I 
112TH CONGRESS 
2D SESSION 
H. R. 6688 
To extend tax relief for all Americans, to replace the defense sequester 
scheduled to take effect on January 2, 2013, with responsible reductions 
in direct and other spending, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 19, 2012 
Mr. JORDAN (for himself, Mr. MULVANEY, Mr. SCALISE, Mr. GARRETT, Mr. 
FLORES, Mr. BROUN of Georgia, Mr. WALBERG, Mrs. HARTZLER, Mr. 
STUTZMAN, Mr. OLSON, Mr. LUETKEMEYER, Mr. GRIFFIN of Arkansas, 
Mr. CULBERSON, Mr. ROE of Tennessee, Mr. PEARCE, Mr. GRAVES of 
Georgia, Mr. HUELSKAMP, Mr. GIBBS, Mr. FLEMING, Mrs. MYRICK, Mr. 
PRICE of Georgia, Mrs. BLACKBURN, and Mr. SCHWEIKERT) introduced 
the following bill; which was referred to the Committee on Ways and 
Means, and in addition to the Committees on the Budget, Agriculture, 
Energy and Commerce, Financial Services, the Judiciary, Oversight and 
Government Reform, House Administration, and Rules, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To extend tax relief for all Americans, to replace the defense 
sequester scheduled to take effect on January 2, 2013, 
with responsible reductions in direct and other spending, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Averting the Fiscal 
Cliff Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—JOB PROTECTION AND RECESSION PREVENTION ACT 
Subtitle A—Job Protection and Recession Prevention Act 
Sec. 1101. Short title. 
Sec. 1102. Permanent extension of 2001 and 2003 tax relief. 
Sec. 1103. Extension of increased small business expensing. 
Sec. 1104. Extension of alternative minimum tax relief for individuals. 
Subtitle B—Pathway to Job Creation Through a Simpler, Fairer Tax Code 
Act 
Sec. 1201. Short title. 
Sec. 1202. Findings and purposes. 
Sec. 1203. Expedited Consideration of a Measure Providing for Comprehensive 
Tax Reform. 
TITLE II—SEQUESTRATION REPLACEMENT ACT 
Subtitle A—Agriculture 
Sec. 2101. Short title. 
Sec. 2102. ARRA sunset on date of enactment of this Act. 
Sec. 2103. Categorical eligibility limited to cash assistance. 
Sec. 2104. Standard utility allowances based on the receipt of energy assistance 
payments. 
Sec. 2105. Employment and training; workfare. 
Sec. 2106. End State bonus program for the supplemental nutrition assistance 
program. 
Sec. 2107. Funding of employment and training programs. 
Sec. 2108. Turn off indexing for nutrition education and obesity prevention. 
Sec. 2109. Extension of Authorization of Food and Nutrition Act of 2008. 
Sec. 2110. Effective dates and application of amendments. 
Subtitle B—Committee on Energy and Commerce 
CHAPTER 1—REPEAL OF CERTAIN ACA FUNDING PROVISIONS 
Sec. 2201. Repealing mandatory funding to states to establish American Health 
Benefit Exchanges. 
Sec. 2202. Repealing Prevention and Public Health Fund. 
Sec. 2203. Rescinding unobligated balances for CO-OP program. 
CHAPTER 2—MEDICAID 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Sec. 2211. Revision of provider tax indirect guarantee threshold. 
Sec. 2212. Rebasing of State DSH allotments for fiscal year 2022. 
Sec. 2213. Repeal of Medicaid and CHIP maintenance of effort requirements 
under PPACA. 
Sec. 2214. Medicaid payments to territories. 
Sec. 2215. Repealing bonus payments for enrollment under Medicaid and 
CHIP. 
Subtitle C—Financial Services 
Sec. 2301. Table of contents. 
CHAPTER 1—ORDERLY LIQUIDATION FUND 
Sec. 2311. Repeal of liquidation authority. 
CHAPTER 2—HOME AFFORDABLE MODIFICATION PROGRAM 
Sec. 2321. Short title. 
Sec. 2322. Congressional findings. 
Sec. 2323. Termination of authority. 
Sec. 2324. Sense of Congress. 
CHAPTER 3—BUREAU OF CONSUMER FINANCIAL PROTECTION 
Sec. 2331. Bringing the Bureau of Consumer Financial Protection into the reg-
ular appropriations process. 
CHAPTER 4—REPEAL OF THE OFFICE OF FINANCIAL RESEARCH 
Sec. 2341. Repeal of the Office of Financial Research. 
Subtitle D—Committee on the Judiciary 
Sec. 2401. Short title. 
Sec. 2402. Encouraging speedy resolution of claims. 
Sec. 2403. Compensating patient injury. 
Sec. 2404. Maximizing patient recovery. 
Sec. 2405. Punitive damages. 
Sec. 2406. Authorization of payment of future damages to claimants in health 
care lawsuits. 
Sec. 2407. Definitions. 
Sec. 2408. Effect on other laws. 
Sec. 2409. State flexibility and protection of States’ rights. 
Sec. 2410. Applicability; effective date. 
Subtitle E—Committee on Oversight and Government Reform 
Sec. 2501. Retirement contributions. 
Sec. 2502. Annuity supplement. 
Sec. 2503. Contributions to Thrift Savings Fund of payments for accrued or 
accumulated leave. 
Subtitle F—Committee on Ways and Means 
CHAPTER 1—RECAPTURE OF OVERPAYMENTS RESULTING FROM CERTAIN 
FEDERALLY SUBSIDIZED HEALTH INSURANCE 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6211
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Sec. 2601. Recapture of overpayments resulting from certain federally sub-
sidized health insurance. 
CHAPTER 2—SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE 
REFUNDABLE PORTION OF THE CHILD TAX CREDIT 
Sec. 2611. Social security number required to claim the refundable portion of 
the child tax credit. 
CHAPTER 3—HUMAN RESOURCES PROVISIONS 
Sec. 2621. Repeal of the program of block grants to States for social services. 
Subtitle G—Sequester Replacement 
Sec. 2701. Short title. 
Sec. 2702. Protecting veterans programs from sequester. 
Sec. 2703. Achieving $19 billion in discretionary savings. 
Sec. 2704. Conforming amendments to section 314 of the Congressional Budget 
and Impoundment Control Act of 1974. 
Sec. 2705. Treatment for PAYGO purposes. 
Sec. 2706. Elimination of the fiscal year 2013 sequestration for defense direct 
spending. 
TITLE I—JOB PROTECTION AND 
RECESSION PREVENTION ACT 
Subtitle A—Job Protection and 
Recession Prevention Act 
SEC. 1101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Job Protection and 
Recession Prevention Act of 2012’’. 
SEC. 1102. PERMANENT EXTENSION OF 2001 AND 2003 TAX 
RELIEF. 
(a) EXTENSION OF 2001 TAX RELIEF.— 
(1) IN GENERAL.—The Economic Growth and 
Tax Relief Reconciliation Act of 2001 is amended by 
striking title IX. 
(2) EFFECTIVE DATE.—The amendments made 
by this section shall take effect as if included in the 
VerDate Mar 15 2010 
02:29 Dec 31, 2012
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
Subtitle B—Pathway to Job Cre-
ation Through a Simpler, Fairer 
Tax Code Act 
SEC. 1201. SHORT TITLE. 
This subtitle may be cited as the ‘‘Pathway to Job 
Creation through a Simpler, Fairer Tax Code Act of 
2012’’. 
SEC. 1202. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that the following 
problems exist with the Internal Revenue Code of 1986 
(in this section referred to as the ‘‘tax code’’): 
(1) The tax code is unfair, containing hundreds 
of provisions that only benefit certain special inter-
ests, resulting in a system of winners and losers. 
(2) The tax code violates the fundamental prin-
ciple of equal justice by subjecting families in similar 
circumstances to significantly different tax bills. 
(3)(A) Many tax preferences, sometimes re-
ferred to as ‘‘tax expenditures’’, are similar to gov-
ernment spending—instead of markets directing eco-
nomic resources to their most efficient uses, the 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Government directs resources to other uses, creating 
a drag on economic growth and job creation. 
(B) The exclusions, deductions, credits, and 
special rules that make up such tax expenditures 
amount to over $1 trillion per year, nearly matching 
the total amount of annual revenue that is generated 
from the income tax itself. 
(C) In some cases, tax subsidies can literally 
take the form of spending through the tax code, re-
distributing taxes paid by some Americans to indi-
viduals and businesses who do not pay any income 
taxes at all. 
(4) The failure to adopt a permanent tax code 
with stable statutory tax policy has created greater 
economic uncertainty. Tax rates have been scheduled 
to increase sharply in 3 of the last 5 years, requiring 
the enactment of repeated temporary extensions. Ad-
ditionally, approximately 70 other, more targeted tax 
provisions expired in 2011 or are currently sched-
uled to expire by the end of 2012. 
(5) Since 2001, there have been nearly 4,500 
changes made to the tax code, averaging more than 
one each day over the past decade. 
(6) The tax code’s complexity leads nearly nine 
out of ten families either to hire tax preparers (60 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
percent) or purchase software (29 percent) to file 
their taxes, while 71 percent of unincorporated busi-
nesses are forced to pay someone else to prepare 
their taxes. 
(7) The cost of complying with the tax code is 
too burdensome, forcing individuals, families, and 
employers to spend over six billion hours and over 
$160 billion per year trying to comply with the law 
and pay the actual tax owed. 
(8) Compliance with the current tax code is a 
financial hardship for employers that falls dispropor-
tionately on small businesses, which spend an aver-
age of $74 per hour on tax-related compliance, mak-
ing it the most expensive paperwork burden they en-
counter. 
(9) Small businesses have been responsible for 
two-thirds of the jobs created in the United States 
over the past 15 years, and approximately half of 
small-business profits are taxed at the current top 2 
individual rates. 
(10) The historic range for tax revenues col-
lected by the Federal government has averaged 18 
to 19 percent of Gross Domestic Product (GDP), 
but will rise to 21.2 percent of GDP under current 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
law—a level never reached, let alone sustained, in 
the Nation’s history. 
(11) The current tax code is highly punitive, 
with a top Federal individual income tax rate of 35 
percent (which is set to climb to over 40 percent in 
2013 when taking into account certain hidden 
rates), meaning some Americans could face a com-
bined local, State and Federal tax rate of 50 per-
cent. 
(12) The tax code contains harmful provisions, 
such as the Alternative Minimum Tax (AMT), which 
was initially designed to affect only the very highest- 
income taxpayers but now threatens more than 30 
million middle-class households because of a flawed 
design. 
(13) As of April 1, 2012, the United States 
achieved the dubious distinction of having the high-
est corporate tax rate (39.2 percent for Federal and 
State combined) in the developed world. 
(14) The United States corporate tax rate is 
more than 50 percent higher than the average rate 
of member states of the Organization for Economic 
Cooperation and Development (OECD)—a factor 
that discourages employers and investors from locat-
ing jobs and investments in the United States. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(15) The United States has become an outlier 
in that it still uses a ‘‘worldwide’’ system of tax-
ation—one that has not been substantially reformed 
in 50 years, when the United States accounted for 
nearly half of global economic output and had no se-
rious competitors around the world. 
(16) The combination of the highest corporate 
tax rate with an antiquated ‘‘worldwide’’ system sub-
jects American companies to double taxation when 
they attempt to compete with foreign companies in 
overseas markets and then reinvest their earnings in 
the United States. 
(17) The Nation’s outdated tax code has con-
tributed to the fact that the world’s largest compa-
nies are more likely to be headquartered overseas 
today than at any point in the last 50 years: In 
1960, 17 of the world’s 20 largest companies were 
based in the United States; by 2010, that number 
sank to a mere six out of 20. 
(18) The United States has one of the highest 
levels of taxation on capital—taxing it once at the 
corporate level and then again at the individual 
level—with integrated tax rates on certain invest-
ment income already reaching roughly 50 percent 
(and scheduled to reach nearly 70 percent in 2013). 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(19) The United States overall taxation of cap-
ital is higher than all but four of the 38 countries 
that make up the OECD and the BRIC (Brazil, 
Russia, India and China). 
(b) PURPOSES.—It is the purpose of this title to pro-
vide for enactment of comprehensive tax reform in 2013 
that— 
(1) protects taxpayers by creating a fairer, sim-
pler, flatter tax code for individuals and families 
by— 
(A) lowering marginal tax rates and broad-
ening the tax base; 
(B) eliminating special interest loopholes; 
(C) reducing complexity in the tax code, 
making tax compliance easier and less costly; 
(D) repealing the Alternative Minimum 
Tax; 
(E) maintaining modern levels of progres-
sivity so as to not overburden any one group or 
further erode the tax base; 
(F) making it easier for Americans to save; 
and 
(G) reducing the tax burdens imposed on 
married couples and families; 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(2) is comprehensive (addressing both indi-
vidual and corporate rates), so as to have the max-
imum economic impact by benefitting employers and 
their employees regardless of how a business is 
structured; 
(3) results in tax revenue consistent with his-
torical norms; 
(4) spurs greater investment, innovation and 
job creation, and therefore increases economic activ-
ity and the size of the economy on a dynamic basis 
as compared to the current tax code; and 
(5) makes American workers and businesses 
more competitive by— 
(A) creating a stable, predictable tax code 
under which families and employers are best 
able to plan for the future; 
(B) keeping taxes on small businesses low; 
(C) reducing America’s corporate tax rate, 
which is currently the highest in the industri-
alized world; 
(D) maintaining a level of parity between 
individual and corporate rates to reduce eco-
nomic distortions; 
(E) promoting innovation in the United 
States; 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(F) transitioning to a globally competitive 
territorial tax system; 
(G) minimizing the double taxation of in-
vestment and capital; and 
(H) reducing the impact of taxes on busi-
ness decision-making to allow such decisions to 
be driven by their economic potential. 
SEC. 1203. EXPEDITED CONSIDERATION OF A MEASURE 
PROVIDING FOR COMPREHENSIVE TAX RE-
FORM. 
(a) DEFINITION.—For purposes of this section, the 
term ‘‘tax reform bill’’ means a bill of the 113th Con-
gress— 
(1) introduced in the House of Representatives 
by the chair of the Committee on Ways and Means 
not later than April 30, 2013, or the first legislative 
day thereafter if the House is not in session on that 
day, the title of which is as follows: ‘‘A bill to pro-
vide for comprehensive tax reform.’’; and 
(2) which is the subject of a certification under 
subsection (b). 
(b) CERTIFICATION.—The chair of the Joint Com-
mittee on Taxation shall notify the House and Senate in 
writing whenever the chair of the Joint Committee deter-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
mines that an introduced bill described in subsection 
(a)(1) contains at least each of the following proposals: 
(1) a consolidation of the current 6 individual 
income tax brackets into not more than two brackets 
of 10 and not more than 25 percent; 
(2) a reduction in the corporate tax rate to not 
greater than 25 percent; 
(3) a repeal of the Alternative Minimum Tax; 
(4) a broadening of the tax base to maintain 
revenue between 18 and 19 percent of the economy; 
and 
(5) a change from a ‘‘worldwide’’ to a ‘‘terri-
torial’’ system of taxation. 
(c) EXPEDITED CONSIDERATION IN THE HOUSE OF 
REPRESENTATIVES.— 
(1) Any committee of the House of Representa-
tives to which the tax reform bill is referred shall re-
port it to the House not later than 20 calendar days 
after the date of its introduction. If a committee 
fails to report the tax reform bill within that period, 
such committee shall be automatically discharged 
from further consideration of the bill. 
(2) If the House has not otherwise proceeded to 
the consideration of the tax reform bill upon the ex-
piration of 15 legislative days after the bill has been 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
placed on the Union Calendar, it shall be in order 
for the majority leader or a designee (or, after the 
expiration of an additional 2 legislative days, any 
Member), to offer one motion that the House resolve 
into the Committee of the Whole House on the state 
of the Union for the consideration of the tax reform 
bill. The previous question shall be considered as or-
dered on the motion to its adoption without inter-
vening motion except 20 minutes of debate equally 
divided and controlled by the proponent and an op-
ponent. If such a motion is adopted, consideration 
shall proceed in accordance with paragraph (3). A 
motion to reconsider the vote by which the motion 
is disposed of shall not be in order. 
(3) The first reading of the bill shall be dis-
pensed with. General debate shall be confined to the 
bill and shall not exceed 4 hours, equally divided and 
controlled by the chair and ranking minority mem-
ber of the Committee on Ways and Means. At the 
conclusion of general debate, the bill shall be read 
for amendment under the five-minute rule. Any com-
mittee amendment shall be considered as read. At 
the conclusion of consideration of the bill for amend-
ment the Committee shall rise and report the bill to 
the House with such amendments as may have been 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
adopted. The previous question shall be considered 
as ordered on the bill and amendments thereto to 
final passage without intervening motion except one 
motion to recommit with or without instructions. A 
motion to reconsider the vote on passage of the bill 
shall not be in order. 
(d) EXPEDITED CONSIDERATION IN THE SENATE.— 
(1) COMMITTEE
CONSIDERATION.—A tax re-
form bill, as defined in subsection (a), received in 
the Senate shall be referred to the Committee on Fi-
nance. The Committee shall report the bill not later 
than 15 calendar days after receipt of the bill in the 
Senate. If the Committee fails to report the bill 
within that period, that committee shall be dis-
charged from consideration of the bill, and the bill 
shall be placed on the calendar. 
(2) MOTION
TO
PROCEED.—Notwithstanding 
rule XXII of the Standing Rules of the Senate, it is 
in order, not later than 2 days of session after the 
date on which the tax reform bill is reported or dis-
charged from committee, for the majority leader of 
the Senate or the majority leader’s designee to move 
to proceed to the consideration of the tax reform 
bill. It shall also be in order for any Member of the 
Senate to move to proceed to the consideration of 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
the tax reform bill at any time after the conclusion 
of such 2-day period. A motion to proceed is in order 
even though a previous motion to the same effect 
has been disagreed to. All points of order against 
the motion to proceed to the tax reform bill are 
waived. The motion to proceed is not debatable. The 
motion is not subject to a motion to postpone. 
(3) CONSIDERATION.—No motion to recommit 
shall be in order and debate on any motion or appeal 
shall be limited to one hour, to be divided in the 
usual form. 
(4) AMENDMENTS.—All amendments must be 
relevant to the bill and debate on any amendment 
shall be limited to 2 hours to be equally divided in 
the usual form between the opponents and pro-
ponents of the amendment. Debate on any amend-
ment to an amendment, debatable motion, or appeal 
shall be limited to 1 hour to be equally divided in 
the usual form between the opponents and pro-
ponents of the amendment. 
(5) VOTE ON PASSAGE.—If the Senate has pro-
ceeded to the bill, and following the conclusion of all 
debate, the Senate shall proceed to a vote on pas-
sage of the bill as amended, if amended. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(e) CONFERENCE IN THE HOUSE.—If the House re-
ceives a message that the Senate has passed the tax re-
form bill with an amendment or amendments, it shall be 
in order for the chair of the Committee on Ways and 
Means or a designee, without intervention of any point of 
order, to offer any motion specified in clause 1 of rule 
XXII. 
(f) CONFERENCE IN THE SENATE.—If the Senate re-
ceives from the House a message to accompany the tax 
reform bill, as defined in subsection (a), then no later than 
two session days after its receipt— 
(1) the Chair shall lay the message before the 
Senate; 
(2) the motion to insist on the Senate amend-
ment or disagree to the House amendment or 
amendments to the Senate amendment, the request 
for a conference with the House or the motion to 
agree to the request of the House for a conference, 
and the motion to authorize the Chair to appoint 
conferees on the part of the Senate shall be agreed 
to; and 
(3) the Chair shall then be authorized to ap-
point conferees on the part of the Senate without in-
tervening motion, with a ratio agreed to with the 
concurrence of both leaders. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(g) RULEMAKING.—This section is enacted by the 
Congress as an exercise of the rulemaking power of the 
House of Representatives and Senate, respectively, and as 
such is deemed a part of the rules of each House, respec-
tively, or of that House to which they specifically apply, 
and such procedures supersede other rules only to the ex-
tent that they are inconsistent with such rules; and with 
full recognition of the constitutional right of either House 
to change the rules (so far as relating to the procedures 
of that House) at any time, in the same manner, and to 
the same extent as any other rule of that House. 
TITLE II—SEQUESTRATION 
REPLACEMENT ACT 
Subtitle A—Agriculture 
SEC. 2101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Agricultural Rec-
onciliation Act of 2012’’. 
SEC. 2102. ARRA SUNSET ON DATE OF ENACTMENT OF THIS 
ACT. 
Section 101(a)(2) of division A of the American Re-
covery and Reinvestment Act of 2009 (Public Law 111– 
5; 123 Stat. 120) is amended by striking ‘‘October 31, 
2013’’ and inserting ‘‘the date of enactment of the Avert-
ing the Fiscal Cliff Act’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
SEC. 2103. CATEGORICAL ELIGIBILITY LIMITED TO CASH 
ASSISTANCE. 
Section 5 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014) is amended— 
(1) in the second sentence of subsection (a) by 
striking ‘‘households in which each member receives 
benefits’’ and inserting ‘‘households in which each 
member receives cash assistance’’, and 
(2) in subsection (j) by striking ‘‘or who re-
ceives benefits under a State program’’ and inserting 
‘‘or who receives cash assistance under a State pro-
gram’’. 
SEC. 2104. STANDARD UTILITY ALLOWANCES BASED ON 
THE RECEIPT OF ENERGY ASSISTANCE PAY-
MENTS. 
(a) STANDARD UTILITY ALLOWANCE.—Section 5 of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended— 
(1) in subsection (e)(6)(C) by striking clause 
(iv), and 
(2) in subsection (k) by striking paragraph (4) 
and inserting the following: 
‘‘(4) THIRD-PARTY ENERGY ASSISTANCE PAY-
MENTS.—For purposes of subsection (d)(1), a pay-
ment made under a State law (other than a law re-
ferred to in paragraph (2)(G)) to provide energy as-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
sistance to a household shall be considered money 
payable directly to the household.’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
2605(f)(2) of the Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8624(f)(2)) is amended— 
(1) by striking ‘‘and for purposes of deter-
mining any excess shelter expense deduction under 
section 5(e) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2014(e))’’, and 
(2) in subparagraph (A) by inserting before the 
semicolon the following: ‘‘, except that such pay-
ments or allowances shall not be deemed to be ex-
pended for purposes of determining any excess shel-
ter expense deduction under section 5(e)(6) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(6))’’. 
SEC. 2105. EMPLOYMENT AND TRAINING; WORKFARE. 
(a) ADMINISTRATIVE COST-SHARING FOR EMPLOY-
MENT AND TRAINING PROGRAMS.— 
(1) IN GENERAL.—Section 16 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025) is amend-
ed— 
(A) in subsection (a) by inserting ‘‘(other 
than a program carried out under section 
6(d)(4) or section 20)’’ after ‘‘supplemental nu-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
trition assistance program’’ the first place it ap-
pears, and 
(B) in subsection (h)— 
(i) by striking paragraphs (2) and (3), 
and 
(ii) by redesignating paragraphs (4) 
and (5) as paragraphs (2) and (3), respec-
tively. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 17(b)(1)(B)(iv)(III)(hh) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2026(b)(1)(B)(iv)(III)(hh)) 
is 
amended 
by 
striking ‘‘(g), (h)(2), or (h)(3)’’ and inserting 
‘‘or (g)’’. 
(B) Section 22(d)(1)(B)(ii) of the Food 
and 
Nutrition 
Act 
of 
2008 
(7 
U.S.C. 
2031(d)(1)(B)(ii)) is amended is amended by 
striking ‘‘, (g), (h)(2), and (h)(3)’’ and insert-
ing ‘‘and (g)’’. 
(b) ADMINISTRATIVE COST-SHARING
AND REIM-
BURSEMENTS FOR WORKFARE.—Section 20 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2029) is amended 
by striking subsection (g). 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
SEC. 2106. END STATE BONUS PROGRAM FOR THE SUPPLE-
MENTAL NUTRITION ASSISTANCE PROGRAM. 
Section 16 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2025) is amended by striking subsection (d). 
SEC. 2107. FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS. 
For purposes of fiscal year 2013, the reference to 
$90,000,000 in section 16(h)(1)(A) of the Food and Nu-
trition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) shall be 
deemed to be a reference to $79,000,000. 
SEC. 2108. TURN OFF INDEXING FOR NUTRITION EDU-
CATION AND OBESITY PREVENTION. 
Section 28(d) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2037(d)) is amended by striking ‘‘years—’’ and 
all that follows through the period at the end, and insert-
ing ‘‘years, $375,000,000.’’. 
SEC. 2109. EXTENSION OF AUTHORIZATION OF FOOD AND 
NUTRITION ACT OF 2008. 
Section 18(a)(1) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2027(a)(1)) is amended by striking 
‘‘2012’’ and inserting ‘‘2013’’. 
SEC. 
2110. 
EFFECTIVE 
DATES 
AND 
APPLICATION 
OF 
AMENDMENTS. 
(a) GENERAL EFFECTIVE DATE.—Except as pro-
vided in subsection (b), this title and the amendments 
made by this title shall take effect on the date of enact-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
ment of this Act, and shall apply only with respect to cer-
tification periods that begin on or after such date. 
(b) SPECIAL EFFECTIVE DATE.—Section 2107 and 
the amendments made by sections 2102, 2103, 2104, and 
2109 shall take effect on the date of the enactment of 
this Act and shall apply only with respect to certification 
periods that begin on or after such date. 
Subtitle B—Committee on Energy 
and Commerce 
CHAPTER 1—REPEAL OF CERTAIN ACA 
FUNDING PROVISIONS 
SEC. 2201. REPEALING MANDATORY FUNDING TO STATES 
TO ESTABLISH AMERICAN HEALTH BENEFIT 
EXCHANGES. 
(a) IN GENERAL.—Section 1311(a) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18031(a)) 
is repealed. 
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 
funds made available under such section 1311(a), the un-
obligated balance is rescinded. 
SEC. 2202. REPEALING PREVENTION AND PUBLIC HEALTH 
FUND. 
(a) IN GENERAL.—Section 4002 of the Patient Pro-
tection and Affordable Care Act (42 U.S.C. 300u–11) is 
repealed. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 
funds made available by such section 4002, the unobli-
gated balance is rescinded. 
SEC. 2203. RESCINDING UNOBLIGATED BALANCES FOR CO- 
OP PROGRAM. 
Of the funds made available under section 1322(g) 
of the Patient Protection and Affordable Care Act (42 
U.S.C. 18042(g)), the unobligated balance is rescinded. 
CHAPTER 2—MEDICAID 
SEC. 2211. REVISION OF PROVIDER TAX INDIRECT GUAR-
ANTEE THRESHOLD. 
Section 1903(w)(4)(C)(ii) of the Social Security Act 
(42 U.S.C. 1396b(w)(4)(C)(ii)) is amended by inserting 
‘‘and for portions of fiscal years beginning on or after Oc-
tober 1, 2012,’’ after ‘‘October 1, 2011,’’. 
SEC. 2212. REBASING OF STATE DSH ALLOTMENTS FOR FIS-
CAL YEAR 2022. 
Section 1923(f) of the Social Security Act (42 U.S.C. 
1396r–4(f)) is amended— 
(1) by redesignating paragraph (9) as para-
graph (10); 
(2) in paragraph (3)(A) by striking ‘‘para-
graphs (6), (7), and (8)’’ and inserting ‘‘paragraphs 
(6), (7), (8), and (9)’’; and 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(3) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) REBASING OF STATE DSH ALLOTMENTS 
FOR
FISCAL
YEAR
2022.—With respect to fiscal 
2022, for purposes of applying paragraph (3)(A) to 
determine the DSH allotment for a State, the 
amount of the DSH allotment for the State under 
paragraph (3) for fiscal year 2021 shall be treated 
as if it were such amount as reduced under para-
graph (7).’’. 
SEC. 2213. REPEAL OF MEDICAID AND CHIP MAINTENANCE 
OF EFFORT REQUIREMENTS UNDER PPACA. 
(a) REPEAL OF PPACA MEDICAID MOE.—Section 
1902 of the Social Security Act (42 U.S.C. 1396a) is 
amended by striking subsection (gg). 
(b) REPEAL
OF
PPACA CHIP MOE.—Section 
2105(d)(3) of the Social Security Act (42 U.S.C. 
1397ee(d)(3)) is amended— 
(1) by striking subparagraph (A); 
(2) by redesignating subparagraphs (B) and 
(C) as subparagraphs (A) and (B), respectively; and 
(3) in the paragraph heading, by striking 
‘‘CONTINUATION
OF
ELIGIBILITY
STANDARDS
FOR 
CHILDREN UNTIL OCTOBER 1, 2019’’ and inserting 
‘‘CONTINUITY OF COVERAGE’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(c) CONFORMING AMENDMENTS.— 
(1) Section 1902(a) of the Social Security Act 
(42 U.S.C. 1396a(a)) is amended by striking para-
graph (74). 
(2) Effective January 1, 2014, paragraph (14) 
of section 1902(e) (as added by section 2002(a) of 
Public Law 111–148) is amended by striking the 
third sentence of subparagraph (A). 
(d) EFFECTIVE DATE.—Except as provided in sub-
section (c)(2), the amendments made by this section shall 
take effect on the date of the enactment of this section. 
SEC. 2214. MEDICAID PAYMENTS TO TERRITORIES. 
(a) LIMIT ON PAYMENTS.—Section 1108(g) of the 
Social Security Act (42 U.S.C. 1308(g)) is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘paragraphs (3) and (5)’’; 
and 
(B) by inserting ‘‘paragraph (3)’’ after 
‘‘and subject to’’; 
(2) in paragraph (4), by striking ‘‘(3), and’’ 
and all that follows through ‘‘of this subsection’’ and 
inserting ‘‘and (3) of this subsection’’; and 
(3) by striking paragraph (5). 
(b) FMAP.—The first sentence of section 1905(b) of 
the Social Security Act (42 U.S.C. 1396d(b)) is amended 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
by striking ‘‘shall be 55 percent’’ and inserting ‘‘shall be 
50 percent’’. 
SEC. 2215. REPEALING BONUS PAYMENTS FOR ENROLL-
MENT UNDER MEDICAID AND CHIP. 
(a) IN GENERAL.—Paragraphs (3) and (4) of section 
2105(a) of the Social Security Act (42 U.S.C. 1397ee(a)) 
are repealed. 
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 
funds made available by section 2105(a)(3) of the Social 
Security Act, the unobligated balance is rescinded. 
(c) CONFORMING CHANGES.— 
(1) AVAILABILITY OF EXCESS FUNDS FOR PER-
FORMANCE
BONUSES.—Section 2104(n)(2) of the 
Social Security Act (42 U.S.C. 1397dd(n)(2)) is 
amended by striking subparagraph (D). 
(2) OUTREACH OR COVERAGE BENCHMARKS.— 
Section 2111(b)(3) of the Social Security Act (42 
U.S.C. 1397kk(b)(3)) is amended— 
(A) in subparagraph (A)— 
(i) in clause (i), by inserting ‘‘or’’ 
after the semicolon at the end; and 
(ii) by striking clause (ii); and 
(B) by striking subparagraph (C). 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Subtitle C—Financial Services 
SEC. 2301. TABLE OF CONTENTS. 
The table of contents for this subtitle is as follows: 
Sec. 2301. Table of contents. 
CHAPTER 1—ORDERLY LIQUIDATION FUND 
Sec. 2311. Repeal of liquidation authority. 
CHAPTER 2—HOME AFFORDABLE MODIFICATION PROGRAM 
Sec. 2321. Short title. 
Sec. 2322. Congressional findings. 
Sec. 2323. Termination of authority. 
Sec. 2324. Sense of Congress. 
CHAPTER 3—BUREAU OF CONSUMER FINANCIAL PROTECTION 
Sec. 2331. Bringing the Bureau of Consumer Financial Protection into the reg-
ular appropriations process. 
CHAPTER 4—REPEAL OF THE OFFICE OF FINANCIAL RESEARCH 
Sec. 2341. Repeal of the Office of Financial Research. 
CHAPTER 1—ORDERLY LIQUIDATION 
FUND 
SEC. 2311. REPEAL OF LIQUIDATION AUTHORITY. 
(a) IN GENERAL.—Title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby re-
pealed and any Federal law amended by such title shall, 
on and after the date of enactment of this Act, be effective 
as if title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act had not been enacted. 
(b) CONFORMING AMENDMENTS.— 
(1) DODD-FRANK WALL STREET REFORM AND 
CONSUMER
PROTECTION
ACT.—The Dodd-Frank 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Wall Street Reform and Consumer Protection Act is 
amended— 
(A) in the table of contents for such Act, 
by striking all items relating to title II; 
(B) in section 165(d)(6), by striking ‘‘, a 
receiver appointed under title II,’’; 
(C) in section 716(g), by striking ‘‘or a 
covered financial company under title II’’; 
(D) in section 1105(e)(5), by striking 
‘‘amount of any securities issued under that 
chapter 31 for such purpose shall be treated in 
the same manner as securities issued under sec-
tion 208(n)(5)(E)’’ and inserting ‘‘issuances of 
such securities under that chapter 31 for such 
purpose shall by treated as public debt trans-
actions of the United States, and the proceeds 
from the sale of any obligations acquired by the 
Secretary under this paragraph shall be depos-
ited into the Treasury of the United States as 
miscellaneous receipts’’; and 
(E) in section 1106(c)(2), by amending 
subparagraph (A) to read as follows: 
‘‘(A) require the company to file a petition 
for bankruptcy under section 301 of title 11, 
United States Code; or’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(2) FEDERAL DEPOSIT INSURANCE ACT.—Sec-
tion 10(b)(3) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(b)(3)) is amended by striking ‘‘, or 
of such nonbank financial company supervised by 
the Board of Governors or bank holding company 
described in section 165(a) of the Financial Stability 
Act of 2010, for the purpose of implementing its au-
thority to provide for orderly liquidation of any such 
company under title II of that Act’’. 
(3) FEDERAL RESERVE ACT.—Section 13(3) of 
the Federal Reserve Act is amended— 
(A) in subparagraph (B)— 
(i) in clause (ii), by striking ‘‘, resolu-
tion under title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection 
Act, or’’ and inserting ‘‘or is subject to 
resolution under’’; and 
(ii) in clause (iii), by striking ‘‘, reso-
lution under title II of the Dodd-Frank 
Wall Street Reform and Consumer Protec-
tion Act, or’’ and inserting ‘‘or resolution 
under’’; and 
(B) by striking subparagraph (E). 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
CHAPTER 2—HOME AFFORDABLE 
MODIFICATION PROGRAM 
SEC. 2321. SHORT TITLE. 
This chapter may be cited as the ‘‘HAMP Termi-
nation Act of 2012’’. 
SEC. 2322. CONGRESSIONAL FINDINGS. 
The Congress finds the following: 
(1) According to the Department of the Treas-
ury— 
(A) the Home Affordable Modification Pro-
gram (HAMP) is designed to ‘‘help as many as 
3 to 4 million financially struggling homeowners 
avoid foreclosure by modifying loans to a level 
that is affordable for borrowers now and sus-
tainable over the long term’’; and 
(B) as of February 2012, only 782,609 ac-
tive permanent mortgage modifications were 
made under HAMP. 
(2) Many homeowners whose HAMP modifica-
tions were canceled suffered because they made fu-
tile payments and some of those homeowners were 
even forced into foreclosure. 
(3) The Special Inspector General for TARP 
reported that HAMP ‘‘benefits only a small portion 
of distressed homeowners, offers others little more 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
than false hope, and in certain cases causes more 
harm than good’’. 
(4) Approximately $30 billion was obligated by 
the Department of the Treasury to HAMP, however, 
approximately only $2.54 billion has been disbursed. 
(5) Terminating HAMP would save American 
taxpayers approximately $2.84 billion, according to 
the Congressional Budget Office. 
SEC. 2323. TERMINATION OF AUTHORITY. 
Section 120 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5230) is amended by adding at 
the end the following new subsection: 
‘‘(c) TERMINATION
OF AUTHORITY TO PROVIDE 
NEW ASSISTANCE UNDER
THE HOME AFFORDABLE 
MODIFICATION PROGRAM.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2), after the date of the enactment of 
this subsection the Secretary may not provide any 
assistance under the Home Affordable Modification 
Program under the Making Home Affordable initia-
tive of the Secretary, authorized under this Act, on 
behalf of any homeowner. 
‘‘(2) PROTECTION OF EXISTING OBLIGATIONS 
ON BEHALF OF HOMEOWNERS ALREADY EXTENDED 
AN
OFFER
TO
PARTICIPATE
IN
THE
PROGRAM.— 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Paragraph (1) shall not apply with respect to assist-
ance provided on behalf of a homeowner who, before 
the date of the enactment of this subsection, was ex-
tended an offer to participate in the Home Afford-
able Modification Program on a trial or permanent 
basis. 
‘‘(3) DEFICIT REDUCTION.— 
‘‘(A) USE OF UNOBLIGATED FUNDS.—Not-
withstanding any other provision of this title, 
the amounts described in subparagraph (B) 
shall not be available after the date of the en-
actment of this subsection for obligation or ex-
penditure under the Home Affordable Modifica-
tion Program of the Secretary, but should be 
covered into the General Fund of the Treasury 
and should be used only for reducing the budg-
et deficit of the Federal Government. 
‘‘(B) IDENTIFICATION
OF
UNOBLIGATED 
FUNDS.—The amounts described in this sub-
paragraph are any amounts made available 
under title I of the Emergency Economic Sta-
bilization Act of 2008 that— 
‘‘(i) have been allocated for use, but 
not yet obligated as of the date of the en-
actment of this subsection, under the 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Home Affordable Modification Program of 
the Secretary; and 
‘‘(ii) are not necessary for providing 
assistance under such Program on behalf 
of homeowners who, pursuant to para-
graph (2), may be provided assistance 
after the date of the enactment of this sub-
section. 
‘‘(4) STUDY OF USE OF PROGRAM BY MEMBERS 
OF
THE
ARMED
FORCES, VETERANS, AND
GOLD 
STAR RECIPIENTS.— 
‘‘(A) STUDY.—The Secretary shall conduct 
a study to determine the extent of usage of the 
Home Affordable Modification Program by, and 
the impact of such Program on, covered home-
owners. 
‘‘(B) REPORT.—Not later than the expira-
tion of the 90-day period beginning on the date 
of the enactment of this subsection, the Sec-
retary shall submit to the Congress a report 
setting forth the results of the study under sub-
paragraph (A) and identifying best practices, 
derived from studying the Home Affordable 
Modification Program, that could be applied to 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
existing mortgage assistance programs available 
to covered homeowners. 
‘‘(C) COVERED
HOMEOWNER.—For pur-
poses of this subsection, the term ‘covered 
homeowner’ means a homeowner who is— 
‘‘(i) a member of the Armed Forces of 
the United States on active duty or the 
spouse or parent of such a member; 
‘‘(ii) a veteran, as such term is de-
fined in section 101 of title 38, United 
States Code; or 
‘‘(iii) eligible to receive a Gold Star 
lapel pin under section 1126 of title 10, 
United States Code, as a widow, parent, or 
next of kin of a member of the Armed 
Forces person who died in a manner de-
scribed in subsection (a) of such section. 
‘‘(5) PUBLICATION OF MEMBER AVAILABILITY 
FOR ASSISTANCE.—Not later than 5 days after the 
date of the enactment of this subsection, the Sec-
retary of the Treasury shall publish to its Website 
on the World Wide Web in a prominent location, 
large point font, and boldface type the following 
statement: ‘The Home Affordable Modification Pro-
gram (HAMP) has been terminated. If you are hav-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
ing trouble paying your mortgage and need help con-
tacting your lender or servicer for purposes of nego-
tiating or acquiring a loan modification, please con-
tact your Member of Congress to assist you in con-
tacting your lender or servicer for the purpose of ne-
gotiating or acquiring a loan modification.’. 
‘‘(6) NOTIFICATION TO HAMP APPLICANTS RE-
QUIRED.—Not later than 30 days after the date of 
the enactment of this subsection, the Secretary of 
the Treasury shall inform each individual who ap-
plied for the Home Affordable Modification Program 
and will not be considered for a modification under 
such Program due to termination of such Program 
under this subsection— 
‘‘(A) that such Program has been termi-
nated; 
‘‘(B) that loan modifications under such 
Program are no longer available; 
‘‘(C) of the name and contact information 
of such individual’s Member of Congress; and 
‘‘(D) that the individual should contact his 
or her Member of Congress to assist the indi-
vidual in contacting the individual’s lender or 
servicer for the purpose of negotiating or ac-
quiring a loan modification.’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
SEC. 2324. SENSE OF CONGRESS. 
The Congress encourages banks to work with home-
owners to provide loan modifications to those that are eli-
gible. The Congress also encourages banks to work and 
assist homeowners and prospective homeowners with fore-
closure prevention programs and information on loan 
modifications. 
CHAPTER 3—BUREAU OF CONSUMER 
FINANCIAL PROTECTION 
SEC. 2331. BRINGING THE BUREAU OF CONSUMER FINAN-
CIAL PROTECTION INTO THE REGULAR AP-
PROPRIATIONS PROCESS. 
Section 1017 of the Consumer Financial Protection 
Act of 2010 is amended— 
(1) in subsection (a)— 
(A) by amending the heading of such sub-
section to read as follows: ‘‘BUDGET, FINAN-
CIAL MANAGEMENT, AND AUDIT.—’’; 
(B) by striking paragraphs (1), (2), and 
(3); 
(C) by redesignating paragraphs (4) and 
(5) as paragraphs (1) and (2), respectively; and 
(D) by striking subparagraphs (E) and (F) 
of paragraph (1), as so redesignated; 
(2) by striking subsections (b), (c), and (d); 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(3) by redesignating subsection (e) as sub-
section (b); and 
(4) in subsection (b), as so redesignated— 
(A) by striking paragraphs (1), (2), and 
(3) and inserting the following: 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There 
is 
authorized 
to 
be 
appropriated 
$200,000,000 to carry out this title for each of fiscal 
years 2012 and 2013.’’; and 
(B) by redesignating paragraph (4) as 
paragraph (2). 
CHAPTER 4—REPEAL OF THE OFFICE OF 
FINANCIAL RESEARCH 
SEC. 2341. REPEAL OF THE OFFICE OF FINANCIAL RE-
SEARCH. 
(a) IN GENERAL.—Subtitle B of title I of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
is hereby repealed. 
(b) CONFORMING AMENDMENTS
TO
THE DODD- 
FRANK ACT.—The Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended— 
(1) in section 102(a), by striking paragraph 
(5); 
(2) in section 111— 
(A) in subsection (b)(2)— 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(i) by striking subparagraph (A); and 
(ii) by redesignating subparagraphs 
(B), (C), (D), and (E) as subparagraphs 
(A), (B), (C), and (D), respectively; 
(B) in subsection (c)(1), by striking ‘‘sub-
paragraphs (C), (D), and (E)’’ and inserting 
‘‘subparagraphs (B), (C), and (D)’’; 
(3) in section 112— 
(A) in subsection (a)(2)— 
(i) in subparagraph (A), by striking 
‘‘direct the Office of Financial Research 
to’’; 
(ii) by striking subparagraph (B); and 
(iii) by redesignating subparagraphs 
(C), (D), (E), (F), (G), (H), (I), (J), (K), 
(L), (M), and (N) as subparagraphs (B), 
(C), (D), (E), (F), (G), (H), (I), (J), (K), 
(L), and (M), respectively; and 
(B) in subsection (d)— 
(i) in paragraph (1), by striking ‘‘the 
Office of Financial Research, member 
agencies, and’’ and inserting ‘‘member 
agencies and’’; 
(ii) in paragraph (2), by striking ‘‘the 
Office of Financial Research, any member 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
agency, and’’ and inserting ‘‘any member 
agency and’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘, acting through 
the Office of Financial Research,’’ 
each place it appears; and 
(II) in subparagraph (B), by 
striking ‘‘the Office of Financial Re-
search or’’; and 
(iv) in paragraph (5)(A), by striking 
‘‘, the Office of Financial Research,’’; 
(4) in section 116, by striking ‘‘, acting through 
the Office of Financial Research,’’ each place it ap-
pears; and 
(5) by striking section 118. 
(c) CONFORMING AMENDMENT TO THE PAPERWORK 
REDUCTION ACT.—Effective as of the date specified in 
section 1100H of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, section 1100D(a) of such Act 
is amended to read as follows: 
‘‘(a) DESIGNATION AS AN INDEPENDENT AGENCY.— 
Section 3502(5) of subchapter I of chapter 35 of title 44, 
United States Code (commonly known as the Paperwork 
Reduction Act) is amended by inserting ‘the Bureau of 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
Consumer Financial Protection,’ after ‘the Securities and 
Exchange Commission,’.’’. 
(d) TECHNICAL AMENDMENTS.—The table of con-
tents for the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act is amended— 
(1) by striking the item relating to section 118; 
and 
(2) by striking the items relating to subtitle B 
of title I. 
Subtitle D—Committee on the 
Judiciary 
SEC. 2401. SHORT TITLE. 
This title may be cited as the ‘‘Help Efficient, Acces-
sible, Low-cost, Timely Healthcare (HEALTH) Act of 
2012’’. 
SEC. 
2402. 
ENCOURAGING 
SPEEDY 
RESOLUTION 
OF 
CLAIMS. 
The time for the commencement of a health care law-
suit shall be 3 years after the date of manifestation of 
injury or 1 year after the claimant discovers, or through 
the use of reasonable diligence should have discovered, the 
injury, whichever occurs first. In no event shall the time 
for commencement of a health care lawsuit exceed 3 years 
after the date of manifestation of injury unless tolled for 
any of the following— 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(1) upon proof of fraud; 
(2) intentional concealment; or 
(3) the presence of a foreign body, which has no 
therapeutic or diagnostic purpose or effect, in the 
person of the injured person. 
Actions by a minor shall be commenced within 3 years 
from the date of the alleged manifestation of injury except 
that actions by a minor under the full age of 6 years shall 
be commenced within 3 years of manifestation of injury 
or prior to the minor’s 8th birthday, whichever provides 
a longer period. Such time limitation shall be tolled for 
minors for any period during which a parent or guardian 
and a health care provider or health care organization 
have committed fraud or collusion in the failure to bring 
an action on behalf of the injured minor. 
SEC. 2403. COMPENSATING PATIENT INJURY. 
(a) UNLIMITED AMOUNT OF DAMAGES FOR ACTUAL 
ECONOMIC LOSSES IN HEALTH CARE LAWSUITS.—In any 
health care lawsuit, nothing in this title shall limit a claim-
ant’s recovery of the full amount of the available economic 
damages, notwithstanding the limitation in subsection (b). 
(b) ADDITIONAL NONECONOMIC DAMAGES.—In any 
health care lawsuit, the amount of noneconomic damages, 
if available, may be as much as $250,000, regardless of 
the number of parties against whom the action is brought 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
or the number of separate claims or actions brought with 
respect to the same injury. 
(c) NO DISCOUNT OF AWARD FOR NONECONOMIC 
DAMAGES.—For purposes of applying the limitation in 
subsection (b), future noneconomic damages shall not be 
discounted to present value. The jury shall not be in-
formed about the maximum award for noneconomic dam-
ages. An award for noneconomic damages in excess of 
$250,000 shall be reduced either before the entry of judg-
ment, or by amendment of the judgment after entry of 
judgment, and such reduction shall be made before ac-
counting for any other reduction in damages required by 
law. If separate awards are rendered for past and future 
noneconomic damages and the combined awards exceed 
$250,000, the future noneconomic damages shall be re-
duced first. 
(d) FAIR SHARE RULE.—In any health care lawsuit, 
each party shall be liable for that party’s several share 
of any damages only and not for the share of any other 
person. Each party shall be liable only for the amount of 
damages allocated to such party in direct proportion to 
such party’s percentage of responsibility. Whenever a 
judgment of liability is rendered as to any party, a sepa-
rate judgment shall be rendered against each such party 
for the amount allocated to such party. For purposes of 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
this section, the trier of fact shall determine the propor-
tion of responsibility of each party for the claimant’s 
harm. 
SEC. 2404. MAXIMIZING PATIENT RECOVERY. 
(a) COURT SUPERVISION OF SHARE OF DAMAGES 
ACTUALLY PAID TO CLAIMANTS.—In any health care law-
suit, the court shall supervise the arrangements for pay-
ment of damages to protect against conflicts of interest 
that may have the effect of reducing the amount of dam-
ages awarded that are actually paid to claimants. In par-
ticular, in any health care lawsuit in which the attorney 
for a party claims a financial stake in the outcome by vir-
tue of a contingent fee, the court shall have the power 
to restrict the payment of a claimant’s damage recovery 
to such attorney, and to redirect such damages to the 
claimant based upon the interests of justice and principles 
of equity. In no event shall the total of all contingent fees 
for representing all claimants in a health care lawsuit ex-
ceed the following limits: 
(1) Forty percent of the first $50,000 recovered 
by the claimant(s). 
(2) Thirty-three and one-third percent of the 
next $50,000 recovered by the claimant(s). 
(3) Twenty-five percent of the next $500,000 
recovered by the claimant(s). 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(4) Fifteen percent of any amount by which the 
recovery by the claimant(s) is in excess of $600,000. 
(b) APPLICABILITY.—The limitations in this section 
shall apply whether the recovery is by judgment, settle-
ment, mediation, arbitration, or any other form of alter-
native dispute resolution. In a health care lawsuit involv-
ing a minor or incompetent person, a court retains the 
authority to authorize or approve a fee that is less than 
the maximum permitted under this section. The require-
ment for court supervision in the first two sentences of 
subsection (a) applies only in civil actions. 
SEC. 2405. PUNITIVE DAMAGES. 
(a) IN GENERAL.—Punitive damages may, if other-
wise permitted by applicable State or Federal law, be 
awarded against any person in a health care lawsuit only 
if it is proven by clear and convincing evidence that such 
person acted with malicious intent to injure the claimant, 
or that such person deliberately failed to avoid unneces-
sary injury that such person knew the claimant was sub-
stantially certain to suffer. In any health care lawsuit 
where no judgment for compensatory damages is rendered 
against such person, no punitive damages may be awarded 
with respect to the claim in such lawsuit. No demand for 
punitive damages shall be included in a health care lawsuit 
as initially filed. A court may allow a claimant to file an 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
amended pleading for punitive damages only upon a mo-
tion by the claimant and after a finding by the court, upon 
review of supporting and opposing affidavits or after a 
hearing, after weighing the evidence, that the claimant has 
established by a substantial probability that the claimant 
will prevail on the claim for punitive damages. At the re-
quest of any party in a health care lawsuit, the trier of 
fact shall consider in a separate proceeding— 
(1) whether punitive damages are to be award-
ed and the amount of such award; and 
(2) the amount of punitive damages following a 
determination of punitive liability. 
If a separate proceeding is requested, evidence relevant 
only to the claim for punitive damages, as determined by 
applicable State law, shall be inadmissible in any pro-
ceeding to determine whether compensatory damages are 
to be awarded. 
(b) DETERMINING AMOUNT
OF PUNITIVE DAM-
AGES.— 
(1) FACTORS
CONSIDERED.—In determining 
the amount of punitive damages, if awarded, in a 
health care lawsuit, the trier of fact shall consider 
only the following— 
(A) the severity of the harm caused by the 
conduct of such party; 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(B) the duration of the conduct or any 
concealment of it by such party; 
(C) the profitability of the conduct to such 
party; 
(D) the number of products sold or med-
ical procedures rendered for compensation, as 
the case may be, by such party, of the kind 
causing the harm complained of by the claim-
ant; 
(E) any criminal penalties imposed on such 
party, as a result of the conduct complained of 
by the claimant; and 
(F) the amount of any civil fines assessed 
against such party as a result of the conduct 
complained of by the claimant. 
(2) MAXIMUM AWARD.—The amount of punitive 
damages, if awarded, in a health care lawsuit may 
be as much as $250,000 or as much as two times 
the amount of economic damages awarded, which-
ever is greater. The jury shall not be informed of 
this limitation. 
(c) NO PUNITIVE DAMAGES FOR PRODUCTS THAT 
COMPLY WITH FDA STANDARDS.— 
(1) IN GENERAL.— 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(A) No punitive damages may be awarded 
against the manufacturer or distributor of a 
medical product, or a supplier of any compo-
nent or raw material of such medical product, 
based on a claim that such product caused the 
claimant’s harm where— 
(i)(I) such medical product was sub-
ject to premarket approval, clearance, or li-
censure by the Food and Drug Administra-
tion with respect to the safety of the for-
mulation or performance of the aspect of 
such medical product which caused the 
claimant’s harm or the adequacy of the 
packaging or labeling of such medical 
product; and 
(II) such medical product was so ap-
proved, cleared, or licensed; or 
(ii) such medical product is generally 
recognized among qualified experts as safe 
and effective pursuant to conditions estab-
lished by the Food and Drug Administra-
tion and applicable Food and Drug Admin-
istration regulations, including without 
limitation those related to packaging and 
labeling, unless the Food and Drug Admin-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
istration has determined that such medical 
product was not manufactured or distrib-
uted in substantial compliance with appli-
cable Food and Drug Administration stat-
utes and regulations. 
(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) may not be construed as establishing 
the obligation of the Food and Drug Adminis-
tration to demonstrate affirmatively that a 
manufacturer, distributor, or supplier referred 
to in such subparagraph meets any of the con-
ditions described in such subparagraph. 
(2) LIABILITY OF HEALTH CARE PROVIDERS.— 
A health care provider who prescribes, or who dis-
penses pursuant to a prescription, a medical product 
approved, licensed, or cleared by the Food and Drug 
Administration shall not be named as a party to a 
product liability lawsuit involving such product and 
shall not be liable to a claimant in a class action 
lawsuit against the manufacturer, distributor, or 
seller of such product. Nothing in this paragraph 
prevents a court from consolidating cases involving 
health care providers and cases involving products li-
ability claims against the manufacturer, distributor, 
or product seller of such medical product. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(3) PACKAGING.—In a health care lawsuit for 
harm which is alleged to relate to the adequacy of 
the packaging or labeling of a drug which is required 
to have tamper-resistant packaging under regula-
tions of the Secretary of Health and Human Serv-
ices (including labeling regulations related to such 
packaging), the manufacturer or product seller of 
the drug shall not be held liable for punitive dam-
ages unless such packaging or labeling is found by 
the trier of fact by clear and convincing evidence to 
be substantially out of compliance with such regula-
tions. 
(4) EXCEPTION.—Paragraph (1) shall not 
apply in any health care lawsuit in which— 
(A) a person, before or after premarket ap-
proval, clearance, or licensure of such medical 
product, knowingly misrepresented to or with-
held from the Food and Drug Administration 
information that is required to be submitted 
under the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 301 et seq.) or section 351 of 
the Public Health Service Act (42 U.S.C. 262) 
that is material and is causally related to the 
harm which the claimant allegedly suffered; 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(B) a person made an illegal payment to 
an official of the Food and Drug Administra-
tion for the purpose of either securing or main-
taining approval, clearance, or licensure of such 
medical product; or 
(C) the defendant caused the medical prod-
uct which caused the claimant’s harm to be 
misbranded or adulterated (as such terms are 
used in chapter V of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 351 et seq.)). 
SEC. 2406. AUTHORIZATION OF PAYMENT OF FUTURE DAM-
AGES TO CLAIMANTS IN HEALTH CARE LAW-
SUITS. 
(a) IN GENERAL.—In any health care lawsuit, if an 
award of future damages, without reduction to present 
value, equaling or exceeding $50,000 is made against a 
party with sufficient insurance or other assets to fund a 
periodic payment of such a judgment, the court shall, at 
the request of any party, enter a judgment ordering that 
the future damages be paid by periodic payments, in ac-
cordance with the Uniform Periodic Payment of Judg-
ments Act promulgated by the National Conference of 
Commissioners on Uniform State Laws. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(b) APPLICABILITY.—This section applies to all ac-
tions which have not been first set for trial or retrial be-
fore the effective date of this title. 
SEC. 2407. DEFINITIONS. 
In this title: 
(1) ALTERNATIVE DISPUTE RESOLUTION SYS-
TEM; ADR.—The term ‘‘alternative dispute resolution 
system’’ or ‘‘ADR’’ means a system that provides 
for the resolution of health care lawsuits in a man-
ner other than through a civil action brought in a 
State or Federal court. 
(2) CLAIMANT.—The term ‘‘claimant’’ means 
any person who brings a health care lawsuit, includ-
ing a person who asserts or claims a right to legal 
or equitable contribution, indemnity, or subrogation, 
arising out of a health care liability claim or action, 
and any person on whose behalf such a claim is as-
serted or such an action is brought, whether de-
ceased, incompetent, or a minor. 
(3) 
COMPENSATORY
DAMAGES.—The 
term 
‘‘compensatory 
damages’’ 
means 
objectively 
verifiable monetary losses incurred as a result of the 
provision of, use of, or payment for (or failure to 
provide, use, or pay for) health care services or med-
ical products, such as past and future medical ex-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
penses, loss of past and future earnings, cost of ob-
taining domestic services, loss of employment, and 
loss of business or employment opportunities, dam-
ages for physical and emotional pain, suffering, in-
convenience, physical impairment, mental anguish, 
disfigurement, loss of enjoyment of life, loss of soci-
ety and companionship, loss of consortium (other 
than loss of domestic service), hedonic damages, in-
jury to reputation, and all other nonpecuniary losses 
of any kind or nature. The term ‘‘compensatory 
damages’’ includes economic damages and non-
economic damages, as such terms are defined in this 
section. 
(4) CONTINGENT FEE.—The term ‘‘contingent 
fee’’ includes all compensation to any person or per-
sons which is payable only if a recovery is effected 
on behalf of one or more claimants. 
(5) ECONOMIC DAMAGES.—The term ‘‘economic 
damages’’ means objectively verifiable monetary 
losses incurred as a result of the provision of, use 
of, or payment for (or failure to provide, use, or pay 
for) health care services or medical products, such as 
past and future medical expenses, loss of past and 
future earnings, cost of obtaining domestic services, 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
loss of employment, and loss of business or employ-
ment opportunities. 
(6) 
HEALTH
CARE
LAWSUIT.—The 
term 
‘‘health care lawsuit’’ means any health care liability 
claim concerning the provision of health care goods 
or services or any medical product affecting inter-
state commerce, or any health care liability action 
concerning the provision of health care goods or 
services or any medical product affecting interstate 
commerce, brought in a State or Federal court or 
pursuant to an alternative dispute resolution system, 
against a health care provider, a health care organi-
zation, or the manufacturer, distributor, supplier, 
marketer, promoter, or seller of a medical product, 
regardless of the theory of liability on which the 
claim is based, or the number of claimants, plain-
tiffs, defendants, or other parties, or the number of 
claims or causes of action, in which the claimant al-
leges a health care liability claim. Such term does 
not include a claim or action which is based on 
criminal liability; which seeks civil fines or penalties 
paid to Federal, State, or local government; or which 
is grounded in antitrust. 
(7) HEALTH
CARE
LIABILITY
ACTION.—The 
term ‘‘health care liability action’’ means a civil ac-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
tion brought in a State or Federal court or pursuant 
to an alternative dispute resolution system, against 
a health care provider, a health care organization, or 
the manufacturer, distributor, supplier, marketer, 
promoter, or seller of a medical product, regardless 
of the theory of liability on which the claim is based, 
or the number of plaintiffs, defendants, or other par-
ties, or the number of causes of action, in which the 
claimant alleges a health care liability claim. 
(8) HEALTH
CARE
LIABILITY
CLAIM.—The 
term ‘‘health care liability claim’’ means a demand 
by any person, whether or not pursuant to ADR, 
against a health care provider, health care organiza-
tion, or the manufacturer, distributor, supplier, mar-
keter, promoter, or seller of a medical product, in-
cluding, but not limited to, third-party claims, cross- 
claims, counter-claims, or contribution claims, which 
are based upon the provision of, use of, or payment 
for (or the failure to provide, use, or pay for) health 
care services or medical products, regardless of the 
theory of liability on which the claim is based, or the 
number of plaintiffs, defendants, or other parties, or 
the number of causes of action. 
(9) HEALTH CARE ORGANIZATION.—The term 
‘‘health care organization’’ means any person or en-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
tity which is obligated to provide or pay for health 
benefits under any health plan, including any person 
or entity acting under a contract or arrangement 
with a health care organization to provide or admin-
ister any health benefit. 
(10) HEALTH
CARE
PROVIDER.—The term 
‘‘health care provider’’ means any person or entity 
required by State or Federal laws or regulations to 
be licensed, registered, or certified to provide health 
care services, and being either so licensed, reg-
istered, or certified, or exempted from such require-
ment by other statute or regulation. 
(11) HEALTH CARE GOODS OR SERVICES.—The 
term ‘‘health care goods or services’’ means any 
goods or services provided by a health care organiza-
tion, provider, or by any individual working under 
the supervision of a health care provider, that relates 
to the diagnosis, prevention, or treatment of any 
human disease or impairment, or the assessment or 
care of the health of human beings. 
(12) MALICIOUS
INTENT
TO
INJURE.—The 
term ‘‘malicious intent to injure’’ means inten-
tionally causing or attempting to cause physical in-
jury other than providing health care goods or serv-
ices. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(13) MEDICAL PRODUCT.—The term ‘‘medical 
product’’ means a drug, device, or biological product 
intended for humans, and the terms ‘‘drug’’, ‘‘de-
vice’’, and ‘‘biological product’’ have the meanings 
given such terms in sections 201(g)(1) and 201(h) 
of the Federal Food, Drug and Cosmetic Act (21 
U.S.C. 321(g)(1) and (h)) and section 351(a) of the 
Public Health Service Act (42 U.S.C. 262(a)), re-
spectively, including any component or raw material 
used therein, but excluding health care services. 
(14) 
NONECONOMIC
DAMAGES.—The 
term 
‘‘noneconomic damages’’ means damages for phys-
ical and emotional pain, suffering, inconvenience, 
physical impairment, mental anguish, disfigurement, 
loss of enjoyment of life, loss of society and compan-
ionship, loss of consortium (other than loss of do-
mestic service), hedonic damages, injury to reputa-
tion, and all other nonpecuniary losses of any kind 
or nature. 
(15) PUNITIVE DAMAGES.—The term ‘‘punitive 
damages’’ means damages awarded, for the purpose 
of punishment or deterrence, and not solely for com-
pensatory purposes, against a health care provider, 
health care organization, or a manufacturer, dis-
tributor, or supplier of a medical product. Punitive 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
damages are neither economic nor noneconomic 
damages. 
(16) RECOVERY.—The term ‘‘recovery’’ means 
the net sum recovered after deducting any disburse-
ments or costs incurred in connection with prosecu-
tion or settlement of the claim, including all costs 
paid or advanced by any person. Costs of health care 
incurred by the plaintiff and the attorneys’ office 
overhead costs or charges for legal services are not 
deductible disbursements or costs for such purpose. 
(17) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, American Samoa, the Northern Mariana Is-
lands, the Trust Territory of the Pacific Islands, and 
any other territory or possession of the United 
States, or any political subdivision thereof. 
SEC. 2408. EFFECT ON OTHER LAWS. 
(a) VACCINE INJURY.— 
(1) To the extent that title XXI of the Public 
Health Service Act establishes a Federal rule of law 
applicable to a civil action brought for a vaccine-re-
lated injury or death— 
(A) this title does not affect the application 
of the rule of law to such an action; and 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(B) any rule of law prescribed by this title 
in conflict with a rule of law of such title XXI 
shall not apply to such action. 
(2) If there is an aspect of a civil action 
brought for a vaccine-related injury or death to 
which a Federal rule of law under title XXI of the 
Public Health Service Act does not apply, then this 
title or otherwise applicable law (as determined 
under this title) will apply to such aspect of such ac-
tion. 
(b) OTHER FEDERAL LAW.—Except as provided in 
this section, nothing in this title shall be deemed to affect 
any defense available to a defendant in a health care law-
suit or action under any other provision of Federal law. 
SEC. 2409. STATE FLEXIBILITY AND PROTECTION OF 
STATES’ RIGHTS. 
(a) HEALTH CARE LAWSUITS.—The provisions gov-
erning health care lawsuits set forth in this title preempt, 
subject to subsections (b) and (c), State law to the extent 
that State law prevents the application of any provisions 
of law established by or under this title. The provisions 
governing health care lawsuits set forth in this title super-
sede chapter 171 of title 28, United States Code, to the 
extent that such chapter— 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(1) provides for a greater amount of damages 
or contingent fees, a longer period in which a health 
care lawsuit may be commenced, or a reduced appli-
cability or scope of periodic payment of future dam-
ages, than provided in this title; or 
(2) prohibits the introduction of evidence re-
garding collateral source benefits, or mandates or 
permits subrogation or a lien on collateral source 
benefits. 
(b) PROTECTION OF STATES’ RIGHTS AND OTHER 
LAWS.—(1) Any issue that is not governed by any provi-
sion of law established by or under this title (including 
State standards of negligence) shall be governed by other-
wise applicable State or Federal law. 
(2) This title shall not preempt or supersede any 
State or Federal law that imposes greater procedural or 
substantive protections for health care providers and 
health care organizations from liability, loss, or damages 
than those provided by this title or create a cause of ac-
tion. 
(c) STATE FLEXIBILITY.—No provision of this title 
shall be construed to preempt— 
(1) any State law (whether effective before, on, 
or after the date of the enactment of this Act) that 
specifies a particular monetary amount of compen-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
satory or punitive damages (or the total amount of 
damages) that may be awarded in a health care law-
suit, regardless of whether such monetary amount is 
greater or lesser than is provided for under this title, 
notwithstanding section 2303(a); or 
(2) any defense available to a party in a health 
care lawsuit under any other provision of State or 
Federal law. 
SEC. 2410. APPLICABILITY; EFFECTIVE DATE. 
This subtitle shall apply to any health care lawsuit 
brought in a Federal or State court, or subject to an alter-
native dispute resolution system, that is initiated on or 
after the date of the enactment of this Act, except that 
any health care lawsuit arising from an injury occurring 
prior to the date of the enactment of this Act shall be 
governed by the applicable statute of limitations provisions 
in effect at the time the injury occurred. 
Subtitle E—Committee on 
Oversight and Government Reform 
SEC. 2501. RETIREMENT CONTRIBUTIONS. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.— 
(1) 
INDIVIDUAL
CONTRIBUTIONS.—Section 
8334(c) of title 5, United States Code, is amended— 
(A) by striking ‘‘(c) Each’’ and inserting 
‘‘(c)(1) Each’’; and 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(B) by adding at the end the following: 
‘‘(2) Notwithstanding any other provision of this sub-
section, the applicable percentage of basic pay under this 
subsection shall— 
‘‘(A) except as provided in subparagraph (B) or 
(C), for purposes of computing an amount— 
‘‘(i) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
subsection for calendar year 2012, plus an ad-
ditional 1.5 percentage points; 
‘‘(ii) for a period in calendar year 2014, be 
equal to the applicable percentage under this 
subsection for calendar year 2013 (as deter-
mined under clause (i)), plus an additional 0.5 
percentage point; 
‘‘(iii) for a period in calendar year 2015, 
2016, or 2017, be equal to the applicable per-
centage under this subsection for the preceding 
calendar year (as determined under clause (ii) 
or this clause, as the case may be), plus an ad-
ditional 1.0 percentage point; and 
‘‘(iv) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this subsection for calendar year 
2017 (as determined under clause (iii)); 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
‘‘(B) for purposes of computing an amount with 
respect to a Member for Member service— 
‘‘(i) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
subsection for calendar year 2012, plus an ad-
ditional 2.5 percentage points; 
‘‘(ii) for a period in calendar year 2014, 
2015, 2016, or 2017, be equal to the applicable 
percentage under this subsection for the pre-
ceding calendar year (as determined under 
clause (i) or this clause, as the case may be), 
plus an additional 1.5 percentage points; and 
‘‘(iii) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this subsection for calendar year 
2017 (as determined under clause (ii)); and 
‘‘(C) for purposes of computing an amount with 
respect to a Member or employee for Congressional 
employee service— 
‘‘(i) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
subsection for calendar year 2012, plus an ad-
ditional 2.5 percentage points; 
‘‘(ii) for a period in calendar year 2014, 
2015, 2016, or 2017, be equal to the applicable 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
percentage under this subsection for the pre-
ceding calendar year (as determined under 
clause (i) or this clause, as the case may be), 
plus an additional 1.5 percentage points; and 
‘‘(iii) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this subsection for calendar year 
2017 (as determined under clause (ii)). 
‘‘(3)(A) Notwithstanding subsection (a)(2), any ex-
cess contributions under subsection (a)(1)(A) (including 
the portion of any deposit under this subsection allocable 
to excess contributions) shall, if made by an employee of 
the United States Postal Service or the Postal Regulatory 
Commission, be deposited to the credit of the Postal Serv-
ice Fund under section 2003 of title 39, rather than the 
Civil Service Retirement and Disability Fund. 
‘‘(B) For purposes of this paragraph, the term ‘ex-
cess contributions’, as used with respect to contributions 
made under subsection (a)(1)(A) by an employee of the 
United States Postal Service or the Postal Regulatory 
Commission, means the amount by which— 
‘‘(i) deductions from basic pay of such employee 
which are made under subsection (a)(1)(A), exceed 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
‘‘(ii) deductions from basic pay of such em-
ployee which would have been so made if paragraph 
(2) had not been enacted.’’. 
(2) GOVERNMENT
CONTRIBUTIONS.—Section 
8334(a)(1)(B) of title 5, United States Code, is 
amended— 
(A) in clause (i), by striking ‘‘Except as 
provided in clause (ii),’’ and inserting ‘‘Except 
as provided in clause (ii) or (iii),’’; and 
(B) by adding at the end the following: 
‘‘(iii) The amount to be contributed under clause (i) 
shall, with respect to a period in any year beginning after 
December 31, 2012, be equal to— 
‘‘(I) the amount which would otherwise apply 
under clause (i) with respect to such period, reduced 
by 
‘‘(II) the amount by which, with respect to such 
period, the withholding under subparagraph (A) ex-
ceeds the amount which would otherwise have been 
withheld from the basic pay of the employee or elect-
ed official involved under subparagraph (A) based on 
the percentage applicable under subsection (c) for 
calendar year 2012.’’. 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(1) 
INDIVIDUAL
CONTRIBUTIONS.—Section 
8422(a)(3) of title 5, United States Code, is amend-
ed— 
(A) by redesignating subparagraph (B) as 
subparagraph (C); 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) Notwithstanding any other provision of this 
paragraph, the applicable percentage under this para-
graph for civilian service by employees or Members other 
than revised annuity employees shall— 
‘‘(i) except as provided in clause (ii) or (iii), for 
purposes of computing an amount— 
‘‘(I) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
paragraph for calendar year 2012, plus an ad-
ditional 1.5 percentage points; 
‘‘(II) for a period in calendar year 2014, 
be equal to the applicable percentage under this 
paragraph for calendar year 2013 (as deter-
mined under subclause (I)), plus an additional 
0.5 percentage point; 
‘‘(III) for a period in calendar year 2015, 
2016, or 2017, be equal to the applicable per-
centage under this paragraph for the preceding 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
calendar year (as determined under subclause 
(II) or this subclause, as the case may be), plus 
an additional 1.0 percentage point; and 
‘‘(IV) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this paragraph for calendar year 
2017 (as determined under subclause (III)); 
‘‘(ii) for purposes of computing an amount with 
respect to a Member— 
‘‘(I) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
paragraph for calendar year 2012, plus an ad-
ditional 2.5 percentage points; 
‘‘(II) for a period in calendar year 2014, 
2015, 2016, or 2017, be equal to the applicable 
percentage under this paragraph for the pre-
ceding calendar year (as determined under sub-
clause (I) or this subclause, as the case may 
be), plus an additional 1.5 percentage points; 
and 
‘‘(III) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this paragraph for calendar year 
2017 (as determined under subclause (II)); and 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
‘‘(iii) for purposes of computing an amount 
with respect to a Congressional employee— 
‘‘(I) for a period in calendar year 2013, 
2014, 2015, 2016, or 2017, be equal to the ap-
plicable percentage under this paragraph for 
the preceding calendar year (including as in-
creased under this subclause, if applicable), plus 
an additional 1.5 percentage points; and 
‘‘(II) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this paragraph for calendar year 
2017 (as determined under subclause (I)).’’; 
and 
(C) in subparagraph (C) (as so redesig-
nated by subparagraph (A))— 
(i) by striking ‘‘9.3’’ each place it ap-
pears and inserting ‘‘12’’; and 
(ii) by striking ‘‘9.8’’ each place it ap-
pears and inserting ‘‘12.5’’. 
(2) GOVERNMENT
CONTRIBUTIONS.—Section 
8423(a)(2) of title 5, United States Code, is amend-
ed— 
(A) by striking ‘‘(2)’’ and inserting 
‘‘(2)(A)’’; and 
(B) by adding at the end the following: 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
‘‘(B)(i) Subject to clauses (ii) and (iii), for purposes 
of any period in any year beginning after December 31, 
2012, the normal-cost percentage under this subsection 
shall be determined and applied as if section 501(b)(1) 
of the Sequester Replacement Reconciliation Act of 2012 
had not been enacted. 
‘‘(ii) Any contributions under this subsection in ex-
cess of the amounts which (but for clause (i)) would other-
wise have been payable shall be applied toward reducing 
the unfunded liability of the Civil Service Retirement Sys-
tem. 
‘‘(iii) After the unfunded liability of the Civil Service 
Retirement System has been eliminated, as determined by 
the Office, Government contributions under this sub-
section shall be determined and made disregarding this 
subparagraph. 
‘‘(iv) The preceding provisions of this subparagraph 
shall be disregarded for purposes of determining the con-
tributions payable by the United States Postal Service and 
the Postal Regulatory Commission.’’. 
SEC. 2502. ANNUITY SUPPLEMENT. 
Section 8421(a) of title 5, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(2) in paragraph (2), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 
(3) by adding at the end the following: 
‘‘(4)(A) Except as provided in subparagraph (B), no 
annuity supplement under this section shall be payable in 
the case of an individual who first becomes subject to this 
chapter after December 31, 2012. 
‘‘(B) Nothing in this paragraph applies in the case 
of an individual separating under subsection (d) or (e) of 
section 8412.’’. 
SEC. 2503. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF 
PAYMENTS FOR ACCRUED OR ACCUMULATED 
LEAVE. 
(a) AMENDMENTS RELATING
TO CSRS.—Section 
8351(b) of title 5, United States Code, is amended— 
(1) by striking paragraph (2)(A) and inserting 
the following: 
‘‘(2)(A) An employee or Member may contribute to 
the Thrift Savings Fund in any pay period any amount 
of such employee’s or Member’s basic pay for such pay 
period, and may contribute (by direct transfer to the 
Fund) any part of any payment that the employee or 
Member receives for accumulated and accrued annual or 
vacation leave under section 5551 or 5552. Notwith-
standing section 2105(e), in this paragraph the term ‘em-
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
ployee’ includes an employee of the United States Postal 
Service or of the Postal Regulatory Commission.’’; 
(2) by striking subparagraph (B) of paragraph 
(2); and 
(3) by redesignating subparagraph (C) of para-
graph (2) as subparagraph (B). 
(b) AMENDMENTS RELATING
TO FERS.—Section 
8432(a) of title 5, United States Code, is amended— 
(1) by striking all that precedes paragraph (3) 
and inserting the following: 
‘‘(a)(1) An employee or Member— 
‘‘(A) may contribute to the Thrift Savings 
Fund in any pay period, pursuant to an election 
under subsection (b), any amount of such employee’s 
or Member’s basic pay for such pay period; and 
‘‘(B) may contribute (by direct transfer to the 
Fund) any part of any payment that the employee 
or Member receives for accumulated and accrued an-
nual or vacation leave under section 5551 or 5552. 
‘‘(2) Contributions made under paragraph (1)(A) 
pursuant to an election under subsection (b) shall, with 
respect to each pay period for which such election remains 
in effect, be made in accordance with a program of regular 
contributions provided in regulations prescribed by the 
Executive Director.’’; and 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(2) by adding at the end the following: 
‘‘(4) Notwithstanding section 2105(e), in this sub-
section the term ‘employee’ includes an employee of the 
United States Postal Service or of the Postal Regulatory 
Commission.’’. 
(c) REGULATIONS.—The Executive Director of the 
Federal Retirement Thrift Investment Board shall pro-
mulgate regulations to carry out the amendments made 
by this section. 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect 1 year after the 
date of the enactment of this Act. 
Subtitle F—Committee on Ways 
and Means 
CHAPTER 1—RECAPTURE OF OVERPAY-
MENTS RESULTING FROM CERTAIN 
FEDERALLY SUBSIDIZED HEALTH IN-
SURANCE 
SEC. 2601. RECAPTURE OF OVERPAYMENTS RESULTING 
FROM 
CERTAIN 
FEDERALLY 
SUBSIDIZED 
HEALTH INSURANCE. 
(a) IN GENERAL.—Paragraph (2) of section 36B(f) 
of the Internal Revenue Code of 1986 is amended by strik-
ing subparagraph (B). 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(b) CONFORMING AMENDMENT.—So much of para-
graph (2) of section 36B(f) of such Code, as amended by 
subsection (a), as precedes ‘‘advance payments’’ is amend-
ed to read as follows: 
‘‘(2) EXCESS ADVANCE PAYMENTS.—If the’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2013. 
CHAPTER 2—SOCIAL SECURITY NUMBER 
REQUIRED TO CLAIM THE REFUND-
ABLE PORTION OF THE CHILD TAX 
CREDIT 
SEC. 2611. SOCIAL SECURITY NUMBER REQUIRED TO 
CLAIM THE REFUNDABLE PORTION OF THE 
CHILD TAX CREDIT. 
(a) IN GENERAL.—Subsection (d) of section 24 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(5) IDENTIFICATION REQUIREMENT WITH RE-
SPECT TO TAXPAYER.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any taxpayer for any taxable year 
unless the taxpayer includes the taxpayer’s So-
cial Security number on the return of tax for 
such taxable year. 
VerDate Mar 15 2010 
02:29 Dec 31, 2012
Jkt 029200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
‘‘(B) JOINT RETURNS.—In the case of a 
joint return, the requirement of subparagraph 
(A) shall be treated as met if the Social Secu-
rity number of either spouse is included on such 
return. 
‘‘(C) 
LIMITATION.—Subparagraph 
(A) 
shall not apply to the extent the tentative min-
imum tax (as defined in section 55(b)(1)(A)) 
exceeds the credit allowed under section 32.’’. 
(b) OMISSION TREATED
AS MATHEMATICAL
OR 
CLERICAL
ERROR.—Subparagraph 
(I) 
of 
section 
6213(g)(2) of such Code is amended to read as follows: 
‘‘(I) an omission of a correct Social Secu-
rity number required under section 24(d)(5) 
(relating to refundable portion of child tax cred-
it), or a correct TIN under section 24(e) (relat-
ing to child tax credit), to be included on a re-
turn,’’. 
(c) CONFORMING AMENDMENT.—Subsection (e) of 
section 24 of such Code is amended by inserting ‘‘WITH 
RESPECT
TO QUALIFYING CHILDREN’’ after ‘‘IDENTI-
FICATION REQUIREMENT’’ in the heading thereof. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
CHAPTER 3—HUMAN RESOURCES 
PROVISIONS 
SEC. 2621. REPEAL OF THE PROGRAM OF BLOCK GRANTS 
TO STATES FOR SOCIAL SERVICES. 
(a) REPEALS.—Sections 2001 through 2007 of the 
Social Security Act (42 U.S.C. 1397–1397f) are repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 404(d) of the Social Security Act 
(42 U.S.C. 604(d)) is amended— 
(A) in paragraph (1), by striking ‘‘any or 
all of the following provisions of law:’’ and all 
that follows through ‘‘The’’ and inserting 
‘‘the’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘RULES’’ and all that 
follows through ‘‘any amount paid’’ and in-
serting ‘‘RULES.—Any amount paid’’; 
(ii) by striking ‘‘a provision of law 
specified in paragraph (1)’’ and inserting 
‘‘the Child Care and Development Block 
Grant Act of 1990’’; and 
(iii) by striking subparagraph (B); 
and 
(C) by striking paragraph (2) and redesig-
nating paragraph (3) as paragraph (2). 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(2) Section 422(b) of the Social Security Act 
(42 U.S.C. 622(b)) is amended— 
(A) in paragraph (1)(A)— 
(i) by striking ‘‘administers or super-
vises’’ and inserting ‘‘administered or su-
pervised’’; and 
(ii) by striking ‘‘subtitle 1 of title 
XX’’ and inserting ‘‘subtitle A of title XX 
(as in effect before the repeal of such sub-
title)’’; and 
(B) in paragraph (2), by striking ‘‘under 
subtitle 1 of title XX,’’. 
(3) Section 471(a) of the Social Security Act 
(42 U.S.C. 671(a)) is amended— 
(A) in paragraph (4), by striking ‘‘, under 
subtitle 1 of title XX of this Act,’’; and 
(B) in paragraph (8), by striking ‘‘XIX, or 
XX’’ and inserting ‘‘or XIX’’. 
(4) Section 472(h)(1) of the Social Security Act 
(42 U.S.C. 672(h)(1)) is amended by striking the 
second sentence. 
(5) Section 473(b) of the Social Security Act 
(42 U.S.C. 673(b)) is amended— 
(A) in paragraph (1), by striking ‘‘(3)’’ 
and inserting ‘‘(2)’’; 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(B) in paragraph (4), by striking ‘‘para-
graphs (1) and (2)’’ and inserting ‘‘paragraph 
(1)’’; and 
(C) by striking paragraph (2) and redesig-
nating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively. 
(6) Section 504(b)(6) of the Social Security Act 
(42 U.S.C. 704(b)(6)) is amended in each of sub-
paragraphs (A) and (B) by striking ‘‘XIX, or XX’’ 
and inserting ‘‘or XIX’’. 
(7) Section 1101(a)(1) of the Social Security 
Act (42 U.S.C. 1301(a)(1)) is amended by striking 
the penultimate sentence. 
(8) Section 1128(h) of the Social Security Act 
(42 U.S.C. 1320a–7(h)) is amended— 
(A) by adding ‘‘or’’ at the end of para-
graph (2); and 
(B) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3). 
(9) Section 1128A(i)(1) of the Social Security 
Act (42 U.S.C. 1320a–7a(i)(1)) is amended by strik-
ing ‘‘or subtitle 1 of title XX’’. 
(10) Section 1132(a)(1) of the Social Security 
Act (42 U.S.C. 1320b–2(a)(1)) is amended by strik-
ing ‘‘XIX, or XX’’ and inserting ‘‘or XIX’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(11) Section 1902(e)(13)(F)(iii) of the Social 
Security Act (42 U.S.C. 1396a(e)(13)(F)(iii)) is 
amended— 
(A) by striking ‘‘EXCLUSIONS’’ and insert-
ing ‘‘EXCLUSION’’; and 
(B) by striking ‘‘an agency that determines 
eligibility for a program established under the 
Social Services Block Grant established under 
title XX or’’. 
(12) The heading for title XX of the Social Se-
curity Act is amended by striking ‘‘BLOCK 
GRANTS TO STATES FOR SOCIAL SERVICES’’ 
and inserting ‘‘HEALTH PROFESSIONS DEM-
ONSTRATIONS 
AND 
ENVIRONMENTAL 
HEALTH CONDITION DETECTION’’. 
(13) The heading for subtitle A of title XX of 
the Social Security Act is amended by striking 
‘‘Block Grants to States for Social Serv-
ices’’ 
and 
inserting 
‘‘Health Professions 
Demonstrations 
and 
Environmental 
Health Condition Detection’’. 
(14) Section 16(k)(5)(B)(i) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025(k)(5)(B)(i)) 
is amended by striking ‘‘, or title XX,’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(15) Section 402(b)(3) of the Personal Respon-
sibility and Work Opportunity Reconciliation Act of 
1996 (8 U.S.C. 1612(b)(3)) is amended by striking 
subparagraph (B) and redesignating subparagraph 
(C) as subparagraph (B). 
(16) Section 245A(h)(4)(I) of the Immigration 
Reform and Control Act of 1986 (8 U.S.C. 
1255a(h)(4)(I)) is amended by striking ‘‘, XVI, and 
XX’’ and inserting ‘‘and XVI’’. 
(17) Section 17 of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1766) is amend-
ed— 
(A) in subsection (a)(2)— 
(i) in subparagraph (B)— 
(I) by striking ‘‘—’’ and all that 
follows through ‘‘(i)’’; 
(II) by striking ‘‘or’’ at the end 
of clause (i); and 
(III) by striking clause (ii); and 
(ii) in subparagraph (D)(ii), by strik-
ing ‘‘or title XX’’; and 
(B) in subsection (o)(2)(B)— 
(i) by striking ‘‘or title XX’’ each 
place it appears; and 
(ii) by striking ‘‘or XX’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(18) Section 201(b) of the Indian Child Welfare 
Act of 1978 (25 U.S.C. 1931(b)) is amended by 
striking ‘‘titles IV–B and XX’’ each place it appears 
and inserting ‘‘part B of title IV’’. 
(19) Section 3803(c)(2)(C) of title 31, United 
States Code, is amended by striking clause (vi) and 
redesignating clauses (vii) through (xvi) as clauses 
(vi) through (xv), respectively. 
(20) Section 14502(d)(3) of title 40, United 
States Code, is amended— 
(A) by striking ‘‘and title XX’’; and 
(B) by striking ‘‘, 1397 et seq.’’. 
(21) Section 2006(a)(15) of the Public Health 
Service Act (42 U.S.C. 300z–5(a)(15)) is amended 
by striking ‘‘and title XX’’. 
(22) Section 203(b)(3) of the Older Americans 
Act of 1965 (42 U.S.C. 3013(b)(3)) is amended by 
striking ‘‘XIX, and XX’’ and inserting ‘‘and XIX’’. 
(23) Section 213 of the Older Americans Act of 
1965 (42 U.S.C. 3020d) is amended by striking ‘‘or 
title XX’’. 
(24) Section 306(d) of the Older Americans Act 
of 1965 (42 U.S.C. 3026(d)) is amended in each of 
paragraphs (1) and (2) by striking ‘‘titles XIX and 
XX’’ and inserting ‘‘title XIX’’. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
(25) Section 2605 of the Low-Income Home 
Energy Assistance Act of 1981 (42 U.S.C. 8624) is 
amended in each of subsections (b)(4) and (j) by 
striking ‘‘under title XX of the Social Security 
Act,’’. 
(26) Section 602 of the Child Development As-
sociate Scholarship Assistance Act of 1985 (42 
U.S.C. 10901) is repealed. 
(27) Section 3(d)(1) of the Assisted Suicide 
Funding Restriction Act of 1997 (42 U.S.C. 
14402(d)(1)) is amended by striking subparagraph 
(C) and redesignating subparagraphs (D) through 
(K) as subparagraphs (C) through (J), respectively. 
(c) EFFECTIVE DATE.—The repeals and amend-
ments made by this section shall take effect on the date 
of enactment of this Act. 
Subtitle G—Sequester Replacement 
SEC. 2701. SHORT TITLE. 
This title may be cited as the ‘‘Sequester Replace-
ment Act of 2012’’. 
SEC. 2702. PROTECTING VETERANS PROGRAMS FROM SE-
QUESTER. 
Section 256(e)(2)(E) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is repealed. 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
SEC. 2703. ACHIEVING $19 BILLION IN DISCRETIONARY SAV-
INGS. 
(a) REVISED
2013 DISCRETIONARY
SPENDING 
LIMIT.—Paragraph (2) of section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended to read as follows: 
‘‘(2) with respect to fiscal year 2013, for the 
discretionary category, $1,047,000,000,000 in new 
budget authority;’’. 
(b) DISCRETIONARY SAVINGS.—Section 251A(7)(A) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows: 
‘‘(A) FISCAL YEAR 2013.— 
‘‘(i) FISCAL
YEAR
2013
ADJUST-
MENT.—On January 2, 2013, the discre-
tionary category set forth in section 
251(c)(2) 
shall 
be 
decreased 
by 
$19,104,000,000 in budget authority. 
‘‘(ii) SUPPLEMENTAL SEQUESTRATION 
ORDER.—On January 15, 2013, OMB 
shall issue a supplemental sequestration 
report for fiscal year 2013 and take the 
form of a final sequestration report as set 
forth in section 254(f)(2) and using the 
procedures set forth in section 253(f), to 
eliminate 
any 
discretionary 
spending 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
breach of the spending limit set forth in 
section 251(c)(2) as adjusted by clause (i), 
and the President shall order a sequestra-
tion, if any, as required by such report.’’. 
SEC. 2704. CONFORMING AMENDMENTS TO SECTION 314 OF 
THE 
CONGRESSIONAL 
BUDGET 
AND 
IM-
POUNDMENT CONTROL ACT OF 1974. 
Section 314(a) of the Congressional Budget Act of 
1974 is amended to read as follows: 
‘‘(a) ADJUSTMENTS.— 
‘‘(1) IN GENERAL.—The chair of the Committee 
on the Budget of the House of Representatives or 
the Senate may make adjustments as set forth in 
paragraph (2) for a bill or joint resolution, amend-
ment thereto or conference report thereon, by the 
amount of new budget authority and outlays flowing 
therefrom in the same amount as required by section 
251(b) of the Balanced Budget and Emergency Def-
icit Control Act of 1985. 
‘‘(2) MATTERS TO BE ADJUSTED.—The chair of 
the Committee on the Budget of the House of Rep-
resentatives or the Senate may make the adjust-
ments referred to in paragraph (1) to— 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with
‘‘(A) the allocations made pursuant to the 
appropriate concurrent resolution on the budget 
pursuant to section 302(a); 
‘‘(B) the budgetary aggregates as set forth 
in the appropriate concurrent resolution on the 
budget; and 
‘‘(C) the discretionary spending limits, if 
any, set forth in the appropriate concurrent res-
olution on the budget.’’. 
SEC. 2705. TREATMENT FOR PAYGO PURPOSES. 
The budgetary effects of this Act and any amendment 
made by it shall not be entered on either PAYGO score-
card maintained pursuant to section 4(d) of the Statutory 
Pay-As-You-Go Act of 2010. 
SEC. 2706. ELIMINATION OF THE FISCAL YEAR 2013 SE-
QUESTRATION FOR DEFENSE DIRECT SPEND-
ING. 
Any sequestration order issued by the President 
under the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 to carry out reductions to direct spending 
for the defense function (050) for fiscal year 2013 pursu-
ant to section 251A of such Act shall have no force or 
effect. 
Æ 
VerDate Mar 15 2010 
04:24 Dec 29, 2012
Jkt 029200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6301
E:\BILLS\H6688.IH
H6688
jbell on DSK7SPTVN1PROD with