instruction:
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
question:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Government Waste 
Reduction Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Establishment of Board.
Sec. 3. Duties of the Board.
Sec. 4. Powers of the Board.
Sec. 5. Board personnel matters.
Sec. 6. Congressional consideration of Board recommendations.
Sec. 7. Termination of the Board.

SEC. 2. ESTABLISHMENT OF BOARD.

    (a) Establishment.--There is established the Independent Government 
Waste Reduction Board (hereafter in this Act referred to as the 
``Board'').
    (b) Membership.--
            (1) In general.--
                    (A) Appointment.--The Board shall be composed of 15 
                members appointed by the President, by and with the 
                advice and consent of Congress.
                    (B) Qualifications.--The members of the Board shall 
                include individuals with national recognition for their 
                expertise in agencies, efficiency, waste reduction, 
                finance and economics, actuarial sciences, who provide 
                a mix of different professionals, broad geographic 
                representation, and a balance between urban and rural 
                representatives.
                    (C) Ethical disclosure.--The President shall 
                establish a system for public disclosure by members of 
                the Board of financial and other potential conflicts of 
                interest relating to such members. Members of the Board 
                shall be treated as officers in the executive branch 
                for purposes of applying title I of the Ethics in 
                Government Act of 1978 (Public Law 95-521).
                    (D) Conflicts of interest.--No individual may serve 
                as a member of the Board if that individual engages in 
                any other business, vocation, or employment.
                    (E) Consultation with congress.--In selecting 
                individuals for nominations for appointments to the 
                Board, the President shall consult with--
                            (i) the majority leader of the Senate 
                        concerning the appointment of 3 members;
                            (ii) the Speaker of the House of 
                        Representatives concerning the appointment of 3 
                        members;
                            (iii) the minority leader of the Senate 
                        concerning the appointment of 3 members; and
                            (iv) the minority leader of the House of 
                        Representatives concerning the appointment of 3 
                        members.
            (2) Term of office.--Each member shall hold office for the 
        duration of the Board.
            (3) Chairperson.--
                    (A) In general.--The Chairperson shall be appointed 
                by the President, by and with the advice and consent of 
                the Senate, from among the members of the Board.
                    (B) Duties.--The Chairperson shall be the principal 
                executive officer of the Board, and shall exercise all 
                of the executive and administrative functions of the 
                Board, including functions of the Board with respect 
                to--
                            (i) the appointment and supervision of 
                        personnel employed by the Board;
                            (ii) the distribution of business among 
                        personnel appointed and supervised by the 
                        Chairperson and among administrative units of 
                        the Board; and
                            (iii) the use and expenditure of funds.
                    (C) Governance.--In carrying out any of the 
                functions under subparagraph (B), the Chairperson shall 
                be governed by the general policies established by the 
                Board and by the decisions, findings, and 
                determinations the Board shall by law be authorized to 
                make.
                    (D) Requests for appropriations.--Requests or 
                estimates for regular, supplemental, or deficiency 
                appropriations on behalf of the Board may not be 
                submitted by the Chairperson without the prior approval 
                of a majority vote of the Board.
            (4) Removal.--Any member may be removed by the President 
        for neglect of duty or malfeasance in office, but for no other 
        cause.
    (c) Vacancies; Quorum; Seal; Vice Chairperson; Voting on Reports.--
            (1) Vacancies.--No vacancy on the Board shall impair the 
        right of the remaining members to exercise all the powers of 
        the Board.
            (2) Quorum.--A majority of the members of the Board shall 
        constitute a quorum for the transaction of business, but a 
        lesser number of members may hold hearings.
            (3) Seal.--The Board shall have an official seal, of which 
        judicial notice shall be taken.
            (4) Vice chairperson.--The Board shall elect a Vice 
        Chairperson to act in the absence or disability of the 
        Chairperson or in case of a vacancy in the office of the 
        Chairperson.
            (5) Voting on proposals.--Any proposal of the Board must be 
        approved by the majority of members present.

SEC. 3. DUTIES OF THE BOARD.

    (a) Submission of Report.--Not later than one year after the date 
of the enactment of this Act, the Board shall submit to Congress and 
the President a report that advises specific implementation of the 
recommendations from the March 2011 Government Accountability Office 
report to Congress, entitled ``Opportunities to Reduce Potential 
Duplication in Government Programs, Save Tax Dollars, and Enhance 
Revenue'' (GAO-11-318SP) and the February 2012 Government 
Accountability Office report to Congress, entitled ``Opportunities to 
Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and 
Enhance Revenue'' (GAO-12-342SP) and shall include--
            (1) a summary of the recommendations;
            (2) an explanation of each recommendation contained in the 
        report and the reasons for including such recommendation;
            (3) an opinion by the Government Accountability Office on 
        whether each recommendation is consistent with the intent of 
        such Government Accountability Office reports;
            (4) a legislative proposal that implements the 
        recommendations; and
            (5) other information determined appropriate by the Board.
    (b) Recommendations Requirements.--
            (1) Requirements.--Each recommendation in the report 
        submitted under subsection (a)--
                    (A) shall result in a decrease of overall 
                Government spending or an increase of Government 
                revenue; and
                    (B) shall not result in--
                            (i) any cut in benefits for veterans, 
                        members of the Armed Forces, or their families; 
                        or
                            (ii) any cut in benefits for seniors, 
                        including--
                                    (I) the elimination of guaranteed 
                                health insurance benefits for seniors 
                                or people with disabilities;
                                    (II) the conversion of Medicare 
                                into a voucher plan that provides 
                                limited payments to seniors or people 
                                with disabilities to purchase health 
                                care in the private health insurance 
                                market;
                                    (III) cuts in Medicaid health 
                                insurance benefits;
                                    (IV) cuts in nursing home care; or
                                    (V) privatization of Social 
                                Security benefits.
            (2) Consultation with other agencies.--The Board shall 
        consult regularly with the Government Accountability Office and 
        other agencies in making the recommendations required under 
        this section.

SEC. 4. POWERS OF THE BOARD.

    (a) Hearings.--The Board may hold such hearings, sit and act at 
such times and places, take such testimony, and receive such evidence 
as the Board considers advisable to carry out this Act.
    (b) Obtaining Official Data.--The Board may secure directly from 
any department or agency information necessary to enable it to carry 
out this section. Upon request of the Chairperson, the head of that 
department or agency shall furnish that information to the Board on an 
agreed upon schedule.
    (c) Postal Services.--The Board may use the United States mails in 
the same manner and under the same conditions as other agencies of the 
Federal Government.
    (d) Gifts.--The Board may accept, use, and dispose of gifts or 
donations of services or property.
    (e) Offices.--The Board shall maintain a principal office and such 
field offices as it determines necessary, and may meet and exercise any 
of its powers at any other place.

SEC. 5. BOARD PERSONNEL MATTERS.

    (a) Compensation of Members and Chairperson.--Each member of the 
Board, other than the Chairperson, shall be compensated at a rate equal 
to the annual rate of basic pay prescribed for level III of the 
Executive Schedule under section 5315 of title 5, United States Code. 
The Chairperson shall be compensated at a rate equal to the daily 
equivalent of the annual rate of basic pay prescribed for level II of 
the Executive Schedule under section 5315 of title 5, United States 
Code.
    (b) Travel Expenses.--The members of the Board shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code, while away from their homes or regular 
places of business in the performance of services for the Board.
    (c) Staff.--
            (1) In general.--The Chairperson may, without regard to the 
        civil service laws and regulations, appoint and terminate an 
        executive director and such other additional personnel as may 
        be necessary to enable the Board to perform its duties. The 
        employment of an executive director shall be subject to 
        confirmation by the Board.
            (2) Compensation.--The Chairperson may fix the compensation 
        of the executive director and other personnel without regard to 
        chapter 51 and subchapter III of chapter 53 of title 5, United 
        States Code, relating to classification of positions and 
        General Schedule pay rates, except that the rate of pay for the 
        executive director and other personnel may not exceed the rate 
        payable for level V of the Executive Schedule under section 
        5316 of such title.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Board without reimbursement, and such 
detail shall be without interruption or loss of civil service status or 
privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairperson may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, at rates for 
individuals which do not exceed the daily equivalent of the annual rate 
of basic pay prescribed for level V of the Executive Schedule under 
section 5316 of such title.

SEC. 6. CONGRESSIONAL CONSIDERATION OF BOARD RECOMMENDATIONS.

    (a) Introduction.--
            (1) In general.--On the day on which the report is 
        submitted by the Board to the Congress under section 3(a), the 
        legislative proposal (described in section 3(a)(4)) contained 
        in the report shall be introduced (by request) in the Senate by 
        the majority leader of the Senate or by Members of the Senate 
        designated by the majority leader of the Senate and shall be 
        introduced (by request) in the House by the majority leader of 
        the House or by Members of the House designated by the majority 
        leader of the House.
            (2) Not in session.--If either House is not in session on 
        the day on which such legislative proposal is submitted, the 
        legislative proposal shall be introduced in that House, as 
        provided in subparagraph (A), on the first day thereafter on 
        which that House is in session.
            (3) Any member.--If the legislative proposal is not 
        introduced in either House within 5 days on which that House is 
        in session after the day on which the legislative proposal is 
        submitted, then any Member of that House may introduce the 
        legislative proposal.
            (4) Referral.--The legislation introduced under this 
        subsection in the House of Representatives shall be referred to 
        the Committee on Oversight and Government Reform of the House 
        of Representatives. The legislation introduced under this 
        subsection in the Senate shall be referred to the Committee on 
        Homeland Security and Governmental Affairs of the Senate.
    (b) Discharge.--If the committee to which a legislative proposal 
described in subsection (a) is referred has not reported the bill 
containing such proposal by the end of the 20-day period beginning on 
the date on which the Board submits the report to Congress under 
section 3(a), such committee shall be, at the end of such period, 
discharged from further consideration of such bill, and such bill shall 
be placed on the appropriate calendar of the House involved.
    (c) Expedited Consideration.--
            (1) Consideration.--On or after the third day after the 
        date on which the committee to which such a bill is referred 
        has reported, or has been discharged (under subsection (b)) 
        from further consideration of, such a bill, it is in order 
        (even though a previous motion to the same effect has been 
        disagreed to) for any Member of the respective House to move to 
        proceed to the consideration of the bill. A member may make the 
        motion only on the day after the calendar day on which the 
        Member announces to the House concerned the Member's intention 
        to make the motion, except that, in the case of the House of 
        Representatives, the motion may be made without such prior 
        announcement if the motion is made by direction of the 
        committee to which the bill was referred. The motion is highly 
        privileged in the House of Representatives and is privileged in 
        the Senate and is not debatable. The motion is not subject to 
        amendment, or to a motion to postpone, or to a motion to 
        proceed to the consideration of other business. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to shall not be in order. If a motion to proceed to 
        the consideration of the bill is agreed to, the respective 
        House shall immediately proceed to consideration of the bill 
        without intervening motion, order, or other business, and the 
        bill shall remain the unfinished business of the respective 
        House until disposed of.
            (2) Debate.--Debate on the bill, and on all debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 2 hours, which shall be divided equally 
        between those favoring and those opposing the bill. An 
        amendment to the bill is not in order. A motion further to 
        limit debate is in order and not debatable. A motion to 
        postpone, or a motion to proceed to the consideration of other 
        business, or a motion to recommit the bill is not in order. A 
        motion to reconsider the vote by which the bill is agreed to or 
        disagreed to is not in order.
            (3) Vote on final passage.--Immediately following the 
        conclusion of the debate on the bill and a single quorum call 
        at the conclusion of the debate if requested in accordance with 
        the rules of the appropriate House, the vote on final passage 
        of the bill shall occur.
            (4) Appeals.--Appeals from the decisions of the Chair 
        relating to the application of the rules of the Senate or the 
        House of Representatives, as the case may be, to the procedure 
        relating to the bill shall be decided without debate.
    (d) Consideration by Other House.--
            (1) Before passage.--If, before the passage by one House of 
        a bill of that House described in subsection (b), that House 
        receives from the other House a bill described in subsection 
        (b), then the following procedures shall apply--
                    (A) the bill of the other House shall not be 
                referred to a committee and may not be considered in 
                the House receiving it except in the case of final 
                passage as provided in subparagraph (B)(ii); and
                    (B) with respect to a bill described in subsection 
                (b) of the House receiving the bill (i) the procedure 
                in that House shall be the same as if no bill had been 
                received from the other House; but (ii) the vote on 
                final passage shall be on the bill of the other House.
            (2) After passage.--Upon disposition of the bill received 
        from the other House, it shall no longer be in order to 
        consider the bill that originated in the receiving House.
    (e) Rules of the Senate and House.--This section is enacted by 
Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a bill described in subsection (b), 
        and it supersedes other rules only to the extent that it is 
        inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
    (f) Calendar Day Defined.--In this section, the term ``calendar 
day'' means a calendar day other than one on which either House is not 
in session because of an adjournment of more than three days to a date 
certain.

SEC. 7. TERMINATION OF THE BOARD.

    The Board shall terminate 120 days after the date on which the 
Board submits the report under section 3(a).
answer:
Government Waste Reduction Act of 2013 - Establishes the Independent Government Waste Reduction Board, the membership of which shall include individuals with national recognition for expertise in agencies, waste reduction, finance and economics, and actuarial sciences. Requires the Board to submit to Congress and the President a report that advises specific implementation of the recommendations from the March 2011 Government Accountability Office (GAO) report &quot;Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue&quot; and the February 2012 GAO report &quot;Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and Enhance Revenue.&quot; Sets forth procedures for congressional consideration of the Board's recommendations.


question:
SECTION 1. REPEAL OF THE MILITARY SELECTIVE SERVICE ACT.

    (a) Repeal.--The Military Selective Service Act (50 U.S.C. App. 451 
et seq.) is repealed.
    (b) Transfers in Connection With Repeal.--Notwithstanding the 
proviso in section 10(a)(4) of the Military Selective Service Act (50 
U.S.C. App. 460(a)(4)), the Office of Selective Service Records shall 
not be reestablished upon the repeal of such Act. The assets, 
contracts, property, and records held by the Selective Service System, 
and the unexpended balances of any appropriations available to the 
Selective Service System, shall be transferred to the Administrator of 
General Services upon the repeal of such Act. The Director of the 
Office of Personnel Management shall assist officers and employees of 
the Selective Service System to transfer to other positions in the 
executive branch.
    (c) Conforming Amendments.--
            (1) Title 5.--Title 5, United States Code, is amended--
                    (A) by striking out section 3328;
                    (B) in section 3551--
                            (i) by striking out ``, on release from 
                        duty within the time limits specified in 
                        section 9(g) of the Military Selective Service 
                        Act of 1967 (50 U.S.C. App. 459(g)),''; and
                            (ii) by striking out the second sentence; 
                        and
                    (C) in section 5102(b), by striking out ``, 
                including positions'' and all that follows through 
                ``those positions''.
            (2) Title 8.--The Immigration and Nationality Act (8 U.S.C. 
        1101 et seq.) is amended--
                    (A) in section 101(a)(19) (8 U.S.C. 1101(a)(19))--
                            (i) by striking out ``section 3(a) of the 
                        Selective Training and Service Act of 1940, as 
                        amended (54 Stat. 885; 55 Stat. 844), or under 
                        section 4(a) of the Selective Service Act of 
                        1948, as amended (62 Stat. 605; 65 Stat. 76) or 
                        under''; and
                            (ii) by striking ``sections or'';
                    (B) in section 241(a)(2)(D)(iii) (8 U.S.C. 
                1251(a)(2)(D)(iii)), by striking out ``the Military 
                Selective Service Act (50 U.S.C. App. 451 et seq.) 
                or'';
                    (C) in section 245(a)(4) (8 U.S.C. 1255a(a)(4))--
                            (i) by adding ``and'' at the end of 
                        subparagraph (B);
                            (ii) by striking out ``, and'' at the end 
                        of subparagraph (C) and inserting in lieu 
                        thereof a period; and
                            (iii) by striking out subparagraph (D); and
                    (D) in section 315(b) (8 U.S.C. 1426(b)), by 
                inserting ``former'' before ``Selective Service 
                System''.
            (3) Title 10.--Title 10, United States Code, is amended--
                    (A) in section 511(b), by striking out ``, and who 
                is not under orders to report for induction into an 
                armed force under the Military Selective Service Act 
                (50 U.S.C. App. 451 et seq.),'';
                    (B) in section 511(d), by striking out ``and who is 
                not under orders to report for induction into an armed 
                force under the Military Selective Service Act (50 
                U.S.C. App. 451 et seq.), except as provided in section 
                6(c)(2)(A) (ii) and (iii) of such Act,'';
                    (C) in section 512(a)--
                            (i) by striking out ``or under the Military 
                        Selective Service Act (50 U.S.C. App. 451 et 
                        seq.),'' in the first sentence; and
                            (ii) by striking out ``or under the 
                        Military Selective Service Act (50 U.S.C. App. 
                        451 et seq.)'' in the third sentence;
                    (D) in section 513--
                            (i) in subsection (a), by striking out 
                        ``(except as provided in subsection (c))''; and
                            (ii) by striking out subsection (c);
                    (E) by striking out paragraph (7) of section 
                523(b);
                    (F) in section 595(a)--
                            (i) by striking out ``or under the Military 
                        Selective Service Act (50 U.S.C. App. 451 et 
                        seq.),'' in the first sentence; and
                            (ii) by striking out ``or under the 
                        Military Selective Service Act (50 U.S.C. App. 
                        451 et seq.)'' in the third sentence;
                    (G) in section 641(1)--
                            (i) by inserting ``or'' at the end of 
                        subparagraph (E);
                            (ii) by striking out subparagraph (F); and
                            (iii) by redesignating subparagraph
                    (G) as subparagraph (F);
                    (H) in section 651(a), by striking out ``, other 
                than a person deferred under the next to the last 
                sentence of section 6(d)(1) of the Military Selective 
                Service Act (50 U.S.C App. 456(d)(1))'';
                    (I) in section 1007--
                            (i) by striking out ``who is assigned to 
                        the Selective Service System or'';
                            (ii) by striking out ``assignment or''; and
                            (iii) by striking out ``assigned to the 
                        Selective Service System or'' in the section 
                        heading;
                    (J) in the table of contents at the beginning of 
                chapter 51, by striking out the item relating to 
                section 1007 and inserting in lieu thereof the 
                following new item:

``1007. Commissioned officers: retention in active status while serving 
                            as United States property and fiscal 
                            officers.''; and
                    (K) in section 1475(a)(5), by striking out ``who--
                '' and all that follows through the period and 
                inserting in lieu thereof ``who has been provisionally 
                accepted for that duty.''.
            (4) Title 22.--Section 23 of the Peace Corps Act (22 U.S.C. 
        2520) is repealed.
            (5) Title 26.--Section 3121(n)(5) of the Internal Revenue 
        Act of 1986 (26 U.S.C. 3121(n)(5)) is amended by striking out 
        ``service--'' and all that follows through ``or air service;'' 
        and inserting in lieu thereof ``service who has been 
        provisionally accepted for such duty;''.
            (6) Title 28.--Section 631(j) of title 28, United States 
        Code, is amended--
                    (A) in the first sentence of paragraph (1), by 
                striking out ``A magistrate who is inducted'' and all 
                that follows through ``with such forces'' and inserting 
                in lieu thereof ``A magistrate who is ordered to active 
                duty with the Armed Forces of the United States''; and
                    (B) in paragraph (2), by striking out ``receives a 
                certificate of service under section 9(a) of the 
                Military Selective Service Act of 1967 (50 U.S.C. App. 
                459(a)), or''.
            (7) Title 29.--The Job Training Partnership Act (29 U.S.C. 
        1501 et seq.) is amended--
                    (A) by striking out section 604 (29 U.S.C. 1504); 
                and
                    (B) by striking out subsection (b) of section 426 
                (29 U.S.C. 1696).
            (8) Title 37.--Title 37, United States Code, is amended--
                    (A) in section 301(a), by striking out the last 
                sentence; and
                    (B) in section 308e(1), by striking out ``or under 
                section 6(d)(1) of the Military Selective Service Act 
                (50 U.S.C. App. 456(d)(1)'' both places it appears.
            (9) Title 38.--Title 38, United States Code, is amended--
                    (A) in section 2021(a)--
                            (i) by striking out ``the Military 
                        Selective Service Act (or under any prior or 
                        subsequent corresponding law)'' and inserting 
                        in lieu thereof ``a law providing for such 
                        induction''; and
                            (ii) by striking out ``a certificate 
                        described in section 9(a) of the Military 
                        Selective Service Act (relating to the 
                        satisfactory completion of military service)'' 
                        and inserting in lieu thereof ``a certificate 
                        relating to the satisfactory completion of 
                        military service''; and
                    (B) in section 2024(a)--
                            (i) by striking out ``the provisions of the 
                        Military Selective Service Act (or prior or 
                        subsequent''; and
                            (ii) by striking out ``Armed Forces)'' and 
                        inserting in lieu thereof ``Armed Forces''.
            (10) Title 42.--(A) Section 210(m) of the Social Security 
        Act (42 U.S.C. 410(m)) is amended by striking out ``service--'' 
        and all that follows through ``or air service;'' and inserting 
        in lieu thereof ``service who has been provisionally accepted 
        for such duty;''.
            (B) Section 1007(b) of the Legal Services Corporation Act 
        (42 U.S.C. 2996f(b)) is amended by striking out paragraph (10) 
        and inserting in lieu thereof the following new paragraph:
            ``(10) to provide legal assistance with respect to any 
        proceeding or litigation arising out of desertion from the 
        Armed Forces.''.
    (d) Effective Date.--This Act, and the amendments made by this Act, 
shall take effect 180 days after the date of the enactment of this Act.
answer:
Repeals the Military Selective Service Act. 
Bars the reestablishment of the Office of Selective Service Records. 
Requires:  (1) the transfer to the Administrator of General Services of the assets, property, and records held by, and the unexpended balances of any appropriations available to, the Selective Service System (SSS); and (2) the Director of the Office of Personnel Management to assist SSS officers and employees in transferring to other positions in the executive branch. 
Amends the Legal Services Corporation (LSC) Act to bar the use of LSC funds to provide legal assistance with respect to any proceeding or litigation arising out of desertion from the armed forces.


question:
SECTION 1. EXTENDED PHASE-IN OF THE INPATIENT REHABILITATION FACILITY 
              CLASSIFICATION CRITERIA.

    (a) In General.--Section 5005 of the Deficit Reduction Act of 2005 
is amended--
            (1) in subsection (a), by striking ``apply the applicable 
        percent specified in subsection (b)'' and inserting ``require a 
        compliance rate that is no greater than the 60 percent 
        compliance rate that became effective for cost reporting 
        periods beginning on or after July 1, 2006''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) Continued Use of Comorbidities.--For cost reporting periods 
beginning on or after July 1, 2008, the Secretary shall include 
patients with comorbidities as described in section 412.23(b)(2)(i) of 
title 42, Code of Federal Regulations (as in effect as of January 1, 
2007), in the inpatient population that counts towards the percent 
specified in subsection (a).''.
    (b) Medical Necessity Criteria for Beneficiaries Served in 
Rehabilitation Hospitals and Units.--The Centers for Medicare & 
Medicaid Services and Medicare fiscal intermediaries, Medicare 
administrative contractors, recovery audit contractors, and other 
government agents shall use and apply the criteria established in HCFA 
Ruling 85-2, as issued on July 31, 1985 (50 Fed. Reg. 31040), as the 
sole standard for determining the medical necessity of services 
provided by inpatient rehabilitation hospitals and units to Medicare 
beneficiaries under title XVIII of the Social Security Act.

SEC. 2. RECOMMENDATIONS FOR CLASSIFYING INPATIENT REHABILITATION 
              HOSPITALS AND UNITS.

    (a) Report to Congress.--Not later than 12 months after the date of 
the enactment of this Act, the Secretary of Health and Human Services, 
in consultation with physicians, administrators of inpatient 
rehabilitation and acute care hospitals, Medicare beneficiaries, and 
trade organizations representing inpatient rehabilitation hospitals and 
units, shall submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report 
that includes--
            (1) an examination of the impact of the 75 percent rule on 
        the Medicare program and the specific impact of the rule on 
        Medicare beneficiaries; and
            (2) alternatives to the 75 percent rule policy for 
        determining exclusion criteria for inpatient rehabilitation 
        hospital and unit designation under the Medicare program, 
        including determining clinical appropriateness of inpatient 
        rehabilitation hospital and unit admissions, and including 
        alternative criteria based solely on a measure of a patient's 
        functional status which is independent of diagnosis.
For the purposes of this section, the term ``75 percent rule'' means 
the requirement of section 412.23(b)(2) of title 42, Code of Federal 
Regulations, that 75 percent of the patients of a rehabilitation 
hospital or converted rehabilitation unit are in 1 or more of 13 listed 
treatment categories.
    (b) Considerations.--In developing the report described in 
subsection (a), the Secretary shall include the following:
            (1) The effect of the 75 percent rule on access to 
        inpatient hospital rehabilitation care by Medicare 
        beneficiaries and the effectiveness of care available to such 
        beneficiaries in other health care settings.
            (2) A comparative analysis of the overall Medicare system 
        costs, including Medicare expenditures to acute care hospitals, 
        home health agencies, skilled nursing facilities, and long-term 
        care hospitals, resulting from implementation of the 75 percent 
        rule.
            (3) A analysis that compares the quality, cost, and patient 
        outcomes of inpatient rehabilitation services among different 
        post-acute care settings, including whether the Medicare 
        program and Medicare beneficiaries may incur higher costs of 
        care for the entire episode of illness because of factors such 
        as--
                    (A) readmissions to acute care hospitals that could 
                have been avoided absent the 75 percent rule; or
                    (B) extended lengths of stay in post-acute settings 
                other than a rehabilitation hospital or unit because 
                beneficiaries were denied access to care in such a 
                hospital or unit due to the 75 percent rule.

SEC. 3. TECHNICAL CORRECTION FOR INPATIENT REHABILITATION HOSPITALS AND 
              UNITS NOMENCLATURE.

    (a) In General.--Section 1886(j) of the Social Security Act (42 
U.S.C. 1395ww(j)) is amended--
            (1) in paragraph (1)(A), by striking ``(in this subsection 
        referred to as a `rehabilitation facility'), other than a 
        facility'' and inserting ``other than a hospital or unit'';
            (2) by striking ``rehabilitation facility'' and 
        ``facility'' and inserting ``inpatient rehabilitation hospital 
        or a rehabilitation unit'' and ``hospital or unit'', 
        respectively, each place it appears;
            (3) by striking ``rehabilitation facilities'' and inserting 
        ``inpatient rehabilitation hospitals or rehabilitation units'' 
        each place it appears; and
            (4) in paragraph (6), by striking ``rehabilitation 
        facilities' costs'' and inserting ``costs of inpatient 
        rehabilitation hospitals or rehabilitation units''.
    (b) Use of the Term ``IRH/U''.--The Secretary of Health and Human 
Services shall, under regulation and Medicare program guidance, use the 
term ``inpatient rehabilitation hospital/unit'' or ``IRH/U'' to refer 
to entities receiving payment for inpatient rehabilitation services 
under section 1886(j) of the Social Security Act (42 U.S.C. 1395ww(j)).

SEC. 4. EFFECTIVE DATE.

    Sections 1 and 3 of this Act shall take effect on July 1, 2007, and 
section 2 shall take effect on the date of the enactment of this Act.
answer:

Amends the Deficit Reduction Act of 2005 to revise the classification criterion used to determine whether a hospital or hospital unit is an inpatient rehabilitation facility under title XVIII (Medicare) of the Social Security Act. Eliminates the current schedule of applicable percentages. Directs the Secretary of Health and Human Services, instead, to require in the classification criterion a compliance rate no greater than the 60% compliance rate that became effective for cost reporting periods beginning on or after July 1, 2006.

Requires the Secretary, for cost reporting periods beginning on or after July 1, 2008, to include patients with comorbidity in the inpatient population that counts towards such 60% compliance rate.

Requires the Centers for Medicare & Medicaid Services and Medicare fiscal intermediaries, Medicare administrative contractors, recovery audit contractors, and other government agents to use and apply the criteria established in HCFA Ruling 85-2, as issued on July 31, 1985, as the sole standard for determining the medical necessity of servivces provided by inpatient rehabilitation hospitals and units to Medicare beneficiaries.

Directs the Secretary to report to specified congressional committees: (1) an examination of the impact of the 75% rule on the Medicare program, and specifically on Medicare beneficiaries; and (2) alternatives to the 75% rule policy for determining exclusion criteria for inpatient rehabilitation hospital and unit designation under the Medicare program.