[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5368 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 5368

To provide for secure disclosure of tax-return information to carry out 
       the Higher Education Act of 1965, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 9, 2019

 Ms. DelBene 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 provide for secure disclosure of tax-return information to carry out 
       the Higher Education Act of 1965, 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.

    This Act may be cited as the ``Faster Access to Federal Student Aid 
Act of 2019''.

SEC. 2. SECURE DISCLOSURE OF TAX-RETURN INFORMATION TO CARRY OUT THE 
              HIGHER EDUCATION ACT OF 1965.

    (a) In General.--Paragraph (13) of section 6103(l) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(13) Disclosure of return information to carry out the 
        higher education act of 1965.--
                    ``(A) Applications and recertifications for income-
                contingent or income-based repayment.--The Secretary 
                shall, upon written request from the Secretary of 
                Education, disclose to any authorized person, only for 
                the purpose of (and to the extent necessary in) 
                determining eligibility for, or repayment obligations 
                under, income-contingent or income-based repayment 
                plans under title IV of the Higher Education Act of 
                1965 with respect to loans under part D of such title, 
                the following return information from returns (for any 
                taxable year specified by the Secretary of Education as 
                relevant to such purpose) of an individual certified by 
                the Secretary of Education as having provided approval 
                under section 494(a)(2) of such Act (as in effect on 
                the date of enactment of this paragraph) for such 
                disclosure:
                            ``(i) Taxpayer identity information.
                            ``(ii) Filing status.
                            ``(iii) Adjusted gross income.
                            ``(iv) Total number of exemptions claimed, 
                        if applicable.
                            ``(v) Number of dependents taken into 
                        account in determining the credit allowed under 
                        section 24.
                            ``(vi) If applicable, the fact that there 
                        was no return filed.
                    ``(B) Discharge of loan based on total and 
                permanent disability.--The Secretary shall, upon 
                written request from the Secretary of Education, 
                disclose to any authorized person, only for the purpose 
                of (and to the extent necessary in) monitoring and 
                reinstating loans under title IV of the Higher 
                Education Act of 1965 that were discharged based on a 
                total and permanent disability (within the meaning of 
                section 437(a) of such Act), the following return 
                information from returns (for any taxable year 
                specified by the Secretary of Education as relevant to 
                such purpose) of an individual certified by the 
                Secretary of Education as having provided approval 
                under section 494(a)(3) of such Act (as in effect on 
                the date of enactment of this paragraph) for such 
                disclosure:
                            ``(i) The return information described in 
                        clauses (i), (ii), and (vi) of subparagraph 
                        (A).
                            ``(ii) The return information described in 
                        subparagraph (C)(ii).
                    ``(C) Federal student financial aid.--The Secretary 
                shall, upon written request from the Secretary of 
                Education, disclose to any authorized person, only for 
                the purpose of (and to the extent necessary in) 
                determining eligibility for, and amount of, Federal 
                student financial aid under a program authorized under 
                subpart 1 of part A, part C, or part D of title IV of 
                the Higher Education Act of 1965 the following return 
                information from returns (for the taxable year used for 
                purposes of section 480(a) of such Act) of an 
                individual certified by the Secretary of Education as 
                having provided approval under section 494(a)(1) of 
                such Act (as in effect on the date of enactment of this 
                paragraph) for such disclosure:
                            ``(i) Return information described in 
                        clauses (i) through (vi) of subparagraph (A).
                            ``(ii) The amount of any net earnings from 
                        self-employment (as defined in section 
                        1402(a)), wages (as defined in section 3121(a) 
                        or 3401(a)), and taxable income from a farming 
                        business (as defined in section 236A(e)(4)).
                            ``(iii) Amount of total income tax.
                            ``(iv) Amount of any credit allowed under 
                        section 25A.
                            ``(v) Amount of individual retirement 
                        account distributions not included in adjusted 
                        gross income.
                            ``(vi) Amount of individual retirement 
                        account contributions and payments to self-
                        employed SEP, Keogh, and other qualified plans 
                        which were deducted from income.
                            ``(vii) Amount of tax-exempt interest 
                        received.
                            ``(viii) Amounts from retirement pensions 
                        and annuities not included in adjusted gross 
                        income.
                            ``(ix) If applicable, the fact that any of 
                        the following schedules (or equivalent 
                        successor schedules) were filed with the 
                        return:
                                    ``(I) Schedule A.
                                    ``(II) Schedule B.
                                    ``(III) Schedule D.
                                    ``(IV) Schedule E.
                                    ``(V) Schedule F.
                                    ``(VI) Schedule H.
                            ``(x) If applicable, the amount reported on 
                        Schedule C (or an equivalent successor 
                        schedule) as net profit or loss.
                    ``(D) Additional uses of disclosed information.--
                            ``(i) In general.--In addition to the 
                        purposes for which information is disclosed 
                        under subparagraphs (A), (B), and (C), return 
                        information so disclosed may be used by an 
                        authorized person, with respect to income-
                        contingent or income-based repayment plans, 
                        awards of Federal student financial aid under a 
                        program authorized under subpart 1 of part A, 
                        part C, or part D of title IV of the Higher 
                        Education Act of 1965, and discharges of loans 
                        based on a total and permanent disability 
                        (within the meaning of section 437(a) of such 
                        Act), for purposes of--
                                    ``(I) reducing the net cost of 
                                improper payments under such plans, 
                                relating to such disbursements, or 
                                relating to such discharges,
                                    ``(II) oversight activities by the 
                                Office of Inspector General of the 
                                Department of Education as authorized 
                                by the Inspector General Act of 1978, 
                                and
                                    ``(III) conducting analyses and 
                                forecasts for estimating costs related 
                                to such plans, disbursements, or 
                                discharges.
                            ``(ii) Limitation.--The purposes described 
                        in clause (i) shall not include the conduct of 
                        criminal investigations or prosecutions.
                            ``(iii) Redisclosure to institutions of 
                        higher education, state higher education 
                        agencies, and designated scholarship 
                        organizations.--Authorized persons may 
                        redisclose return information received under 
                        subparagraph (C), solely for the use in the 
                        application, award, and administration of 
                        financial aid awarded by the Federal Government 
                        or awarded by a person described in subclause 
                        (I), (II), or (III), to the following persons:
                                    ``(I) An institution of higher 
                                education participating in a program 
                                under subpart 1 of part A, part C, or 
                                part D of title IV of the Higher 
                                Education Act of 1965.
                                    ``(II) A State higher education 
                                agency.
                                    ``(III) A scholarship organization 
                                which is an entity designated (prior to 
                                the date of the enactment of this 
                                clause) by the Secretary of Education 
                                under section 483(a)(3)(E) of such Act.
                        This clause shall only apply to the extent that 
                        the taxpayer with respect to whom the return 
                        information relates provides written consent 
                        for such redisclosure to the Secretary of 
                        Education.
                    ``(E) Authorized person.--For purposes of this 
                paragraph, the term `authorized person' means, with 
                respect to information disclosed under subparagraph 
                (A), (B), or (C), any person who--
                            ``(i) is an officer, employee, or 
                        contractor, of the Department of Education, and
                            ``(ii) is specifically authorized and 
                        designated by the Secretary of Education for 
                        purposes of such subparagraph (applied 
                        separately with respect to each such 
                        subparagraph).
                    ``(F) Joint returns.--In the case of a joint 
                return, any disclosure authorized under subparagraph 
                (A), (B), or (C) with respect to an individual shall be 
                treated for purposes of this paragraph as applying with 
                respect to the taxpayer.''.
    (b) Confidentiality of Return Information.--Section 6103(a)(3) of 
such Code is amended by inserting ``, (13)'' after ``(12)''.
    (c) Conforming Amendments.--
            (1) Section 6103(p)(3)(A) of such Code is amended by 
        striking ``(13)''.
            (2) Section 6103(p)(4) of such Code is amended by inserting 
        ``, (13)'' after ``(l)(10)'' each place it appears.
    (d) Effective Date.--The amendments made by this section shall 
apply to disclosures made after the Secretary of the Treasury (or the 
Secretary's designee) submits a written notification to the Committee 
on Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate that the Secretary of Education has demonstrated 
a readiness to comply with the standards outlined in Internal Revenue 
Service Publication 1075 with respect to return information received 
under section 6103(l)(13) of the Internal Revenue Code of 1986.
    (e) Requirement To Designate the Inspector General of the 
Department of Education as an Authorized Person.--The Secretary of 
Education shall authorize and designate the Inspector General of the 
Department of Education as an authorized person under subparagraph 
(E)(ii) of section 6103(l)(13) of the Internal Revenue Code of 1986 for 
purposes of subparagraphs (A), (B), and (C) of such section.
    (f) Report to Treasury.--The Secretary of Education shall annually 
submit a written report to the Secretary of the Treasury--
            (1) regarding redisclosures of return information under 
        subparagraph (D)(iii) of section 6103(l)(13) of the Internal 
        Revenue Code of 1986, including the number of such 
        redisclosures; and
            (2) regarding any unauthorized use, access, or disclosure 
        of return information disclosed under such section.
    (g) Report to Congress.--The Secretary of the Treasury (or the 
Secretary's designee) shall annually submit a written report to 
Congress regarding disclosures under section 6103(l)(13) of the 
Internal Revenue Code of 1986, including information provided to the 
Secretary under subsection (f).

SEC. 3. AUTOMATIC RECERTIFICATION OF INCOME.

    (a) Income-Contingent Repayment.--
            (1) In general.--Section 455(e) of the Higher Education Act 
        of 1965 (20 U.S.C. 1087e(e)) is amended by adding at the end 
        the following:
            ``(8) Automatic recertification.--
                    ``(A) In general.--The Secretary shall establish 
                and implement, with respect to any borrower described 
                in subparagraph (B), procedures to--
                            ``(i) use return information disclosed 
                        under section 6103(l)(13) of the Internal 
                        Revenue Code of 1986, pursuant to approval 
                        provided under section 494, to determine the 
                        repayment obligation of the borrower without 
                        further action by the borrower;
                            ``(ii) allow the borrower (or the spouse of 
                        the borrower), at any time, to opt out of 
                        disclosure under such section 6103(l)(13) and 
                        instead provide such information as the 
                        Secretary may require to determine the 
                        repayment obligation of the borrower (or 
                        withdraw from the repayment plan under this 
                        subsection); and
                            ``(iii) provide the borrower with an 
                        opportunity to update the return information so 
                        disclosed before the determination of the 
                        repayment obligation of the borrower.
                    ``(B) Applicability.--Subparagraph (A) shall apply 
                to each borrower of a loan made under this part who, on 
                or after the date on which the Secretary establishes 
                procedures under such subparagraph--
                            ``(i) selects, or is required to repay such 
                        loan pursuant to, an income-contingent 
                        repayment plan; or
                            ``(ii) recertifies income or family size 
                        under such plan.''.
            (2) Conforming amendment.--Section 455(e)(6) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087e(e)(6)) is amended--
                    (A) by striking ``including notification of such 
                borrower'' and all that follows through ``that if a 
                borrower'' and inserting ``including notification of 
                such borrower, that if a borrower''; and
                    (B) by striking ``as determined using the 
                information described in subparagraph (A), or the 
                alternative documentation described in paragraph (3)''.
    (b) Income-Based Repayment.--Section 493C(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1098e(c)) is amended--
            (1) by striking ``The Secretary shall establish'' and 
        inserting the following:
            ``(1) In general.--The Secretary shall establish''; and
            (2) by striking ``The Secretary shall consider'' and 
        inserting the following:
            ``(2) Procedures for eligibility.--The Secretary shall--
                    ``(A) consider'';
            (3) by striking ``428C(b)(1)(E).'' and inserting the 
        following: ``428C(b)(1)(E); and
                    ``(B) carry out, with respect to borrowers of any 
                loan made under part D (other than an excepted PLUS 
                loan or excepted consolidation loan), procedures for 
                income-based repayment plans that are equivalent to the 
                procedures carried out under section 455(e)(8) with 
                respect to income-contingent repayment plans.''.

SEC. 4. AUTOMATIC INCOME MONITORING PROCEDURES AFTER A TOTAL AND 
              PERMANENT DISABILITY DISCHARGE.

    Section 437(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087(a)) is amended by adding at the end the following:
            ``(3) Automatic income monitoring.--
                    ``(A) In general.--The Secretary shall establish 
                and implement, with respect to any borrower described 
                in subparagraph (B), procedures to--
                            ``(i) use return information disclosed 
                        under section 6103(l)(13) of the Internal 
                        Revenue Code of 1986, pursuant to approval 
                        provided under section 494, to determine the 
                        borrower's continued eligibility for the loan 
                        discharge described in subparagraph (B);
                            ``(ii) allow the borrower, at any time, to 
                        opt out of disclosure under such section 
                        6103(l)(13) and instead provide such 
                        information as the Secretary may require to 
                        determine the borrower's continued eligibility 
                        for such loan discharge; and
                            ``(iii) provide the borrower with an 
                        opportunity to update the return information so 
                        disclosed before determination of such 
                        borrower's continued eligibility for such loan 
                        discharge.
                    ``(B) Applicability.--Subparagraph (A) shall 
                apply--
                            ``(i) to each borrower of a loan that is 
                        discharged due to the total and permanent 
                        disability (within the meaning of this 
                        subsection) of the borrower; and
                            ``(ii) during the period beginning on the 
                        date on which such loan is so discharged and 
                        ending on the first day on which such loan may 
                        no longer be reinstated.''.

SEC. 5. PROCEDURE AND REQUIREMENTS FOR REQUESTING TAX RETURN 
              INFORMATION FROM THE INTERNAL REVENUE SERVICE.

    (a) In General.--Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the 
following:

``SEC. 494. PROCEDURE AND REQUIREMENTS FOR REQUESTING TAX RETURN 
              INFORMATION FROM THE INTERNAL REVENUE SERVICE.

    ``(a) Notification and Approval Requirements.--
            ``(1) Federal student financial aid.--In the case of any 
        written or electronic application under section 483 by an 
        individual for Federal student financial aid under a program 
        authorized under subpart 1 of part A, part C, or part D, the 
        Secretary, with respect to such individual and any parent or 
        spouse whose financial information is required to be provided 
        on such application, shall--
                    ``(A) notify such individuals that--
                            ``(i) if such individuals provide approval 
                        under subparagraph (B), the Secretary will have 
                        the authority to request that the Secretary of 
                        the Treasury disclose return information of 
                        such individuals to authorized persons (as 
                        defined in section 6103(l)(13) of the Internal 
                        Revenue Code of 1986) for the relevant purposes 
                        described in such section; and
                            ``(ii) the failure to provide such approval 
                        for such disclosure will result in the 
                        Secretary being unable to calculate eligibility 
                        for such aid to such individual; and
                    ``(B) require, as a condition of eligibility for 
                such aid, that such individuals affirmatively approve 
                the disclosure described in subparagraph (A)(i).
            ``(2) Income-contingent and income-based repayment.--
                    ``(A) New applicants.--In the case of any written 
                or electronic application by an individual for an 
                income-contingent or income-based repayment plan for a 
                loan under part D, the Secretary, with respect to such 
                individual and any spouse of such individual, shall--
                            ``(i) provide to such individuals the 
                        notification described in paragraph (1)(A)(i);
                            ``(ii) require, as a condition of 
                        eligibility for such repayment plan, that such 
                        individuals--
                                    ``(I) affirmatively approve the 
                                disclosure described in paragraph 
                                (1)(A)(i) and agree that such approval 
                                shall serve as an ongoing approval of 
                                such disclosure until the date on which 
                                the individual elects to opt out of 
                                such disclosure under section 455(e)(8) 
                                or the equivalent procedures 
                                established under section 
                                493C(c)(2)(B), as applicable; or
                                    ``(II) provide such information as 
                                the Secretary may require to confirm 
                                the eligibility of such individual for 
                                such repayment plan.
                    ``(B) Recertifications.--With respect to the first 
                written or electronic recertification (after the date 
                of the enactment of the Faster Access to Federal 
                Student Aid Act of 2019) of an individual's income or 
                family size for purposes of an income-contingent or 
                income-based repayment plan (entered into before the 
                date of the enactment of the Faster Access to Federal 
                Student Aid Act of 2019) for a loan under part D, the 
                Secretary, with respect to such individual and any 
                spouse of such individual, shall meet the requirements 
                of clauses (i) and (ii) of subparagraph (A) with 
                respect to such recertification.
            ``(3) Total and permanent disability.--In the case of any 
        written or electronic application by an individual for a 
        discharge of a loan under this title based on total and 
        permanent disability (within the meaning of section 437(a)) 
        that requires income monitoring, the Secretary shall--
                    ``(A) provide to such individual the notification 
                described in paragraph (1)(A)(i); and
                    ``(B) require, as a condition of eligibility for 
                such discharge, that such individual--
                            ``(i) affirmatively approve the disclosure 
                        described in paragraph (1)(A)(i) and agree that 
                        such approval shall serve as an ongoing 
                        approval of such disclosure until the earlier 
                        of--
                                    ``(I) the date on which the 
                                individual elects to opt out of such 
                                disclosure under section 437(a)(3)(A); 
                                or
                                    ``(II) the first day on which such 
                                loan may no longer be reinstated; or
                            ``(ii) provide such information as the 
                        Secretary may require to confirm the 
                        eligibility of such individual for such 
                        discharge.
    ``(b) Limit on Authority.--The Secretary shall only have authority 
to request that the Secretary of the Treasury disclose return 
information under section 6103(l)(13) of the Internal Revenue Code of 
1986 with respect to an individual if the Secretary of Education has 
obtained approval under subsection (a) for such disclosure.''.
    (b) Conforming Amendment.--Section 484(q) of the Higher Education 
Act of 1965 (20 U.S.C. 1091(q)) is repealed.

SEC. 6. REPORTS ON IMPLEMENTATION.

    (a) In General.--Not later than each specified date, the Secretary 
of Education and the Secretary of the Treasury shall issue joint 
reports to the Committees on Health, Education, Labor, and Pensions and 
Finance of the Senate and the Committees on Education and Labor and 
Ways and Means of the House of Representatives regarding the amendments 
made by this Act. Each such report shall include, as applicable--
            (1) an update on the status of implementation of the 
        amendments made by this Act;
            (2) an evaluation of how such implementation had affected 
        the processing of applications for Federal student financial 
        aid, applications for income-based repayment and income-
        contingent repayment, and applications for discharge of loans 
        under title IV of the Higher Education Act of 1965 (20 U.S.C. 
        1070 et seq.) based on total and permanent disability; and
            (3) implementation issues and suggestions for potential 
        improvements.
    (b) Specified Date.--For purposes of subsection (a), the term 
``specified date'' means--
            (1) the date that is 90 days after the date of the 
        enactment of this Act;
            (2) the date that is 120 days after the first day that the 
        disclosure process established under section 6103(l)(13) of the 
        Internal Revenue Code of 1986, as amended by section 3(a) of 
        this Act, is operational and accessible to officers, employees, 
        and contractors of the Department of Education (as specifically 
        authorized and designated by the Secretary of Education); and
            (3) the date that is 1 year after the report date described 
        in paragraph (2).
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