,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #cagc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #aj1 #bjag,mr4  
,m>*ant 7= himself1 ,mr4 ,k9d1 & ,mr4   
,meehan7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,en]gy &      
,comm]ce1 & 9 addition to ! ,committee  
on ,ways & ,means1 = a p]iod to be      
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d title      
,,xviii ( ! ,social ,security ,act to   
create alt]native sanctions = te*nical  
noncompliance ) ! ,/>k rule "u ,m$ic>e1 
& = o!r purposes4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,/>k ,adm9i/rative 
,simplification ,act ( #bjag4  #b4      
,alt]native sanctions = te*nical        
noncompliance ) ,/>k rule "u ,m$ic>e    
,section #ahgg7;g7 ( ! ,social ,security
 ,act 7#db ,u4,s4,c4 #acienn7g77 is     
am5d$--  7#a7 9 p>agraph 7#a71 by /rik+ 
,no & ins]t+ ,subject to p>agraph 7#g71 
no2  7#b7 9 p>agraph 7#b71 by /rik+ ,if 

& ins]t+ ,subject to p>agraph 7#g71 if2 
7#c7 9 p>agraph 7#c71 by /rik+ ,any &   
ins]t+ ,subject to p>agraph 7#g71 any2 &
  7#d7 by add+ at ! end ! foll[+ new    
p>agraph3  7#g7 ,alt]native sanctions = 
te*nical noncompliance  7,a7 ,s+le      
p5alty = comp5sation arrangem5ts 9      
te*nical noncompliance ,9 ! case ( a    
comp5sation arrangem5t betwe5 a         
physician 7or an imm$iate family memb] (
 su* physician7 & a p]son or entity t is
 9 violation ( subsection 7a77#a7 solely
 due to te*nical noncompliance1 in/ead (
 ! sanctions describ$ 9 p>agraphs 7#a71 
7#b71 & 7#c7 = any su* violation1 !     
p]son or entity ) respect to su*        
arrangem5t %all be subject to a s+le    
civil monet>y p5alty "u ?is p>agraph 9  
an am\nt t does n exce$--  7i7 9 ! case 
9 :i* ! disclosure ( ! violation is     
submitt$ to ! ,secret>y n lat] ?an !    
date t is "o ye> aft] ! initial date (  
noncompliance1 #e1jjj2 &  7ii7 9 ! case 
9 :i* ! disclosure ( ! violation is     
submitt$ to ! ,secret>y aft] ! date t is

 "o ye> aft] ! initial date (           
noncompliance1 #aj1jjj4  7,b7           
,acceptance ( volunt>y disclosures  7i7 
,9 g5]al ,beg9n+ z ( ! date ( ! enactm5t
 ( ?is p>agraph1 ! ,secret>y %all accept
 ! volunt>y disclosure ( a te*nically   
noncompliant comp5sation arrangem5t if  
su* volunt>y disclosure is made z       
describ$ 9 clause 7iii74 ,! ,secret>y   
may accept & reasonably rely on         
in=mation provid$ by a p]son or entity t
 is 9 violation ( subsection 7a77#a7    
only because ( a comp5sation arrangem5t 
t is te*nically noncompliant4  7ii7     
,acceptance ( disclosure ,! ,secret>y   
may reject any volunt>y disclosure      
submitt$ "u clause 7iii7 )9 #ij days    
aft] ! receipt ( ! disclosure only if ! 
,secret>y det]m9es t ! disclosure does n
 con=m to ! requirem5ts describ$ 9      
clause 7iii74 ,if ! ,secret>y fails to  
reject a volunt>y disclosure )9 su*     
#ij-;day p]iod1 ! volunt>y disclosure is
 deem$ to be accept$4  7iii7 ,volunt>y  
disclosure ,a volunt>y disclosure       

describ$ 9 ?is clause is a disclosure   
conc]n+ a comp5sation arrangem5t t is   
submitt$ to ! ,secret>y by a p>ty to su*
 arrangem5t t conta9s ! foll[+3  7,i7 ,!
 id5tification ( ! disclos+ p>ty & all  
o!r p>ties to ! disclos$ comp5sation    
arrangem5t4  7,,ii7 ,a description ( !  
comp5sation paid "u ! arrangem5t & !    
dates ( noncompliance4  7,,iii7 ,a      
c]tification by ! disclos+ p>ty t !     
comp5sation arrangem5t satisfies !      
requirem5ts describ$ 9 clause 7v74      
7,,iv7 ,paym5t = ! full am\nt ( ! civil 
monet>y p5alty "u clause 7i7 or 7ii71 z 
applicable1 ( subp>agraph 7,a74  7iv7   
,settlem5t ( liability & paym5t ( claims
 ,a volunt>y disclosure ( a te*nically  
noncompliant comp5sation arrangem5t t is
 made & accept$ "u ?is subp>agraph %all 
con/itute a full & complete settlem5t ( 
liability "u ?is subsection to ! ext5t  
su* liability is ) respect to su*       
te*nically noncompliant comp5sation     
arrangem5t4 ,any bill or claim = paym5t 
relat$ to a te*nically noncompliant     

comp5sation arrangem5t %all n be subject
 to ! sanctions "u ?is subsection & %all
 be payable aft] a volunt>y disclosure  
is made z describ$ 9 clause 7iii74  7v7 
,comp5sation arrangem5t requirem5ts ,=  
purposes ( clause 7iii77,,iii71 !       
requirem5ts describ$ 9 ?is clause1 )    
respect to a comp5sation arrangem5t1 are
 ! foll[+3  7,i7 ,! comp5sation         
arrangem5t is te*nically noncompliant 7z
 def9$ by subp>agraph 7,c774  7,,ii7 ,! 
comp5sation arrangem5t has be5 cur$ ( ! 
te*nical noncompliance1 or is o!rwise   
t]m9at$4  7,,iii7 ,9 ! case ( te*nical  
noncompliance describ$ 9 subp>agraph    
7,c77i71 ! comp5sation arrangem5t is    
consi/5t ) fair m>ket value1 & !        
remun]ation "u ! arrangem5t is n det]m9$
 9 a mann] t takes into acc\nt directly 
or indirectly ! volume or value ( any   
ref]rals4  7,c7 ,def9ition te*nical     
noncompliance ,= purposes ( ?is         
p>agraph1 ! t]m te*nical noncompliance  
means1 ) respect to a comp5sation       
arrangem5t1 su* an arrangem5t t is 9    

violation ( subsection 7a77#a7 only     
because--  7i7 ! arrangem5t is n set =? 
9 writ+2  7ii7 ! arrangem5t is n sign$  
by "o or m p>ties to ! arrangem5t2 or   
7iii7 ! arrangem5t became 9 violation ( 
su* subsection by reason ( its          
expiration4  7,d7 ,applicability to     
pre-enactm5t disclosures to relieve     
backlog ,9 addition to ! application (  
?is p>agraph to te*nically noncompliant 
comp5sation arrangem5ts disclos$ on or  
aft] ! date ( ! enactm5t ( ?is p>agraph1
 ! ,secret>y %all provide = !           
application ( ?is p>agraph to any       
te*nically noncompliant comp5sation     
arrangem5t t has be5 disclos$1 & to :i* 
!re has n be5 a f9al settlem5t1 z ( !   
date ( enactm5t ( ?is p>agraph4  7,e7   
,report ,n lat] ?an #bd mon?s aft] !    
date ( enactm5t ( ?is p>agraph1 !       
,adm9i/rator ( ! ,c5t]s = ,m$ic>e       
,m$icaid ,s]vices %all submit to        
,congress a report on ! implem5tation ( 
?is p>agraph4 ,su* report %all include--
  7i7 ! numb] ( p]sons or entities mak+ 

disclosures ( te*nical noncompliance "u 
?is p>agraph2  7ii7 ! am\nt & type (    
alt]native sanctions collect$ or impos$ 
= te*nical noncompliance2  7iii7 ! types
 ( violations disclos$2 &  7iv7 su* o!r 
in=mation z ! ,inspector ,g5]al det]m9es
 may be necess>y to evaluate ! impact ( 
?is p>agraph4  4  #c4 ,cl>ification ( ! 
writ+ requirem5t & signature requirem5t 
= arrangem5ts pursuant to ! ,/>k rule "u
 ,m$ic>e  7a7 ,writ+ requirem5t ,section
 #ahgg7;h77#a7 ( ! ,social ,security    
,act 7#db ,u4,s4,c4 #acienn7h77#a77 is  
am5d$ by add+ at ! end ! foll[+ new     
subp>agraph3  7,d7 ,writt5 requirem5t   
cl>ifi$ ,9 ! case ( any requirem5t      
pursuant to ?is section = a comp5sation 
arrangem5t to be 9 writ+1 su* requirem5t
 %all be satisfi$ by su* means z det]m9$
 by ! ,secret>y1 includ+ by a collection
 ( docum5ts1 includ+ contemporane\s     
docum5ts evid5c+ ! c\rse ( conduct      
betwe5 ! p>ties involv$4  4  7b7        
,signature requirem5t ,section #ahgg7;e7
 ( ! ,social ,security ,act 7#db        

,u4,s4,c4 #acienn7e77 is am5d$-- 7#a7 9 
p>agraph 7#a77;,a77i71 by ins]t+ be=e or
 n lat] ?an #ij days aft] ! effective   
date ( ! lease aft] sign$ by ! p>ties2  
7#b7 9 p>agraph 7#a77;,b77i71 by ins]t+ 
be=e or n lat] ?an #ij days aft] !      
effective date ( ! lease aft] sign$ by !
 p>ties2 &  7#c7 9 p>agraph             
7#c77;,a77i71 by ins]t+ be=e or n lat]  
?an #ij days aft] ! effective date ( !  
arrangem5t aft] sign$ by ! p>ties4  #d4 
,indef9ite holdov] = lease arrangem5ts &
 p]sonal s]vices arrangem5ts pursuant to
 ! ,/>k rule "u ,m$ic>e ,section #ahgg (
 ! ,social ,security ,act 7#db ,u4,s4,c4
 #acienn7 is am5d$-- 7#a7 9 subsection  
7e7--  7,a7 9 p>agraph 7#a71 by add+ at 
! end ! foll[+ new subp>agraph3  7,c7   
,holdov] lease arrangem5ts ,9 ! case ( a
 holdov] lease arrangem5t = ! lease (   
(fice space or equipm5t1 :i* imm$iately 
foll[s a lease arrangem5t describ$ 9    
subp>agraph 7,a7 = ! use ( su* (fice    
space or subp>agraph 7,b7 = ! use ( su* 
equipm5t & t expir$ aft] a t]m ( at lea/

 "o ye>1 paym5ts made by ! lessee to !  
lessor pursuant to su* holdov] lease    
arrangem5t1 if--  7i7 ! lease arrangem5t
 met ! conditions ( subp>agraph 7,a7 = !
 lease ( (fice space or subp>agraph 7,b7
 = ! use ( equipm5t :5 ! arrangem5t     
expir$2  7ii7 ! holdov] lease arrangem5t
 is on ! same t]ms & conditions z !     
imm$iately prec$+ arrangem5t2 &  7iii7 !
 holdov] arrangem5t cont9ues to satisfy 
! conditions ( subp>agraph 7,a7 = !     
lease ( (fice space or subp>agraph 7,b7 
= ! use ( equipm5t4  2 &  7,b7 9        
p>agraph 7#c71 by add+ at ! end ! foll[+
 new subp>agraph3  7,c7 ,holdov] p]sonal
 s]vice arrangem5t ,9 ! case ( a holdov]
 p]sonal s]vice arrangem5t1 :i*         
imm$iately foll[s an arrangem5t describ$
 9 subp>agraph 7,a7 t expir$ aft] a t]m 
( at lea/ "o ye>1 remun]ation f an      
entity pursuant to su* holdov] p]sonal  
s]vice arrangem5t1 if--  7i7 ! p]sonal  
s]vice arrangem5t hmet ! conditions (   
subp>agraph 7,a7 :5 ! arrangem5t expir$2
  7ii7 ! holdov] p]sonal s]vice         

arrangem5t is on ! same t]ms &          
conditions z ! imm$iately prec$+        
arrangem5t2 &  7iii7 ! holdov]          
arrangem5t cont9ues to satisfy !        
conditions ( subp>agraph 7,a74  2 &     
7#b7 9 subsection 7h77#a71 z am5d$ by   
section #c7;a7--  7,a7 9 ! head+1 by    
ins]t+ 2 holdov] arrangem5t aft]        
remun]ation2 &  7,b7 by add+ at ! end ! 
foll[+ new subp>agraph3  7,e7 ,holdov]  
arrangem5t ,! t]m holdov] arrangem5t    
means an arrangem5t1 ) respect to an    
agreem5t 7includ+ a lease or o!r        
arrangem5t7 t has expir$ b z ( ! date ( 
su* expiration _h be5 9 compliance ) !  
applicable requirem5ts ( ?is section1 "u
 :i* ! p>ties to su* expir$ agreem5t h1 
s9ce su* date ( expiration1 cont9u$ to  
p]=m "u ! t]ms & conditions ( su* expir$
 agreem5t4  4