H. J. Res. 59 
One Hundred Thirteenth Congress 
of the 
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Thursday, 
the third day of January, two thousand and thirteen 
Joint Resolution 
Making continuing appropriations for fiscal year 2014, and for other purposes. 
Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled, That 
DIVISION A—BIPARTISAN BUDGET 
AGREEMENT 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the ‘‘Bipartisan 
Budget Act of 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents of this division 
is as follows: 
DIVISION A—BUDGET ENFORCEMENT AND DEFICIT REDUCTION 
Sec. 1. Short title and table of contents. 
TITLE I—BUDGET ENFORCEMENT 
Subtitle A—Amendments to the Balanced Budget and Emergency Deficit Control 
Act of 1985 
Sec. 101. Amendments to the Balanced Budget and Emergency Deficit Control Act 
of 1985. 
Subtitle B—Establishing a Congressional Budget 
Sec. 111. Fiscal year 2014 budget resolution. 
Sec. 112. Limitation on advance appropriations in the Senate. 
Sec. 113. Rule of construction in the House of Representatives. 
Sec. 114. Additional Senate budget enforcement. 
Sec. 115. Authority for fiscal year 2015 budget resolution in the House of Rep-
resentatives. 
Sec. 116. Authority for fiscal year 2015 budget resolution in the Senate. 
Sec. 117. Exclusion of savings from PAYGO scorecards. 
Sec. 118. Exercise of rulemaking powers. 
Subtitle C—Technical Corrections 
Sec. 121. Technical corrections to the Balanced Budget and Emergency Deficit Con-
trol Act of 1985. 
Sec. 122. Technical corrections to the Congressional Budget Act of 1974. 
TITLE II—PREVENTION OF WASTE, FRAUD, AND ABUSE 
Sec. 201. Improving the collection of unemployment insurance overpayments. 
Sec. 202. Strengthening Medicaid Third-Party Liability. 
Sec. 203. Restriction on access to the death master file. 
Sec. 204. Identification of inmates requesting or receiving improper payments. 
TITLE III—NATURAL RESOURCES 
Sec. 301. Ultra-deepwater and unconventional natural gas and other petroleum re-
sources.
H. J. Res. 59—2 
Sec. 302. Amendment to the Mineral Leasing Act. 
Sec. 303. Approval of agreement with Mexico. 
Sec. 304. Amendment to the Outer Continental Shelf Lands Act. 
Sec. 305. Federal oil and gas royalty prepayment cap. 
Sec. 306. Strategic Petroleum Reserve. 
TITLE IV—FEDERAL CIVILIAN AND MILITARY RETIREMENT 
Sec. 401. Increase in contributions to Federal Employees Retirement System for 
new employees. 
Sec. 402. Foreign Service Pension System. 
Sec. 403. Annual adjustment of retired pay and retainer pay amounts for retired 
members of the Armed Forces under age 62. 
TITLE V—HIGHER EDUCATION 
Sec. 501. Default reduction program. 
Sec. 502. Elimination of nonprofit servicing contracts. 
TITLE VI—TRANSPORTATION 
Sec. 601. Aviation security service fees. 
Sec. 602. Transportation cost reimbursement. 
Sec. 603. Sterile areas at airports. 
TITLE VII—MISCELLANEOUS PROVISIONS 
Sec. 701. Extension of customs user fees. 
Sec. 702. Limitation on allowable government contractor compensation costs. 
Sec. 703. Pension Benefit Guaranty Corporation premium rate increases. 
Sec. 704. Cancellation of Unobligated Balances. 
Sec. 705. Conservation planning technical assistance user fees. 
Sec. 706. Self plus one coverage. 
(c) REFERENCES.—Except as expressly provided otherwise, any 
reference to ‘‘this Act’’ contained in any division of this Act shall 
be treated as referring only to the provisions of that division. 
TITLE I—BUDGET ENFORCEMENT 
Subtitle A—Amendments to the Balanced 
Budget and Emergency Deficit Control 
Act of 1985 
SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY 
DEFICIT CONTROL ACT OF 1985. 
(a) REVISED DISCRETIONARY SPENDING LIMITS.—Section 251(c) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 
is amended by striking paragraphs (1) through (10) and inserting 
the following new paragraphs: 
‘‘(1) for fiscal year 2014— 
‘‘(A) for the revised security category, $520,464,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$491,773,000,000 in new budget authority; 
‘‘(2) for fiscal year 2015— 
‘‘(A) for the revised security category, $521,272,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$492,356,000,000 in new budget authority; 
‘‘(3) for fiscal year 2016— 
‘‘(A) for the revised security category, $577,000,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$530,000,000,000 in new budget authority;
H. J. Res. 59—3 
‘‘(4) for fiscal year 2017— 
‘‘(A) for the revised security category, $590,000,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$541,000,000,000 in new budget authority; 
‘‘(5) for fiscal year 2018— 
‘‘(A) for the revised security category, $603,000,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$553,000,000,000 in new budget authority; 
‘‘(6) for fiscal year 2019— 
‘‘(A) for the revised security category, $616,000,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$566,000,000,000 in new budget authority; 
‘‘(7) for fiscal year 2020— 
‘‘(A) for the revised security category, $630,000,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$578,000,000,000 in new budget authority; and 
‘‘(8) for fiscal year 2021— 
‘‘(A) for the revised security category, $644,000,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$590,000,000,000 in new budget authority;’’. 
(b) DIRECT SPENDING ADJUSTMENTS FOR FISCAL YEARS 2014 
AND 2015.—(1) Section 251A of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as redesignated by subsection (d), 
is amended by adding at the end the following new paragraph: 
‘‘(10) IMPLEMENTING
DIRECT
SPENDING
REDUCTIONS
FOR 
FISCAL YEARS 2014 AND 2015.—(A) OMB shall make the calcula-
tions necessary to implement the direct spending reductions 
calculated pursuant to paragraphs (3) and (4) without regard 
to the amendment made to section 251(c) revising the discre-
tionary spending limits for fiscal years 2014 and 2015 by the 
Bipartisan Budget Act of 2013. 
‘‘(B) Paragraph (5)(B) shall not be implemented for fiscal 
years 2014 and 2015.’’. 
(2) Paragraph (5)(B) of section 251A of the Balanced Budget 
and Emergency Deficit Control Act of 1985, as redesignated by 
subsection (d)(2)(C) of this section, is amended by striking ‘‘On’’ 
and inserting ‘‘Except as provided by paragraph (10), on’’. 
(c) EXTENSION OF DIRECT SPENDING REDUCTIONS FOR FISCAL 
YEARS 2022 AND 2023.—Paragraph (6), as redesignated by sub-
section (d)(2)(C) of this section, of section 251A of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended 
by inserting ‘‘(A)’’ before ‘‘On the date’’ and by adding at the end 
the following new subparagraph: 
‘‘(B) On the dates OMB issues its sequestration preview 
reports for fiscal year 2022 and for fiscal year 2023, pursuant 
to section 254(c), the President shall order a sequestration, 
effective upon issuance such that— 
‘‘(i) the percentage reduction for nonexempt direct 
spending for the defense function is the same percent as 
the percentage reduction for nonexempt direct spending 
for the defense function for fiscal year 2021 calculated 
under paragraph (3)(B); and
H. J. Res. 59—4 
‘‘(ii) the percentage reduction for nonexempt direct 
spending for nondefense functions is the same percent as 
the percentage reduction for nonexempt direct spending 
for nondefense functions for fiscal year 2021 calculated 
under paragraph (4)(B).’’. 
(d) CONFORMING AMENDMENTS.—Part C of title II of the Bal-
anced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
900 et seq.) is amended— 
(1) in section 250(c)(4) (2 U.S.C. 900(c)(4)), by adding at 
the end the following: 
‘‘(D) The term ‘revised security category’ means discre-
tionary appropriations in budget function 050. 
‘‘(E) The term ‘revised nonsecurity category’ means discre-
tionary appropriations other than in budget function 050. 
‘‘(F) The term ‘category’ means the subsets of discretionary 
appropriations in section 251(c). Discretionary appropriations 
in each of the categories shall be those designated in the 
joint explanatory statement accompanying the conference report 
on the Balanced Budget Act of 1997. New accounts or activities 
shall be categorized only after consultation with the Committees 
on Appropriations and the Budget of the House of Representa-
tives and the Senate and that consultation shall, to the extent 
practicable, include written communication to such committees 
that affords such committees the opportunity to comment before 
official action is taken with respect to new accounts or activi-
ties.’’; and 
(2) in section 251A (2 U.S.C. 901a)— 
(A) by striking, in the matter preceding paragraph 
(1), ‘‘Unless’’ through ‘‘as follows:’’ and inserting the fol-
lowing: ‘‘Discretionary appropriations and direct spending 
accounts shall be reduced in accordance with this section 
as follows:’’; 
(B) by striking paragraphs (1) and (2); 
(C) by redesignating paragraphs (3) through (11) as 
paragraphs (1) through (9), respectively; 
(D) in paragraph (2), as redesignated, by striking ‘‘para-
graph (3)’’ and inserting ‘‘paragraph (1)’’; 
(E) in paragraph (3), as redesignated, by striking ‘‘para-
graph (4)’’ each place it appears and inserting ‘‘paragraph 
(2)’’; 
(F) in paragraph (4), as redesignated, by striking ‘‘para-
graph (4)’’ each place it appears and inserting ‘‘paragraph 
(2)’’; 
(G) in paragraph (5), as redesignated— 
(i) by striking ‘‘paragraph (5)’’ each place it appears 
and inserting ‘‘paragraph (3)’’; and 
(ii) by striking ‘‘paragraph (6)’’ each place it 
appears and inserting ‘‘paragraph (4)’’; 
(H) in paragraph (6), as redesignated— 
(i) by striking ‘‘paragraph (4)’’ and inserting ‘‘para-
graph (2)’’; and 
(ii) by striking ‘‘paragraphs (5) and (6)’’ and 
inserting ‘‘paragraphs (3) and (4)’’; 
(I) in paragraph (7), as redesignated— 
(i) by striking ‘‘paragraph (8)’’ and inserting ‘‘para-
graph (6)’’; and
H. J. Res. 59—6 
years 2014 through 2018 and 2014 through 2023 consistent 
with the May 2013 baseline of the Congressional Budget Office 
adjusted to account for the budgetary effects of this Act and 
legislation enacted prior to this Act but not included in the 
May 2013 baseline of the Congressional Budget Office, for 
the purpose of enforcing sections 302 and 311 of the Congres-
sional Budget Act of 1974. 
(c) FURTHER ADJUSTMENTS.—After the date of enactment of 
this Act, the Chairman of the Committee on the Budget of the 
House of Representatives may reduce the aggregates, allocations, 
and other budgetary levels included in the statement of the Chair-
man of the Committee on the Budget of the House of Representa-
tives referred to in subsection (b) to reflect the budgetary effects 
of any legislation enacted during the 113th Congress that reduces 
the deficit. 
SEC. 112. LIMITATION ON ADVANCE APPROPRIATIONS IN THE SENATE. 
(a) POINT
OF ORDER AGAINST ADVANCE APPROPRIATIONS
IN 
THE SENATE.— 
(1) IN GENERAL.— 
(A) POINT OF ORDER.—Except as provided in paragraph 
(2), it shall not be in order in the Senate to consider 
any bill, joint resolution, motion, amendment, amendment 
between the Houses, or conference report that would pro-
vide an advance appropriation. 
(B) DEFINITION.—In this subsection, the term ‘‘advance 
appropriation’’ means any new budget authority provided 
in a bill or joint resolution making appropriations for fiscal 
year 2014 that first becomes available for any fiscal year 
after 2014 or any new budget authority provided in a 
bill or joint resolution making appropriations for fiscal 
year 2015 that first becomes available for any fiscal year 
after 2015. 
(2) EXCEPTIONS.—Advance appropriations may be pro-
vided— 
(A) for fiscal years 2015 and 2016 for programs, 
projects, activities, or accounts identified in a statement 
submitted to the Congressional Record by the Chairman 
of the Committee on the Budget of the Senate under the 
heading ‘‘Accounts Identified for Advance Appropriations’’ 
in an aggregate amount not to exceed $28,852,000,000 in 
new budget authority in each fiscal year; 
(B) for the Corporation for Public Broadcasting; and 
(C) for the Department of Veterans Affairs for the 
Medical Services, Medical Support and Compliance, and 
Medical Facilities accounts of the Veterans Health 
Administration. 
(3) SUPERMAJORITY WAIVER AND APPEAL.— 
(A) WAIVER.—In the Senate, paragraph (1) may be 
waived or suspended only by an affirmative vote of three- 
fifths of the Members, duly chosen and sworn. 
(B) APPEAL.—An affirmative vote of three-fifths of the 
Members of the Senate, duly chosen and sworn, shall be 
required to sustain an appeal of the ruling of the Chair 
on a point of order raised under paragraph (1).
H. J. Res. 59—7 
(4) FORM OF POINT OF ORDER.—A point of order under 
paragraph (1) may be raised by a Senator as provided in 
section 313(e) of the Congressional Budget Act of 1974. 
(5) CONFERENCE REPORTS.—When the Senate is considering 
a conference report on, or an amendment between the Houses 
in relation to, a bill, upon a point of order being made by 
any Senator pursuant to this subsection, and such point of 
order being sustained, such material contained in such con-
ference report or amendment between the Houses shall be 
stricken, and the Senate shall proceed to consider the question 
of whether the Senate shall recede from its amendment and 
concur with a further amendment, or concur in the House 
amendment with a further amendment, as the case may be, 
which further amendment shall consist of only that portion 
of the conference report or House amendment, as the case 
may be, not so stricken. Any such motion in the Senate shall 
be debatable. In any case in which such point of order is 
sustained against a conference report (or Senate amendment 
derived from such conference report by operation of this para-
graph), no further amendment shall be in order. 
(6) INAPPLICABILITY.—In the Senate, section 402 of S. Con. 
Res. 13 (111th Congress) shall no longer apply. 
(b) EXPIRATION.—Subsection (a) shall expire if a concurrent 
resolution on the budget for fiscal year 2015 is agreed to by the 
Senate and House of Representatives pursuant to section 301 of 
the Congressional Budget Act of 1974. 
SEC. 113. RULE OF CONSTRUCTION IN THE HOUSE OF REPRESENTA-
TIVES. 
In the House of Representatives, for the remainder of the 
113th Congress, the provisions of H. Con. Res. 25 (113th Congress), 
as deemed in force by H. Res. 243 (113th Congress), shall remain 
in force to the extent its budgetary levels are not superseded by 
this subtitle or by further action of the House of Representatives. 
SEC. 114. ADDITIONAL SENATE BUDGET ENFORCEMENT. 
(a) SENATE PAY-AS-YOU-GO SCORECARD.— 
(1) IN GENERAL.—Effective on the date of enactment of 
this Act, for the purpose of enforcing section 201 of S. Con. 
Res. 21 (110th Congress), the Chairman of the Committee 
on the Budget of the Senate shall reduce any balances of 
direct spending and revenues for any fiscal year to zero. 
(2) FISCAL YEAR 2015.—After April 15, 2014, but not later 
than May 15, 2014, for the purpose of enforcing section 201 
of S. Con. Res. 21 (110th Congress), the Chairman of the 
Committee on the Budget of the Senate shall reduce any bal-
ances of direct spending and revenues for any fiscal year to 
zero. 
(3) PUBLICATION.—Upon resetting the Senate paygo score-
card pursuant to paragraph (2), the Chairman of the Committee 
on the Budget of the Senate shall publish a notification of 
such action in the Congressional Record. 
(b) FURTHER ADJUSTMENTS.—With respect to any allocations, 
aggregates, or levels set or adjustments made pursuant to this 
subtitle, sections 412 through 414 of S. Con. Res. 13 (111th Con-
gress) shall remain in effect. 
(c) DEFICIT-NEUTRAL RESERVE FUND TO REPLACE SEQUESTRA-
TION.—The Chairman of the Committee on the Budget of the Senate
H. J. Res. 59—8 
may revise the allocations of a committee or committees, aggregates, 
and other appropriate levels and limits set pursuant to this subtitle 
for one or more bills, joint resolutions, amendments, motions, or 
conference reports that amend section 251A of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) to 
repeal or revise the enforcement procedures established under that 
section, by the amounts provided in such legislation for those pur-
poses, provided that such legislation would not increase the deficit 
over the period of the total of fiscal years 2014 through 2023. 
For purposes of determining deficit-neutrality under this subsection, 
the Chairman may include the estimated effects of any amendment 
or amendments to the discretionary spending limits in section 251(c) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(c)). 
(d) ADDITIONAL DEFICIT-NEUTRAL RESERVE FUNDS.—In the 
Senate only, sections 302, 303, 304, 305, 306, 307, 308, 309, 310, 
311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 322, 323, 324, 
325, 326, 327, 328, 329, 330, 331, 332, 333, 334, 335, 338, 339, 
340, 341, 344, 348, 349, 350, 353, 354, 356, 361, 363, 364, 365, 
366, 367, 368, 369, 371, 376, 378, 379, and 383 of S. Con. Res. 
8 (113th Congress), as passed the Senate, shall have force and 
effect. 
(e) EXPIRATION.—Subsections (a)(2), (c), and (d) shall expire 
if a concurrent resolution on the budget for fiscal year 2015 is 
agreed to by the Senate and House of Representatives pursuant 
to section 301 of the Congressional Budget Act of 1974. 
SEC. 115. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION 
IN THE HOUSE OF REPRESENTATIVES. 
(a) FISCAL YEAR 2015.—If a concurrent resolution on the budget 
for fiscal year 2015 has not been adopted by April 15, 2014, for 
the purpose of enforcing the Congressional Budget Act of 1974, 
the allocations, aggregates, and levels provided for in subsection 
(b) shall apply in the House of Representatives after April 15, 
2014, in the same manner as for a concurrent resolution on the 
budget for fiscal year 2015 with appropriate budgetary levels for 
fiscal year 2015 and for fiscal years 2016 through 2024. 
(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—In 
the House of Representatives, the Chairman of the Committee 
on the Budget shall submit a statement for publication in the 
Congressional Record after April 15, 2014, but not later than May 
15, 2014, containing— 
(1) for the Committee on Appropriations, committee alloca-
tions for fiscal year 2015 at the total level as set forth in 
section 251(c)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 for the purpose of enforcing section 302 
of the Congressional Budget Act of 1974; 
(2) for all committees other than the Committee on Appro-
priations, committee allocations for fiscal year 2015 and for 
the period of fiscal years 2015 through 2024 at the levels 
included in the most recent baseline of the Congressional 
Budget Office, as adjusted for the budgetary effects of any 
provision of law enacted during the period beginning on the 
date such baseline is issued and ending on the date of submis-
sion of such statement, for the purpose of enforcing section 
302 of the Congressional Budget Act of 1974; and
H. J. Res. 59—9 
(3) aggregate spending levels for fiscal year 2015 and aggre-
gate revenue levels for fiscal year 2015 and for the period 
of fiscal years 2015 through 2024, at the levels included in 
the most recent baseline of the Congressional Budget Office, 
as adjusted for the budgetary effects of any provision of law 
enacted during the period beginning on the date such baseline 
is issued and ending on the date of submission of such state-
ment, for the purpose of enforcing section 311 of the Congres-
sional Budget Act of 1974. 
(c) ADDITIONAL MATTER.—The statement referred to in sub-
section (b) may also include for fiscal year 2015, the matter con-
tained in title IV (reserve funds) and in sections 601, 603(a), 605(a), 
and 609 of H. Con. Res. 25 (113th Congress), as adopted by the 
House, updated by one fiscal year, including updated amounts 
for section 601. 
(d) FISCAL YEAR 2015 ALLOCATION
TO
THE COMMITTEE
ON 
APPROPRIATIONS.—If the statement referred to in subsection (b) 
is not filed by May 15, 2014, then the matter referred to in sub-
section (b)(1) shall be submitted by the Chairman of the Committee 
on the Budget for publication in the Congressional Record on the 
next day that the House of Representatives is in session. 
(e) ADJUSTMENTS.—The Chairman of the Committee on the 
Budget of the House of Representatives may adjust the levels 
included in the statement referred to in subsection (b) to reflect 
the budgetary effects of any legislation enacted during the 113th 
Congress that reduces the deficit or as otherwise necessary. 
(f) APPLICATION.—Subsections (a), (b), (c), (d), and (e) shall 
no longer apply if a concurrent resolution on the budget for fiscal 
year 2015 is agreed to by the Senate and House of Representatives 
pursuant to section 301 of the Congressional Budget Act of 1974. 
SEC. 116. AUTHORITY FOR FISCAL YEAR 2015 BUDGET RESOLUTION 
IN THE SENATE. 
(a) FISCAL YEAR 2015.—For the purpose of enforcing the 
Congressional Budget Act of 1974, after April 15, 2014, and 
enforcing budgetary points of order in prior concurrent resolutions 
on the budget, the allocations, aggregates, and levels provided for 
in subsection (b) shall apply in the Senate in the same manner 
as for a concurrent resolution on the budget for fiscal year 2015 
with appropriate budgetary levels for fiscal years 2014 and 2016 
through 2024. 
(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—After 
April 15, 2014, but not later than May 15, 2014, the Chairman 
of the Committee on the Budget of the Senate shall file— 
(1) for the Committee on Appropriations, committee alloca-
tions for fiscal years 2014 and 2015 consistent with the discre-
tionary spending limits set forth in this Act for the purpose 
of enforcing section 302 of the Congressional Budget Act of 
1974; 
(2) for all committees other than the Committee on Appro-
priations, committee allocations for fiscal years 2014, 2015, 
2015 through 2019, and 2015 through 2024 consistent with 
the most recent baseline of the Congressional Budget Office 
for the purpose of enforcing section 302 of the Congressional 
Budget Act of 1974;
H. J. Res. 59—10 
(3) aggregate spending levels for fiscal years 2014 and 
2015 in accordance with the allocations established under para-
graphs (1) and (2), for the purpose of enforcing section 311 
of the Congressional Budget Act of 1974; 
(4) aggregate revenue levels for fiscal years 2014, 2015, 
2015 through 2019, and 2015 through 2024 consistent with 
the most recent baseline of the Congressional Budget Office 
for the purpose of enforcing section 311 of the Congressional 
Budget Act of 1974; and 
(5) levels of Social Security revenues and outlays for fiscal 
years 2014, 2015, 2015 through 2019, and 2015 through 2024 
consistent with the most recent baseline of the Congressional 
Budget Office for the purpose of enforcing sections 302 and 
311 of the Congressional Budget Act of 1974. 
(c) ADDITIONAL MATTER.—The filing referred to in subsection 
(b) may also include, for fiscal year 2015, the reserve funds included 
in section 114(c) and (d) of this Act, updated by one fiscal year. 
(d) SUPERSEDING PREVIOUS STATEMENT.—In the Senate, the 
filing referred to in subsection (b) shall supersede the statement 
referred to in section 111(b) of this Act. 
(e) EXPIRATION.—This section shall expire if a concurrent reso-
lution on the budget for fiscal year 2015 is agreed to by the Senate 
and House of Representatives pursuant to section 301 of the 
Congressional Budget Act of 1974. 
SEC. 117. EXCLUSION OF SAVINGS FROM PAYGO SCORECARDS. 
(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—Notwithstanding 
section 1(c) of this division, the budgetary effects of this Act shall 
not be entered on either PAYGO scorecard maintained pursuant 
to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARDS.—Notwithstanding section 1(c) 
of this division, the budgetary effects of this Act shall not be 
entered on any PAYGO scorecard maintained for purposes of section 
201 of S. Con. Res. 21 (110th Congress). 
SEC. 118. EXERCISE OF RULEMAKING POWERS. 
The provisions of this subtitle are enacted by the Congress— 
(1) as an exercise of the rulemaking power of the House 
of Representatives and the Senate, respectively, and as such 
they shall be considered as part of the rules of each House, 
respectively, or of that House to which they specifically apply, 
and such rules shall supersede other rules only to the extent 
that they are inconsistent therewith; and 
(2) with full recognition of the constitutional right of either 
House to change such rules (so far as relating to such House) 
at any time, in the same manner, and to the same extent 
as in the case of any other rule of such House. 
Subtitle C—Technical Corrections 
SEC. 121. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND 
EMERGENCY DEFICIT CONTROL ACT OF 1985. 
The Balanced Budget and Emergency Deficit Control Act of 
1985 is amended as follows: 
(1) In section 252(b)(2)(B), strike ‘‘applicable to budget year’’ 
and insert ‘‘applicable to the budget year’’.
H. J. Res. 59—11 
(2) In section 252(c)(1)(C)(i), strike ‘‘paragraph (1)’’ and 
insert ‘‘subsection (b)’’. 
(3) In section 254(c)(3)(A), strike ‘‘subsection 252(b)’’ and 
insert ‘‘section 252(b)’’. 
(4) In section 254(f)(4), strike ‘‘subsection 252(b)’’ and insert 
‘‘section 252(b)’’. 
(5) In section 255(a), strike ‘‘section 231b(a), 231b(f)(2), 
231c(a), and 231c(f) of title 45 United States Code’’ and insert 
‘‘sections 3 and 4 of the Railroad Retirement Act of 1937 (45 
U.S.C. 231 et seq.)’’. 
(6) In section 255(h), in the item relating to Federal Pell 
Grants, strike ‘‘section 401 Title IV’’ and insert ‘‘section 401 
of title IV’’. 
(7) In the first subsection (j) of section 255 (relating to 
Split Treatment Programs), move the margins for the list items 
two ems to the right. 
(8) Redesignate the second subsection (j) of section 255 
(relating to Identification of Programs) as subsection (k). 
(9) In section 257(b)(2)(A)(i), strike ‘‘differenes’’ and insert 
‘‘differences’’. 
(10) In section 258(a)(1), strike ‘‘section 254(j)’’ and insert 
‘‘section 254(i)’’. 
SEC. 
122. 
TECHNICAL 
CORRECTIONS 
TO 
THE 
CONGRESSIONAL 
BUDGET ACT OF 1974. 
The Congressional Budget Act of 1974 is amended as follows: 
(1) In sections 301(a)(6) and 301(a)(7), strike ‘‘For purposes’’ 
and insert ‘‘for purposes’’. 
(2) In section 301(a), in the matter following paragraph 
(7), strike ‘‘old age’’ and insert ‘‘old-age’’. 
(3) In section 302(g)(2)(A), strike ‘‘committee on the Budget’’ 
and insert ‘‘Committee on the Budget’’. 
(4) In section 305(a)(1), strike ‘‘clause 2(l)(6) of rule XI’’ 
and insert ‘‘clause 4 of rule XIII’’. 
(5) In section 305(a)(5), strike ‘‘provisions of rule XXIII’’ 
and insert ‘‘provisions of rule XVIII’’. 
(6) In section 305(b)(1), strike ‘‘section 304(a)’’ and insert 
‘‘section 304’’. 
(7) In section 306 strike ‘‘No’’ and insert ‘‘(a) IN
THE 
SENATE.—In the Senate, no’’, strike ‘‘of either House’’ and ‘‘in 
that House’’, strike ‘‘of that House’’, and add at the end the 
following new subsection: 
‘‘(b) IN
THE HOUSE
OF REPRESENTATIVES.—In the House of 
Representatives, no bill or joint resolution, or amendment thereto, 
or conference report thereon, dealing with any matter which is 
within the jurisdiction of the Committee on the Budget shall be 
considered unless it is a bill or joint resolution which has been 
reported by the Committee on the Budget (or from the consideration 
of which such committee has been discharged) or unless it is an 
amendment to such a bill or joint resolution.’’. 
(8) In section 308(d), in the subsection heading, strike 
‘‘Scorekeeping Guidelines.—’’ and insert ‘‘SCOREKEEPING GUIDE-
LINES.—’’. 
(9) In section 310(c)(1)(A)(i) and (ii), strike ‘‘under that 
paragraph by more than’’ and insert ‘‘under that paragraph 
by more than—’’.
H. J. Res. 59—12 
(10) In section 314(d)(2), strike subparagraph (A), redesig-
nate subparagraphs (B) and (C) as subparagraphs (A) and 
(B) respectively, in subparagraph (A), as redesignated, strike 
‘‘under subparagraph (A)’’ and insert ‘‘under paragraph (1)’’, 
and in subparagraph (B), as redesignated, strike ‘‘under 
subparagraph (B)’’ and insert ‘‘under subparagraph (A)’’. 
(11) In section 315, add at the end the following new 
sentence: ‘‘In the case of a reported bill or joint resolution 
considered pursuant to a special order of business, a point 
of order under section 303 shall be determined on the basis 
of the text made in order as an original bill or joint resolution 
for the purpose of amendment or to the text on which the 
previous question is ordered directly to passage, as the case 
may be.’’. 
(12) In section 401(b)(2), strike ‘‘section 302(b)’’ and insert 
‘‘section 302(a)’’. 
(13) In section 401(c), add at the end the following new 
paragraph: 
‘‘(3) In the House of Representatives, subsections (a) and 
(b) shall not apply to new authority described in those sub-
sections to the extent that a provision in a bill or joint resolu-
tion, or an amendment thereto or a conference report thereon, 
establishes prospectively for a Federal office or position a speci-
fied or minimum level of compensation to be funded by annual 
discretionary appropriations.’’. 
(14) In section 421(5)(A)(i)(II), strike ‘‘subparagraph (B))’’ 
and insert ‘‘subparagraph (B)’’. 
(15) In section 505(c), strike ‘‘section 406(b)’’ both places 
it appears and insert ‘‘section 405(b)’’. 
(16) In section 904(c)(2), strike ‘‘258A(b)(3)(C)(I)’’ and 
‘‘258(h)(3)’’ and insert ‘‘258A(b)(3)(C)(i)’’ and ‘‘258B(h)(3)’’, 
respectively, and strike ‘‘and 314(e)’’ and insert ‘‘314(e), and 
314(f)’’. 
(17) In section 904(d)(3), strike ‘‘258A(b)(3)(C)(I)’’ and 
‘‘258(h)(3)’’ and insert ‘‘258A(b)(3)(C)(i)’’ and ‘‘258B(h)(3)’’, 
respectively, and strike ‘‘and 312(c)’’ and insert ‘‘312(c), 314(e), 
and 314(f)’’. 
TITLE II—PREVENTION OF WASTE, 
FRAUD, AND ABUSE 
SEC. 201. IMPROVING THE COLLECTION OF UNEMPLOYMENT INSUR-
ANCE OVERPAYMENTS. 
(a) IN GENERAL.—Section 303 of the Social Security Act (42 
U.S.C. 503) is amended by adding at the end the following: 
‘‘(m) In the case of a covered unemployment compensation 
debt (as defined under section 6402(f)(4) of the Internal Revenue 
Code of 1986) that remains uncollected as of the date that is 
1 year after the debt was finally determined to be due and collected, 
the State to which such debt is owed shall take action to recover 
such debt under section 6402(f) of the Internal Revenue Code of 
1986.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect upon the date of enactment of this Act.
H. J. Res. 59—13 
SEC. 202. STRENGTHENING MEDICAID THIRD-PARTY LIABILITY. 
(a) PAYMENT FOR PRENATAL AND PREVENTIVE PEDIATRIC CARE 
AND IN CASES INVOLVING MEDICAL SUPPORT.—Section 1902(a)(25) 
of the Social Security Act (42 U.S.C. 1396a(a)(25)) is amended— 
(1) in subparagraph (E)(i), by inserting before the semicolon 
at the end the following: ‘‘, except that the State may, if 
the State determines doing so is cost-effective and will not 
adversely affect access to care, only make such payment if 
a third party so liable has not made payment within 90 days 
after the date the provider of such services has initially sub-
mitted a claim to such third party for payment for such serv-
ices’’; and 
(2) in subparagraph (F)(i), by striking ‘‘30 days after such 
services are furnished’’ and inserting ‘‘90 days after the date 
the provider of such services has initially submitted a claim 
to such third party for payment for such services, except that 
the State may make such payment within 30 days after such 
date if the State determines doing so is cost-effective and nec-
essary to ensure access to care.’’. 
(b) RECOVERY OF MEDICAID EXPENDITURES FROM BENEFICIARY 
LIABILITY SETTLEMENTS.— 
(1) STATE PLAN REQUIREMENTS.—Section 1902(a)(25) of the 
Social Security Act (42 U.S.C. 1396a(a)(25)) is amended— 
(A) in subparagraph (B), by striking ‘‘to the extent 
of such legal liability’’; and 
(B) in subparagraph (H), by striking ‘‘payment by any 
other party for such health care items or services’’ and 
inserting ‘‘any payments by such third party’’. 
(2) 
ASSIGNMENT
OF
RIGHTS
OF
PAYMENT.—Section 
1912(a)(1)(A) of such Act (42 U.S.C. 1396k(a)(1)(A)) is amended 
by striking ‘‘payment for medical care from any third party’’ 
and inserting ‘‘any payment from a third party that has a 
legal liability to pay for care and services available under 
the plan’’. 
(3) LIENS.—Section 1917(a)(1)(A) of such Act (42 U.S.C. 
1396p(a)(1)(A)) is amended to read as follows: 
‘‘(A) pursuant to— 
‘‘(i) the judgment of a court on account of benefits 
incorrectly paid on behalf of such individual, or 
‘‘(ii) rights acquired by or assigned to the State in 
accordance 
with 
section 
1902(a)(25)(H) 
or 
section 
1912(a)(1)(A), or’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on October 1, 2014. 
SEC. 203. RESTRICTION ON ACCESS TO THE DEATH MASTER FILE. 
(a) IN GENERAL.—The Secretary of Commerce shall not disclose 
to any person information contained on the Death Master File 
with respect to any deceased individual at any time during the 
3-calendar-year period beginning on the date of the individual’s 
death, unless such person is certified under the program established 
under subsection (b). 
(b) CERTIFICATION PROGRAM.— 
(1) IN GENERAL.—The Secretary of Commerce shall estab-
lish a program—
H. J. Res. 59—14 
(A) to certify persons who are eligible to access the 
information described in subsection (a) contained on the 
Death Master File, and 
(B) to perform periodic and unscheduled audits of cer-
tified persons to determine the compliance by such certified 
persons with the requirements of the program. 
(2) CERTIFICATION.—A person shall not be certified under 
the program established under paragraph (1) unless such per-
son certifies that access to the information described in sub-
section (a) is appropriate because such person— 
(A) has— 
(i) a legitimate fraud prevention interest, or 
(ii) a legitimate business purpose pursuant to a 
law, governmental rule, regulation, or fiduciary duty, 
and 
(B) has systems, facilities, and procedures in place 
to 
safeguard 
such 
information, 
and 
experience 
in 
maintaining the confidentiality, security, and appropriate 
use of such information, pursuant to requirements similar 
to the requirements of section 6103(p)(4) of the Internal 
Revenue Code of 1986, and 
(C) agrees to satisfy the requirements of such section 
6103(p)(4) as if such section applied to such person. 
(3) FEES.— 
(A) IN GENERAL.—The Secretary of Commerce shall 
establish under section 9701 of title 31, United States 
Code, a program for the charge of fees sufficient to cover 
(but not to exceed) all costs associated with evaluating 
applications for certification and auditing, inspecting, and 
monitoring certified persons under the program. Any fees 
so collected shall be deposited and credited as offsetting 
collections to the accounts from which such costs are paid. 
(B) REPORT.—The Secretary of Commerce shall report 
on an annual basis to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the 
House of Representatives on the total fees collected during 
the preceding year and the cost of administering the certifi-
cation program under this subsection for such year. 
(c) IMPOSITION OF PENALTY.— 
(1) IN GENERAL.—Any person who is certified under the 
program established under subsection (b), who receives informa-
tion described in subsection (a), and who during the period 
of time described in subsection (a)— 
(A) discloses such information to any person other than 
a person who meets the requirements of subparagraphs 
(A), (B), and (C) of subsection (b)(2), 
(B) discloses such information to any person who uses 
the information for any purpose not listed under subsection 
(b)(2)(A) or who further discloses the information to a per-
son who does not meet such requirements, or 
(C) uses any such information for any purpose not 
listed under subsection (b)(2)(A), 
and any person to whom such information is disclosed who 
further discloses or uses such information as described in the 
preceding subparagraphs, shall pay a penalty of $1,000 for 
each such disclosure or use. 
(2) LIMITATION ON PENALTY.—
H. J. Res. 59—15 
(A) IN
GENERAL.—The total amount of the penalty 
imposed under this subsection on any person for any cal-
endar year shall not exceed $250,000. 
(B) EXCEPTION
FOR
WILLFUL
VIOLATIONS.—Subpara-
graph (A) shall not apply in the case of violations under 
paragraph (1) that the Secretary of Commerce determines 
to be willful or intentional violations. 
(d) DEATH MASTER FILE.—For purposes of this section, the 
term ‘‘Death Master File’’ means information on the name, social 
security account number, date of birth, and date of death of deceased 
individuals maintained by the Commissioner of Social Security, 
other than information that was provided to such Commissioner 
under section 205(r) of the Social Security Act (42 U.S.C. 405(r)). 
(e) EXEMPTION FROM FREEDOM OF INFORMATION ACT REQUIRE-
MENT WITH RESPECT TO CERTAIN RECORDS OF DECEASED INDIVID-
UALS.— 
(1) IN GENERAL.—No Federal agency shall be compelled 
to disclose the information described in subsection (a) to any 
person who is not certified under the program established under 
subsection (b). 
(2) TREATMENT OF INFORMATION.—For purposes of section 
552 of title 5, United States Code, this section shall be consid-
ered a statute described in subsection (b)(3) of such section 
552. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), this 
section shall take effect on the date that is 90 days after 
the date of the enactment of this Act. 
(2) FOIA EXEMPTION.—Subsection (e) shall take effect on 
the date of the enactment of this Act. 
SEC. 204. IDENTIFICATION OF INMATES REQUESTING OR RECEIVING 
IMPROPER PAYMENTS. 
(a) INFORMATION PROVIDED TO THE PRISONER UPDATE PROC-
ESSING SYSTEM (PUPS).— 
(1) SECTION 202(x)(3)(B)(i)(I).—Section 202(x)(3)(B)(i)(I) of the 
Social Security Act (42 U.S.C. 402(x)(3)(B)(i)(I)) is amended 
by— 
(A) inserting ‘‘first, middle, and last’’ before ‘‘names’’; 
(B) striking the comma after the words ‘‘social security 
account numbers’’ and inserting ‘‘or taxpayer identification 
numbers, prison assigned inmate numbers, last known 
addresses,’’; 
(C) inserting ‘‘dates of release or anticipated dates 
of release, dates of work release,’’ before ‘‘and, to the extent 
available’’; and 
(D) by inserting ‘‘and clause (iv) of this subparagraph’’ 
after ‘‘paragraph (1)’’. 
(2) SECTION 1611(e)(1)(I)(i)(I).—Section 1611(e)(1)(I)(i)(I) of the 
Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)(I)) is amended 
by— 
(A) inserting ‘‘first, middle, and last’’ before ‘‘names’’; 
(B) striking the comma after the words ‘‘social security 
account numbers’’ and inserting ‘‘or taxpayer identification 
numbers, prison assigned inmate numbers, last known 
addresses,’’;
H. J. Res. 59—16 
(C) inserting ‘‘dates of release or anticipated dates 
of release, dates of work release,’’ before ‘‘and, to the extent 
available’’; and 
(D) by inserting ‘‘and clause (iv) of this subparagraph’’ 
after ‘‘this paragraph’’. 
(b) AUTHORITY OF SECRETARY OF THE TREASURY TO ACCESS 
PUPS.— 
(1) SECTION 202(x)(3)(B).—Section 202(x)(3)(B) of the Social 
Security Act (42 U.S.C. 402(x)(3)(B)) is amended— 
(A) in clause (iv), by inserting before the period the 
following: ‘‘, for statistical and research activities conducted 
by Federal and State agencies, and to the Secretary of 
the Treasury for the purposes of tax administration, debt 
collection, and identifying, preventing, and recovering 
improper payments under federally funded programs’’; and 
(B) by adding at the end the following: 
‘‘(v)(I) The Commissioner may disclose information received 
pursuant to this paragraph to any officer, employee, agent, or 
contractor of the Department of the Treasury whose official duties 
require such information to assist in the identification, prevention, 
and recovery of improper payments or in the collection of delinquent 
debts owed to the United States, including payments certified by 
the head of an executive, judicial, or legislative paying agency, 
and payments made to individuals whose eligibility, or continuing 
eligibility, to participate in a Federal program (including those 
administered by a State or political subdivision thereof) is being 
reviewed. 
‘‘(II) Notwithstanding the provisions of section 552a of title 
5, United States Code, or any other provision of Federal or State 
law, the Secretary of the Treasury may compare information dis-
closed under subclause (I) with any other personally identifiable 
information derived from a Federal system of records or similar 
records maintained by a Federal contractor, a Federal grantee, 
or an entity administering a Federal program or activity, and 
may redisclose such comparison of information to any paying or 
administering agency and to the head of the Federal Bureau of 
Prisons and the head of any State agency charged with the adminis-
tration of prisons with respect to inmates whom the Secretary 
of the Treasury has determined may have been issued, or facilitated 
in the issuance of, an improper payment. 
‘‘(III) The comparison of information disclosed under subclause 
(I) shall not be considered a matching program for purposes of 
section 552a of title 5, United States Code.’’. 
(2) SECTION 1611(e)(1)(I).—Section 1611(e)(1)(I) of the Social 
Security Act (42 U.S.C. 1382(e)(1)(I)) is amended— 
(A) in clause (iii), by inserting before the period the 
following: ‘‘, for statistical and research activities conducted 
by Federal and State agencies, and to the Secretary of 
the Treasury for the purposes of tax administration, debt 
collection, and identifying, preventing, and recovering 
improper payments under federally funded programs’’; and 
(B) by adding at the end the following: 
‘‘(v)(I) The Commissioner may disclose information received 
pursuant to this paragraph to any officer, employee, agent, or 
contractor of the Department of the Treasury whose official duties 
require such information to assist in the identification, prevention, 
and recovery of improper payments or in the collection of delinquent
H. J. Res. 59—17 
debts owed to the United States, including payments certified by 
the head of an executive, judicial, or legislative paying agency, 
and payments made to individuals whose eligibility, or continuing 
eligibility, to participate in a Federal program (including those 
administered by a State or political subdivision thereof) is being 
reviewed. 
‘‘(II) Notwithstanding the provisions of section 552a of title 
5, United States Code, or any other provision of Federal or State 
law, the Secretary of the Treasury may compare information dis-
closed under subclause (I) with any other personally identifiable 
information derived from a Federal system of records or similar 
records maintained by a Federal contractor, a Federal grantee, 
or an entity administering a Federal program or activity and may 
redisclose such comparison of information to any paying or admin-
istering agency and to the head of the Federal Bureau of Prisons 
and the head of any State agency charged with the administration 
of prisons with respect to inmates whom the Secretary of the 
Treasury has determined may have been issued, or facilitated in 
the issuance of, an improper payment. 
‘‘(III) The comparison of information disclosed under subclause 
(I) shall not be considered a matching program for purposes of 
section 552a of title 5, United States Code.’’. 
(c) CONFORMING AMENDMENT TO THE DO NOT PAY INITIATIVE.— 
Section 5(a)(2) of the Improper Payments Elimination and Recovery 
Improvement Act of 2012 (31 U.S.C. 3321 note) is amended by 
adding at the end the following: 
‘‘(F) Information regarding incarcerated individuals 
maintained by the Commissioner of Social Security under 
sections 202(x) and 1611(e) of the Social Security Act.’’. 
TITLE III—NATURAL RESOURCES 
SEC. 301. ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS 
AND OTHER PETROLEUM RESOURCES. 
(a) REPEAL.—Subtitle J of title IX of the Energy Policy Act 
of 2005 (42 U.S.C. 16371 et seq.) is repealed. 
(b) RESCISSION.—Any unobligated funds appropriated for car-
rying out the subtitle repealed by subsection (a) are rescinded. 
SEC. 302. AMENDMENT TO THE MINERAL LEASING ACT. 
Section 35(b) of the Mineral Leasing Act (30 U.S.C. 191(b)) 
is amended to read as follows— 
‘‘(b) DEDUCTION FOR ADMINISTRATIVE COSTS.—In determining 
the amount of payments to the States under this section, beginning 
in fiscal year 2014 and for each year thereafter, the amount of 
such payments shall be reduced by 2 percent for any administrative 
or other costs incurred by the United States in carrying out the 
program authorized by this Act, and the amount of such reduction 
shall be deposited to miscellaneous receipts of the Treasury.’’. 
SEC. 303. APPROVAL OF AGREEMENT WITH MEXICO. 
The Agreement between the United States of America and 
the United Mexican States Concerning Transboundary Hydrocarbon 
Reservoirs in the Gulf of Mexico, signed at Los Cabos, February 
20, 2012, is hereby approved.
H. J. Res. 59—18 
SEC. 304. AMENDMENT TO THE OUTER CONTINENTAL SHELF LANDS 
ACT. 
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 32. TRANSBOUNDARY HYDROCARBON AGREEMENTS. 
‘‘(a) AUTHORIZATION.—After the date of enactment of the Bipar-
tisan Budget Act of 2013, the Secretary may implement the terms 
of any transboundary hydrocarbon agreement for the management 
of transboundary hydrocarbon reservoirs entered into by the Presi-
dent and approved by Congress. In implementing such an agree-
ment, the Secretary shall protect the interests of the United States 
to promote domestic job creation and ensure the expeditious and 
orderly development and conservation of domestic mineral resources 
in accordance with all applicable United States laws governing 
the exploration, development, and production of hydrocarbon 
resources on the Outer Continental Shelf. 
‘‘(b) SUBMISSION TO CONGRESS.— 
‘‘(1) IN GENERAL.—No later than 180 days after all parties 
to a transboundary hydrocarbon agreement have agreed to 
its terms, a transboundary hydrocarbon agreement that does 
not constitute a treaty in the judgment of the President shall 
be submitted by the Secretary to— 
‘‘(A) the Speaker of the House of Representatives; 
‘‘(B) the Majority Leader of the Senate; 
‘‘(C) the Chair of the Committee on Natural Resources 
of the House of Representatives; and 
‘‘(D) the Chair of the Committee on Energy and Natural 
Resources of the Senate. 
‘‘(2) CONTENTS
OF
SUBMISSION.—The submission shall 
include— 
‘‘(A) any amendments to this Act or other Federal 
law necessary to implement the agreement; 
‘‘(B) an analysis of the economic impacts such agree-
ment and any amendments necessitated by the agreement 
will have on domestic exploration, development, and 
production of hydrocarbon resources on the Outer Conti-
nental Shelf; and 
‘‘(C) a detailed description of any regulations expected 
to be issued by the Secretary to implement the agreement. 
‘‘(c) IMPLEMENTATION OF SPECIFIC TRANSBOUNDARY AGREEMENT 
WITH MEXICO.—The Secretary may take actions as necessary to 
implement the terms of the Agreement between the United States 
of America and the United Mexican States Concerning Transbound-
ary Hydrocarbon Reservoirs in the Gulf of Mexico, signed at Los 
Cabos, February 20, 2012, including— 
‘‘(1) approving unitization agreements and related arrange-
ments for the exploration, development, or production of oil 
and natural gas from transboundary reservoirs or geological 
structures; 
‘‘(2) making available, in the limited manner necessary 
under the agreement and subject to the protections of confiden-
tiality provided by the agreement, information relating to the 
exploration, development, and production of oil and natural 
gas from a transboundary reservoir or geological structure that 
may be considered confidential, privileged, or proprietary 
information under law;
H. J. Res. 59—19 
‘‘(3) taking actions consistent with an expert determination 
under the agreement; and 
‘‘(4) ensuring only appropriate inspection staff at the 
Bureau of Safety and Environmental Enforcement or other 
Federal agency personnel designated by the Bureau, the oper-
ator, or the lessee have authority to stop work on any installa-
tion or other device or vessel permanently or temporarily 
attached to the seabed of the United States that may be erected 
thereon for the purpose of resource exploration, development 
or production activities as approved by the Secretary. 
‘‘(d) SAVINGS PROVISIONS.—Nothing in this section shall be 
construed— 
‘‘(1) to authorize the Secretary to participate in any negotia-
tions, conferences, or consultations with Cuba regarding explo-
ration, development, or production of hydrocarbon resources 
in the Gulf of Mexico along the United States maritime border 
with Cuba or the area known by the Department of the Interior 
as the ‘Eastern Gap’; or 
‘‘(2) as affecting the sovereign rights and the jurisdiction 
that the United States has under international law over the 
Outer Continental Shelf that appertains to it.’’. 
SEC. 305. FEDERAL OIL AND GAS ROYALTY PREPAYMENT CAP. 
(a) IN GENERAL.—Section 111(i) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1721(i)) is amended 
by striking ‘‘(i) Upon’’ and all that follows through ‘‘For purposes’’ 
and inserting the following: 
‘‘(i) LIMITATION ON INTEREST.— 
‘‘(1) IN GENERAL.—Interest shall not be paid on any exces-
sive overpayment. 
‘‘(2) EXCESSIVE OVERPAYMENT DEFINED.—For purposes’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect on July 1, 2014. 
SEC. 306. STRATEGIC PETROLEUM RESERVE. 
(a) REPEAL OF AUTHORITY TO ACQUIRE IN-KIND ROYALTY CRUDE 
OIL.—Section 160(a) of the Energy Policy and Conservation Act 
(42 U.S.C. 6240(a)) is amended to read as follows: 
‘‘(a) The Secretary may acquire, place in storage, transport, 
or exchange petroleum products acquired by purchase or exchange.’’. 
(b) RESCISSION OF FUNDS.—Any unobligated balances available 
in the SPR Petroleum Account in the Treasury on the date of 
enactment of this section are permanently rescinded. 
TITLE IV—FEDERAL CIVILIAN AND 
MILITARY RETIREMENT 
SEC. 401. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES 
RETIREMENT SYSTEM FOR NEW EMPLOYEES. 
(a) DEFINITION.— 
(1) IN GENERAL.—Section 8401 of title 5, United States 
Code, is amended— 
(A) in paragraph (36), by striking ‘‘and’’ at the end; 
(B) in paragraph (37), by striking the period and 
inserting ‘‘; and’’; and 
(C) by adding at the end the following:
H. J. Res. 59—20 
‘‘(38) the term ‘further revised annuity employee’ means 
any individual who— 
‘‘(A) on December 31, 2013— 
‘‘(i) is not an employee or Member covered under 
this chapter; 
‘‘(ii) is not performing civilian service which is 
creditable service under section 8411; and 
‘‘(iii) has less than 5 years of creditable civilian 
service under section 8411; and 
‘‘(B) after December 31, 2013, becomes employed as 
an employee or becomes a Member covered under this 
chapter performing service which is creditable service 
under section 8411.’’. 
(2) TECHNICAL AMENDMENT.—Section 8401(37)(B) of title 
5, United States Code, is amended by inserting ‘‘and before 
January 1, 2014,’’ after ‘‘after December 31, 2012,’’. 
(b) 
INCREASE
IN
INDIVIDUAL
CONTRIBUTIONS.—Section 
8422(a)(3) of title 5, United States Code, is amended— 
(1) in subparagraph (A), by inserting ‘‘or further revised 
annuity employees’’ after ‘‘revised annuity employees’’; and 
(2) by adding at the end the following: 
‘‘(C) The applicable percentage under this paragraph for civilian 
service by further revised annuity employees shall be as follows: 
‘‘Employee .....................
10.6 
After December 31, 2013. 
Congressional em-
ployee ........................
10.6 
After December 31, 2013. 
Member .........................
10.6 
After December 31, 2013. 
Law enforcement offi-
cer, firefighter, mem-
ber of the Capitol Po-
lice, member of the 
Supreme Court Po-
lice, or air traffic con-
troller ........................
11.1 
After December 31, 2013. 
Nuclear materials cou-
rier .............................
11.1 
After December 31, 2013. 
Customs and border 
protection officer .......
11.1 
After December 31, 2013.’’. 
(c) GOVERNMENT CONTRIBUTIONS.—Section 8423(a)(2) of title 
5, United States Code, is amended— 
(1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’; and 
(2) by adding at the end the following: 
‘‘(B)(i) Subject to clauses (ii) and (iii), for purposes of any 
period in any year beginning after December 31, 2013, the normal- 
cost percentage under this subsection shall be determined and 
applied as if section 401(b) of the Bipartisan Budget Act of 2013 
had not been enacted. 
‘‘(ii) Any contributions under this subsection in excess of the 
amounts which (but for clause (i)) would otherwise have been pay-
able shall be applied toward reducing the unfunded liability of 
the Civil Service Retirement System. 
‘‘(iii) After the unfunded liability of the Civil Service Retirement 
System has been eliminated, as determined by the Office, Govern-
ment contributions under this subsection shall be determined and 
made disregarding this subparagraph.
H. J. Res. 59—21 
‘‘(iv) The preceding provisions of this subparagraph shall be 
disregarded for purposes of determining the contributions payable 
by the United States Postal Service and the Postal Regulatory 
Commission.’’. 
(d) ANNUITY CALCULATION.—Section 8415(d) of title 5, United 
States Code, is amended by inserting ‘‘or a further revised annuity 
employee’’ after ‘‘a revised annuity employee’’. 
SEC. 402. FOREIGN SERVICE PENSION SYSTEM. 
(a) DEFINITION.— 
(1) IN GENERAL.—Section 852 of the Foreign Service Act 
of 1980 (22 U.S.C. 4071a) is amended— 
(A) by redesignating paragraphs (8), (9), and (10) as 
paragraphs (9), (10), and (11), respectively; and 
(B) by inserting after paragraph (7) the following: 
‘‘(8) the term ‘further revised annuity participant’ means 
any individual who— 
‘‘(A) on December 31, 2013— 
‘‘(i) is not a participant; 
‘‘(ii) is not performing service which is creditable 
service under section 854; and 
‘‘(iii) has less than 5 years creditable service under 
section 854; and 
‘‘(B) after December 31, 2013, becomes a participant 
performing service which is creditable service under section 
854;’’. 
(2) TECHNICAL AMENDMENT.—Section 852(7)(B) of the For-
eign Service Act of 1980 (22 U.S.C. 4071a(7)(B)) is amended 
by inserting ‘‘and before January 1, 2014,’’ after ‘‘after December 
31, 2012,’’. 
(b) DEDUCTIONS
AND
WITHHOLDINGS
FROM
PAY.—Section 
856(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2)) 
is amended— 
(1) in subparagraph (A), by inserting ‘‘or a further revised 
annuity participant’’ after ‘‘revised annuity participant’’; and 
(2) by adding at the end the following: 
‘‘(C) The applicable percentage for a further revised annuity 
participant shall be as follows: 
‘‘11.15 ..................................
After December 31, 2013.’’. 
(c) GOVERNMENT CONTRIBUTIONS.—Section 857 of the Foreign 
Service Act of 1980 (22 U.S.C. 4071f) is amended by adding at 
the end the following: 
‘‘(c)(1) Subject to paragraphs (2) and (3), for purposes of any 
period in any year beginning after December 31, 2013, the normal- 
cost percentage under this section shall be determined and applied 
as if section 402(b) of the Bipartisan Budget Act of 2013 had 
not been enacted. 
‘‘(2) Any contributions under this section in excess of the 
amounts which (but for paragraph (1)) would otherwise have been 
payable shall be applied toward reducing the unfunded liability 
of the Foreign Service Retirement and Disability System. 
‘‘(3) After the unfunded liability of the Foreign Service Retire-
ment and Disability System has been eliminated, as determined 
by the Secretary of State, Government contributions under this 
section shall be determined and made disregarding this subsection.’’.
H. J. Res. 59—22 
SEC. 403. ANNUAL ADJUSTMENT OF RETIRED PAY AND RETAINER PAY 
AMOUNTS FOR RETIRED MEMBERS OF THE ARMED 
FORCES UNDER AGE 62. 
(a) CPI MINUS ONE PERCENT.—Section 1401a(b) of title 10, 
United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘paragraphs (2) and (3)’’ 
and inserting ‘‘paragraph (2), (3), or (4)’’; 
(2) by redesignating paragraphs (4) and (5) as paragraphs 
(5) and (6), respectively; and 
(3) by inserting after paragraph (3) the following new para-
graph (4): 
‘‘(4) REDUCED PERCENTAGE FOR RETIRED MEMBERS UNDER 
AGE 62.— 
‘‘(A) IN GENERAL.—Effective on December 1 of each 
year, the retired pay of each member and former member 
under 62 years of age entitled to that pay shall be adjusted 
in accordance with this paragraph instead of paragraph 
(2) or (3). 
‘‘(B) CPI MINUS ONE.—If the percent determined under 
paragraph (2) is greater than 1 percent, the Secretary 
shall increase the retired pay of each member and former 
member by the difference between— 
‘‘(i) the percent determined under paragraph (2); 
and 
‘‘(ii) 1 percent. 
‘‘(C) NO NEGATIVE ADJUSTMENT.—If the percent deter-
mined under paragraph (2) is equal to or less than 1 
percent, the Secretary shall not increase the retired pay 
of members and former members under this paragraph. 
‘‘(D) REVISED ADJUSTMENT UPON REACHING AGE 62.— 
When a member or former member whose retired pay 
has been subject to adjustment under this paragraph 
becomes 62 years of age, the Secretary of Defense shall 
recompute the retired pay of the member or former 
member, to be effective on the date of the next adjustment 
of retired pay under this subsection, so as to be the amount 
equal to the amount of retired pay to which the member 
or former member would be entitled on that date if 
increases in the retired pay of the member or former 
member had been computed as provided in paragraph (2) 
or as specified in section 1410 of this title, as applicable, 
rather than this paragraph. 
‘‘(E) INAPPLICABILITY OF CATCH-UP RULE.—Paragraph 
(5) shall not apply in the case of adjustments made, or 
not made, as a result of application of this paragraph.’’. 
(b) RESTORAL
OF FULL RETIREMENT AMOUNT
AT AGE 62.— 
Section 1410(1) of title 10, United States Code, is amended by 
striking ‘‘paragraph (3)’’ and inserting ‘‘paragraph (3) or (4)’’. 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall take effect on December 1, 2015. 
TITLE V—HIGHER EDUCATION 
SEC. 501. DEFAULT REDUCTION PROGRAM. 
Effective July 1, 2014, section 428F(a)(1) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1078–6(a)(1)) is amended—
H. J. Res. 59—23 
(1) in subparagraph (A), by striking clause (ii) and inserting 
the following: 
‘‘(ii) beginning July 1, 2014, assign the loan to 
the Secretary if the guaranty agency has been unable 
to sell the loan under clause (i).’’; and 
(2) in subparagraph (D), by striking clause (i) and inserting 
the following: 
‘‘(i) the guaranty agency— 
‘‘(I) shall, in the case of a sale made on or 
after July 1, 2014, repay the Secretary 100 percent 
of the amount of the principal balance outstanding 
at the time of such sale, multiplied by the reinsur-
ance percentage in effect when payment under 
the guaranty agreement was made with respect 
to the loan; and 
‘‘(II) may, in the case of a sale made on or 
after July 1, 2014, in order to defray collection 
costs— 
‘‘(aa) charge to the borrower an amount 
not to exceed 16 percent of the outstanding 
principal and interest at the time of the loan 
sale; and 
‘‘(bb) retain such amount from the pro-
ceeds of the loan sale; and’’. 
SEC. 502. ELIMINATION OF NONPROFIT SERVICING CONTRACTS. 
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) 
is amended— 
(1) in section 456 (20 U.S.C. 1087f)— 
(A) in subsection (a), by striking paragraph (4); and 
(B) by striking subsection (c); and 
(2) in section 458(a) (20 U.S.C. 1087h(a)), by striking para-
graph (2). 
TITLE VI—TRANSPORTATION 
SEC. 601. AVIATION SECURITY SERVICE FEES. 
(a) AIR CARRIER FEES.— 
(1) REPEAL.—Section 44940(a)(2) of title 49, United States 
Code, is repealed. 
(2) CONFORMING AMENDMENT.—Section 44940(d)(1) of such 
title is amended by striking ‘‘, and may impose a fee under 
subsection (a)(2),’’. 
(3) EFFECTIVE DATE.—The repeal made by paragraph (1) 
and the amendment made by paragraph (2) shall each take 
effect on October 1, 2014. 
(b) RESTRUCTURING OF PASSENGER FEE.—Section 44940(c) of 
such title is amended to read as follows: 
‘‘(c) LIMITATION ON FEE.—Fees imposed under subsection (a)(1) 
shall be $5.60 per one-way trip in air transportation or intrastate 
air transportation that originates at an airport in the United 
States.’’. 
(c) DEPOSIT OF RECEIPTS IN GENERAL FUND.—Section 44940(i) 
of such title is amended to read as follows: 
‘‘(i) DEPOSIT OF RECEIPTS IN GENERAL FUND.—
H. J. Res. 59—24 
‘‘(1) IN GENERAL.—Beginning in fiscal year 2014, out of 
fees received in a fiscal year under subsection (a)(1), after 
amounts are made available in the fiscal year under section 
44923(h), the next funds derived from such fees in the fiscal 
year, in the amount specified for the fiscal year in paragraph 
(4), shall be credited as offsetting receipts and deposited in 
the general fund of the Treasury. 
‘‘(2) FEE
LEVELS.—The Secretary of Homeland Security 
shall impose the fee authorized by subsection (a)(1) so as to 
collect in a fiscal year at least the amount specified in para-
graph (4) for the fiscal year for making deposits under para-
graph (1). 
‘‘(3) RELATIONSHIP TO OTHER PROVISIONS.—Subsections (b) 
and (f) shall not apply to amounts to be used for making 
deposits under this subsection. 
‘‘(4) FISCAL YEAR AMOUNTS.—For purposes of paragraphs 
(1) and (2), the fiscal year amounts are as follows: 
‘‘(A) $390,000,000 for fiscal year 2014. 
‘‘(B) $1,190,000,000 for fiscal year 2015. 
‘‘(C) $1,250,000,000 for fiscal year 2016. 
‘‘(D) $1,280,000,000 for fiscal year 2017. 
‘‘(E) $1,320,000,000 for fiscal year 2018. 
‘‘(F) $1,360,000,000 for fiscal year 2019. 
‘‘(G) $1,400,000,000 for fiscal year 2020. 
‘‘(H) $1,440,000,000 for fiscal year 2021. 
‘‘(I) $1,480,000,000 for fiscal year 2022. 
‘‘(J) $1,520,000,000 for fiscal year 2023.’’. 
(d) IMPOSITION OF FEE INCREASE.—The Secretary of Homeland 
Security shall implement the fee increase authorized by the amend-
ment made by subsection (b)— 
(1) beginning on July 1, 2014; and 
(2) through the publication of notice of such fee in the 
Federal Register, notwithstanding section 9701 of title 31, 
United States Code, and the procedural requirements of section 
553 of title 5, United States Code. 
(e) CONTINUED AVAILABILITY
OF EXISTING BALANCES.—The 
amendments made by this section shall not affect the availability 
of funds made available under section 44940(i) of title 49, United 
States Code, before the date of enactment of this Act. 
SEC. 602. TRANSPORTATION COST REIMBURSEMENT. 
(a) REPEAL.—Sections 55316 and 55317 of chapter 553 of title 
46, United States Code, are repealed. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of sections 
at the beginning of chapter 553 of title 46, United States Code, 
is amended by striking the items relating to section 55316 and 
55317. 
SEC. 603. STERILE AREAS AT AIRPORTS. 
Section 44903 of title 49, United States Code, is amended 
by adding at the end the following: 
‘‘(n) PASSENGER EXIT POINTS FROM STERILE AREA.— 
‘‘(1) IN
GENERAL.—The Secretary of Homeland Security 
shall ensure that the Transportation Security Administration 
is responsible for monitoring passenger exit points from the 
sterile area of airports at which the Transportation Security 
Administration provided such monitoring as of December 1, 
2013.
H. J. Res. 59—25 
‘‘(2) STERILE
AREA
DEFINED.—In this section, the term 
‘sterile area’ has the meaning given that term in section 1540.5 
of title 49, Code of Federal Regulations (or any corresponding 
similar regulation or ruling).’’. 
TITLE VII—MISCELLANEOUS 
PROVISIONS 
SEC. 701. EXTENSION OF CUSTOMS USER FEES. 
Section 13031(j)(3) of the Consolidated Omnibus Budget Rec-
onciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended— 
(1) in subparagraph (A), by striking ‘‘October 22, 2021’’ 
and inserting ‘‘September 30, 2023’’; and 
(2) in subparagraph (B)(i), by striking ‘‘October 29, 2021’’ 
and inserting ‘‘September 30, 2023’’. 
SEC. 702. LIMITATION ON ALLOWABLE GOVERNMENT CONTRACTOR 
COMPENSATION COSTS. 
(a) LIMITATION.— 
(1) CIVILIAN CONTRACTS.—Section 4304(a)(16) of title 41, 
United States Code, is amended to read as follows: 
‘‘(16) Costs of compensation of contractor and subcontractor 
employees for a fiscal year, regardless of the contract funding 
source, to the extent that such compensation exceeds $487,000 
per year, adjusted annually to reflect the change in the Employ-
ment Cost Index for all workers, as calculated by the Bureau 
of Labor Statistics, except that the head of an executive agency 
may establish one or more narrowly targeted exceptions for 
scientists, engineers, or other specialists upon a determination 
that such exceptions are needed to ensure that the executive 
agency has continued access to needed skills and capabilities.’’. 
(2) DEFENSE CONTRACTS.—Section 2324(e)(1)(P) of title 10, 
United States Code, is amended to read as follows: 
‘‘(P) Costs of compensation of contractor and subcon-
tractor employees for a fiscal year, regardless of the con-
tract funding source, to the extent that such compensation 
exceeds $487,000 per year, adjusted annually to reflect 
the change in the Employment Cost Index for all workers, 
as calculated by the Bureau of Labor Statistics, except 
that the head of an executive agency may establish one 
or more narrowly targeted exceptions for scientists, engi-
neers, or other specialists upon a determination that such 
exceptions are needed to ensure that the executive agency 
has continued access to needed skills and capabilities.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) REPEAL.—Section 1127 of title 41, United States Code, 
is hereby repealed. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 11 of title 41, United States Code, is 
amended by striking the item relating to section 1127. 
(c) APPLICABILITY.—This section and the amendments made 
by this section shall apply only with respect to costs of compensation 
incurred under contracts entered into on or after the date that 
is 180 days after the date of the enactment of this Act. 
(d) REPORTS.—
H. J. Res. 59—26 
(1) IN GENERAL.—Not later than 60 days after the end 
of each fiscal year, the Director of the Office of Management 
and Budget shall submit a report on contractor compensation 
to— 
(A) the Committee on Armed Services of the Senate; 
(B) the Committee on Armed Services of the House 
of Representatives; 
(C) the Committee on Homeland Security and Govern-
mental Affairs of the Senate; 
(D) the Committee on Oversight and Government 
Reform of the House of Representatives; 
(E) the Committee on Appropriations of the Senate; 
and 
(F) the Committee on Appropriations of the House 
of Representatives. 
(2) ELEMENTS.—The report required under paragraph (1) 
shall include— 
(A) the total number of contractor employees, by execu-
tive agency, in the narrowly targeted exception positions 
described under subsection (a) during the preceding fiscal 
year; 
(B) 
the 
taxpayer-funded 
compensation 
amounts 
received by each contractor employee in a narrowly targeted 
exception position during such fiscal year; and 
(C) the duties and services performed by contractor 
employees in the narrowly targeted exception positions 
during such fiscal year. 
(e) REVIEW.—Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense and the Director 
of the Office of Management and Budget shall report to Congress 
on alternative benchmarks and industry standards for compensa-
tion, including whether any such benchmarks or standards would 
provide a more appropriate measure of allowable compensation 
for the purposes of section 2324(e)(1)(P) of title 10, United States 
Code, and section 4304(a)(16) of title 41, United States Code, as 
amended by this Act. 
SEC. 703. PENSION BENEFIT GUARANTY CORPORATION PREMIUM 
RATE INCREASES. 
(a) FLAT-RATE PREMIUM INCREASES.—Section 4006(a)(3)(A)(i) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(A)(i)) is amended— 
(1) in subclause (II), by striking ‘‘and’’ at the end; 
(2) in subclause (III), by inserting ‘‘and before January 
1, 2015,’’ after ‘‘December 31, 2013’’; and 
(3) by inserting after subclause (III) the following: 
‘‘(IV) for plan years beginning after December 31, 2014, 
and before January 1, 2016, $57; and 
‘‘(V) for plan years beginning after December 31, 2015, 
and before January 1, 2017, $64.’’. 
(b) FLAT-RATE PREMIUM RATE INDEXED TO WAGES.— 
(1) IN GENERAL.—Section 4006(a)(3) of such Act (29 U.S.C. 
1306(a)(3)) is amended— 
(A) by redesignating subparagraphs (G) through (J) 
as subparagraphs (H) through (K), respectively; and 
(B) by inserting after subparagraph (F) the following:
H. J. Res. 59—27 
‘‘(G) For each plan year beginning in a calendar year after 
2016, there shall be substituted for the premium rate specified 
in clause (i) of subparagraph (A) an amount equal to the greater 
of— 
‘‘(i) the product derived by multiplying the premium rate 
specified in clause (i) of subparagraph (A) by the ratio of— 
‘‘(I) the national average wage index (as defined in 
section 209(k)(1) of the Social Security Act) for the first 
of the 2 calendar years preceding the calendar year in 
which such plan year begins, to 
‘‘(II) the national average wage index (as so defined) 
for 2014; and 
‘‘(ii) the premium rate in effect under clause (i) of subpara-
graph (A) for plan years beginning in the preceding calendar 
year. 
If the amount determined under this subparagraph is not a multiple 
of $1, such product shall be rounded to the nearest multiple of 
$1.’’. 
(2) CONFORMING
AMENDMENTS.—Section 4006(a)(3)(F) of 
such Act (29 U.S.C. 1306(a)(3)(F)) is amended— 
(A) in the matter before clause (i), by inserting ‘‘and 
before 2013’’ after ‘‘after 2006’’; and 
(B) in the flush text following clause (ii), by striking 
the second sentence. 
(c) VARIABLE RATE PREMIUM INCREASES.— 
(1) IN
GENERAL.—Section 4006(a)(8)(C) of such Act (29 
U.S.C. 1306(a)(8)(C)) is amended— 
(A) in clause (i), by striking ‘‘and’’ at the end; 
(B) in clause (ii), by striking ‘‘$5.’’ and inserting ‘‘$10; 
and’’; and 
(C) by adding at the end the following: 
‘‘(iii) in the case of plan years beginning in calendar 
year 2016, by $5.’’. 
(2) CONFORMING AMENDMENTS.—Section 4006(a)(8) of such 
Act (29 U.S.C. 1306(a)(8)) is amended— 
(A) in subparagraph (A)— 
(i) in clause (ii), by striking ‘‘and’’ at the end; 
(ii) in clause (iii), by striking the period at the 
end and inserting ‘‘; and’’; and 
(iii) by adding at the end the following: 
‘‘(iv) for plan years beginning after calendar year 
2016, the amount in effect for plan years beginning 
in 2016 (determined after application of subparagraph 
(C)).’’; and 
(B) in subparagraph (D)— 
(i) in clause (ii), by striking ‘‘and’’ at the end; 
(ii) in clause (iii), by striking the period at the 
end and inserting ‘‘; and’’; and 
(iii) by adding at the end the following: 
‘‘(iv) 2014, in the case of plan years beginning 
after calendar year 2016.’’. 
(d) INCREASE IN VARIABLE RATE PREMIUM CAP.— 
(1) IN GENERAL.—Section 4006(a)(3)(E)(i) of such Act (29 
U.S.C. 1306(a)(3)(E)(i)) is amended— 
(A) in subclause (I), by striking ‘‘and’’ at the end; 
(B) in subclause (II)—
H. J. Res. 59—28 
(i) by inserting ‘‘and before 2016’’ after ‘‘2012’’; 
and 
(ii) by striking the period at the end and inserting 
‘‘and’’; and 
(C) by adding at the end the following: 
‘‘(III) in the case of plan years beginning in a calendar 
year after 2015, shall not exceed $500.’’. 
(2) INDEX TO WAGES.—Section 4006(a)(3) of such Act (29 
U.S.C. 1306(a)(3)) is amended— 
(A) in subparagraph (K) (as redesignated by subsection 
(b)(1)(A)), by inserting ‘‘and before 2016’’ after ‘‘2013’’; and 
(B) by inserting at the end the following: 
‘‘(L) For each plan year beginning in a calendar year after 
2016, there shall be substituted for the dollar amount specified 
in subclause (III) of subparagraph (E)(i) an amount equal to the 
greater of— 
‘‘(i) the product derived by multiplying such dollar amount 
by the ratio of— 
‘‘(I) the national average wage index (as defined in 
section 209(k)(1) of the Social Security Act) for the first 
of the 2 calendar years preceding the calendar year in 
which such plan year begins, to 
‘‘(II) the national average wage index (as so defined) 
for 2014; and 
‘‘(ii) such dollar amount for plan years beginning in the 
preceding calendar year. 
If the amount determined under this subparagraph is not a multiple 
of $1, such product shall be rounded to the nearest multiple of 
$1.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to plan years beginning after December 31, 2013. 
SEC. 704. CANCELLATION OF UNOBLIGATED BALANCES. 
(a) DEPARTMENT OF JUSTICE ASSETS FORFEITURE FUND.—Effec-
tive on the date of enactment of this Act, of the unobligated balances 
available under the Department of Justice Assets Forfeiture Fund, 
$693,000,000 are permanently cancelled. 
(b) TREASURY FORFEITURE FUND.—Effective on the date of 
enactment of this Act, of the unobligated balances available under 
the Department of the Treasury Forfeiture Fund, $867,000,000, 
are permanently cancelled. 
SEC. 705. CONSERVATION PLANNING TECHNICAL ASSISTANCE USER 
FEES. 
(a) USER FEES AUTHORIZED.—Section 3 of the Soil Conservation 
and Domestic Allotment Act (16 U.S.C. 590c) is amended— 
(1) by striking ‘‘require—’’ and inserting ‘‘require the fol-
lowing:’’; 
(2) in paragraph (1), by striking the semicolon at the end 
and inserting a period; 
(3) in paragraph (2), by striking ‘‘; and’’ at the end and 
inserting a period; and 
(4) by adding at the end the following: 
‘‘(4)(A) The payment of user fees for conservation planning 
technical assistance if the Secretary determines that the fees, sub-
ject to subparagraph (B), are— 
‘‘(i) reasonable and appropriate;
H. J. Res. 59—29 
‘‘(ii) assessed for conservation planning technical assistance 
resulting in the development of a conservation plan; and 
‘‘(iii) assessed based on the size of the land or the com-
plexity of the resource issues involved. 
‘‘(B) Fees under subparagraph (A) may not exceed $150 per 
conservation plan for which technical assistance is provided. 
‘‘(C) The Secretary may waive fees otherwise required under 
subparagraph (A) in the case of conservation planning technical 
assistance provided— 
‘‘(i) to beginning farmers or ranchers (as defined in section 
343(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1991(a)); 
‘‘(ii) to limited resource farmers or ranchers (as defined 
by the Secretary); 
‘‘(iii) to socially disadvantaged farmers or ranchers (as 
defined in section 355(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2003(e)); 
‘‘(iv) to qualify for an exemption from ineligibility under 
section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812); 
or 
‘‘(v) to comply with Federal, State, or local regulatory 
requirements.’’. 
(b) CONSERVATION TECHNICAL ASSISTANCE FUND.—Section 6 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590f) is amended— 
(1) by striking ‘‘SEC. 6.’’ and all that follows through ‘‘There 
are hereby authorized’’ and inserting the following: 
‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS AND CONSERVATION 
TECHNICAL ASSISTANCE FUNDS. 
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized’’; 
and 
(2) by adding at the end the following: 
‘‘(b) CONSERVATION TECHNICAL ASSISTANCE FUND.— 
‘‘(1) IN GENERAL.—There is established in the Treasury 
of the United States a fund to be known as the ‘Conservation 
Technical Assistance Fund’ (referred to in this subsection as 
the ‘Fund’), to be administered by the Secretary of Agriculture. 
‘‘(2) DEPOSITS.—An amount equal to the amounts collected 
as fees under section 3(4) and late payments, interest, and 
such other amounts as are authorized to be collected pursuant 
to section 3717 of title 31, United States Code, shall be depos-
ited in the Fund. 
‘‘(3) AVAILABILITY.—Amounts in the Fund shall— 
‘‘(A) only be available to the extent and in the amount 
provided in advance in appropriations Acts; 
‘‘(B) be used for the costs of carrying out this Act; 
and 
‘‘(C) remain available until expended.’’. 
SEC. 706. SELF PLUS ONE COVERAGE. 
(a) ELECTION OF COVERAGE.—Section 8905 of title 5, United 
States Code, is amended— 
(1) by striking subsection (a) and inserting the following: 
‘‘(a) An employee may enroll in an approved health benefits 
plan described in section 8903 or 8903a— 
‘‘(1) as an individual; 
‘‘(2) for self plus one; or
H. J. Res. 59—30 
‘‘(3) for self and family.’’; 
(2) in subsection (c)— 
(A) in paragraph (1), in the matter following subpara-
graph (B), by inserting ‘‘for self plus one or’’ before ‘‘self 
and family as provided in paragraph (2) of this subsection’’; 
and 
(B) in paragraph (2)— 
(i) in the matter preceding subparagraph (A), by 
inserting ‘‘for self plus one or’’ before ‘‘for self and 
family’’; and 
(ii) in subparagraph (B), by inserting ‘‘(or, in the 
case of self plus one coverage, not more than 1 such 
child)’’ after ‘‘adopted children’’; 
(3) in subsection (e), by striking ‘‘or each spouse may enroll 
as an individual’’ and inserting ‘‘or for a self plus one enrollment 
that covers the spouse, or each spouse may enroll as an indi-
vidual or for a self plus one enrollment that does not cover 
the other spouse or a child who is covered under the enrollment 
of the other spouse’’; and 
(4) in subsection (h)— 
(A) by striking ‘‘self and family enrollment’’ each place 
it appears and inserting ‘‘self plus one or self and family 
enrollment, as necessary to provide health insurance cov-
erage for each child who is covered under the order,’’; 
(B) by striking ‘‘a child’’ each place it appears and 
inserting ‘‘1 or more children’’; 
(C) by striking ‘‘the child resides’’ each place it appears 
and inserting ‘‘the child or children reside’’; 
(D) in paragraph (1), by striking ‘‘self and family cov-
erage’’ each place it appears and inserting ‘‘self plus one 
or self and family coverage, as necessary to provide health 
insurance coverage for each child who is covered under 
the order,’’; and 
(E) in paragraph (3), by striking ‘‘the child continues’’ 
and inserting ‘‘the child or children continue’’. 
(b) CONTINUED COVERAGE.—Section 8905a of title 5, United 
States Code, is amended— 
(1) in subsection (d)(3)(A), by inserting ‘‘for self plus one 
or’’ before ‘‘for self and family’’; and 
(2) in subsection (f)(3)(A), by striking ‘‘for self and family 
based on such person’s separation from service’’ and inserting 
‘‘based on such person’s separation from service under a self 
plus one enrollment that covered the individual or under a 
self and family enrollment’’. 
(c) CONTRIBUTIONS.—Section 8906(a)(1) of title 5, United States 
Code is amended— 
(1) in subparagraph (A), by striking at the end ‘‘and’’; 
(2) by redesignating subparagraph (B) as subparagraph 
(C); and 
(3) by inserting after subparagraph (A) the following: 
‘‘(B) enrollments under this chapter for self plus one; and’’. 
(d) WEIGHTED AVERAGE FOR FIRST YEAR.—For the first contract 
year for which an employee may enroll for self plus one coverage 
under chapter 89 of title 5, United States Code, the Office of 
Personnel Management shall determine the weighted average of 
the subscription charges that will be in effect for the contract
H. J. Res. 59—31 
year for enrollments for self plus one under such chapter based 
on an actuarial analysis. 
DIVISION B—MEDICARE AND OTHER 
HEALTH PROVISIONS 
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the ‘‘Pathway 
for SGR Reform Act of 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents of this division 
is as follows: 
DIVISION B—MEDICARE AND OTHER HEALTH PROVISIONS 
Sec. 1001. Short title; table of contents. 
Sec. 1002. Findings; purpose statement. 
TITLE I—MEDICARE EXTENDERS 
Sec. 1101. Physician payment update. 
Sec. 1102. Extension of work GPCI floor. 
Sec. 1103. Extension of therapy cap exceptions process. 
Sec. 1104. Extension of ambulance add-ons. 
Sec. 1105. Medicare inpatient hospital payment adjustment for low-volume hos-
pitals. 
Sec. 1106. Medicare-dependent hospital (MDH) program. 
Sec. 1107. 1-year extension of authorization for special needs plans. 
Sec. 1108. 1-year extension of Medicare reasonable cost contracts. 
Sec. 1109. Extension of existing funding for contract with consensus-based entity. 
Sec. 1110. Extension of funding outreach and assistance for low-income programs. 
TITLE II—OTHER HEALTH PROVISIONS 
Sec. 1201. Extension of the qualifying individual (QI) program. 
Sec. 1202. Temporary extension of transitional medical assistance (TMA). 
Sec. 1203. Extension of funding for family-to-family health information centers. 
Sec. 1204. Delay of reductions to Medicaid DSH allotments. 
Sec. 1205. Realignment of the Medicare sequester for fiscal year 2023. 
Sec. 1206. Payment for inpatient services in long-term care hospitals (LTCHs). 
SEC. 1002. FINDINGS; PURPOSE STATEMENT. 
In order to support the provision of quality care for our nation’s 
seniors, Congress finds it appropriate to reform physician 
reimbursements under the Medicare program. SGR reform legisla-
tion provides such an opportunity, but not until next year. In 
order to facilitate such reform, Congress finds that the Centers 
for Medicare & Medicaid Services should continue to focus its 
efforts on the following areas: 
(1) SIMPLIFY
AND
REDUCE
ADMINISTRATIVE
BURDEN
ON 
PHYSICIANS.—The application and assessment of measures and 
other activities under SGR reform should be facilitated by 
the Centers for Medicare and Medicaid Services (CMS) in a 
way that accounts for the administrative burden such measure-
ment places on physicians. Therefore, the Congress encourages 
CMS to identify and implement, to the extent practicable, 
mechanisms to ensure that the application and assessment 
of measures be coordinated across programs. 
(2) TIMELY
FEEDBACK
FOR
PHYSICIANS.—In order for 
measure and assessment programs to encourage the highest 
quality care for Medicare seniors, the Congress finds it critical 
that CMS provide physicians with feedback on performance 
in as close to real time as possible. Such timely feedback 
will ensure that physicians can excel under a system of mean-
ingful measurement.
H. J. Res. 59—32 
(3) ENCOURAGE DEVELOPMENT OF NEW MODELS.—There is 
great need to test alternatives to Fee-For-Service reimburse-
ment in the Medicare program. One option is the promotion 
and adoption of new models of care for physicians. To date, 
there has been significant development and testing of models 
for primary care. Congress supports these efforts and encour-
ages them to continue in the future. Congress also encourages 
the development and testing of models of specialty care. 
TITLE I—MEDICARE EXTENDERS 
SEC. 1101. PHYSICIAN PAYMENT UPDATE. 
Section 1848(d) of the Social Security Act (42 U.S.C. 10 1395w– 
4(d)) is amended by adding at the end the following new paragraph: 
‘‘(15) UPDATE
FOR
JANUARY
THROUGH
MARCH
OF
2014.— 
‘‘(A) IN GENERAL.—Subject to paragraphs (7)(B), (8)(B), 
(9)(B), (10)(B), (11)(B), (12)(B), (13)(B), and (14)(B), in lieu 
of the update to the single conversion factor established 
in paragraph (1)(C) that would otherwise apply for 2014 
for the period beginning on January 1, 2014, and ending 
on March 31, 2014, the update to the single conversion 
factor shall be 0.5 percent. 
‘‘(B) NO
EFFECT
ON
COMPUTATION
OF
CONVERSION 
FACTOR FOR REMAINING PORTION OF 2014 AND SUBSEQUENT 
YEARS.—The conversion factor under this subsection shall 
be computed under paragraph (1)(A) for the period begin-
ning on April 1, 2014, and ending on December 31, 2014, 
and for 2015 and subsequent years as if subparagraph 
(A) had never applied.’’. 
SEC. 1102. EXTENSION OF WORK GPCI FLOOR. 
Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
1395w–4(e)(1)(E)) is amended by striking ‘‘January 1, 2014’’ and 
inserting ‘‘April 1, 2014’’. 
SEC. 1103. EXTENSION OF THERAPY CAP EXCEPTIONS PROCESS. 
Section 1833(g) of the Social Security Act (42 U.S.C. 1395l(g)) 
is amended— 
(1) in paragraph (5)(A), in the first sentence, by striking 
‘‘December 31, 2013’’ and inserting ‘‘March 31, 2014’’; and 
(2) in paragraph (6)(A)— 
(A) by striking ‘‘December 31, 2013’’ and inserting 
‘‘March 31, 2014’’; and 
(B) by striking ‘‘or 2013’’ and inserting ‘‘, 2013, or 
the first three months of 2014’’. 
SEC. 1104. EXTENSION OF AMBULANCE ADD-ONS. 
(a) GROUND AMBULANCE.—Section 1834(l)(13)(A) of the Social 
Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended— 
(1) in the matter preceding clause (i), by striking ‘‘January 
1, 2014’’ and inserting ‘‘April 1, 2014’’; and 
(2) in each of clauses (i) and (ii), by striking ‘‘January 
1, 2014’’ and inserting ‘‘April 1, 2014’’ each place it appears. 
(b) SUPER RURAL GROUND AMBULANCE.—Section 1834(l)(12)(A) 
of the Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended 
by striking ‘‘January 1, 2014’’ and inserting ‘‘April 1, 2014’’.
H. J. Res. 59—33 
SEC. 1105. MEDICARE INPATIENT HOSPITAL PAYMENT ADJUSTMENT 
FOR LOW-VOLUME HOSPITALS. 
Section 1886(d)(12) of the Social Security Act (42 U.S.C. 
1395ww(d)(12)) is amended— 
(1) in subparagraph (B), in the matter preceding clause 
(i), by striking ‘‘fiscal year 2014 and subsequent fiscal years’’ 
and inserting ‘‘the portion of fiscal year 2014 beginning on 
April 1, 2014, fiscal year 2015, and subsequent fiscal years’’; 
(2) in subparagraph (C)(i)— 
(A) by inserting ‘‘and the portion of fiscal year 2014 
before’’ after ‘‘and 2013,’’ each place it appears; and 
(B) by inserting ‘‘or portion of fiscal year’’ after ‘‘during 
the fiscal year’’; and 
(3) in subparagraph (D)— 
(A) by inserting ‘‘and the portion of fiscal year 2014 
before April 1, 2014,’’ after ‘‘and 2013,’’; and 
(B) by inserting ‘‘or the portion of fiscal year’’ after 
‘‘in the fiscal year’’. 
SEC. 1106. MEDICARE-DEPENDENT HOSPITAL (MDH) PROGRAM. 
(a) IN GENERAL.—Section 1886(d)(5)(G) of the Social Security 
Act (42 U.S.C. 1395ww(d)(5)(G)) is amended— 
(1) in clause (i), by striking ‘‘October 1, 2013’’ and inserting 
‘‘April 1, 2014’’; and 
(2) in clause (ii)(II), by striking ‘‘October 1, 2013’’ and 
inserting ‘‘April 1, 2014’’. 
(b) CONFORMING AMENDMENTS.— 
(1) EXTENSION OF TARGET AMOUNT.—Section 1886(b)(3)(D) 
of the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is 
amended— 
(A) in the matter preceding clause (i), by striking 
‘‘October 1, 2013’’ and inserting ‘‘April 1, 2014’’; and 
(B) in clause (iv), by inserting ‘‘and the portion of 
fiscal year 2014 before April 1, 2014’’ after ‘‘through fiscal 
year 2013’’. 
(2) PERMITTING HOSPITALS TO DECLINE RECLASSIFICATION.— 
Section 13501(e)(2) of the Omnibus Budget Reconciliation Act 
of 1993 (42 U.S.C. 1395ww note) is amended by striking 
‘‘through fiscal year 2013’’ and inserting ‘‘through the first 
2 quarters of fiscal year 2014’’. 
SEC. 1107. 1-YEAR EXTENSION OF AUTHORIZATION FOR SPECIAL 
NEEDS PLANS. 
Section 1859(f)(1) of the Social Security Act (42 U.S.C. 1395w– 
28(f)(1)) is amended by striking ‘‘2015’’ and inserting ‘‘2016’’. 
SEC. 1108. 1-YEAR EXTENSION OF MEDICARE REASONABLE COST CON-
TRACTS. 
Section 1876(h)(5)(C)(ii) of the Social Security Act (42 U.S.C. 
1395mm(h)(5)(C)(ii)) is amended, in the matter preceding subclause 
(I), by striking ‘‘January 1, 2014’’ and inserting ‘‘January 1, 2015’’. 
SEC. 1109. EXTENSION OF EXISTING FUNDING FOR CONTRACT WITH 
CONSENSUS-BASED ENTITY. 
Section 1890(d) of the Social Security Act (42 U.S.C. 1395aaa(d)) 
is amended by adding at the end the following new sentence: 
‘‘Amounts transferred under the preceding sentence shall remain 
available until expended.’’.
H. J. Res. 59—34 
SEC. 1110. EXTENSION OF FUNDING OUTREACH AND ASSISTANCE FOR 
LOW-INCOME PROGRAMS. 
(a) ADDITIONAL FUNDING FOR STATE HEALTH INSURANCE PRO-
GRAMS.—Subsection (a)(1)(B) of section 119 of the Medicare 
Improvements for Patients and Providers Act of 2008 (42 U.S.C. 
1395b–3 note), as amended by section 3306 of the Patient Protection 
and Affordable Care Act Public Law 111–148) and section 610 
of the American Taxpayer Relief Act of 2012 (Public Law 112– 
240), is amended— 
(1) in clause (ii), by striking ‘‘and’’ at the end; 
(2) in clause (iii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (iii) the following new clause: 
‘‘(iv) for the portion of fiscal year 2014 before April 
1, 2014, of $3,750,000.’’. 
(b) ADDITIONAL FUNDING
FOR AREA AGENCIES
ON AGING.— 
Subsection (b)(1)(B) of such section 119, as so amended, is 
amended— 
(1) in clause (ii), by striking ‘‘and’’ at the end; 
(2) in clause (iii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (iii) the following new clause: 
‘‘(iv) for the portion of fiscal year 2014 before April 
1, 2014, of $3,750,000.’’. 
(c) ADDITIONAL FUNDING FOR AGING AND DISABILITY RESOURCE 
CENTERS.—Subsection (c)(1)(B) of such section 119, as so amended, 
is amended— 
(1) in clause (ii), by striking ‘‘and’’ at the end; 
(2) in clause (iii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (iii) the following new clause: 
‘‘(iv) for the portion of fiscal year 2014 before April 
1, 2014, of $2,500,000.’’. 
(d) ADDITIONAL FUNDING FOR CONTRACT WITH THE NATIONAL 
CENTER FOR BENEFITS AND OUTREACH ENROLLMENT.—Subsection 
(d)(2) of such section 119, as so amended, is amended— 
(1) in clause (ii), by striking ‘‘and’’ at the end; 
(2) in clause (iii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by inserting after clause (iii) the following new clause: 
‘‘(iv) for the portion of fiscal year 2014 before April 
1, 2014, of $2,500,000.’’. 
TITLE II—OTHER HEALTH PROVISIONS 
SEC. 1201. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PRO-
GRAM. 
(a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking 
‘‘December 2013’’ and inserting ‘‘March 2014’’. 
(b) EXTENDING TOTAL AMOUNT AVAILABLE FOR ALLOCATION.— 
Section 1933(g) of the Social Security Act (42 U.S.C. 1396u–3(g)) 
is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (S), by striking ‘‘and’’ after the 
semicolon;
H. J. Res. 59—35 
(B) in subparagraph (T), by striking the period at the 
end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(U) for the period that begins on January 1, 2014, 
and ends on March 31, 2014, the total allocation amount 
is $200,000,000.’’. 
SEC. 1202. TEMPORARY EXTENSION OF TRANSITIONAL MEDICAL 
ASSISTANCE (TMA). 
Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act 
(42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are each amended by striking 
‘‘December 31, 2013’’ and inserting ‘‘March 31, 2014’’. 
SEC. 1203. EXTENSION OF FUNDING FOR FAMILY-TO-FAMILY HEALTH 
INFORMATION CENTERS. 
Section 501(c)(1)(A) of the Social Security Act (42 U.S.C. 
701(c)(1)(A)) is amended— 
(1) in clause (ii), by striking at the end ‘‘and’’; 
(2) in clause (iii), by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following new clause: 
‘‘(iv) $2,500,000 for the portion of fiscal year 2014 
before April 1, 2014.’’. 
SEC. 1204. DELAY OF REDUCTIONS TO MEDICAID DSH ALLOTMENTS. 
(a) IN GENERAL.—Section 1923(f) of the Social Security Act 
(42 U.S.C. 1396r–4(f)) is amended— 
(1) in paragraph (7)(A)— 
(A) in clause (i), by striking ‘‘2014’’ and inserting 
‘‘2016’’; and 
(B) in clause (ii)— 
(i) by striking subclauses (I) and (II); 
(ii) by redesignating subclauses (III) through (VII) 
as subclauses (I) through (V), respectively; and 
(iii) in subclause (I) (as redesignated by clause 
(ii)), 
by 
striking 
‘‘$600,000,000’’ 
and 
inserting 
‘‘$1,200,000,000’’; and 
(2) in paragraph (8)— 
(A) by redesignating subparagraph (C) as subpara-
graph (D); 
(B) by inserting after subparagraph (B) the following 
new subparagraph: 
‘‘(C) FISCAL
YEAR
2023.—Only with respect to fiscal 
year 2023, the DSH allotment for a State, in lieu of the 
amount determined under paragraph (3) for the State for 
that year, shall be equal to the DSH allotment for the 
State for fiscal year 2022, as determined under subpara-
graph (B), increased, subject to subparagraphs (B) and 
(C) of paragraph (3), and paragraph (5), by the percentage 
change in the consumer price index for all urban consumers 
(all items; U.S. city average), for fiscal year 2022.’’; and 
(C) in subparagraph (D) (as redesignated by subpara-
graph (A)), by striking ‘‘fiscal year 2022’’ and inserting 
‘‘fiscal year 2023’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall be effective as of October 1, 2013.
H. J. Res. 59—36 
SEC. 1205. REALIGNMENT OF THE MEDICARE SEQUESTER FOR FISCAL 
YEAR 2023. 
Paragraph (6) (relating to implementing direct spending reduc-
tions, as redesignated by section 101(d)(2)(C), and as amended 
by section 101(c), of the Bipartisan Budget Act of 2013) of section 
251A of the Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 901a) is amended by adding at the end the 
following new subparagraph: 
‘‘(C) Notwithstanding the 2 percent limit specified in 
subparagraph (A) for payments for the Medicare programs 
specified in section 256(d), the sequestration order of the Presi-
dent under such subparagraph for fiscal year 2023 shall be 
applied to such payments so that— 
‘‘(i) with respect to the first 6 months in which such 
order is effective for such fiscal year, the payment reduction 
shall be 2.90 percent; and 
‘‘(ii) with respect to the second 6 months in which 
such order is so effective for such fiscal year, the payment 
reduction shall be 1.11 percent.’’. 
SEC. 1206. PAYMENT FOR INPATIENT SERVICES IN LONG-TERM CARE 
HOSPITALS (LTCHS). 
(a) ESTABLISHMENT OF CRITERIA FOR APPLICATION OF SITE NEU-
TRAL PAYMENT.— 
(1) IN GENERAL.—Section 1886(m) of the Social Security 
Act (42 U.S.C. 1395ww(m)) is amended by adding at the end 
the following: 
‘‘(6) APPLICATION OF SITE NEUTRAL IPPS PAYMENT RATE IN 
CERTAIN CASES.— 
‘‘(A) GENERAL APPLICATION OF SITE NEUTRAL IPPS PAY-
MENT
AMOUNT
FOR
DISCHARGES
FAILING
TO
MEET 
APPLICABLE CRITERIA.— 
‘‘(i) IN GENERAL.—For a discharge in cost reporting 
periods beginning on or after October 1, 2015, except 
as provided in clause (ii) and subparagraph (C), pay-
ment under this title to a long-term care hospital for 
inpatient hospital services shall be made at the 
applicable site neutral payment rate (as defined in 
subparagraph (B)). 
‘‘(ii) EXCEPTION FOR CERTAIN DISCHARGES MEETING 
CRITERIA.—Clause (i) shall not apply (and payment 
shall be made to a long-term care hospital without 
regard to this paragraph) for a discharge if— 
‘‘(I) the discharge meets the ICU criterion 
under clause (iii) or the ventilator criterion under 
clause (iv); and 
‘‘(II) the discharge does not have a principal 
diagnosis relating to a psychiatric diagnosis or to 
rehabilitation. 
‘‘(iii) INTENSIVE CARE UNIT (ICU) CRITERION.— 
‘‘(I) IN
GENERAL.—The criterion specified in 
this clause (in this paragraph referred to as the 
‘ICU criterion’), for a discharge from a long-term 
care hospital, is that the stay in the long-term 
care hospital ending with such discharge was 
immediately preceded by a discharge from a stay 
in a subsection (d) hospital that included at least
H. J. Res. 59—37 
3 days in an intensive care unit (ICU), as deter-
mined by the Secretary. 
‘‘(II) DETERMINING ICU DAYS.—In determining 
intensive care unit days under subclause (I), the 
Secretary shall use data from revenue center codes 
020x or 021x (or such successor codes as the Sec-
retary may establish). 
‘‘(iv) VENTILATOR CRITERION.—The criterion speci-
fied in this clause (in this paragraph referred to as 
the ‘ventilator criterion’), for a discharge from a long- 
term care hospital, is that— 
‘‘(I) the stay in the long-term care hospital 
ending with such discharge was immediately pre-
ceded by a discharge from a stay in a subsection 
(d) hospital; and 
‘‘(II) the individual discharged was assigned 
to a Medicare-Severity-Long-Term-Care-Diagnosis- 
Related-Group (MS–LTC–DRG) based on the 
receipt of ventilator services of at least 96 hours. 
‘‘(B) 
APPLICABLE
SITE
NEUTRAL
PAYMENT
RATE 
DEFINED.— 
‘‘(i) IN
GENERAL.—In this paragraph, the term 
‘applicable site neutral payment rate’ means— 
‘‘(I) for discharges in cost reporting periods 
beginning during fiscal year 2016 or fiscal year 
2017, the blended payment rate specified in clause 
(iii); and 
‘‘(II) for discharges in cost reporting periods 
beginning during fiscal year 2018 or a subsequent 
fiscal year, the site neutral payment rate (as 
defined in clause (ii)). 
‘‘(ii) SITE
NEUTRAL
PAYMENT
RATE
DEFINED.—In 
this paragraph, the term ‘site neutral payment rate’ 
means the lower of— 
‘‘(I) the IPPS comparable per diem amount 
determined under paragraph (d)(4) of section 
412.529 of title 42, Code of Federal Regulations, 
including any applicable outlier payments under 
section 412.525 of such title; or 
‘‘(II) 100 percent of the estimated cost for the 
services involved. 
‘‘(iii) BLENDED PAYMENT RATE.—The blended pay-
ment rate specified in this clause, for a long-term care 
hospital for inpatient hospital services for a discharge, 
is comprised of— 
‘‘(I) half of the site neutral payment rate (as 
defined in clause (ii)) for the discharge; and 
‘‘(II) half of the payment rate that would other-
wise be applicable to such discharge without 
regard to this paragraph, as determined by the 
Secretary. 
‘‘(C) LIMITING PAYMENT FOR ALL HOSPITAL DISCHARGES 
TO SITE NEUTRAL PAYMENT RATE FOR HOSPITALS FAILING 
TO MEET APPLICABLE LTCH DISCHARGE THRESHOLDS.— 
‘‘(i) NOTICE OF LTCH DISCHARGE PAYMENT PERCENT-
AGE.—For cost reporting periods beginning during or 
after fiscal year 2016, the Secretary shall inform each
H. J. Res. 59—38 
long-term care hospital of its LTCH discharge payment 
percentage (as defined in clause (iv)) for such period. 
‘‘(ii) LIMITATION.—For cost reporting periods begin-
ning during or after fiscal year 2020, if the Secretary 
determines for a long-term care hospital that its LTCH 
discharge payment percentage for the period is not 
at least 50 percent— 
‘‘(I) the Secretary shall inform the hospital 
of such fact; and 
‘‘(II) subject to clause (iii), for all discharges 
in the hospital in each succeeding cost reporting 
period, the payment amount under this subsection 
shall be the payment amount that would apply 
under subsection (d) for the discharge if the hos-
pital were a subsection (d) hospital. 
‘‘(iii) PROCESS FOR REINSTATEMENT.—The Secretary 
shall establish a process whereby a long-term care 
hospital may seek to and have the provisions of sub-
clause (II) of clause (ii) discontinued with respect to 
that hospital. 
‘‘(iv) LTCH DISCHARGE PAYMENT PERCENTAGE.—In 
this subparagraph, the term ‘LTCH discharge payment 
percentage’ means, with respect to a long-term care 
hospital for a cost reporting period beginning during 
or after fiscal year 2020, the ratio (expressed as a 
percentage) of— 
‘‘(I) the number of discharges for such hospital 
and period for which payment is not made at the 
site neutral payment rate, to 
‘‘(II) the total number of discharges for such 
hospital and period. 
‘‘(D) INCLUSION OF SUBSECTION (D) PUERTO RICO HOS-
PITALS.—In this paragraph, any reference in this paragraph 
to a subsection (d) hospital shall be deemed to include 
a reference to a subsection (d) Puerto Rico hospital.’’. 
(2) MEDPAC STUDY AND REPORT ON IMPACT OF CHANGES.— 
(A) 
STUDY.—The 
Medicare 
Payment 
Assessment 
Commission shall examine the effect of applying section 
1886(m)(6) of the Social Security Act, as added by the 
amendment made by paragraph (1), on— 
(i) the quality of patient care in long-term care 
hospitals; 
(ii) the use of hospice care and post-acute care 
settings; 
(iii) different types of long-term care hospitals; and 
(iv) the growth in Medicare spending for services 
in such hospitals. 
(B) REPORT.—Not later than June 30, 2019, the 
Commission shall submit to Congress a report on such 
study. The Commission shall include in such report such 
recommendations for changes in the application of such 
section as the Commission deems appropriate as well as 
the impact of the application of such section on the need 
to continue applying the 25 percent rule described under 
sections 412.534 and 412.536 of title 42, Code of Federal 
Regulations.
H. J. Res. 59—39 
(3) CALCULATION OF LENGTH OF STAY EXCLUDING CASES 
PAID ON A SITE NEUTRAL BASIS.— 
(A) IN
GENERAL.—For discharges occurring in cost 
reporting periods beginning on or after October 1, 2015, 
subject to subparagraph (B), in calculating the length of 
stay requirement applicable to a long-term care hospital 
or satellite facility under section 1886(d)(1)(B)(iv)(I) of the 
Social Security Act (42 U.S.C. 1395ww(d)(1)(B)(iv)(I)) and 
section 1861(ccc)(2) of such Act (42 U.S.C. 1395x(ccc)(2)), 
the Secretary of Health and Human Services shall exclude 
the following: 
(i) SITE NEUTRAL PAYMENT.—Any patient for whom 
payment is made at the site neutral payment rate 
(as defined in section 1886(m)(6)(B)(ii)) of such Act, 
as added by paragraph (1)). 
(ii) MEDICARE ADVANTAGE.—Any patient for whom 
payment is made under a Medicare Advantage plan 
under part C of title XVIII of such Act. 
(B) LIMITATION ON CONVERTING SUBSECTION (D) HOS-
PITALS.—Subparagraph (A) shall not apply to a hospital 
that is classified as of December 10, 2013, as a subsection 
(d) hospital (as defined in section 1886(d)(1)(B) of the Social 
Security Act, 42 U.S.C. 1395ww(d)(1)(B)) for purposes of 
determining 
whether 
the 
requirements 
of 
section 
1886(d)(1)(B)(iv)(I) or 1861(ccc)(2) of such Act (42 U.S.C. 
1395ww(d)(1)(B)(iv)(I), 1395x(ccc)(2)) are met. 
(b) EXTENSION OF CERTAIN LTCH PAYMENT RULES AND MORA-
TORIUM ON THE ESTABLISHMENT OF CERTAIN HOSPITALS AND FACILI-
TIES.— 
(1) EXTENSION OF CERTAIN PAYMENT RULES.— 
(A) PAYMENT FOR HOSPITALS-WITHIN-HOSPITALS.—Para-
graph (2)(C) of section 114(c) of the Medicare, Medicaid, 
and SCHIP Extension Act of 2007 (42 U.S.C. 1395ww note), 
as amended by sections 3106(a) and 10312(a) of Public 
Law 111–148, is amended by striking ‘‘5-year period’’ and 
inserting ‘‘9-year period’’. 
(B) 25 PERCENT PATIENT THRESHOLD PAYMENT ADJUST-
MENT; MAKING THE GRANDFATHERED EXEMPTION FOR LONG- 
TERM CARE HOSPITALS PERMANENT.—Section 114(c)(1) of the 
Medicare, Medicaid, and SCHIP Extension Act of 2007 
(42 U.S.C. 1395ww note), as amended by sections 3106(a) 
and 10312(a) of Public Law 111–148, is amended— 
(i) in the matter preceding subparagraph (A), by 
striking ‘‘for a 5-year period’’; and 
(ii) in subparagraph (A), by inserting ‘‘for a 9- 
year period,’’ before ‘‘section 412.536’’. 
(C) REPORT ASSESSING CONTINUED SUSPENSION OF 25 
PERCENT RULE.—Not later than 1 year before the end of 
the 9-year period referred to in section 114(c)(1) of the 
Medicare, Medicaid, and SCHIP Extension Act of 2007 
(42 U.S.C. 1395ww note), as amended by subparagraph 
(B), the Secretary of Health and Human Services shall 
submit to Congress a report on the need for any further 
extensions (or modifications of the extensions) of the 25 
percent rule described in sections 412.534 and 412.536 
of title 42, Code of Federal Regulations, particularly taking
H. J. Res. 59—40 
into account the application of section 1886(m)(6) of the 
Social Security Act, as added by subsection (a)(1). 
(2) EXTENSION OF MORATORIUM ON ESTABLISHMENT OF AND 
INCREASE IN BEDS FOR LTCHS.—Section 114(d) of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (42 U.S.C. 1395ww 
note), as amended by sections 3106(b) and 10312(b) of Public 
Law 111–148, is amended— 
(A) in paragraph (1), in the matter preceding subpara-
graph (A), by inserting after ‘‘5-year period’’ the following: 
‘‘(and for the period beginning January 1, 2015, and ending 
September 30, 2017)’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(6) LIMITATION
ON
APPLICATION
OF
EXCEPTIONS.—Para-
graphs (2) and (3) shall not apply during the period beginning 
January 1, 2015, and ending September 30, 2017.’’. 
(c) ADDITIONAL QUALITY MEASURE.—Section 1886(m)(5)(D) of 
the Social Security Act (42 U.S.C. 1395ww(m)(5)(D)) is amended 
by adding at the end the following new clause: 
‘‘(iv) ADDITIONAL
QUALITY
MEASURES.—Not later 
than October 1, 2015, the Secretary shall establish 
a functional status quality measure for change in 
mobility among inpatients requiring ventilator sup-
port.’’. 
(d) REVIEW OF TREATMENT OF CERTAIN LTCHS.— 
(1) EVALUATION.—As part of the annual rulemaking for 
fiscal year 2015 or fiscal year 2016 to carry out the payment 
rates under subsection (d) of section 1886 of the Social Security 
Act (42 U.S.C. 1395ww), the Secretary shall evaluate both 
the payment rates and regulations governing hospitals which 
are classified under subclause (II) of subsection (d)(1)(B)(iv) 
of such section. 
(2) ADJUSTMENT AUTHORITY.—Based upon such evaluation, 
the Secretary may adjust payment rates under subsection (b)(3) 
of section 1886 of the Social Security Act (42 U.S.C. 1395ww) 
for a hospital so classified (such as payment based upon the 
TEFRA-payment model) and may adjust the regulations gov-
erning such hospitals, including applying the regulations gov-
erning hospitals which are classified under clause (I) of sub-
section (d)(1)(B) of such section. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.