dates specified in paragraph (1).
            ``(8) Application to rulings.--The Secretary may prescribe 
        the extent, if any, to which any ruling (including any judicial 
        decision or any administrative determination other than by 
        regulation) relating to the internal revenue laws shall be 
        applied without retroactive effect.''
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendment made by subsection (a) shall apply with 
        respect to--
                    (A) any temporary or proposed regulation filed on 
                or after January 5, 1993, and
                    (B) any temporary or proposed regulation filed 
                before January 5, 1993, and filed as a final regulation 
                after such date.
            (2) Special rule.--Section 7805(b)(2) of the Internal 
        Revenue Code of 1986 (as added by subsection (a)) shall apply 
        only to statutes enacted on or after the date of the enactment 
        of this Act.

SEC. 5804. REQUIRED NOTICE OF CERTAIN PAYMENTS.

    If any payment is received by the Secretary of the Treasury or the 
Secretary's delegate (hereafter in the section referred to as the 
``Secretary'') from any taxpayer and the Secretary cannot associate 
such payment with any outstanding tax liability of such taxpayer, the 
Secretary shall make reasonable efforts to notify the taxpayer of such 
inability within 60 days after the receipt of such payment.

SEC. 5805. UNAUTHORIZED ENTICEMENT OF INFORMATION DISCLOSURE.

    (a) In General.--Subchapter B of chapter 76 (relating to 
proceedings by taxpayers and third parties) is amended by redesignating 
section 7434 as section 7435 and by inserting after section 7433 the 
following new section:

``SEC. 7434. CIVIL DAMAGES FOR UNAUTHORIZED ENTICEMENT OF INFORMATION 
              DISCLOSURE.

    ``(a) In General.--If any officer or employee of the United States 
intentionally compromises the determination or collection of any tax 
due from an attorney, certified public accountant, or enrolled agent 
representing a taxpayer in exchange for information conveyed by the 
taxpayer to the attorney, certified public accountant, or enrolled 
agent for purposes of obtaining advice concerning the taxpayer's tax 
liability, such taxpayer may bring a civil action for damages against 
the United States in a district court of the United States. Such civil 
action shall be the exclusive remedy for recovering damages resulting 
from such actions.
    ``(b) Damages.--In any action brought under subsection (a), upon a 
finding of liability on the part of the defendant, the defendant shall 
be liable to the plaintiff in an amount equal to the lesser of $500,000 
or the sum of--
            ``(1) actual, direct economic damages sustained by the 
        plaintiff as a proximate result of the information disclosure, 
        and
            ``(2) the costs of the action.
Damages shall not include the taxpayer's liability for any civil or 
criminal penalties, or other losses attributable to incarceration or 
the imposition of other criminal sanctions.
    ``(c) Payment Authority.--Claims pursuant to this section shall be 
payable out of funds appropriated under section 1304 of title 31, 
United States Code.
    ``(d) Period for Bringing Action.--Notwithstanding any other 
provision of law, an action to enforce liability created under this 
section may be brought without regard to the amount in controversy and 
may be brought only within 2 years after the date the actions creating 
such liability would have been discovered by exercise of reasonable 
care.
    ``(e) Mandatory Stay.--Upon a certification by the Commissioner or 
the Commissioner's delegate that there is an ongoing investigation or 
prosecution of the taxpayer, the district court before which an action 
under this section is pending, shall stay all proceedings with respect 
to such action pending the conclusion of the investigation or 
prosecution.
    ``(f) Crime-Fraud Exception.--Subsection (a) shall not apply to 
information conveyed to an attorney, certified public accountant, or 
enrolled agent for the purpose of perpetrating a fraud or crime.''
    (b) Clerical Amendment.--The table of sections for subchapter B of 
chapter 76 is amended by striking the item relating to section 7434 and 
by adding at the end thereof the following new items:

                              ``Sec. 7434. Civil damages for 
                                        unauthorized enticement of 
                                        information disclosure.
                              ``Sec. 7435. Cross references.''
    (c) Effective Date.--The amendments made by this section shall 
apply to actions after the date of the enactment of this Act.

                Subtitle J--Form Modifications; Studies

SEC. 5900. DEFINITIONS.

    For purposes of this subtitle:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or his delegate.
            (2) 1986 code.--The term ``1986 Code'' means the Internal 
        Revenue Code of 1986.
            (3) Tax-writing committees.--The term ``tax-writing 
        Committees'' means the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the Senate.

                       PART I--FORM MODIFICATIONS

SEC. 5901. EXPLANATION OF CERTAIN PROVISIONS.

    (a) General Rule.--The Secretary shall take such actions as may be 
appropriate to ensure that taxpayers are aware of the provisions of the 
1986 Code permitting payment of tax in installments, extensions of time 
for payment of tax, and compromises of tax liability. Such actions 
shall include revising the instructions for filing income tax returns 
so that such instructions include an explanation of--
            (1) the procedures for requesting the benefits of such 
        provisions, and
            (2) the terms and conditions under which the benefits of 
        such provisions are available.
    (b) Collection Notices.--In any notice of an underpayment of tax or 
proposed underpayment of tax sent by the Secretary to any taxpayer, the 
Secretary shall include a notification of the availability of the 
provisions of sections 6159, 6161, and 7122 of the 1986 Code.

SEC. 5902. IMPROVED PROCEDURES FOR NOTIFYING SERVICE OF CHANGE OF 
              ADDRESS OR NAME.

    The Secretary shall provide improved procedures for taxpayers to 
notify the Secretary of changes in names and addresses. Not later than 
June 30, 1994, the Secretary shall institute procedures for timely 
updating all Internal Revenue Service records with change-of-address 
information provided to the Secretary by taxpayers.

SEC. 5903. RIGHTS AND RESPONSIBILITIES OF DIVORCED INDIVIDUALS.

    The Secretary shall include in the Internal Revenue Service 
publication entitled ``Your Rights As A Taxpayer'' a section on the 
rights and responsibilities of divorced individuals.

                            PART II--STUDIES

SEC. 5911. PILOT PROGRAM FOR APPEAL OF ENFORCEMENT ACTIONS.

    (a) General Rule.--The Secretary shall establish a 1-year pilot 
program for appeals of enforcement actions (including lien, levy, and 
seizure actions) to the Appeals Division of the Internal Revenue 
Service--
            (1) where the deficiency was assessed without actual 
        knowledge of the taxpayer,
            (2) where the deficiency was assessed without an 
        opportunity for administrative appeal, and
            (3) in other appropriate circumstances.
    (b) Report.--Not later than June 30, 1994, the Secretary shall 
submit to the tax-writing Committees a report on the pilot program 
established under subsection (a), together with such recommendations as 
he may deem advisable.

SEC. 5912. STUDY ON TAXPAYERS WITH SPECIAL NEEDS.

    (a) General Rule.--The Secretary shall conduct a study on ways to 
assist the elderly, physically impaired, foreign-language speaking, and 
other taxpayers with special needs to comply with the internal revenue 
laws.
    (b) Report.--Not later than June 30, 1994, the Secretary shall 
submit to the tax-writing Committees a report on the study conducted 
under subsection (a), together with such recommendations as he may deem 
advisable.

SEC. 5913. REPORTS ON TAXPAYER-RIGHTS EDUCATION PROGRAM.

    Not later than April 1, 1994, the Secretary shall submit a report 
to the tax-writing Committees on the scope and content of the Internal 
Revenue Service's taxpayer-rights education program for its officers 
and employees. Not later than June 30, 1994, the Secretary shall submit 
a report to the tax-writing Committees on the effectiveness of the 
program referred to in the preceding sentence.

SEC. 5914. BIENNIAL REPORTS ON MISCONDUCT BY INTERNAL REVENUE SERVICE 
              EMPLOYEES.

    During June 30, 1994 and during June of each second calendar year 
thereafter, the Secretary shall report to the tax-writing Committees on 
all cases involving complaints about misconduct of Internal Revenue 
Service employees and the disposition of such complaints.

SEC. 5915. STUDY OF NOTICES OF DEFICIENCY.

    (a) General Rule.--The Comptroller General shall conduct a study 
on--
            (1) the effectiveness of current Internal Revenue Service 
        efforts to notify taxpayers with regard to tax deficiencies 
        under section 6212 of the 1986 Code,
            (2) the number of registered or certified letters and other 
        notices returned to the Internal Revenue Service as 
        undeliverable,
            (3) any follow-up action taken by the Internal Revenue 
        Service to locate taxpayers who did not receive actual notice,
            (4) the effect that failures to receive notice of such 
        deficiencies have on taxpayers, and
            (5) recommendations to improve Internal Revenue Service 
        notification of taxpayers.
    (b) Report.--Not later than June 30, 1994, the Comptroller General 
shall submit to the tax-writing Committees a report on the study 
conducted under subsection (a), together with such recommendations as 
he may deem advisable.

SEC. 5916. NOTICE AND FORM ACCURACY STUDY.

    (a) General Rule.--The Comptroller General shall conduct annual 
studies of the accuracy of 25 of the most commonly used Internal 
Revenue Service forms, notices, and publications. In conducting any 
such study, the Comptroller General shall examine the suitability and 
usefulness of Internal Revenue Service telephone numbers on Internal 
Revenue Service notices and shall solicit and consider the comments of 
organizations representing taxpayers, employers, and tax professionals.
    (b) Reports.--The Comptroller General shall submit to the tax-
writing Committees a report on each study conducted under subsection 
(a), together with such recommendations as he may deem advisable. The 
first such report shall be submitted not later than June 30, 1994.

            TITLE VI--OTHER INTERNAL REVENUE CODE PROVISIONS

  Subtitle A--Extension of Authority for Undercover Operations; Cash-
                          Transaction Reports

SEC. 6001. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.

    (a) 3-Year Extension.--
            (1) In general.--Subsection (c) of section 7608 (relating 
        to undercover operations) is amended by adding at the end 
        thereof the following new paragraph:
            ``(6) Termination.--The provisions of this subsection shall 
        cease to apply on and after September 1, 1995; and all amounts 
        expended pursuant to this subsection shall be recovered to the 
        extent possible, and deposited in the Treasury of the United 
        States as miscellaneous receipts, before such date.''
            (2) Conforming amendment.--Paragraph (3) of section 7601(c) 
        of the Anti-Drug Abuse Act of 1988 is amended by striking all 
        that follows ``this Act'' and inserting a period.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on January 1, 1992.
    (b) Enhanced Oversight.--
            (1) Additional information required in reports to 
        congress.--Subparagraph (B) of section 7608(c)(4) is amended--
                    (A) by striking ``preceding the period'' in clause 
                (ii),
                    (B) by striking ``and'' at the end of clause (ii), 
                and
                    (C) by striking clause (iii) and inserting the 
                following:
                            ``(iii) the number, by programs, of 
                        undercover investigative operations closed in 
                        the 1-year period for which such report is 
                        submitted, and
                            ``(iv) the following information with 
                        respect to each undercover investigative 
                        operation pending as of the end of the 1-year 
                        period for which such report is submitted or 
                        closed during such 1-year period--
                                    ``(I) the date the operation began 
                                and the date of the certification 
                                referred to in the last sentence of 
                                paragraph (1),
                                    ``(II) the total expenditures under 
                                the operation and the amount and use of 
                                the proceeds from the operation,
                                    ``(III) a detailed description of 
                                the operation including the potential 
                                violation being investigated and 
                                whether the operation is being 
                                conducted under grand jury auspices, 
                                and
                                    ``(IV) the results of the operation 
                                including the results of criminal 
                                proceedings.''
            (2) Audits required without regard to amounts involved.--
        Subparagraph (C) of section 7608(c)(5) is amended to read as 
        follows:
                    ``(C) Undercover investigative operation.--The term 
                `undercover investigative operation' means any 
                undercover investigative operation of the Service; 
                except that, for purposes of subparagraphs (A) and (C) 
                of paragraph (4), such term only includes an operation 
                which is exempt from section 3302 or 9102 of title 31, 
                United States Code.''
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.

SEC. 6002. DISCLOSURE OF RETURNS ON CASH TRANSACTIONS.

    (a) General Rule.--Subsection (l) of section 6103 (relating to 
disclosure of returns and return information for purposes other than 
tax administration) is amended by adding at the end thereof the 
following new paragraph:
            ``(13) Disclosure of returns filed under section 6050i.--
        The Secretary may, upon written request, disclose to officers 
        and employees of--
                    ``(A) any Federal agency,
                    ``(B) any agency of a State or local government, or
                    ``(C) any agency of the government of a foreign 
                country,
        information contained on returns filed under section 6050I. Any 
        such disclosure shall be made on the same basis, and subject to 
        the same conditions, as apply to disclosures of information on 
        reports filed under section 5313 of title 31, United States 
        Code; except that no disclosure under this paragraph shall be 
        made for purposes of the administration of any tax law.''
    (b) Conforming Amendments.--
            (1) Subsection (i) of section 6103 is amended by striking 
        paragraph (8).
            (2) Subparagraph (A) of section 6103(p)(3) is amended--
                    (A) by striking ``(7)(A)(ii), or (8)'' and 
                inserting ``or (7)(A)(ii)'', and
                    (B) by striking ``or (12)'' and inserting ``(12), 
                or (13)''.
            (3) The material preceding subparagraph (A) of section 
        6103(p)(4) is amended--
                    (A) by striking ``(5), or (8)'' and inserting ``or 
                (5)'',
                    (B) by striking ``(i)(3)(B)(i) or (8)'' and 
                inserting ``(i)(3)(B)(i)'', and
                    (C) by striking ``or (12)'' and inserting ``(12), 
                or (13)''.
            (4) Clause (ii) of section 6103(p)(4)(F) is amended--
                    (A) by striking ``(5), or (8)'' and inserting ``or 
                (5)'', and
                    (B) by striking ``or (12) and inserting ``(12), or 
                (13)''.
            (5) Paragraph (2) of section 7213(a) is amended by striking 
        ``or (12)'' and inserting ``(12), or (13)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

        Subtitle B--Provisions Relating to Exempt Organizations

SEC. 6101. CERTAIN ORGANIZATIONS REQUIRED TO DISCLOSE NONEXEMPT STATUS.

    (a) General Rule.--Subchapter B of chapter 61 (relating to 
miscellaneous provisions) is amended by redesignating section 6115 as 
section 6116 and by inserting after section 6114 the following new 
section:

``SEC. 6115. CERTAIN ORGANIZATIONS REQUIRED TO DISCLOSE NONEXEMPT 
              STATUS.

    ``(a) In General.--If--
            ``(1) in an advertisement or solicitation by (or on behalf 
        of) an organization, such organization is referred to as being 
        nonprofit, and
            ``(2) such organization is not exempt from tax under 
        subtitle A,
such advertisement or solicitation shall contain an express statement 
(in a conspicuous and easily recognizable format) that such 
organization is not exempt from Federal income taxes.
    ``(b) Cross Reference.--

                                ``For penalties for violation of 
subsection (a), see section 6714.''
    (b) Penalty.--Part I of subchapter B of chapter 68 is amended by 
adding at the end thereof the following new section:

``SEC. 6714. FAILURE TO DISCLOSE NONEXEMPT STATUS.

    ``(a) Imposition of Penalty.--If there is a failure to meet the 
requirements of section 6115 with respect to any advertisement or 
solicitation by (or on behalf of) an organization, such organization 
shall pay a penalty of $1,000 for each day on which such a failure 
occurred. The maximum penalty imposed under this subsection on failures 
by any organization during any calendar year shall not exceed $10,000.
    ``(b) Reasonable Cause Exemption.--No penalty shall be imposed 
under this section with respect to any failure if it is shown that such 
failure is due to reasonable cause.
    ``(c) $10,000 Limitation Not To Apply Where Intentional 
Disregard.--If any failure to which subsection (a) applies is due to 
intentional disregard of the requirements of section 6115--
            ``(1) the penalty under subsection (a) for the day on which 
        failure occurred shall be the greater of--
                    ``(A) $1,000, or
                    ``(B) 50 percent of the aggregate cost of the 
                advertisements and solicitations which occurred on such 
                day and with respect to which there was such failure,
            ``(2) the $10,000 limitation of subsection (a) shall not 
        apply to any penalty under subsection (a) for the day on which 
        such failure occurred, and
            ``(3) such penalty shall not be taken into account in 
        applying such limitation to other penalties under subsection 
        (a).
    ``(d) Day on Which Failure Occurs.--For purposes of this section, 
rules similar to the rules of section 6710(d) shall apply in 
determining the day on which any failure occurs.''
    (c) Clerical Amendments.--
            (1) The table of sections for subchapter B of chapter 61 is 
        amended by striking the item relating to section 6115 and 
        inserting the following:

                                  ``Sec. 6115. Certain organizations 
                                        required to disclose nonexempt 
                                        status.
                                  ``Sec. 6116. Cross reference.''
            (2) The table of sections of part I of subchapter B of 
        chapter 68 is amended by adding at the end thereof the 
        following new item:

                                  ``Sec. 6714. Failure to disclose 
                                        nonexempt status.''
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1994.

SEC. 6102. EXEMPT ORGANIZATIONS REQUIRED TO PROVIDE COPY OF RETURN.

    (a) General Rule.--
            (1) Subparagraph (A) of section 6104(e)(1) (relating to 
        public inspection of annual returns) is amended to read as 
        follows:
                    ``(A) In general.--During the 3-year period 
                beginning on the filing date--
                            ``(i) a copy of the annual return filed 
                        under section 6033 (relating to returns by 
                        exempt organizations) by any organization to 
                        which this paragraph applies shall be made 
                        available by such organization for inspection 
                        during regular business hours by any individual 
                        at the principal office of such organization 
                        and, if such organization regularly maintains 1 
                        or more regional or district offices having 3 
                        or more employees, at each such regional or 
                        district office, and
                            ``(ii) upon request of an individual made 
                        at such principal office or such a regional or 
                        district office, a copy of such annual return 
                        shall be provided to such individual without 
                        charge other than a reasonable fee for the cost 
                        of reproduction.
                If the request under clause (ii) is made in person, 
                such copy shall be provided immediately and, if made 
                other than in person, shall be provided within 30 
                days.''
            (2) Clause (ii) of section 6104(e)(2)(A) is amended by 
        inserting before the period at the end thereof the following: 
        ``(and, upon request of an individual made at such principal 
        office or such a regional or district office, a copy of the 
        material required to be available for inspection under this 
        subparagraph shall be provided (in accordance with the last 
        sentence of paragraph (1)(A)) to such individual without charge 
        other than a reasonable fee for the cost of reproduction)''.
    (b) Advertisements Etc., Required to Disclose Availability of 
Annual Return.--
            (1) Paragraph (1) of section 6104(e) is amended by adding 
        at the end thereof the following new subparagraph:
                    ``(E) Advertisements etc., required to disclose 
                availability of annual return.--In the case of an 
                organization required by subparagraph (A) to provide a 
                copy of its annual return under section 6033 upon 
                request to individuals, each advertisement or 
                solicitation by (or on behalf of) such organization 
                shall contain an express statement (in a conspicuous 
                and easily recognizable format) that such return shall 
                be provided to individuals upon request.''
            (2) Section 6714 is amended--
                    (A) by striking ``section 6115'' each place it 
                appears and inserting ``section 6115 or section 
                6104(e)(1)(E)'',
                    (B) by striking ``$1,000'' in subsection (a) and 
                inserting ``$1,000 ($100 in the case of a failure to 
                meet the requirements of 6104(e)(1)(E))'', and
                    (C) by inserting before the period at the end of 
                the section heading ``; failure of certain exempt 
                organizations to disclose availability of annual 
                return''.
            (3) Subparagraph (C) of section 6652(c)(1) is amended by 
        striking ``(e)(1)'' and inserting ``(e)(1) (other than 
        subparagraph (E))'', and by striking ``$10'' and inserting 
        ``$50''.
            (4) Subparagraph (D) of section 6652(c)(1) is amended by 
        striking ``$10'' and inserting ``$50''.
            (5) The item relating to section 6714 in the table of 
        sections for part I of subchapter B of chapter 68 is amended by 
        inserting before the period ``; failure of certain exempt 
        organizations to disclose availability of annual return''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1994.

 TITLE VII--PROHIBITION OF MISUSE OF DEPARTMENT OF THE TREASURY NAMES, 
                              SYMBOLS, ETC

SEC. 7001. PROHIBITION OF MISUSE OF DEPARTMENT OF THE TREASURY NAMES, 
              SYMBOLS, ETC.

    (a) General Rule.--Subchapter II of chapter 3 of title 31, United 
States Code, is amended by adding at the end thereof the following new 
section:
``Sec. 333. Prohibition of misuse of Department of the Treasury names, 
              symbols, etc.
    ``(a) General Rule.--No person may use, in connection with, or as a 
part of, any advertisement, solicitation, business activity, or 
product, whether alone or with other words, letters, symbols, or 
emblems--
            ``(1) the words `Department of the Treasury', or the name 
        of any service, bureau, office, or other subdivision of the 
        Department of the Treasury,
            ``(2) the titles `Secretary of the Treasury' or `Treasurer 
        of the United States' or the title of any other officer or 
        employee of the Department of the Treasury,
            ``(3) the abbreviations or initials of any entity referred 
        to in paragraph (1),
            ``(4) the words `United States Savings Bond' or the name of 
        any other obligation issued by the Department of the Treasury,
            ``(5) any symbol or emblem of an entity referred to in 
        paragraph (1) (including the design of any envelope or 
        stationary used by such an entity), and
            ``(6) any colorable imitation of any such words, titles, 
        abbreviations, initials, symbols, or emblems,
in a manner which could reasonably be interpreted or construed as 
conveying the false impression that such advertisement, solicitation, 
business activity, or product is in any manner approved, endorsed, 
sponsored, or authorized by, or associated with, the Department of the 
Treasury or any entity referred to in paragraph (1) or any officer or 
employee thereof.
    ``(b) Treatment of Waivers.--Any determination of whether a person 
has violated the provisions of subsection (a) shall be made without 
regard to any use of a disclaimer of affiliation with the United States 
Government or any particular agency or instrumentality thereof.
    ``(c) Civil Penalty.--
            ``(1) In general.--The Secretary of the Treasury may impose 
        a civil penalty on any person who violates the provisions of 
        subsection (a).
            ``(2) Amount of penalty.--The amount of the civil penalty 
        imposed by paragraph (1) shall not exceed $5,000 for each use 
        of any material in violation of subsection (a). If such use is 
        in a broadcast or telecast, the preceding sentence shall be 
        applied by substituting `$25,000' for `$5,000'.
            ``(3) Time limitations.--
                    ``(A) Assessments.--The Secretary of the Treasury 
                may assess any civil penalty under paragraph (1) at any 
                time before the end of the 3-year period beginning on 
                the date of the violation with respect to which such 
                penalty is imposed.
                    ``(B) Civil action.--The Secretary of the Treasury 
                may commence a civil action to recover any penalty 
                imposed under this subsection at any time before the 
                end of the 2-year period beginning on the date on which 
                such penalty was assessed.''.
    (b) Clerical Amendment.--The analysis for chapter 3 of title 31, 
United States Code, is amended by adding after the item relating to 
section 332 the following new item:

``333. Prohibition of misuse of Department of the Treasury names, 
                            symbols, etc.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
    (d) Report.--Not later than May 1, 1995, the Secretary of the 
Treasury shall submit a report to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
on the implementation of the amendments made by this section. Such 
report shall include the number of cases in which the Secretary has 
notified persons of violations of section 333 of title 31, United 
States Code (as added by subsection (a)), the number and amount of 
civil penalties assessed under such section, and the total amount of 
such penalties collected.

                                 <all>

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