In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[Q]: SECTION 1. DEVELOPMENT OF BEST PRACTICES FOR THE USE OF PRESCRIPTION 
              OPIOIDS.

    (a) Definitions.--In this section--
            (1) the term ``Secretary'' means the Secretary of Health 
        and Human Services; and
            (2) the term ``task force'' means the Pain Management Best 
        Practices Inter-Agency Task Force convened under subsection 
        (b).
    (b) Inter-Agency Task Force.--Not later than December 14, 2018, the 
Secretary, in cooperation with the Secretary of Veterans Affairs, the 
Secretary of Defense, and the Administrator of the Drug Enforcement 
Administration, shall convene a Pain Management Best Practices Inter-
Agency Task Force to review, modify, and update, as appropriate, best 
practices for pain management (including chronic and acute pain) and 
prescribing pain medication.
    (c) Membership.--The task force shall be comprised of--
            (1) representatives of--
                    (A) the Department of Health and Human Services;
                    (B) the Department of Veterans Affairs;
                    (C) the Food and Drug Administration;
                    (D) the Department of Defense;
                    (E) the Drug Enforcement Administration;
                    (F) the Centers for Disease Control and Prevention;
                    (G) the Health Resources and Services 
                Administration;
                    (H) the Indian Health Service;
                    (I) the National Academy of Medicine;
                    (J) the National Institutes of Health;
                    (K) the Office of National Drug Control Policy;
                    (L) the Substance Abuse and Mental Health Services 
                Administration; and
                    (M) the Office of Women's Health;
            (2) State medical boards;
            (3) subject to subsection (e), physicians, dentists, and 
        nonphysician prescribers;
            (4) hospitals;
            (5) subject to subsection (e), pharmacists and pharmacies;
            (6) first responders;
            (7) experts in the fields of pain research and addiction 
        research;
            (8) experts in the fields of adolescent and young adult 
        addiction research;
            (9) representatives of--
                    (A) pain management professional organizations;
                    (B) the mental health treatment community;
                    (C) the addiction treatment and recovery community;
                    (D) pain advocacy groups;
                    (E) veteran service organizations; and
                    (F) groups with expertise on overdose reversal;
            (10) a person in recovery from addiction to medication for 
        chronic pain;
            (11) a person in recovery from addiction to medication for 
        chronic pain, whose addiction began in adolescence or young 
        adulthood;
            (12) a person with chronic pain;
            (13) an expert on active duty military, armed forces 
        personnel, and veteran health and prescription opioid 
        addiction;
            (14) an expert in the field of minority health; and
            (15) other stakeholders, as the Secretary determines 
        appropriate.
    (d) Condition on Participation on Task Force.--An individual 
representing a profession or entity described in paragraph (3) or (5) 
of subsection (c) may not serve as a member of the task force unless 
such individual--
            (1) is currently licensed in a State in which such 
        individual is practicing (as defined by such State) such 
        profession (or, in the case of an individual representing an 
        entity, a State in which the entity is engaged in business); 
        and
            (2) is currently practicing (as defined by such State) such 
        profession (or, in the case of an individual representing an 
        entity, the entity is in operation).
    (e) Duties.--The task force shall--
            (1) not later than 180 days after the date on which the 
        task force is convened under subsection (b), review, modify, 
        and update, as appropriate, best practices for pain management 
        (including chronic and acute pain) and prescribing pain 
        medication, taking into consideration--
                    (A) existing pain management research;
                    (B) research on trends in areas and communities in 
                which the prescription opioid abuse rate and fatality 
                rate exceed the national average prescription opioid 
                abuse rate and fatality rate;
                    (C) recommendations from relevant conferences and 
                existing relevant evidence-based guidelines;
                    (D) ongoing efforts at the State and local levels 
                and by medical professional organizations to develop 
                improved pain management strategies, including 
                consideration of differences within and between classes 
                of opioids, the availability of opioids with abuse 
                deterrent technology, and pharmacological, 
                nonpharmacological, medical device alternatives to 
                opioids to reduce opioid monotherapy in appropriate 
                cases and the coordination of information collected 
                from State prescription drug monitoring programs for 
                the purpose of preventing the diversion of pain 
                medication;
                    (E) ongoing efforts at the Federal, State, and 
                local levels to examine the potential benefits of 
                electronic prescribing of opioids, including any public 
                comments collected in the course of those efforts;
                    (F) the management of high-risk populations, other 
                than populations who suffer pain, who--
                            (i) may use or be prescribed 
                        benzodiazepines, alcohol, and diverted opioids; 
                        or
                            (ii) receive opioids in the course of 
                        medical care;
                    (G) the distinct needs of adolescents and young 
                adults with respect to pain management, pain 
                medication, substance use disorder, and medication-
                assisted treatment;
                    (H) the 2016 Guideline for Prescribing Opioids for 
                Chronic Pain issued by the Centers for Disease Control 
                and Prevention;
                    (I) the practice of co-prescribing naloxone for 
                both pain patients receiving chronic opioid therapy and 
                patients being treated for opioid use disorders;
                    (J) research that has been, or is being, conducted 
                or supported by the Federal Government on prevention 
                of, treatment for, and recovery from substance use by 
                and substance use disorders among adolescents and young 
                adults relative to any unique circumstances (including 
                social and biological circumstances) of adolescents and 
                young adults that may make adolescent-specific and 
                young adult-specific treatment protocols necessary, 
                including any effects that substance use and substance 
                use disorders may have on brain development and the 
                implications for treatment and recovery;
                    (K) Federal non-research programs and activities 
                that address prevention of, treatment for, and recovery 
                from substance use by and substance use disorders among 
                adolescents and young adults, including an assessment 
                of the effectiveness of such programs and activities 
                in--
                            (i) preventing substance use by and 
                        substance use disorders among adolescents and 
                        young adults;
                            (ii) treating such adolescents and young 
                        adults in a way that accounts for any unique 
                        circumstances faced by adolescents and young 
                        adults; and
                            (iii) supporting long-term recovery among 
                        adolescents and young adults; and
                    (L) gaps that have been identified by Federal 
                officials and experts in Federal efforts relating to 
                prevention of, treatment for, and recovery from 
                substance use by and substance use disorders among 
                adolescents and young adults, including gaps in 
                research, data collection, and measures to evaluate the 
                effectiveness of Federal efforts, and the reasons for 
                such gaps;
            (2) solicit and take into consideration public comment on 
        the practices developed under paragraph (1), amending such best 
        practices if appropriate;
            (3) develop a strategy for disseminating information about 
        the best practices developed under paragraphs (1) and (2) to 
        prescribers, pharmacists, State medical boards, educational 
        institutions that educate prescribers and pharmacists, and 
        other parties, as the Secretary determines appropriate;
            (4) review, modify, and update best practices for pain 
        management and prescribing pain medication, specifically as it 
        pertains to physician education and consumer education; and
            (5) examine and identify--
                    (A) the extent of the need for the development of 
                new pharmacological, nonpharmacological, and medical 
                device alternatives to opioids;
                    (B) the current status of research efforts to 
                develop such alternatives; and
                    (C) the pharmacological, nonpharmacological, and 
                medical device alternatives to opioids that are 
                currently available that could be better utilized.
    (f) Consideration of Study Results.--In reviewing, modifying, and 
updating, best practices for pain management and prescribing pain 
medication, the task force shall take into consideration existing 
private sector, State, and local government efforts related to pain 
management and prescribing pain medication.
    (g) Limitation.--The task force shall not have rulemaking 
authority.
    (h) Report.--Not later than 270 days after the date on which the 
task force is convened under subsection (b), the task force shall 
submit to Congress a report that includes--
            (1) the strategy for disseminating best practices for pain 
        management (including chronic and acute pain) and prescribing 
        pain medication, as developed under subsection (e);
            (2) the results of a feasibility study on linking the best 
        practices described in paragraph (1) to receiving and renewing 
        registrations under section 303(f) of the Controlled Substances 
        Act (21 U.S.C. 823(f));
            (3) recommendations for effectively applying the best 
        practices described in paragraph (1) to improve prescribing 
        practices at medical facilities, including medical facilities 
        of the Veterans Health Administration and Indian Health 
        Service;
            (4) the modified and updated best practices described in 
        subsection (e)(4); and
            (5) the results of the examination and identification 
        conducted pursuant to subsection (e)(4), and recommendations 
        regarding--
                    (A) the development of new pharmacological, 
                nonpharmacological, and medical device alternatives to 
                opioids; and
                    (B) the improved utilization of pharmacological, 
                nonpharmacological, and medical device alternatives to 
                opioids that are currently available.

            Passed the House of Representatives May 11, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
[A]: (Sec. 1) This bill requires the Department of Health and Human Services to convene a Pain Management Best Practices Inter-Agency Task Force to: (1) review, modify, and update best practices for pain management and prescribing pain medication; and (2) examine and identify the need for, development of, and availability of medical alternatives to opioids (drugs with effects similar to opium, such as certain pain medications). The task force must submit a report that includes: (1) the modified and updated best practices; (2) a strategy for disseminating the best practices; (3) the feasibility of linking the best practices to Drug Enforcement Administration registration of manufacturers, distributors, and dispensers of controlled substances; (4) recommendations for effectively applying the best practices at medical facilities; and (5) recommendations regarding medical alternatives to opioids.


[Q]: SECTION 1. FINDINGS.

    Congress finds the following:
            (1) The United States must have adequate infrastructure and 
        policies in place under the Department of Homeland Security to 
        protect against potential terrorists attempting to enter the 
        United States along the Southwest Border.
            (2) According to top government officials, several Al Qaeda 
        leaders believe operatives can pay their way into the country 
        through Mexico and also believe illegal entry is more 
        advantageous than legal entry for operational security reasons.
            (3) Official border patrol records reveal a disturbing 
        trend on the southern border indicating a growth in other than 
        Mexicans (OTMs), many from countries of interest, crossing into 
        the United States--between 2003 and 2004 the increase was at 
        least 35 percent.
            (4) Because of budget constraints, the U.S. Immigration and 
        Customs Enforcement Office of Detention and Removal does not 
        have sufficient bed space to detain all illegal immigrants from 
        special interest countries therefore releasing them on personal 
        recognizance.
            (5) The Department of Homeland Security estimates that up 
        to 90 percent of these immigrants do not appear for their 
        immigration hearings.
            (6) The Department of Homeland Security needs more 
        personnel at the borders with the necessary security clearances 
        and equipment to adequately screen and detain immigrants coming 
        to the United States.
            (7) The Secretary of Homeland Security should provide 
        appropriate training for inspectors, and associated support 
        staff, on an ongoing basis to utilize new technologies and to 
        ensure that the proficiency levels of such personnel are 
        acceptable to protect the borders of the United States.

SEC. 2. IMPROVEMENT IN SECURITY CLEARANCE PROCESS ALONG THE UNITED 
              STATES-MEXICO BORDER AND INCREASE IN DETENTION BEDS.

    (a) Improvement in Security Clearance Process.--The Secretary of 
Homeland Security shall--
            (1) expeditiously implement policies ensuring that 
        personnel of the Department of Homeland Security along the 
        United States-Mexico border have the security clearances 
        required to access information necessary to adequately screen 
        immigrants entering the United States at such border, including 
        IDENT and IAFIS databases and databases used by the 
        Department's inspectors in secondary inspections;
            (2) develop the interagency agreements and information 
        technology infrastructure necessary for border agents to 
        adequately screen immigrants entering the United States at such 
        border; and
            (3) explore information sharing programs with countries of 
        interest to adequately screen immigrants entering our borders.
    (b) Increase in Detention Beds.--Subject to the availability of 
appropriations, the Secretary of Homeland Security shall increase by 
the amount necessary the number of detention beds needed to detain all 
immigrants apprehended by U.S. Customs and Border Protection.
    (c) Sense of Congress.--It is the sense of the Congress that the 
Office of Detention and Removal Operation should be placed under the 
operational control of the Commissioner of U.S. Customs and Border 
Protection, since the largest client of such office is the Border 
Patrol.

SEC. 3. STUDY OF PERSONNEL LEVELS.

    (a) In General.--The Secretary of Homeland Security shall contract 
with an independent entity to undertake a study to determine the 
necessary level and allocation of personnel, including support staff, 
at United States ports of entry and border patrol sectors.
    (b) Items to Be Included.--Such study shall take into account at 
least the following:
            (1) The overall mission of U.S. Customs and Border 
        Protection.
            (2) Threat and vulnerability information pertaining to the 
        Nation's borders and ports of entry
            (3) The impact of new border security programs, policies 
        and technologies, and the level of cross-training received by 
        all staff.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall submit to the appropriate 
congressional committees, as defined in section 2(2) of the Homeland 
Security Act of 2002 (6 U.S.C. 101(2)), a report on the study conducted 
under this section.

SEC. 4. ONGOING TRAINING OF BORDER SECURITY PERSONNEL.

    The Secretary of Homeland Security shall provide appropriate 
training for all border security personnel, and associated support 
staff on an ongoing basis to utilize new technologies and to ensure 
that the proficiency levels of such personnel are acceptable to protect 
the borders of the United States.

SEC. 5. PROMPT AND PROPER ENFORCEMENT.

    (a) Sense of Congress.--It is the sense of the Congress that--
            (1) prosecutors and immigration judges are critical for the 
        prompt and proper enforcement of our immigration laws, and are 
        an important part of a comprehensive strategy; and
            (2) an insufficient number of prosecutors and immigration 
        judges currently exists to enforce the immigration laws of the 
        United States.
    (b) Authorization.--There are hereby authorized to be appropriated 
amounts necessary to provide for appropriate staff increases for 
judicial and prosecutorial offices, commensurate with other personnel 
increases directed in this Act.

SEC. 6. REPORT ON DETENTION AND REMOVAL OPERATIONS.

    (a) In General.--The Secretary of Homeland Security shall submit to 
the appropriate congressional committees (as defined in section 2(2) of 
the Homeland Security Act of 2002 (6 U.S.C. 101(2))) a report on 
detention and removal operations, detailing the amount of additional 
detention space and resources required to detain all persons presenting 
a possible threat to homeland security.
    (b) Information to Be Included.--The report shall include 
information on--
            (1) alternatives to detention, including electronic 
        monitoring, telephone, and voice recognition programs for those 
        on bond, and conducting deportation proceedings prior to 
        prisoners' release from Federal, State, and local prisons; and
            (2) countries to which removal is problematic.

SEC. 7. COMPREHENSIVE BORDER SECURITY STRATEGY.

    The Secretary of Homeland Security, in consultation with the heads 
of all other Federal agencies with border-related functions or with 
facilities or lands on or along the border, shall submit to the 
appropriate congressional committees (as defined in section 2 of the 
Homeland Security Act of 2002 (6 U.S.C. 101)) unclassified and 
classified versions of a unified, comprehensive strategy to secure the 
land borders of the United States. Such strategy shall be submitted not 
later than 6 months after the date of the enactment of this Act and 
shall include a description of the actions already taken to implement 
the strategy.
[A]: Requires the Secretary of Homeland Security to: (1) ensure that Department of Homeland Security personnel along the U.S.-Mexico border have the security clearances required to access information to adequately screen entering immigrants; (2) develop the interagency agreements and information technology infrastructure necessary for such screening; (3) explore information sharing programs with countries of interest; and (4) increase by the amount necessary the number of detention beds needed to detain all immigrants apprehended by U.S. Customs and Border Protection (CBP).

Expresses the sense of Congress that the Office of Detention and Removal Operations should be placed under the operational control of the Commissioner of CBP (currently, under U.S. Immigration and Customs Enforcement).

Requires the Secretary to: (1) contract with an independent entity to study the necessary level and allocation of personnel at U.S. ports of entry and border patrol sectors; (2) provide ongoing training for all border security personnel; and (3) submit a report on detention and removal operations and a unified, comprehensive border security strategy to appropriate congressional committees.

Expresses the sense of Congress that: (1) prosecutors and immigration judges are critical for the prompt and proper enforcement of immigration laws and are an important part of a comprehensive strategy; and (2) there is an insufficient number of prosecutors and immigration judges for immigration enforcement. Authorizes appropriations for staff increases.


[Q]: OFFICERS.

    ``The State Administrator shall establish a Problem Resolution 
Office. Problem Resolution Officers shall have the authority to 
investigate taxpayer complaints and enjoin collection activity if, in 
the opinion of the Problem Resolution Officer, said collection activity 
is reasonably likely to not be in compliance with law. Said 
administrative injunction may only be reversed by the highest official 
in the relevant State or Federal taxing authority or by its General 
Counsel upon a finding that the collection activity is justified by 
clear and convincing evidence. The authority to reverse this 
administrative injunction may not be delegated. Problem Resolution 
Officers shall not be disciplined or adversely affected for the 
issuance of administrative injunctions unless a pattern or issuing 
injunctions that are manifestly unreasonable is proven in an 
administrative hearing. Nothing in this section shall limit the 
authority of the State Administrators or the taxpayer to pursue any 
legal remedy in any court with jurisdiction over the dispute at issue.

``SEC. 53. JURISDICTION AND INTERSTATE ALLOCATION.

    ``(a) Allocation Rules.--For purposes of allocating revenue between 
or among administering states from taxes imposed by this subtitle, the 
revenue shall be allocated to those states that are the destination of 
the taxable property or services. The destination of the purchase of 
taxable property and services shall be determined in accordance with 
this section.
    ``(b) Federal Office of Revenue Allocation.--The Secretary shall 
establish an Office of Revenue Allocation to arbitrate any claims or 
disputes among administering states as to the destination of taxable 
property and services for purposes of allocating revenue between or 
among the states from taxes imposed by this subtitle. The determination 
of the Administrator of the Office of Revenue Allocation shall be 
subject to judicial review in any federal court with competent 
jurisdiction provided, however, that the standard of review shall be 
abuse of discretion.
    ``(c) Tangible Personal Property.--The destination of tangible 
personal property shall be the state or territory in which the property 
was first delivered to the purchaser. Tangible personal property 
shipped by means of the mail or common carrier shall be deemed 
delivered to the location of the purchaser for purposes of this 
subsection upon shipment by mail or common carrier.
    ``(d) Real Property.--The destination of real property or rents or 
leaseholds on real property shall be state or territory in which the 
real property is located.
    ``(e) Other Property.--The destination of other property shall be 
residence of the purchaser.
    ``(f) Services.--
            ``(1) General rule.--The destination of services shall be 
        state or territory in which the use, consumption or enjoyment 
        of the services occurred. Allocation of service invoices 
        relating to more than one jurisdiction shall be on the basis of 
        time.
            ``(2) Telecommunications services.--The destination of 
        telecommunications services shall be the residence of the 
        purchaser. Telecommunications services shall include telephone, 
        telegraph, cable television, satellite and computer on-line or 
        network services.
            ``(3) Domestic transportation services.--For transportation 
        services where all of the final destinations are within the 
        United States, the destination of transportation services shall 
        be the final destination of the trip (in the case of round or 
        multiple trip fares, the services amount shall be equally 
        allocated among the final destinations).
            ``(4) International transportation services.--For 
        transportation services where the final destination or origin 
        of the trip is without the United States, the service amount 
        shall be deemed 50 percent attributable to the United States 
        destination or origin.
    ``(g) Financial Intermediation Services.--The destination of 
financial intermediation services shall be the residence of the 
purchase.
    ``(h) A State Tax Administrator shall have jurisdiction over any 
gross payments made which have a destination (as determined in 
accordance with this section) within the state of said State Tax 
Administrator. This grant of jurisdiction is not exclusive of other 
jurisdiction that said State Tax Administrator may have.
    ``(i) Rents and Royalties Paid for the Lease of Tangible 
Property.--
            ``(1) General rule.--The destination of rents and royalties 
        paid for the lease of tangible property shall be where the 
        property is located.
            ``(2) Vehicles.--The destination of rent and lease payments 
        on vehicles shall be--
                    ``(A) in the case of rentals and leases of a term 
                one month or less, the location where the vehicle was 
                originally delivered to the lessee; and
                    ``(B) in the case of rentals and leases of a term 
                greater than one month, the residence of the lessee.

``SEC. 54. TAX TO BE STATED AND CHARGED SEPARATELY.

    ``(a) In General.--For each purchase of taxable property or 
services for which a tax is imposed pursuant to section 1, the sales 
tax shall be charged separately from the purchase price by the vendor 
or seller. For purchase of taxable property or services for which a tax 
is imposed pursuant to section 1, the vendor shall provide to the 
purchaser a receipt that sets forth at least the following information:
            ``(1) The property or services price exclusive of tax.
            ``(2) The amount of tax paid.
            ``(3) The property or service price inclusive of tax.
            ``(4) The tax rate (the amount of tax paid (per 
        subparagraph 2) divided by the property or service price 
        inclusive of tax (per subparagraph 3)).
            ``(5) The date that the good or service was sold.
            ``(6) The name of the vendor.
            ``(7) The vendor registration number.
    ``(b) Vending Machine Exception.--The requirements of subsection 
(a) shall be inapplicable in the case of sales by vending machines. 
Vending machines for purposes of this subsection shall mean machines--
            ``(1) that dispense taxable property in exchange for coins, 
        one, five, ten or twenty dollar bills, and
            ``(2) that sell no single item exceeding ten dollars per 
        unit in price.

``SEC. 55. INSTALLMENT AGREEMENTS; COMPROMISES.

    ``The State Administrator or the Secretary, as the case may be, is 
authorized to enter into written agreements with any person under which 
the person is allowed to satisfy liability for payment of any tax in 
installment payments if he determines that such agreement will 
facilitate the collection of such liability. The agreement shall remain 
in effect for the term of the agreement unless the information that the 
person provided to the Secretary or the State Administrator was 
materially inaccurate or incomplete. The Secretary and the State 
Administrator may compromise any amounts alleged to be due.

``SEC. 56. ACCOUNTING.

    ``(a) Cash Method To Be Used Generally.--Vendors and other persons 
shall remit taxes and report transactions with respect to the month for 
which payment was received or the tax imposed by this chapter otherwise 
becomes due.
    ``(b) Election To Use Accrual Method.--A person may elect with 
respect to a calendar year, in a form prescribed by the Secretary, to 
remit taxes and report transactions with respect to the month where a 
sale was invoiced and accrued.
    ``(c) Cross Reference.--

                                ``For rules relating to bad debts for 
vendors electing the accrual method, see section 11(g).

``SEC. 57. HOBBY ACTIVITIES.

    ``(a) The exemption afforded by section 2(a)(1) shall not be 
available for any taxable property or service used by a trade or 
business if that trade or business is not engaged in for profit.
    ``(b) If the trade or business has received gross payments for the 
sale of taxable property or services that exceed the sum of--
            ``(1) taxable property and services purchased,
            ``(2) wages paid, and
            ``(3) taxes paid,
in 2 or more of the most recent 4 calendar years during which it 
operated, then the business activity shall be conclusively deemed to be 
engaged in for profit.''.

SEC. 5. PHASE-OUT OF THE INTERNAL REVENUE SERVICE.

    (a) In General.--Appropriations for any expenses of the Internal 
Revenue Service including processing income tax returns for years prior 
to the repeal of the income tax, revenue accounting, management, 
transfer of payroll tax data to the Social Security Administration and 
otherwise for years after fiscal year 2005 are not authorized.
    (b) Excise and Sales Tax Bureaus.--Section 7801 is amended by 
adding the following new subsections:
    ``(d) Excise Tax Bureau.--There shall be in the Department of 
Treasury an Excise Tax Bureau to administer those excise taxes not 
repealed by this Act.
    ``(e) Sales Tax Bureau.--There shall be in the Department of 
Treasury a Sales Tax Bureau to administer the national sales tax in 
those States where it is required pursuant to section 31(g), and to 
discharge other Federal duties and powers relating to the national 
sales tax (including those required by sections 32, 33, and 53(b)). The 
Office of Revenue Allocation shall be within the Sales Tax Bureau.''.
    (c) Assistant General Counsels.--Section 7801(b)(2) is amended to 
read as follows:
            ``(2) Assistant general counsels.--The Secretary of the 
        Treasury may appoint, without regard to the provisions of the 
        civil service laws, and fix the duties of not more than 5 
        Assistant General Counsel.''.
    (d) Short Year.--
            (1) For purposes of the Federal income tax, the tax imposed 
        by section 1 and section 11 for taxable years ending June 30, 
        2003, shall be modified as set forth in this subsection.
            (2) For calendar year taxpayers, the dollar figures in 
        section 1 and section 11 shall be reduced by dividing by 2 all 
        dollar figures that would be applicable but for this 
        subsection.
            (3) For fiscal year taxpayers, the dollar figures in 
        section 1 and section 11 shall be equal to the product of--
                    (A) the dollar amount that would be applicable but 
                for this subsection, and
                    (B) the ratio that has as its numerator the number 
                of months in the taxpayer's taxable year ending June 
                30, 2003, and as its denominator 12.
            (4) The Secretary shall publish tax rate schedules in 
        accordance with this subsection.

SEC. 6. SOCIAL SECURITY ADMINISTRATION TO COLLECT PAYROLL TAXES.

    (a) In General.--Commencing January 1, 2003, the Social Security 
Administration shall collect and administer the taxes imposed pursuant 
to chapter 2 of subtitle A (relating to self employment income taxes) 
and subtitle C (relating to employment taxes) of the Internal Revenue 
Code of 1986.
    (b) Cross References.--

                                For revised rules relating to the self-
employment tax, see section 7 of this Act.
                                For rules relating to revised 
withholding tax schedules and family consumption refund, see section 
13.

SEC. 7. SELF-EMPLOYMENT TAX.

    (a) In General.--Subsection 1402(a) of the Internal Revenue Code of 
1986 is amended to read as follows:
    ``(a) In General.--`Self employment income' shall mean gross 
payments received in a calendar year from the sale of taxable property 
or services (without regard to exemption) less the sum in a calendar 
year of--
            ``(1) purchases of taxable property or services (without 
        regard to exemption) in furtherance of a business purpose,
            ``(2) any wages paid (whether to the self-employed person 
        or others) in furtherance of a business purpose,
            ``(3) unused transition amounts, and
            ``(4) undeducted negative self employment income amounts 
        from prior periods.
    ``(b) Transition Amounts.--
            ``(1) General rule.--The transition amount for the ten 
        calendar years commencing in 2003 shall be the unrecovered 
        basis amount as of the end of December 31, 2002, divided by 
        ten.
            ``(2) Unrecovered basis amount.--The unrecovered basis 
        amount shall be remaining income tax basis relating to--
                    ``(A) prior law section 167 property placed in 
                service prior to January 1, 2003, and
                    ``(B) inventory held as of the end of 2002 
                (including any amounts capitalized in accordance with 
                prior law section 263A).''.
    (b) Conforming Amendments.--Subsections 1402(b) and 1402(c) are 
hereby repealed. Subsections 1402(d) et seq. are hereby renumbered as 
subsections 1402(b) et seq.

SEC. 8. SOCIAL SECURITY BENEFITS INDEXED ON SALES TAX INCLUSIVE BASIS.

    Subparagraph (D) of paragraph (1) of subsection (i) of section 215 
of the Social Security Act (42 U.S.C. 415) (relating to cost-of-living 
increases in Social Security benefits) is amended to read as follows:
            ``(D)(i) the term `CPI increase percentage', with respect 
        to a base quarter or cost-of-living quarter in any calendar 
        year, means the percentage (rounded to the nearest one-tenth of 
        1 percent) by which the Consumer Price Index for that quarter 
        (as prepared by the Department of Labor) exceeds such index for 
        the most recent prior calendar quarter which was a base quarter 
        under subparagraph (A)(ii) or, if later, the most recent cost-
        of-living computation quarter under subparagraph (B);
            ``(ii) if the Consumer Price Index (as prepared by the 
        Department of Labor) does not include the national sales tax 
        paid, then the term `CPI increase percentage' with respect to a 
        base quarter or cost-of-living quarter in any calendar year, 
        means the percentage (rounded to the nearest one-tenth of 1 
        percent) by which the product of--
                    ``(I) the Consumer Price Index for that quarter (as 
                prepared by the Department of Labor); and
                    ``(II) the national sales tax factor,
        exceeds such index for the most recent prior calendar quarter 
        which was a base quarter under subparagraph (A)(ii) or, if 
        later, the most recent cost-of-living computation quarter under 
        subparagraph (B); and
            ``(iii) for purposes of clause (ii), the `national sales 
        tax factor' is equal to one plus the quotient that is--
                    ``(I) the sales tax rate (as defined in section 1 
                of title 26), divided by
                    ``(II) the quantity that is one minus the sales tax 
                rate.''.

SEC. 9. COMPENSATING PAYMENTS TO CERTAIN PERSONS ON FIXED INCOME.

    (a) Compensating Payment.--Eligible persons (as defined in 
subsection (c)) shall receive a compensating payment (as defined in 
subsection (b)) provided that they comply with subsection (g) (relating 
to applications).
    (b) Compensating Payment Defined.--The term ``compensating 
payment'' means the product of the qualified fixed income payment 
amount (as defined in subsection (e)) and the excess inflation rate (as 
defined in subsection (f)).
    (c) Eligible Person Defined.--An eligible person is any person with 
respect to any calendar year who is entitled to--
            (1) Social Security benefits; and
            (2) qualified fixed income payments (as defined in 
        subsection (d)).
    (d) Qualified Fixed Income Payment Defined.--A qualified fixed 
income payment is a payment received by--
            (1) a beneficiary under a defined benefit plan (within the 
        meaning of section 414(j) of the Internal Revenue Code as in 
        effect prior to the enactment of this Act) whether sponsored by 
        a private or Government employer; or
            (2) by an annuitant pursuant to an annuity contract between 
        the annuitant and a bona fide insurance company.
A payment pursuant to a plan or annuity contract is not a qualified 
fixed income payment if the payment varies with investment performance, 
interest rates, or inflation. Payments pursuant to an annuity contract 
entered into after June 30, 2003, shall not be qualified fixed income 
payments. Payments pursuant to a defined benefit plan to a beneficiary 
that had been a participant in said defined benefit plan (within the 
meaning of section 410 of the Internal Revenue Code as in effect prior 
to the enactment of this Act) for less than 5 years shall not be 
qualified fixed income payments.
    (e) Qualified Fixed Income Payment Amount.--The qualified fixed 
income payment amount is \1/12\ of qualified fixed income payments that 
an eligible person is entitled to receive during the calendar year 
subsequent to the year for which the compensating payment is 
calculated, provided, however, that the qualified fixed income payment 
amount shall not exceed $5,000.
    (f) Excess Inflation Rate Defined.--The term ``excess inflation 
rate'' shall mean the excess, if any, of the consumer price index (all 
urban) during the 18-month period ending December 31, 2004, over the 
increase projected for the consumer price index (all urban) in the 
Office of Management and Budget baseline reported in the Budget of the 
United States for Fiscal Year 2003 for said 18-month period. The 
baseline assumption for the 6 months in 2003 shall be \1/2\ of the 
assumed increase for the entire calendar year 2003.
    (g) Application Required.--In order to receive compensating 
payments, each eligible person must apply in a form prescribed by the 
Secretary of Health and Human Services and provide such documentation 
as the Secretary may reasonably require.
    (h) Means of Payment.--Each person entitled to a compensating 
payment shall receive the compensating payment with their Social 
Security benefit payment. The compensating payment shall be separately 
indicated but may be included in one check. The funds to make 
compensating payments shall come from the general fund.
    (i) The Secretary of Health and Human Services may require insurers 
that are parties to annuity contracts and defined benefit plan sponsors 
to issue a statement to annuitants or plan participants including such 
information as the Secretary may require to determine the qualified 
fixed income payment amount.

SEC. 10. INTEREST.

    Section 6621 of the Internal Revenue Code of 1986 is amended by 
striking the last sentence in section 6621(a)(1) and by striking ``3'' 
in section 6621(a)(2)(B) and substituting in its stead ``2''.

SEC. 11. SUPERMAJORITY REQUIRED TO RAISE RATE.

    (a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment thereto, or conference report thereon that includes any 
provision that--
            (1) increases any federal sales tax rate, and
            (2) provides any exemption, deduction, credit or other 
        benefit which results in a reduction in federal revenues.
    (b) Waiver or Suspension.--This section may be waived or suspended 
in the House of Representatives or the Senate only by the affirmative 
vote of two-thirds of the Members, duly chosen and sworn.
[A]:
Individual Tax Freedom Act of 2001 - Repeals the income, estate, gift, and certain excise tax provisions of the Internal Revenue Code.Amends the Internal Revenue Code to impose a 15 percent tax on the use, consumption or enjoyment in the U.S. of any property or service produced or rendered within or without of the United States. Prohibits, subject to exception, imposing a tax on any property or service purchased for: (1) a business purpose in an active trade or business; or (2) export from the United States for use or consumption outside of the Unites States, provided that the purchaser provided the seller with either an intermediate sales certificate or an export sales certificate. Sets forth provisions concerning credits and refunds.Allows for general credits against the tax, including: (1) a used property credit; (2) a business use conversion credit; (3) an administration credit; (4) a compliance equipment cost credit; (5) a bad debt credit; (6) an insurance proceeds credit; and (7) a transition inventory credit.Provides for installment payments of the tax on the purchase of a principal residence.Allows an eligible family unit to receive a sales tax rebate.Directs an administering State to administer, collect, and remit to the U.S. Treasury the tax on gross payments for the use, consumption or enjoyment of taxable property or services within the State.Prohibits the authorizing of any appropriations for the Internal Revenue Service after FY 2005. Establishes in the Treasury: (1) an Excise Tax Bureau to administer any excise taxes not repealed by this Act; and (2) a Sales Tax Bureau to administer the national sales tax.Authorizes the Social Security Administration to collect and administer self-employment income and employment taxes.Requires a supermajority in the House of Representatives or the Senate to raise rates.