[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1916 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 1916

To amend the Internal Revenue Code of 1986 and the Employee Retirement 
  Income Security Act of 1974 to provide alternative minimum funding 
   rules for certain single-employer plans maintained by a community 
                               newspaper.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 27, 2019

  Ms. DelBene (for herself, Mrs. Rodgers of Washington, Mr. Smith of 
Washington, and Mr. Newhouse) introduced the following bill; which was 
 referred to the Committee on Education and Labor, and in addition to 
   the Committee on Ways and Means, 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 amend the Internal Revenue Code of 1986 and the Employee Retirement 
  Income Security Act of 1974 to provide alternative minimum funding 
   rules for certain single-employer plans maintained by a community 
                               newspaper.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Save Community Newspaper Act of 
2019''.

SEC. 2. SPECIAL RULES FOR MINIMUM FUNDING STANDARDS FOR COMMUNITY 
              NEWSPAPER PLANS.

    (a) Amendment to Internal Revenue Code of 1986.--Section 430 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(m) Special Rules for Community Newspaper Plans.--
            ``(1) In general.--The plan sponsor of a community 
        newspaper plan under which no participant has had the 
        participant's accrued benefit increased (whether because of 
        service or compensation) after December 31, 2017, may elect to 
        have the alternative standards described in paragraph (3) apply 
        to such plan, and any plan sponsored by any member of the same 
        controlled group, for purposes of this section for plan years 
        beginning with any plan year in effect on or beginning after 
        the date of the enactment of this subsection.
            ``(2) Election.--An election under paragraph (1) shall be 
        made at such time and in such manner as prescribed by the 
        Secretary. Such election, once made with respect to a plan 
        year, shall apply to all subsequent plan years unless revoked 
        with the consent of the Secretary.
            ``(3) Alternative minimum funding standards.--The 
        alternative standards described in this paragraph are the 
        following:
                    ``(A) Interest rates.--
                            ``(i) In general.--Notwithstanding 
                        subsection (h)(2)(C) and except as provided in 
                        clause (ii), the first, second, and third 
                        segment rates in effect for any month for 
                        purposes of this section shall be 8 percent.
                            ``(ii) New benefit accruals.--
                        Notwithstanding subsection (h)(2), for purposes 
                        of determining the funding target and normal 
                        cost of a plan for any plan year, the present 
                        value of any benefits accrued or earned under 
                        the plan for a plan year with respect to which 
                        an election under paragraph (1) is in effect 
                        shall be determined on the basis of the U.S. 
                        Treasury obligation yield curve for the day 
                        that is the valuation date of such plan for 
                        such plan year.
                            ``(iii) U.S. treasury obligation yield 
                        curve.--For purposes of this subsection, the 
                        term `U.S. Treasury obligation yield curve' 
                        means, with respect to any day, a yield curve 
                        which shall be prescribed by the Secretary for 
                        such day on interest-bearing obligations of the 
                        United States.
                    ``(B) Shortfall amortization base.--
                            ``(i) Previous shortfall amortization 
                        bases.--The shortfall amortization bases 
                        determined under subsection (c)(3) for all plan 
                        years preceding the first plan year to which 
                        the election under paragraph (1) applies (and 
                        all shortfall amortization installments 
                        determined with respect to such bases) shall be 
                        reduced to zero under rules similar to the 
                        rules of subsection (c)(6).
                            ``(ii) New shortfall amortization base.--
                        Notwithstanding subsection (c)(3), the 
                        shortfall amortization base for the first plan 
                        year to which the election under paragraph (1) 
                        applies shall be the funding shortfall of such 
                        plan for such plan year (determined using the 
                        interest rates as modified under subparagraph 
                        (A)).
                    ``(C) Determination of shortfall amortization 
                installments.--
                            ``(i) 30-year period.--Subparagraphs (A) 
                        and (B) of subsection (c)(2) shall be applied 
                        by substituting `30-plan-year' for `7-plan-
                        year' each place it appears.
                            ``(ii) No special election.--The election 
                        under subparagraph (D) of subsection (c)(2) 
                        shall not apply to any plan year to which the 
                        election under paragraph (1) applies.
                    ``(D) Exemption from at-risk treatment.--Subsection 
                (i) shall not apply.
            ``(4) Community newspaper plan.--For purposes of this 
        subsection:
                    ``(A) In general.--The term `community newspaper 
                plan' means a plan to which this section applies 
                maintained by an employer which, as of December 31, 
                2017--
                            ``(i) publishes and distributes, either 
                        electronically or in printed form, 1 or more 
                        newspapers,
                            ``(ii) is not a company the stock of which 
                        is publicly traded (on a stock exchange or in 
                        an over-the-counter market), and is not 
                        controlled, directly or indirectly, by such a 
                        company, and
                            ``(iii) is controlled, directly or 
                        indirectly--
                                    ``(I) by 1 or more persons residing 
                                primarily in a State in which the 
                                newspaper is published or distributed,
                                    ``(II) by a trust or trusts, 1 or 
                                more of which was created or organized 
                                in a State in which the newspaper is 
                                published or distributed, or
                                    ``(III) by a combination of persons 
                                described in subclauses (I) and (II).
                    ``(B) Control.--A person shall be treated as 
                controlled by another person if such other person 
                possesses, directly or indirectly, the power to direct 
                or cause the direction and management of such person 
                (including the power to elect a majority of the members 
                of the board of directors of such person) through the 
                ownership of voting securities.
            ``(5) Controlled group.--For purposes of this subsection, 
        the term `controlled group' means all persons treated as a 
        single employer under subsection (b), (c), (m), or (o) of 
        section 414 as of the date of the enactment of this 
        subsection.''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Section 303 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1083) is amended by adding at the end the following new 
subsection:
    ``(m) Special Rules for Community Newspaper Plans.--
            ``(1) In general.--The plan sponsor of a community 
        newspaper plan under which no participant has had the 
        participant's accrued benefit increased (whether because of 
        service or compensation) after December 31, 2017, may elect to 
        have the alternative standards described in paragraph (3) apply 
        to such plan, and any plan sponsored by any member of the same 
        controlled group, for purposes of this section for plan years 
        beginning with any plan year in effect on or beginning after 
        the date of the enactment of this subsection.
            ``(2) Election.--An election under paragraph (1) shall be 
        made at such time and in such manner as prescribed by the 
        Secretary of the Treasury. Such election, once made with 
        respect to a plan year, shall apply to all subsequent plan 
        years unless revoked with the consent of the Secretary of the 
        Treasury.
            ``(3) Alternative minimum funding standards.--The 
        alternative standards described in this paragraph are the 
        following:
                    ``(A) Interest rates.--
                            ``(i) In general.--Notwithstanding 
                        subsection (h)(2)(C) and except as provided in 
                        clause (ii), the first, second, and third 
                        segment rates in effect for any month for 
                        purposes of this section shall be 8 percent.
                            ``(ii) New benefit accruals.--
                        Notwithstanding subsection (h)(2), for purposes 
                        of determining the funding target and normal 
                        cost of a plan for any plan year, the present 
                        value of any benefits accrued or earned under 
                        the plan for a plan year with respect to which 
                        an election under paragraph (1) is in effect 
                        shall be determined on the basis of the U.S. 
                        Treasury obligation yield curve for the day 
                        that is the valuation date of such plan for 
                        such plan year.
                            ``(iii) U.S. treasury obligation yield 
                        curve.--For purposes of this subsection, the 
                        term `U.S. Treasury obligation yield curve' 
                        means, with respect to any day, a yield curve 
                        which shall be prescribed by the Secretary of 
                        the Treasury for such day on interest-bearing 
                        obligations of the United States.
                    ``(B) Shortfall amortization base.--
                            ``(i) Previous shortfall amortization 
                        bases.--The shortfall amortization bases 
                        determined under subsection (c)(3) for all plan 
                        years preceding the first plan year to which 
                        the election under paragraph (1) applies (and 
                        all shortfall amortization installments 
                        determined with respect to such bases) shall be 
                        reduced to zero under rules similar to the 
                        rules of subsection (c)(6).
                            ``(ii) New shortfall amortization base.--
                        Notwithstanding subsection (c)(3), the 
                        shortfall amortization base for the first plan 
                        year to which the election under paragraph (1) 
                        applies shall be the funding shortfall of such 
                        plan for such plan year (determined using the 
                        interest rates as modified under subparagraph 
                        (A)).
                    ``(C) Determination of shortfall amortization 
                installments.--
                            ``(i) 30-year period.--Subparagraphs (A) 
                        and (B) of subsection (c)(2) shall be applied 
                        by substituting `30-plan-year' for `7-plan-
                        year' each place it appears.
                            ``(ii) No special election.--The election 
                        under subparagraph (D) of subsection (c)(2) 
                        shall not apply to any plan year to which the 
                        election under paragraph (1) applies.
                    ``(D) Exemption from at-risk treatment.--Subsection 
                (i) shall not apply.
            ``(4) Community newspaper plan.--For purposes of this 
        subsection:
                    ``(A) In general.--The term `community newspaper 
                plan' means a plan to which this section applies 
                maintained by an employer which, as of December 31, 
                2017--
                            ``(i) publishes and distributes, either 
                        electronically or in printed form, 1 or more 
                        newspapers,
                            ``(ii) is not a company the stock of which 
                        is publicly traded (on a stock exchange or in 
                        an over-the-counter market), and is not 
                        controlled, directly or indirectly, by such a 
                        company, and
                            ``(iii) is controlled, directly or 
                        indirectly--
                                    ``(I) by 1 or more persons residing 
                                primarily in a State in which the 
                                newspaper is published or distributed,
                                    ``(II) by a trust or trusts, 1 or 
                                more of which was created or organized 
                                in a State in which the newspaper is 
                                published or distributed, or
                                    ``(III) by a combination of persons 
                                described in subclauses (I) and (II).
                    ``(B) Control.--A person shall be treated as 
                controlled by another person if such other person 
                possesses, directly or indirectly, the power to direct 
                or cause the direction and management of such person 
                (including the power to elect a majority of the members 
                of the board of directors of such person) through the 
                ownership of voting securities.
            ``(5) Controlled group.--For purposes of this subsection, 
        the term `controlled group' means all persons treated as a 
        single employer under subsection (b), (c), (m), or (o) of 
        section 414 of the Internal Revenue Code of 1986 as of the date 
        of the enactment of this subsection.
            ``(6) Effect on premium rate calculation.--Notwithstanding 
        any other provision of law or any regulation issued by the 
        Pension Benefit Guaranty Corporation, in the case of a plan 
        with respect to which the election under paragraph (1) has been 
        made, the additional premium under section 4006(a)(3)(E) shall 
        be determined as if such election had not been made.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years ending after December 31, 2017.
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