[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9064 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 9064
To amend and improve Federal law in the areas of immigration, health
care, the Constitution, education, trade, veterans affairs, welfare,
tax, and other matters.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 31, 2020
Mr. King of Iowa introduced the following bill; which was referred to
the Committee on the Judiciary, and in addition to the Committees on
Energy and Commerce, Ways and Means, Education and Labor, Natural
Resources, House Administration, Rules, Appropriations, Agriculture,
Oversight and Reform, Veterans' Affairs, and Foreign Affairs, 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 and improve Federal law in the areas of immigration, health
care, the Constitution, education, trade, veterans affairs, welfare,
tax, and other matters.
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 ``Refurbishing the
Pillars of American Exceptionalism Act of 2020''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
DIVISION A--______
TITLE I--BIRTHRIGHT CITIZENSHIP
Sec. 101. Short title.
Sec. 102. Citizenship at birth for certain persons born in the United
States.
TITLE II--OBAMACARE REPEAL
Sec. 201. Short title.
Sec. 202. Repeal of the Patient Protection and Affordable Care Act and
the Health Care and Education
Reconciliation Act of 2010.
TITLE III--BARRING PPACA SUPREME COURT CASES FROM CITATION
Sec. 301. Barring PPACA Supreme Court cases from citation.
TITLE IV--PROTECT INTERSTATE COMMERCE
Sec. 401. Short title.
Sec. 402. Prohibition against interference by State and local
governments with production or manufacture
of items in other States.
Sec. 403. Federal cause of action to challenge State regulation of
interstate commerce.
Sec. 404. Agricultural product defined.
TITLE V--ESTABLISHING MANDATORY MINIMUMS FOR ILLEGAL REENTRY
Sec. 501. Short title.
Sec. 502. Increased penalties for reentry of removed aliens.
TITLE VI--SARAH'S LAW
Sec. 601. Short title.
Sec. 602. Mandatory detention of certain aliens charged with a crime
resulting in death or serious bodily
injury.
Sec. 603. Savings provision.
TITLE VII--HEARTBEAT PROTECTION
Sec. 701. Short title.
Sec. 702. Abortions prohibited without a check for fetal heartbeat, or
if a fetal heartbeat is detectable.
TITLE VIII--SANCTITY OF LIFE
Sec. 801. Short title.
Sec. 802. Findings and declaration.
Sec. 803. Limitation on jurisdiction.
Sec. 804. Limitation on jurisdiction.
Sec. 805. Effective date.
Sec. 806. Severability.
TITLE IX--TAX FREE HEALTH INSURANCE
Sec. 901. Short title.
Sec. 902. Deduction for premiums for health insurance.
TITLE X--AMERICAN FUTURE HEALTHCARE
Sec. 1001. Short title.
Sec. 1002. Reform of Health Savings Accounts.
Sec. 1003. HSA Rollover to Medicare Advantage MSA.
Sec. 1004. Treatment of direct primary care service arrangement fees as
medical expense.
Sec. 1005. Allowing certain individuals with alternative health
coverage to choose to opt out of the
Medicare part A benefit.
TITLE XI
Subtitle A--Choices in Education Act
Sec. 1101. Short title.
Sec. 1102. Repeal of Elementary and Secondary Education Act and
limitation on secretarial authority.
Sec. 1103. Block grants to states.
Sec. 1104. Application.
Sec. 1105. Education voucher program requirements.
Sec. 1106. Definitions.
Subtitle B--No Hungry Kids Act
Sec. 1121. Short title.
Sec. 1122. Repeal of rule.
Sec. 1123. Limits on certain nutritional requirements.
TITLE XII--RELIGIOUS WORKER VISA RECIPROCITY
Sec. 1201. Short title.
Sec. 1202. Requiring reciprocal immigration treatment.
TITLE XIII--TERMINATION OF EB-5 PROGRAM
Sec. 1301. Termination of EB-5 program.
TITLE XIV--EXPATRIATE TERRORIST
Sec. 1401. Short title.
Sec. 1402. Loss of nationality due to support of terrorism.
Sec. 1403. Revocation or denial of passports and passport cards to
individuals who are members of foreign
terrorist organizations.
TITLE XV--SILENCERS HELP US SAVE HEARING
Sec. 1501. Short title.
Sec. 1502. Equal treatment of silencers and firearms.
Sec. 1503. Treatment of certain silencers.
Sec. 1504. Preemption of certain State laws in relation to firearm
silencers.
Sec. 1505. Silencers and mufflers not to be federally regulated.
TITLE XVI--PROTECT AMERICAN IPR
Sec. 1601. Short title.
Sec. 1602. Study and report on violations of United States intellectual
property rights in China or by Chinese
persons.
Sec. 1603. Imposition of duties on merchandise from China and
distribution of proceeds of such duties to
holders of certain United States
intellectual property rights.
Sec. 1604. Compensation for losses borne by holders of United States
intellectual property rights.
TITLE XVII--SUNSET ACT
Sec. 1701. Short title.
Sec. 1702. Congressional review of agency rulemaking.
TITLE XVIII--ILLEGAL DEDUCTION ELIMINATION
Sec. 1801. Short title.
Sec. 1802. Clarification that wages paid to unauthorized aliens may not
be deducted from gross income.
Sec. 1803. Modification of E-Verify Program.
TITLE XIX--ENGLISH LANGUAGE UNITY
Sec. 1901. Short title.
Sec. 1902. Findings.
Sec. 1903. English as official language of the United States.
Sec. 1904. General rules of construction for English language texts of
the laws of the United States.
Sec. 1905. Implementing regulations.
Sec. 1906. Effective date.
TITLE XX--DAVIS-BACON REPEAL
Sec. 2001. Short title.
Sec. 2002. Repeal of Davis-Bacon wage requirements.
Sec. 2003. Effective date and limitation.
TITLE XXI--CENSUS ACCURACY
Sec. 2101. Short title.
Sec. 2102. Citizenship or lawful presence status on census
questionnaires.
TITLE XXII--TRUTH IN EMPLOYMENT
Sec. 2201. Short title.
Sec. 2202. Findings and purpose.
Sec. 2203. Protection of employer rights.
TITLE XXIII--E-BONDING FOR IMMIGRATION INTEGRITY
Sec. 2301. Short title.
Sec. 2302. Requirement of bond.
Sec. 2303. Visa overstay rate categories.
Sec. 2304. E-bond Enforcement Fund.
Sec. 2305. Report.
Sec. 2306. Definitions.
TITLE XXIV--RESTORING MAXIMUM MOBILITY TO OUR NATION'S VETERANS
Sec. 2401. Short title.
Sec. 2402. Wheelchairs for veterans with service-connected
disabilities.
TITLE XXV--END SANCTUARIES AND HELP OUR AMERICAN HOMELESS AND VETERANS
Sec. 2501. Short title.
Sec. 2502. Findings.
Sec. 2503. Treatment of sanctuary jurisdictions.
Sec. 2504. Private right of action.
TITLE XXVI--SOCIAL SECURITY INTEGRITY ACT OF 2020
Sec. 2601. Short title.
Sec. 2602. Findings.
Sec. 2603. Implementation of OIG recommendations.
TITLE XXVII--HJ RES 47
TITLE XXVIII--HJ RES 49
TITLE XXIX--PROTECTING ACCESS TO CARE
Sec. 2901. Short title.
Sec. 2902. Encouraging speedy resolution of claims.
Sec. 2903. Compensating patient injury.
Sec. 2904. Maximizing patient recovery.
Sec. 2905. Authorization of payment of future damages to claimants in
health care lawsuits.
Sec. 2906. Product liability for health care providers.
Sec. 2907. Definitions.
Sec. 2908. Effect on other laws.
Sec. 2909. Rules of construction.
Sec. 2910. Effective date.
Sec. 2911. Limitation on expert witness testimony.
Sec. 2912. Communications following unanticipated outcome.
Sec. 2913. Expert witness qualifications.
Sec. 2914. Affidavit of merit.
Sec. 2915. Notice of intent to commence lawsuit.
TITLE XXX--CONSOLIDATION OF FEDERAL WELFARE PROGRAMS
Sec. 3001. Sense of congress.
DIVISION B--FAIR TAX ACT
Sec. 1. Short title; table of contents.
Sec. 2. Congressional findings.
TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT
TAXES
Sec. 101. Income taxes repealed.
Sec. 102. Payroll taxes repealed.
Sec. 103. Estate and gift taxes repealed.
Sec. 104. Conforming amendments; effective date.
TITLE II--SALES TAX ENACTED
Sec. 201. Sales tax.
Sec. 202. Conforming and technical amendments.
TITLE III--OTHER MATTERS
Sec. 301. Phase-out of administration of repealed Federal taxes.
Sec. 302. Administration of other Federal taxes.
Sec. 303. Sales tax inclusive Social Security benefits indexation.
TITLE IV--SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED
Sec. 401. Elimination of sales tax if Sixteenth Amendment not repealed.
DIVISION C--CONSTITUTIONAL AMENDMENTS
TITLE I--REPEAL OF 16TH AMENDMENT
Sec. I Repeal of 16th Amendment.
TITLE II--APPORTIONMENT OF REPRESENTATIVES
Sec. II Apportionment of Representatives.
DIVISION A--______
TITLE I--BIRTHRIGHT CITIZENSHIP
SEC. 101. SHORT TITLE.
This title may be cited as the ``Birthright Citizenship Act of
2020''.
SEC. 102. CITIZENSHIP AT BIRTH FOR CERTAIN PERSONS BORN IN THE UNITED
STATES.
(a) In General.--Section 301 of the Immigration and Nationality Act
(8 U.S.C. 1401) is amended--
(1) by inserting ``(a) In General.--'' before ``The
following'';
(2) by redesignating subsections (a) through (h) as
paragraphs (1) through (8), respectively; and
(3) by adding at the end the following:
``(b) Definition.--Acknowledging the right of birthright
citizenship established by section 1 of the 14th amendment to the
Constitution, a person born in the United States shall be considered
`subject to the jurisdiction' of the United States for purposes of
subsection (a)(1) if the person is born in the United States of
parents, one of whom is--
``(1) a citizen or national of the United States;
``(2) an alien lawfully admitted for permanent residence in
the United States whose residence is in the United States; or
``(3) an alien performing active service in the armed
forces (as defined in section 101 of title 10, United States
Code).''.
(b) Applicability.--The amendment made by subsection (a)(3) shall
not be construed to affect the citizenship or nationality status of any
person born before the date of the enactment of this Act.
TITLE II--OBAMACARE REPEAL
SEC. 201. SHORT TITLE.
This title may be cited as the ``ObamaCare Repeal Act''.
SEC. 202. REPEAL OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT AND
THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010.
(a) Patient Protection and Affordable Care Act.--Effective as of
the enactment of the Patient Protection and Affordable Care Act (Public
Law 111-148), such Act is repealed, and the provisions of law amended
or repealed by such Act are restored or revived as if such Act had not
been enacted.
(b) Health Care and Education Reconciliation Act of 2010.--
Effective as of the enactment of the Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), such Act is repealed,
and the provisions of law amended or repealed by such Act are restored
or revived as if such Act had not been enacted.
TITLE III--BARRING PPACA SUPREME COURT CASES FROM CITATION
SEC. 301. BARRING PPACA SUPREME COURT CASES FROM CITATION.
Under Article 3, Section 2, which allows Congress to provide
exceptions and regulations for Supreme Court consideration of cases and
controversies, the following cases are barred from citation for the
purpose of precedence in all future cases after enactment: Nat'l Fed'n
of Indep. Bus. v. Sebelius, 132 S. Ct. 2566, 2573, 183 L. Ed. 2d 450
(2012) and King v. Burwell, 135 S. Ct. 2480, 2485, 192 L. Ed. 2d 483
(2015) and Burwell v. Hobby Lobby Stores Inc., 134 S. Ct. 2751, 2782,
189 L. Ed. 2d 675 (2014).
TITLE IV--PROTECT INTERSTATE COMMERCE
SEC. 401. SHORT TITLE.
This title may be cited as the ``Protect Interstate Commerce Act of
2020''.
SEC. 402. PROHIBITION AGAINST INTERFERENCE BY STATE AND LOCAL
GOVERNMENTS WITH PRODUCTION OR MANUFACTURE OF ITEMS IN
OTHER STATES.
Consistent with article I, section 8, clause 3 of the Constitution
of the United States, the government of a State or locality therein
shall not impose a standard or condition on the production or
manufacture of any agricultural product sold or offered for sale in
interstate commerce if--
(1) such production or manufacture occurs in another State;
and
(2) the standard or condition is in addition to the
standards and conditions applicable to such production or
manufacture pursuant to--
(A) Federal law; and
(B) the laws of the State and locality in which
such production or manufacture occurs.
SEC. 403. FEDERAL CAUSE OF ACTION TO CHALLENGE STATE REGULATION OF
INTERSTATE COMMERCE.
(a) Private Right of Action.--A person, including, but not limited
to, a producer, transporter, distributer, consumer, laborer, trade
association, the Federal Government, a State government, or a unit of
local government, which is affected by a regulation of a State or unit
of local government which regulates any aspect of an agricultural
product, including any aspect of the method of production, which is
sold in interstate commerce, or any means or instrumentality through
which such an agricultural product is sold in interstate commerce, may
bring an action in the appropriate court to invalidate such a
regulation and seek damages for economic loss resulting from such
regulation.
(b) Preliminary Injunction.--Upon a motion of the plaintiff
described in subsection (a), the court shall issue a preliminary
injunction to preclude the State or unit of local government from
enforcing the regulation at issue until such time as the court enters a
final judgment in the case, unless the State or unit of local
government proves by clear and convincing evidence that--
(1) the State or unit of local government is likely to
prevail on the merits at trial; and
(2) the injunction would cause irreparable harm to the
State or unit of local government.
(c) Statute of Limitations.--No action shall be maintained under
this section unless it is commenced within 10 years after the cause of
action arose.
SEC. 404. AGRICULTURAL PRODUCT DEFINED.
In this title, the term ``agricultural product'' has the meaning
given such term in section 207 of the Agricultural Marketing Act of
1946 (7 U.S.C. 1626).
TITLE V--ESTABLISHING MANDATORY MINIMUMS FOR ILLEGAL REENTRY
SEC. 501. SHORT TITLE.
This title may be cited as ``Sarah's Law'' or as the ``Establishing
Mandatory Minimums for Illegal Reentry Act of 2020''.
SEC. 502. INCREASED PENALTIES FOR REENTRY OF REMOVED ALIENS.
Section 276 of the Immigration and Nationality Act (8 U.S.C. 1326)
is amended--
(1) in subsection (a), in the matter following paragraph
(2) by striking ``fined under title 18, United States Code, or
imprisoned not more than 2 years, or both'' and inserting
``imprisoned not less than 5 years and not more than 6 years'';
and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``fined under
title 18, United States Code, imprisoned not more than
10 years, or both'' and inserting ``imprisoned not less
than 5 and not more than 10 years, and may, in
addition, be fined under title 18, United States
Code'';
(B) in paragraph (2), by striking ``fined under
such title, imprisoned not more than 20 years, or
both'' and inserting ``imprisoned not less than 5 and
not more than 20 years and may, in addition, be fined
under such title''; and
(C) in paragraph (4), by striking ``fined under
title 18, United States Code, imprisoned for not more
than 10 years, or both'' and inserting ``imprisoned for
not less than 5 and not more than 10 years and may, in
addition, be fined under such title''.
TITLE VI--SARAH'S LAW
SEC. 601. SHORT TITLE.
This title may be cited as ``Sarah's Law''.
SEC. 602. MANDATORY DETENTION OF CERTAIN ALIENS CHARGED WITH A CRIME
RESULTING IN DEATH OR SERIOUS BODILY INJURY.
Section 236(c) of the Immigration and Nationality Act (8 U.S.C.
1226(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraphs (A) and (B), by striking the
comma at the end of each subparagraph and inserting a
semicolon;
(B) in subparagraph (C)--
(i) by striking ``sentence'' and inserting
``sentenced''; and
(ii) by striking ``, or'' and inserting a
semicolon;
(C) in subparagraph (D), by striking the comma at
the end and inserting ``; or''; and
(D) by inserting after subparagraph (D) the
following:
``(E)(i)(I) was not inspected and admitted into the
United States;
``(II) held a nonimmigrant visa (or other
documentation authorizing admission into the United
States as a nonimmigrant) that has been revoked under
section 221(i); or
``(III) is described in section 237(a)(1)(C)(i);
and
``(ii) has been charged by a prosecuting authority
in the United States with any crime that resulted in
the death or serious bodily injury (as defined in
section 1365(h)(3) of title 18, United States Code) of
another person,''; and
(2) by adding at the end the following:
``(3) Notification requirement.--Upon encountering or
gaining knowledge of an alien described in paragraph (1), the
Assistant Secretary of Homeland Security for Immigration and
Customs Enforcement shall make reasonable efforts--
``(A) to obtain information from law enforcement
agencies and from other available sources regarding the
identity of any victims of the crimes for which such
alien was charged or convicted; and
``(B) to provide the victim or, if the victim is
deceased, a parent, guardian, spouse, or closest living
relative of such victim, with information, on a timely
and ongoing basis, including--
``(i) the alien's full name, aliases, date
of birth, and country of nationality;
``(ii) the alien's immigration status and
criminal history;
``(iii) the alien's custody status and any
changes related to the alien's custody; and
``(iv) a description of any efforts by the
United States Government to remove the alien
from the United States.''.
SEC. 603. SAVINGS PROVISION.
Nothing in this title, or the amendments made by this title, may be
construed to limit the rights of crime victims under any other
provision of law, including section 3771 of title 18, United States
Code.
TITLE VII--HEARTBEAT PROTECTION
SEC. 701. SHORT TITLE.
This title may be cited as the ``Heartbeat Protection Act of
2020''.
SEC. 702. ABORTIONS PROHIBITED WITHOUT A CHECK FOR FETAL HEARTBEAT, OR
IF A FETAL HEARTBEAT IS DETECTABLE.
(a) Abortions Prohibited Without a Check for Fetal Heartbeat, or if
a Fetal Heartbeat Is Detectable.--Chapter 74 of title 18, United States
Code, is amended--
(1) in the chapter heading, by striking ``PARTIAL-BIRTH'';
(2) by inserting after section 1531 the following:
``Sec. 1532. Abortions prohibited without a check for fetal heartbeat,
or if a fetal heartbeat is detectable
``(a) Offense.--Any physician who knowingly performs an abortion
and thereby kills a human fetus--
``(1) without determining, according to standard medical
practice, whether the fetus has a detectable heartbeat;
``(2) without informing the mother of the results of that
determination; or
``(3) after determining, according to standard medical
practice, that the fetus has a detectable heartbeat,
shall be fined under this title or imprisoned not more than 5 years, or
both. This subsection does not apply to an abortion that is necessary
to save the life of a mother whose life is endangered by a physical
disorder, physical illness, or physical injury, including a life-
endangering physical condition caused by or arising from the pregnancy
itself, but not including psychological or emotional conditions.
``(b) Defendant May Seek Hearing.--A defendant indicted for an
offense under this section may seek a hearing before the State Medical
Board on whether the physician's conduct was necessary to save the life
of the mother whose life was endangered by a physical disorder,
physical illness, or physical injury, including a life-endangering
physical condition caused by or arising from the pregnancy itself, but
not including psychological or emotional conditions. The findings on
that issue are admissible on that issue at the trial of the defendant.
Upon a motion of the defendant, the court shall delay the beginning of
the trial for not more than 30 days to permit such a hearing to take
place.
``(c) No Liability for the Mother on Whom Abortion Is Performed.--A
mother upon whom an abortion is performed may not be prosecuted under
this section, for a conspiracy to violate this section, or for an
offense under section 2, 3, or 4 of this title based on a violation of
this section.
``(d) Requirement for Data Retention.--The physician shall include
in the medical file of the mother documentation of the determination,
according to standard medical practice, of whether the fetus has a
detectable heartbeat, the results of that determination, notification
of the mother of those results, and any information entered into
evidence in any proceedings under subsection (b). Paragraph (j)(2) of
section 164.530 of title 45, Code of Federal Regulations, shall apply
to such documentation.
``(e) Severability.--If any provision of this section or the
application of such provision to any person or circumstance is held to
be invalid, the remainder of this section and the application of the
provisions of the remainder to any person or circumstance shall not be
affected thereby.''; and
(3) in the table of sections, by inserting after the item
pertaining to section 1841 the following:
``1532. Abortions prohibited without a check for fetal heartbeat, or if
a fetal heartbeat is detectable.''.
(b) Clerical Amendment.--The table of chapters for part I of title
18, United States Code, is amended, in the item relating to chapter 74,
to read as follows:
``74. Abortions............................................. 1531''.
TITLE VIII--SANCTITY OF LIFE
SEC. 801. SHORT TITLE.
This title may be cited as the ``Sanctity of Life Act of 2020''.
SEC. 802. FINDINGS AND DECLARATION.
(a) Findings.--Congress finds that uncontroverted scientific
evidence has always shown that actual human life exists from the moment
of conception.
(b) Declaration.--Upon the basis of these findings, and in the
exercise of the powers of the Congress, the Congress hereby declares
that human life shall be deemed to exist from fertilization, without
regard to race, sex, age, health, defect, or condition of dependency
and ``person'' shall include all human life as defined herein. Congress
further recognizes that each State has a compelling interest in
protecting the lives of those within the State's jurisdiction whom the
State rationally regards as human beings.
SEC. 803. LIMITATION ON JURISDICTION.
(a) Chapter 81 of title 28, United States Code, is amended by
adding the following new section and renumbering any appropriate
section accordingly:
``Sec. 1261. Appellate jurisdiction; limitations
``Notwithstanding the provisions of sections 1253, 1254, and 1257
of this chapter, the Supreme Court shall not have jurisdiction to
review, by appeal, writ of certiorari, or otherwise, any case arising
out of any statute, ordinance, rule, regulation, practice, or any part
thereof, or arising out of any act interpreting, applying, enforcing,
or effecting any statute, ordinance, rule, regulation, or practice, on
the grounds that such statute, ordinance, rule, regulation, practice,
act, or part thereof (1) protects the rights of human persons between
conception and birth, or (2) prohibits, limits, or regulates (a) the
performance of abortions or (b) the provision of public expense of
funds, facilities, personnel, or other assistance for the performance
of abortions.''.
(b) The section analysis of chapter 81 of title 28 is amended by
adding the following new item:
``1261. Appellate jurisdiction; limitations.''.
SEC. 804. LIMITATION ON JURISDICTION.
(a) Chapter 85 of title 28, United States Code, is amended by
adding at the end thereof the following new section and renumbering any
appropriate section accordingly:
``Sec. 1370. Limitations on jurisdiction
``Notwithstanding any other provision of law, the district courts
shall not have jurisdiction of any case or question which the Supreme
Court does not have jurisdiction to review under section 1261 of this
title.''.
(b) The section analysis at the beginning of chapter 85 of title 28
is amended by adding at the end thereof the following new item:
``1370. Limitations on jurisdiction.''.
SEC. 805. EFFECTIVE DATE.
The provisions of this title shall take effect immediately upon
enactment.
SEC. 806. SEVERABILITY.
If any provision of this title or the application thereof to any
person or circumstance is judicially determined to be invalid, the
validity of the remainder of the Act and the application of such
provision to other persons and circumstances shall not be affected by
such determination.
TITLE IX--TAX FREE HEALTH INSURANCE
SEC. 901. SHORT TITLE.
This title may be cited as the ``Tax Free Health Insurance Act of
2020''.
SEC. 902. DEDUCTION FOR PREMIUMS FOR HEALTH INSURANCE.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 224
as section 225 and by inserting after section 223 the following new
section:
``SEC. 224. DEDUCTION FOR PREMIUMS FOR HEALTH INSURANCE.
``In the case of an individual, there shall be allowed as a
deduction to the taxpayer for the taxable year amounts paid by the
taxpayer for insurance which constitutes medical care (as defined in
section 213(d)) for the taxpayer and the taxpayer's spouse and
dependents. No amount shall be taken into account under the preceding
sentence if a deduction or credit is allowed for such amount under this
chapter or to any other taxpayer.''.
(b) Deduction Allowed Whether or Not Individual Itemizes Other
Deductions.--Subsection (a) of section 62 of such Code is amended by
inserting before the last sentence at the end the following new
paragraph:
``(22) Deduction for premiums for health insurance.--The
deduction allowed by section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by striking the item
relating to section 224 and adding at the end the following new items:
``Sec. 224. Deduction for premiums for health insurance.
``Sec. 225. Cross reference.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2018.
TITLE X--AMERICAN FUTURE HEALTHCARE
SEC. 1001. SHORT TITLE.
This title may be cited as the ``American Future Healthcare Act of
2020''.
SEC. 1002. REFORM OF HEALTH SAVINGS ACCOUNTS.
(a) Repeal of High Deductible Health Plan Requirement.--Section
223(a) of the Internal Revenue Code of 1986 is amended to read as
follows:
``(a) Deduction Allowed.--In the case of an individual, there shall
be allowed as a deduction for a taxable year an amount equal to the
aggregate amount paid in cash during such taxable year by or on behalf
of such individual to a health savings account of such individual.''.
(b) Increase in Deductible HSA Contribution Limitations.--Section
223(b)(1) of such Code is amended by striking ``the sum of the
monthly'' and all that follows through ``eligible individual'' and
inserting ``$10,000 ($20,000 in the case of a joint return)''.
(c) Medicare Eligible Individuals Eligible To Contribute to HSA.--
Section 223(b) of such Code is amended by striking paragraph (7).
(d) Purchase of Health Insurance.--Section 223(d)(2) of such Code
is amended--
(1) by striking subparagraphs (B) and (C), and
(2) by striking ``Qualified medical expenses.--'' and all
that follows through ``The term'' and inserting ``Qualified
medical expenses.--The term''.
(e) Cost-of-Living Adjustment for Catchup Contributions.--Section
223(f)(1) of such Code (as redesignated by subsection (g)(3)) is
amended by striking ``Each dollar amount in subsections (b)(2) and
(c)(2)(A)'' and inserting ``In the case of a taxable year beginning
after December 31, 2019, each dollar amount in paragraphs (1) and (2)
of subsection (b)''.
(f) Cost-of-Living Adjustment Indexed to CPI Medical Care
Component.--Section 223(f) (as so redesignated) is amended by adding at
the end the following new paragraph:
``(3) CPI medical care component.--
``(A) In general.--For purposes of paragraph (1),
the cost-of-living adjustment determined under section
1(f)(3) for the calendar year shall be determined by
substituting `CPI medical care component' for `CPI'.
``(B) CPI medical care component.--For purposes of
subparagraph (A), the term `CPI medical care component'
means the medical care component for the Consumer Price
Index for All Urban Consumers published by the
Department of Labor.''.
(g) Conforming Amendments.--
(1) Section 223(b) of such Code is amended by striking
paragraphs (2), (5), and (8) and by redesignating paragraphs
(3), (4), and (6) as paragraphs (2), (3), and (4),
respectively.
(2) Section 223(b)(3) of such Code (as redesignated by
paragraph (1)) is amended by striking the last sentence.
(3) Section 223 of such Code is amended by striking
subsection (c) and redesignating subsections (d) through (h) as
subsections (c) through (g), respectively.
(4) Section 223(c)(1)(A) of such Code (as redesignated by
paragraph (3)) is amended--
(A) by striking ``subsection (f)(5)'' and inserting
``subsection (e)(5)''; and
(B) in clause (ii) by striking ``the sum of--'' and
all that follows and inserting ``the dollar amount in
effect under subsection (b)(1).''.
(5) Section 223(f)(1) (as redesignated by paragraph (3)) is
amended by striking ``calendar year 2003'' and inserting
``calendar year 2014''.
(6) Section 26(b)(2)(U) of such Code is amended by striking
``section 223(f)(4)'' and inserting ``section 223(e)(4)''.
(7) Sections 35(g)(3), 220(f)(5)(A), 848(e)(1)(v),
4973(a)(5), and 6051(a)(12) of such Code are each amended by
striking ``section 223(d)'' each place it appears and inserting
``section 223(c)''.
(8) Section 106(d)(1) of such Code is amended--
(A) by striking ``who is an eligible individual (as
defined in section 223(c)(1))''; and
(B) by striking ``section 223(d)'' and inserting
``section 223(c)''.
(9) Section 408(d)(9) of such Code is amended--
(A) in subparagraph (A) by striking ``who is an
eligible individual (as defined in section 223(c))
and''; and
(B) in subparagraph (C) by striking ``computed on
the basis of the type of coverage under the high
deductible health plan covering the individual at the
time of the qualified HSA funding distribution''.
(10) Section 877A(g)(6) of such Code is amended by striking
``223(f)(4)'' and inserting ``223(e)(4)''.
(11) Section 4973(g) of such Code is amended--
(A) by striking ``section 223(d)'' and inserting
``section 223(c)'';
(B) in paragraph (2), by striking ``section
223(f)(2)'' and inserting ``section 223(e)(2)''; and
(C) by striking ``section 223(f)(3)'' and inserting
``section 223(e)(3)''.
(12) Section 4975 of such Code is amended--
(A) in subsection (c)(6)--
(i) by striking ``section 223(d)'' and
inserting ``section 223(c)''; and
(ii) by striking ``section 223(e)(2)'' and
inserting ``section 223(d)(2)''; and
(B) in subsection (e)(1)(E), by striking ``section
223(d)'' and inserting ``section 223(c)''.
(13) Section 6693(a)(2)(C) of such Code is amended by
striking ``section 223(h)'' and inserting ``section 223(g)''.
(h) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2018.
SEC. 1003. HSA ROLLOVER TO MEDICARE ADVANTAGE MSA.
(a) In General.--Section 138(b)(2) of the Internal Revenue Code of
1986 is amended by striking ``or'' at the end of subparagraph (A), by
adding ``or'' at the end of subparagraph (C), and by adding at the end
the following new subparagraph:
``(C) an HSA rollover contribution described in
subsection (d)(5),''.
(b) HSA Rollover Contribution.--Section 138(c) of such Code is
amended by adding at the end the following new paragraph:
``(5) Rollover contribution.--An amount is described in
this paragraph as a rollover contribution if it meets the
requirement of subparagraphs (A) and (B).
``(A) In general.--The requirements of this
subparagraph are met in the case of an amount paid or
distributed from a health savings to the account
beneficiary to the extent the amount is received is
paid into a Medicare Advantage MSA of such beneficiary
not later than the 60th day after the day on which the
beneficiary receives the payment or distribution.
``(B) Limitation.--This paragraph shall not apply
to any amount described in subparagraph (A) received by
an individual from a health savings account if, at any
time during the 1-year period ending on the day of such
receipt, such individual received any other amount
described in subparagraph (A) from a health savings
account which was not includible in the individual's
gross income because of the application of section
223(e)(5)(A).''.
(c) Conforming Amendment.--Section 223(e)(5)(A) of such Code, as
amended by section 1002, is amended by inserting ``or Medicare
Advantage MSA'' after ``into a health savings account''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2018.
SEC. 1004. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENT FEES AS
MEDICAL EXPENSE.
(a) In General.--Section 223(c)(2)(C) of the Internal Revenue Code
of 1986, as amended by the preceding provisions of this title, is
amended by striking ``or'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, or'', and by adding
at the end the following new clause:
``(v) any direct primary care service arrangement.''.
(b) Direct Primary Care Service Arrangement.--Section 223(c) of
such Code, as amended by the preceding provisions of this title, is
amended by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:
``(4) Direct primary care service arrangement.--For
purposes of this paragraph--
``(A) In general.--The term `direct primary care
service arrangement' means, with respect to any
individual, an arrangement under which such individual
is provided medical care (as defined in section 213(d))
consisting solely of primary care services (as defined
in section 1833(x)(2)(B) of the Social Security Act)
provided by primary care practitioners (as defined in
section 1833(x)(2)(A) of the Social Security Act,
determined without regard to clause (ii) thereof), if
the sole compensation for such care is a fixed periodic
fee.
``(B) Limitation.--With respect to any individual
for any month, such term shall not include any
arrangement if the aggregate fees for all direct
primary care service arrangements (determined without
regard to this subclause) with respect to such
individual for such month exceed $150 (twice such
dollar amount in the case of an individual with any
direct primary care service arrangement (as so
determined) that covers more than one individual).
``(C) Certain services specifically excluded from
treatment as primary care services.--For purposes of
this paragraph, the term `primary care services' shall
not include--
``(i) procedures that require the use of
general anesthesia,
``(ii) prescription drugs (other than
vaccines), and
``(iii) laboratory services not typically
administered in an ambulatory primary care
setting.
The Secretary, after consultation with the Secretary of
Health and Human Services, shall issue regulations or
other guidance regarding the application of this
subparagraph.''.
(c) Inflation Adjustment.--Section 223(g)(1) of such Code is
amended--
(1) by striking ``and (c)(2)(A)'' and inserting ``,
(c)(2)(A), and (c)(4)(B)'', and
(2) in subparagraph (B), by striking ``clause (ii)'' and
inserting ``clauses (ii) and (iii)'' in clause (i), by striking
``and'' at the end of clause (i), by striking the period at the
end of clause (ii) and inserting ``, and'', and by inserting
after clause (ii) the following new clause:
``(iii) in the case of the dollar amount in
subsection (c)(4)(B) for taxable years
beginning in calendar years after 2019,
`calendar year 2018'.''.
(d) Reporting of Direct Primary Care Service Arrangement Fees on W-
2.--Section 6051(a) of such Code is amended by striking ``and'' at the
end of paragraph (16), by striking the period at the end of paragraph
(17) and inserting ``, and'', and by inserting after paragraph (17) the
following new paragraph:
``(18) in the case of a direct primary care service
arrangement (as defined in section 223(c)(4)) which is provided
in connection with employment, the aggregate fees for such
arrangement for such employee.''.
(e) Effective Date.--The amendments made by this subsection shall
apply to months beginning after December 31, 2018, in taxable years
ending after such date.
SEC. 1005. ALLOWING CERTAIN INDIVIDUALS WITH ALTERNATIVE HEALTH
COVERAGE TO CHOOSE TO OPT OUT OF THE MEDICARE PART A
BENEFIT.
(a) In General.--Any individual described in subsection (c) who is
otherwise entitled to benefits under part A of title XVIII of the
Social Security Act may elect (in such form and manner as may be
specified by the Commissioner of Social Security, in consultation with
the Secretary of Health and Human Services) to opt out of such
entitlement. Notwithstanding any other provision of law, in the case of
an individual who makes such an election, such individual--
(1) may (in such form and manner as may be specified by the
Commissioner, in consultation with the Secretary) subsequently
choose to end such election and opt back into such entitlement
(in accordance with a process determined by the Commissioner,
in consultation with the Secretary) without, subject to
subsection (b), being subject to any penalty;
(2) shall not be required to opt out of benefits under
title II of such Act as a condition for making such election;
and
(3) shall not be required to repay any amount paid under
such part A for items and services furnished prior to making
such election.
(b) Notification of Termination of Qualifying Alternative Health
Coverage Required.--
(1) Notification.--In the case of an individual who makes
an election under subsection (a) and whose enrollment in
qualifying alternative health coverage is subsequently
terminated, such individual shall notify the Secretary of
Health and Human Services of such termination not later than 60
days after the date of such termination.
(2) Late enrollment penalty.--If an individual required to
notify the Secretary under paragraph (1) fails to provide such
notification within the period specified under such paragraph
and subsequently chooses to end the election made by such
individual under subsection (a) and opt back into benefits
under part A of title XVIII of the Social Security Act, such
individual shall be subject to a late enrollment penalty (as
determined by the Secretary) in a manner and amount similar to
an individual enrolled under such part A pursuant to section
1818 of such Act (42 U.S.C. 1395i-2).
(c) Individual Described.--
(1) In general.--For purposes of this section, an
individual described in this subsection is an individual who
demonstrates (in accordance with a process determined by the
Commissioner, in consultation with the Secretary) that the
individual is enrolled under qualifying alternative health
coverage.
(2) Qualifying alternative health coverage.--For purposes
of this section, the term ``qualifying alternative health
coverage'' includes a group health plan or health insurance
coverage offered in the group or individual market (as such
terms are defined in section 2791 of the Public Health Service
Act (42 U.S.C. 300gg-91), or other health coverage specified by
the Commissioner, in consultation with the Secretary, that
provides at least benefits comparable to benefits provided
under part A of title XVIII of the Social Security Act.
TITLE XI
Subtitle A--Choices in Education Act
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Choices in Education Act of
2019''.
SEC. 1102. REPEAL OF ELEMENTARY AND SECONDARY EDUCATION ACT AND
LIMITATION ON SECRETARIAL AUTHORITY.
(a) Repeal.--The Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.) is repealed.
(b) Limitation on Secretarial Authority.--The authority of the
Secretary under this title is limited to evaluating State applications
under section 1104 and making payments to States under section 1103.
The Secretary shall not impose any further requirements on States with
respect to elementary and secondary education beyond the requirements
of this title.
SEC. 1103. BLOCK GRANTS TO STATES.
(a) Grants to States.--From amounts appropriated to carry out this
title for a fiscal year, the Secretary shall award grants (from
allotments made under subsection (b)) to qualified States to enable
such States to carry out an education voucher program under section
1105.
(b) Allotment.--From amounts described in subsection (a) for a
fiscal year, the Secretary shall allot to each qualified State for that
fiscal year an amount that bears the same ratio to those amounts as the
number of eligible children in the qualified State (as determined by
the Secretary on the basis of the most recent satisfactory data) bears
to the number of all eligible children in all States in such school
year.
(c) Reallotment.--If a State does not receive funds under
subsection (b) for a fiscal year, the Secretary shall allot the
remainder of such funds to each qualified State in an amount that bears
the same ratio to such remainder for such year as the amount received
under subsection (b) by such qualified State bears to the amount
received under such subsection for such year by all qualified States.
(d) Deficit Reduction.--Any amounts remaining after allotments are
made under subsection (c) for a fiscal year shall not be available for
any purpose other than deficit reduction.
SEC. 1104. APPLICATION.
(a) Application.--To be eligible to receive a grant under this
title, a State shall submit an application to the Secretary that
includes assurances that the State will--
(1) comply with the requirements of section 1105; and
(2) make it lawful for parents of an eligible child to
elect--
(A) to enroll their child in any public or private
elementary or secondary school in the State; or
(B) to home-school their child.
(b) Approval.--Not later than 30 days after receiving an
application from a State that meets the requirements of subsection (a),
the Secretary shall approve such application.
SEC. 1105. EDUCATION VOUCHER PROGRAM REQUIREMENTS.
(a) Education Voucher Program.--
(1) In general.--The State shall distribute funds received
under this title among the local educational agencies in the
State based on the number of eligible children enrolled in the
public schools operated by each local educational agency and
the number of eligible children within each local educational
agency's geographical area whose parents elect to send their
child to a private school or to home-school their child.
(2) Sense of congress.--It is the sense of Congress that
States should distribute non-Federal funds for elementary and
secondary education in a manner that promotes competition and
choices in education.
(b) Identification of Eligible Children; Allocation and
Distribution of Funds.--
(1) Identification of eligible children.--
(A) LEA identification.--On an annual basis, on a
date to be determined by the Secretary, each local
educational agency shall inform the State educational
agency of--
(i) the number of eligible children
enrolled in public schools served by the local
educational agency; and
(ii) the number of eligible children within
each local educational agency's geographical
area whose parents elect--
(I) to send their child to a
private school; or
(II) to home-school their child.
(B) State identification.--On an annual basis, on a
date to be determined by the Secretary, each State
educational agency shall inform the Secretary of the
total number of children identified by all local
educational agencies in the State under subparagraph
(A).
(2) Amount of payment.--
(A) In general.--Subject to subparagraph (B), the
amount of payment for each eligible child in a State
shall be equal to--
(i) the total amount allotted to the State
under this title; divided by
(ii) the total number of eligible children
in the State identified under paragraph (1).
(B) Limitations.--
(i) In the case of a payment made to the
parent of an eligible child who elects to
attend a private school, the amount of the
payment described in subparagraph (A) for each
eligible child shall not exceed the cost for
tuition, fees, and transportation for the
eligible child to attend the private school.
(ii) In the case of a payment made to a
parent of an eligible child who elects to home-
school such child, the amount of the payment
described in subparagraph (A) for each eligible
child shall not exceed the cost of home-
schooling the child.
(3) Allocation to local educational agencies.--Based on the
identification of eligible children in paragraph (1), the State
educational agency shall provide to a local educational agency
an amount equal to the product of--
(A) the amount available for each eligible child in
the State, as determined in paragraph (2); multiplied
by
(B) the number of eligible children identified by
the local educational agency under paragraph (1)(A).
(4) Distribution to schools.--From amounts allocated under
paragraph (3), each local educational agency that receives
funds under such paragraph shall distribute a portion of such
funds to the public schools served by the local educational
agency, which amount shall--
(A) be based on the number of eligible children
enrolled in such schools and included in the count
submitted under paragraph (1)(A); and
(B) be distributed in a manner that would, in the
absence of such Federal funds, supplement the funds
made available from non-Federal resources for the
education of eligible children, and not to supplant
such funds.
(5) Distribution to parents.--
(A) In general.--From the amounts allocated under
paragraph (3), each local educational agency that
receives funds under such paragraph shall distribute a
portion of such funds, in an amount equal to the amount
described in paragraph (2), to the parents of each
eligible child within the local educational agency's
geographical area who elect to send their child to a
private school or to home-school their child (as the
case may be) and whose child is included in the count
of such eligible children under paragraph (1)(A), which
amount shall be distributed in a manner so as to ensure
that such payments will be used for appropriate
educational expenses.
(B) Reservation.--A local educational agency
described in this paragraph may reserve not more than 1
percent of the funds available for distribution under
subparagraph (A) to pay administrative costs associated
with carrying out the activities described in such
subparagraph.
(c) Rule of Construction.--Payments to parents under subsection
(b)(5) shall be considered assistance to the eligible child and shall
not be considered assistance to the school that enrolls the eligible
child. The amount of any payment under this section shall not be
treated as income of the child or his or her parents for purposes of
Federal tax laws or for determining eligibility for any other Federal
program.
SEC. 1106. DEFINITIONS.
In this title:
(1) Eligible child.--The term ``eligible child'' means a
child aged 5 to 17, inclusive.
(2) Parent.--The term ``parent'' includes a legal guardian
or other person standing in loco parentis (such as a
grandparent or stepparent with whom the child lives, or a
person who is legally responsible for the child's welfare).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(4) State.--The term ``State'' means each of the 50 States
and the District of Columbia.
(5) Qualified state.--The term ``qualified State'' means a
State that has an application approved by the Secretary under
section 1104.
Subtitle B--No Hungry Kids Act
SEC. 1121. SHORT TITLE.
This subtitle may be cited as the ``No Hungry Kids Act''.
SEC. 1122. REPEAL OF RULE.
The rule prescribed by the Food and Nutrition Service of the
Department of Agriculture relating to nutrition standards in the
national school lunch and school breakfast programs published on
January 26, 2012 (77 Fed. Reg. 4088 et seq.), and revising parts 210
and 220 of title 7, Code of Federal Regulations, shall have no force or
effect.
SEC. 1123. LIMITS ON CERTAIN NUTRITIONAL REQUIREMENTS.
Section 9(a)(1)(A)(i) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(a)(1)(A)(i)) is amended by inserting before
the semicolon the following: ``, to establish a calorie maximum for
individual school lunches, or to prohibit a child from eating a lunch
provided by the child's parent or legal guardian''.
TITLE XII--RELIGIOUS WORKER VISA RECIPROCITY
SEC. 1201. SHORT TITLE.
This title may be cited as the ``Religious Worker Visa Reciprocity
Act of 2020''.
SEC. 1202. REQUIRING RECIPROCAL IMMIGRATION TREATMENT.
Section 204(a)(1)(G) of the Immigration and Nationality Act (8
U.S.C. 1154(a)(1)(G)) is amended by adding at the end the following:
``(iii) Beginning on October 1, 2017, no petition may be approved
for classification of an alien as a special immigrant under section
101(a)(27)(C) if the Secretary of Homeland Security has determined that
the country of the alien's nationality--
``(I) is identified as a `Country of Particular Concern' or
a country where religious freedom is of significant interest in
the 2018 International Religious Freedom Report; or
``(II) does not extend reciprocal immigration treatment to
nationals of the United States who are seeking resident status
in order to work in a religious vocation or occupation.''.
TITLE XIII--TERMINATION OF EB-5 PROGRAM
SEC. 1301. TERMINATION OF EB-5 PROGRAM.
(a) Repeal of Provisions.--Effective on the date of the enactment
of this Act, the following provisions are repealed:
(1) Section 203(b)(5) of the Immigration and Nationality
Act (8 U.S.C. 1153(b)(5)).
(2) Section 204(a)(1)(H) of the Immigration and Nationality
Act (8 U.S.C. 1154(a)(1)(H)).
(3) Section 216A of the Immigration and Nationality Act (8
U.S.C. 1186b).
(4) Section 610 of the Departments of Commerce, Justice,
and State, the Judiciary, and Related Agencies Appropriations
Act, 1993 (8 U.S.C. 1153 note).
(b) Applicability.--Beginning on the date of the enactment of this
Act, the Secretary of Homeland Security--
(1) shall cease to accept petitions and applications under
any authority repealed under subsection (a); and
(2) shall dismiss all pending petitions and applications
described in paragraph (1).
TITLE XIV--EXPATRIATE TERRORIST
SEC. 1401. SHORT TITLE.
This title may be cited as the ``Expatriate Terrorist Act''.
SEC. 1402. LOSS OF NATIONALITY DUE TO SUPPORT OF TERRORISM.
Section 349(a) of the Immigration and Nationality Act (8 U.S.C.
1481(a)) is amended to read as follows:
``(a) In General.--A person who is a national of the United States
whether by birth or naturalization, shall lose his or her nationality
by voluntarily performing any of the following acts with the intention
of relinquishing United States nationality:
``(1) Obtaining naturalization in a foreign state upon his
or her own application or upon an application filed by a duly
authorized agent, after having attained 18 years of age.
``(2) Taking an oath or making an affirmation or other
formal declaration of allegiance to a foreign state, a
political subdivision thereof, or a foreign terrorist
organization designated under section 219, after having
attained 18 years of age.
``(3) Entering, or serving in, the armed forces of a
foreign state or a foreign terrorist organization designated
under section 219 if--
``(A) such armed forces are engaged in hostilities
against the United States; or
``(B) such persons serve as a commissioned or
noncommissioned officer.
``(4) Becoming a member of, or providing training or
material assistance to, any foreign terrorist organization
designated under section 219.
``(5) Accepting, serving in, or performing the duties of
any office, post, or employment under the government of a
foreign state, a political subdivision thereof, or a foreign
terrorist organization designated under section 219 if--
``(A) the person knowingly has or acquires the
nationality of such foreign state; or
``(B) an oath, affirmation, or declaration of
allegiance to the foreign state, political subdivision,
or designated foreign terrorist organization is
required for such office, post, or employment.
``(6) Making a formal renunciation of United States
nationality before a diplomatic or consular officer of the
United States in a foreign state, in such form as may be
prescribed by the Secretary of State.
``(7) Making in the United States a formal written
renunciation of nationality in such form as may be prescribed
by, and before such officer as may be designated by, the
Attorney General, whenever the United States shall be in a
state of war and the Attorney General shall approve such
renunciation as not contrary to the interests of national
defense.
``(8)(A) Committing any act of treason against, or
attempting by force to overthrow, or bearing arms against, the
United States;
``(B) violating or conspiring to violate any of the
provisions of section 2383 of title 18, United States Code;
``(C) willfully performing any act in violation of section
2385 of title 18, United States Code; or
``(D) violating section 2384 of such title by engaging in a
conspiracy to overthrow, put down, or to destroy by force the
Government of the United States, or to levy war against them,
if and when such person is convicted thereof by a court martial
or by a court of competent jurisdiction.''.
SEC. 1403. REVOCATION OR DENIAL OF PASSPORTS AND PASSPORT CARDS TO
INDIVIDUALS WHO ARE MEMBERS OF FOREIGN TERRORIST
ORGANIZATIONS.
The Act entitled ``An Act to regulate the issue and validity of
passports, and for other purposes'', approved July 3, 1926 (22 U.S.C.
211a et seq.), which is commonly known as the ``Passport Act of 1926'',
is amended by adding at the end the following:
``SEC. 4. AUTHORITY TO DENY OR REVOKE PASSPORT AND PASSPORT CARD.
``(a) Ineligibility.--
``(1) Issuance.--The Secretary of State shall not issue a
passport or passport card to any individual whom the Secretary
has determined is a member, or is attempting to become a
member, of an organization the Secretary has designated as a
foreign terrorist organization pursuant to section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189).
``(2) Revocation.--The Secretary of State shall revoke a
passport or passport card previously issued to any individual
described in paragraph (1).
``(b) Right of Review.--Any person who, in accordance with this
section, is denied issuance of a passport or passport card by the
Secretary of State, or whose passport or passport card is revoked or
otherwise restricted by the Secretary of State, may request a due
process hearing not later than 60 days after receiving such notice of
the nonissuance, revocation, or restriction.''.
TITLE XV--SILENCERS HELP US SAVE HEARING
SEC. 1501. SHORT TITLE.
This title may be cited as the ``Silencers Help Us Save Hearing
Act'' or the ``SHUSH Act''.
SEC. 1502. EQUAL TREATMENT OF SILENCERS AND FIREARMS.
(a) In General.--Section 5845(a) of the Internal Revenue Code of
1986 is amended by striking ``(7) any silencer'' and all that follows
through ``; and (8)'' and inserting ``; and (7)''.
(b) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendment made by this section shall take
effect on the date of the enactment of this Act.
(2) Transfers.--In the case of the tax imposed by section
5811 of such Code, the amendment made by this section shall
apply with respect to transfers after October 22, 2015.
SEC. 1503. TREATMENT OF CERTAIN SILENCERS.
Section 5841 of the Internal Revenue Code of 1986 is amended by
adding at the end the following:
``(f) Firearm Silencers.--A person acquiring or possessing a
firearm silencer in accordance with Chapter 44 of title 18, United
States Code, shall be treated as meeting any registration and licensing
requirements of the National Firearms Act (as in effect on the day
before the date of the enactment of this subsection) with respect to
such silencer.''.
SEC. 1504. PREEMPTION OF CERTAIN STATE LAWS IN RELATION TO FIREARM
SILENCERS.
Section 927 of title 18, United States Code, is amended by adding
at the end the following: ``Notwithstanding the preceding sentence, a
law of a State or a political subdivision of a State that, as a
condition of lawfully making, transferring, using, possessing, or
transporting a firearm silencer in or affecting interstate or foreign
commerce, imposes a tax on any such conduct, or a marking,
recordkeeping or registration requirement with respect to the firearm
silencer, shall have no force or effect.''.
SEC. 1505. SILENCERS AND MUFFLERS NOT TO BE FEDERALLY REGULATED.
(a) Definitions.--Section 921(a) of title 18, United States Code,
is amended--
(1) in paragraph (3), by striking ``(C) any firearm muffler
or firearm silencer; or (D)'' and inserting ``or (C)''; and
(2) by striking paragraph (24).
(b) Penalties.--Section 924 of such title is amended--
(1) in subsection (c)(1)--
(A) in paragraph (1)(B)(ii) by striking ``, or is
equipped with a firearm silencer or firearm muffler'';
and
(B) in paragraph (1)(C), by striking ``or is
equipped with a firearm silencer or firearm muffler,'';
and
(2) in subsection (o), by striking ``or is equipped with a
firearm silencer or muffler,''.
(c) Carrying of Concealed Firearms by Qualified Law Enforcement
Officers.--Section 926B(e)(3) of such title is amended--
(1) in subparagraph (A), by adding ``and'' at the end;
(2) by striking subparagraph (B); and
(3) by redesignating subparagraph (C) as subparagraph (B).
(d) Carrying of Concealed Firearms by Qualified Retired Law
Enforcement Officers.--Section 926C(e)(1)(C) of such title is amended--
(1) in clause (i), by adding ``and'' at the end; and
(2) by striking clause (ii).
TITLE XVI--PROTECT AMERICAN IPR
SEC. 1601. SHORT TITLE.
This title may be cited as the ``Protect American IPR Act''.
SEC. 1602. STUDY AND REPORT ON VIOLATIONS OF UNITED STATES INTELLECTUAL
PROPERTY RIGHTS IN CHINA OR BY CHINESE PERSONS.
(a) Study.--The United States Trade Representative, in consultation
with the United States International Trade Commission, shall conduct an
annual study to determine the estimated annual loss of revenue to
holders of United States intellectual property rights as a result of
direct or indirect violations of such intellectual property rights in
the People's Republic of China or by any Chinese person, including
governmental entities of China, in the preceding calendar year.
(b) Report.--Not later than 120 days after the date of the
enactment of this Act, and annually thereafter, the United States Trade
Representative shall submit to Congress a report that contains the
results of the study conducted pursuant to subsection (a).
SEC. 1603. IMPOSITION OF DUTIES ON MERCHANDISE FROM CHINA AND
DISTRIBUTION OF PROCEEDS OF SUCH DUTIES TO HOLDERS OF
CERTAIN UNITED STATES INTELLECTUAL PROPERTY RIGHTS.
Notwithstanding any other provision of law, the President, acting
through the United States Trade Representative, shall impose duties on
merchandise originating from China in an amount equivalent to--
(1) the estimated total loss of revenue to holders of
United States intellectual property rights as a result of
violations of such intellectual property rights in China during
the previous calendar year, as determined by the study
conducted pursuant to section 1602(a), reduced by
(2) the total amount of any tariffs collected, pursuant to
section 301 of the Trade Act of 1974 (19 U.S.C. 2411) or any
other provision of law authorizing the President to act to
safeguard intellectual property rights, with respect to such
violations in such previous calendar year.
SEC. 1604. COMPENSATION FOR LOSSES BORNE BY HOLDERS OF UNITED STATES
INTELLECTUAL PROPERTY RIGHTS.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund, to be known as the
``American IPR Trust Fund'' (in this section referred to as the ``Trust
Fund''), consisting of such amounts as may be deposited to the Trust
Fund pursuant to subsection (b) to be used, in accordance with
subsection (c), for the purpose of compensating the injury to holders
of United States intellectual property rights resulting from violations
of such intellectual property rights in China or by any Chinese person,
including governmental entities of China.
(b) Funding.--The Commissioner of U.S. Customs and Border Patrol
shall deposit into the Trust Fund any amounts collected from duties
imposed pursuant to section 1603, which shall remain available until
expended for the purpose described in subsection (a).
(c) Distribution of Funds.--
(1) In general.--From amounts in the Trust Fund, the
Commissioner of U.S. Customs and Border Patrol shall make
payments annually to each person the Commissioner determines,
with respect to the preceding calendar year--
(A) was--
(i) if an individual, a citizen or legal
permanent resident of the United States; or
(ii) if an entity, organized under the laws
of the United States or any subdivision of the
United States;
(B) held the rights to intellectual property under
the laws of the United States; and
(C) can establish quantifiable losses resulting
from the violation, directly or indirectly, of such
rights in China or by any Chinese person, including
governmental entities of China, during such year.
(2) Maximum payment.--The Commissioner may not make a
payment under this subsection to any person for any year in an
amount that is greater than the amount of the loss described in
paragraph (1)(C) established with respect to such person in
such year.
(d) Consultation.--The Commissioner shall consult with the United
States Trade Representative and the Secretary of Commerce in issuing
such regulations as may be necessary to carry out this title.
TITLE XVII--SUNSET ACT
SEC. 1701. SHORT TITLE.
This title may be cited as the ``Sunset Act of 2020''.
SEC. 1702. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.
Chapter 8 of title 5, United States Code, is amended to read as
follows:
``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING
``801. Congressional review.
``802. Congressional approval procedure for rules.
``803. Definitions.
``804. Judicial review.
``805. Exemption for monetary policy.
``806. Review of rules currently in effect.
``807. Sunset for rules.
``Sec. 801. Congressional review
``(a)(1)(A) Beginning on the date that is 3 months after the date
of enactment of this section and every 3 months thereafter, each agency
shall submit to each House of the Congress and to the Comptroller
General a report including each rule made by that agency during that 3-
month period, containing--
``(i) a copy of each such rule;
``(ii) a concise general statement relating to the rule;
``(iii) a list of any other related regulatory actions
intended to implement the same statutory provision or
regulatory objective as well as the individual and aggregate
economic effects of those actions; and
``(iv) the proposed effective date of the rule.
``(B) No rule may take effect before the submission of a report
under subparagraph (A) that includes that rule.
``(C) On the date of the submission of the report under
subparagraph (A), the Federal agency promulgating each rule included in
the report shall submit to the Comptroller General and make available
to each House of Congress--
``(i) a complete copy of the cost-benefit analysis of the
rule, if any;
``(ii) the agency's actions pursuant to title 5 of the
United States Code, sections 603, 604, 605, 607, and 609;
``(iii) the agency's actions pursuant to title 2 of the
United States Code, sections 1532, 1533, 1534, and 1535; and
``(iv) any other relevant information or requirements under
any other Act and any relevant Executive orders.
``(D) Upon receipt of a report submitted under subparagraph (A),
each House shall provide copies of the report to the chairman and
ranking member of each standing committee with jurisdiction under the
rules of the House of Representatives or the Senate to report a bill to
amend the provision of law under which each rule included in the report
is issued.
``(2)(A) The Comptroller General shall provide a report on each
rule to the committees of jurisdiction by the end of 15 calendar days
after the submission or publication date as provided in section
802(b)(2). The report of the Comptroller General shall include an
assessment of the agency's compliance with procedural steps required by
paragraph (1)(C).
``(B) Federal agencies shall cooperate with the Comptroller General
by providing information relevant to the Comptroller General's report
under subparagraph (A).
``(3) A rule included in a report submitted under paragraph (1)
shall take effect upon enactment of a joint resolution of approval
described in section 802 or as provided for in the rule following
enactment of a joint resolution of approval described in section 802,
whichever is later.
``(4) If a joint resolution of approval relating to a rule is not
enacted within the period provided in subsection (b)(2), then a joint
resolution of approval relating to the same rule may not be considered
under this chapter in the same Congress by either the House of
Representatives or the Senate.
``(b)(1) A rule shall not take effect unless the Congress enacts a
joint resolution of approval described under section 802.
``(2) If a joint resolution described in subsection (a) is not
enacted into law by the end of 70 session days or legislative days, as
applicable, beginning on the date on which the report referred to in
section 801(a)(1)(A) is received by Congress (excluding days either
House of Congress is adjourned for more than 3 days during a session of
Congress), then each rule described in that resolution shall be deemed
not to be approved and such rule shall not take effect.
``(3) Such a rule may not be reissued in substantially the same
form, and a new rule that is substantially the same as such a rule may
not be issued, unless the reissued or new rule is specifically
authorized by a law enacted after the date described in this
subsection.
``(c)(1) Notwithstanding any other provision of this section
(except subject to paragraph (3)), a rule may take effect for one 90-
calendar-day period if the President makes a determination under
paragraph (2) and submits written notice of such determination to the
Congress.
``(2) Paragraph (1) applies to a determination made by the
President by Executive order that the rule should take effect because
such rule is--
``(A) necessary because of an imminent threat to health or
safety or other emergency;
``(B) necessary for the enforcement of criminal laws;
``(C) necessary for national security; or
``(D) issued pursuant to any statute implementing an
international trade agreement.
``(3) An exercise by the President of the authority under this
subsection shall have no effect on the procedures under section 802.
``(d)(1) In addition to the opportunity for review otherwise
provided under this chapter, in the case of any rule included in a
report submitted in accordance with subsection (a)(1)(A) during the
period beginning on the date occurring--
``(A) in the case of the Senate, 60 session days, or
``(B) in the case of the House of Representatives, 60
legislative days,
before the date the Congress is scheduled to adjourn a session of
Congress through the date on which the same or succeeding Congress
first convenes its next session, section 802 shall apply to such rule
in the succeeding session of Congress.
``(2)(A) In applying section 802 for purposes of such additional
review, a rule described under paragraph (1) shall be treated as
though--
``(i) such rule were published in the Federal Register on--
``(I) in the case of the Senate, the 15th session
day, or
``(II) in the case of the House of Representatives,
the 15th legislative day,
after the succeeding session of Congress first convenes; and
``(ii) a report on such rule were submitted to Congress
under subsection (a)(1) on such date.
``(B) Nothing in this paragraph shall be construed to affect the
requirement under subsection (a)(1) that a report shall be submitted to
Congress before a rule can take effect.
``(3) A rule described under paragraph (1) shall take effect as
otherwise provided by law (including other subsections of this
section).
``Sec. 802. Congressional approval procedure for rules
``(a) For purposes of this section, the term `joint resolution'
means only a joint resolution introduced on or after the date on which
the report referred to in section 801(a)(1)(A) is received by Congress
(excluding days either House of Congress is adjourned for more than 3
days during a session of Congress), the matter after the resolving
clause of which is as follows: `That Congress approves the rules
submitted by the __ relating to __.' (The blank spaces being
appropriately filled in).
``(1) In the House, the majority leader of the House of
Representatives (or his designee) and the minority leader of
the House of Representatives (or his designee) shall introduce
such joint resolution described in subsection (a) (by request),
within 3 legislative days after Congress receives the report
referred to in section 801(a)(1)(A).
``(2) In the Senate, the majority leader of the Senate (or
his designee) and the minority leader of the Senate (or his
designee) shall introduce such joint resolution described in
subsection (a) (by request), within 3 session days after
Congress receives the report referred to in section
801(a)(1)(A).
``(b)(1) A joint resolution described in subsection (a) shall be
referred to the committees in each House of Congress with jurisdiction
under the rules of the House of Representatives or the Senate to report
a bill to amend the provision of law under which the rule is issued.
``(2) For purposes of this section, the term `submission date'
means the date on which the Congress receives the report submitted
under section 801(a)(1).
``(c) In the Senate, if the committee or committees to which a
joint resolution described in subsection (a) has been referred have not
reported it at the end of 15 session days after its introduction, such
committee or committees shall be automatically discharged from further
consideration of the resolution and it shall be placed on the calendar.
A vote on final passage of the resolution shall be taken on or before
the close of the 15th session day after the resolution is reported by
the committee or committees to which it was referred, or after such
committee or committees have been discharged from further consideration
of the resolution.
``(d)(1) In the Senate, when the committee or committees to which a
joint resolution is referred have reported, or when a committee or
committees are discharged (under subsection (c)) from further
consideration of a joint resolution described in subsection (a), it is
at any time thereafter in order (even though a previous motion to the
same effect has been disagreed to) for a motion to proceed to the
consideration of the joint resolution, and all points of order against
the joint resolution (and against consideration of the joint
resolution) are waived. The motion is not subject to amendment, or to a
motion to postpone, or to a motion to proceed to the consideration of
other business. A motion to reconsider the vote by which the motion is
agreed to or disagreed to shall not be in order. If a motion to proceed
to the consideration of the joint resolution is agreed to, the joint
resolution shall remain the unfinished business of the Senate until
disposed of.
``(2) In the Senate, debate on the joint resolution, and on all
debatable motions and appeals in connection therewith, shall be limited
to not more than 2 hours, which shall be divided equally between those
favoring and those opposing the joint resolution. A motion to further
limit debate is in order and not debatable. It shall be in order to
consider any amendment that provides for specific conditions on which
the approval of a particular rule included in the joint resolution is
contingent.
``(3) In the Senate, immediately following the conclusion of the
debate on a joint resolution described in subsection (a), and a single
quorum call at the conclusion of the debate if requested in accordance
with the rules of the Senate, the vote on final passage of the joint
resolution shall occur.
``(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure relating to a
joint resolution described in subsection (a) shall be decided without
debate.
``(e)(1) In the House of Representatives, if the committee or
committees to which a joint resolution described in subsection (a) has
been referred have not reported it at the end of 15 legislative days
after its introduction, such committee or committees shall be
automatically discharged from further consideration of the resolution
and it shall be placed on the appropriate calendar. A vote on final
passage of the resolution shall be taken on or before the close of the
15th legislative day after the resolution is reported by the committee
or committees to which it was referred, or after such committee or
committees have been discharged from further consideration of the
resolution.
``(2)(A) A motion in the House of Representatives to proceed to the
consideration of a resolution shall be privileged and not debatable. An
amendment to the motion shall not be in order, nor shall it be in order
to move to reconsider the vote by which the motion is agreed to or
disagreed to.
``(B) Debate in the House of Representatives on a resolution shall
be limited to not more than two hours, which shall be divided equally
between those favoring and those opposing the resolution. A motion to
further limit debate shall not be debatable. Amendments to the
resolution shall be in order. No motion to recommit the resolution
shall be in order. It shall be in order to consider any amendment that
provides for specific conditions on which the approval of a particular
rule included in the joint resolution is contingent.
``(C) Motions to postpone, made in the House of Representatives
with respect to the consideration of a resolution, and motions to
proceed to the consideration of other business, shall be decided
without debate.
``(D) All appeals from the decisions of the Chair relating to the
application of the Rules of the House of Representatives to the
procedure relating to a resolution shall be decided without debate.
``(f) If, before the passage by one House of a joint resolution of
that House described in subsection (a), that House receives from the
other House a joint resolution described in subsection (a), then the
following procedures shall apply with respect to a joint resolution
described in subsection (a) of the House receiving the joint
resolution--
``(1) the procedure in that House shall be the same as if
no joint resolution had been received from the other House; but
``(2) the vote on final passage shall be on the joint
resolution of the other House.
``(g) This section is enacted by Congress--
``(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such it is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in
that House in the case of a joint resolution described in
subsection (a), and it supersedes other rules only to the
extent that it is inconsistent with such rules; and
``(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.
``Sec. 803. Definitions
``For purposes of this chapter--
``(1) The term `Federal agency' means any agency as that
term is defined in section 551(1).
``(2) The term `rule' has the meaning given such term in
section 551, except that such term does not include--
``(A) any rule of particular applicability,
including a rule that approves or prescribes for the
future rates, wages, prices, services, or allowances
therefore, corporate or financial structures,
reorganizations, mergers, or acquisitions thereof, or
accounting practices or disclosures bearing on any of
the foregoing;
``(B) any rule relating to agency management or
personnel; or
``(C) any rule of agency organization, procedure,
or practice that does not substantially affect the
rights or obligations of non-agency parties.
``Sec. 804. Judicial review
``(a) No determination, finding, action, or omission under this
chapter shall be subject to judicial review.
``(b) Notwithstanding subsection (a), a court may determine whether
a Federal agency has completed the necessary requirements under this
chapter for a rule to take effect.
``Sec. 805. Exemption for monetary policy
``Nothing in this chapter shall apply to rules that concern
monetary policy proposed or implemented by the Board of Governors of
the Federal Reserve System or the Federal Open Market Committee.
``Sec. 806. Review of rules currently in effect
``(a) Annual Review.--Beginning on the date that is 6 months after
the date of enactment of this section and annually thereafter for the 9
years following, each agency shall designate not less than 10 percent
of eligible rules made by that agency for review, and shall submit a
report including each such eligible rule in the same manner as a report
under section 801(a)(1). Section 801 and section 802 shall apply to
each such rule, subject to subsection (c) of this section. No eligible
rule previously designated may be designated again.
``(b) Sunset for Eligible Rules Not Extended.--Beginning after the
date that is 10 years after the date of enactment of this section, if
Congress has not enacted a joint resolution of approval for that
eligible rule, that eligible rule shall not continue in effect.
``(c) Consolidation; Severability.--In applying sections 801 and
802 to eligible rules under this section, the following shall apply:
``(1) The words `take effect' shall be read as `continue in
effect'.
``(2) Except as provided in paragraph (3), a single joint
resolution of approval shall apply to all eligible rules in a
report designated for a year, and the matter after the
resolving clause of that joint resolution is as follows: `That
Congress approves the rules submitted by the __ for the year
__.' (The blank spaces being appropriately filled in).
``(3) It shall be in order to consider any amendment that
provides for specific conditions on which the approval of a
particular eligible rule included in the joint resolution is
contingent.
``(4) A member of either House may move that a separate
joint resolution be required for a specified rule.
``(d) Definition.--In this section, the term `eligible rule' means
a rule that is in effect as of the date of enactment of this section.
``Sec. 807. Sunset for rules
``(a) Expiration of Rule.--
``(1) In general.--Except as provided in this section, each
rule made by an agency shall cease to have effect--
``(A) beginning on the date that is 10 years after
the date of enactment of a joint resolution of approval
with regard to the rule; or
``(B) if a joint resolution of extension described
in subsection (d) has been enacted with regard to the
rule, beginning on the date that is 10 years after the
date of enactment of the most recently enacted such
joint resolution.
``(2) Reissuance of the rule prohibited.--The rule may not
be reissued in substantially the same form, and a new rule that
is substantially the same as such a rule may not be issued,
unless the reissued or new rule is specifically authorized by a
law enacted after the date described in this subsection (a).
``(b) Report by Agency.--Not later than 180 days before the date
described in subsection (a), the agency shall submit a report similar
to the report described in section 801(a)(1)(A) to each House of
Congress and to the Comptroller General, except that instead of the
proposed effective date, such report shall contain the date described
in subsection (a).
``(c) Exemption by President.--The President may by Executive order
exempt a rule from the application of subsection (a) for a period of
not more than 10 years if the President determines, and submits to
Congress written notice of such determination, that such rule is--
``(1) necessary because of an imminent threat to health or
safety or other emergency;
``(2) necessary for the enforcement of criminal laws;
``(3) necessary for national security; or
``(4) issued pursuant to any statute implementing an
international trade agreement.
``(d) Joint Resolution of Extension.--
``(1) Joint resolution described.--For purposes of this
section, the term `joint resolution' means only a joint
resolution introduced on or after the date on which the report
referred to subsection (b) is received by Congress (excluding
days either House of Congress is adjourned for more than 3 days
during a session of Congress), the matter after the resolving
clause of which is as follows: `That Congress extends the rule
submitted by the _ _ relating to _ _.' (The blank spaces being
appropriately filled in). The following shall apply to such a
joint resolution:
``(A) In the House, the majority leader of the
House of Representatives (or his designee) and the
minority leader of the House of Representatives (or his
designee) shall introduce such joint resolution (by
request), within 3 legislative days after Congress
receives the report submitted under subsection (b).
``(B) In the Senate, the majority leader of the
Senate (or his designee) and the minority leader of the
Senate (or his designee) shall introduce such joint
resolution described in subsection (a) (by request),
within 3 session days after Congress receives the
report submitted under subsection (b).
``(2) Consideration of joint resolution.--Subsections (b)
through (g) of section 802 shall apply to a joint resolution
described in paragraph (1) of this subsection in the same
manner as a joint resolution described in subsection (a) of
section 802, except that for purposes of that subsection, the
term `submission date' means the date on which the Congress
receives the report submitted under subsection (b).''.
TITLE XVIII--ILLEGAL DEDUCTION ELIMINATION
SEC. 1801. SHORT TITLE.
This title may be cited as--
(1) the ``IDEA Act''; or
(2) the ``Illegal Deduction Elimination Act''.
SEC. 1802. CLARIFICATION THAT WAGES PAID TO UNAUTHORIZED ALIENS MAY NOT
BE DEDUCTED FROM GROSS INCOME.
(a) In General.--Subsection (c) of section 162 of the Internal
Revenue Code of 1986 (relating to illegal bribes, kickbacks, and other
payments) is amended by adding at the end the following new paragraph:
``(4) Wages paid to or on behalf of unauthorized aliens.--
``(A) In general.--No deduction shall be allowed
under subsection (a) for any wage paid to or on behalf
of an unauthorized alien, as defined under section
274A(h)(3) of the Immigration and Nationality Act (8
U.S.C. 1324a(h)(3)).
``(B) Wages.--For the purposes of this paragraph,
the term `wages' means all remuneration for employment,
including the cash value of all remuneration (including
benefits) paid in any medium other than cash.
``(C) Safe harbor.--If a person or other entity is
participating in the E-Verify Program described in
section 403(a) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a
note) and obtains confirmation of identity and
employment eligibility in compliance with the terms and
conditions of the program with respect to the hiring
(or recruitment or referral) of an employee,
subparagraph (A) shall not apply with respect to wages
paid to such employee.
``(D) Burden of proof.--In the case of any
examination of a return in connection with a deduction
under this section by reason of this paragraph, the
Secretary shall bear the burden of proving that wages
were paid to or on behalf of an unauthorized alien.
``(E) Limitation on taxpayer audit.--The Secretary
may not commence an audit or other investigation of a
taxpayer solely on the basis of a deduction taken under
this section by reason of this paragraph.''.
(b) Six-Year Limitation on Assessment and Collection.--Subsection
(c) of section 6501 of the Internal Revenue Code of 1986 (relating to
exceptions) is amended by adding at the end the following new
paragraph:
``(12) Deduction claimed for wages paid to unauthorized
aliens.--In the case of a return of tax on which a deduction is
shown in violation of section 162(c)(4), any tax under chapter
1 may be assessed, or a proceeding in court for the collection
of such tax may be begun without assessment, at any time within
6 years after the return was filed.''.
(c) Use of Documentation for Enforcement Purposes.--Section 274A of
the Immigration and Nationality Act (8 U.S.C. 1324a) is amended--
(1) in subparagraph (b)(5), by inserting ``, section
162(c)(4) of the Internal Revenue Code of 1986,'' after
``enforcement of this Act'';
(2) in subparagraph (d)(2)(F), by inserting ``, section
162(c)(4) of the Internal Revenue Code of 1986,'' after
``enforcement of this Act''; and
(3) in subparagraph (d)(2)(G), by inserting ``section
162(c)(4) of the Internal Revenue Code of 1986 or'' after ``or
enforcement of''.
(d) Availability of Information.--
(1) In general.--The Commissioner of Social Security, the
Secretary of the Department of Homeland Security, and the
Secretary of the Treasury, shall jointly establish a program to
share information among such agencies that may or could lead to
the identification of unauthorized aliens (as defined under
section 274A(h)(3) of the Immigration and Nationality Act),
including any no-match letter, any information in the earnings
suspense file, and any information in the investigation and
enforcement of section 162(c)(4) of the Internal Revenue Code
of 1986.
(2) Disclosure by secretary of the treasury.--
(A) In general.--Subsection (i) of section 6103 of
the Internal Revenue Code of 1986 is amended by adding
at the end the following new paragraph:
``(9) Payment of wages to unauthorized aliens.--Upon
request from the Commissioner of the Social Security
Administration or the Secretary of the Department of Homeland
Security, the Secretary shall disclose to officers and
employees of such Administration or Department--
``(A) taxpayer identity information of employers
who paid wages with respect to which a deduction was
not allowed by reason of section 162(c)(4), and
``(B) taxpayer identity information of individuals
to whom such wages were paid,
for purposes of carrying out any enforcement activities of such
Administration or Department with respect to such employers or
individuals.''.
(B) Recordkeeping.--Paragraph (4) of section
6103(p) of such Code is amended--
(i) by striking ``(5), or (7)'' in the
matter preceding subparagraph (A) and inserting
``(5), (7), or (9)'', and
(ii) by striking ``(5) or (7)'' in
subparagraph (F)(ii) and inserting ``(5), (7),
or (9)''.
(e) Effective Date.--
(1) Except as provided in paragraph (2), this title and the
amendments made by this title shall take effect on the date of
the enactment of this Act.
(2) The amendments made by subsections (a) and (b) shall
apply to taxable years beginning after December 31, 2018.
SEC. 1803. MODIFICATION OF E-VERIFY PROGRAM.
(a) Making Permanent.--Subsection (b) of section 401 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
1324a note) is amended by striking the last sentence.
(b) Application to Current Employees.--
(1) Voluntary election.--The first sentence of section
402(a) of such Act is amended to read as follows: ``Any person
or other entity that conducts any hiring (or recruitment or
referral) in a State or employs any individuals in a State may
elect to participate in the E-Verify Program.''.
(2) Benefit of rebuttable presumption.--Paragraph (1) of
section 402(b) of such Act is amended by adding at the end the
following: ``If a person or other entity is participating in
the E-Verify Program and obtains confirmation of identity and
employment eligibility in compliance with the terms and
conditions of the program with respect to individuals employed
by the person or entity, the person or entity has established a
rebuttable presumption that the person or entity has not
violated section 274A(a)(2) with respect to such
individuals.''.
(3) Scope of election.--Subparagraph (A) of section
402(c)(2) of such Act is amended to read as follows:
``(A) In general.--Any electing person or other
entity may provide that the election under subsection
(a) shall apply (during the period in which the
election is in effect)--
``(i) to all its hiring (and all
recruitment or referral);
``(ii) to all its hiring (and all
recruitment or referral and all individuals
employed by the person or entity);
``(iii) to all its hiring (and all
recruitment or referral) in one or more States
or one or more places of hiring (or recruitment
or referral, as the case may be); or
``(iv) to all its hiring (and all
recruitment or referral and all individuals
employed by the person or entity) in one or
more States or one or more place of hiring (or
recruitment or referral or employment, as the
case may be).''.
(4) Procedures for participants in e-verify program.--
Subsection (a) of section 403 of such Act is amended--
(A) in the matter preceding paragraph (1), by
inserting ``or continued employment in the United
States'' after ``United States''; and
(B) in paragraph (3)--
(i) in subparagraph (A), by striking all
that follows ``(as specified by the Secretary
of Homeland Security)'' and inserting ``after
the date of the hiring, or recruitment or
referral, in the case of inquiries made
pursuant to a hiring, recruitment or referral
(and not of previously hired individuals).'';
and
(ii) in subparagraph (B), by striking
``such 3 working days'' and inserting ``the
specified period''.
(c) Application to Job Applicants.--Section 402(c)(2) of such Act
is amended by adding at the end the following:
``(C) Job offer may be made conditional on final
confirmation by e-verify.--A person or other entity
that elects to participate in the E-Verify Program may
offer a prospective employee an employment position
conditioned on final verification of the identity and
employment eligibility of the employee using the
employment eligibility confirmation system established
under section 404.''.
TITLE XIX--ENGLISH LANGUAGE UNITY
SEC. 1901. SHORT TITLE.
This title may be cited as the ``English Language Unity Act of
2020''.
SEC. 1902. FINDINGS.
The Congress finds and declares the following:
(1) The United States is composed of individuals from
diverse ethnic, cultural, and linguistic backgrounds, and
continues to benefit from this rich diversity.
(2) Throughout the history of the United States, the common
thread binding individuals of differing backgrounds has been
the English language.
(3) Among the powers reserved to the States respectively is
the power to establish the English language as the official
language of the respective States, and otherwise to promote the
English language within the respective States, subject to the
prohibitions enumerated in the Constitution of the United
States and in laws of the respective States.
SEC. 1903. ENGLISH AS OFFICIAL LANGUAGE OF THE UNITED STATES.
(a) In General.--Title 4, United States Code, is amended by adding
at the end the following new chapter:
``CHAPTER 6--OFFICIAL LANGUAGE
``Sec. 161. Official language of the United States
``The official language of the United States is English.
``Sec. 162. Preserving and enhancing the role of the official language
``Representatives of the Federal Government shall have an
affirmative obligation to preserve and enhance the role of English as
the official language of the Federal Government. Such obligation shall
include encouraging greater opportunities for individuals to learn the
English language.
``Sec. 163. Official functions of Government to be conducted in English
``(a) Official Functions.--The official functions of the Government
of the United States shall be conducted in English.
``(b) Scope.--For the purposes of this section, the term `United
States' means the several States and the District of Columbia, and the
term `official' refers to any function that (i) binds the Government,
(ii) is required by law, or (iii) is otherwise subject to scrutiny by
either the press or the public.
``(c) Practical Effect.--This section shall apply to all laws,
public proceedings, regulations, publications, orders, actions,
programs, and policies, but does not apply to--
``(1) teaching of languages;
``(2) requirements under the Individuals with Disabilities
Education Act;
``(3) actions, documents, or policies necessary for
national security, international relations, trade, tourism, or
commerce;
``(4) actions or documents that protect the public health
and safety;
``(5) actions or documents that facilitate the activities
of the Bureau of the Census in compiling any census of
population;
``(6) actions that protect the rights of victims of crimes
or criminal defendants; or
``(7) using terms of art or phrases from languages other
than English.
``Sec. 164. Uniform English language rule for naturalization
``(a) Uniform Language Testing Standard.--All citizens should be
able to read and understand generally the English language text of the
Declaration of Independence, the Constitution, and the laws of the
United States made in pursuance of the Constitution.
``(b) Ceremonies.--All naturalization ceremonies shall be conducted
in English.
``Sec. 165. Rules of construction
``Nothing in this chapter shall be construed--
``(1) to prohibit a Member of Congress or any officer or
agent of the Federal Government, while performing official
functions, from communicating unofficially through any medium
with another person in a language other than English (as long
as official functions are performed in English);
``(2) to limit the preservation or use of Native Alaskan or
Native American languages (as defined in the Native American
Languages Act);
``(3) to disparage any language or to discourage any person
from learning or using a language; or
``(4) to be inconsistent with the Constitution of the
United States.
``Sec. 166. Standing
``A person injured by a violation of this chapter may in a civil
action (including an action under chapter 151 of title 28) obtain
appropriate relief.''.
(b) Clerical Amendment.--The table of chapters at the beginning of
title 4, United States Code, is amended by inserting after the item
relating to chapter 5 the following new item:
``Chapter 6. Official Language''.
SEC. 1904. GENERAL RULES OF CONSTRUCTION FOR ENGLISH LANGUAGE TEXTS OF
THE LAWS OF THE UNITED STATES.
(a) In General.--Chapter 1 of title 1, United States Code, is
amended by adding at the end the following new section:
``Sec. 9. General rules of construction for laws of the United States
``(a) English language requirements and workplace policies, whether
in the public or private sector, shall be presumptively consistent with
the laws of the United States.
``(b) Any ambiguity in the English language text of the laws of the
United States shall be resolved, in accordance with the last two
articles of the Bill of Rights, not to deny or disparage rights
retained by the people, and to reserve powers to the States
respectively, or to the people.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 1 of title 1 is amended by inserting after the item relating to
section 8 the following new item:
``9. General rules of construction for laws of the United States.''.
SEC. 1905. IMPLEMENTING REGULATIONS.
The Secretary of Homeland Security shall, within 180 days after the
date of enactment of this Act, issue for public notice and comment a
proposed rule for uniform testing of English language ability of
candidates for naturalization, based upon the principles that--
(1) all citizens should be able to read and understand
generally the English language text of the Declaration of
Independence, the Constitution, and the laws of the United
States which are made in pursuance thereof; and
(2) any exceptions to this standard should be limited to
extraordinary circumstances, such as asylum.
SEC. 1906. EFFECTIVE DATE.
The amendments made by sections 1903 and 1904 shall take effect on
the date that is 180 days after the date of the enactment of this Act.
TITLE XX--DAVIS-BACON REPEAL
SEC. 2001. SHORT TITLE.
This title may be cited as the ``Davis-Bacon Repeal Act''.
SEC. 2002. REPEAL OF DAVIS-BACON WAGE REQUIREMENTS.
(a) In General.--Subchapter IV of chapter 31 of title 40, United
States Code, is repealed.
(b) Reference.--Any reference in any law to a wage requirement of
subchapter IV of chapter 31 of title 40, United States Code, shall
after the date of the enactment of this Act be null and void.
SEC. 2003. EFFECTIVE DATE AND LIMITATION.
The amendment made by section 2002 shall take effect 30 days after
the date of the enactment of this Act but shall not affect any contract
in existence on such date of enactment or made pursuant to invitation
for bids outstanding on such date of enactment.
TITLE XXI--CENSUS ACCURACY
SEC. 2101. SHORT TITLE.
This title may be cited as the ``Census Accuracy Act of 2020''.
SEC. 2102. CITIZENSHIP OR LAWFUL PRESENCE STATUS ON CENSUS
QUESTIONNAIRES.
Section 141 of title 13, United States Code, is amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:
``(g) In conducting the 2020 decennial census and each decennial
census thereafter, the Secretary shall include in any questionnaire
distributed or otherwise used for the purpose of determining the total
population by States--
``(1) a checkbox or other similar option for respondents to
indicate whether the respondent is a citizen or national of the
United States, is lawfully admitted for permanent residence in
the United State, is an alien who otherwise has lawful status
under the immigration laws, or none of these; and
``(2) in connection with the option relating to status
under the immigration laws, a question regarding which Federal
program or provision of law accorded the respondent such
status.''.
TITLE XXII--TRUTH IN EMPLOYMENT
SEC. 2201. SHORT TITLE.
This title may be cited as the ``Truth in Employment Act of 2020''.
SEC. 2202. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) An atmosphere of trust and civility in labor-management
relationships is essential to a productive workplace and a
healthy economy.
(2) The tactic of using professional union organizers and
agents to infiltrate a targeted employer's workplace, a
practice commonly referred to as ``salting'' has evolved into
an aggressive form of harassment not contemplated when the
National Labor Relations Act was enacted and threatens the
balance of rights which is fundamental to collective
bargaining.
(3) Increasingly, union organizers are seeking employment
with nonunion employers not because of a desire to work for
such employers but primarily to organize the employees of such
employers or to inflict economic harm specifically designed to
put nonunion competitors out of business, or to do both.
(4) While no employer may discriminate against employees
based upon the views of employees concerning collective
bargaining, an employer should have the right to expect job
applicants to be primarily interested in utilizing the skills
of the applicants to further the goals of the business of the
employer.
(b) Purposes.--The purposes of this title are--
(1) to preserve the balance of rights between employers,
employees, and labor organizations which is fundamental to
collective bargaining;
(2) to preserve the rights of workers to organize, or
otherwise engage in concerted activities protected under the
National Labor Relations Act; and
(3) to alleviate pressure on employers to hire individuals
who seek or gain employment in order to disrupt the workplace
of the employer or otherwise inflict economic harm designed to
put the employer out of business.
SEC. 2203. PROTECTION OF EMPLOYER RIGHTS.
Section 8(a) of the National Labor Relations Act (29 U.S.C. 158(a))
is amended by adding after and below paragraph (5) the following:
``Nothing in this subsection shall be construed as requiring an
employer to employ any person who seeks or has sought employment with
the employer in furtherance of other employment or agency status.''.
TITLE XXIII--E-BONDING FOR IMMIGRATION INTEGRITY
SEC. 2301. SHORT TITLE.
This title may be cited as the ``E-bonding for Immigration
Integrity Act of 2020''.
SEC. 2302. REQUIREMENT OF BOND.
(a) Bond Required.--Prior to arriving at a port of entry of the
United States, an alien seeking admission to the United States shall
post a bond, in accordance with subsection (d), in an amount determined
by the Secretary if such alien seeks admission to the United States as
a nonimmigrant in a category--
(1) described under subparagraph (B), (F), (H)(i)(b),
(H)(ii)(b), or (K) of section 101(a)(15) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(15)); or
(2) identified by the Secretary, in accordance with section
2303, to have a visa overstay rate that is more than 1.5
percent.
(b) Amount of Bond.--Not later than 1 year after the date of the
enactment of this section, the Secretary shall, by rule, establish the
amount of the bond required by subsection (a) for each visa category
under subsection (a)(1) and each visa category identified by the
Secretary under section 2303, which amount shall--
(1) be not less than $2,500 and not more than $10,000; and
(2) be determined based on the Secretary's assessment of
the level of risk of visa overstays for that category.
(c) Adjustment of Amount of Bond.--On an annual basis, the
Secretary shall review, and, as appropriate, adjust the amounts of the
bonds described in subsection (b).
(d) Payment of Bond.--An alien required to post the bond under
subsection (a) shall post such bond--
(1) in electronic form; and
(2) with a bonding agent designated by the Secretary as
qualified to hold such bond.
(e) Release of Bond.--The Secretary shall authorize a bonding agent
to release a bond--
(1) to an alien required to post such bond--
(A) after receiving a notification from the United
States embassy or consulate in the alien's country of
origin that such alien departed the United States and
returned to such country of origin; or
(B) if such alien changed or adjusted their status
to an immigration status not required to post a bond
under this section; and
(2) to the E-bond Enforcement Fund under section 2304 upon
a determination by the Secretary that an alien--
(A) overstayed their visa; or
(B) did not return to their country of origin
following the termination of their visa.
(f) Change of Status.--An alien who has been admitted to the United
States and who is required to post a bond under subsection (a) may be
required to post an additional bond if such alien changes their status
to that of a nonimmigrant in a category required to pay a higher bond
under this section.
(g) Collection of Records Relating to Bonds.--The United States
Embassy or United States consular office in the alien's country of
origin shall collect any records necessary to carry out this section.
(h) Effective Date.--This section shall take effect on the date
that is 120 calendar days after the date of the enactment of this Act.
SEC. 2303. VISA OVERSTAY RATE CATEGORIES.
The Secretary shall identify--
(1) the visa overstay rate for each category of
nonimmigrant aliens described under section 101(a)(15) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) in the
previous year; and
(2) each category of nonimmigrant aliens described under
such section that had a visa overstay rate in the previous year
that was more than 1.5 percent.
SEC. 2304. E-BOND ENFORCEMENT FUND.
(a) In General.--There is established in the general fund of the
Treasury a separate account, which shall be known as the ``E-bond
Enforcement Fund'' (in this subsection referred to as the ``Fund'').
(b) Deposits.--There shall be deposited as offsetting receipts into
the Fund all amounts released under section 2302(e)(2) of this title.
(c) Use of Amounts.--Amounts deposited into the Fund shall remain
available until expended and shall be refunded out of the Fund by the
Secretary of the Treasury, to the Secretary of Homeland Security to--
(1) ensure compliance with this title; and
(2) administer enforcement programs.
SEC. 2305. REPORT.
Not later than 120 days after the date of the enactment of this
Act, and each year thereafter, the Secretary shall submit to the
committees of appropriate jurisdiction a report that includes--
(1) the visa overstay rate for each category of
nonimmigrant alien described under section 101(a)(15) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) in the
previous year;
(2) the categories that had a visa overstay rate in the
previous year that was more than 1.5 percent, as determined by
the Secretary in accordance with section 2303;
(3) the amounts of the bonds, as determined by the
Secretary in accordance with section 2302;
(4) information relating to the Fund under section 2304;
and
(5) any other information determined appropriate by the
Secretary.
SEC. 2306. DEFINITIONS.
In this title:
(1) Committees of appropriate jurisdiction.--The term
``committees of appropriate jurisdiction'' means--
(A) the Committee on the Judiciary of the House of
Representatives;
(B) the Committee on the Judiciary of the Senate;
(C) the Committee on Homeland Security of the House
of Representatives; and
(D) the Committee on Homeland Security and
Governmental Affairs of the Senate.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Homeland Security, unless otherwise provided.
(3) Visa overstay rate.--The term ``visa overstay rate''
means the ratio of, for each category of nonimmigrant aliens
described in section 101(a)(15) of the Immigration and
Nationality Act (8 U.S.C. 1101 (a)(15))--
(A) the number of aliens admitted to the United
States for each such category whose period of
authorized stays ended during a fiscal year but who
remained unlawfully in the United States beyond such
period; to
(B) the total number of aliens admitted to the
United States for each such category during that fiscal
year.
TITLE XXIV--RESTORING MAXIMUM MOBILITY TO OUR NATION'S VETERANS
SEC. 2401. SHORT TITLE.
This title may be cited as the ``Restoring Maximum Mobility to Our
Nation's Veterans Act of 2020''.
SEC. 2402. WHEELCHAIRS FOR VETERANS WITH SERVICE-CONNECTED
DISABILITIES.
(a) Definition.--Section 1701 of title 38, United States Code, is
amended by adding at the end the following new paragraph:
``(11) The term `wheelchair' includes enhanced power wheelchairs,
multi-environmental wheelchairs, track wheelchairs, stair-climbing
wheelchairs, and other power-driven mobility devices.''.
(b) Enhanced Wheelchairs.--Section 1712(c) of title 38, United
States Code, is amended--
(1) by striking ``Dental'' and inserting ``(1) Dental'';
(2) by striking ``section'' and inserting ``title''; and
(3) by adding at the end the following new paragraph:
``(2) The Secretary shall ensure that each wheelchair, furnished
under this title to a veteran because of a service-connected
disability, restores the maximum achievable mobility and function in
the activities of daily life, employment, and recreation. The Secretary
may furnish a wheelchair to a veteran because the wheelchair restores
an ability that relates exclusively to participation in a recreational
activity.''.
TITLE XXV--END SANCTUARIES AND HELP OUR AMERICAN HOMELESS AND VETERANS
SEC. 2501. SHORT TITLE.
This title may be cited as--
(1) the ``End Sanctuaries and Help Our American Homeless
and Veterans Act''; or
(2) the ``Diamond and Silk Act''.
SEC. 2502. FINDINGS.
The Congress finds as follows:
(1) According to United States law, found at section 274 of
the Immigration and Nationality Act (8 U.S.C. 1324), it is
illegal to bring or harbor illegal immigrants in our Nation.
(2) In contravention of this law, cities, counties,
parishes, other political subdivisions, and States in our
Nation have adopted policies specifically oriented to bring in,
harbor, and even attract illegal aliens into their
jurisdictions.
(3) Although the Federal Government, and specifically the
Congress of the United States, is constitutionally charged with
establishing ``an uniform Rule of Naturalization'', in certain
cases States and political subdivisions, including cities, have
been assuming the role of immigration authorities, clearly in
violation of both the Constitution and Federal statute.
(4) Historically, the Federal Government has proven
lackadaisical about enforcing its sole jurisdiction in the
serious matter of illegal immigration and taking action against
those jurisdictions that knowingly or recklessly disregard the
Rule of Law to conceal, harbor, attempt to, or actually shield
from detection, such illegal aliens, or that prohibit their
officers from gathering information for, or cooperating with,
Federal officials.
(5) In these wanton acts, such jurisdictions break the law
that its citizens are held to, violate the trust of the
taxpayers who are already charged with a $22 trillion dollar
Government debt that grows daily, and--perhaps worst--subject
those they should protect and serve to death by deliberate
murderous acts and traffic accidents by those who should not be
in the country at all.
(6) In this way, such jurisdictions aid and abet American
deaths that are 100 percent preventable.
(7) Such tragic, preventable American deaths have been
suffered by ``Angel Families'' who have lost spouses, sons,
daughters, grandchildren, parents, and grandparents at the
hands of illegal aliens.
(8) These families are left to suffer deaths that should
not have been, according to the law of the land, while too
often complicit public officials, cities, States, and the
Federal Government are not held accountable.
(9) Meanwhile, our Nation's American homeless and veterans
are too often left out in the cold, without the basic
necessities and care that they need and deserve as citizens of
this country.
(10) Our American homeless and veterans must be prioritized
and cared for by law and in fact.
(11) Jurisdictions' responsibilities must be taken
seriously, and never aid and abet, violations of immigration
law.
(12) These are dual injustices that the law, as is,
dictates must end.
SEC. 2503. TREATMENT OF SANCTUARY JURISDICTIONS.
(a) Definition.--In this section, the term ``sanctuary
jurisdiction'' means a State or any political subdivision of a State
that the Attorney General determines has in effect a statute,
ordinance, policy, or practice that prohibits or in any way restricts,
a Federal, State, or local government entity, official, or other
personnel from--
(1) complying with the immigration laws (as defined in
section 101(a)(17) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(17))), or from assisting or cooperating with
Federal law enforcement entities, officials, or other personnel
regarding the enforcement of these laws; or
(2) undertaking any of the following law enforcement
activities as they relate to information regarding the
citizenship or immigration status, lawful or unlawful, the
inadmissibility or deportability, or the custody status, of any
individual:
(A) Making inquiries to any individual in order to
obtain such information regarding such individual or
any other individuals.
(B) Notifying the Federal Government regarding the
presence of individuals who are encountered by law
enforcement officials or other personnel of a State or
political subdivision of a State.
(C) Complying with requests for such information
from Federal law enforcement entities, officials, or
other personnel.
(D) Complying with detainers.
(b) Ineligibility of Sanctuary Jurisdictions for Federal Funds.--
(1) States.--No sanctuary jurisdiction that is a State may
be allocated or receive any Federal financial assistance (as
such term is defined in section 7501(a)(5) of title 31, United
States Code).
(2) Political subdivisions.--No sanctuary jurisdiction that
is a political subdivision of a State may be allocated or
receive any funds made available to the Attorney General,
including those made available from the account ``Department of
Justice--Office of Justice Programs--State and Local Law
Enforcement Assistance''.
(3) Sovereign immunity.--Each State and political
subdivision of a State shall, as a condition on receipt of any
Federal financial assistance (as such term is defined in
section 7501(a)(5) of title 31, United States Code), waive the
sovereign immunity of the State or political subdivision with
respect to actions authorized under section 2504.
(4) Reallocation of funds.--Notwithstanding any other
provision of law, any funds not allocated to a sanctuary
jurisdiction from the account ``Department of Justice--Office
of Justice Programs--State and Local Law Enforcement
Assistance'' pursuant to this subsection shall be made
available for activities carried out under the Justice and
Mental Health Collaboration Program of the Office of Justice
Programs of the Department of Justice, to reduce homelessness
in order to improve outcomes for individuals with mental
illnesses or co-occurring mental health and substance abuse
disorders who encounter the justice system, thereby reducing
mental health disorders and homelessness among our citizens.
SEC. 2504. PRIVATE RIGHT OF ACTION.
(a) Cause of Action.--Any individual, or a spouse, parent, or child
of that individual (if the individual is deceased), who is the victim
of a murder, rape, or any felony, as defined by the State, for which an
alien (as defined in section 101(a)(3) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(3))) has been convicted and sentenced
to a term of imprisonment of at least 1 year, may bring an action
against a State or political subdivision of a State in the appropriate
Federal or State court--
(1) if the State or political subdivision released the
alien from custody prior to the commission of such crime, and
had knowledge that the alien was unlawfully present in the
United States; or
(2) the crime was a consequence of the State or political
subdivision declining to honor a detainer or warrant issued
pursuant to section 287(d)(1) of the Immigration and
Nationality Act (8 U.S.C. 1357(d)(1)).
(b) Application.--Subject to subsection (c), subsection (a) shall
apply without regard to whether the crime was committed before, on, or
after the date of the enactment of this Act.
(c) Limitation on Bringing Action.--
(1) In general.--An action brought under this section may
not be brought later than 10 years following the occurrence of
the crime, or death of a person as a result of such crime,
whichever occurs later.
(2) Exception.--Paragraph (1) shall not apply to an action
brought under this section based on a crime committed before
the date of the enactment of this Act.
(d) Attorney's Fees and Other Costs.--In any action or proceeding
under this section the court shall allow a prevailing plaintiff a
reasonable attorneys' fee as part of the costs, and include expert fees
as part of the attorneys' fee.
TITLE XXVI--SOCIAL SECURITY INTEGRITY ACT OF 2020
SEC. 2601. SHORT TITLE.
This title may be cited as the ``Social Security Integrity Act of
2020''.
SEC. 2602. FINDINGS.
Congress finds the following:
(1) Individuals can commit various types of fraud against
the Government by reporting earnings under deceased
individuals' Social Security Numbers (SSNs).
(2) Various Federal entities rely on the Social Security
Administration's (SSA) death information to detect unreported
deaths and verify the accuracy of reported deaths.
(3) The Numident is the SSA's computer database file on all
who have applied for a Social Security number. The Office of
the Inspector General (OIG) of the SSA conducted an audit and
determined that the SSA did not have controls in place to
annotate death information on the Numident records of
numberholders who exceeded maximum reasonable life expectancies
and were likely deceased.
(4) The OIG identified 34 cases in which it appeared that
the deceased numberholder's name and Social Security Number
(SSN) had been misused. In one instance an employer reported
paying wages to someone from 2008 through 2012 using a
numberholder's name and SSN that had been born in 1886. SSA
payment records indicated that the numberholder died in January
1965, but the SSA did not record the numberholder's death on
the Numident. SSA continued paying benefits to the
numberholder's widow until her death in February 1973. SSA's
Master Earning File (MEF) contained no reported earnings
information for this numberholder from 1956 through 2007.
(5) The OIG determined that thousands of the SSNs could
have been used to commit identity fraud. For tax years 2006
through 2011, SSA received reports that individuals using
66,920 SSNs had approximately $3.1 billion in wages, tips, and
self-employment income. SSA transferred the earnings to the
Earnings Suspense File because the employees' or self-employed
individuals' names on the earnings reports did not match the
numberholders' names.
(6) During calendar years 2008 through 2011, employers made
4,024 E-Verify inquiries using 3,873 SSNs belonging to
numberholders born before June 16, 1901. According to the OIG,
these inquiries indicate individuals' attempts to use the SSNs
to apply for work.
(7) The OIG determined that resolving these discrepancies
will improve the accuracy and completeness of the Death Master
File and help prevent future misuse of these SSNs.
(8) The American taxpayer deserves to have the surety of
knowing that every agency and department within the Federal
Government takes the prudent actions necessary to prevent
future fraud and waste of hard-earned dollars.
(9) In 2015, the OIG identified approximately 6.5 million
numberholders age 112 or older who did not have death
information on the Numident.
(10) Of the 6.5 million cases OIG identified, based on
initial review, SSA believed approximately 1.5 million of these
individuals were deceased. After further in-depth analysis, SSA
posted death information to records for only those cases that
passed complex identity matching protocols, and where the most
current information indicated the individuals are in fact
deceased.
(11) For the remaining 5 million cases, the SSA reports
that it does not have sufficient or reliable evidence that
these individuals are deceased. However, the SSA also notes
that the individuals have never received payments from the SSA;
the records are decades old, and are the result of error-prone
paper reporting processes; it is possible that, decades ago,
SSA incorrectly recorded some dates of birth and that some
individuals are much younger than current records indicate; and
it would be imprudent to presume death in order to add these
cases to the DMF because doing so could result in the
inappropriate release of living individuals' personally
identifiable information--an action that has far-reaching and
adverse consequences for these individuals.
(12) In line with the OIG's recommendations, the SSA should
take proactive action to fully protect the American taxpayer by
ensuring that there are comprehensive controls in place to
annotate death information on the Numident records of
numberholders who exceeded maximum reasonable life
expectancies.
SEC. 2603. IMPLEMENTATION OF OIG RECOMMENDATIONS.
(a) In General.--Not later than 3 years after the date of the
enactment of this Act, the Commissioner of Social Security shall
implement all of the recommendations described in the memorandum from
the Office of the Inspector General of the Social Security
Administration entitled ``Numberholders Age 112 or Older Who Did Not
Have a Death Entry on the Numident (A-06-14-34030)'' and dated March 4,
2015.
(b) Additional Payment to Individuals Attaining 100 Years of Age.--
The Commissioner of Social Security shall make a one-time payment in
the amount of $100 to each individual who, according to the records of
the Commissioner of Social Security, attains 100 years of age after the
date of enactment of this Act and applies for such payment.
(c) Report.--Not later than December 31 of each calendar year that
begins after the date of the enactment of this Act and ends before the
date that is 3 years after such date of enactment, the Commissioner
shall submit to the Congress a report on the progress made toward
implementation of each of the recommendations described in the
memorandum specified in subsection (a), the methods used to implement
such recommendations, the amount of funds expended and any other
resources utilized to implement such recommendations, and the projected
date of full implementation.
TITLE XXVII--HJ RES 47
TITLE XXVIII--HJ RES 49
TITLE XXIX--PROTECTING ACCESS TO CARE
SEC. 2901. SHORT TITLE.
This title may be cited as the ``Protecting Access to Care Act of
2020''.
SEC. 2902. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS.
(a) Statute of Limitations.--
(1) In general.--Except as provided in paragraph (2), the
time for the commencement of a health care lawsuit shall be,
whichever occurs first of the following:
(A) 3 years after the date of the occurrence of the
breach or tort;
(B) 3 years after the date the medical or health
care treatment that is the subject of the claim is
completed; or
(C) 1 year after the claimant discovers, or through
the use of reasonable diligence should have discovered,
the injury.
(2) Tolling.--In no event shall the time for commencement
of a health care lawsuit exceed 3 years after the date of the
occurrence of the breach or tort or 3 years after the date the
medical or health care treatment that is the subject of the
claim is completed (whichever occurs first) unless tolled for
any of the following--
(A) upon proof of fraud;
(B) intentional concealment; or
(C) the presence of a foreign body, which has no
therapeutic or diagnostic purpose or effect, in the
person of the injured person.
(3) Actions by a minor.--Actions by a minor shall be
commenced within 3 years after the date of the occurrence of
the breach or tort or 3 years after the date of the medical or
health care treatment that is the subject of the claim is
completed (whichever occurs first) except that actions by a
minor under the full age of 6 years shall be commenced within 3
years after the date of the occurrence of the breach or tort, 3
years after the date of the medical or health care treatment
that is the subject of the claim is completed, or 1 year after
the injury is discovered, or through the use of reasonable
diligence should have been discovered, or prior to the minor's
8th birthday, whichever provides a longer period. Such time
limitation shall be tolled for minors for any period during
which a parent or guardian and a health care provider have
committed fraud or collusion in the failure to bring an action
on behalf of the injured minor.
(b) State Flexibility.--No provision of subsection (a) shall be
construed to preempt any state law (whether effective before, on, or
after the date of the enactment of this Act) that--
(1) specifies a time period of less than 3 years after the
date of injury or less than 1 year after the claimant
discovers, or through the use of reasonable diligence should
have discovered, the injury, for the filing of a health care
lawsuit;
(2) that specifies a different time period for the filing
of lawsuits by a minor;
(3) that triggers the time period based on the date of the
alleged negligence; or
(4) establishes a statute of repose for the filing of
health care lawsuit.
SEC. 2903. COMPENSATING PATIENT INJURY.
(a) Unlimited Amount of Damages for Actual Economic Losses in
Health Care Lawsuits.--In any health care lawsuit, nothing in this
title shall limit a claimant's recovery of the full amount of the
available economic damages, notwithstanding the limitation in
subsection (b).
(b) Additional Noneconomic Damages.--In any health care lawsuit,
the amount of noneconomic damages, if available, shall not exceed
$250,000, regardless of the number of parties against whom the action
is brought or the number of separate claims or actions brought with
respect to the same injury.
(c) No Discount of Award for Noneconomic Damages.--For purposes of
applying the limitation in subsection (b), future noneconomic damages
shall not be discounted to present value. The jury shall not be
informed about the maximum award for noneconomic damages. An award for
noneconomic damages in excess of $250,000 shall be reduced either
before the entry of judgment, or by amendment of the judgment after
entry of judgment, and such reduction shall be made before accounting
for any other reduction in damages required by law. If separate awards
are rendered for past and future noneconomic damages and the combined
awards exceed $250,000, the future noneconomic damages shall be reduced
first.
(d) Fair Share Rule.--In any health care lawsuit, each party shall
be liable for that party's several share of any damages only and not
for the share of any other person. Each party shall be liable only for
the amount of damages allocated to such party in direct proportion to
such party's percentage of responsibility. Whenever a judgment of
liability is rendered as to any party, a separate judgment shall be
rendered against each such party for the amount allocated to such
party. For purposes of this section, the trier of fact shall determine
the proportion of responsibility of each party for the claimant's harm.
(e) State Flexibility.--No provision of this section shall be
construed to preempt any State law (whether effective before, on, or
after the date of the enactment of this Act) that specifies a
particular monetary amount of economic or noneconomic damages (or the
total amount of damages) that may be awarded in a health care lawsuit,
regardless of whether such monetary amount is greater or lesser than is
provided for under this section.
SEC. 2904. MAXIMIZING PATIENT RECOVERY.
(a) Court Supervision of Share of Damages Actually Paid to
Claimants.--In any health care lawsuit, the court shall supervise the
arrangements for payment of damages to protect against conflicts of
interest that may have the effect of reducing the amount of damages
awarded that are actually paid to claimants. In particular, in any
health care lawsuit in which the attorney for a party claims a
financial stake in the outcome by virtue of a contingent fee, the court
shall have the power to restrict the payment of a claimant's damage
recovery to such attorney, and to redirect such damages to the claimant
based upon the interests of justice and principles of equity. In no
event shall the total of all contingent fees for representing all
claimants in a health care lawsuit exceed the following limits:
(1) Forty percent of the first $50,000 recovered by the
claimant(s).
(2) Thirty-three and one-third percent of the next $50,000
recovered by the claimant(s).
(3) Twenty-five percent of the next $500,000 recovered by
the claimant(s).
(4) Fifteen percent of any amount by which the recovery by
the claimant(s) is in excess of $600,000.
(b) Applicability.--The limitations in this section shall apply
whether the recovery is by judgment, settlement, mediation,
arbitration, or any other form of alternative dispute resolution. In a
health care lawsuit involving a minor or incompetent person, a court
retains the authority to authorize or approve a fee that is less than
the maximum permitted under this section. The requirement for court
supervision in the first two sentences of subsection (a) applies only
in civil actions.
(c) State Flexibility.--No provision of this section shall be
construed to preempt any State law (whether effective before, on, or
after the date of the enactment of this Act) that specifies a lesser
percentage or lesser total value of damages which may be claimed by an
attorney representing a claimant in a health care lawsuit.
SEC. 2905. AUTHORIZATION OF PAYMENT OF FUTURE DAMAGES TO CLAIMANTS IN
HEALTH CARE LAWSUITS.
(a) In General.--In any health care lawsuit, if an award of future
damages, without reduction to present value, equaling or exceeding
$50,000 is made against a party with sufficient insurance or other
assets to fund a periodic payment of such a judgment, the court shall,
at the request of any party, enter a judgment ordering that the future
damages be paid by periodic payments, in accordance with the Uniform
Periodic Payment of Judgments Act promulgated by the National
Conference of Commissioners on Uniform State Laws.
(b) Applicability.--This section applies to all actions which have
not been first set for trial or retrial before the effective date of
this Act.
(c) State Flexibility.--No provision of this section shall be
construed to preempt any State law (whether effective before, on, or
after the date of the enactment of this Act) that specifies periodic
payments for future damages at any amount other than $50,000 or that
mandates such payments absent the request of either party.
SEC. 2906. PRODUCT LIABILITY FOR HEALTH CARE PROVIDERS.
A health care provider who prescribes, or who dispenses pursuant to
a prescription, a medical product approved, licensed, or cleared by the
Food and Drug Administration shall not be named as a party to a product
liability lawsuit involving such product and shall not be liable to a
claimant in a class action lawsuit against the manufacturer,
distributor, or seller of such product.
SEC. 2907. DEFINITIONS.
In this title:
(1) Alternative dispute resolution system; adr.--The term
``alternative dispute resolution system'' or ``ADR'' means a
system that provides for the resolution of health care lawsuits
in a manner other than through a civil action brought in a
State or Federal court.
(2) Claimant.--The term ``claimant'' means any person who
brings a health care lawsuit, including a person who asserts or
claims a right to legal or equitable contribution, indemnity,
or subrogation, arising out of a health care liability claim or
action, and any person on whose behalf such a claim is asserted
or such an action is brought, whether deceased, incompetent, or
a minor.
(3) Collateral source benefits.--The term ``collateral
source benefits'' means any amount paid or reasonably likely to
be paid in the future to or on behalf of the claimant, or any
service, product, or other benefit provided or reasonably
likely to be provided in the future to or on behalf of the
claimant, as a result of the injury or wrongful death, pursuant
to--
(A) any State or Federal health, sickness, income-
disability, accident, or workers' compensation law;
(B) any health, sickness, income-disability, or
accident insurance that provides health benefits or
income-disability coverage;
(C) any contract or agreement of any group,
organization, partnership, or corporation to provide,
pay for, or reimburse the cost of medical, hospital,
dental, or income-disability benefits; and
(D) any other publicly or privately funded program.
(4) Contingent fee.--The term ``contingent fee'' includes
all compensation to any person or persons which is payable only
if a recovery is effected on behalf of one or more claimants.
(5) Economic damages.--The term ``economic damages'' means
objectively verifiable monetary losses incurred as a result of
the provision or use of (or failure to provide or use) health
care services or medical products, such as past and future
medical expenses, loss of past and future earnings, cost of
obtaining domestic services, loss of employment, and loss of
business or employment opportunities, unless otherwise defined
under applicable state law. In no circumstances shall damages
for health care services or medical products exceed the amount
actually paid or incurred by or on behalf of the claimant.
(6) Future damages.--The term ``future damages'' means any
damages that are incurred after the date of judgment,
settlement, or other resolution (including mediation, or any
other form of alternative dispute resolution).
(7) Health care lawsuit.--The term ``health care lawsuit''
means any health care liability claim concerning the provision
of goods or services for which coverage was provided in whole
or in part via a Federal program, subsidy or tax benefit, or
any health care liability action concerning the provision of
goods or services for which coverage was provided in whole or
in part via a Federal program, subsidy or tax benefit, brought
in a State or Federal court or pursuant to an alternative
dispute resolution system, against a health care provider
regardless of the theory of liability on which the claim is
based, or the number of claimants, plaintiffs, defendants, or
other parties, or the number of claims or causes of action, in
which the claimant alleges a health care liability claim. Such
term does not include a claim or action which is based on
criminal liability; which seeks civil fines or penalties paid
to Federal, State, or local government; or which is grounded in
antitrust.
(8) Health care liability action.--The term ``health care
liability action'' means a civil action brought in a State or
Federal court or pursuant to an alternative dispute resolution
system, against a health care provider regardless of the theory
of liability on which the claim is based, or the number of
plaintiffs, defendants, or other parties, or the number of
causes of action, in which the claimant alleges a health care
liability claim.
(9) Health care liability claim.--The term ``health care
liability claim'' means a demand by any person, whether or not
pursuant to ADR, against a health care provider, including, but
not limited to, third-party claims, cross-claims, counter-
claims, or contribution claims, which are based upon the
provision or use of (or the failure to provide or use) health
care services or medical products, regardless of the theory of
liability on which the claim is based, or the number of
plaintiffs, defendants, or other parties, or the number of
causes of action.
(10) Health care provider.--The term ``health care
provider'' means any person or entity required by State or
Federal laws or regulations to be licensed, registered, or
certified to provide health care services, and being either so
licensed, registered, or certified, or exempted from such
requirement by other statute or regulation, as well as any
other individual or entity defined as a health care provider,
health care professional, or health care institution under
state law.
(11) Health care services.--The term ``health care
services'' means the provision of any goods or services
(including safety, professional, or administrative services
directly related to health care) by a health care provider, or
by any individual working under the supervision of a health
care provider, that relates to the diagnosis, prevention, or
treatment of any human disease or impairment, or the assessment
or care of the health of human beings.
(12) Medical product.--The term ``medical product'' means a
drug, device, or biological product intended for humans, and
the terms ``drug'', ``device'', and ``biological product'' have
the meanings given such terms in sections 201(g)(1) and 201(h)
of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321(g)(1)
and (h)) and section 351(a) of the Public Health Service Act
(42 U.S.C. 262(a)), respectively, including any component or
raw material used therein, but excluding health care services.
(13) Noneconomic damages.--The term ``noneconomic damages''
means damages for physical and emotional pain, suffering,
inconvenience, physical impairment, mental anguish,
disfigurement, loss of enjoyment of life, loss of society and
companionship, loss of consortium (other than loss of domestic
service), hedonic damages, injury to reputation, and all other
nonpecuniary losses of any kind or nature incurred as a result
of the provision or use of (or failure to provide or use)
health care services or medical products, unless otherwise
defined under applicable state law.
(14) Recovery.--The term ``recovery'' means the net sum
recovered after deducting any disbursements or costs incurred
in connection with prosecution or settlement of the claim,
including all costs paid or advanced by any person. Costs of
health care incurred by the plaintiff and the attorneys' office
overhead costs or charges for legal services are not deductible
disbursements or costs for such purpose.
(15) Representative.--The term ``representative'' means a
legal guardian, attorney, person designated to make decisions
on behalf of a patient under a medical power of attorney, or
any person recognized in law or custom as a patient's agent.
(16) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the Northern
Mariana Islands, the Trust Territory of the Pacific Islands,
and any other territory or possession of the United States, or
any political subdivision thereof.
SEC. 2908. EFFECT ON OTHER LAWS.
(a) Vaccine Injury.--
(1) To the extent that title XXI of the Public Health
Service Act establishes a Federal rule of law applicable to a
civil action brought for a vaccine-related injury or death--
(A) this title does not affect the application of
the rule of law to such an action; and
(B) any rule of law prescribed by this title in
conflict with a rule of law of such title XXI shall not
apply to such action.
(2) If there is an aspect of a civil action brought for a
vaccine-related injury or death to which a Federal rule of law
under title XXI of the Public Health Service Act does not
apply, then this title or otherwise applicable law (as
determined under this title) will apply to such aspect of such
action.
(b) Other Federal Law.--Except as provided in this section, nothing
in this title shall be deemed to affect any defense available to a
defendant in a health care lawsuit or action under any other provision
of Federal law.
SEC. 2909. RULES OF CONSTRUCTION.
(a) Health Care Lawsuits.--Unless otherwise specified in this
title, the provisions governing health care lawsuits set forth in this
title preempt, subject to subsections (b) and (c), State law to the
extent that State law prevents the application of any provisions of law
established by or under this title. The provisions governing health
care lawsuits set forth in this title supersede chapter 171 of title
28, United States Code, to the extent that such chapter--
(1) provides for a greater amount of damages or contingent
fees, a longer period in which a health care lawsuit may be
commenced, or a reduced applicability or scope of periodic
payment of future damages, than provided in this title; or
(2) prohibits the introduction of evidence regarding
collateral source benefits, or mandates or permits subrogation
or a lien on collateral source benefits.
(b) Protection of States' Rights and Other Laws.--Any issue that is
not governed by any provision of law established by or under this title
(including State standards of negligence) shall be governed by
otherwise applicable State or Federal law.
(c) State Flexibility.--No provision of this title shall be
construed to preempt any defense available to a party in a health care
lawsuit under any other provision of State or Federal law.
SEC. 2910. EFFECTIVE DATE.
This title shall apply to any health care lawsuit brought in a
Federal or State court, or subject to an alternative dispute resolution
system, that is initiated on or after the date of the enactment of this
Act, except that any health care lawsuit arising from an injury
occurring prior to the date of the enactment of this Act shall be
governed by the applicable statute of limitations provisions in effect
at the time the cause of action accrued.
SEC. 2911. LIMITATION ON EXPERT WITNESS TESTIMONY.
(a) In General.--No person in a health care profession requiring
licensure under the laws of a State shall be competent to testify in
any court of law to establish the following facts--
(1) the recognized standard of acceptable professional
practice and the specialty thereof, if any, that the defendant
practices, which shall be the type of acceptable professional
practice recognized in the defendant's community or in a
community similar to the defendant's community that was in
place at the time the alleged injury or wrongful action
occurred;
(2) that the defendant acted with less than or failed to
act with ordinary and reasonable care in accordance with the
recognized standard; and
(3) that as a proximate result of the defendant's negligent
act or omission, the claimant suffered injuries which would not
otherwise have occurred,
unless the person was licensed to practice, in the State or a
contiguous bordering State, a profession or specialty which would make
the person's expert testimony relevant to the issues in the case and
had practiced this profession or specialty in one of these States
during the year preceding the date that the alleged injury or wrongful
act occurred.
(b) Applicability.--The requirements set forth in subsection (a)
shall also apply to expert witnesses testifying for the defendant as
rebuttal witnesses.
(c) Waiver Authority.--The court may waive the requirements in this
subsection if it determines that the appropriate witnesses otherwise
would not be available.
SEC. 2912. COMMUNICATIONS FOLLOWING UNANTICIPATED OUTCOME.
(a) Provider Communications.--In any health care liability action,
any and all statements, affirmations, gestures, or conduct expressing
apology, fault, sympathy, commiseration, condolence, compassion, or a
general sense of benevolence which are made by a health care provider
or an employee of a health care provider to the patient, a relative of
the patient, or a representative of the patient and which relate to the
discomfort, pain, suffering, injury, or death of the patient as the
result of the unanticipated outcome of medical care shall be
inadmissible for any purpose as evidence of an admission of liability
or as evidence of an admission against interest.
(b) State Flexibility.--No provision of this section shall be
construed to preempt any State law (whether effective before, on, or
after the date of the enactment of this Act) that makes additional
communications inadmissible as evidence of an admission of liability or
as evidence of an admission against interest.
SEC. 2913. EXPERT WITNESS QUALIFICATIONS.
(a) In General.--In any health care lawsuit, an individual shall
not give expert testimony on the appropriate standard of practice or
care involved unless the individual is licensed as a health
professional in one or more States and the individual meets the
following criteria:
(1) If the party against whom or on whose behalf the
testimony is to be offered is or claims to be a specialist, the
expert witness shall specialize at the time of the occurrence
that is the basis for the lawsuit in the same specialty or
claimed specialty as the party against whom or on whose behalf
the testimony is to be offered. If the party against whom or on
whose behalf the testimony is to be offered is or claims to be
a specialist who is board certified, the expert witness shall
be a specialist who is board certified in that specialty or
claimed specialty.
(2) During the 1-year period immediately preceding the
occurrence of the action that gave rise to the lawsuit, the
expert witness shall have devoted a majority of the
individual's professional time to one or more of the following:
(A) The active clinical practice of the same health
profession as the defendant and, if the defendant is or
claims to be a specialist, in the same specialty or
claimed specialty.
(B) The instruction of students in an accredited
health professional school or accredited residency or
clinical research program in the same health profession
as the defendant and, if the defendant is or claims to
be a specialist, in an accredited health professional
school or accredited residency or clinical research
program in the same specialty or claimed specialty.
(3) If the defendant is a general practitioner, the expert
witness shall have devoted a majority of the witness's
professional time in the 1-year period preceding the occurrence
of the action giving rise to the lawsuit to one or more of the
following:
(A) Active clinical practice as a general
practitioner.
(B) Instruction of students in an accredited health
professional school or accredited residency or clinical
research program in the same health profession as the
defendant.
(b) Lawsuits Against Entities.--If the defendant in a health care
lawsuit is an entity that employs a person against whom or on whose
behalf the testimony is offered, the provisions of subsection (a) apply
as if the person were the party or defendant against whom or on whose
behalf the testimony is offered.
(c) Power of Court.--Nothing in this subsection shall limit the
power of the trial court in a health care lawsuit to disqualify an
expert witness on grounds other than the qualifications set forth under
this subsection.
(d) Limitation.--An expert witness in a health care lawsuit shall
not be permitted to testify if the fee of the witness is in any way
contingent on the outcome of the lawsuit.
(e) State Flexibility.--No provision of this section shall be
construed to preempt any State law (whether effective before, on, or
after the date of the enactment of this Act) that places additional
qualification requirements upon any individual testifying as an expert
witness.
SEC. 2914. AFFIDAVIT OF MERIT.
(a) Required Filing.--Subject to subsection (b), the plaintiff in a
health care lawsuit alleging negligence or, if the plaintiff is
represented by an attorney, the plaintiff's attorney shall file
simultaneously with the health care lawsuit an affidavit of merit
signed by a health professional who meets the requirements for an
expert witness under section 2913 of this title. The affidavit of merit
shall certify that the health professional has reviewed the notice and
all medical records supplied to him or her by the plaintiff's attorney
concerning the allegations contained in the notice and shall contain a
statement of each of the following:
(1) The applicable standard of practice or care.
(2) The health professional's opinion that the applicable
standard of practice or care was breached by the health
professional or health facility receiving the notice.
(3) The actions that should have been taken or omitted by
the health professional or health facility in order to have
complied with the applicable standard of practice or care.
(4) The manner in which the breach of the standard of
practice or care was the proximate cause of the injury alleged
in the notice.
(5) A listing of the medical records reviewed.
(b) Filing Extension.--Upon motion of a party for good cause shown,
the court in which the complaint is filed may grant the plaintiff or,
if the plaintiff is represented by an attorney, the plaintiff's
attorney an additional 28 days in which to file the affidavit required
under subsection (a).
(c) State Flexibility.--No provision of this section shall be
construed to preempt any State law (whether effective before, on, or
after the date of the enactment of this Act) that establishes
additional requirements for the filing of an affidavit of merit or
similar pre-litigation documentation.
SEC. 2915. NOTICE OF INTENT TO COMMENCE LAWSUIT.
(a) Advance Notice.--A person shall not commence a health care
lawsuit against a health care provider unless the person has given the
health care provider 90 days written notice before the action is
commenced.
(b) Exceptions.--A health care lawsuit against a health care
provider filed within 6 months of the statute of limitations expiring
as to any claimant, or within 1 year of the statute of repose expiring
as to any claimant, shall be exempt from compliance with this section.
(c) State Flexibility.--No provision of this section shall be
construed to preempt any State law (whether effective before, on, or
after the date of the enactment of this Act) that establishes a
different time period for the filing of written notice.
TITLE XXX--CONSOLIDATION OF FEDERAL WELFARE PROGRAMS
SEC. 3001. SENSE OF CONGRESS.
It is the sense of Congress that all welfare programs should be
under the jurisdiction of a single House committee and a single Senate
committee. Furthermore, welfare programs should be prioritized, based
on their efficacy, with the objective of eliminating programs that
aren't working and retaining those that are.
DIVISION B--FAIR TAX ACT
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``FairTax Act of
2019''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Congressional findings.
TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT
TAXES
Sec. 101. Income taxes repealed.
Sec. 102. Payroll taxes repealed.
Sec. 103. Estate and gift taxes repealed.
Sec. 104. Conforming amendments; effective date.
TITLE II--SALES TAX ENACTED
Sec. 201. Sales tax.
Sec. 202. Conforming and technical amendments.
TITLE III--OTHER MATTERS
Sec. 301. Phase-out of administration of repealed Federal taxes.
Sec. 302. Administration of other Federal taxes.
Sec. 303. Sales tax inclusive Social Security benefits indexation.
TITLE IV--SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED
Sec. 401. Elimination of sales tax if Sixteenth Amendment not repealed.
SEC. 2. CONGRESSIONAL FINDINGS.
(a) Findings Relating to Federal Income Tax.--Congress finds the
Federal income tax--
(1) retards economic growth and has reduced the standard of
living of the American public;
(2) impedes the international competitiveness of United
States industry;
(3) reduces savings and investment in the United States by
taxing income multiple times;
(4) slows the capital formation necessary for real wages to
steadily increase;
(5) lowers productivity;
(6) imposes unacceptable and unnecessary administrative and
compliance costs on individual and business taxpayers;
(7) is unfair and inequitable;
(8) unnecessarily intrudes upon the privacy and civil
rights of United States citizens;
(9) hides the true cost of government by embedding taxes in
the costs of everything Americans buy;
(10) is not being complied with at satisfactory levels and
therefore raises the tax burden on law abiding citizens; and
(11) impedes upward social mobility.
(b) Findings Relating to Federal Payroll Taxes.--Congress finds
further that the Social Security and Medicare payroll taxes and self-
employment taxes--
(1) raise the cost of employment;
(2) destroy jobs and cause unemployment; and
(3) have a disproportionately adverse impact on lower
income Americans.
(c) Findings Relating to Federal Estate and Gift Taxes.--Congress
finds further that the Federal estate and gift taxes--
(1) force family businesses and farms to be sold by the
family to pay such taxes;
(2) discourage capital formation and entrepreneurship;
(3) foster the continued dominance of large enterprises
over small family-owned companies and farms; and
(4) impose unacceptably high tax planning costs on small
businesses and farms.
(d) Findings Relating to National Sales Tax.--Congress finds
further that a broad-based national sales tax on goods and services
purchased for final consumption--
(1) is similar in many respects to the sales and use taxes
in place in 45 of the 50 States;
(2) will promote savings and investment;
(3) will promote fairness;
(4) will promote economic growth;
(5) will raise the standard of living;
(6) will increase investment;
(7) will enhance productivity and international
competitiveness;
(8) will reduce administrative burdens on the American
taxpayer;
(9) will improve upward social mobility; and
(10) will respect the privacy interests and civil rights of
taxpayers.
(e) Findings Relating to Administration of National Sales Tax.--
Congress further finds that--
(1) most of the practical experience administering sales
taxes is found at the State governmental level;
(2) it is desirable to harmonize Federal and State
collection and enforcement efforts to the maximum extent
possible;
(3) it is sound tax administration policy to foster
administration and collection of the Federal sales tax at the
State level in return for a reasonable administration fee to
the States; and
(4) businesses that must collect and remit taxes should
receive reasonable compensation for the cost of doing so.
(f) Findings Relating to Repeal of Present Federal Tax System.--
Congress further finds that the 16th Amendment to the United States
Constitution should be repealed.
TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT
TAXES
SEC. 101. INCOME TAXES REPEALED.
Subtitle A of the Internal Revenue Code of 1986 (relating to income
taxes and self-employment taxes) is repealed.
SEC. 102. PAYROLL TAXES REPEALED.
(a) In General.--Subtitle C of the Internal Revenue Code of 1986
(relating to payroll taxes and withholding of income taxes) is
repealed.
(b) Funding of Social Security.--For funding of the Social Security
Trust Funds from general revenue, see section 201 of the Social
Security Act (42 U.S.C. 401).
SEC. 103. ESTATE AND GIFT TAXES REPEALED.
Subtitle B of the Internal Revenue Code of 1986 (relating to estate
and gift taxes) is repealed.
SEC. 104. CONFORMING AMENDMENTS; EFFECTIVE DATE.
(a) Conforming Amendments.--The Internal Revenue Code of 1986 is
amended--
(1) by striking subtitle H (relating to financing of
Presidential election campaigns); and
(2) by redesignating--
(A) subtitle D (relating to miscellaneous excise
taxes) as subtitle B;
(B) subtitle E (relating to alcohol, tobacco, and
certain other excise taxes) as subtitle C;
(C) subtitle F (relating to procedure and
administration) as subtitle D;
(D) subtitle G (relating to the Joint Committee on
Taxation) as subtitle E;
(E) subtitle I (relating to the Trust Fund Code) as
subtitle F;
(F) subtitle J (relating to coal industry health
benefits) as subtitle G; and
(G) subtitle K (relating to group health plan
portability, access, and renewability requirements) as
subtitle H.
(b) Redesignation of 1986 Code.--
(1) In general.--The Internal Revenue Code of 1986 enacted
on October 22, 1986, as heretofore, hereby, or hereafter
amended, may be cited as the Internal Revenue Code of 2019.
(2) References in laws, etc.--Except when inappropriate,
any reference in any law, Executive order, or other document--
(A) to the Internal Revenue Code of 1986 shall
include a reference to the Internal Revenue Code of
2019; and
(B) to the Internal Revenue Code of 2019 shall
include a reference to the provisions of law formerly
known as the Internal Revenue Code of 1986.
(c) Additional Amendments.--For additional conforming amendments,
see section 202 of this Act.
(d) Effective Date.--Except as otherwise provided in this Act, the
amendments made by this Act shall take effect on January 1, 2021.
TITLE II--SALES TAX ENACTED
SEC. 201. SALES TAX.
(a) In General.--The Internal Revenue Code of 2019 is amended by
inserting before subtitle B (as redesignated by section 104(a)(2)(A))
the following new subtitle:
``Subtitle A--Sales Tax
``Sec. 1. Principles of interpretation.
``Sec. 2. Definitions.
``Chapter 1. Interpretation; Definitions; Imposition of Tax; etc.
``Chapter 2. Credits; Refunds
``Chapter 3. Family Consumption Allowance
``Chapter 4. Federal and State Cooperative Tax Administration
``Chapter 5. Other Administrative Provisions
``Chapter 6. Collections; Appeals; Taxpayer Rights
``Chapter 7. Special Rules
``Chapter 8. Financial Intermediation Services
``Chapter 9. Additional Matters
``SEC. 1. PRINCIPLES OF INTERPRETATION.
``(a) In General.--Any court, the Secretary, and any sales tax
administering authority shall consider the purposes of this subtitle
(as set forth in subsection (b)) as the primary aid in statutory
construction.
``(b) Purposes.--The purposes of this subtitle are as follows:
``(1) To raise revenue needed by the Federal Government in
a manner consistent with the other purposes of this subtitle.
``(2) To tax all consumption of goods and services in the
United States once, without exception, but only once.
``(3) To prevent double, multiple, or cascading taxation.
``(4) To simplify the tax law and reduce the administration
costs of, and the costs of compliance with, the tax law.
``(5) To provide for the administration of the tax law in a
manner that respects privacy, due process, individual rights
when interacting with the government, the presumption of
innocence in criminal proceedings, and the presumption of
lawful behavior in civil proceedings.
``(6) To increase the role of State governments in Federal
tax administration because of State government expertise in
sales tax administration.
``(7) To enhance generally cooperation and coordination
among State tax administrators; and to enhance cooperation and
coordination among Federal and State tax administrators,
consistent with the principle of intergovernmental tax
immunity.
``(c) Secondary Aids to Statutory Construction.--As a secondary aid
in statutory construction, any court, the Secretary, and any sales tax
administering authority shall consider--
``(1) the common law canons of statutory construction,
``(2) the meaning and construction of concepts and terms
used in the Internal Revenue Code of 1986 as in effect before
the effective date of this subtitle, and
``(3) construe any ambiguities in this Act in favor of
reserving powers to the States respectively, or to the people.
``SEC. 2. DEFINITIONS.
``(a) In General.--For purposes of this subtitle--
``(1) Affiliated firms.--A firm is affiliated with another
if 1 firm owns 50 percent or more of--
``(A) the voting shares in a corporation, or
``(B) the capital interests of a business firm that
is not a corporation.
``(2) Conforming state sales tax.--The term `conforming
State sales tax' means a sales tax imposed by a State that
adopts the same definition of taxable property and services as
adopted by this subtitle.
``(3) Designated commercial private courier service.--The
term `designated commercial private courier service' means a
firm designated as such by the Secretary or any sales tax
administering authority, upon application of the firm, if the
firm--
``(A) provides its services to the general public,
``(B) records electronically to its data base kept
in the regular course of its business the date on which
an item was given to such firm for delivery, and
``(C) has been operating for at least 1 year.
``(4) Education and training.--The term `education and
training' means tuition for primary, secondary, or
postsecondary level education, and job-related training
courses. Such term does not include room, board, sports
activities, recreational activities, hobbies, games, arts or
crafts or cultural activities.
``(5) Gross payments.--The term `gross payments' means
payments for taxable property or services, including Federal
taxes imposed by this title.
``(6) Intangible property.--
``(A) In general.--The term `intangible property'
includes copyrights, trademarks, patents, goodwill,
financial instruments, securities, commercial paper,
debts, notes and bonds, and other property deemed
intangible at common law. The Secretary shall, by
regulation resolve differences among the provisions of
common law of the several States.
``(B) Certain types of property.--Such term does
not include tangible personal property (or rents or
leaseholds of any term thereon), real property (or
rents or leaseholds of any term thereon) and computer
software.
``(7) Person.--The term `person' means any natural person,
and unless the context clearly does not allow it, any
corporation, partnership, limited liability company, trust,
estate, government, agency, administration, organization,
association, or other legal entity (foreign or domestic).
``(8) Produce, provide, render, or sell taxable property or
services.--
``(A) In general.--A taxable property or service is
used to produce, provide, render, or sell a taxable
property or service if such property or service is
purchased by a person engaged in a trade or business
for the purpose of employing or using such taxable
property or service in the production, provision,
rendering, or sale of other taxable property or
services in the ordinary course of that trade or
business.
``(B) Research, experimentation, testing, and
development.--Taxable property or services used in a
trade or business for the purpose of research,
experimentation, testing, and development shall be
treated as used to produce, provide, render, or sell
taxable property or services.
``(C) Insurance payments.--Taxable property or
services purchased by an insurer on behalf of an
insured shall be treated as used to produce, provide,
render, or sell taxable property or services if the
premium for the insurance contract giving rise to the
insurer's obligation was subject to tax pursuant to
section 801 (relating to financial intermediation
services).
``(D) Education and training.--Education and
training shall be treated as services used to produce,
provide, render, or sell taxable property or services.
``(9) Registered seller.--The term `registered seller'
means a person registered pursuant to section 502.
``(10) Sales tax administering authority.--The term `sales
tax administering authority' means--
``(A) the State agency designated to collect and
administer the sales tax imposed by this subtitle, in
an administering State, or
``(B) the Secretary, in a State that is neither--
``(i) an administering State, nor
``(ii) a State that has elected to have its
sales tax administered by an administering
State.
``(11) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(12) Taxable employer.--
``(A) In general.--The term `taxable employer'
includes--
``(i) any household employing domestic
servants, and
``(ii) any government except for government
enterprises (as defined in section 704).
``(B) Exceptions.--The term `taxable employer' does
not include any employer which is--
``(i) engaged in a trade or business,
``(ii) a not-for-profit organization (as
defined in section 706), or
``(iii) a government enterprise (as defined
in section 704).
``(C) Cross reference.--For rules relating to
collection and remittance of tax on wages by taxable
employers, see section 103(b)(2).
``(13) Tax inclusive fair market value.--The term `tax
inclusive fair market value' means the fair market value of
taxable property or services plus the tax imposed by this
subtitle.
``(14) Taxable property or service.--
``(A) General rule.--The term `taxable property or
service' means--
``(i) any property (including leaseholds of
any term or rents with respect to such
property) but excluding--
``(I) intangible property, and
``(II) used property, and
``(ii) any service (including any financial
intermediation services as determined by
section 801).
``(B) Service.--For purposes of subparagraph (A),
the term `service'--
``(i) shall include any service performed
by an employee for which the employee is paid
wages or a salary by a taxable employer, and
``(ii) shall not include any service
performed by an employee for which the employee
is paid wages or a salary--
``(I) by an employer in the regular
course of the employer's trade or
business,
``(II) by an employer that is a
not-for-profit organization (as defined
in section 706),
``(III) by an employer that is a
government enterprise (as defined in
section 704), and
``(IV) by taxable employers to
employees directly providing education
and training.
``(15) United states.--The term `United States', when used
in the geographical sense, means each of the 50 States, the
District of Columbia, and any commonwealth, territory, or
possession of the United States.
``(16) Used property.--The term `used property' means--
``(A) property on which the tax imposed by section
101 has been collected and for which no credit has been
allowed under section 202, 203, or 205, or
``(B) property that was held other than for a
business purpose (as defined in section 102(b)) on
December 31, 2020.
``(17) Wages and salary.--The terms `wage' and `salary'
mean all compensation paid for employment service including
cash compensation, employee benefits, disability insurance, or
wage replacement insurance payments, unemployment compensation
insurance, workers' compensation insurance, and the fair market
value of any other consideration paid by an employer to an
employee in consideration for employment services rendered.
``(b) Cross References.--
``(1) For the definition of business purposes, see section
102(b).
``(2) For the definition of insurance contract, see section
206(e).
``(3) For the definition of qualified family, see section
302.
``(4) For the definition of monthly poverty level, see
section 303.
``(5) For the definition of large seller, see section
501(e)(3).
``(6) For the definition of hobby activities, see section
701.
``(7) For the definition of gaming sponsor, see section
701(a).
``(8) For the definition of a chance, see section 701(b).
``(9) For the definition of government enterprise, see
section 704(b).
``(10) For the definition of mixed use property, see
section 705.
``(11) For the definition of qualified not-for-profit
organization, see section 706.
``(12) For the definition of financial intermediation
services, see section 801.
``CHAPTER 1--INTERPRETATION; DEFINITIONS; IMPOSITION OF TAX; ETC.
``Sec. 101. Imposition of sales tax.
``Sec. 102. Intermediate and export sales.
``Sec. 103. Rules relating to collection and remittance of tax.
``SEC. 101. IMPOSITION OF SALES TAX.
``(a) In General.--There is hereby imposed a tax on the use or
consumption in the United States of taxable property or services.
``(b) Rate.--
``(1) For 2021.--In the calendar year 2021, the rate of tax
is 23 percent of the gross payments for the taxable property or
service.
``(2) For years after 2021.--For years after the calendar
year 2021, the rate of tax is the combined Federal tax rate
percentage (as defined in paragraph (3)) of the gross payments
for the taxable property or service.
``(3) Combined federal tax rate percentage.--The combined
Federal tax rate percentage is the sum of--
``(A) the general revenue rate (as defined in
paragraph (4)),
``(B) the old-age, survivors and disability
insurance rate, and
``(C) the hospital insurance rate.
``(4) General revenue rate.--The general revenue rate shall
be 14.91 percent.
``(c) Coordination With Import Duties.--The tax imposed by this
section is in addition to any import duties imposed by chapter 4 of
title 19, United States Code. The Secretary shall provide by regulation
that, to the maximum extent practicable, the tax imposed by this
section on imported taxable property and services is collected and
administered in conjunction with any applicable import duties imposed
by the United States.
``(d) Liability for Tax.--
``(1) In general.--The person using or consuming taxable
property or services in the United States is liable for the tax
imposed by this section, except as provided in paragraph (2) of
this subsection.
``(2) Exception where tax paid to seller.--A person using
or consuming a taxable property or service in the United States
is not liable for the tax imposed by this section if the person
pays the tax to a person selling the taxable property or
service and receives from such person a purchaser's receipt
within the meaning of section 509.
``SEC. 102. INTERMEDIATE AND EXPORT SALES.
``(a) In General.--For purposes of this subtitle--
``(1) Business and export purposes.--No tax shall be
imposed under section 101 on any taxable property or service
purchased for a business purpose in a trade or business.
``(2) Investment purpose.--No tax shall be imposed under
section 101 on any taxable property or service purchased for an
investment purpose and held exclusively for an investment
purpose.
``(3) State government functions.--No tax shall be imposed
under section 101 on State government functions that do not
constitute the final consumption of property or services.
``(b) Business Purposes.--For purposes of this section, the term
`purchased for a business purpose in a trade or business' means
purchased by a person engaged in a trade or business and used in that
trade or business--
``(1) for resale,
``(2) to produce, provide, render, or sell taxable property
or services, or
``(3) in furtherance of other bona fide business purposes.
``(c) Investment Purposes.--For purposes of this section, the term
`purchased for an investment purpose' means property purchased
exclusively for purposes of appreciation or the production of income
but not entailing more than minor personal efforts.
``SEC. 103. RULES RELATING TO COLLECTION AND REMITTANCE OF TAX.
``(a) Liability for Collection and Remittance of the Tax.--Except
as provided otherwise by this section, any tax imposed by this subtitle
shall be collected and remitted by the seller of taxable property or
services (including financial intermediation services).
``(b) Tax To Be Remitted by Purchaser in Certain Circumstances.--
``(1) In general.--In the case of taxable property or
services purchased outside of the United States and imported
into the United States for use or consumption in the United
States, the purchaser shall remit the tax imposed by section
101.
``(2) Certain wages or salary.--In the case of wages or
salary paid by a taxable employer which are taxable services,
the employer shall remit the tax imposed by section 101.
``(c) Conversion of Business or Export Property or Services.--
Property or services purchased for a business purpose in a trade or
business or for export (sold untaxed pursuant to section 102(a)) that
is subsequently converted to personal use shall be deemed purchased at
the time of conversion and shall be subject to the tax imposed by
section 101 at the fair market value of the converted property as of
the date of conversion. The tax shall be due as if the property had
been sold at the fair market value during the month of conversion. The
person using or consuming the converted property is liable for and
shall remit the tax.
``(d) Barter Transactions.--If gross payment for taxable property
or services is made in other than money, then the person responsible
for collecting and remitting the tax shall remit the tax to the sales
tax administering authority in money as if gross payment had been made
in money at the tax inclusive fair market value of the taxable property
or services purchased.
``CHAPTER 2--CREDITS; REFUNDS
``Sec. 201. Credits and refunds.
``Sec. 202. Business use conversion credit.
``Sec. 203. Intermediate and export sales credit.
``Sec. 204. Administration credit.
``Sec. 205. Bad debt credit.
``Sec. 206. Insurance proceeds credit.
``Sec. 207. Refunds.
``SEC. 201. CREDITS AND REFUNDS.
``(a) In General.--Each person shall be allowed a credit with
respect to the taxes imposed by section 101 for each month in an amount
equal to the sum of--
``(1) such person's business use conversion credit pursuant
to section 202 for such month,
``(2) such person's intermediate and export sales credit
pursuant to section 203 for such month,
``(3) the administration credit pursuant to section 204 for
such month,
``(4) the bad debt credit pursuant to section 205 for such
month,
``(5) the insurance proceeds credit pursuant to section 206
for such month,
``(6) the transitional inventory credit pursuant to section
902, and
``(7) any amount paid in excess of the amount due.
``(b) Credits Not Additive.--Only one credit allowed by chapter 2
may be taken with respect to any particular gross payment.
``SEC. 202. BUSINESS USE CONVERSION CREDIT.
``(a) In General.--For purposes of section 201, a person's business
use conversion credit for any month is the aggregate of the amounts
determined under subsection (b) with respect to taxable property and
services--
``(1) on which tax was imposed by section 101 (and actually
paid), and
``(2) which commenced to be 95 percent or more used during
such month for business purposes (within the meaning of section
102(b)).
``(b) Amount of Credit.--The amount determined under this paragraph
with respect to any taxable property or service is the lesser of--
``(1) the product of--
``(A) the rate imposed by section 101, and
``(B) the quotient that is--
``(i) the fair market value of the property
or service when its use is converted, divided
by
``(ii) the quantity that is one minus the
tax rate imposed by section 101, or
``(2) the amount of tax paid with respect to such taxable
property or service, including the amount, if any, determined
in accordance with section 705 (relating to mixed use
property).
``SEC. 203. INTERMEDIATE AND EXPORT SALES CREDIT.
``For purposes of section 201, a person's intermediate and export
sales credit is the amount of sales tax paid on the purchase of any
taxable property or service purchased for--
``(1) a business purpose in a trade or business (as defined
in section 102(b)), or
``(2) export from the United States for use or consumption
outside the United States.
``SEC. 204. ADMINISTRATION CREDIT.
``(a) In General.--Every person filing a timely monthly report
(with regard to extensions) in compliance with section 501 shall be
entitled to a taxpayer administrative credit equal to the greater of--
``(1) $200, or
``(2) one-quarter of 1 percent of the tax remitted.
``(b) Limitation.--The credit allowed under this section shall not
exceed 20 percent of the tax due to be remitted prior to the
application of any credit or credits permitted by section 201.
``SEC. 205. BAD DEBT CREDIT.
``(a) Financial Intermediation Services.--Any person who has
experienced a bad debt (other than unpaid invoices within the meaning
of subsection (b)) shall be entitled to a credit equal to the product
of--
``(1) the rate imposed by section 101, and
``(2) the quotient that is--
``(A) the amount of the bad debt (as defined in
section 802), divided by
``(B) the quantity that is one minus the rate
imposed by section 101.
``(b) Unpaid Invoices.--Any person electing the accrual method
pursuant to section 503 that has with respect to a transaction--
``(1) invoiced the tax imposed by section 101,
``(2) remitted the invoiced tax,
``(3) actually delivered the taxable property or performed
the taxable services invoiced, and
``(4) not been paid 180 days after date the invoice was due
to be paid,
shall be entitled to a credit equal to the amount of tax remitted and
unpaid by the purchaser.
``(c) Subsequent Payment.--Any payment made with respect to a
transaction subsequent to a section 205 credit being taken with respect
to that transaction shall be subject to tax in the month the payment
was received as if a tax inclusive sale of taxable property and
services in the amount of the payment had been made.
``(d) Partial Payments.--Partial payments shall be treated as pro
rata payments of the underlying obligation and shall be allocated
proportionately--
``(1) for fully taxable payments, between payment for the
taxable property and service and tax, and
``(2) for partially taxable payments, among payment for the
taxable property and service, tax and other payment.
``(e) Related Parties.--The credit provided by this section shall
not be available with respect to sales made to related parties. For
purposes of this section, related party means affiliated firms and
family members (as defined in section 302(b)).
``SEC. 206. INSURANCE PROCEEDS CREDIT.
``(a) In General.--A person receiving a payment from an insurer by
virtue of an insurance contract shall be entitled to a credit in an
amount determined by subsection (b), less any amount paid to the
insured by the insurer pursuant to subsection (c), if the entire
premium (except that portion allocable to the investment account of the
underlying policy) for the insurance contract giving rise to the
insurer's obligation to make a payment to the insured was subject to
the tax imposed by section 101 and said tax was paid.
``(b) Credit Amount.--The amount of the credit shall be the product
of--
``(1) the rate imposed by section 101, and
``(2) the quotient that is--
``(A) the amount of the payment made by the insurer
to the insured, divided by
``(B) the quantity that is one minus the rate
imposed by section 101.
``(c) Administrative Option.--The credit determined in accordance
with subsection (b) shall be paid by the insurer to the insured and the
insurer shall be entitled to the credit in lieu of the insured, except
that the insurer may elect, in a form prescribed by the Secretary, to
not pay the credit and require the insured to make application for the
credit. In the event of such election, the insurer shall provide to the
Secretary and the insured the name and tax identification number of the
insurer and of the insured and indicate the proper amount of the
credit.
``(d) Coordination With Respect to Exemption.--If taxable property
or services purchased by an insurer on behalf of an insured are
purchased free of tax by virtue of section 2(a)(8)(C), then the credit
provided by this section shall not be available with respect to that
purchase.
``(e) Insurance Contract.--For purposes of subsection (a), the term
`insurance contract' shall include a life insurance contract, a health
insurance contract, a property and casualty loss insurance contract, a
general liability insurance contract, a marine insurance contract, a
fire insurance contract, an accident insurance contract, a disability
insurance contract, a long-term care insurance contract, and an
insurance contract that provides a combination of these types of
insurance.
``SEC. 207. REFUNDS.
``(a) Registered Sellers.--If a registered seller files a monthly
tax report with an overpayment, then, upon application by the
registered seller in a form prescribed by the sales tax administering
authority, the overpayment shown on the report shall be refunded to the
registered seller within 60 days of receipt of said application. In the
absence of such application, the overpayment may be carried forward,
without interest, by the person entitled to the credit.
``(b) Other Persons.--If a person other than a registered seller
has an overpayment for any month, then, upon application by the person
in a form prescribed by the sales tax administering authority, the
credit balance due shall be refunded to the person within 60 days of
receipt of said application.
``(c) Interest.--No interest shall be paid on any balance due from
the sales tax administering authority under this subsection for any
month if such balance due is paid within 60 days after the application
for refund is received. Balances due not paid within 60 days after the
application for refund is received shall bear interest from the date of
application. Interest shall be paid at the Federal short-term rate (as
defined in section 511).
``(d) Suspension of Period To Pay Refund Only if Federal or State
Court Ruling.--The 60-day periods under subsections (a) and (b) shall
be suspended with respect to a purported overpayment (or portion
thereof) only during any period that there is in effect a preliminary,
temporary, or final ruling from a Federal or State court that there is
reasonable cause to believe that such overpayment may not actually be
due.
``CHAPTER 3--FAMILY CONSUMPTION ALLOWANCE
``Sec. 301. Family consumption allowance.
``Sec. 302. Qualified family.
``Sec. 303. Monthly poverty level.
``Sec. 304. Rebate mechanism.
``Sec. 305. Change in family circumstances.
``SEC. 301. FAMILY CONSUMPTION ALLOWANCE.
``Each qualified family shall be eligible to receive a sales tax
rebate each month. The sales tax rebate shall be in an amount equal to
the product of--
``(1) the rate of tax imposed by section 101, and
``(2) the monthly poverty level.
``SEC. 302. QUALIFIED FAMILY.
``(a) General Rule.--For purposes of this chapter, the term
`qualified family' shall mean one or more family members sharing a
common residence. All family members sharing a common residence shall
be considered as part of one qualified family.
``(b) Family Size Determination.--
``(1) In general.--To determine the size of a qualified
family for purposes of this chapter, family members shall
mean--
``(A) an individual,
``(B) the individual's spouse,
``(C) all lineal ancestors and descendants of said
individual (and such individual's spouse),
``(D) all legally adopted children of such
individual (and such individual's spouse), and
``(E) all children under legal guardianship of such
individual (or such individual's spouse).
``(2) Identification requirements.--In order for a person
to be counted as a member of the family for purposes of
determining the size of the qualified family, such person
must--
``(A) have a bona fide Social Security number, and
``(B) be a lawful resident of the United States.
``(c) Children Living Away From Home.--
``(1) Students living away from home.--Any person who was a
registered student during not fewer than 5 months in a calendar
year while living away from the common residence of a qualified
family but who receives over 50 percent of such person's
support during a calendar year from members of the qualified
family shall be included as part of the family unit whose
members provided said support for purposes of this chapter.
``(2) Children of divorced or separated parents.--If a
child's parents are divorced or legally separated, a child for
purposes of this chapter shall be treated as part of the
qualified family of the custodial parent. In cases of joint
custody, the custodial parent for purposes of this chapter
shall be the parent that has custody of the child for more than
one-half of the time during a given calendar year. A parent
entitled to be treated as the custodial parent pursuant to this
paragraph may release this claim to the other parent if said
release is in writing.
``(d) Annual Registration.--In order to receive the family
consumption allowance provided by section 301, a qualified family must
register with the sales tax administering authority in a form
prescribed by the Secretary. The annual registration form shall
provide--
``(1) the name of each family member who shared the
qualified family's residence on the family determination date,
``(2) the Social Security number of each family member on
the family determination date who shared the qualified family's
residence on the family determination date,
``(3) the family member or family members to whom the
family consumption allowance should be paid,
``(4) a certification that all listed family members are
lawful residents of the United States,
``(5) a certification that all family members sharing the
common residence are listed,
``(6) a certification that no family members were
incarcerated on the family determination date (within the
meaning of subsection (l)), and
``(7) the address of the qualified family.
Said registration shall be signed by all members of the qualified
family that have attained the age of 21 years as of the date of filing.
``(e) Registration Not Mandatory.--Registration is not mandatory
for any qualified family.
``(f) Effect of Failure To Provide Annual Registration.--Any
qualified family that fails to register in accordance with this section
within 30 days of the family determination date, shall cease receiving
the monthly family consumption allowance in the month beginning 90 days
after the family determination date.
``(g) Effect of Curing Failure To Provide Annual Registration.--Any
qualified family that failed to timely make its annual registration in
accordance with this section but subsequently cures its failure to
register, shall be entitled to up to 6 months of lapsed sales tax
rebate payments. No interest on lapsed payment amount shall be paid.
``(h) Effective Date of Annual Registrations.--Annual registrations
shall take effect for the month beginning 90 days after the family
registration date.
``(i) Effective Date of Revised Registrations.--A revised
registration made pursuant to section 305 shall take effect for the
first month beginning 60 days after the revised registration was filed.
The existing registration shall remain in effect until the effective
date of the revised registration.
``(j) Determination of Registration Filing Date.--An annual or
revised registration shall be deemed filed when--
``(1) deposited in the United States mail, postage prepaid,
to the address of the sales tax administering authority,
``(2) delivered and accepted at the offices of the sales
tax administering authority, or
``(3) provided to a designated commercial private courier
service for delivery within 2 days to the sales tax
administering authority at the address of the sales tax
administering authority.
``(k) Proposed Registration To Be Provided.--Thirty or more days
before the family registration date, the sales tax administering
authority shall mail to the address shown on the most recent rebate
registration or change of address notice filed pursuant to section
305(d) a proposed registration that may be simply signed by the
appropriate family members if family circumstances have not changed.
``(l) Incarcerated Individuals.--An individual shall not be
eligible under this chapter to be included as a member of any qualified
family if that individual--
``(1) is incarcerated in a local, State, or Federal jail,
prison, mental hospital, or other institution on the family
determination date, and
``(2) is scheduled to be incarcerated for 6 months or more
in the 12-month period following the effective date of the
annual registration or the revised registration of said
qualified family.
``(m) Family Determination Date.--The family determination date is
a date assigned to each family by the Secretary for purposes of
determining qualified family size and other information necessary for
the administration of this chapter. The Secretary shall promulgate
regulations regarding the issuance of family determination dates. In
the absence of any regulations, the family determination date for all
families shall be October 1. The Secretary may assign family
determination dates for administrative convenience. Permissible means
of assigning family determination dates include a method based on the
birth dates of family members.
``(n) Cross Reference.--For penalty for filing false rebate claim,
see section 504(i).
``SEC. 303. MONTHLY POVERTY LEVEL.
``(a) In General.--The monthly poverty level for any particular
month shall be one-twelfth of the `annual poverty level'. For purposes
of this section the `annual poverty level' shall be the sum of--
``(1) the annual level determined by the Department of
Health and Human Services poverty guidelines required by
sections 652 and 673(2) of the Omnibus Reconciliation Act of
1981 for a particular family size, and
``(2) in case of families that include a married couple,
the `annual marriage penalty elimination amount'.
``(b) Annual Marriage Penalty Elimination Amount.--The annual
marriage penalty elimination amount shall be the amount that is--
``(1) the amount that is two times the annual level
determined by the Department of Health and Human Services
poverty guidelines required by sections 652 and 673(2) of the
Omnibus Reconciliation Act of 1981 for a family of one, less
``(2) the annual level determined by the Department of
Health and Human Services poverty guidelines required by
sections 652 and 673(2) of the Omnibus Reconciliation Act of
1981 for a family of two.
``SEC. 304. REBATE MECHANISM.
``(a) General Rule.--The Social Security Administration shall
provide a monthly sales tax rebate to duly registered qualified
families in an amount determined in accordance with section 301.
``(b) Persons Receiving Rebate.--The payments shall be made to the
persons designated by the qualifying family in the annual or revised
registration for each qualified family in effect with respect to the
month for which payment is being made. Payments may only be made to
persons 18 years or older. If more than 1 person is designated in a
registration to receive the rebate, then the rebate payment shall be
divided evenly between or among those persons designated.
``(c) When Rebates Mailed.--Rebates shall be mailed on or before
the first business day of the month for which the rebate is being
provided.
``(d) Smart Cards and Direct Electronic Deposit Permissible.--The
Social Security Administration may provide rebates in the form of smart
cards that carry cash balances in their memory for use in making
purchases at retail establishments or by direct electronic deposit.
``SEC. 305. CHANGE IN FAMILY CIRCUMSTANCES.
``(a) General Rule.--In the absence of the filing of a revised
registration in accordance with this chapter, the common residence of
the qualified family, marital status and number of persons in a
qualified family on the family registration date shall govern
determinations required to be made under this chapter for purposes of
the following calendar year.
``(b) No Double Counting.--In no event shall any person be
considered part of more than one qualified family.
``(c) Revised Registration Permissible.--A qualified family may
file a revised registration for purposes of section 302(d) to reflect a
change in family circumstances. A revised registration form shall
provide--
``(1) the name of each family member who shared the
qualified family's residence on the filing date of the revised
registration,
``(2) the Social Security number of each family member who
shared the qualified family's residence on the filing date of
the revised registration,
``(3) the family member or family members to whom the
family consumption allowance should be paid,
``(4) a certification that all listed family members are
lawful residents of the United States,
``(5) a certification that all family members sharing the
commoner residence are listed,
``(6) a certification that no family members were
incarcerated on the family determination date (within the
meaning of section 302(1)), and
``(7) the address of the qualified family.
Said revised registration shall be signed by all members of the
qualified family that have attained the age of 21 years as of the
filing date of the revised registration.
``(d) Change of Address.--A change of address for a qualified
family may be filed with the sales tax administering authority at any
time and shall not constitute a revised registration.
``(e) Revised Registration Not Mandatory.--Revised registrations
reflecting changes in family status are not mandatory.
``CHAPTER 4--FEDERAL AND STATE COOPERATIVE TAX ADMINISTRATION
``Sec. 401. Authority for States to collect tax.
``Sec. 402. Federal administrative support for States.
``Sec. 403. Federal-State tax conferences.
``Sec. 404. Federal administration in certain States.
``Sec. 405. Interstate allocation and destination determination.
``Sec. 406. General administrative matters.
``Sec. 407. Jurisdiction.
``SEC. 401. AUTHORITY FOR STATES TO COLLECT TAX.
``(a) In General.--The tax imposed by section 101 on gross payments
for the use or consumption of taxable property or services within a
State shall be administered, collected, and remitted to the United
States Treasury by such State if the State is an administering State.
``(b) Administering State.--For purposes of this section, the term
`administering State' means any State--
``(1) which maintains a sales tax, and
``(2) which enters into a cooperative agreement with the
Secretary containing reasonable provisions governing the
administration by such State of the taxes imposed by the
subtitle and the remittance to the United States in a timely
manner of taxes collected under this chapter.
``(c) Cooperative Agreements.--The agreement under subsection
(b)(2) shall include provisions for the expeditious transfer of funds,
contact officers, dispute resolution, information exchange,
confidentiality, taxpayer rights, and other matters of importance. The
agreement shall not contain extraneous matters.
``(d) Timely Remittance of Tax.--
``(1) In general.--Administering States shall remit and pay
over taxes collected under this subtitle on behalf of the
United States (less the administration fee allowable under
paragraph (2)) not later than 5 days after receipt. Interest at
150 percent of the Federal short-term rate shall be paid with
respect to amounts remitted after the due date.
``(2) Administration fee.--An administering State may
retain an administration fee equal to one-quarter of 1 percent
of the amounts otherwise required to be remitted to the United
States under this chapter by the administering State.
``(e) Limitation on Administration of Tax by United States.--The
Secretary may administer the tax imposed by this subtitle in an
administering State only if--
``(1)(A) such State has failed on a regular basis to timely
remit to the United States taxes collected under this chapter
on behalf of the United States, or
``(B) such State has on a regular basis otherwise
materially breached the agreement referred to in subsection
(b)(2),
``(2) the State has failed to cure such alleged failures
and breaches within a reasonable time,
``(3) the Secretary provides such State with written notice
of such alleged failures and breaches, and
``(4) a District Court of the United States within such
State, upon application of the Secretary, has rendered a
decision--
``(A) making findings of fact that--
``(i) such State has failed on a regular
basis to timely remit to the United States
taxes collected under this chapter on behalf of
the United States, or such State has on a
regular basis otherwise materially breached the
agreement referred to in subsection (b)(2),
``(ii) the Secretary has provided such
State with written notice of such alleged
failures and breaches, and
``(iii) the State has failed to cure such
alleged failures and breaches within a
reasonable time, and
``(B) making a determination that it is in the best
interest of the citizens of the United States that the
administering State's authority to administer the tax
imposed by this subtitle be revoked and said tax be
administered directly by the Secretary.
The order of the District Court revoking the authority of an
Administering State shall contain provisions governing the
orderly transfer of authority to the Secretary.
``(f) Reinstitution.--A State that has had its authority revoked
pursuant to subsection (e) shall not be an administering State for a
period of not less than 5 years after the date of the order of
revocation. For the first calendar year commencing 8 years after the
date of the order of revocation, the State shall be regarded without
prejudice as eligible to become an administering State.
``(g) Third State Administration Permissible.--It shall be
permissible for a State to contract with an administering State to
administer the State's sales tax for an agreed fee. In this case, the
agreement contemplated by subsection (c) shall have both the State and
the Federal Government as parties.
``(h) Investigations and Audits.--Administering States shall not
conduct investigations or audits at facilities in other administering
States in connection with the tax imposed by section 101 or conforming
State sales tax but shall instead cooperate with other administering
States using the mechanisms established by section 402, by compact or
by other agreement.
``SEC. 402. FEDERAL ADMINISTRATIVE SUPPORT FOR STATES.
``(a) In General.--The Secretary shall administer a program to
facilitate information sharing among States.
``(b) State Compacts.--The Secretary shall facilitate, and may be a
party to a compact among States for purposes of facilitating the
taxation of interstate purchases and for other purposes that may
facilitate implementation of this subtitle.
``(c) Agreement With Conforming States.--The Secretary is
authorized to enter into and shall enter into an agreement among
conforming States enabling conforming States to collect conforming
State sales tax on sales made by sellers without a particular
conforming State to a destination within that particular conforming
State.
``(d) Secretary's Authority.--The Secretary shall have the
authority to promulgate regulations, to provide guidelines, to assist
States in administering the national sales tax, to provide for
uniformity in the administration of the tax and to provide guidance to
the public.
``SEC. 403. FEDERAL-STATE TAX CONFERENCES.
``Not less than once annually, the Secretary shall host a
conference with the sales tax administrators from the various
administering States to evaluate the state of the national sales tax
system, to address issues of mutual concern and to develop and consider
legislative, regulatory, and administrative proposals to improve the
tax system.
``SEC. 404. FEDERAL ADMINISTRATION IN CERTAIN STATES.
``The Secretary shall administer the tax imposed by this subtitle
in any State or other United States jurisdiction that--
``(1) is not an administering State, or
``(2) elected to have another State administer its tax in
accordance with section 401(g).
``SEC. 405. INTERSTATE ALLOCATION AND DESTINATION DETERMINATION.
``(a) Destination Generally.--The tax imposed by this subtitle is a
destination principle tax. This section shall govern for purposes of
determining--
``(1) whether the destination of taxable property and
services is within or without the United States, and
``(2) which State or territory within the United States is
the destination of taxable property and services.
``(b) Tangible Personal Property.--Except as provided in subsection
(g) (relating to certain leases), the destination of tangible personal
property shall be the State or territory in which the property was
first delivered to the purchaser (including agents and authorized
representatives).
``(c) Real Property.--The destination of real property, or rents or
leaseholds on real property, shall be the State or territory in which
the real property is located.
``(d) Other Property.--The destination of any other taxable
property shall be the residence of the purchaser.
``(e) Services.--
``(1) General rule.--The destination of services shall be
the State or territory in which the use or consumption of the
services occurred. Allocation of service invoices relating to
more than 1 jurisdiction shall be on the basis of time or
another method determined by regulation.
``(2) Telecommunications services.--The destination of
telecommunications services shall be the residence of the
purchaser. Telecommunications services include telephone,
telegraph, beeper, radio, cable television, satellite, and
computer on-line or network services.
``(3) Domestic transportation services.--For transportation
services where all of the final destinations are within the
United States, the destination of transportation services shall
be the final destination of the trip (in the case of round or
multiple trip fares, the services amount shall be equally
allocated among each final destination).
``(4) International transportation services.--For
transportation services where the final destination or origin
of the trip is without the United States, the service amount
shall be deemed 50 percent attributable to the United States
destination or origin.
``(5) Electrical service.--The destination of electrical
services shall be the residence of the purchaser.
``(f) Financial Intermediation Services.--The destination of
financial intermediation services shall be the residence of the
purchaser.
``(g) Rents Paid for the Lease of Tangible Property.--
``(1) General rule.--Except as provided in paragraph (2),
the destination of rents paid for the lease of tangible
property and leaseholds on such property shall be where the
property is located while in use.
``(2) Land vehicles; aircraft, water craft.--The
destination of rental and lease payments on land vehicles,
aircraft and water craft shall be--
``(A) in the case of rentals and leases of a term
of 1 month or less, the location where the land
vehicle, aircraft, or water craft was originally
delivered to the renter or lessee, and
``(B) in the case of rentals and leases of a term
greater than 1 month, the residence of the renter or
lessee.
``(h) Allocation Rules.--For purposes of allocating revenue--
``(1) between or among administering States from taxes
imposed by this subtitle or from State sales taxes administered
by third-party administering States, or
``(2) between or among States imposing conforming State
sales taxes,
the revenue shall be allocated to those States that are the destination
of the taxable property or service.
``(i) Federal Office of Revenue Allocation.--The Secretary shall
establish an Office of Revenue Allocation to arbitrate any claims or
disputes among administering States as to the destination of taxable
property and services for purposes of allocating revenue between or
among the States from taxes imposed by this subtitle. The determination
of the Administrator of the Office of Revenue Allocation shall be
subject to judicial review in any Federal court with competent
jurisdiction. The standard of review shall be abuse of discretion.
``SEC. 406. GENERAL ADMINISTRATIVE MATTERS.
``(a) In General.--The Secretary and each sales tax administering
authority may employ such persons as may be necessary for the
administration of this subtitle and may delegate to employees the
authority to conduct interviews, hearings, prescribe rules, promulgate
regulations, and perform such other duties as are required by this
subtitle.
``(b) Resolution of Any Inconsistent Rules and Regulations.--In the
event that the Secretary and any sales tax administering authority have
issued inconsistent rules or regulations, any lawful rule or regulation
issued by the Secretary shall govern.
``(c) Adequate Notice To Be Provided.--Except in the case of an
emergency declared by the Secretary (and not his designee), no rule or
regulation issued by the Secretary with respect to any internal revenue
law shall take effect before 90 days have elapsed after its publication
in the Federal Register. Upon issuance, the Secretary shall provide
copies of all rules or regulations issued under this title to each
sales tax administering authority.
``(d) No Rules, Rulings, or Regulations With Retroactive Effect.--
No rule, ruling, or regulation issued or promulgated by the Secretary
relating to any internal revenue law or by a sales tax administering
authority shall apply to a period prior to its publication in the
Federal Register (or State equivalent) except that a regulation may
take retroactive effect to prevent abuse.
``(e) Review of Impact of Regulations, Rules, and Rulings on Small
Business.--
``(1) Submission to small business administration.--After
publication of any proposed or temporary regulation by the
Secretary relating to internal revenue laws, the Secretary
shall submit such regulation to the Chief Counsel for Advocacy
of the Small Business Administration for comment on the impact
of such regulation on small businesses. Not later than the date
30 days after the date of such submission, the Chief Counsel
for Advocacy of the Small Business Administration shall submit
comments on such regulation to the Secretary.
``(2) Consideration of comments.--In prescribing any final
regulation which supersedes a proposed or temporary regulation
which had been submitted under this subsection to the Chief
Counsel for Advocacy of the Small Business Administration, the
Secretary shall--
``(A) consider the comments of the Chief Counsel
for Advocacy of the Small Business Administration on
such proposed or temporary regulation, and
``(B) in promulgating such final regulation,
include a narrative that describes the response to such
comments.
``(3) Submission of certain final regulation.--In the case
of promulgation by the Secretary of any final regulations
(other than a temporary regulation) which do not supersede a
proposed regulation, the requirements of paragraphs (1) and (2)
shall apply, except that the submission under paragraph (1)
shall be made at least 30 days before the date of such
promulgation, and the consideration and discussion required
under paragraph (2) shall be made in connection with the
promulgation of such final regulation.
``(f) Small Business Regulatory Safeguards.--The Small Business
Regulatory Enforcement Fairness Act (Public Law 104-121; 110 Stat. 857
(`SBREFA')) and the Regulatory Flexibility Act (5 U.S.C. 601-612
(`RFA')) shall apply to regulations promulgated under this subtitle.
``SEC. 407. JURISDICTION.
``(a) State Jurisdiction.--A sales tax administering authority
shall have jurisdiction over any gross payments made which have a
destination (as determined in accordance with section 405) within the
State of said sales tax administering authority. This grant of
jurisdiction is not exclusive of any other jurisdiction that such sales
tax administering authority may have.
``(b) Federal Jurisdiction.--The grant of jurisdiction in
subsection (a) shall not be in derogation of Federal jurisdiction over
the same matter. The Federal Government shall have the right to
exercise preemptive jurisdiction over matters relating to the taxes
imposed by this subtitle.
``CHAPTER 5--OTHER ADMINISTRATIVE PROVISIONS
``Sec. 501. Monthly reports and payments.
``Sec. 502. Registration.
``Sec. 503. Accounting.
``Sec. 504. Penalties.
``Sec. 505. Burden of persuasion and burden of production.
``Sec. 506. Attorneys' and accountancy fees.
``Sec. 507. Summons, examinations, audits, etc.
``Sec. 508. Records.
``Sec. 509. Tax to be separately stated and charged.
``Sec. 510. Coordination with title 11.
``Sec. 511. Applicable interest rate.
``SEC. 501. MONTHLY REPORTS AND PAYMENTS.
``(a) Tax Reports and Filing Dates.--
``(1) In general.--On or before the 15th day of each month,
each person who is--
``(A) liable to collect and remit the tax imposed
by this subtitle by reason of section 103(a), or
``(B) liable to pay tax imposed by this subtitle
which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering
authority (in a form prescribed by the Secretary) a report
relating to the previous calendar month.
``(2) Contents of report.--The report required under
paragraph (1) shall set forth--
``(A) the gross payments referred to in section
101,
``(B) the tax collected under chapter 4 in
connection with such payments,
``(C) the amount and type of any credit claimed,
and
``(D) other information reasonably required by the
Secretary or the sales tax administering authority for
the administration, collection, and remittance of the
tax imposed by this subtitle.
``(b) Tax Payments Date.--
``(1) General rule.--The tax imposed by this subtitle
during any calendar month is due and shall be paid to the
appropriate sales tax administering authority on or before the
15th day of the succeeding month. Both Federal tax imposed by
this subtitle and conforming State sales tax (if any) shall be
paid in 1 aggregate payment.
``(2) Cross reference.--See subsection (e) relating to
remitting of separate segregated funds for sellers that are not
small sellers.
``(c) Extensions for Filing Reports.--
``(1) Automatic extensions for not more than 30 days.--On
application, an extension of not more than 30 days to file
reports under subsection (a) shall be automatically granted.
``(2) Other extensions.--On application, extensions of 30
to 60 days to file such reports shall be liberally granted by
the sales tax administering authority for reasonable cause.
Extensions greater than 60 days may be granted by the sales tax
administering authority to avoid hardship.
``(3) No extension for payment of taxes.--Notwithstanding
paragraphs (1) and (2), no extension shall be granted with
respect to the time for paying or remitting the taxes under
this subtitle.
``(d) Telephone Reporting of Violations.--The Secretary shall
establish a system under which a violation of this subtitle can be
brought to the attention of the sales tax administering authority for
investigation through the use of a toll-free telephone number and
otherwise.
``(e) Separate Segregated Accounts.--
``(1) In general.--Any registered seller that is not a
small seller shall deposit all sales taxes collected pursuant
to section 103 in a particular week in a separate segregated
account maintained at a bank or other financial institution
within 3 business days of the end of such week. Said registered
seller shall also maintain in that account sufficient funds to
meet the bank or financial institution minimum balance
requirements, if any, and to pay account fees and costs.
``(2) Small seller.--For purposes of this subsection, a
small seller is any person that has not collected $20,000 or
more of the taxes imposed by this subtitle in any of the
previous 12 months.
``(3) Large sellers.--Any seller that has collected
$100,000 or more of the taxes imposed by this subtitle in any
of the previous 12 months is a large seller. A large seller
shall remit to the sales tax administering authority the entire
balance of deposited taxes in its separate segregated account
on the first business day following the end of the calendar
week. The Secretary may by regulation require the electronic
transfer of funds due from large sellers.
``(4) Week.--For purposes of this subsection, the term
`week' shall mean the 7-day period ending on a Friday.
``(f) Determination of Report Filing Date.--A report filed pursuant
to subsection (a) shall be deemed filed when--
``(1) deposited in the United States mail, postage prepaid,
addressed to the sales tax administering authority,
``(2) delivered and accepted at the offices of the sales
tax administering authority,
``(3) provided to a designated commercial private courier
service for delivery within 2 days to the sales tax
administering authority at the address of the sales tax
administering authority, or
``(4) by other means permitted by the Secretary.
``(g) Security Requirements.--A large seller (within the meaning of
subsection (e)(3)) shall be required to provide security in an amount
equal to the greater of $100,000 or one and one-half times the seller's
average monthly tax liability during the previous 6 calendar months.
Security may be a cash bond, a bond from a surety company approved by
the Secretary, a certificate of deposit, or a State or United States
Treasury bond. A bond qualifying under this subsection must be a
continuing instrument for each calendar year (or portion thereof) that
the bond is in effect. The bond must remain in effect until the surety
or sureties are released and discharged. Failure to provide security in
accordance with this section shall result in revocation of the seller's
section 502 registration. If a person who has provided security
pursuant to this subsection--
``(1) fails to pay an amount indicated in a final notice of
amount due under this subtitle (within the meaning of section
605(d)),
``(2) no Taxpayer Assistance Order is in effect relating to
the amount due,
``(3) either the time for filing an appeal pursuant to
section 604 has passed or the appeal was denied, and
``(4) the amount due is not being litigated in any judicial
forum,
then the security or part of the security, as the case may be, may be
forfeited in favor of the Secretary to the extent of such tax due (plus
interest if any).
``(h) Rewards Program.--The Secretary is authorized to maintain a
program of awards wherein individuals that assist the Secretary or
sales tax administering authorities in discovering or prosecuting tax
fraud may be remunerated.
``(i) Cross Reference.--For interest due on taxes remitted late,
see section 6601.
``SEC. 502. REGISTRATION.
``(a) In General.--Any person liable to collect and remit taxes
pursuant to section 103(a) who is engaged in a trade or business shall
register as a seller with the sales tax administering authority
administering the taxes imposed by this subtitle.
``(b) Affiliated Firms.--Affiliated firms shall be treated as 1
person for purposes of this section. Affiliated firms may elect, upon
giving notice to the Secretary in a form prescribed by the Secretary,
to treat separate firms as separate persons for purposes of this
subtitle.
``(c) Designation of Tax Matters Person.--Every person registered
pursuant to subsection (a) shall designate a tax matters person who
shall be an individual whom the sales tax administering authority may
contact regarding tax matters. Each person registered must provide
notice of a change in the identity of the tax matters person within 30
days of said change.
``(d) Effect of Failure To Register.--Any person that is required
to register and who fails to do so is prohibited from selling taxable
property or services. The Secretary or a sales tax administering
authority may bring an action seeking a temporary restraining order, an
injunction, or such other order as may be appropriate to enforce this
section.
``SEC. 503. ACCOUNTING.
``(a) Cash Method To Be Used Generally.--Registered sellers and
other persons shall report transactions using the cash method of
accounting unless an election to use the accrual method of accounting
is made pursuant to subsection (b).
``(b) Election To Use Accrual Method.--A person may elect with
respect to a calender year to remit taxes and report transactions with
respect to the month where a sale was invoiced and accrued.
``(c) Cross Reference.--See section 205 for rules relating to bad
debts for sellers electing the accrual method.
``SEC. 504. PENALTIES.
``(a) Failure To Register.--Each person who is required to register
pursuant to section 502 but fails to do so prior to notification by the
sales tax administering authority shall be liable for a penalty of
$500.
``(b) Reckless or Willful Failure To Collect Tax.--
``(1) Civil penalty; fraud.--Each person who is required to
and recklessly or willfully fails to collect taxes imposed by
this subtitle shall be liable for a penalty equal to the
greater of $500 or 20 percent of tax not collected.
``(2) Criminal penalty.--Each person who is required to and
willfully fails as part of a trade or business to collect taxes
imposed by this subtitle may be fined an amount up to the
amount determined in accordance with paragraph (1) or
imprisoned for a period of not more than 1 year or both.
``(c) Reckless or Willful Assertion of Invalid Exemption.--
``(1) Civil penalty; fraud.--Each person who recklessly or
willfully asserts an invalid intermediate or export sales
exemption from the taxes imposed by this subtitle shall be
liable for a penalty equal to the greater of $500 or 20 percent
of the tax not collected or remitted.
``(2) Criminal penalty.--Each person who willfully asserts
an invalid intermediate or export sales exemption from the
taxes imposed by this subtitle may be fined an amount up to the
amount determined in accordance with paragraph (1) or
imprisoned for a period of not more than 1 year or both.
``(d) Reckless or Willful Failure To Remit Tax Collected.--
``(1) Civil penalty; fraud.--Each person who is required to
and recklessly or willfully fails to remit taxes imposed by
this subtitle and collected from purchasers shall be liable for
a penalty equal to the greater of $1,000 or 50 percent of the
tax not remitted.
``(2) Criminal penalty.--Each person who willfully fails to
remit taxes imposed by this subtitle and collected from
purchasers may be fined an amount up to the amount determined
in accordance with paragraph (1) or imprisoned for a period of
not more than 2 years or both.
``(e) Reckless or Willful Failure To Pay Tax.--Each person who is
required to and recklessly or willfully fails to pay taxes imposed by
this subtitle shall be liable for a penalty equal to the greater of
$500 or 20 percent of the tax not paid.
``(f) Penalty for Late Filing.--
``(1) In general.--In the case of a failure by any person
who is required to and fails to file a report required by
section 501 on or before the due date (determined with regard
to any extension) for such report, such person shall pay a
penalty for each month or fraction thereof that said report is
late equal to the greater of--
``(A) $50, or
``(B) 0.5 percent of the gross payments required to
be shown on the report.
``(2) Increased penalty on returns filed after written
inquiry.--The amount of the penalty under paragraph (1) shall
be doubled with respect to any report filed after a written
inquiry with respect to such report is received by the taxpayer
from the sales tax administering authority.
``(3) Limitation.--The penalty imposed under this
subsection shall not exceed 12 percent.
``(4) Exceptions.--
``(A) Reasonable cause.--No penalty shall be
imposed under this subsection with respect to any
failure if it is shown that such failure is due to
reasonable cause.
``(B) Other waiver authority.--In addition to
penalties not imposed by reason of subparagraph (A),
the sales tax administering authority, on application,
shall waive the penalty imposed by paragraph (1) once
per registered person per 24-month period. The
preceding sentence shall not apply to a penalty
determined under paragraph (2).
``(g) Penalty for Willfully or Recklessly Accepting a False
Intermediate or Export Sales Certificate.--A person who willingly or
recklessly accepts a false intermediate or export sales certificate
shall pay a penalty equal to 20 percent of the tax not collected by
reason of said acceptance.
``(h) Penalty for Late Remittance of Taxes.--
``(1) In general.--A person who is required to timely remit
taxes imposed by this subtitle and remits taxes more than 1
month after such taxes are due shall pay a penalty equal to 1
percent per month (or fraction thereof) from the due date.
``(2) Limitation.--The penalty imposed under this
subsection shall not exceed 24 percent.
``(3) Exceptions for reasonable cause.--No penalty shall be
imposed under paragraph (1) with respect to any late remittance
if it is shown that such late remittance is due to reasonable
cause.
``(i) Penalty for Filing False Rebate Claim.--
``(1) Civil penalty; fraud.--A person who willingly or
recklessly files a false claim for a family consumption
allowance rebate (within the meaning of chapter 3) shall--
``(A) pay a penalty equal to the greater of $500 or
50 percent of the claimed annual rebate amount not
actually due, and
``(B) repay any rebates received as a result of the
false rebate claim (together with interest).
``(2) Criminal penalty.--A person who willingly files a
false claim for a family consumption allowance rebate (within
the meaning of chapter 3) may be fined an amount up to the
amount determined in accordance with paragraph (1) or
imprisoned for a period not more than 1 year or both.
``(j) Penalty for Bad Check.--If any check or money order in
payment of any amount receivable under this subtitle is not duly paid,
in addition to other penalties provided by law, the person who tendered
such check shall pay a penalty equal to the greater of--
``(1) $25, or
``(2) two percent of the amount of such check.
``(k) Penalty for Failure To Maintain a Separate Segregated
Account.--Any person required to maintain a separate segregated account
pursuant to section 501(e) that fails to maintain such a separate
segregated account shall pay a penalty of $1,000.
``(l) Penalty for Failure To Deposit Collected Taxes in a Separate
Segregated Account.--Any person required to deposit collected taxes
into a separate segregated account maintained pursuant to section
501(e) that fails to timely deposit said taxes into the separate
segregated account shall pay a penalty equal to 1 percent of the amount
required to be deposited. The penalty imposed by the previous sentence
shall be tripled unless said taxes have been deposited in the separate
segregated account or remitted to the sales tax administering authority
within 16 days of the date said deposit was due.
``(m) Joint and Several Liability for Tax Matters Person and
Responsible Officers.--The tax matters person (designated pursuant to
section 502(c)) and responsible officers or partners of a firm shall be
jointly and severally liable for the tax imposed by this subtitle and
penalties imposed by this subtitle.
``(n) Right of Contribution.--If more than 1 person is liable with
respect to any tax or penalty imposed by this subtitle, each person who
paid such tax or penalty shall be entitled to recover from other
persons who are liable for such tax or penalty an amount equal to the
excess of the amount paid by such person over such person's
proportionate share of the tax or penalty.
``(o) Civil Penalties and Criminal Fines Not Exclusive.--
``(1) Civil penalty.--The fact that a civil penalty has
been imposed shall not prevent the imposition of a criminal
fine.
``(2) Criminal fine.--The fact that a criminal fine has
been imposed shall not prevent the imposition of a civil
penalty.
``(p) Confidentiality.--Any person who violates the requirements
relating to confidentiality of tax information (as provided in section
605(e)) may be fined up to $10,000 or imprisoned for a period of not
more than 1 year, or both.
``(q) Cross Reference.--For interest due on late payments, see
section 6601.
``SEC. 505. BURDEN OF PERSUASION AND BURDEN OF PRODUCTION.
``In all disputes concerning taxes imposed by this subtitle, the
person engaged in a dispute with the sales tax administering authority
or the Secretary, as the case may be, shall have the burden of
production of documents and records but the sales tax administering
authority or the Secretary shall have the burden of persuasion. In all
disputes concerning an exemption claimed by a purchaser, if the seller
has on file an intermediate sale or export sale certificate from the
purchaser and did not have reasonable cause to believe that the
certificate was improperly provided by the purchaser with respect to
such purchase (within the meaning of section 103), then the burden of
production of documents and records relating to that exemption shall
rest with the purchaser and not with the seller.
``SEC. 506. ATTORNEYS' AND ACCOUNTANCY FEES.
``In all disputes concerning taxes imposed by this subtitle, the
person engaged in a dispute with the sales tax administering authority
or the Secretary, as the case may be, shall be entitled to reasonable
attorneys' fees, accountancy fees, and other reasonable professional
fees incurred in direct relation to the dispute unless the sales tax
administering authority or the Secretary establishes that its position
was substantially justified.
``SEC. 507. SUMMONS, EXAMINATIONS, AUDITS, ETC.
``(a) Summons.--Persons are subject to administrative summons by
the sales tax administering authority for records, documents, and
testimony required by the sales tax administering authority to
accurately determine liability for tax under this subtitle. A summons
shall be served by the sales tax administering authority by an attested
copy delivered in hand to the person to whom it is directed or left at
his last known address. The summons shall describe with reasonable
certainty what is sought.
``(b) Examinations and Audits.--The sales tax administering
authority has the authority to conduct at a reasonable time and place
examinations and audits of persons who are or may be liable to collect
and remit tax imposed by this subtitle and to examine the books,
papers, records, or other data of such persons which may be relevant or
material to the determination of tax due.
``(c) Limitation on Authority in Case of Referral.--No
administrative summons may be issued by the sales tax administering
authority and no action be commenced to enforce an administrative
summons with respect to any person if a Justice Department referral or
referral to a State Attorney General's Office is in effect with respect
to such person relating to a tax imposed by this subtitle. Such
referral is in effect with respect to any person if the sales tax
administering authority or the Secretary has recommended to the Justice
Department or a State Attorney General's Office a grand jury
investigation of such person or a criminal prosecution of such person
that contemplates criminal sanctions under this title. A referral shall
be terminated when--
``(1) the Justice Department or a State Attorney General's
Office notifies the sales tax administering authority or the
Secretary that he will not--
``(A) prosecute such person for any offense
connected with the internal revenue laws,
``(B) authorize a grand jury investigation of such
person with respect to such offense, or
``(C) continue such a grand jury investigation, or
``(2) a final disposition has been made of any criminal
proceeding connected with the internal revenue laws, or
conforming State sales tax, against such person.
``SEC. 508. RECORDS.
``Any person liable to remit taxes pursuant to this subtitle shall
keep records (including a record of all section 509 receipts provided,
complete records of intermediate and export sales, including
purchaser's intermediate and export sales certificates and tax number
and the net of tax amount of purchase) sufficient to determine the
amounts reported, collected, and remitted for a period of 6 years after
the latter of the filing of the report for which the records formed the
basis or when the report was due to be filed. Any purchaser who
purchased taxable property or services but did not pay tax by reason of
asserting an intermediate and export sales exemption shall keep records
sufficient to determine whether said exemption was valid for a period
of 7 years after the purchase of taxable property or services.
``SEC. 509. TAX TO BE SEPARATELY STATED AND CHARGED.
``(a) In General.--For each purchase of taxable property or
services for which a tax is imposed by section 101, the seller shall
charge the tax imposed by section 101 separately from the purchase. For
purchase of taxable property or services for which a tax is imposed by
section 101, the seller shall provide to the purchaser a receipt for
each transaction that includes--
``(1) the property or services price exclusive of tax,
``(2) the amount of tax paid,
``(3) the property or service price inclusive of tax,
``(4) the tax rate (the amount of tax paid (per paragraph
(2)) divided by the property or service price inclusive of tax
(per paragraph (3)),
``(5) the date that the good or service was sold,
``(6) the name of the vendor, and
``(7) the vendor registration number.
``(b) Vending Machine Exception.--The requirements of subsection
(a) shall be inapplicable in the case of sales by vending machines.
Vending machines for purposes of this subsection are machines--
``(1) that dispense taxable property in exchange for coins
or currency, and
``(2) that sell no single item exceeding $10 per unit in
price.
``(c) Financial Intermediation Services Exception.--The
requirements of subsection (a) shall be inapplicable in the case of
sales financial intermediation service. Receipts shall be issued when
the tax is imposed (in accordance with section 803 (relating to timing
of tax on financial intermediation services)).
``SEC. 510. COORDINATION WITH TITLE 11.
``No addition to tax shall be made under section 504 with respect
to a period during which a case is pending under title 11, United
States Code--
``(1) if such tax was incurred by the estate and the
failure occurred pursuant to an order of the court finding
probable insufficiency of funds of the estate to pay
administrative expenses, or
``(2) if--
``(A) such tax was incurred by the debtor before
the earlier of the order for relief or (in the
involuntary case) the appointment of a trustee, and
``(B) the petition was filed before the due date
prescribed by law (including extensions) for filing a
return of such tax, or the date for making the addition
to tax occurs on or after the date the petition was
filed.
``SEC. 511. APPLICABLE INTEREST RATE.
``(a) In General.--
``(1) Federal short-term rate.--In the case of a debt
instrument, investment, financing lease, or account with a term
of not over 3 years, the applicable interest rate is the
Federal short-term rate.
``(2) Federal mid-term rate.--In the case of a debt
instrument, investment, financing lease, or account with a term
of over 3 years but not over 9 years, the applicable interest
rate is the Federal mid-term rate.
``(3) Federal long-term rate.--In the case of a debt
instrument, investment, financing lease, or account with a term
of over 9 years, the applicable interest rate is the Federal
long-term rate.
``(b) Federal Short-Term Rate.--The Federal short-term rate shall
be the rate determined by the Secretary based on the average market
yield (selected by the Secretary and ending in the calendar month in
which the determination is made during any one month) on outstanding
marketable obligations of the United States with remaining periods to
maturity of 3 years or fewer.
``(c) Federal Mid-Term Rate.--The Federal mid-term rate shall be
the rate determined by the Secretary based on the average market yield
(selected by the Secretary and ending in the calendar month in which
the determination is made during any 1 month) on outstanding marketable
obligations of the United States with remaining periods to maturity of
more than 3 years and not over 9 years.
``(d) Federal Long-Term Rate.--The Federal long-term rate shall be
the rate determined by the Secretary based on the average market yield
(selected by the Secretary and ending in the calendar month in which
the determination is made during any 1 month) on outstanding marketable
obligations of the United States with remaining periods to maturity of
over 9 years.
``(e) Determination of Rates.--During each calendar month, the
Secretary shall determine the Federal short-term rate, the Federal mid-
term rate and the Federal long-term rate which shall apply during the
following calendar month.
``CHAPTER 6--COLLECTIONS; APPEALS; TAXPAYER RIGHTS
``Sec. 601. Collections.
``Sec. 602. Power to levy, etc.
``Sec. 603. Problem resolution offices.
``Sec. 604. Appeals.
``Sec. 605. Taxpayer rights.
``Sec. 606. Installment agreements; compromises.
``SEC. 601. COLLECTIONS.
``The sales tax administering authority shall collect the taxes
imposed by this subtitle, except as provided in section 404 (relating
to Federal administration in certain States).
``SEC. 602. POWER TO LEVY, ETC.
``(a) In General.--The sales tax administering authority may levy
and seize property, garnish wages or salary and file liens to collect
amounts due under this subtitle, pursuant to enforcement of--
``(1) a judgment duly rendered by a court of law,
``(2) an amount due if the taxpayer has failed to exercise
his appeals rights under section 604, or
``(3) an amount due if the appeals process determined that
an amount remained due and the taxpayer has failed to timely
petition the Tax Court for relief.
``(b) Exemption From Levy, Seizure, and Garnishments.--There shall
be exempt from levy, seizure, and garnishment or penalty in connection
with any tax imposed by this subtitle--
``(1) wearing apparel, school books, fuel, provisions,
furniture, personal effects, tools of a trade or profession,
livestock in a household up to an aggregate value of $15,000,
and
``(2) monthly money income equal to 150 percent of the
monthly poverty level (as defined in section 303).
``(c) Liens To Be Timely Released.--Subject to such reasonable
regulations as the Secretary may provide, any lien imposed with respect
to a tax imposed by this title shall be released not later than 30 days
after--
``(1) the liability was satisfied or became unenforceable,
or
``(2) a bond was accepted as security.
``SEC. 603. PROBLEM RESOLUTION OFFICES.
``(a) Problem Resolution Office To Be Established.--Each sales tax
administering authority shall establish an independent Problem
Resolution Office and appoint an adequate number of problem resolution
officers. The head of the problem resolution office must be appointed
by, and serve at the pleasure of either the State Governor (in the case
of an administering State) or the President of the United States.
``(b) Authority of Problem Resolution Officers.--Problem resolution
officers shall have the authority to investigate complaints and issue a
Taxpayer Assistance Order to administratively enjoin any collection
activity if, in the opinion of the problem resolution officer, said
collection activity is reasonably likely to not be in compliance with
law or to prevent hardship (other than by reason of having to pay taxes
lawfully due). Problem resolution officers shall also have the
authority to issue Taxpayer Assistance Orders releasing or returning
property that has been levied upon or seized, ordering that a lien be
released and that garnished wages be returned. A Taxpayer Assistance
Order may only be rescinded or modified by the problem resolution
officer that issued it, by the highest official in the relevant sales
tax administering authority or by its general counsel upon a finding
that the collection activity is justified by clear and convincing
evidence. The authority to reverse this Taxpayer Assistance Order may
not be delegated.
``(c) Form of Request for Taxpayer Assistance Order.--The Secretary
shall establish a form and procedure to aid persons requesting the
assistance of the Problem Resolution Office and to aid the Problem
Resolution Office in understanding the needs of the person seeking
assistance. The use of this form, however, shall not be a prerequisite
to a problem resolution officer taking action, including issuing a
Taxpayer Assistance Order.
``(d) Content of Taxpayer Assistance Order.--A Taxpayer Assistance
Order shall contain the name of the problem resolution officer, any
provision relating to the running of any applicable period of
limitation, the name of the person that the Taxpayer Assistance Order
assists, the government office (or employee or officer of said
government office) to whom it is directed and the action or cessation
of action that the Taxpayer Assistance Order requires of said
government officer (or employee or officer of said government office).
The Taxpayer Assistance Order need not contain findings of fact or its
legal basis; however, the problem resolution officer must provide
findings of fact and the legal basis for the issuance of the Taxpayer
Assistance Order to the sales tax administering authority upon the
request of an officer of said authority within 2 weeks of the receipt
of such request.
``(e) Independence Protected.--Problem resolution officers shall
not be disciplined or adversely affected for the issuance of
administrative injunctions unless a pattern of issuing injunctions that
are manifestly unreasonable is proven in an administrative hearing by a
preponderance of the evidence.
``(f) Other Rights Not Limited.--Nothing in this section shall
limit the authority of the sales tax administering authority, the
registered person or other person from pursuing any legal remedy in any
court with jurisdiction over the dispute at issue.
``(g) Limitations.--The running of any applicable period of
limitation shall be suspended for a period of 8 weeks following the
issuance of a Taxpayer Assistance Order or, if specified, for a longer
period set forth in the Taxpayer Assistance Order provided the
suspension does not exceed 6 months.
``SEC. 604. APPEALS.
``(a) Administrative Appeals.--The sales tax administering
authority shall establish an administrative appeals process wherein the
registered person or other person in disagreement with a decision of
the sales tax administering authority asserting liability for tax is
provided a full and fair hearing in connection with any disputes said
person has with the sales tax administering authority.
``(b) Timing of Administrative Appeals.--Said administrative appeal
must be made within 60 days of receiving a final notice of amount due
pursuant to section 605(d) unless leave for an extension is granted by
the appeals officer in a form prescribed by the Secretary. Leave shall
be granted to avoid hardship.
``SEC. 605. TAXPAYER RIGHTS.
``(a) Rights To Be Disclosed.--The sales tax administering
authority shall provide to any person against whom it has--
``(1) commenced an audit or investigation,
``(2) issued a final notice of amount due,
``(3) filed an administrative lien, levy, or garnishment,
``(4) commenced other collection action,
``(5) commenced an action for civil penalties, or
``(6) any other legal action,
a document setting forth in plain English the rights of the person. The
document shall explain the administrative appeals process, the
authority of the Problem Resolution Office (established pursuant to
section 603) and how to contact that Office, the burden of production
and persuasion that the person and the sales tax administering
authority bear (pursuant to section 505), the right of the person to
professional fees (pursuant to section 506), the right to record
interviews and such other rights as the person may possess under this
subtitle. Said document will also set forth the procedures for entering
into an installment agreement.
``(b) Right to Professional Assistance.--In all dealings with the
sales tax administering authority, a person shall have the right to
assistance, at their own expense, of one or more professional advisors.
``(c) Right To Record Interviews.--Any person who is interviewed by
an agent of the sales tax administering authority shall have the right
to video or audio tape the interview at the person's own expense.
``(d) Right to Final Notice of Amount Due.--No collection or
enforcement action will be commenced against a person until 30 days
after they have been provided with a final notice of amount due under
this subtitle by the sales tax administering authority. The final
notice of amount due shall set forth the amount of tax due (along with
any interest and penalties due) and the factual and legal basis for
such amounts being due with sufficient specificity that such basis can
be understood by a reasonable person who is not a tax professional
reading the notice. The final notice shall be sent by certified mail,
return receipt requested, to--
``(1) the address last provided by a registered seller, or
``(2) the best available address to a person who is not a
registered seller.
``(e) Confidentiality of Tax Information.--
``(1) In general.--All reports and report information
(related to any internal revenue law) shall be confidential and
except as authorized by this title--
``(A) no officer or employee (including former
officers and employees) of the United States,
``(B) no officer or employee (including former
officers and employees) of any State or local agency
who has had access to returns or return information,
and
``(C) no other person who has had access to returns
or return information,
shall disclose any report or report information obtained by him
in any manner in connection with his service as such officer or
employee or otherwise.
``(2) Designees.--The sales tax administering authority
may, subject to such requirements as the Secretary may impose,
disclose the report and report information of a person to that
person or persons as that person may designate to receive said
information or return.
``(3) Other sales tax administering authorities.--A sales
tax administering authority may impose, disclose the report and
report information to another sales tax administering
authority.
``(4) Incompetency.--A sales tax administering authority
may, subject to such requirements as the Secretary may impose,
disclose the report and report information to the committee,
trustee, or guardian of a person who is incompetent.
``(5) Deceased persons.--A sales tax administering
authority may, subject to such requirements as the Secretary
may impose, disclose the report and report information to the
decedent's--
``(A) administrator, executor, estate trustee, or
``(B) heir at law, next of kin, or beneficiary
under a will who has a material interest that will be
affected by the information.
``(6) Bankruptcy.--A sales tax administering authority may,
subject to such requirements as the Secretary may impose,
disclose the report and report information to a person's
trustee in bankruptcy.
``(7) Congress.--Upon written request from the Chairman of
the Committee on Ways and Means, the Chairman of the Committee
on Finance of the Senate, or the Chairman or Chief of Staff of
the Joint Committee on Taxation, a sales tax administering
authority shall disclose the report and report information,
except that any report or report information that can be
associated with or otherwise identify a particular person shall
be furnished to such committee only when sitting in closed
executive session unless such person otherwise consents in
writing to such disclosure.
``(8) Waiver of privacy rights.--A person may waive
confidentiality rights provided by this section. Such waiver
must be in writing.
``(9) Internal use.--Disclosure of the report or report
information by officers or employees of a sales tax
administering authority to other officers or employees of a
sales tax administering authority in the ordinary course of tax
administration activities shall not constitute unlawful
disclosure of the report or report information.
``(10) Statistical use.--Upon request in writing by the
Secretary of Commerce, the Secretary shall furnish such reports
and report information to officers and employees of the
Department of Commerce as the Secretary may prescribe by
regulation for the purposes of, and only to the extent
necessary in, the structuring of censuses and national economic
accounts and conducting related statistical activities
authorized by law.
``(11) Department of the treasury.--Returns and return
information shall be open for inspection by officers and
employees of the Department of the Treasury whose official
duties require such inspection or disclosure for the purpose
of, and only to the extent necessary for, preparing economic or
financial forecasts, projections, analyses, or estimates. Such
inspection or disclosure shall be permitted only upon written
request that sets forth the reasons why such inspection or
disclosure is necessary and is signed by the head of the bureau
or office of the Department of the Treasury requesting the
inspection or disclosure.
``SEC. 606. INSTALLMENT AGREEMENTS; COMPROMISES.
``The sales tax administering authority is authorized to enter into
written agreements with any person under which the person is allowed to
satisfy liability for payment of any tax under this subtitle (and
penalties and interest relating thereto) in installment payments if the
sales tax administering authority determines that such agreement will
facilitate the collection of such liability. The agreement shall remain
in effect for the term of the agreement unless the information that the
person provided to the sales tax administering authority was materially
inaccurate or incomplete. The sales tax administering authority may
compromise any amounts alleged to be due.
``CHAPTER 7--SPECIAL RULES
``Sec. 701. Hobby activities.
``Sec. 702. Gaming activities.
``Sec. 703. Government purchases.
``Sec. 704. Government enterprises.
``Sec. 705. Mixed use property.
``Sec. 706. Not-for-profit organizations.
``SEC. 701. HOBBY ACTIVITIES.
``(a) Hobby Activities.--Neither the exemption afforded by section
102 for intermediate sales nor the credits available pursuant to
section 202 or 203 shall be available for any taxable property or
service purchased for use in an activity if that activity is not
engaged in for-profit.
``(b) Status Deemed.--If the activity has received gross payments
for the sale of taxable property or services that exceed the sum of--
``(1) taxable property and services purchased,
``(2) wages and salary paid, and
``(3) taxes (of any type) paid,
in two or more of the most recent 3 calendar years during which it
operated then the business activity shall be conclusively deemed to be
engaged in for profit.
``SEC. 702. GAMING ACTIVITIES.
``(a) Registration.--Any person selling one or more chances is a
gaming sponsor and shall register, in a form prescribed by the
Secretary, with the sales tax administering authority as a gaming
sponsor.
``(b) Chance Defined.--For purposes of this section, the term
`chance' means a lottery ticket, a raffle ticket, chips, other tokens,
a bet or bets placed, a wager or wagers placed, or any similar device
where the purchase of the right gives rise to an obligation by the
gaming sponsor to pay upon the occurrence of--
``(1) a random or unpredictable event, or
``(2) an event over which neither the gaming sponsor nor
the person purchasing the chance has control over the outcome.
``(c) Chances Not Taxable Property or Service.--Notwithstanding any
other provision in this subtitle, a chance is not taxable property or
services for purposes of section 101.
``(d) Tax on Gaming Services Imposed.--A 23-percent tax is hereby
imposed on the taxable gaming services of a gaming sponsor. This tax
shall be paid and remitted by the gaming sponsor. The tax shall be
remitted by the 15th day of each month with respect to taxable gaming
services during the previous calendar month.
``(e) Taxable Gaming Services Defined.--For purposes of this
section, the term `taxable gaming services' means--
``(1) gross receipts of the gaming sponsor from the sale of
chances, minus
``(2) the sum of--
``(A) total gaming payoffs to chance purchasers (or
their designees), and
``(B) gaming specific taxes (other than the tax
imposed by this section) imposed by the Federal, State,
or local government.
``SEC. 703. GOVERNMENT PURCHASES.
``(a) Government Purchases.--
``(1) Purchases by the federal government.--Purchases by
the Federal Government of taxable property and services shall
be subject to the tax imposed by section 101.
``(2) Purchase by state governments and their political
subdivisions.--Purchases by State governments and their
political subdivisions of taxable property and services shall
be subject to the tax imposed by section 101.
``(b) Cross References.--For purchases by government enterprises
see section 704.
``SEC. 704. GOVERNMENT ENTERPRISES.
``(a) Government Enterprises To Collect and Remit Taxes on Sales.--
Nothing in this subtitle shall be construed to exempt any Federal,
State, or local governmental unit or political subdivision (whether or
not the State is an administering State) operating a government
enterprise from collecting and remitting tax imposed by this subtitle
on any sale of taxable property or services. Government enterprises
shall comply with all duties imposed by this subtitle and shall be
liable for penalties and subject to enforcement action in the same
manner as private persons that are not government enterprises.
``(b) Government Enterprise.--Any entity owned or operated by a
Federal, State, or local governmental unit or political subdivision
that receives gross payments from private persons is a government
enterprise, except that a government-owned entity shall not become a
government enterprise for purposes of this section unless in any
quarter it has revenues from selling taxable property or services that
exceed $2,500.
``(c) Government Enterprises Intermediate Sales.--
``(1) In general.--Government enterprises shall not be
subject to tax on purchases that would not be subject to tax
pursuant to section 102(b) if the government enterprise were a
private enterprise.
``(2) Exception.--Government enterprises may not use the
exemption afforded by section 102(b) to serve as a conduit for
tax-free purchases by government units that would otherwise be
subject to taxation on purchases pursuant to section 703.
Transfers of taxable property or services purchased exempt from
tax from a government enterprise to such government unit shall
be taxable.
``(d) Separate Books of Account.--Any government enterprise must
maintain books of account, separate from the nonenterprise government
accounts, maintained in accordance with generally accepted accounting
principles.
``(e) Trade or Business.--A government enterprise shall be treated
as a trade or business for purposes of this subtitle.
``(f) Enterprise Subsidies Constitute Taxable Purchase.--A transfer
of funds to a government enterprise by a government entity without full
consideration shall constitute a taxable government purchase with the
meaning of section 703 to the extent that the transfer of funds exceeds
the fair market value of the consideration.
``SEC. 705. MIXED USE PROPERTY.
``(a) Mixed Use Property or Service.--
``(1) Mixed use property or service defined.--For purposes
of this section, the term `mixed use property or service' is a
taxable property or taxable service used for both taxable use
or consumption and for a purpose that would not be subject to
tax pursuant to section 102(a)(1).
``(2) Taxable threshold.--Mixed use property or service
shall be subject to tax notwithstanding section 102(a)(1)
unless such property or service is used more than 95 percent
for purposes that would give rise to an exemption pursuant to
section 102(a)(1) during each calendar year (or portions
thereof) it is owned.
``(3) Mixed use property or services credit.--A person
registered pursuant to section 502 is entitled to a business
use conversion credit (pursuant to section 202) equal to the
product of--
``(A) the mixed use property amount,
``(B) the business use ratio, and
``(C) the rate of tax imposed by section 101.
``(4) Mixed use property amount.--The mixed use property
amount for each month (or fraction thereof) in which the
property was owned shall be--
``(A) one-three-hundred-sixtieth of the gross
payments for real property for 360 months or until the
property is sold,
``(B) one-eighty-fourth of the gross payments for
tangible personal property for 84 months or until the
property is sold,
``(C) one-sixtieth of the gross payments for
vehicles for 60 months or until the property is sold,
or
``(D) for other types of taxable property or
services, a reasonable amount or in accordance with
regulations prescribed by the Secretary.
``(5) Business use ratio.--For purposes of this section,
the term `business use ratio' means the ratio of business use
to total use for a particular calendar month (or portion
thereof if the property was owned for only part of said
calendar month). For vehicles, the business use ratio will be
the ratio of business purpose miles to total miles in a
particular calendar month. For real property, the business use
ratio is the ratio of floor space used primarily for business
purposes to total floor space in a particular calendar month.
For tangible personal property (except for vehicles), the
business use ratio is the ratio of total time used for business
purposes to total time used in a particular calendar year. For
other property or services, the business ratio shall be
calculated using a reasonable method. Reasonable records must
be maintained to support a person's business use of the mixed
use property or service.
``(b) Timing of Business Use Conversion Credit Arising Out of
Ownership of Mixed Use Property.--A person entitled to a credit
pursuant to subsection (a)(3) arising out of the ownership of mixed use
property must account for the mixed use on a calendar year basis, and
may file for the credit with respect to mixed use property in any month
following the calendar year giving rise to the credit.
``(c) Cross Reference.--For business use conversion credit, see
section 202.
``SEC. 706. NOT-FOR-PROFIT ORGANIZATIONS.
``(a) Not-for-Profit Organizations.--Dues, contributions, and
similar payments to qualified not-for-profit organizations shall not be
considered gross payments for taxable property or services for purposes
of this subtitle.
``(b) Definition.--For purposes of this section, the term
`qualified not-for-profit organization' means a not-for-profit
organization organized and operated exclusively--
``(1) for religious, charitable, scientific, testing for
public safety, literary, or educational purposes,
``(2) as civic leagues or social welfare organizations,
``(3) as labor, agricultural, or horticultural
organizations,
``(4) as chambers of commerce, business leagues, or trade
associations, or
``(5) as fraternal beneficiary societies, orders, or
associations,
no part of the net earnings of which inures to the benefit of any
private shareholder or individual.
``(c) Qualification Certificates.--Upon application in a form
prescribed by the Secretary, the sales tax administering authority
shall provide qualification certificates to qualified not-for-profit
organizations.
``(d) Taxable Transactions.--If a qualified not-for-profit
organization provides taxable property or services in connection with
contributions, dues, or similar payments to the organization, then it
shall be required to treat the provision of said taxable property or
services as a purchase taxable pursuant to this subtitle at the fair
market value of said taxable property or services.
``(e) Exemptions.--Taxable property and services purchased by a
qualified not-for-profit organization shall be eligible for the
exemptions provided in section 102.
``CHAPTER 8--FINANCIAL INTERMEDIATION SERVICES
``Sec. 801. Determination of financial intermediation services amount.
``Sec. 802. Bad debts.
``Sec. 803. Timing of tax on financial intermediation services.
``Sec. 804. Financing leases.
``Sec. 805. Basic interest rate.
``Sec. 806. Foreign financial intermediation services.
``SEC. 801. DETERMINATION OF FINANCIAL INTERMEDIATION SERVICES AMOUNT.
``(a) Financial Intermediation Services.--For purposes of this
subtitle--
``(1) In general.--The term `financial intermediation
services' means the sum of--
``(A) explicitly charged fees for financial
intermediation services, and
``(B) implicitly charged fees for financial
intermediation services.
``(2) Explicitly charged fees for financial intermediation
services.--The term `explicitly charged fees for financial
intermediation services' includes--
``(A) brokerage fees,
``(B) explicitly stated banking, loan origination,
processing, documentation, credit check fees, or other
similar fees,
``(C) safe-deposit box fees,
``(D) insurance premiums, to the extent such
premiums are not allocable to the investment account of
the underlying insurance policy,
``(E) trustees' fees, and
``(F) other financial services fees (including
mutual fund management, sales, and exit fees).
``(3) Implicitly charged fees for financial intermediation
services.--
``(A) In general.--The term `implicitly charged
fees for financial intermediation services' includes
the gross imputed amount in relation to any underlying
interest-bearing investment, account, or debt.
``(B) Gross imputed amount.--For purposes of
subparagraph (A), the term `gross imputed amount'
means--
``(i) with respect to any underlying
interest-bearing investment or account, the
product of--
``(I) the excess (if any) of the
basic interest rate (as defined in
section 805) over the rate paid on such
investment, and
``(II) the amount of the investment
or account, and
``(ii) with respect to any underlying
interest-bearing debt, the product of--
``(I) the excess (if any) of the
rate paid on such debt over the basic
interest rate (as defined in section
805), and
``(II) the amount of the debt.
``(b) Seller of Financial Intermediation Services.--For purposes of
section 103(a), the seller of financial intermediation services shall
be--
``(1) in the case of explicitly charged fees for financial
intermediation services, the seller shall be the person who
receives the gross payments for the charged financial
intermediation services,
``(2) in the case of implicitly charged fees for financial
intermediation services with respect to any underlying
interest-bearing investment or account, the person making the
interest payments on the interest-bearing investment or
account, and
``(3) in the case of implicitly charged fees for financial
intermediation services with respect to any interest-bearing
debt, the person receiving the interest payments on the
interest-bearing debt.
``SEC. 802. BAD DEBTS.
``(a) In General.--For purposes of section 205(a), a bad debt shall
be a business debt that becomes wholly or partially worthless to the
payee.
``(b) Business Loan.--For purposes of subsection (a), a business
loan or debt is a bona fide loan or debt made for a business purpose
that both parties intended be repaid.
``(c) Determination of Worthlessness.--
``(1) In general.--No loan or debt shall be considered
wholly or partially worthless unless it has been in arrears for
180 days or more, except that if a debt is discharged wholly or
partially in bankruptcy before 180 days has elapsed, then it
shall be deemed wholly or partially worthless on the date of
discharge.
``(2) Determination by holder.--A loan or debt that has
been in arrears for 180 days or more may be deemed wholly or
partially worthless by the holder unless a payment schedule has
been entered into between the debtor and the lender.
``(d) Cross Reference.--See section 205(c) for tax on subsequent
payments.
``SEC. 803. TIMING OF TAX ON FINANCIAL INTERMEDIATION SERVICES.
``The tax on financial intermediation services provided by section
801 with respect to an underlying investment account or debt shall be
imposed and collected with the same frequency that statements are
rendered by the financial institution in connection with the investment
account or debt but not less frequently than quarterly.
``SEC. 804. FINANCING LEASES.
``(a) Definition.--For purposes of this section, the term
`financing lease' means any lease under which the lessee has the right
to acquire the property for 50 percent or less of its fair market value
at the end of the lease term.
``(b) General Rule.--Financing leases shall be taxed in the method
set forth in this section.
``(c) Determination of Principal and Interest Components of
Financing Lease.--The Secretary shall promulgate rules for
disaggregating the principal and interest components of a financing
lease. The principal amount shall be determined to the extent possible
by examination of the contemporaneous sales price or prices of property
the same or similar as the leased property.
``(d) Alternative Method.--In the event that contemporaneous sales
prices or property the same or similar as the leased property are not
available, the principal and interest components of a financing lease
shall be disaggregated using the applicable interest rate (as defined
in section 511) plus 4 percent.
``(e) Principal Component.--The principal component of the
financing lease shall be subject to tax as if a purchase in the amount
of the principal component had been made on the day on which said lease
was executed.
``(f) Interest Component.--The financial intermediation services
amount with respect to the interest component of the financing lease
shall be subject to tax under this subtitle.
``(g) Coordination.--If the principal component and financial
intermediation services amount with respect to the interest component
of a lease have been taxed pursuant to this section, then the gross
lease or rental payments shall not be subject to additional tax.
``SEC. 805. BASIC INTEREST RATE.
``For purposes of this chapter, the basic interest rate with
respect to a debt instrument, investment, financing lease, or account
shall be the applicable interest rate (as determined in section 511).
For debt instruments, investments, or accounts of contractually fixed
interest, the applicable interest rate of the month of issuance shall
apply. For debt instruments, investments, or accounts of variable
interest rates and which have no reference interest rate, the
applicable interest shall be the Federal short-term interest rate for
each month. For debt instruments, investments, or accounts of variable
interest rates and which have a reference interest rate, the applicable
interest shall be the applicable interest rate for the reference
interest rate for each month.
``SEC. 806. FOREIGN FINANCIAL INTERMEDIATION SERVICES.
``(a) Special Rules Relating to International Financial
Intermediation Services.--Financial intermediation services shall be
deemed as used or consumed within the United States if the person (or
any related party as defined in section 205(e)) purchasing the services
is a resident of the United States.
``(b) Designation of Tax Representative.--Any person that provides
financial intermediation services to United States residents must, as a
condition of lawfully providing such services, designate, in a form
prescribed by the Secretary, a tax representative for purposes of this
subtitle. The tax representative shall be responsible for ensuring that
the taxes imposed by this subtitle are collected and remitted and shall
be jointly and severally liable for collecting and remitting these
taxes. The Secretary may require reasonable bond of the tax
representative. The Secretary or a sales tax administering authority
may bring an action seeking a temporary restraining order, an
injunction, or such other order as may be appropriate to enforce this
section.
``(c) Cross References.--For definition of person, see section 901.
``CHAPTER 9--ADDITIONAL MATTERS
``Sec. 901. Additional matters.
``Sec. 902. Transition matters.
``Sec. 903. Wages to be reported to Social Security Administration.
``Sec. 904. Trust Fund revenue.
``Sec. 905. Withholding of tax on nonresident aliens and foreign
corporations.
``SEC. 901. ADDITIONAL MATTERS.
``(a) Intangible Property Antiavoidance Rule.--Notwithstanding
section 2(a)(14)(a)(i), the sale of a copyright or trademark shall be
treated as the sale of taxable services (within the meaning of section
101(a)) if the substance of the sales of copyright or trademark
constituted the sale of the services that produced the copyrighted
material or the trademark.
``(b) De Minimis Payments.--Up to $400 of gross payments per
calendar year shall be exempt from the tax imposed by section 101 if--
``(1) made by a person not in connection with a trade or
business at any time during such calendar year prior to making
said gross payments, and
``(2) made to purchase any taxable property or service
which is imported into the United States by such person for use
or consumption by such person in the United States.
``(c) De Minimis Sales.--Up to $1,200 per calendar year of gross
payments shall be exempt from the tax imposed by section 101 if
received--
``(1) by a person not in connection with a trade or
business during such calendar year prior to the receipt of said
gross payments, and
``(2) in connection with a casual or isolated sale.
``(d) De Minimis Sale of Financial Intermediation Services.--Up to
$10,000 per calendar year of gross payments received by a person from
the sale of financial intermediation services (as determined in
accordance with section 801) shall be exempt from the tax imposed by
section 101. The exemption provided by this subsection is in addition
to other exemptions afforded by this chapter. The exemption provided by
this subsection shall not be available to large sellers (as defined in
section 501(e)(3)).
``(e) Proxy Buying Taxable.--If a registered person provides
taxable property or services to a person either as a gift, prize,
reward, or as remuneration for employment, and such taxable property or
services were not previously subject to tax pursuant to section 101,
then the provision of such taxable property or services by the
registered person shall be deemed the conversion of such taxable
property or services to personal use subject to tax pursuant to section
103(c) at the tax inclusive fair market value of such taxable property
or services.
``(f) Substance Over Form.--The substance of a transaction will
prevail over its form if the transaction has no bona fide economic
purpose and is designed to evade tax imposed by this subtitle.
``(g) Certain Employee Discounts Taxable.--
``(1) Employee discount.--For purposes of this subsection,
the term `employee discount' means an employer's offer of
taxable property or services for sale to its employees or their
families (within the meaning of section 302(b)) for less than
the offer of such taxable property or services to the general
public.
``(2) Employee discount amount.--For purposes of this
subsection, the employee discount amount is the amount by which
taxable property or services are sold pursuant to an employee
discount below the amount for which such taxable property or
services would have been sold to the general public.
``(3) Taxable amount.--If the employee discount amount
exceeds 20 percent of the price that the taxable property or
services would have been sold to the general public, then the
sale of such taxable property or services by the employer shall
be deemed the conversion of such taxable property or services
to personal use and tax shall be imposed on the taxable
employee discount amount. The taxable employee discount amount
shall be--
``(A) the employee discount amount, minus
``(B) 20 percent of the amount for which said
taxable property or services would have been sold to
the general public.
``(h) Saturday, Sunday, or Legal Holiday.--When the last day
prescribed for performing any act required by this subtitle falls on a
Saturday, Sunday, or legal holiday (in the jurisdiction where the
return is to be filed), the performance of such act shall be considered
timely if it is performed on the next day which is not a Saturday,
Sunday, or legal holiday (in the jurisdiction where the return is to be
filed).
``SEC. 902. TRANSITION MATTERS.
``(a) Inventory.--
``(1) Qualified inventory.--Inventory held by a trade or
business on the close of business on December 31, 2020, shall
be qualified inventory if it is sold--
``(A) before December 31, 2021,
``(B) by a registered person, and
``(C) subject to the tax imposed by section 101.
``(2) Costs.--For purposes of this section, qualified
inventory shall have the cost that it had for Federal income
tax purposes for the trade or business as of December 31, 2020
(including any amounts capitalized by reason of section 263A of
the Internal Revenue Code of 1986 as in effect on December 31,
2020).
``(3) Transitional inventory credit.--The trade or business
which held the qualified inventory on the close of business on
December 31, 2020, shall be entitled to a transitional
inventory credit equal to the cost of the qualified inventory
(determined in accordance with paragraph (2)) times the rate of
tax imposed by section 101.
``(4) Timing of credit.--The credit provided under
paragraph (3) shall be allowed with respect to the month when
the inventory is sold subject to the tax imposed by this
subtitle. Said credit shall be reported as an intermediate and
export sales credit and the person claiming said credit shall
attach supporting schedules in the form that the Secretary may
prescribe.
``(b) Work-in-Process.--For purposes of this section, inventory
shall include work-in-process.
``(c) Qualified Inventory Held by Businesses Not Selling Said
Qualified Inventory at Retail.--
``(1) In general.--Qualified inventory held by businesses
that sells said qualified inventory not subject to tax pursuant
to section 102(a) shall be eligible for the transitional
inventory credit only if that business (or a business that has
successor rights pursuant to paragraph (2)) receives
certification in a form satisfactory to the Secretary that the
qualified inventory was subsequently sold subject to the tax
imposed by this subtitle.
``(2) Transitional inventory credit right may be sold.--The
business entitled to the transitional inventory credit may sell
the right to receive said transitional inventory credit to the
purchaser of the qualified inventory that gave rise to the
credit entitlement. Any purchaser of such qualified inventory
(or property or services into which the qualified inventory has
been incorporated) may sell the right to said transitional
inventory credit to a subsequent purchaser of said qualified
inventory (or property or services into which the qualified
inventory has been incorporated).
``SEC. 903. WAGES TO BE REPORTED TO SOCIAL SECURITY ADMINISTRATION.
``(a) In General.--Employers shall submit such information to the
Social Security Administration as is required by the Social Security
Administration to calculate Social Security benefits under title II of
the Social Security Act, including wages paid, in a form prescribed by
the Secretary. A copy of the employer submission to the Social Security
Administration relating to each employee shall be provided to each
employee by the employer.
``(b) Wages.--For purposes of this section, the term `wages' means
all cash remuneration for employment (including tips to an employee by
third parties provided that the employer or employee maintains records
documenting such tips) including self-employment income; except that
such term shall not include--
``(1) any insurance benefits received (including death
benefits),
``(2) pension or annuity benefits received,
``(3) tips received by an employee over $5,000 per year,
and
``(4) benefits received under a government entitlement
program (including Social Security benefits and unemployment
compensation benefits).
``(c) Self-Employment Income.--For purposes of subsection (b), the
term `self-employment income' means gross payments received for taxable
property or services minus the sum of--
``(1) gross payments made for taxable property or services
(without regard to whether tax was paid pursuant to section 101
on such taxable property or services), and
``(2) wages paid by the self-employed person to employees
of the self-employed person.
``SEC. 904. TRUST FUND REVENUE.
``(a) Secretary To Make Allocation of Sales Tax Revenue.--The
Secretary shall allocate the revenue received by virtue of the tax
imposed by section 101 in accordance with this section. The revenue
shall be allocated among--
``(1) the general revenue,
``(2) the old-age and survivors insurance trust fund,
``(3) the disability insurance trust fund,
``(4) the hospital insurance trust fund, and
``(5) the Federal supplementary medical insurance trust
fund.
``(b) General Rule.--
``(1) General revenue.--The proportion of total revenue
allocated to the general revenue shall be the same proportion
as the rate in section 101(b)(4) bears to the combined Federal
tax rate percentage (as defined in section 101(b)(3)).
``(2) The amount of revenue allocated to the old-age and
survivors insurance and disability insurance trust funds shall
be the same proportion as the old-age, survivors and disability
insurance rate (as defined in subsection (d)) bears to the
combined Federal tax rate percentage (as defined in section
101(b)(3)).
``(3) The amount of revenue allocated to the hospital
insurance and Federal supplementary medical insurance trust
funds shall be the same proportion as the hospital insurance
rate (as defined in subsection (e)) bears to the combined
Federal tax rate percentage (as defined in section 101(b)(3)).
``(c) Calendar Year 2021.--Notwithstanding subsection (b), the
revenue allocation pursuant to subsection (a) for calendar year 2021
shall be as follows:
``(1) 64.83 percent of total revenue to general revenue,
``(2) 27.43 percent of total revenue to the old-age and
survivors insurance and disability insurance trust funds, and
``(3) 7.74 percent of total revenue to the hospital
insurance and Federal supplementary medical insurance trust
funds.
``(d) Old-Age, Survivors and Disability Insurance Rate.--The old-
age, survivors and disability insurance rate shall be determined by the
Social Security Administration. The old-age, survivors and disability
insurance rate shall be that sales tax rate which is necessary to raise
the same amount of revenue that would have been raised by imposing a
12.4 percent tax on the Social Security wage base (including self-
employment income) as determined in accordance with chapter 21 of the
Internal Revenue Code most recently in effect prior to the enactment of
this Act. The rate shall be determined using actuarially sound
methodology and announced at least 6 months prior to the beginning of
the calendar year for which it applies.
``(e) Hospital Insurance Rate.--The hospital insurance rate shall
be determined by the Social Security Administration. The hospital
insurance rate shall be that sales tax rate which is necessary to raise
the same amount of revenue that would have been raised by imposing a
2.9 percent tax on the Medicare wage base (including self-employment
income) as determined in accordance with chapter 21 of the Internal
Revenue Code most recently in effect prior to the enactment of this
Act. The rate shall be determined using actuarially sound methodology
and announced at least 6 months prior to the beginning of the calendar
year for which it applies.
``(f) Assistance.--The Secretary shall provide such technical
assistance as the Social Security Administration shall require to
determine the old-age, survivors and disability insurance rate and the
hospital insurance rate.
``(g) Further Allocations.--
``(1) Old-age, survivors and disability insurance.--The
Secretary shall allocate revenue received because of the old-
age, survivors and disability insurance rate to the old-age and
survivors insurance trust fund and the disability insurance
trust fund in accordance with law or, in the absence of other
statutory provision, in the same proportion that the old-age
and survivors insurance trust fund receipts bore to the sum of
the old-age and survivors insurance trust fund receipts and the
disability insurance trust fund receipts in calendar year 2020
(taking into account only receipts pursuant to chapter 21 of
the Internal Revenue Code).
``(2) Hospital insurance.--The Secretary shall allocate
revenue received because of the hospital insurance rate to the
hospital insurance trust fund and the Federal supplementary
medical insurance trust fund in accordance with law or, in the
absence of other statutory provision, in the same proportion
that hospital insurance trust fund receipts bore to the sum of
the hospital insurance trust fund receipts and Federal
supplementary medical insurance trust fund receipts in calendar
year 2020 (taking into account only receipts pursuant to
chapter 21 of the Internal Revenue Code).
``SEC. 905. WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS.
``(a) In General.--All persons, in whatever capacity acting
(including lessees or mortgagors or real or personal property,
fiduciaries, employers, and all officers and employees of the United
States) having control, receipt, custody, disposal, or payment of any
income to the extent such income constitutes gross income from sources
within the United States of any nonresident alien individual, foreign
partnership, or foreign corporation shall deduct and withhold from that
income a tax equal to 23 percent thereof.
``(b) Exception.--No tax shall be required to be deducted from
interest on portfolio debt investments.
``(c) Treaty Countries.--In the case of payments to nonresident
alien individuals, foreign partnerships, or foreign corporations that
have a residence in (or the nationality of a country) that has entered
into a tax treaty with the United States, then the rate of withholding
tax prescribed by the treaty shall govern.''.
SEC. 202. CONFORMING AND TECHNICAL AMENDMENTS.
(a) Repeals.--The following provisions of the Internal Revenue Code
of 1986 are repealed:
(1) Subchapter A of chapter 61 of subtitle D (as
redesignated by section 104) (relating to information and
returns).
(2) Sections 6103 through 6116 of subchapter B of chapter
61 of subtitle D (as so redesignated).
(3) Section 6157 (relating to unemployment taxes).
(4) Section 6163 (relating to estate taxes).
(5) Section 6164 (relating to corporate taxes).
(6) Section 6166 (relating to estate taxes).
(7) Section 6167 (relating to foreign expropriation
losses).
(8) Sections 6201, 6205, and 6207 (relating to
assessments).
(9) Subchapter C of chapter 63 of subtitle D (as so
redesignated) (relating to tax treatment of partnership items).
(10) Section 6305 (relating to collections of certain
liabilities).
(11) Sections 6314, 6315, 6316, and 6317 (relating to
payments of repealed taxes).
(12) Sections 6324, 6324A, and 6324B (relating to liens for
estate and gift taxes).
(13) Section 6344 (relating to cross references).
(14) Section 6411 (relating to carrybacks).
(15) Section 6413 (relating to employment taxes).
(16) Section 6414 (relating to withheld income taxes).
(17) Section 6422 (relating to cross references).
(18) Section 6425 (relating to overpayment of corporate
estimated taxes).
(19) Section 6504 (relating to cross references).
(20) Section 6652 (relating to failure to file certain
information returns).
(21) Sections 6654 and 6655 (relating to failure to payment
estimated income tax).
(22) Section 6662 (relating to penalties).
(23) Sections 6677 through 6711 (relating to income tax
related penalties).
(24) Part II of subchapter B of chapter 68 (relating to
certain information returns).
(25) Part I of subchapter A of chapter 70 (relating to
termination of taxable year).
(26) Section 6864 (relating to certain carrybacks).
(27) Section 7103 (relating to cross references).
(28) Section 7204 (relating to withholding statements).
(29) Section 7211 (relating certain statements).
(30) Section 7231 (relating to failure to obtain certain
licenses).
(31) Section 7270 (relating to insurance policies).
(32) Section 7404 (relating to estate taxes).
(33) Section 7407 (relating to income tax preparers).
(34) Section 7408 (relating to income tax shelters).
(35) Section 7409 (relating to 501(c)(3) organizations).
(36) Section 7427 (relating to income tax preparers).
(37) Section 7428 (relating to 501(c)(3) organizations).
(38) Section 7476 (relating to declaratory judgments
relating to retirement plans).
(39) Section 7478 (relating to declaratory judgments
relating to certain tax-exempt obligations).
(40) Section 7508 (relating to postponing time for certain
actions required by the income, estate, and gift tax).
(41) Section 7509 (relating to Postal Service payroll
taxes).
(42) Section 7512 (relating to payroll taxes).
(43) Section 7517 (relating to estate and gift tax
evaluation).
(44) Section 7518 (relating to Merchant Marine tax
incentives).
(45) Section 7519 (relating to taxable years).
(46) Section 7520 (relating to insurance and annuity
valuation tables).
(47) Section 7523 (relating to reporting Federal income and
outlays on Form 1040s).
(48) Section 7611 (relating to church income tax exemptions
and church unrelated business income tax inquiries).
(49) Section 7654 (relating to possessions' income taxes).
(50) Section 7655 (relating to cross references).
(51) Section 7701(a)(16).
(52) Section 7701(a)(19).
(53) Section 7701(a)(20).
(54) Paragraphs (32) through (38) of section 7701(a).
(55) Paragraphs (41) through (46) of section 7701(a).
(56) Section 7701(b).
(57) Subsections (e) through (m) of section 7701.
(58) Section 7702 (relating to life insurance contracts).
(59) Section 7702A (relating to modified endowment
contracts).
(60) Section 7702B (relating to long-term care insurance).
(61) Section 7703 (relating to the determination of marital
status).
(62) Section 7704 (relating to publicly traded
partnerships).
(63) Section 7805.
(64) Section 7851.
(65) Section 7872.
(66) Section 7873.
(b) Other Conforming and Technical Amendments.--
(1) Section 6151 of such Code is amended by striking
subsection (b) and by redesignating subsection (c) as
subsection (b).
(2) Section 6161 of such Code is amended to read as
follows:
``SEC. 6161. EXTENSION OF TIME FOR PAYING TAX.
``The Secretary, except as otherwise provided in this title, may
extend the time for payment of the amount of the tax shown or required
to be shown on any return, report, or declaration required under
authority of this title for a reasonable period not to exceed 6 months
(12 months in the case of a taxpayer who is abroad).''.
(3) Section 6211(a) of such Code is amended--
(A) by striking ``income, estate, and gift taxes
imposed by subtitles A and B and'',
(B) by striking ``subtitle A or B, or'', and
(C) by striking ``, as defined in subsection
(b)(2),'' in paragraph (2).
(4) Section 6211(b) of such Code is amended to read as
follows:
``(b) Rebate Defined.--For purposes of subsection (a)(2), the term
`rebate' means so much of an abatement, credit, refund, or other
payment, as was made on the ground that the tax imposed by chapter 41,
42, 43, or 44 was less than the excess of the amount specified in
subsection (a)(1) over the rebates previously made.''.
(5) Section 6212(b) of such Code is amended to read as
follows:
``(b) Address for Notice of Deficiency.--In the absence of notice
to the Secretary under section 6903 of the existence of a fiduciary
relationship, notice of a deficiency in respect of a tax imposed by
chapter 42, 43, or 44 if mailed to the taxpayer at his last known
address, shall be sufficient for purposes of such chapter and this
chapter even if such taxpayer is deceased, or is under a legal
disability, or, in the case of a corporation has terminated its
existence.''.
(6) Section 6302(b) of such Code is amended by striking
``21,''.
(7) Section 6302 of such Code is amended by striking
subsections (g) and (i) and by redesignating subsection (h) as
subsection (g).
(8) Section 6325 of such Code is amended by striking
subsection (c) and by redesignating subsections (d) through (h)
as subsections (c) through (g), respectively.
(9) Section 6402(d) of such Code is amended by striking
paragraph (3).
(10) Section 6402 of such Code is amended by striking
subsection (j) and by redesignating subsection (k) as
subsection (j).
(11) Section 6501(b) of such Code is amended--
(A) by striking ``except tax imposed by chapter 3,
4, 21, or 24,'' in paragraph (1), and
(B) by striking paragraph (2) and by redesignating
paragraphs (3) and (4) as paragraphs (2) and (3),
respectively.
(12) Section 6501(c) of such Code is amended by striking
paragraphs (5) through (9).
(13) Section 6501(e) of such Code is amended by striking
``subsection (c)--'' and all that follows through ``subtitle
D'' in paragraph (3) and inserting ``subsection (c), in the
case of a return of a tax imposed under a provision of subtitle
B''.
(14) Section 6501 of such Code is amended by striking
subsections (f) through (k) and subsections (m) and (n) and by
redesignating subsection (1) as subsection (f).
(15) Section 6503(a) of such Code is amended--
(A) by striking paragraph (2),
(B) by striking ``Deficiency.--'' and all that
follows through ``The running'' and inserting
``Deficiency.--The running'', and
(C) by striking ``income, estate, gift and''.
(16) Section 6503 of such Code is amended by striking
subsections (e), (f), (i), and (k) and by redesignating
subsections (g), (h), and (j) as subsections (e), (f), and (g),
respectively.
(17) Section 6511 of such Code is amended by striking
subsections (d) and (g) and by redesignating subsections (f)
and (h) as subsections (d) and (e), respectively.
(18) Section 6512(b)(1) of such Code is amended by striking
``of income tax for the same taxable year, of gift tax for the
same calendar year or calendar quarter, of estate tax in
respect of the taxable estate of the same decedent, or''.
(19) Section 6513 of such Code is amended--
(A) by striking ``(a) Early Return or Advance
Payment of Tax.--'', and
(B) by striking subsections (b) and (e).
(20) Chapter 67 of such Code is amended by striking
subchapters A through D and inserting the following:
``SEC. 6601. INTEREST ON OVERPAYMENTS AND UNDERPAYMENT.
``(a) Underpayments.--If any amount of tax imposed by this title is
not paid on or before the last date prescribed for payment, interest on
such amount at the Federal short-term rate (as defined in section
511(b)) shall be paid from such last date to the date paid.
``(b) Overpayments.--Interest shall be allowed and paid upon any
overpayment in respect of any internal revenue tax at the Federal
short-term rate (as defined in section 511(b)) from 60 days after the
date of the overpayment until the date the overpayment is refunded.''.
(21) Section 6651(a)(1) of such Code is amended by striking
``subchapter A of chapter 61 (other than part III thereof),''.
(22) Section 6656 of such Code is amended by striking
subsection (c) and by redesignating subsection (d) as
subsection (c).
(23) Section 6663 of such Code is amended by striking
subsection (c).
(24) Section 6664(c) of such Code is amended--
(A) by striking ``Exception.--'' and all that
follows through ``No penalty'' and inserting
``Exception.--No penalty'', and
(B) by striking paragraphs (2) and (3).
(25) Chapter 72 of such Code is amended by striking all
matter preceding section 7011.
(26) Section 7422 of such Code is amended by striking
subsections (h) and (i) and by redesignating subsections (j)
and (k) as subsections (h) and (i), respectively.
(27) Section 7451 of such Code is amended to read as
follows:
``SEC. 7451. FEE FOR FILING PETITION.
``The Tax Court is authorized to impose a fee in an amount not in
excess of $60 to be fixed by the Tax Court for the filing of any
petition for the redetermination of a deficiency.''.
(28) Section 7454 of such Code is amended by striking
subsection (b) and by redesignating subsection (c) as
subsection (b).
(29) Section 7463(a) of such Code is amended--
(A) by striking paragraphs (2) and (3),
(B) by redesignating paragraph (4) as paragraph
(2), and
(C) by striking ``D'' in paragraph (2) (as so
redesignated) and inserting ``B''.
(30) Section 7463(c) of such Code is amended by striking
``sections 6214(a) and'' and inserting ``section''.
(31) Section 7463(e) of such Code is amended by striking
``, to the extent that the procedures described in subchapter B
of chapter 63 apply''.
(32) Section 7481 of such Code is amended by striking
subsection (d).
(33) Section 7608 of such Code is amended by striking
``subtitle E'' each place it appears and inserting ``subtitle
C''.
(34) Section 7701(a)(29) of such Code is amended by
striking ``1986'' and inserting ``2019''.
(35) Section 7809(c) of such Code is amended by striking
paragraphs (1) and (4) and by redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(36) Section 7871(a) of such Code is amended by striking
paragraphs (1) and (3) through (6) and by redesignating
paragraphs (2) and (7) as paragraphs (1) and (2), respectively.
(37) Section 7871 of such Code is amended by striking
subsection (c) and by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(38) Section 8021 of such Code is amended by striking
subsection (a) and by redesignating subsections (b) through (f)
as subsections (a) through (e), respectively.
(39) Section 8022(2)(A) of such Code is amended by striking
``, particularly the income tax''.
(40) Section 8023 of such Code is amended by striking
``Internal Revenue Service'' each place it appears and
inserting ``Department of the Treasury''.
(41) Section 9501(b)(2) of such Code is amended by striking
subparagraph (C).
(42) Section 9702(a) of such Code is amended by striking
paragraph (4).
(43) Section 9705(a) of such Code is amended by striking
paragraph (4) and by redesignating paragraph (5) as paragraph
(4).
(44) Section 9706(d)(2)(A) of such Code is amended by
striking ``6103'' and inserting ``605(e)''.
(45) Section 9707 of such Code is amended by striking
subsection (f).
(46) Section 9712(d) of such Code is amended by striking
paragraph (5) and by redesignating paragraph (6) as paragraph
(5).
(47) Section 9803(a) of such Code is amended by striking
``(as defined in section 414(f))''.
TITLE III--OTHER MATTERS
SEC. 301. PHASE-OUT OF ADMINISTRATION OF REPEALED FEDERAL TAXES.
(a) Appropriations.--Appropriations for any expenses of the
Internal Revenue Service including processing tax returns for years
prior to the repeal of the taxes repealed by title I of this Act,
revenue accounting, management, transfer of payroll and wage data to
the Social Security Administration for years after fiscal year 2023
shall not be authorized.
(b) Records.--Federal records related to the administration of
taxes repealed by title I of this Act shall be destroyed by the end of
fiscal year 2023, except that any records necessary to calculate Social
Security benefits shall be retained by the Social Security
Administration and any records necessary to support ongoing litigation
with respect to taxes owed or refunds due shall be retained until final
disposition of such litigation.
(c) Conforming Amendments.--Section 7802 of the Internal Revenue
Code of 1986 is amended--
(1) by striking subsections (a) and (b) and by
redesignating subsections (c) and (d) as subsections (a) and
(b),
(2) by striking ``Internal Revenue Service'' each place it
appears and inserting ``Department of the Treasury'', and
(3) by striking ``Commissioner'' or ``Commissioner of
Internal Revenue'' each place they appear and inserting
``Secretary''.
(d) Effective Date.--The amendments made by subsection (c) shall
take effect on January 1, 2023.
SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES.
(a) In General.--Section 7801 of the Internal Revenue Code of 1986
(relating to the authority of the Department of the Treasury) is
amended by adding at the end the following:
``(d) Excise Tax Bureau.--There shall be in the Department of the
Treasury an Excise Tax Bureau to administer those excise taxes not
administered by the Bureau of Alcohol, Tobacco and Firearms.
``(e) Sales Tax Bureau.--There shall be in the Department of the
Treasury a Sales Tax Bureau to administer the national sales tax in
those States where it is required pursuant to section 404, and to
discharge other Federal duties and powers relating to the national
sales tax (including those required by sections 402, 403, and 405). The
Office of Revenue Allocation shall be within the Sales Tax Bureau.''.
(b) Assistant General Counsels.--Section 7801(a)(2) of such Code is
amended to read as follows:
``(2) Assistant general counsels.--The Secretary of the
Treasury may appoint, without regard to the provisions of the
civil service laws, and fix the duties of not more than 5
assistant general counsels.''.
SEC. 303. SALES TAX INCLUSIVE SOCIAL SECURITY BENEFITS INDEXATION.
Subparagraph (D) of section 215(i)(1) of the Social Security Act
(42 U.S.C. 415(i)(1)) (relating to cost-of-living increases in Social
Security benefits) is amended to read as follows:
``(D)(i) the term `CPI increase percentage', with respect
to a base quarter or cost-of-living quarter in any calendar
year, means the percentage (rounded to the nearest one-tenth of
1 percent) by which the Consumer Price Index for that quarter
(as prepared by the Department of Labor) exceeds such index for
the most recent prior calendar quarter which was a base quarter
under subparagraph (A)(ii) or, if later, the most recent cost-
of-living computation quarter under subparagraph (B),
``(ii) if the Consumer Price Index (as so prepared) does
not include the national sales tax paid, then the term `CPI
increase percentage', with respect to a base quarter or cost-
of-living quarter in any calendar year, means the percentage
(rounded to the nearest one-tenth of 1 percent) by which the
product of--
``(I) the Consumer Price Index for that quarter (as
so prepared), and
``(II) the national sales tax factor,
exceeds such index for the most recent prior calendar quarter
which was a base quarter under subparagraph (A)(ii) or, if
later, the most recent cost of living computation quarter under
subparagraph (B), and
``(iii) the national sales tax factor is equal to one plus
the quotient that is--
``(I) the sales tax rate imposed by section 101 of
the Internal Revenue Code of 2019, divided by
``(II) the quantity that is one minus such sales
tax rate.''.
TITLE IV--SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED
SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED.
If the Sixteenth Amendment to the Constitution of the United States
is not repealed before the end of the 7-year period beginning on the
date of the enactment of this Act, then all provisions of, and
amendments made by, this Act shall not apply to any use or consumption
in any year beginning after December 31 of the calendar year in which
or with which such period ends, except that the Sales Tax Bureau of the
Department of the Treasury shall not be terminated until 6 months after
such December 31.
DIVISION C--CONSTITUTIONAL AMENDMENTS
TITLE I--REPEAL OF 16TH AMENDMENT
SEC. THAT THE FOLLOWING ARTICLE IS PROPOSED AS AN AMENDMENT TO THE
CONSTITUTION OF THE UNITED STATES, WHICH SHALL BE VALID
TO ALL INTENTS AND PURPOSES AS PART OF THE CONSTITUTION
WHEN RATIFIED BY THE LEGISLATURES OF THREE-FOURTHS OF THE
SEVERAL STATES WITHIN SEVEN YEARS AFTER THE DATE OF ITS
SUBMISSION FOR RATIFICATION:
``Article--
``The sixteenth article of amendment to the Constitution of the
United States is hereby repealed.''.
TITLE II--APPORTIONMENT OF REPRESENTATIVES
SEC. THAT THE FOLLOWING ARTICLE IS PROPOSED AS AN AMENDMENT TO THE
CONSTITUTION OF THE UNITED STATES, WHICH SHALL BE VALID
TO ALL INTENTS AND PURPOSES AS PART OF THE CONSTITUTION
WHEN RATIFIED BY THE LEGISLATURES OF THREE-FOURTHS OF THE
SEVERAL STATES WITHIN SEVEN YEARS AFTER THE DATE OF ITS
SUBMISSION FOR RATIFICATION:
``Article--
``Representatives shall be apportioned among the several States
according to their respective numbers, which shall be determined by
counting the number of persons in each State who are citizens of the
United States.''.
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