II
112th CONGRESS
2d Session
H. R. 6684
IN THE SENATE OF THE UNITED STATES
December 21, 2012
Received
AN ACT
To provide for spending reduction.
Short title
This Act may be cited as the
Spending Reduction Act of
2012
.
Table of contents
The table of contents is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Title I—Agriculture
Sec. 101. ARRA sunset at March 1, 2013.
Sec. 102. Categorical eligibility limited to cash assistance.
Sec. 103. Standard utility allowances based on the receipt of energy assistance payments.
Sec. 104. Employment and training; workfare.
Sec. 105. End State bonus program for the supplemental nutrition assistance program.
Sec. 106. Funding of employment and training programs.
Sec. 107. Turn off indexing for nutrition education and obesity prevention.
Sec. 108. Extension of Authorization of Food and Nutrition Act of 2008.
Sec. 109. Effective date and application of amendments.
Title II—Committee on Energy and Commerce
Subtitle A—Repeal of Certain ACA Funding Provisions
Sec. 201. Repealing mandatory funding to states to establish American Health Benefit Exchanges.
Sec. 202. Repealing Prevention and Public Health Fund.
Sec. 203. Rescinding unobligated balances for CO-OP program.
Subtitle B—Medicaid
Sec. 211. Revision of provider tax indirect guarantee threshold.
Sec. 212. Rebasing of State DSH allotments for fiscal year 2022.
Sec. 213. Repeal of Medicaid and CHIP maintenance of effort requirements under PPACA.
Sec. 214. Medicaid payments to territories.
Sec. 215. Repealing bonus payments for enrollment under Medicaid and CHIP.
Title III—Financial Services
Sec. 301. Table of contents.
Subtitle A—Orderly Liquidation Fund
Sec. 311. Repeal of liquidation authority.
Subtitle B—Home Affordable Modification Program
Sec. 321. Short title.
Sec. 322. Congressional findings.
Sec. 323. Termination of authority.
Sec. 324. Sense of Congress.
Subtitle C—Bureau of Consumer Financial Protection
Sec. 331. Bringing the Bureau of Consumer Financial Protection into the regular appropriations process.
Subtitle D—Repeal of the Office of Financial Research
Sec. 341. Repeal of the Office of Financial Research.
Title IV—Committee on the Judiciary
Sec. 401. Short title.
Sec. 402. Encouraging speedy resolution of claims.
Sec. 403. Compensating patient injury.
Sec. 404. Maximizing patient recovery.
Sec. 405. Punitive damages.
Sec. 406. Authorization of payment of future damages to claimants in health care lawsuits.
Sec. 407. Definitions.
Sec. 408. Effect on other laws.
Sec. 409. State flexibility and protection of States’ rights.
Sec. 410. Applicability; effective date.
Title V—Committee on Oversight and Government Reform
Sec. 501. Retirement contributions.
Sec. 502. Annuity supplement.
Sec. 503. Contributions to Thrift Savings Fund of payments for accrued or accumulated leave.
Title VI—Committee on Ways and Means
Subtitle A—Recapture of overpayments resulting from certain federally-subsidized health insurance
Sec. 601. Recapture of overpayments resulting from certain federally-subsidized health insurance.
Subtitle B—Social security number required to claim the refundable portion of the child tax credit
Sec. 611. Social security number required to claim the refundable portion of the child tax credit.
Subtitle C—Human Resources Provisions
Sec. 621. Repeal of the program of block grants to States for social services.
Title VII—Sequester replacement
Sec. 701. Short title.
Sec. 702. Protecting veterans programs from sequester.
Sec. 703. Achieving $19 billion in discretionary savings.
Sec. 704. Conforming amendments to section 314 of the Congressional Budget and Impoundment Control Act of 1974.
Sec. 705. Treatment for PAYGO purposes.
Sec. 706. Elimination of the fiscal year 2013 sequestration for defense direct spending.
Agriculture
ARRA sunset at March 1, 2013
Section
101(a)(2) of division A of the American Recovery and Reinvestment Act of 2009
(Public Law
111–5; 123 Stat. 120) is amended by striking October 31,
2013
and inserting February 28, 2013
.
Categorical eligibility limited to cash assistance
Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—
in the 2d sentence of subsection (a) by
striking households in which each member receives benefits
and
inserting households in which each member receives cash
assistance
, and
in subsection (j) by striking or who
receives benefits under a State program
and inserting or who
receives cash assistance under a State program
.
Standard utility allowances based on the receipt of energy assistance payments
Standard utility allowance
Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—
in subsection (e)(6)(C) by striking clause (iv), and
in subsection (k) by striking paragraph (4) and inserting the following:
Third party energy assistance payments
For purposes of subsection (d)(1), a payment made under a State law (other than a law referred to in paragraph (2)(G)) to provide energy assistance to a household shall be considered money payable directly to the household.
.
Conforming amendments
Section 2605(f)(2) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)) is amended—
by striking
and for purposes of determining any excess shelter expense deduction
under section 5(e) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(e))
, and
in subparagraph
(A) by inserting before the semicolon the following: , except that such
payments or allowances shall not be deemed to be expended for purposes of
determining any excess shelter expense deduction under section 5(e)(6) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6))
.
Employment and training; workfare
Administrative cost-sharing for employment and training programs
In general
Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is amended—
in subsection (a)
by inserting (other than a program carried out under section 6(d)(4) or
section 20)
after supplemental nutrition assistance
program
the 1st place it appears, and
in subsection (h)—
by striking paragraphs (2) and (3), and
by redesignating paragraphs (4) and (5) as paragraphs (2) and (3), respectively.
Conforming amendments
Section
17(b)(1)(B)(iv)(III)(hh) of the Food and Nutrition Act of 2008 (7 U.S.C.
2026(b)(1)(B)(iv)(III)(hh)) is amended by striking (g), (h)(2), or
(h)(3)
and inserting or (g)
.
Section
22(d)(1)(B)(ii) of the Food and Nutrition Act of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is
amended is amended by striking , (g), (h)(2), and (h)(3)
and
inserting and (g)
.
Administrative cost-sharing and reimbursements for workfare
Section 20 of the Food and Nutrition Act of 2008 (7 U.S.C. 2029) is amended by striking subsection (g).
End State bonus program for the supplemental nutrition assistance program
Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is amended by striking subsection (d).
Funding of employment and training programs
For purposes of fiscal year 2013, the reference to $90,000,000 in section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) shall be deemed to be a reference to $79,000,000.
Turn off indexing for nutrition education and obesity prevention
Section 28(d) of the Food and Nutrition Act
of 2008 (7 U.S.C.
2037(d)) is amended by striking years—
and all
that follows through the period at the end, and inserting years,
$375,000,000.
.
Extension of Authorization of Food and Nutrition Act of 2008
Section 18(a)(1) of the Food and Nutrition
Act of 2008 (7 U.S.C.
2027(a)(1)) is amended by striking 2012
and
inserting 2013
.
Effective date and application of amendments
This title and the amendments made by this title shall take effect on the date of enactment of this Act, and shall apply only with respect to certification periods that begin on or after such date.
Committee on Energy and Commerce
Repeal of Certain ACA Funding Provisions
Repealing mandatory funding to states to establish American Health Benefit Exchanges
In general
Section 1311(a) of the Patient Protection and Affordable Care Act (42 U.S.C. 18031(a)) is repealed.
Rescission of unobligated funds
Of the funds made available under such section 1311(a), the unobligated balance is rescinded.
Repealing Prevention and Public Health Fund
In general
Section 4002 of the Patient Protection and Affordable Care Act (42 U.S.C. 300u–11) is repealed.
Rescission of unobligated funds
Of the funds made available by such section 4002, the unobligated balance is rescinded.
Rescinding unobligated balances for CO-OP program
Of the funds made available under section 1322(g) of the Patient Protection and Affordable Care Act (42 U.S.C. 18042(g)), the unobligated balance is rescinded.
Medicaid
Revision of provider tax indirect guarantee threshold
Section 1903(w)(4)(C)(ii) of the Social
Security Act (42
U.S.C. 1396b(w)(4)(C)(ii)) is amended by inserting and
for portions of fiscal years beginning on or after June 1, 2013,
after
October 1, 2011,
.
Rebasing of State DSH allotments for fiscal year 2022
Section 1923(f) of the Social Security Act (42 U.S.C. 1396r–4(f)) is amended—
by redesignating paragraph (9) as paragraph (10);
in paragraph
(3)(A) by striking paragraphs (6), (7), and (8)
and inserting
paragraphs (6), (7), (8), and (9)
; and
by inserting after paragraph (8) the following new paragraph:
Rebasing of State DSH allotments for fiscal year 2022
With respect to fiscal 2022, for purposes of applying paragraph (3)(A) to determine the DSH allotment for a State, the amount of the DSH allotment for the State under paragraph (3) for fiscal year 2021 shall be treated as if it were such amount as reduced under paragraph (7).
.
Repeal of Medicaid and CHIP maintenance of effort requirements under PPACA
Repeal of PPACA Medicaid MOE
Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended by striking subsection (gg).
Repeal of PPACA CHIP MOE
Section 2105(d)(3) of the Social Security Act (42 U.S.C. 1397ee(d)(3)) is amended—
by striking subparagraph (A);
by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and
in the paragraph
heading, by striking Continuation of eligibility standards for children until October 1,
2019
and inserting Continuity of
coverage
.
Conforming amendments
Section 1902(a) of the Social Security Act (42 U.S.C. 1396a(a)) is amended by striking paragraph (74).
Effective January 1, 2014, paragraph (14) of section 1902(e) (as added by section 2002(a) of Public Law 111–148) is amended by striking the third sentence of subparagraph (A).
Effective date
Except as provided in subsection (c)(2), the amendments made by this section shall take effect on the date of the enactment of this section.
Medicaid payments to territories
Limit on payments
Section 1108(g) of the Social Security Act (42 U.S.C. 1308(g)) is amended—
in paragraph (2)—
by striking
paragraphs (3) and (5)
; and
by inserting
paragraph (3)
after and subject to
;
in paragraph (4),
by striking (3), and
and all that follows through of this
subsection
and inserting and (3) of this subsection
;
and
by striking paragraph (5).
FMAP
The first sentence of section 1905(b) of
the Social Security Act (42 U.S.C. 1396d(b)) is amended by
striking shall be 55 percent
and inserting shall be 50
percent
.
Repealing bonus payments for enrollment under Medicaid and CHIP
In general
Paragraphs (3) and (4) of section 2105(a) of the Social Security Act (42 U.S.C. 1397ee(a)) are repealed.
Rescission of unobligated funds
Of the funds made available by section 2105(a)(3) of the Social Security Act, the unobligated balance is rescinded.
Conforming changes
Availability of excess funds for performance bonuses
Section 2104(n)(2) of the Social Security Act (42 U.S.C. 1397dd(n)(2)) is amended by striking subparagraph (D).
Outreach or coverage benchmarks
Section 2111(b)(3) of the Social Security Act (42 U.S.C. 1397kk(b)(3)) is amended—
in subparagraph (A)—
in clause (i), by inserting
or
after the semicolon at the end; and
by striking clause (ii); and
by striking subparagraph (C).
Financial Services
Table of contents
The table of contents for this title is as follows:
Sec. 301. Table of contents.
Subtitle A—Orderly Liquidation Fund
Sec. 311. Repeal of liquidation authority.
Subtitle B—Home Affordable Modification Program
Sec. 321. Short title.
Sec. 322. Congressional findings.
Sec. 323. Termination of authority.
Sec. 324. Sense of Congress.
Subtitle C—Bureau of Consumer Financial Protection
Sec. 331. Bringing the Bureau of Consumer Financial Protection into the regular appropriations process.
Subtitle D—Repeal of the Office of Financial Research
Sec. 341. Repeal of the Office of Financial Research.
Orderly Liquidation Fund
Repeal of liquidation authority
In general
Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act is hereby repealed and any Federal law amended by such title shall, on and after the date of enactment of this Act, be effective as if title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act had not been enacted.
Conforming amendments
Dodd-Frank Wall Street Reform and Consumer Protection Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended—
in the table of contents for such Act, by striking all items relating to title II;
in section
165(d)(6), by striking , a receiver appointed under title
II,
;
in section 716(g),
by striking or a covered financial company under title
II
;
in section
1105(e)(5), by striking amount of any securities issued under that
chapter 31 for such purpose shall be treated in the same manner as securities
issued under section 208(n)(5)(E)
and inserting issuances of
such securities under that chapter 31 for such purpose shall by treated as
public debt transactions of the United States, and the proceeds from the sale
of any obligations acquired by the Secretary under this paragraph shall be
deposited into the Treasury of the United States as miscellaneous
receipts
; and
in section 1106(c)(2), by amending subparagraph (A) to read as follows:
require the company to file a petition for bankruptcy under section 301 of title 11, United States Code; or
.
Federal Deposit Insurance Act
Section
10(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended by
striking , or of such nonbank financial company supervised by the Board
of Governors or bank holding company described in section 165(a) of the
Financial Stability Act of 2010, for the purpose of implementing its authority
to provide for orderly liquidation of any such company under title II of that
Act
.
Federal Reserve Act
Section 13(3) of the Federal Reserve Act is amended—
in subparagraph (B)—
in
clause (ii), by striking , resolution under title II of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, or
and inserting
or is subject to resolution under
; and
in
clause (iii), by striking , resolution under title II of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, or
and inserting
or resolution under
; and
by striking subparagraph (E).
Home Affordable Modification Program
Short title
This subtitle may be
cited as the HAMP Termination Act of
2012
.
Congressional findings
The Congress finds the following:
According to the Department of the Treasury—
the Home
Affordable Modification Program (HAMP) is designed to help as many as 3
to 4 million financially struggling homeowners avoid foreclosure by modifying
loans to a level that is affordable for borrowers now and sustainable over the
long term
; and
as of October 2012, only 840,835 active permanent mortgage modifications were made under HAMP.
Many homeowners whose HAMP modifications were canceled suffered because they made futile payments and some of those homeowners were even forced into foreclosure.
The Special
Inspector General for TARP reported that HAMP benefits only a small
portion of distressed homeowners, offers others little more than false hope,
and in certain cases causes more harm than good
.
Approximately $30 billion was obligated by the Department of the Treasury to HAMP, however, approximately only $4.34 billion has been disbursed.
Terminating HAMP would save American taxpayers approximately $2.84 billion, according to the Congressional Budget Office.
Termination of authority
Section 120 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5230) is amended by adding at the end the following new subsection:
Termination of authority To provide new assistance under the Home Affordable Modification Program
In general
Except as provided under paragraph (2), after the date of the enactment of this subsection the Secretary may not provide any assistance under the Home Affordable Modification Program under the Making Home Affordable initiative of the Secretary, authorized under this Act, on behalf of any homeowner.
Protection of existing obligations on behalf of homeowners already extended an offer to participate in the Program
Paragraph (1) shall not apply with respect to assistance provided on behalf of a homeowner who, before the date of the enactment of this subsection, was extended an offer to participate in the Home Affordable Modification Program on a trial or permanent basis.
Deficit reduction
Use of unobligated funds
Notwithstanding any other provision of this title, the amounts described in subparagraph (B) shall not be available after the date of the enactment of this subsection for obligation or expenditure under the Home Affordable Modification Program of the Secretary, but should be covered into the General Fund of the Treasury and should be used only for reducing the budget deficit of the Federal Government.
Identification of unobligated funds
The amounts described in this subparagraph are any amounts made available under title I of the Emergency Economic Stabilization Act of 2008 that—
have been allocated for use, but not yet obligated as of the date of the enactment of this subsection, under the Home Affordable Modification Program of the Secretary; and
are not necessary for providing assistance under such Program on behalf of homeowners who, pursuant to paragraph (2), may be provided assistance after the date of the enactment of this subsection.
Study of use of program by members of the Armed Forces, veterans, and Gold Star recipients
Study
The Secretary shall conduct a study to determine the extent of usage of the Home Affordable Modification Program by, and the impact of such Program on, covered homeowners.
Report
Not later than the expiration of the 90-day period beginning on the date of the enactment of this subsection, the Secretary shall submit to the Congress a report setting forth the results of the study under subparagraph (A) and identifying best practices, derived from studying the Home Affordable Modification Program, that could be applied to existing mortgage assistance programs available to covered homeowners.
Covered homeowner
For purposes of this subsection, the term
covered homeowner
means a homeowner who is—
a member of the Armed Forces of the United States on active duty or the spouse or parent of such a member;
a veteran, as such term is defined in section 101 of title 38, United States Code; or
eligible to receive a Gold Star lapel pin under section 1126 of title 10, United States Code, as a widow, parent, or next of kin of a member of the Armed Forces person who died in a manner described in subsection (a) of such section.
Publication of Member Availability for Assistance
Not later than 5 days after the date of the
enactment of this subsection, the Secretary of the Treasury shall publish to
its Website on the World Wide Web in a prominent location, large point font,
and boldface type the following statement: The Home Affordable
Modification Program (HAMP) has been terminated. If you are having trouble
paying your mortgage and need help contacting your lender or servicer for
purposes of negotiating or acquiring a loan modification, please contact your
Member of Congress to assist you in contacting your lender or servicer for the
purpose of negotiating or acquiring a loan modification.
.
Notification to HAMP Applicants Required
Not later than 30 days after the date of the enactment of this subsection, the Secretary of the Treasury shall inform each individual who applied for the Home Affordable Modification Program and will not be considered for a modification under such Program due to termination of such Program under this subsection—
that such Program has been terminated;
that loan modifications under such Program are no longer available;
of the name and contact information of such individual’s Member of Congress; and
that the individual should contact his or her Member of Congress to assist the individual in contacting the individual’s lender or servicer for the purpose of negotiating or acquiring a loan modification.
.
Sense of Congress
The Congress encourages banks to work with homeowners to provide loan modifications to those that are eligible. The Congress also encourages banks to work and assist homeowners and prospective homeowners with foreclosure prevention programs and information on loan modifications.
Bureau of Consumer Financial Protection
Bringing the Bureau of Consumer Financial Protection into the regular appropriations process
Section 1017 of the Consumer Financial Protection Act of 2010 is amended—
in subsection (a)—
by amending the
heading of such subsection to read as follows: Budget, financial management, and
audit.—
;
by striking paragraphs (1), (2), and (3);
by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively; and
by striking subparagraphs (E) and (F) of paragraph (1), as so redesignated;
by striking subsections (b), (c), and (d);
by redesignating subsection (e) as subsection (b); and
in subsection (b), as so redesignated—
by striking paragraphs (1), (2), and (3) and inserting the following:
Authorization of appropriations
There is authorized to be appropriated $200,000,000 to carry out this title for each of fiscal years 2013 and 2014.
; and
by redesignating paragraph (4) as paragraph (2).
Repeal of the Office of Financial Research
Repeal of the Office of Financial Research
In general
Subtitle B of title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act is hereby repealed.
Conforming amendments to the Dodd-Frank Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended—
in section 102(a), by striking paragraph (5);
in section 111—
in subsection (b)(2)—
by striking subparagraph (A); and
by redesignating subparagraphs (B), (C), (D), and (E) as subparagraphs (A), (B), (C), and (D), respectively;
in subsection
(c)(1), by striking subparagraphs (C), (D), and (E)
and
inserting subparagraphs (B), (C), and (D)
;
in section 112—
in subsection (a)(2)—
in
subparagraph (A), by striking direct the Office of Financial Research
to
;
by striking subparagraph (B); and
by redesignating subparagraphs (C), (D), (E), (F), (G), (H), (I), (J), (K), (L), (M), and (N) as subparagraphs (B), (C), (D), (E), (F), (G), (H), (I), (J), (K), (L), and (M), respectively; and
in subsection (d)—
in
paragraph (1), by striking the Office of Financial Research, member
agencies, and
and inserting member agencies and
;
in
paragraph (2), by striking the Office of Financial Research, any member
agency, and
and inserting any member agency and
;
in paragraph (3)—
by striking
, acting through the Office of Financial Research,
each place it
appears; and
in subparagraph
(B), by striking the Office of Financial Research or
; and
in
paragraph (5)(A), by striking , the Office of Financial
Research,
;
in section 116, by
striking , acting through the Office of Financial Research,
each
place it appears; and
by striking section 118.
Conforming amendment to the Paperwork Reduction Act
Effective as of the date specified in section 1100H of the Dodd-Frank Wall Street Reform and Consumer Protection Act, section 1100D(a) of such Act is amended to read as follows:
Designation as an independent agency
Section
3502(5) of subchapter I of
chapter 35 of title 44,
United States Code (commonly known as the Paperwork Reduction Act) is amended
by inserting the Bureau of Consumer Financial Protection,
after
the Securities and Exchange
Commission,
.
.
Technical amendments
The table of contents for the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended—
by striking the item relating to section 118; and
by striking the items relating to subtitle B of title I.
Committee on the Judiciary
Short title
This title may be cited
as the Help Efficient, Accessible,
Low-cost, Timely Healthcare (HEALTH) Act of 2012
.
Encouraging speedy resolution of claims
The time for the commencement of a health care lawsuit shall be 3 years after the date of manifestation of injury or 1 year after the claimant discovers, or through the use of reasonable diligence should have discovered, the injury, whichever occurs first. In no event shall the time for commencement of a health care lawsuit exceed 3 years after the date of manifestation of injury unless tolled for any of the following—
upon proof of fraud;
intentional concealment; or
the presence of a foreign body, which has no therapeutic or diagnostic purpose or effect, in the person of the injured person.
Compensating patient injury
Unlimited Amount of Damages for Actual Economic Losses in Health Care Lawsuits
In any health care lawsuit, nothing in this title shall limit a claimant’s recovery of the full amount of the available economic damages, notwithstanding the limitation in subsection (b).
Additional Noneconomic Damages
In any health care lawsuit, the amount of noneconomic damages, if available, may be as much as $250,000, regardless of the number of parties against whom the action is brought or the number of separate claims or actions brought with respect to the same injury.
No Discount of Award for Noneconomic Damages
Fair Share Rule
In any health care lawsuit, each party shall be liable for that party’s several share of any damages only and not for the share of any other person. Each party shall be liable only for the amount of damages allocated to such party in direct proportion to such party’s percentage of responsibility. Whenever a judgment of liability is rendered as to any party, a separate judgment shall be rendered against each such party for the amount allocated to such party. For purposes of this section, the trier of fact shall determine the proportion of responsibility of each party for the claimant’s harm.
Maximizing patient recovery
Court Supervision of Share of Damages Actually Paid to Claimants
In any health care lawsuit, the court shall supervise the arrangements for payment of damages to protect against conflicts of interest that may have the effect of reducing the amount of damages awarded that are actually paid to claimants. In particular, in any health care lawsuit in which the attorney for a party claims a financial stake in the outcome by virtue of a contingent fee, the court shall have the power to restrict the payment of a claimant’s damage recovery to such attorney, and to redirect such damages to the claimant based upon the interests of justice and principles of equity. In no event shall the total of all contingent fees for representing all claimants in a health care lawsuit exceed the following limits:
Forty percent of the first $50,000 recovered by the claimant(s).
Thirty-three and one-third percent of the next $50,000 recovered by the claimant(s).
Twenty-five percent of the next $500,000 recovered by the claimant(s).
Fifteen percent of any amount by which the recovery by the claimant(s) is in excess of $600,000.
Applicability
The limitations in this section shall apply whether the recovery is by judgment, settlement, mediation, arbitration, or any other form of alternative dispute resolution. In a health care lawsuit involving a minor or incompetent person, a court retains the authority to authorize or approve a fee that is less than the maximum permitted under this section. The requirement for court supervision in the first two sentences of subsection (a) applies only in civil actions.
Punitive damages
In General
Punitive damages may, if otherwise permitted by applicable State or Federal law, be awarded against any person in a health care lawsuit only if it is proven by clear and convincing evidence that such person acted with malicious intent to injure the claimant, or that such person deliberately failed to avoid unnecessary injury that such person knew the claimant was substantially certain to suffer. In any health care lawsuit where no judgment for compensatory damages is rendered against such person, no punitive damages may be awarded with respect to the claim in such lawsuit. No demand for punitive damages shall be included in a health care lawsuit as initially filed. A court may allow a claimant to file an amended pleading for punitive damages only upon a motion by the claimant and after a finding by the court, upon review of supporting and opposing affidavits or after a hearing, after weighing the evidence, that the claimant has established by a substantial probability that the claimant will prevail on the claim for punitive damages. At the request of any party in a health care lawsuit, the trier of fact shall consider in a separate proceeding—
whether punitive damages are to be awarded and the amount of such award; and
the amount of punitive damages following a determination of punitive liability.
Determining Amount of Punitive Damages
Factors considered
In determining the amount of punitive damages, if awarded, in a health care lawsuit, the trier of fact shall consider only the following—
the severity of the harm caused by the conduct of such party;
the duration of the conduct or any concealment of it by such party;
the profitability of the conduct to such party;
the number of products sold or medical procedures rendered for compensation, as the case may be, by such party, of the kind causing the harm complained of by the claimant;
any criminal penalties imposed on such party, as a result of the conduct complained of by the claimant; and
the amount of any civil fines assessed against such party as a result of the conduct complained of by the claimant.
Maximum award
The amount of punitive damages, if awarded, in a health care lawsuit may be as much as $250,000 or as much as two times the amount of economic damages awarded, whichever is greater. The jury shall not be informed of this limitation.
No Punitive Damages for Products That Comply With FDA Standards
In general
No punitive damages may be awarded against the manufacturer or distributor of a medical product, or a supplier of any component or raw material of such medical product, based on a claim that such product caused the claimant’s harm where—
such medical product was subject to premarket approval, clearance, or licensure by the Food and Drug Administration with respect to the safety of the formulation or performance of the aspect of such medical product which caused the claimant’s harm or the adequacy of the packaging or labeling of such medical product; and
such medical product was so approved, cleared, or licensed; or
such medical product is generally recognized among qualified experts as safe and effective pursuant to conditions established by the Food and Drug Administration and applicable Food and Drug Administration regulations, including without limitation those related to packaging and labeling, unless the Food and Drug Administration has determined that such medical product was not manufactured or distributed in substantial compliance with applicable Food and Drug Administration statutes and regulations.
Rule of construction
Liability of health care providers
A health care provider who prescribes, or who dispenses pursuant to a prescription, a medical product approved, licensed, or cleared by the Food and Drug Administration shall not be named as a party to a product liability lawsuit involving such product and shall not be liable to a claimant in a class action lawsuit against the manufacturer, distributor, or seller of such product. Nothing in this paragraph prevents a court from consolidating cases involving health care providers and cases involving products liability claims against the manufacturer, distributor, or product seller of such medical product.
Packaging
In a health care lawsuit for harm which is alleged to relate to the adequacy of the packaging or labeling of a drug which is required to have tamper-resistant packaging under regulations of the Secretary of Health and Human Services (including labeling regulations related to such packaging), the manufacturer or product seller of the drug shall not be held liable for punitive damages unless such packaging or labeling is found by the trier of fact by clear and convincing evidence to be substantially out of compliance with such regulations.
Exception
Paragraph (1) shall not apply in any health care lawsuit in which—
a person, before or after premarket approval, clearance, or licensure of such medical product, knowingly misrepresented to or withheld from the Food and Drug Administration information that is required to be submitted under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) or section 351 of the Public Health Service Act (42 U.S.C. 262) that is material and is causally related to the harm which the claimant allegedly suffered
a person made an illegal payment to an official of the Food and Drug Administration for the purpose of either securing or maintaining approval, clearance, or licensure of such medical product; or
the defendant caused the medical product which caused the claimant’s harm to be misbranded or adulterated (as such terms are used in chapter V of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 351 et seq.)).
Authorization of payment of future damages to claimants in health care lawsuits
In General
In any health care lawsuit, if an award of future damages, without reduction to present value, equaling or exceeding $50,000 is made against a party with sufficient insurance or other assets to fund a periodic payment of such a judgment, the court shall, at the request of any party, enter a judgment ordering that the future damages be paid by periodic payments, in accordance with the Uniform Periodic Payment of Judgments Act promulgated by the National Conference of Commissioners on Uniform State Laws.
Applicability
This section applies to all actions which have not been first set for trial or retrial before the effective date of this title.
Definitions
In this title:
Alternative dispute resolution system; ADR
The term alternative dispute resolution system or ADR means a system that provides for the resolution of health care lawsuits in a manner other than through a civil action brought in a State or Federal court.
Claimant
The term claimant means any person who brings a health care lawsuit, including a person who asserts or claims a right to legal or equitable contribution, indemnity, or subrogation, arising out of a health care liability claim or action, and any person on whose behalf such a claim is asserted or such an action is brought, whether deceased, incompetent, or a minor.
Compensatory damages
The term compensatory damages means objectively verifiable monetary losses incurred as a result of the provision of, use of, or payment for (or failure to provide, use, or pay for) health care services or medical products, such as past and future medical expenses, loss of past and future earnings, cost of obtaining domestic services, loss of employment, and loss of business or employment opportunities, damages for physical and emotional pain, suffering, inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium (other than loss of domestic service), hedonic damages, injury to reputation, and all other nonpecuniary losses of any kind or nature. The term compensatory damages includes economic damages and noneconomic damages, as such terms are defined in this section.
Contingent fee
The term contingent fee includes all compensation to any person or persons which is payable only if a recovery is effected on behalf of one or more claimants.
Economic damages
The term economic damages means objectively verifiable monetary losses incurred as a result of the provision of, use of, or payment for (or failure to provide, use, or pay for) health care services or medical products, such as past and future medical expenses, loss of past and future earnings, cost of obtaining domestic services, loss of employment, and loss of business or employment opportunities.
Health care lawsuit
The term health care lawsuit means any health care liability claim concerning the provision of health care goods or services or any medical product affecting interstate commerce, or any health care liability action concerning the provision of health care goods or services or any medical product affecting interstate commerce, brought in a State or Federal court or pursuant to an alternative dispute resolution system, against a health care provider, a health care organization, or the manufacturer, distributor, supplier, marketer, promoter, or seller of a medical product, regardless of the theory of liability on which the claim is based, or the number of claimants, plaintiffs, defendants, or other parties, or the number of claims or causes of action, in which the claimant alleges a health care liability claim. Such term does not include a claim or action which is based on criminal liability; which seeks civil fines or penalties paid to Federal, State, or local government; or which is grounded in antitrust.
Health care liability action
The term health care liability action means a civil action brought in a State or Federal court or pursuant to an alternative dispute resolution system, against a health care provider, a health care organization, or the manufacturer, distributor, supplier, marketer, promoter, or seller of a medical product, regardless of the theory of liability on which the claim is based, or the number of plaintiffs, defendants, or other parties, or the number of causes of action, in which the claimant alleges a health care liability claim.
Health care liability claim
The term health care liability claim means a demand by any person, whether or not pursuant to ADR, against a health care provider, health care organization, or the manufacturer, distributor, supplier, marketer, promoter, or seller of a medical product, including, but not limited to, third-party claims, cross-claims, counter-claims, or contribution claims, which are based upon the provision of, use of, or payment for (or the failure to provide, use, or pay for) health care services or medical products, regardless of the theory of liability on which the claim is based, or the number of plaintiffs, defendants, or other parties, or the number of causes of action.
Health care organization
The term health care organization means any person or entity which is obligated to provide or pay for health benefits under any health plan, including any person or entity acting under a contract or arrangement with a health care organization to provide or administer any health benefit.
Health care provider
The term health care provider means any person or entity required by State or Federal laws or regulations to be licensed, registered, or certified to provide health care services, and being either so licensed, registered, or certified, or exempted from such requirement by other statute or regulation.
Health care goods or services
The term health care goods or services means any goods or services provided by a health care organization, provider, or by any individual working under the supervision of a health care provider, that relates to the diagnosis, prevention, or treatment of any human disease or impairment, or the assessment or care of the health of human beings.
Malicious intent to injure
The term malicious intent to injure means intentionally causing or attempting to cause physical injury other than providing health care goods or services.
Medical product
The term medical product means a drug, device, or biological product intended for humans, and the terms drug, device, and biological product have the meanings given such terms in sections 201(g)(1) and 201(h) of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321(g)(1) and (h)) and section 351(a) of the Public Health Service Act (42 U.S.C. 262(a)), respectively, including any component or raw material used therein, but excluding health care services.
Noneconomic damages
The term noneconomic damages means damages for physical and emotional pain, suffering, inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium (other than loss of domestic service), hedonic damages, injury to reputation, and all other nonpecuniary losses of any kind or nature.
Punitive damages
The term punitive damages means damages awarded, for the purpose of punishment or deterrence, and not solely for compensatory purposes, against a health care provider, health care organization, or a manufacturer, distributor, or supplier of a medical product. Punitive damages are neither economic nor noneconomic damages.
Recovery
The term recovery means the net sum recovered after deducting any disbursements or costs incurred in connection with prosecution or settlement of the claim, including all costs paid or advanced by any person. Costs of health care incurred by the plaintiff and the attorneys’ office overhead costs or charges for legal services are not deductible disbursements or costs for such purpose.
State
The term State means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States, or any political subdivision thereof.
Effect on other laws
Vaccine Injury
To the extent that title XXI of the Public Health Service Act establishes a Federal rule of law applicable to a civil action brought for a vaccine-related injury or death—
this title does not affect the application of the rule of law to such an action; and
any rule of law prescribed by this title in conflict with a rule of law of such title XXI shall not apply to such action.
If there is an aspect of a civil action brought for a vaccine-related injury or death to which a Federal rule of law under title XXI of the Public Health Service Act does not apply, then this title or otherwise applicable law (as determined under this title) will apply to such aspect of such action.
Other Federal Law
Except as provided in this section, nothing in this title shall be deemed to affect any defense available to a defendant in a health care lawsuit or action under any other provision of Federal law.
State flexibility and protection of States’ rights
Health Care Lawsuits
The provisions governing health care lawsuits set forth in this title preempt, subject to subsections (b) and (c), State law to the extent that State law prevents the application of any provisions of law established by or under this title. The provisions governing health care lawsuits set forth in this title supersede chapter 171 of title 28, United States Code, to the extent that such chapter—
provides for a greater amount of damages or contingent fees, a longer period in which a health care lawsuit may be commenced, or a reduced applicability or scope of periodic payment of future damages, than provided in this title; or
prohibits the introduction of evidence regarding collateral source benefits, or mandates or permits subrogation or a lien on collateral source benefits.
Protection of States’ Rights and Other Laws
Any issue that is not governed by any provision of law established by or under this title (including State standards of negligence) shall be governed by otherwise applicable State or Federal law.
This title shall not preempt or supersede any State or Federal law that imposes greater procedural or substantive protections for health care providers and health care organizations from liability, loss, or damages than those provided by this title or create a cause of action.
State Flexibility
No provision of this title shall be construed to preempt—
any State law (whether effective before, on, or after the date of the enactment of this Act) that specifies a particular monetary amount of compensatory or punitive damages (or the total amount of damages) that may be awarded in a health care lawsuit, regardless of whether such monetary amount is greater or lesser than is provided for under this title, notwithstanding section 303(a); or
any defense available to a party in a health care lawsuit under any other provision of State or Federal law.
Applicability; effective date
This title shall apply to any health care lawsuit brought in a Federal or State court, or subject to an alternative dispute resolution system, that is initiated on or after the date of the enactment of this Act, except that any health care lawsuit arising from an injury occurring prior to the date of the enactment of this Act shall be governed by the applicable statute of limitations provisions in effect at the time the injury occurred.
Committee on Oversight and Government Reform
Retirement contributions
Civil Service Retirement System
Individual contributions
Section 8334(c) of title 5, United States Code, is amended—
by striking
(c) Each
and inserting (c)(1) Each
; and
by adding at the end the following:
Notwithstanding any other provision of this subsection, the applicable percentage of basic pay under this subsection shall—
except as provided in subparagraph (B) or (C), for purposes of computing an amount—
for a period in calendar year 2013, be equal to the applicable percentage under this subsection for calendar year 2012, plus an additional 1.5 percentage points;
for a period in calendar year 2014, be equal to the applicable percentage under this subsection for calendar year 2013 (as determined under clause (i)), plus an additional 0.5 percentage point;
for a period in calendar year 2015, 2016, or 2017, be equal to the applicable percentage under this subsection for the preceding calendar year (as determined under clause (ii) or this clause, as the case may be), plus an additional 1.0 percentage point; and
for a period in any calendar year after 2017, be equal to the applicable percentage under this subsection for calendar year 2017 (as determined under clause (iii));
for purposes of computing an amount with respect to a Member for Member service—
for a period in calendar year 2013, be equal to the applicable percentage under this subsection for calendar year 2012, plus an additional 2.5 percentage points;
for a period in calendar year 2014, 2015, 2016, or 2017, be equal to the applicable percentage under this subsection for the preceding calendar year (as determined under clause (i) or this clause, as the case may be), plus an additional 1.5 percentage points; and
for a period in any calendar year after 2017, be equal to the applicable percentage under this subsection for calendar year 2017 (as determined under clause (ii)); and
for purposes of computing an amount with respect to a Member or employee for Congressional employee service—
for a period in calendar year 2013, be equal to the applicable percentage under this subsection for calendar year 2012, plus an additional 2.5 percentage points;
for a period in calendar year 2014, 2015, 2016, or 2017, be equal to the applicable percentage under this subsection for the preceding calendar year (as determined under clause (i) or this clause, as the case may be), plus an additional 1.5 percentage points; and
for a period in any calendar year after 2017, be equal to the applicable percentage under this subsection for calendar year 2017 (as determined under clause (ii)).
Notwithstanding subsection (a)(2), any excess contributions under subsection (a)(1)(A) (including the portion of any deposit under this subsection allocable to excess contributions) shall, if made by an employee of the United States Postal Service or the Postal Regulatory Commission, be deposited to the credit of the Postal Service Fund under section 2003 of title 39, rather than the Civil Service Retirement and Disability Fund.
For purposes of this paragraph, the term
excess contributions
, as used with respect to contributions made
under subsection (a)(1)(A) by an employee of the United States Postal Service
or the Postal Regulatory Commission, means the amount by which—
deductions from basic pay of such employee which are made under subsection (a)(1)(A), exceed
deductions from basic pay of such employee which would have been so made if paragraph (2) had not been enacted.
.
Government contributions
Section 8334(a)(1)(B) of title 5, United States Code, is amended—
in clause (i), by
striking Except as provided in clause (ii),
and inserting
Except as provided in clause (ii) or (iii),
; and
by adding at the end the following:
The amount to be contributed under clause (i) shall, with respect to a period in any year beginning after December 31, 2012, be equal to—
the amount which would otherwise apply under clause (i) with respect to such period, reduced by
the amount by which, with respect to such period, the withholding under subparagraph (A) exceeds the amount which would otherwise have been withheld from the basic pay of the employee or elected official involved under subparagraph (A) based on the percentage applicable under subsection (c) for calendar year 2012.
.
Federal Employees’ Retirement System
Individual contributions
Section 8422(a)(3) of title 5, United States Code, is amended—
by redesignating subparagraph (B) as subparagraph (C);
by inserting after subparagraph (A) the following:
Notwithstanding any other provision of this paragraph, the applicable percentage under this paragraph for civilian service by employees or Members other than revised annuity employees shall—
except as provided in clause (ii) or (iii), for purposes of computing an amount—
for a period in calendar year 2013, be equal to the applicable percentage under this paragraph for calendar year 2012, plus an additional 1.5 percentage points;
for a period in calendar year 2014, be equal to the applicable percentage under this paragraph for calendar year 2013 (as determined under subclause (I)), plus an additional 0.5 percentage point;
for a period in calendar year 2015, 2016, or 2017, be equal to the applicable percentage under this paragraph for the preceding calendar year (as determined under subclause (II) or this subclause, as the case may be), plus an additional 1.0 percentage point; and
for a period in any calendar year after 2017, be equal to the applicable percentage under this paragraph for calendar year 2017 (as determined under subclause (III));
for purposes of computing an amount with respect to a Member—
for a period in calendar year 2013, be equal to the applicable percentage under this paragraph for calendar year 2012, plus an additional 2.5 percentage points;
for a period in calendar year 2014, 2015, 2016, or 2017, be equal to the applicable percentage under this paragraph for the preceding calendar year (as determined under subclause (I) or this subclause, as the case may be), plus an additional 1.5 percentage points; and
for a period in any calendar year after 2017, be equal to the applicable percentage under this paragraph for calendar year 2017 (as determined under subclause (II)); and
for purposes of computing an amount with respect to a Congressional employee—
for a period in calendar year 2013, 2014, 2015, 2016, or 2017, be equal to the applicable percentage under this paragraph for the preceding calendar year (including as increased under this subclause, if applicable), plus an additional 1.5 percentage points; and
for a period in any calendar year after 2017, be equal to the applicable percentage under this paragraph for calendar year 2017 (as determined under subclause (I)).
; and
in subparagraph (C) (as so redesignated by subparagraph (A))—
by
striking 9.3
each place it appears and inserting
12
; and
by
striking 9.8
each place it appears and inserting
12.5
.
Government contributions
Section 8423(a)(2) of title 5, United States Code, is amended—
by striking
(2)
and inserting (2)(A)
; and
by adding at the end the following:
Subject to clauses (ii) and (iii), for purposes of any period in any year beginning after December 31, 2012, the normal-cost percentage under this subsection shall be determined and applied as if section 501(b)(1) of the Spending Reduction Act of 2012 had not been enacted.
Any contributions under this subsection in excess of the amounts which (but for clause (i)) would otherwise have been payable shall be applied toward reducing the unfunded liability of the Civil Service Retirement System.
After the unfunded liability of the Civil Service Retirement System has been eliminated, as determined by the Office, Government contributions under this subsection shall be determined and made disregarding this subparagraph.
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.
.
Annuity supplement
Section 8421(a) of title 5, United States Code, is amended—
in paragraph (1),
by striking paragraph (3)
and inserting paragraphs (3)
and (4)
;
in paragraph (2), by striking
paragraph (3)
and inserting paragraphs (3) and
(4)
; and
by adding at the end the following:
Except as provided in subparagraph (B), no annuity supplement under this section shall be payable in the case of an individual who first becomes subject to this chapter after December 31, 2012.
Nothing in this paragraph applies in the case of an individual separating under subsection (d) or (e) of section 8412.
.
Contributions to Thrift Savings Fund of payments for accrued or accumulated leave
Amendments relating to CSRS
Section 8351(b) of title 5, United States Code, is amended—
by striking paragraph (2)(A) and inserting the following:
An employee or Member may contribute to the
Thrift Savings Fund in any pay period any amount of such employee’s or Member’s
basic pay for such pay period, and may contribute (by direct transfer to the
Fund) any part of any payment that the employee or Member receives for
accumulated and accrued annual or vacation leave under section 5551 or 5552.
Notwithstanding section 2105(e), in this paragraph the term
employee
includes an employee of the United States Postal
Service or of the Postal Regulatory
Commission.
;
by striking subparagraph (B) of paragraph (2); and
by redesignating subparagraph (C) of paragraph (2) as subparagraph (B).
Amendments relating to FERS
Section 8432(a) of title 5, United States Code, is amended—
by striking all that precedes paragraph (3) and inserting the following:
An employee or Member—
may contribute to the Thrift Savings Fund in any pay period, pursuant to an election under subsection (b), any amount of such employee’s or Member’s basic pay for such pay period; and
may contribute (by direct transfer to the Fund) any part of any payment that the employee or Member receives for accumulated and accrued annual or vacation leave under section 5551 or 5552.
Contributions made under paragraph (1)(A) pursuant to an election under subsection (b) shall, with respect to each pay period for which such election remains in effect, be made in accordance with a program of regular contributions provided in regulations prescribed by the Executive Director.
; and
by adding at the end the following:
Notwithstanding section 2105(e), in this
subsection the term employee
includes an employee of the United
States Postal Service or of the Postal Regulatory
Commission.
.
Regulations
The Executive Director of the Federal Retirement Thrift Investment Board shall promulgate regulations to carry out the amendments made by this section.
Effective date
The amendments made by subsections (a) and (b) shall take effect 1 year after the date of the enactment of this Act.
Committee on Ways and Means
Recapture of overpayments resulting from certain federally-subsidized health insurance
Recapture of overpayments resulting from certain federally-subsidized health insurance
In general
Paragraph (2) of section 36B(f) of the Internal Revenue Code of 1986 is amended by striking subparagraph (B).
Conforming amendment
So much of paragraph (2) of section 36B(f) of such
Code, as amended by subsection (a), as precedes advance payments
is amended to read as follows:
Excess advance payments
If the
.
Effective date
The amendments made by this section shall apply to taxable years ending after December 31, 2013.
Social security number required to claim the refundable portion of the child tax credit
Social security number required to claim the refundable portion of the child tax credit
In general
Subsection (d) of section 24 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Identification requirement with respect to taxpayer
In general
Paragraph (1) shall not apply to any taxpayer for any taxable year unless the taxpayer includes the taxpayer’s Social Security number on the return of tax for such taxable year.
Joint returns
In the case of a joint return, the requirement of subparagraph (A) shall be treated as met if the Social Security number of either spouse is included on such return.
Limitation
Subparagraph (A) shall not apply to the extent the tentative minimum tax (as defined in section 55(b)(1)(A)) exceeds the credit allowed under section 32.
.
Omission treated as mathematical or clerical error
Subparagraph (I) of section 6213(g)(2) of such Code is amended to read as follows:
an omission of a correct Social Security number required under section 24(d)(5) (relating to refundable portion of child tax credit), or a correct TIN under section 24(e) (relating to child tax credit), to be included on a return,
.
Conforming amendment
Subsection (e) of section 24 of such Code is amended by
inserting With Respect to
Qualifying Children
after Identification Requirement
in the heading
thereof.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Human Resources Provisions
Repeal of the program of block grants to States for social services
Repeals
Sections 2001 through 2007 of the Social Security Act (42 U.S.C. 1397–1397f) are repealed.
Conforming amendments
Section 404(d) of the Social Security Act (42 U.S.C. 604(d)) is amended—
in paragraph (1),
by striking any or all of the following provisions of law:
and
all that follows through The
and inserting
the
;
in paragraph (3)—
by
striking rules
and all that follows through
any amount paid
and inserting rules.—Any amount
paid
;
by
striking a provision of law specified in paragraph (1)
and
inserting the Child Care and Development Block Grant Act of
1990
; and
by striking subparagraph (B); and
by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).
Section 422(b) of the Social Security Act (42 U.S.C. 622(b)) is amended—
in paragraph (1)(A)—
by
striking administers or supervises
and inserting
administered or supervised
; and
by
striking subtitle 1 of title XX
and inserting subtitle A
of title XX (as in effect before the repeal of such subtitle)
;
and
in paragraph (2),
by striking under subtitle 1 of title XX,
.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)) is amended—
in paragraph (4),
by striking , under subtitle 1 of title XX of this Act,
;
and
in paragraph (8),
by striking XIX, or XX
and inserting or
XIX
.
Section 472(h)(1) of the Social Security Act (42 U.S.C. 672(h)(1)) is amended by striking the 2nd sentence.
Section 473(b) of the Social Security Act (42 U.S.C. 673(b)) is amended—
in paragraph (1),
by striking (3)
and inserting (2)
;
in paragraph (4),
by striking paragraphs (1) and (2)
and inserting
paragraph (1)
; and
by striking paragraph (2) and redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.
Section 504(b)(6)
of the Social Security Act (42 U.S.C. 704(b)(6)) is amended in
each of subparagraphs (A) and (B) by striking XIX, or XX
and
inserting or XIX
.
Section 1101(a)(1) of the Social Security Act (42 U.S.C. 1301(a)(1)) is amended by striking the penultimate sentence.
Section 1128(h) of the Social Security Act (42 U.S.C. 1320a–7(h)) is amended—
by adding
or
at the end of paragraph (2); and
by striking paragraph (3) and redesignating paragraph (4) as paragraph (3).
Section 1128A(i)(1) of the Social Security
Act (42 U.S.C. 1320a–7a(i)(1)) is amended by striking or subtitle 1 of
title XX
.
Section
1132(a)(1) of the Social Security Act (42 U.S.C. 1320b–2(a)(1)) is
amended by striking XIX, or XX
and inserting or
XIX
.
Section 1902(e)(13)(F)(iii) of the Social Security Act (42 U.S.C. 1396a(e)(13)(F)(iii)) is amended—
by striking
Exclusions
and inserting
Exclusion
; and
by striking
an agency that determines eligibility for a program established under
the Social Services Block Grant established under title XX or
.
The heading for
title XX of the Social Security Act is amended by striking
BLOCK GRANTS TO STATES
FOR SOCIAL SERVICES
and inserting
HEALTH PROFESSIONS
DEMONSTRATIONS AND ENVIRONMENTAL HEALTH CONDITION
DETECTION
.
The heading for
subtitle A of title XX of the Social Security Act is amended by striking
Block Grants to States for
Social Services
and inserting Health Professions Demonstrations and
Environmental Health Condition Detection
.
Section
16(k)(5)(B)(i) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(k)(5)(B)(i)) is amended by striking , or title
XX,
.
Section 402(b)(3) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(3)) is amended by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B).
Section 245A(h)(4)(I) of the Immigration
Reform and Control Act of 1986 (8 U.S.C. 1255a(h)(4)(I)) is amended
by striking , XVI, and XX
and inserting and
XVI
.
Section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) is amended—
in subsection (a)(2)—
in subparagraph (B)—
by striking
—
and all that follows through (i)
;
by striking
or
at the end of clause (i); and
by striking clause (ii); and
in
subparagraph (D)(ii), by striking or title XX
; and
in subsection (o)(2)(B)—
by
striking or title XX
each place it appears; and
by
striking or XX
.
Section 201(b) of
the Indian Child Welfare Act of 1978 (25 U.S.C. 1931(b)) is amended by
striking titles IV–B and XX
each place it appears and inserting
part B of title IV
.
Section 3803(c)(2)(C) of title 31, United States Code, is amended by striking clause (vi) and redesignating clauses (vii) through (xvi) as clauses (vi) through (xv), respectively.
Section 14502(d)(3) of title 40, United States Code, is amended—
by striking
and title XX
; and
by striking
, 1397 et seq.
.
Section
2006(a)(15) of the Public Health Service Act (42 U.S.C. 300z–5(a)(15)) is
amended by striking and title XX
.
Section 203(b)(3)
of the Older Americans Act of 1965 (42 U.S.C. 3013(b)(3)) is amended by
striking XIX, and XX
and inserting and
XIX
.
Section 213 of
the Older Americans Act of 1965 (42 U.S.C. 3020d) is amended by
striking or title XX
.
Section 306(d) of
the Older Americans Act of 1965 (42 U.S.C. 3026(d)) is amended in
each of paragraphs (1) and (2) by striking titles XIX and XX
and
inserting title XIX
.
Section 2605 of
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624) is
amended in each of subsections (b)(4) and (j) by striking under title XX
of the Social Security Act,
.
Section 602 of the Child Development Associate Scholarship Assistance Act of 1985 (42 U.S.C. 10901) is repealed.
Section 3(d)(1) of the Assisted Suicide Funding Restriction Act of 1997 (42 U.S.C. 14402(d)(1)) is amended by striking subparagraph (C) and redesignating subparagraphs (D) through (K) as subparagraphs (C) through (J), respectively.
Effective date
The repeals and amendments made by this section shall take effect on January 1, 2013.
Sequester replacement
Short title
This title may be cited
as the Sequester Replacement Act of
2012
.
Protecting veterans programs from sequester
Section 256(e)(2)(E) of the Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.
Achieving $19 billion in discretionary savings
Revised 2013 discretionary spending limit
Paragraph (2) of section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:
with respect to fiscal year 2013, for the discretionary category, $1,047,000,000,000 in new budget authority;
.
Discretionary savings
Section 251A(7)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:
Fiscal year 2013
Fiscal year 2013 adjustment
On January 2, 2013, the discretionary category set forth in section 251(c)(2) shall be decreased by $19,104,000,000 in budget authority.
Supplemental sequestration order
On January 15, 2013, OMB shall issue a supplemental sequestration report for fiscal year 2013 and take the form of a final sequestration report as set forth in section 254(f)(2) and using the procedures set forth in section 253(f), to eliminate any discretionary spending breach of the spending limit set forth in section 251(c)(2) as adjusted by clause (i), and the President shall order a sequestration, if any, as required by such report.
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Conforming amendments to section 314 of the Congressional Budget and Impoundment Control Act of 1974
Section 314(a) of the Congressional Budget Act of 1974 is amended to read as follows:
Adjustments
In general
The chair of the Committee on the Budget of the House of Representatives or the Senate may make adjustments as set forth in paragraph (2) for a bill or joint resolution, amendment thereto or conference report thereon, by the amount of new budget authority and outlays flowing therefrom in the same amount as required by section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985.
Matters to be adjusted
The chair of the Committee on the Budget of the House of Representatives or the Senate may make the adjustments referred to in paragraph (1) to—
the allocations made pursuant to the appropriate concurrent resolution on the budget pursuant to section 302(a);
the budgetary aggregates as set forth in the appropriate concurrent resolution on the budget; and
the discretionary spending limits, if any, set forth in the appropriate concurrent resolution on the budget.
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Treatment for PAYGO purposes
The budgetary effects of this Act and any amendment made by it shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.
Elimination of the fiscal year 2013 sequestration for defense direct spending
Any sequestration order issued by the President under the Balanced Budget and Emergency Deficit Control Act of 1985 to carry out reductions to direct spending for the defense function (050) for fiscal year 2013
pursuant to section 251A of such Act shall have no force or effect.
Passed the House of Representatives December 20, 2012.
Karen L. Haas,
Clerk