[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2429 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 2429
To support businesses in Puerto Rico, improve health funding for Puerto
Rico, and promote security in Puerto Rico, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 16, 2017
Mr. MacArthur (for himself, Miss Gonzalez-Colon of Puerto Rico, Mr.
Duffy, and Ms. Velazquez) introduced the following bill; which was
referred to the Committee on Small Business, and in addition to the
Committees on Financial Services, Ways and Means, Energy and Commerce,
the Judiciary, Oversight and Government Reform, Education and the
Workforce, and Appropriations, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To support businesses in Puerto Rico, improve health funding for Puerto
Rico, and promote security in Puerto Rico, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Puerto Rico Task
Force Economic Empowerment Act of 2017''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--EMPLOYMENT
Subtitle A--Flexibility for Puerto Rico in Small Business
Administration Programs
Sec. 1101. Short title.
Sec. 1102. Definitions.
Part I--Lending
Sec. 1111. Microloan program for Puerto Rico small business concerns.
Sec. 1112. Fee reductions.
Sec. 1113. Economic stimulus lending program for small businesses.
Sec. 1114. Contribution percentages for 504 projects.
Sec. 1115. Independent subsidy calculation.
Part II--Procurement
Sec. 1121. Contracting preference for Puerto Rico businesses.
Sec. 1122. Priority for surplus property transfers.
Sec. 1123. Subcontracting incentives for protege firms that are Puerto
Rico businesses.
Sec. 1124. Additional mentor-protege relationships for protege firms
that are Puerto Rico businesses.
Part III--Entrepreneurial Development
Sec. 1131. Veteran Business Outreach Center in Puerto Rico.
Sec. 1132. FAST grant program for Puerto Rico.
Part IV--Small Business Administration Oversight
Sec. 1141. Requirement for the District Director of Puerto Rico.
Part V--Disaster Loan Program Expansion
Sec. 1151. Amendment to definition of disaster for 7(b) loans.
Part VI--Amendment to the Investment Company Act of 1940
Sec. 1161. Termination of exemption for companies in territories of the
United States.
Subtitle B--Unemployment Pilot Programs
Sec. 1201. Reemployment through demonstration projects.
Sec. 1202. Evaluation of demonstration projects.
Subtitle C--Federal Statistics
Sec. 1301. Authority to transfer Department of Labor appropriations, to
include Puerto Rico in reports of the
Bureau of Labor Statistics.
Sec. 1302. Annual report by principal Federal statistical agencies on
Puerto Rico.
TITLE II--HEALTH
Subtitle A--Improved Prescription Drug Funding
Sec. 2101. Increasing levels of pharmacy assistance.
Sec. 2102. Treatment of prescription drug assistance to all part D
eligibles as medical assistance; no
territory match required.
Subtitle B--Additional Provisions
Sec. 2201. Calculation of Medicare DSH payments for IPPS hospitals in
Puerto Rico.
Sec. 2202. Administrative flexibility with respect to the territories.
Sec. 2203. Sense of Congress regarding Federal health programs in
territories of the United States.
TITLE III--SECURITY
Sec. 3101. Caribbean border counternarcotics strategy.
TITLE I--EMPLOYMENT
Subtitle A--Flexibility for Puerto Rico in Small Business
Administration Programs
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Puerto Rico Opportunity, Small
Business Prosperity, and Economic Revitalization Act of 2017''.
SEC. 1102. DEFINITIONS.
(a) In General.--In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Oversight board termination date.--The term ``Oversight
Board termination date'' means the date on which the Oversight
Board established under section 101 of the Puerto Rico
Oversight, Management, and Economic Stability Act (48 U.S.C.
2121) terminates.
(3) Puerto rico.--The term ``Puerto Rico'' means the
Commonwealth of Puerto Rico.
(4) Puerto rico business.--The term ``Puerto Rico
business'' means a small business concern that has its
principal office located in the Commonwealth of Puerto Rico.
(5) Small business concern.--The term ``small business
concern'' has the meaning given such term under section 3 of
the Small Business Act (15 U.S.C. 632).
(b) Small Business Act.--Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:
``(ee) Puerto Rico Business.--In this Act, the term `Puerto Rico
business' means a small business concern that has its principal office
located in the Commonwealth of Puerto Rico.''.
PART I--LENDING
SEC. 1111. MICROLOAN PROGRAM FOR PUERTO RICO SMALL BUSINESS CONCERNS.
(a) Increase in Access to Capital for Certain Intermediaries.--
Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C))
is amended--
(1) by inserting ``and except as provided in clause (ii)''
after ``subsection (a)(3)'';
(2) by striking ``Notwithstanding'' and inserting the
following:
``(i) In general.--Notwithstanding''; and
(3) by adding at the end the following:
``(ii) Exception for certain puerto rico
businesses.--
``(I) In general.--No loan shall be
made under this subsection if the total
amount outstanding and committed to 1
covered intermediary (excluding
outstanding grants) from the business
loan and investment fund established by
this Act would, as a result of such
loan, exceed $6,000,000 in the
remaining years of the covered
intermediary's participation in the
program.
``(II) Definition.--In this clause,
the term `covered intermediary' means
an intermediary that--
``(aa) is participating in
the program; and
``(bb) submits to the
Administrator a certification
that not less than 20 percent
of the microloans made by the
intermediary under this
subsection, during such period
as the Administrator may
specify, will be made to Puerto
Rico businesses.''.
(b) Waiver of 25/75 Rule for Microloans to Puerto Rico Small
Business Concerns.--
(1) Waiver authorized.--Section 7(m)(4)(E) of the Small
Business Act (15 U.S.C. 636(m)(4)(E)) is amended--
(A) in clause (i), by striking ``Each'' and
inserting ``Except as provided in clause (iii), each'';
and
(B) by adding at the end the following:
``(iii) Exception for certain
intermediaries.--The Administrator shall waive
the requirements of clause (i) for an
intermediary for which not less than 25 percent
of the loans made by the intermediary are made
to Puerto Rico businesses.''.
(2) Study.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall submit to
Congress a report on the impact of waiving the requirements of
section 7(m)(4)(E)(i) of the Small Business Act for all
intermediaries receiving grant funds under section
7(m)(1)(B)(ii) of the Small Business Act, which shall include
an analysis of the effectiveness and feasibility of expanding
the waiver to small business concerns nationwide.
(c) Prospective Repeal.--Effective on the Oversight Board
termination date--
(1) section 7(m)(3)(C) of the Small Business Act (15 U.S.C.
636(m)(3)(C)), as amended by subsection (a), is amended--
(A) by striking ``limits.--'' and all that follows
through ``as provided in clause (ii)'' and inserting
``limits.--Notwithstanding subsection (a)(3)''; and
(B) by striking clause (ii); and
(2) section 7(m)(4)(E) of the Small Business Act (15 U.S.C.
636(m)(4)(E)), as amended by subsection (a), is amended--
(A) in clause (i), by striking ``Except as provided
in clause (iii), each'' and inserting ``Each''; and
(B) by striking clause (iii).
(d) GAO Study.--Not later than 180 days after the date of enactment
of this Act, the Comptroller General of the United States shall
complete a study and submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives a report on the following:
(1) The operations (including services provided, structure,
size, and area of operation) of a representative sample of--
(A) intermediaries that are eligible for
participation in the microloan program under section
7(m) of the Small Business Act (15 U.S.C. 636(m)) and
that participate in the microloan program; and
(B) intermediaries (including those operated for
profit, operated as nonprofit organizations, and
affiliated with a United States institution of higher
learning (as defined in section 3452 of title 38,
United States Code)) that are so eligible and that do
not participate in the microloan program.
(2) The reasons why intermediaries described in paragraph
(1)(B) choose not to participate in the microloan program.
(3) Recommendations on how to encourage increased
participation in the microloan program by intermediaries
described in paragraph (1)(B).
(4) Recommendations for increasing the number of
intermediaries located in the territories of the United States
or in economically distressed areas (as defined in section
7(m)(11)(D) of the Small Business Act (15 U.S.C.
636(m)(11)(D))) that are eligible for participation in the
microloan program under section 7(m) of such Act.
(5) Recommendations on how to decrease the costs associated
with participation in the microloan program for eligible
intermediaries.
SEC. 1112. FEE REDUCTIONS.
(a) Administrative Provisions for the Small Business
Administration.--
(1) Definition.--In this subsection, the term ``covered
business loan'' means a loan--
(A) of not more than $2,000,000;
(B) that is guaranteed by the Administrator under
section 7(a) of the Small Business Act (15 U.S.C.
636(a));
(C) for which the application is approved on or
after the date of enactment of this Act; and
(D) that is made to a Puerto Rico business.
(2) Fees.--During the period beginning on the date of
enactment of this Act and ending on the Oversight Board
termination date, and to the extent that the cost of such
elimination or reduction of fees is offset by appropriations,
with respect to each covered business loan, the Administrator
shall--
(A) in lieu of the fee otherwise applicable under
section 7(a)(23)(A) of the Small Business Act, collect
no fee or reduce fees to the maximum extent possible;
and
(B) in lieu of the fee otherwise applicable under
section 7(a)(18)(A) of the Small Business Act, collect
no fee or reduce fees to the maximum extent possible.
(b) Temporary Fee Elimination for the 504 Loan Program.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on the Oversight Board
termination date, and to the extent the cost of such
elimination in fees is offset by appropriations, with respect
to each loan of not more than $2,000,000 guaranteed by the
Administrator under title V of the Small Business Investment
Act of 1958 (15 U.S.C. 695 et seq.) with respect to a
development company that has its principal office located in
Puerto Rico and for which an application is approved or pending
approval on or after the date of enactment of this Act--
(A) the Administrator shall, in lieu of the fee
otherwise applicable under section 503(d)(2) of the
Small Business Investment Act of 1958 (15 U.S.C.
697(d)(2)), collect no fee; and
(B) a development company shall, in lieu of the
processing fee under section 120.971(a)(1) of title 13,
Code of Federal Regulations (relating to fees paid by
borrowers), or any successor thereto, collect no fee.
(2) Reimbursement for waived fees.--
(A) In general.--To the extent that the cost of
such payments is offset by appropriations, the
Administrator shall reimburse each development company
that does not collect a processing fee under paragraph
(1)(B).
(B) Amount.--The reimbursement to a development
company under subparagraph (A) shall be in an amount
equal to 1.5 percent of the net debenture proceeds for
which the development company does not collect a
processing fee under paragraph (1)(B).
(c) Application of Fee Eliminations.--To the extent that amounts
are made available to the Administrator for the purpose of fee
eliminations or reductions under subsection (a), the Administrator
shall--
(1) first use any amounts provided to eliminate or reduce
fees paid by borrowers under clauses (i), (ii), and (iii) of
section 7(a)(18)(A) of the Small Business Act (15 U.S.C.
636(a)(18)(A)), to the maximum extent possible;
(2) to the extent amounts provided remain after use in
accordance with paragraph (1), use any amounts provided to
eliminate or reduce fees under section 7(a)(23)(A) of the Small
Business Act (15 U.S.C. 636(a)(23)(A)) paid by lenders with
assets of not more than $1,000,000,000, as of the date of
enactment of this Act; and
(3) to the extent amounts provided remain after use in
accordance with paragraphs (1) and (2), use any remaining
amounts provided to reduce fees under section 7(a)(23)(A) of
the Small Business Act paid by lenders other than those
described under paragraph (2).
SEC. 1113. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES.
(a) Authority.--Notwithstanding section 7(a) of the Small Business
Act (15 U.S.C. 636(a)), for a qualifying small business loan the
Administrator may guarantee not more than 90 percent of the balance of
the financing outstanding at the time of disbursement of the loan, if
such balance is less than or equal to $2,000,000.
(b) Qualifying Small Business Loan Defined.--For purposes of this
section, the term ``qualifying small business loan'' means any loan to
a Puerto Rico business made pursuant to section 7(a) of the Small
Business Act (15 U.S.C. 636(a)), except for such loans made under
section 7(a)(31) of such Act (15 U.S.C. 636(a)(31)).
(c) Qualified Borrowers.--
(1) Aliens unlawfully present in the united states.--The
Administrator may not guarantee a loan made under this section
to a small business concern if an individual who is an alien
unlawfully present in the United States--
(A) has an ownership interest in that concern; or
(B) has an ownership interest in another concern
that itself has an ownership interest in that concern.
(2) Firms in violation of immigration laws.--The
Administrator may not guarantee a loan made under this section
to any entity, based on a determination by the Secretary of
Homeland Security or the Attorney General, found to have
engaged in a pattern or practice of hiring, recruiting, or
referring for a fee for employment in the United States an
alien, if such entity knows that the person is an unauthorized
alien.
(d) Criminal Background Checks.--Prior to guaranteeing a loan made
under this section, the Administrator may verify the applicant's
criminal background, or lack thereof, through the best available means,
including, if possible, use of the National Crime Information Center
computer system at the Federal Bureau of Investigation.
(e) Application of Other Law.--Nothing in this section shall be
construed to exempt any activity of the Administrator under this
section from the Federal Credit Reform Act of 1990.
(f) Small Business Act Provisions.--The provisions of the Small
Business Act applicable to loan guarantees under section 7 of that Act
and regulations promulgated thereunder as of the date of enactment of
this Act shall apply to loan guarantees under this section except as
otherwise provided in this section.
(g) Sunset.--The Administrator may not guarantee a loan made under
this section after the Oversight Board termination date.
SEC. 1114. CONTRIBUTION PERCENTAGES FOR 504 PROJECTS.
Notwithstanding section 502(3) of the Small Business Investment Act
of 1958 (15 U.S.C. 696(3)), during the period beginning on the date of
enactment of this Act and ending on the Oversight Board termination
date, the Administrator may guarantee a debenture issued by a
development company that has its principal office located in Puerto
Rico if, of the total cost of the project financed--
(1) 50 percent is derived from a loan from a private sector
lender;
(2) 45 percent is derived from a loan made from the
proceeds of such debenture issued by the development company;
and
(3) 5 percent is provided by the borrower of such loans.
SEC. 1115. INDEPENDENT SUBSIDY CALCULATION.
In making calculations under section 7(a)(26) of the Small Business
Act (15 U.S.C. 636(a)(26)) or section 503(g) of the Small Business
Investment Act of 1958 (15 U.S.C. 697(g)), the Director of the Office
of Management and Budget shall make such calculations separately for
loans purchased or guaranteed under the authority under section 1112,
1113, or 1114 of this Act.
PART II--PROCUREMENT
SEC. 1121. CONTRACTING PREFERENCE FOR PUERTO RICO BUSINESSES.
Section 15 of the Small Business Act (15 U.S.C. 644) is amended by
adding at the end the following:
``(u) Contracting Preference for Puerto Rico Businesses.--
``(1) Contracting preference.--An agency shall provide a
contracting preference for a Puerto Rico business during the
period beginning on the date of enactment of this subsection
and ending on the date on which the Oversight Board established
under section 101 of the Puerto Rico Oversight, Management, and
Economic Stability Act (48 U.S.C. 2121) terminates. The
preference under this subsection shall take priority over any
preference for purchasing from the procurement list established
pursuant to section 8503 of title 41, United States Code, or
the Federal Prison Industries catalog described under section
4124(d) of title 18, United States Code.
``(2) Credit for meeting contracting goals.--If an agency
awards a contract to a Puerto Rico business as described in
paragraph (1), the value of the contract shall be doubled for
purposes of determining compliance with the goals for
procurement contracts under subsection (g)(1)(A).''.
SEC. 1122. PRIORITY FOR SURPLUS PROPERTY TRANSFERS.
Section 7(j)(13)(F) of the Small Business Act (15 U.S.C.
636(j)(13)(F)) is amended by adding at the end the following:
``(iii)(I) In this clause, the term `covered period' means
the period beginning on the date of enactment of this clause
and ending on the date on which the Oversight Board established
under section 101 of the Puerto Rico Oversight, Management, and
Economic Stability Act (48 U.S.C. 2121) terminates.
``(II) The Administrator may transfer technology or surplus
property under clause (i) on a priority basis to a Puerto Rico
business if the Puerto Rico business meets the requirements for
such a transfer, without regard to whether the Puerto Rico
business is a Program Participant.''.
SEC. 1123. SUBCONTRACTING INCENTIVES FOR PROTEGE FIRMS THAT ARE PUERTO
RICO BUSINESSES.
Section 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is
amended by adding at the end the following:
``(3) Puerto rico small business concerns.--
``(A) In general.--During the period beginning on
the date of enactment of this paragraph and ending on
the date on which the Oversight Board established under
section 101 of the Puerto Rico Oversight, Management,
and Economic Stability Act (48 U.S.C. 2121) terminates,
the Administrator shall provide additional incentives
to covered mentors, including providing additional
credit for subcontracts awarded to covered proteges and
costs incurred for providing training to covered
proteges.
``(B) Definitions.--In this paragraph--
``(i) the term `covered mentor' means a
mentor that enters into an agreement under this
Act, or under any mentor-protege program
approved under subsection (b)(1), with a
covered protege; and
``(ii) the term `covered protege' means a
protege--
``(I) of a covered mentor; and
``(II) that has its principal
office located in the Commonwealth of
Puerto Rico.''.
SEC. 1124. ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS FOR PROTEGE FIRMS
THAT ARE PUERTO RICO BUSINESSES.
Section 45(b)(3)(A) of the Small Business Act (15 U.S.C.
657r(b)(3)(A)) is amended by inserting ``, except that such
restrictions shall not apply to a relationship that was entered into
before the date on which the Oversight Board established under section
101 of the Puerto Rico Oversight, Management, and Economic Stability
Act (48 U.S.C. 2121) terminates and in which the principal office of
the protege is located in the Commonwealth of Puerto Rico'' after
``each participant''.
PART III--ENTREPRENEURIAL DEVELOPMENT
SEC. 1131. VETERAN BUSINESS OUTREACH CENTER IN PUERTO RICO.
(a) In General.--Section 32 of the Small Business Act (15 U.S.C.
657b) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
``(f) Veteran Business Outreach Center in Puerto Rico.--The
Administrator shall partner with an organization to establish a Veteran
Business Outreach Center in the Commonwealth of Puerto Rico to provide
entrepreneurial development services to small business concerns owned
and controlled by service-disabled veterans and small business concerns
owned and controlled by veterans located in the Commonwealth of Puerto
Rico. If the Administrator cannot partner with an organization, the
Administrator shall use amounts appropriated to carry out this
subsection to provide such services to veterans who own or are
considering starting a Puerto Rico business.''.
(b) Prospective Repeal.--Effective on the Oversight Board
termination date, section 32 of the Small Business Act (15 U.S.C.
657b), as amended by subsection (a), is amended--
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
SEC. 1132. FAST GRANT PROGRAM FOR PUERTO RICO.
(a) In General.--Section 34 of the Small Business Act (15 U.S.C.
657d) is amended by adding at the end the following:
``(j) FAST Grant Program for Puerto Rico.--
``(1) Establishment.--The Administrator shall establish a
program that shall be part of the FAST program to make awards
to, or enter into cooperative agreements with, a Puerto Rico
business.
``(2) Technical assistance.--If no applicant is selected to
receive assistance under this subsection, the Administrator
shall use amounts appropriated to carry out this subsection to
provide business advice and counseling to a Puerto Rico
business.
``(3) Waiver of matching requirements.--The Administrator
may, upon application, waive the matching requirements under
subsection (e)(2) for an applicant that receives an award or
has in effect a cooperative agreement under this subsection.
``(4) Funding.--There is authorized to be appropriated
$100,000 for fiscal year 2018, and each fiscal year thereafter,
to carry out this subsection.''.
(b) Prospective Repeal.--Effective on the Oversight Board
termination date, section 34 of the Small Business Act (15 U.S.C.
657d), as amended by subsection (a), is amended by striking subsection
(j).
PART IV--SMALL BUSINESS ADMINISTRATION OVERSIGHT
SEC. 1141. REQUIREMENT FOR THE DISTRICT DIRECTOR OF PUERTO RICO.
(a) In General.--During the period beginning on the date of
enactment of this Act and ending on the Oversight Board termination
date, the director of the district office of the Small Business
Administration located in Puerto Rico shall submit directly to Congress
and the Administrator an annual report on the activities of the Small
Business Administration in Puerto Rico.
(b) Coordination.--In preparing each report described in subsection
(a), the director described in such subsection shall consult with other
Federal agencies to collect data on grants, programs, and outreach
activities carried out by such agencies that affect any Puerto Rico
business.
PART V--DISASTER LOAN PROGRAM EXPANSION
SEC. 1151. AMENDMENT TO DEFINITION OF DISASTER FOR 7(B) LOANS.
(a) In General.--Section 3(k)(2) of the Small Business Act (15
U.S.C. 632(k)(2)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(D) communicable diseases for which the Federal
Government issues a travel alert or travel warning.''.
(b) Applicability.--The amendment made by subsection (a) shall
apply to a communicable disease--
(1) for which the Federal Government issues a travel alert
or travel warning before, on, or after the date of enactment of
this Act; and
(2) the effects of which are experienced on or after the
date of enactment of this Act.
PART VI--AMENDMENT TO THE INVESTMENT COMPANY ACT OF 1940
SEC. 1161. TERMINATION OF EXEMPTION FOR COMPANIES IN TERRITORIES OF THE
UNITED STATES.
(a) In General.--Section 6(a) of the Investment Company Act of 1940
(15 U.S.C. 80a-6(a)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively.
(b) Effective Date and Safe Harbor.--
(1) Effective date.--Except as provided in paragraph (2),
the amendment made by subsection (a) shall take effect on the
date of enactment of this Act.
(2) Safe harbor.--With respect to a company that is exempt
under section 6(a)(1) of the Investment Company Act of 1940 (15
U.S.C. 80a-6(a)(1)), as in effect on the day before the date of
enactment of this Act, the amendment made by subsection (a)
shall take effect on the date that is 3 years after the date of
enactment of this Act.
(3) Extension of safe harbor.--The Securities and Exchange
Commission, by rule and regulation upon its own motion, or by
order upon application, may conditionally or unconditionally,
under section 6(c) of the Investment Company Act of 1940 (15
U.S.C. 80a-6(c)), may further delay the effective date for a
company described in paragraph (2) to be not later than the
date that is 6 years after the date of enactment of this Act
if, before the end of the initial 3-year period, the Commission
determines that such a rule, regulation, motion, or order is
necessary or appropriate in the public interest and for the
protection of investors.
Subtitle B--Unemployment Pilot Programs
SEC. 1201. REEMPLOYMENT THROUGH DEMONSTRATION PROJECTS.
(a) Modification of Numerical Limitation.--Subsection (a) of
section 305 of the Social Security Act (42 U.S.C. 505) is amended by
inserting ``per year'' after ``10 States''.
(b) Clarification of Application Requirements.--Subsection (b) of
such section 305 is amended--
(1) by inserting ``or his or her designee'' after ``The
Governor of any State''; and
(2) by striking paragraph (2) and inserting the following:
``(2) for any waiver requested under subsection (c), a
statement describing--
``(A) the specific provision or provisions of law
for which such waiver is requested; and
``(B) the specific aspects of the project to which
such waiver would apply and the reasons why it is
needed;''.
(c) Extension of Eligible Time Period.--Subsection (d) of such
section 305 is amended--
(1) in paragraph (2), by striking ``may not be approved''
and inserting ``may not be conducted''; and
(2) in paragraph (3), by inserting ``, or in the case of
Puerto Rico, December 31, 2020'' after ``December 31, 2015''.
(d) Clarification of Demonstration Activities.--Subsection (e) of
such section 305 is amended--
(1) in paragraph (1), by striking ``for employer-provided
training, such as'' and inserting ``to employers or claimants
for employer-provided training or''; and
(2) in paragraph (2), by striking ``receiving unemployment
compensation'' and all that follows through ``prior benefit
level'' and inserting ``receiving unemployment compensation,
including disbursements used to retain individual employees,
not to exceed the weekly benefit amount for each such
individual''.
(e) Termination of Demonstration Projects.--Subsection (g) of such
section 305 is amended to read as follows:
``(g) The Secretary of Labor may terminate a demonstration project
under this section if the Secretary--
``(1) determines that the State has violated the
substantive terms or conditions of the project;
``(2) notifies the State in writing with sufficient detail
describing the violation; and
``(3) determines that the State has not taken action to
correct the violation within 90 days after the notification.''.
(f) Effective Date; Transition Rule.--
(1) Effective date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
(2) Transition rule.--
(A) In general.--Nothing in this Act shall be
considered to terminate or otherwise affect any
demonstration project approved under section 305 of the
Social Security Act before the date of the enactment of
this Act.
(B) Original conditions continue to apply.--A
demonstration project described in subparagraph (A)
shall be conducted in the same manner as if subsections
(a) through (f) had not been enacted.
SEC. 1202. EVALUATION OF DEMONSTRATION PROJECTS.
(a) In General.--Section 305 of the Social Security Act (42 U.S.C.
505) is amended by adding at the end the following:
``(i) The Secretary of Labor shall conduct an impact evaluation of
each demonstration project conducted under this section, using existing
data sources to the extent possible and methodology appropriate to
determine the effects of the demonstration project, including on
individual skill levels, earnings, and employment retention.''.
(b) Cooperation by State.--Section 305(b) of the Social Security
Act (42 U.S.C. 505(b)), as amended by section 1201(b) of this Act, is
further amended by striking paragraphs (5) and (6) and inserting the
following:
``(5) a description of the manner in which the State will
determine the extent to which the goals and outcomes described
in paragraph (3) were achieved;
``(6) assurances that the State will cooperate, in a timely
manner, with the Secretary of Labor with respect to the impact
evaluation conducted under subsection (i); and''.
(c) Reporting.--Not later than 90 days after the end of fiscal year
2019 and each fiscal year thereafter, until the completion of the last
evaluation under section 305(i) of the Social Security Act, the
Secretary 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 a description of--
(1) the status of each demonstration project being carried
out under this section;
(2) the results of the evaluation completed during the
previous fiscal year; and
(3) the Secretary's plan for--
(A) disseminating the findings of the report to
appropriate State agencies; and
(B) incorporating the components of successful
demonstration projects that reduced benefit duration
and increased employment into Federal unemployment law.
(d) Public Dissemination.--In addition to the reporting
requirements under subparagraph (c), evaluation results shall be shared
broadly to inform policymakers, service providers, other partners, and
the public in order to promote wide use of successful strategies,
including by posting evaluation results on the Internet website of the
Department of Labor.
Subtitle C--Federal Statistics
SEC. 1301. AUTHORITY TO TRANSFER DEPARTMENT OF LABOR APPROPRIATIONS, TO
INCLUDE PUERTO RICO IN REPORTS OF THE BUREAU OF LABOR
STATISTICS.
(a) In General.--For fiscal year 2018, in addition to any other
authority to transfer an amount appropriated to an account of the
Department of Labor, the Secretary of Labor may transfer not more than
$1,800,000 to any account of the Bureau of Labor Statistics from an
amount appropriated to any other account of the Department of Labor.
(b) Use of Funds.--Any amount transferred under subsection (a)
shall be used solely to study--
(1) the feasibility of expanding the Current Population
Survey to produce estimates for Puerto Rico, which would
provide data on the labor force, employment, and unemployment
from a monthly household survey; and
(2) the feasibility of expanding the Consumer Price Index
program to include data from Puerto Rico.
SEC. 1302. ANNUAL REPORT BY PRINCIPAL FEDERAL STATISTICAL AGENCIES ON
PUERTO RICO.
Each principal Federal statistical agency, as defined in the most
recent report by the Office of Management and Budget entitled
``Statistical Programs of the United States Government'', shall provide
a written report on its current and planned activities to include
Puerto Rico in its Federal statistical programs, including progress
toward efficiently including Puerto Rico in Federal statistical reports
to date, to the Committees on Appropriations of the House of
Representatives and the Senate and the House Committee on Natural
Resources and the Senate Committee on Energy and Natural Resources, not
later than 1 year after the date of the enactment of this Act and
annually thereafter.
TITLE II--HEALTH
Subtitle A--Improved Prescription Drug Funding
SEC. 2101. INCREASING LEVELS OF PHARMACY ASSISTANCE.
Section 1935(e)(3)(B) of the Social Security Act (42 U.S.C. 1396u-
5(e)(3)(B)) is amended--
(1) in clause (ii), by striking ``or'';
(2) in clause (iii)--
(A) by striking ``a subsequent year'' and inserting
``each of fiscal years 2008 through 2016''; and
(B) by striking the period at the end and inserting
a semicolon; and
(3) by adding at the end the following clauses:
``(iv) fiscal year 2018, is equal to
$100,000,000; or
``(v) each fiscal year after 2018, is equal
to the aggregate amount specified in this
subparagraph for the previous year increased by
the annual percentage increase specified in
section 1860D-2(b)(6) for the year involved.''.
SEC. 2102. TREATMENT OF PRESCRIPTION DRUG ASSISTANCE TO ALL PART D
ELIGIBLES AS MEDICAL ASSISTANCE; NO TERRITORY MATCH
REQUIRED.
(a) In General.--Section 1935(e) of the Social Security Act (42
U.S.C. 1396u-5(e)) is amended--
(1) by redesignating paragraph (4) as paragraph (6); and
(2) by inserting after paragraph (3) the following new
paragraphs:
``(4) Treatment of prescription drug assistance furnished
to part d eligibles.--Notwithstanding any other provision of
this title, financial assistance for prescription drug expenses
furnished under a plan established under this subsection to a
part D eligible individual who would qualify as a subsidy
eligible individual under section 1860D-14(a)(3) if the
individual resided in one of the 50 States or the District of
Columbia shall be treated as medical assistance provided by the
State plan for purposes of section 1903, without regard to
whether such individual otherwise qualifies for medical
assistance under this title.
``(5) No territory match required.--Notwithstanding section
1905(b), with respect to medical assistance furnished to an
individual by a State under a plan established under this
subsection, the Federal medical assistance percentage shall be
equal to 100 percent.''.
(b) Conforming Amendment.--Section 1905(b) of the Social Security
Act (42 U.S.C. 1396d(b)) is amended in the first sentence by striking
``and section 1933(d)'' and inserting ``, section 1933(d), and section
1935(e)(5)''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2018.
Subtitle B--Additional Provisions
SEC. 2201. CALCULATION OF MEDICARE DSH PAYMENTS FOR IPPS HOSPITALS IN
PUERTO RICO.
Section 1886(d)(9)(D)(iii) of the Social Security Act (42 U.S.C.
1395ww(d)(9)(D)(iii)) is amended to read as follows:
``(iii) Subparagraph (F) (relating to disproportionate
share payments), including application of subsection (r),
except that for this purpose--
``(I) the sum described in clause (ii) of this
subparagraph shall be substituted for the sum referred
to in paragraph (5)(F)(ii)(I); and
``(II) for discharges occurring on or after October
1, 2018, subclause (I) of paragraph (5)(F)(vi) shall be
applied by substituting for the numerator described in
such subclause a factor determined appropriate by the
Secretary.''.
SEC. 2202. ADMINISTRATIVE FLEXIBILITY WITH RESPECT TO THE TERRITORIES.
(a) In General.--Section 1108 of the Social Security Act (42 U.S.C.
1308) is amended by adding at the end the following:
``(h) Administrative Flexibility With Respect to the Territories.--
Notwithstanding any other provision of this Act, with respect to the
applicability to Puerto Rico, the United States Virgin Islands, Guam,
the Northern Mariana Islands, and American Samoa of payment formulas
under titles XVIII and XIX, the Secretary shall do the following:
``(1) Determine the availability of data for payment
calculation factors required or authorized by respective
payment formulas under such titles.
``(2) Determine the sufficiency, relevance and reliability
of available data for payment calculation factors to adequately
account for variations in standard benefits under programs
established under this Act, variations in program penetration,
and variations in the cost of delivering care that are unique
to such territories.
``(3) Determine whether the inclusion of payment
calculation factors or certain data sources thereunder, whether
prescribed by the respective titles or ordinarily used by the
Secretary, disproportionately impact the resulting payment
calculation with respect to each such territory, either
generally or relative to the States.
``(4) Insofar as the Secretary determines in accordance
with paragraph (1), (2), or (3) that data are not available,
that available data is insufficient to reliably and adequately
account for variations in standard benefits under programs
established under this Act, variations in program penetration,
and variations in the cost of delivering care that are unique
to such territories, or to the extent that disproportionate
impact to such territories would otherwise occur--
``(A) establish and apply a proxy for payment
calculation factors or substitute data sources where
data sources are determined unavailable, or as
determined necessary to adequately reflect variations
in standard benefits under programs established under
this Act and in the cost of delivering care that are
unique to such territories; or
``(B) to the extent the inclusion of payment
calculation factors or certain data sources thereunder
disproportionately impacts the resulting payment
calculation with respect to each such territory, either
generally or relative to the States, disregard the
factor or data source or devise and apply an
appropriate adjustment factor.
``(5) For purposes of extending the full benefits of
payments to such territories intended under the respective
titles, ensure that the application of payment calculation
factors with respect to such territories occurs in a manner
that takes into account the geographic and demographic
differences, abnormalities in the cost of delivering care in
such territories, and the potential disproportionate impact to
each such territory, either generally or relative to the
States.''.
(b) Implementation.--The Secretary of Health and Human Services
shall determine and apply the payment calculation adjustments
authorized under section 1108(h) of the Social Security Act (42 U.S.C.
1308(h)), as added by subsection (a), as soon as practicable after the
date of enactment of this Act in order to allow for the application of
appropriate payment calculation factors to Puerto Rico, the United
States Virgin Islands, Guam, the Northern Mariana Islands, and American
Samoa under titles XVIII and XIX of the Social Security Act (42 U.S.C.
1395 et seq., 1396 et seq.) at the earliest feasible opportunity.
SEC. 2203. SENSE OF CONGRESS REGARDING FEDERAL HEALTH PROGRAMS IN
TERRITORIES OF THE UNITED STATES.
It is the sense of Congress that--
(1) the territories of the United States should receive
more equitable and sustainable treatment under Federal health
policies and programs, including the Medicare and Medicaid
programs, in a fiscally responsible manner; and
(2) the treatment of the territories of the United States
under Federal health programs, with appropriate Federal
oversight, should aim to--
(A) improve patient outcomes and strengthen health
care systems in the territories;
(B) mitigate against migration from the territories
to the States and the costs to the State and Federal
governments which are associated with such migration;
and
(C) stabilize and strengthen the fiscal condition
of the governments of the territories.
TITLE III--SECURITY
SEC. 3101. CARIBBEAN BORDER COUNTERNARCOTICS STRATEGY.
(a) Caribbean Border Counternarcotics Strategy.--Not later than 6
months after the date of enactment of this Act, and every 2 years
thereafter, the Office of National Drug Control Policy shall develop a
Caribbean Border Counternarcotics Strategy, that is made available to
the public, with emphasis on the borders of Puerto Rico and the Virgin
Islands of the United States, on terms substantially equivalent to the
existing Southwest Border Counternarcotics Strategy and the Northern
Border Counternarcotics Strategy.
(b) Amendments.--The Office of National Drug Control Policy
Reauthorization Act of 1998 (21 U.S.C. 1701 et seq.) is amended--
(1) in section 702 (21 U.S.C. 1701)--
(A) by redesignating paragraphs (10) through (13)
as paragraphs (11) through (14), respectively;
(B) by inserting after paragraph (9) the following
new paragraph:
``(10) State.--The term `State' means the several States,
the District of Columbia, Puerto Rico, the Virgin Islands of
the United States, American Samoa, Guam, and the Commonwealth
of the Northern Mariana Islands.''; and
(C) by adding at the end the following new
paragraph:
``(15) United states.--The term `United States' when used
in the geographic sense, means the several States, the District
of Columbia, Puerto Rico, the Virgin Islands of the United
States, American Samoa, Guam, the Commonwealth of the Northern
Mariana Islands, and all other territories and possessions of
the United States, and any waters within the jurisdiction of
the United States.''; and
(2) in section 704(b)(13)(B) (21 U.S.C. 1703(b)(13)(B)), by
inserting ``the borders of Puerto Rico and the Virgin Islands
of the United States and'' after ``in particular''.
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