[Congressional Record Volume 160, Number 146 (Wednesday, December 3, 2014)]
[House]
[Pages H8312-H8323]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ACHIEVING A BETTER LIFE EXPERIENCE ACT OF 2014
Mr. CAMP. Mr. Speaker, pursuant to House Resolution 766, I call up
the bill (H.R. 647) to amend the Internal Revenue Code of 1986 to
provide for the tax treatment of ABLE accounts established under State
programs for the care of family members with disabilities, and for
other purposes, and ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to H. Res. 766, in lieu of the
amendment in the nature of a substitute recommended by the Committee on
Ways and Means, printed in the bill, the amendment in the nature of a
substitute printed in part B of House Report 113-643 is adopted, and
the bill, as amended, is considered read.
The text of the bill, as amended, is as follows:
H.R. 647
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Achieving
a Better Life Experience Act of 2014'' or the ``ABLE Act of
2014''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; etc.
TITLE I--QUALIFIED ABLE PROGRAMS
Sec. 101. Purposes.
Sec. 102. Qualified ABLE programs.
Sec. 103. Treatment of ABLE accounts under certain Federal programs.
Sec. 104. Treatment of able accounts in bankruptcy.
Sec. 105. Investment direction rule for 529 plans.
TITLE II--OFFSETS
Sec. 201. Correction to workers compensation offset age.
Sec. 202. Accelerated application of relative value targets for
misvalued services in the Medicare physician fee
schedule.
Sec. 203. Consistent treatment of vacuum erection systems in Medicare
Parts B and D.
Sec. 204. One-year delay of implementation of oral-only policy under
Medicare ESRD prospective payment system.
Sec. 205. Modification relating to Inland Waterways Trust Fund
financing rate.
Sec. 206. Certified professional employer organizations.
Sec. 207. Exclusion of dividends from controlled foreign corporations
from the definition of personal holding company income
for purposes of the personal holding company rules.
Sec. 208. Inflation adjustment for certain civil penalties under the
Internal Revenue Code of 1986.
Sec. 209. Increase in continuous levy.
TITLE I--QUALIFIED ABLE PROGRAMS
SEC. 101. PURPOSES.
The purposes of this title are as follows:
(1) To encourage and assist individuals and families in
saving private funds for the purpose of supporting
individuals with disabilities to maintain health,
independence, and quality of life.
(2) To provide secure funding for disability-related
expenses on behalf of designated beneficiaries with
disabilities that will supplement, but not supplant, benefits
provided through private insurance, the Medicaid program
under title XIX of the Social Security Act, the supplemental
security income program under title XVI of such Act, the
beneficiary's employment, and other sources.
SEC. 102. QUALIFIED ABLE PROGRAMS.
(a) In General.--Subchapter F of chapter 1 is amended by
inserting after section 529 the following new section:
``SEC. 529A. QUALIFIED ABLE PROGRAMS.
``(a) General Rule.--A qualified ABLE program shall be
exempt from taxation under this subtitle. Notwithstanding the
preceding sentence, such program shall be subject to the
taxes imposed by section 511 (relating to imposition of tax
on unrelated business income of charitable organizations).
``(b) Qualified ABLE Program.--For purposes of this
section--
``(1) In general.--The term `qualified ABLE program' means
a program established and maintained by a State, or agency or
instrumentality thereof--
``(A) under which a person may make contributions for a
taxable year, for the benefit of an individual who is an
eligible individual for such taxable year, to an ABLE account
which is established for the purpose of meeting the qualified
disability expenses of the designated beneficiary of the
account,
``(B) which limits a designated beneficiary to 1 ABLE
account for purposes of this section,
``(C) which allows for the establishment of an ABLE account
only for a designated beneficiary who is a resident of such
State or a resident of a contracting State, and
``(D) which meets the other requirements of this section.
``(2) Cash contributions.--A program shall not be treated
as a qualified ABLE program unless it provides that no
contribution will be accepted--
``(A) unless it is in cash, or
``(B) except in the case of contributions under subsection
(c)(1)(C), if such contribution to an ABLE account would
result in aggregate contributions from all contributors to
the ABLE account for the taxable year exceeding the amount in
effect under section 2503(b) for the calendar year in which
the taxable year begins.
For purposes of this paragraph, rules similar to the rules of
section 408(d)(4) (determined without regard to subparagraph
(B) thereof) shall apply.
``(3) Separate accounting.--A program shall not be treated
as a qualified ABLE program unless it provides separate
accounting for each designated beneficiary.
``(4) Limited investment direction.--A program shall not be
treated as a qualified ABLE program unless it provides that
any designated beneficiary under such program may, directly
or indirectly, direct the investment of any contributions to
the program (or any earnings thereon) no more than 2 times in
any calendar year.
``(5) No pledging of interest as security.--A program shall
not be treated as a qualified ABLE program if it allows any
interest in the program or any portion thereof to be used as
security for a loan.
``(6) Prohibition on excess contributions.--A program shall
not be treated as a qualified ABLE program unless it provides
adequate safeguards to prevent aggregate contributions on
behalf of a designated beneficiary in excess of the limit
established by the State under section 529(b)(6). For
purposes of the preceding sentence, aggregate contributions
include contributions under any prior qualified ABLE program
of any State or agency or instrumentality thereof.
``(c) Tax Treatment.--
``(1) Distributions.--
``(A) In general.--Any distribution under a qualified ABLE
program shall be includible in the gross income of the
distributee in the manner as provided under section 72 to the
extent not excluded from gross income under any other
provision of this chapter.
``(B) Distributions for qualified disability expenses.--For
purposes of this paragraph, if distributions from a qualified
ABLE program--
``(i) do not exceed the qualified disability expenses of
the designated beneficiary, no amount shall be includible in
gross income, and
``(ii) in any other case, the amount otherwise includible
in gross income shall be reduced by an amount which bears the
same ratio to such amount as such expenses bear to such
distributions.
``(C) Change in designated beneficiaries or programs.--
``(i) Rollovers from able accounts.--Subparagraph (A) shall
not apply to any amount paid or distributed from an ABLE
account to the extent that the amount received is paid, not
later than the 60th day after the date of such payment or
distribution, into another ABLE account for the benefit of
the same designated beneficiary or an eligible individual who
is a family member of the designated beneficiary.
``(ii) Change in designated beneficiaries.--Any change in
the designated beneficiary of an interest in a qualified ABLE
program during a taxable year shall not be treated as a
distribution for purposes of subparagraph (A) if the new
beneficiary is an eligible individual for such taxable year
and a member of the family of the former beneficiary.
``(iii) Limitation on certain rollovers.--Clause (i) shall
not apply to any transfer if such transfer occurs within 12
months from the date of a previous transfer to any qualified
ABLE program for the benefit of the designated beneficiary.
``(D) Operating rules.--For purposes of applying section
72--
``(i) except to the extent provided by the Secretary, all
distributions during a taxable year shall be treated as one
distribution, and
``(ii) except to the extent provided by the Secretary, the
value of the contract, income on the contract, and investment
in the contract shall be computed as of the close of the
calendar year in which the taxable year begins.
``(2) Gift tax rules.--For purposes of chapters 12 and 13--
``(A) Contributions.--Any contribution to a qualified ABLE
program on behalf of any designated beneficiary--
``(i) shall be treated as a completed gift to such
designated beneficiary which is not a future interest in
property, and
``(ii) shall not be treated as a qualified transfer under
section 2503(e).
[[Page H8313]]
``(B) Treatment of distributions.--In no event shall a
distribution from an ABLE account to such account's
designated beneficiary be treated as a taxable gift.
``(C) Treatment of transfer to new designated
beneficiary.--The taxes imposed by chapters 12 and 13 shall
not apply to a transfer by reason of a change in the
designated beneficiary under subsection (c)(1)(C).
``(3) Additional tax for distributions not used for
disability expenses.--
``(A) In general.--The tax imposed by this chapter for any
taxable year on any taxpayer who receives a distribution from
a qualified ABLE program which is includible in gross income
shall be increased by 10 percent of the amount which is so
includible.
``(B) Exception.--Subparagraph (A) shall not apply if the
payment or distribution is made to a beneficiary (or to the
estate of the designated beneficiary) on or after the death
of the designated beneficiary.
``(C) Contributions returned before certain date.--
Subparagraph (A) shall not apply to the distribution of any
contribution made during a taxable year on behalf of the
designated beneficiary if--
``(i) such distribution is received on or before the day
prescribed by law (including extensions of time) for filing
such designated beneficiary's return for such taxable year,
and
``(ii) such distribution is accompanied by the amount of
net income attributable to such excess contribution.
Any net income described in clause (ii) shall be included in
gross income for the taxable year in which such excess
contribution was made.
``(4) Loss of able account treatment.--If an ABLE account
is established for a designated beneficiary, no account
subsequently established for such beneficiary shall be
treated as an ABLE account. The preceding sentence shall not
apply in the case of an account established for purposes of a
rollover described in paragraph (1)(C)(i) of this section if
the transferor account is closed as of the end of the 60th
day referred to in paragraph (1)(C)(i).
``(d) Reports.--
``(1) In general.--Each officer or employee having control
of the qualified ABLE program or their designee shall make
such reports regarding such program to the Secretary and to
designated beneficiaries with respect to contributions,
distributions, the return of excess contributions, and such
other matters as the Secretary may require.
``(2) Certain aggregated information.--For research
purposes, the Secretary shall make available to the public
reports containing aggregate information, by diagnosis and
other relevant characteristics, on contributions and
distributions from the qualified ABLE program. In carrying
out the preceding sentence an item may not be made available
to the public if such item can be associated with, or
otherwise identify, directly or indirectly, a particular
individual.
``(3) Notice of establishment of able account.--A qualified
ABLE program shall submit a notice to the Secretary upon the
establishment of an ABLE account. Such notice shall contain
the name and State of residence of the designated beneficiary
and such other information as the Secretary may require.
``(4) Electronic distribution statements.--For purposes of
section 4 of the Achieving a Better Life Experience Act of
2014, States shall submit electronically on a monthly basis
to the Commissioner of Social Security, in the manner
specified by the Commissioner, statements on relevant
distributions and account balances from all ABLE accounts.
``(5) Requirements.--The reports and notices required by
paragraphs (1), (2), and (3) shall be filed at such time and
in such manner and furnished to such individuals at such time
and in such manner as may be required by the Secretary.
``(e) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Eligible individual.--An individual is an eligible
individual for a taxable year if during such taxable year--
``(A) the individual is entitled to benefits based on
blindness or disability under title II or XVI of the Social
Security Act, and such blindness or disability occurred
before the date on which the individual attained age 26, or
``(B) a disability certification with respect to such
individual is filed with the Secretary for such taxable year.
``(2) Disability certification.--
``(A) In general.--The term `disability certification'
means, with respect to an individual, a certification to the
satisfaction of the Secretary by the individual or the parent
or guardian of the individual that--
``(i) certifies that--
``(I) the individual has a medically determinable physical
or mental impairment, which results in marked and severe
functional limitations, and which can be expected to result
in death or which has lasted or can be expected to last for a
continuous period of not less than 12 months, or is blind
(within the meaning of section 1614(a)(2) of the Social
Security Act), and
``(II) such blindness or disability occurred before the
date on which the individual attained age 26, and
``(ii) includes a copy of the individual's diagnosis
relating to the individual's relevant impairment or
impairments, signed by a physician meeting the criteria of
section 1861(r)(1) of the Social Security Act.
``(B) Restriction on use of certification.--No inference
may be drawn from a disability certification for purposes of
establishing eligibility for benefits under title II, XVI, or
XIX of the Social Security Act.
``(3) Designated beneficiary.--The term `designated
beneficiary' in connection with an ABLE account established
under a qualified ABLE program means the eligible individual
who established an ABLE account and is the owner of such
account.
``(4) Member of family.--The term `member of the family'
means, with respect to any designated beneficiary, an
individual who bears a relationship to such beneficiary which
is described in subparagraph section 152(d)(2)(B). For
purposes of the preceding sentence, a rule similar to the
rule of section 152(f)(1)(B) shall apply.
``(5) Qualified disability expenses.--The term `qualified
disability expenses' means any expenses related to the
eligible individual's blindness or disability which are made
for the benefit of an eligible individual who is the
designated beneficiary, including the following expenses:
education, housing, transportation, employment training and
support, assistive technology and personal support services,
health, prevention and wellness, financial management and
administrative services, legal fees, expenses for oversight
and monitoring, funeral and burial expenses, and other
expenses, which are approved by the Secretary under
regulations and consistent with the purposes of this section.
``(6) ABLE account.--The term `ABLE account' means an
account established by an eligible individual, owned by such
eligible individual, and maintained under a qualified ABLE
program.
``(7) Contracting state.--The term `contracting State'
means a State without a qualified ABLE program which has
entered into a contract with a State with a qualified ABLE
program to provide residents of the contracting State access
to a qualified ABLE program.
``(f) Transfer to State.--Subject to any outstanding
payments due for qualified disability expenses, upon the
death of the designated beneficiary, all amounts remaining in
the qualified ABLE account not in excess of the amount equal
to the total medical assistance paid for the designated
beneficiary after the establishment of the account, net of
any premiums paid from the account or paid by or on behalf of
the beneficiary to a Medicaid Buy-In program under any State
Medicaid plan established under title XIX of the Social
Security Act, shall be distributed to such State upon filing
of a claim for payment by such State. For purposes of this
paragraph, the State shall be a creditor of an ABLE account
and not a beneficiary. Subsection (c)(3) shall not apply to a
distribution under the preceding sentence.
``(g) Regulations.--The Secretary shall prescribe such
regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
section, including regulations--
``(1) to enforce the 1 ABLE account per eligible individual
limit,
``(2) providing for the information required to be
presented to open an ABLE account,
``(3) to generally define qualified disability expenses,
``(4) developed in consultation with the Commissioner of
Social Security, relating to disability certifications and
determinations of disability, including those conditions
deemed to meet the requirements of subsection (e)(1)(B),
``(5) to prevent fraud and abuse with respect to amounts
claimed as qualified disability expenses,
``(6) under chapters 11, 12, and 13 of this title, and
``(7) to allow for transfers from one ABLE account to
another ABLE account.''.
(b) Tax on Excess Contributions.--
(1) In general.--Subsection (a) of section 4973 (relating
to tax on excess contributions to certain tax-favored
accounts and annuities) is amended by striking ``or'' at the
end of paragraph (4), by inserting ``or'' at the end of
paragraph (5), and by inserting after paragraph (5) the
following new paragraph:
``(6) an ABLE account (within the meaning of section
529A),''.
(2) Excess contribution.--Section 4973 is amended by adding
at the end the following new subsection:
``(h) Excess Contributions to ABLE Account.--For purposes
of this section--
``(1) In general.--In the case of an ABLE account (within
the meaning of section 529A), the term `excess contributions'
means the amount by which the amount contributed for the
taxable year to such account (other than contributions under
section 529A(c)(1)(C)) exceeds the contribution limit under
section 529A(b)(2)(B).
``(2) Special rule.--For purposes of this subsection, any
contribution which is distributed out of the ABLE account in
a distribution to which the last sentence of section
529A(b)(2) applies shall be treated as an amount not
contributed.''.
(c) Penalty for Failure to File Reports.--Section
6693(a)(2) is amended by striking ``and'' at the end of
subparagraph (D), by redesignating subparagraph (E) as
subparagraph (F), and by inserting after subparagraph (D) the
following:
``(E) section 529A(d) (relating to qualified ABLE
programs), and''.
(d) Records.--Section 552a(a)(8)(B) of title 5, United
States Code, is amended--
(1) in clause (viii), by striking ``or'' at the end;
(2) in clause (ix), by adding ``or'' at the end; and
(3) by adding at the end the following new clause:
``(x) matches performed pursuant to section 3(d)(4) of the
Achieving a Better Life Experience Act of 2014;''.
(e) Other Conforming Amendments.--
(1) Section 26(b)(2) is amended by striking ``and'' at the
end of subparagraph (W), by striking the period at the end of
subparagraph (X) and inserting ``, and'', and by inserting
after subparagraph (X) the following:
``(Y) section 529A(c)(3)(A) (relating to additional tax on
ABLE account distributions not used for qualified disability
expenses).''.
[[Page H8314]]
(2) Section 877A is amended--
(A) in subsection (e)(2) by inserting ``a qualified ABLE
program (as defined in section 529A),'' after ``529),'', and
(B) in subsection (g)(6) by inserting ``529A(c)(3),'' after
``529(c)(6),''.
(3) Section 4965(c) is amended by striking ``or'' at the
end of paragraph (6), by striking the period at the end of
paragraph (7) and inserting ``, or'', and by inserting after
paragraph (7) the following new paragraph:
``(8) a program described in section 529A.''.
(4) The heading for part VIII of subchapter F of chapter 1
is amended by striking ``higher education'' and inserting
``certain''.
(5) The item in the table of parts for subchapter F of
chapter 1 relating to part VIII is amended to read as
follows:
``Part VIII. Certain Savings Entities.''.
(6) The table of sections for part VIII of subchapter F of
chapter 1 is amended by inserting after the item relating to
section 529 the following new item:
``Sec. 529A. Qualified ABLE programs.''.
(7) Paragraph (4) of section 1027(g) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4)) is
amended by inserting ``, 529A'' after ``529''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2014.
(2) Regulations.--The Secretary of the Treasury (or the
Secretary's designee) shall promulgate the regulations or
other guidance required under section 529A(g) of the Internal
Revenue Code of 1986, as added by subsection (a), not later
than 6 months after the date of the enactment of this Act.
SEC. 103. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN FEDERAL
PROGRAMS.
(a) Account Funds Disregarded for Purposes of Certain Other
Means-Tested Federal Programs.--Notwithstanding any other
provision of Federal law that requires consideration of 1 or
more financial circumstances of an individual, for the
purpose of determining eligibility to receive, or the amount
of, any assistance or benefit authorized by such provision to
be provided to or for the benefit of such individual, any
amount (including earnings thereon) in the ABLE account
(within the meaning of section 529A of the Internal Revenue
Code of 1986) of such individual, any contributions to the
ABLE account of the individual, and any distribution for
qualified disability expenses (as defined in subsection
(e)(5) of such section) shall be disregarded for such purpose
with respect to any period during which such individual
maintains, makes contributions to, or receives distributions
from such ABLE account, except that, in the case of the
supplemental security income program under title XVI of the
Social Security Act--
(1) a distribution for housing expenses (within the meaning
of such subsection) shall not be so disregarded, and
(2) in the case of such program, any amount (including such
earnings) in such ABLE account shall be considered a resource
of the designated beneficiary to the extent that such amount
exceeds $100,000.
(b) Suspension of SSI Benefits During Periods of Excessive
Account Funds.--
(1) In general.--The benefits of an individual under the
supplemental security income program under title XVI of the
Social Security Act shall not be terminated, but shall be
suspended, by reason of excess resources of the individual
attributable to an amount in the ABLE account (within the
meaning of section 529A of the Internal Revenue Code of 1986)
of the individual not disregarded under subsection (a) of
this section.
(2) No impact on medicaid eligibility.--An individual who
would be receiving payment of such supplemental security
income benefits but for the application of paragraph (1)
shall be treated for purposes of title XIX of the Social
Security Act as if the individual continued to be receiving
payment of such benefits.
(c) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANKRUPTCY.
(a) Exclusion From Property of the Estate.--Section 541(b)
of the title 11, United States Code, is amended--
(1) in paragraph (8), by striking ``or'' at the end;
(2) in paragraph (9), by striking the period at the end and
inserting a semicolon and ``or''; and
(3) by inserting after paragraph (9) the following:
``(10) funds placed in an account of a qualified ABLE
program (as defined in section 529A(b) of the Internal
Revenue Code of 1986) not later than 365 days before the date
of the filing of the petition in a case under this title,
but--
``(A) only if the designated beneficiary of such account
was a child, stepchild, grandchild, or stepgrandchild of the
debtor for the taxable year for which funds were placed in
such account;
``(B) only to the extent that such funds--
``(i) are not pledged or promised to any entity in
connection with any extension of credit; and
``(ii) are not excess contributions (as described in
section 4973(h) of the Internal Revenue Code of 1986); and
``(C) in the case of funds placed in all such accounts
having the same designated beneficiary not earlier than 720
days nor later than 365 days before such date, only so much
of such funds as does not exceed $6,225.''.
(b) Debtor's Monthly Expenses.--Section
707(b)(2)(A)(ii)(II) of title 11, United States Code, is
amended by adding at the end ``Such monthly expenses may
include, if applicable, contributions to an account of a
qualified ABLE program to the extent such contributions are
not excess contributions (as described in section 4973(h) of
the Internal Revenue Code of 1986) and if the designated
beneficiary of such account is a child, stepchild,
grandchild, or stepgrandchild of the debtor.''.
(c) Record of Debtor's Interest.--Section 521(c) of title
11, United States Code, is amended by inserting ``, an
interest in an account in a qualified ABLE program (as
defined in section 529A(b) of such Code,'' after ``Internal
Revenue Code of 1986)''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to cases commenced under title 11,
United States Code, on or after the date of the enactment of
this Act.
SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS.
(a) Amendments Relating to Investment Direction Rule for
529 Plans.--
(1) Paragraph (4) of section 529(b) is amended by striking
``may not directly or indirectly'' and all that follows and
inserting ``may, directly or indirectly, direct the
investment of any contributions to the program (or any
earnings thereon) no more than 2 times in any calendar
year.''.
(2) The heading of paragraph (4) of section 529(b)is
amended by striking ``No'' and inserting ``Limited''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2014.
TITLE II--OFFSETS
SEC. 201. CORRECTION TO WORKERS COMPENSATION OFFSET AGE.
(a) Retirement Age.--Section 224(a) of the Social Security
Act (42 U.S.C. 424a(a)) is amended, in the matter preceding
paragraph (1), by striking ``the age of 65'' and inserting
``retirement age (as defined in section 216(l)(1))''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to any individual who attains 65
years of age on or after the date that is 12 months after the
date of the enactment of this Act.
SEC. 202. ACCELERATED APPLICATION OF RELATIVE VALUE TARGETS
FOR MISVALUED SERVICES IN THE MEDICARE
PHYSICIAN FEE SCHEDULE.
Section 1848(c) of the Social Security Act (42 U.S.C.
1395w-4(c)) is amended--
(1) in subclause (VIII) of paragraph (2)(B)(v), as added by
section 220(d)(2) of the Protecting Access to Medicare Act of
2014 (Public Law 113-93)--
(A) by striking ``2017'' and inserting ``2016''; and
(B) by redesignating such subclause as subclause (IX);
(2) in paragraph (2)(O)--
(A) in the matter preceding clause (i), by striking ``2017
through 2020'' and inserting ``2016 through 2018'';
(B) in clause (iii), by striking ``2017'' and inserting
``2016''; and
(C) in clause (v), by inserting ``(or, for 2016, 1.0
percent)'' after ``0.5 percent''; and
(3) in paragraph (7), by striking ``2017'' and inserting
``2016''.
SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION SYSTEMS IN
MEDICARE PARTS B AND D.
Section 1834(a)(1) of the Social Security Act (42 U.S.C.
1395m(a)(1)) is amended by adding at the end the following
new subparagraph:
``(I) Treatment of vacuum erection systems.--Effective for
items and services furnished on and after July 1, 2015,
vacuum erection systems described as prosthetic devices
described in section 1861(s)(8) shall be treated in the same
manner as erectile dysfunction drugs are treated for purposes
of section 1860D-2(e)(2)(A).''.
SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY
POLICY UNDER MEDICARE ESRD PROSPECTIVE PAYMENT
SYSTEM.
Section 632(b)(1) of the American Taxpayer Relief Act of
2012 (42 U.S.C. 1395rr note), as amended by section 217(a)(1)
of the Protecting Access to Medicare Act of 2014 (Public Law
113-93), is amended by striking ``2024'' and inserting
``2025''.
SEC. 205. MODIFICATION RELATING TO INLAND WATERWAYS TRUST
FUND FINANCING RATE.
(a) In General.--Section 4042(b)(2)(A) is amended to read
as follows:
``(A) The Inland Waterways Trust Fund financing rate is 29
cents per gallon.''.
(b) Effective Date.--The amendment made by this section
shall apply to fuel used after March 31, 2015.
SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
(a) Employment Taxes.--Chapter 25 is amended by adding at
the end the following new section:
``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
``(a) General Rules.--For purposes of the taxes, and other
obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer (and no other person shall be
treated as the employer) of any work site employee performing
services for any customer of such organization, but only with
respect to remuneration remitted by such organization to such
work site employee, and
``(2) the exemptions, exclusions, definitions, and other
rules which are based on type of employer and which would
(but for paragraph (1)) apply shall apply with respect to
such taxes imposed on such remuneration.
``(b) Successor Employer Status.--For purposes of sections
3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
``(1) a certified professional employer organization
entering into a service contract with a
[[Page H8315]]
customer with respect to a work site employee shall be
treated as a successor employer and the customer shall be
treated as a predecessor employer during the term of such
service contract, and
``(2) a customer whose service contract with a certified
professional employer organization is terminated with respect
to a work site employee shall be treated as a successor
employer and the certified professional employer organization
shall be treated as a predecessor employer.
``(c) Liability of Certified Professional Employer
Organization.--Solely for purposes of its liability for the
taxes and other obligations imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer of any individual (other than a
work site employee or a person described in subsection (f))
who is performing services covered by a contract meeting the
requirements of section 7705(e)(2), but only with respect to
remuneration remitted by such organization to such
individual, and
``(2) the exemptions, exclusions, definitions, and other
rules which are based on type of employer and which would
(but for paragraph (1)) apply shall apply with respect to
such taxes imposed on such remuneration.
``(d) Treatment of Credits.--
``(1) In general.--For purposes of any credit specified in
paragraph (2)--
``(A) such credit with respect to a work site employee
performing services for the customer applies to the customer,
not the certified professional employer organization,
``(B) the customer, and not the certified professional
employer organization, shall take into account wages and
employment taxes--
``(i) paid by the certified professional employer
organization with respect to the work site employee, and
``(ii) for which the certified professional employer
organization receives payment from the customer, and
``(C) the certified professional employer organization
shall furnish the customer and the Secretary with any
information necessary for the customer to claim such credit.
``(2) Credits specified.--A credit is specified in this
paragraph if such credit is allowed under--
``(A) section 41 (credit for increasing research activity),
``(B) section 45A (Indian employment credit),
``(C) section 45B (credit for portion of employer social
security taxes paid with respect to employee cash tips),
``(D) section 45C (clinical testing expenses for certain
drugs for rare diseases or conditions),
``(E) section 45R (employee health insurance expenses of
small employers),
``(F) section 51 (work opportunity credit),
``(G) section 1396 (empowerment zone employment credit),
and
``(H) any other section as provided by the Secretary.
``(e) Special Rule for Related Party.--This section shall
not apply in the case of a customer which bears a
relationship to a certified professional employer
organization described in section 267(b) or 707(b). For
purposes of the preceding sentence, such sections shall be
applied by substituting `10 percent' for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes
of the taxes imposed under this subtitle, an individual with
net earnings from self-employment derived from the customer's
trade or business (including a partner in a partnership that
is a customer) is not a work site employee with respect to
remuneration paid by a certified professional employer
organization.
``(g) Reporting Requirements and Obligations.--The
Secretary shall develop such reporting and recordkeeping
rules, regulations, and procedures as the Secretary
determines necessary or appropriate to ensure compliance with
this title by certified professional employer organizations
or persons that have been so certified. Such rules shall
include--
``(1) notification of the Secretary in such manner as the
Secretary shall prescribe in the case of the commencement or
termination of a service contract described in section
7705(e)(2) between such a person and a customer, and the
employer identification number of such customer,
``(2) such information as the Secretary determines
necessary for the customer to claim the credits identified in
subsection (d) and the manner in which such information is to
be provided, as prescribed by the Secretary, and
``(3) such other information as the Secretary determines is
essential to promote compliance with respect to the credits
identified in subsection (d) and section 3302, and
shall be designed in a manner which streamlines, to the
extent possible, the application of requirements of this
section and section 7705, the exchange of information between
a certified professional employer organization and its
customers, and the reporting and recordkeeping obligations of
the certified professional employer organization.
``(h) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Certified Professional Employer Organization Defined.--
Chapter 79 is amended by adding at the end the following new
section:
``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
``(a) In General.--For purposes of this title, the term
`certified professional employer organization' means a person
who applies to be treated as a certified professional
employer organization for purposes of section 3511 and has
been certified by the Secretary as meeting the requirements
of subsection (b).
``(b) Certification Requirements.--A person meets the
requirements of this subsection if such person--
``(1) demonstrates that such person (and any owner,
officer, and other persons as may be specified in
regulations) meets such requirements as the Secretary shall
establish, including requirements with respect to tax status,
background, experience, business location, and annual
financial audits,
``(2) agrees that it will satisfy the bond and independent
financial review requirements of subsection (c) on an ongoing
basis,
``(3) agrees that it will satisfy such reporting
obligations as may be imposed by the Secretary,
``(4) computes its taxable income using an accrual method
of accounting unless the Secretary approves another method,
``(5) agrees to verify on such periodic basis as the
Secretary may prescribe that it continues to meet the
requirements of this subsection, and
``(6) agrees to notify the Secretary in writing within such
time as the Secretary may prescribe of any change that
materially affects the continuing accuracy of any agreement
or information that was previously made or provided under
this subsection.
``(c) Bond and Independent Financial Review.--
``(1) In general.--An organization meets the requirements
of this paragraph if such organization--
``(A) meets the bond requirements of paragraph (2), and
``(B) meets the independent financial review requirements
of paragraph (3).
``(2) Bond.--
``(A) In general.--A certified professional employer
organization meets the requirements of this paragraph if the
organization has posted a bond for the payment of taxes under
subtitle C (in a form acceptable to the Secretary) that is in
an amount at least equal to the amount specified in
subparagraph (B).
``(B) Amount of bond.--For the period April 1 of any
calendar year through March 31 of the following calendar
year, the amount of the bond required is equal to the greater
of--
``(i) 5 percent of the organization's liability under
section 3511 for taxes imposed by subtitle C during the
preceding calendar year (but not to exceed $1,000,000), or
``(ii) $50,000.
``(3) Independent financial review requirements.--A
certified professional employer organization meets the
requirements of this paragraph if such organization--
``(A) has, as of the most recent audit date, caused to be
prepared and provided to the Secretary (in such manner as the
Secretary may prescribe) an opinion of an independent
certified public accountant as to whether the certified
professional employer organization's financial statements are
presented fairly in accordance with generally accepted
accounting principles, and
``(B) provides to the Secretary an assertion regarding
Federal employment tax payments and an examination level
attestation on such assertion from an independent certified
public accountant not later than the last day of the second
month beginning after the end of each calendar quarter.
Such assertion shall state that the organization has withheld
and made deposits of all taxes imposed by chapters 21, 22,
and 24 in accordance with regulations imposed by the
Secretary for such calendar quarter and such examination
level attestation shall state that such assertion is fairly
stated, in all material respects.
``(4) Controlled group rules.--For purposes of the
requirements of paragraphs (2) and (3), all certified
professional employer organizations that are members of a
controlled group within the meaning of sections 414(b) and
(c) shall be treated as a single organization.
``(5) Failure to file assertion and attestation.--If the
certified professional employer organization fails to file
the assertion and attestation required by paragraph (3) with
respect to any calendar quarter, then the requirements of
paragraph (3) with respect to such failure shall be treated
as not satisfied for the period beginning on the due date for
such attestation.
``(6) Audit date.--For purposes of paragraph (3)(A), the
audit date shall be six months after the completion of the
organization's fiscal year.
``(d) Suspension and Revocation Authority.--The Secretary
may suspend or revoke a certification of any person under
subsection (b) for purposes of section 3511 if the Secretary
determines that such person is not satisfying the agreements
or requirements of subsections (b) or (c), or fails to
satisfy applicable accounting, reporting, payment, or deposit
requirements.
``(e) Work Site Employee.--For purposes of this title--
``(1) In general.--The term `work site employee' means,
with respect to a certified professional employer
organization, an individual who--
``(A) performs services for a customer pursuant to a
contract which is between such customer and the certified
professional employer organization and which meets the
requirements of paragraph (2), and
``(B) performs services at a work site meeting the
requirements of paragraph (3).
``(2) Service contract requirements.--A contract meets the
requirements of this paragraph with respect to an individual
performing services for a customer if such contract is in
writing and provides that the certified professional employer
organization shall--
``(A) assume responsibility for payment of wages to such
individual, without regard to the receipt or adequacy of
payment from the customer for such services,
``(B) assume responsibility for reporting, withholding, and
paying any applicable taxes under subtitle C, with respect to
such individual's wages, without regard to the receipt or
adequacy of payment from the customer for such services,
[[Page H8316]]
``(C) assume responsibility for any employee benefits which
the service contract may require the certified professional
employer organization to provide, without regard to the
receipt or adequacy of payment from the customer for such
benefits,
``(D) assume responsibility for recruiting, hiring, and
firing workers in addition to the customer's responsibility
for recruiting, hiring, and firing workers,
``(E) maintain employee records relating to such
individual, and
``(F) agree to be treated as a certified professional
employer organization for purposes of section 3511 with
respect to such individual.
``(3) Work site coverage requirement.--The requirements of
this paragraph are met with respect to an individual if at
least 85 percent of the individuals performing services for
the customer at the work site where such individual performs
services are subject to 1 or more contracts with the
certified professional employer organization which meet the
requirements of paragraph (2) (but not taking into account
those individuals who are excluded employees within the
meaning of section 414(q)(5)).
``(f) Public Disclosure.--The Secretary shall make
available to the public the name and address of--
``(1) each person certified as a professional employer
organization under subsection (a), and
``(2) each person whose certification as a professional
employer organization is suspended or revoked under
subsection (d).
``(g) Determination of Employment Status.--Except to the
extent necessary for purposes of section 3511, nothing in
this section shall be construed to affect the determination
of who is an employee or employer for purposes of this title.
``(h) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(c) Conforming Amendments.--
(1) Section 3302 is amended by adding at the end the
following new subsection:
``(h) Treatment of Certified Professional Employer
Organizations.--If a certified professional employer
organization (as defined in section 7705), or a customer of
such organization, makes a contribution to the State's
unemployment fund with respect to wages paid to a work site
employee, such certified professional employer organization
shall be eligible for the credits available under this
section with respect to such contribution.''.
(2) Section 3303(a) is amended--
(A) by striking the period at the end of paragraph (3) and
inserting ``; and'' and by inserting after paragraph (3) the
following new paragraph:
``(4) if the taxpayer is a certified professional employer
organization (as defined in section 7705) that is treated as
the employer under section 3511, such certified professional
employer organization is permitted to collect and remit, in
accordance with paragraphs (1), (2), and (3), contributions
during the taxable year to the State unemployment fund with
respect to a work site employee.'', and
(B) in the last sentence--
(i) by striking ``paragraphs (1), (2), and (3)'' and
inserting ``paragraphs (1), (2), (3), and (4)'', and
(ii) by striking ``paragraph (1), (2), or (3)'' and
inserting ``paragraph (1), (2), (3), or (4)''.
(3) Section 6053(c) is amended by adding at the end the
following new paragraph:
``(8) Certified professional employer organizations.--For
purposes of any report required by this subsection, in the
case of a certified professional employer organization that
is treated under section 3511 as the employer of a work site
employee, the customer with respect to whom a work site
employee performs services shall be the employer for purposes
of reporting under this section and the certified
professional employer organization shall furnish to the
customer and the Secretary any information the Secretary
prescribes as necessary to complete such reporting no later
than such time as the Secretary shall prescribe.''.
(4) Section 6652 is amended by adding at the end the
following new subsection:
``(n) Failure to Make Reports Required Under Sections 3511,
6053(c)(8), and 7705.--In the case of a failure to make a
report required under section 3511, 6053(c)(8), or 7705 which
contains the information required by such section on the date
prescribed therefor (determined with regard to any extension
of time for filing), there shall be paid (on notice and
demand by the Secretary and in the same manner as tax) by the
person failing to make such report, an amount equal to $50
for each report with respect to which there was such a
failure. In the case of any failure due to negligence or
intentional disregard the preceding sentence shall be applied
by substituting `$100' for `$50'.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended by
adding at the end the following new item:
``Sec. 3511. Certified professional employer organizations.''.
(2) The table of sections for chapter 79 is amended by
inserting after the item relating to section 7704 the
following new item:
``Sec. 7705. Certified professional employer organizations.''.
(f) User Fees.--Section 7528(b) is amended by adding at the
end the following new paragraph:
``(4) Certified professional employer organizations.--The
fee charged under the program in connection with the
certification by the Secretary of a professional employer
organization under section 7705 shall be an annual fee not to
exceed $1,000 per year.''.
(g) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply with respect to wages for services performed on or
after January 1 of the first calendar year beginning more
than 12 months after the date of the enactment of this Act.
(2) Certification program.--The Secretary of the Treasury
shall establish the certification program described in
section 7705(b) of the Internal Revenue Code of 1986, as
added by subsection (b), not later than 6 months before the
effective date determined under paragraph (1).
(h) No Inference.--Nothing contained in this section or the
amendments made by this section shall be construed to create
any inference with respect to the determination of who is an
employee or employer--
(1) for Federal tax purposes (other than the purposes set
forth in the amendments made by this section), or
(2) for purposes of any other provision of law.
SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN
CORPORATIONS FROM THE DEFINITION OF PERSONAL
HOLDING COMPANY INCOME FOR PURPOSES OF THE
PERSONAL HOLDING COMPANY RULES.
(a) In General.--Section 543(a)(1) is amended--
(1) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively, and
(2) by inserting after subparagraph (B) the following:
``(C) dividends received by a United States shareholder (as
defined in section 951(b)) from a controlled foreign
corporation (as defined in section 957(a)),''.
(b) Effective Date.--The amendments made by this Act shall
apply to taxable years ending on or after the date of the
enactment of this Act.
SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES
UNDER THE INTERNAL REVENUE CODE OF 1986.
(a) Failure to File Tax Return or Pay Tax.--Section 6651 is
amended by adding at the end the following new subsection:
``(i) Adjustment for Inflation.--
``(1) In general.--In the case of any return required to be
filed in a calendar year beginning after 2014, the $135
dollar amount under subsection (a) shall be increased by such
dollar amount multiplied by the cost-of-living adjustment
determined under section 1(f)(3) determined by substituting
`calendar year 2013' for `calendar year 1992' in subparagraph
(B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph (1)
is not a multiple of $5, such amount shall be rounded to the
next lowest multiple of $5.''.
(b) Failure to File Certain Information Returns,
Registration Statements, etc.--
(1) In general.--Section 6652(c) is amended by adding at
the end the following new paragraph:
``(6) Adjustment for inflation.--
``(A) In general.--In the case of any failure relating to a
return required to be filed in a calendar year beginning
after 2014, each of the dollar amounts under paragraphs (1),
(2), and (3) shall be increased by such dollar amount
multiplied by the cost-of-living adjustment determined under
section 1(f)(3) determined by substituting `calendar year
2013' for `calendar year 1992' in subparagraph (B) thereof.
``(B) Rounding.--If any amount adjusted under subparagraph
(A)--
``(i) is not less than $5,000 and is not a multiple of
$500, such amount shall be rounded to the next lowest
multiple of $500, and
``(ii) is not described in clause (i) and is not a multiple
of $5, such amount shall be rounded to the next lowest
multiple of $5.''.
(2) Conforming amendments.--
(A) The last sentence of section 6652(c)(1)(A) is amended
by striking ``the first sentence of this subparagraph shall
be applied by substituting `$100' for `$20' and'' and
inserting ``in applying the first sentence of this
subparagraph, the amount of the penalty for each day during
which a failure continues shall be $100 in lieu of the amount
otherwise specified, and''.
(B) Section 6652(c)(2)(C)(ii) is amended by striking ``the
first sentence of paragraph (1)(A)'' and all that follows and
inserting ``in applying the first sentence of paragraph
(1)(A), the amount of the penalty for each day during which a
failure continues shall be $100 in lieu of the amount
otherwise specified, and in lieu of applying the second
sentence of paragraph (1)(A), the maximum penalty under
paragraph (1)(A) shall not exceed $50,000, and''.
(c) Other Assessable Penalties With Respect to the
Preparation of Tax Returns for Other Persons.--Section 6695
is amended by adding at the end the following new subsection:
``(h) Adjustment for Inflation.--
``(1) In general.--In the case of any failure relating to a
return or claim for refund filed in a calendar year beginning
after 2014, each of the dollar amounts under subsections (a),
(b), (c), (d), (e), (f), and (g) shall be increased by such
dollar amount multiplied by the cost-of-living adjustment
determined under section 1(f)(3) determined by substituting
`calendar year 2013' for `calendar year 1992' in subparagraph
(B) thereof.
``(2) Rounding.--If any amount adjusted under subparagraph
(A)--
``(A) is not less than $5,000 and is not a multiple of
$500, such amount shall be rounded to the next lowest
multiple of $500, and
``(B) is not described in clause (i) and is not a multiple
of $5, such amount shall be rounded to the next lowest
multiple of $5.''.
(d) Failure to File Partnership Return.--Section 6698 is
amended by adding at the end the following new subsection:
``(e) Adjustment for Inflation.--
``(1) In general.--In the case of any return required to be
filed in a calendar year beginning after 2014, the $195
dollar amount under subsection (b)(1) shall be increased by
such dollar
[[Page H8317]]
amount multiplied by the cost-of-living adjustment determined
under section 1(f)(3) determined by substituting `calendar
year 2013' for `calendar year 1992' in subparagraph (B)
thereof.
``(2) Rounding.--If any amount adjusted under paragraph (1)
is not a multiple of $5, such amount shall be rounded to the
next lowest multiple of $5.''.
(e) Failure to File S Corporation Return.--Section 6699 is
amended by adding at the end the following new subsection:
``(e) Adjustment for Inflation.--
``(1) In general.--In the case of any return required to be
filed in a calendar year beginning after 2014, the $195
dollar amount under subsection (b)(1) shall be increased by
such dollar amount multiplied by the cost-of-living
adjustment determined under section 1(f)(3) determined by
substituting `calendar year 2013' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph (1)
is not a multiple of $5, such amount shall be rounded to the
next lowest multiple of $5.''.
(f) Failure to File Correct Information Returns.--Section
6721(f)(1) is amended by striking ``For each fifth calendar
year beginning after 2012'' and inserting ``In the case of
any failure relating to a return required to be filed in a
calendar year beginning after 2014''.
(g) Failure to Furnish Correct Payee Statements.--Section
6722(f)(1) is amended by striking ``For each fifth calendar
year beginning after 2012'' and inserting ``In the case of
any failure relating to a statement required to be furnished
in a calendar year beginning after 2014''.
(h) Effective Date.--The amendments made by this section
shall apply to returns required to be filed after December
31, 2014.
SEC. 209. INCREASE IN CONTINUOUS LEVY.
(a) In General.--Paragraph (3) of section 6331(h) is
amended by striking the period at the end and inserting ``and
by substituting `30 percent' for `15 percent' in the case of
any specified payment due to a Medicare provider or supplier
under title XVIII of the Social Security Act.''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after 180 days after the date of
the enactment of this Act.
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Camp) and
the gentleman from Michigan (Mr. Levin) each will control 30 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Camp).
General Leave
Mr. CAMP. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days in which to revise and extend their remarks and
include extraneous material on H.R. 647.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, many of us know the joys and responsibilities of being a
parent. We spend years ensuring our children have the skills and
education to reach their full potential as they grow and enter
adulthood.
Many of these everyday responsibilities parents face can and often do
increase tremendously when they have a child with a disability. Today,
we have an opportunity to ease some of those challenges.
The Achieving a Better Life Experience Act, commonly known as the
ABLE Act, will allow those with disabilities and their caregivers to
have the stability and security of knowing that they can save and
provide for their education, housing, and medical expenses in the
future.
In short, the ABLE Act lets those with disabilities set up tax-free
savings accounts to help them manage the costs of medical care,
housing, transportation, and continued education. This will allow those
who are on Medicaid and SSI to work, earn, and save more while still
receiving these important benefits.
It is important to note that these savings accounts will be available
to all individuals with disabilities and their caretakers, not just
those on Medicaid and SSI.
This is a commonsense bill that will aid those with disabilities and
their caretakers so they can live more fulfilling, happy lives and have
the ability to provide for a better future.
{time} 1530
At the same time, this will not burden taxpayers since the cost of
the ABLE Act is fully offset by the savings provisions in this bill.
These offsets are a balanced and fair mix of savings provisions that
all Members should be able to support.
This bill is supported by more than 70 leading organizations and
health care professionals, including the American Association of People
with Disabilities, the Autism Society of America, Autism Speaks, the
Brain Injury Association of America, Easter Seals, the National
Association of Councils on Developmental Disabilities, the National
Disability Institute, the National Down Syndrome Society, the National
Federation of the Blind, and The Arc.
They support this bill because they know it will help more disabled
individuals help themselves. That is all I can ask for--that is all
anyone can ask for--and it is something I am pleased this legislation
provides. This is why the ABLE Act has 380 cosponsors in the House and
74 cosponsors in the Senate.
I want to particularly thank the sponsor of this legislation, my good
friend from Florida, Representative Ander Crenshaw, as well as
Representatives Sessions, McMorris Rodgers, and Van Hollen for their
diligence in helping us bring this legislation to the floor today.
Mr. Speaker, it is not every day that we have a chance to clear major
hurdles in front of people who simply need a hand up. That is what this
bill does, and I encourage all Members to support it.
I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
With this bill, we can help millions of Americans who are living with
disabilities become more financially secure. Just as families today can
open tax-free accounts to save for the future costs of college for
their children, this legislation would make it easier for families to
save money for disability-related expenses like transportation,
housing, and health prevention and wellness. The ABLE Act aims to ease
the financial burden on these individuals and their families.
I applaud the efforts of Congressmen Crenshaw, Van Hollen, Sessions,
and you, Chairman Camp, among others.
The CBO estimates the cost of the bill will be $2 billion over 10
years. The bill is paid for through $638 million in revenue offsets and
$1.4 billion in spending cuts.
There has been active bipartisan work on paying for this bill, and
there is broad agreement on the revenue offsets. There is some
opposition to the Medicare offsets included in the bill because the
legislation uses Medicare savings for nonhealth purposes.
We have challenges ahead, including important work on SGR. I
understand the concern about Medicare offsets. I think it is important
as we proceed on this bill to stress that it must not be considered a
precedent for using Medicare savings to pay for unrelated costs
associated with tax changes.
The ABLE Act provides much-needed relief, as we have said, to
families and their children with disabilities. This is an important
step forward for them in a very personal way. I support its passage.
I reserve the balance of my time.
Mr. CAMP. Mr. Speaker, I yield 5 minutes to the distinguished
gentleman from Florida (Mr. Crenshaw), who is the sponsor of the bill.
Mr. CRENSHAW. Mr. Speaker, I thank the gentleman for yielding the
time.
Let me first just say thank you to Chairman Camp, the chairman of the
Ways and Means Committee, for his hard work in bringing this bill out
of the Ways and Means Committee with a unanimous vote. I thank him and
his staff who have worked long and hard to bring this bill to the floor
today.
On a personal note, as Chairman Camp leaves the Congress this year, I
want to express my thanks and gratitude for his friendship over the
years and for his leadership not only for the people of Michigan, but
for the people of America. You will be missed.
Mr. Speaker, when we talk about the ABLE Act, I think that this is a
great example of what can be accomplished when people work together.
People say we don't always work together, but here is a case where
people have come together--Democrats and Republicans, the House working
with the Senate--for the common good of the people of America.
I think all of us probably know somebody, either a family member or
maybe a friend of the family--somebody--who has a disability. It might
be Down syndrome, or it might be autism, or it might be some other
disability, but sometimes, I don't think we understand the difficulty
and the challenges
[[Page H8318]]
that those individuals and their families face. They are beyond our
comprehension sometimes because we are lucky in the way that we can
live.
The ABLE Act seeks to address that inequity. It seeks to help those
people who so often society overlooks or maybe the government
overlooks. The ABLE Act is very simple, it is very straightforward, it
is understandable, and we have come to this after 8 years of hard work.
When I first filed the bill in 2006, there were very few cosponsors
of this legislation, but over the years, an awful lot of people on both
sides of the aisle have worked long and hard to make this legislation
better. Some of the individuals who have these disabilities come to
Washington every year. They have gone out, and they have talked to
their individual Representatives.
That is one of the reasons we have 380 cosponsors in the House. It is
because those individuals have gone to an office and have sat down and
have said, ``This is something that would make a difference in my
life.'' And those Members have said, ``We want to help.'' The same
thing has happened in the Senate.
You heard Chairman Camp talk about how that takes place. Individuals
with disabilities can create a tax-free savings account, put their own
money in that account, and have a chance to actually save for their
futures.
Those dollars grow tax free, and as long as they are used for
qualified expenses, such as medical expenses or maybe educational or
job training expenses, they can use those proceeds. We already allow
folks to help themselves by setting up tax-free savings accounts to
save for college. It is called a 529.
We allow people to save for their retirements through a tax-free
savings account called an IRA or a 401(k), and we allow people to save
for their health insurance by the creation of health savings accounts.
It only seems fair to me and to all of us that we would provide the
same sort of treatment to those individuals who are less fortunate than
we are.
Now, we have a situation in which the ABLE accounts will open a door
to a bright future to millions of Americans. It will give those
individuals a chance to realize their hopes and their dreams, to be
part of the American Dream, and to be able to achieve their full
potential.
I can't think of anything that is more rewarding. I can't think of
any greater privilege than to speak out for people who can't always
speak for themselves. This ABLE Act will bring justice, and it will
bring peace of mind to millions of American families who live with
disabilities every day. I think that is something worth fighting for.
Mr. LEVIN. Mr. Speaker, it is now my real pleasure to yield 3 minutes
to the gentleman from Maryland (Mr. Van Hollen), another person like
Mr. Crenshaw and others who have been working so hard on this issue for
a long time.
Mr. VAN HOLLEN. Mr. Speaker, let me start by thanking my colleague,
Ranking Member Levin, for yielding but, most importantly, for his
partnership on this important bipartisan legislation.
I also want to thank my colleagues on the other side of the aisle.
Chairman Camp, thank you for all of your efforts and diligence in
getting us to this point. To our fellow cosponsors--Congressman
Crenshaw, Congresswoman McMorris Rodgers, Congressman Sessions, and
others--thank you for all you have done to get us to this point.
To our colleagues on the other side of the Capitol, Senator Bob Casey
and Senator Richard Burr, this has been a team effort.
Mr. Speaker, like Congressman Crenshaw, I want to especially
recognize and honor those families from across the country who actually
worked so hard over so many years to get us to this point. Many of
those families are in the gallery today. Others are watching from
around the country.
At a time when there is deep cynicism about the ability or lack of
ability of Congress and the government to function, they broke through
that cynicism and are an example to others of what we can do and can
accomplish by working together.
Because of their efforts, as we heard, we have 380 cosponsors,
Republicans and Democrats, in the House and 74 United States Senators,
Republicans and Democrats. With that broad bipartisan and bicameral
support, everyone worked together to get to this point.
We have heard what this does. It provides an opportunity for families
with kids or other members of the families with disabilities to put
aside a little money, tax free, to help defray some of the extra
medical costs that are incurred by those families.
It is a benefit available to families who are sending their kids to
college, and we should make sure that we provide that kind of benefit
to families who are trying to make sure their loved ones are cared for.
That is what this does. It is about equity. It is about fairness. It
is about making sure that every child has the opportunity to reach his
or her full potential. It is a time-honored American value, and that is
why this has attracted such broad support.
Mr. Speaker, no single piece of legislation--nothing we can do here--
can single-handedly eliminate the additional medical and financial
burdens faced by families living and loving and caring for their
children with disabilities every day, but this act, this ABLE Act, can
help ease that financial burden and can help assist families in some
small way in ensuring that their children receive the love and care
they deserve.
I thank my colleagues for coming together on this important effort,
and I hope it gets through the Senate and to the President's desk,
where it can be signed soon.
Thank you, Mr. Chairman, and thank you, everybody, for being a part
of this effort.
The SPEAKER pro tempore (Mr. Yoder). The Chair would remind all
Members that the rules require Members to refrain from referencing
occupants in the gallery.
Mr. CAMP. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Washington State (Mrs. McMorris Rodgers), the distinguished chair of
the House Republican Conference.
Mrs. McMORRIS RODGERS. Thank you very much, Mr. Chairman, and thank
you for your tremendous leadership.
To my colleagues on both sides of the aisle in the House and in the
Senate, I thank them for their tremendous support.
Mr. Speaker, I join in rising in strong support of H.R. 647, the
Achieving a Better Life Experience Act, the ABLE Act, which will help
millions of Americans and families save for their futures.
Today is the day we have been waiting for, for a long time, and I am
so proud to stand here with my colleagues, with the advocates who are
here, with the families across the Nation who have spent countless
days, weeks, years pushing us across the finish line.
For me, personally, this bill is about a little boy who was diagnosed
with Down syndrome 3 days after he was born. His diagnosis came with a
list of future complications: endless doctors' visits and therapy
sessions, potential heart defects, even early Alzheimer's.
Seven years later, as the mom of that little boy, nothing has given
me greater joy than watching Cole grow and the tremendous impact that
he is already having on this world.
When Cole was born, my husband and I were told don't put any assets
in his name because he may need to qualify for one of these programs in
the future. That is the wrong message to send to parents who are ready
to save--who are ready to sacrifice--to ensure that their children have
an opportunity for a better life.
The ABLE Act is going to change this. It is going to empower
individuals with disabilities and empower their families through tax-
free savings accounts to save for college, retirement, and other future
expenses.
As a part of America's new Congress, we are here to advance real
solutions, solutions to make people's lives better, solutions that will
empower all Americans no matter where you come from, no matter how much
money to your name, or what challenges you face.
The ABLE Act is one of the many ways that we are going to do that. It
is going to empower millions, including my son Cole, with the
opportunity for a better life.
I encourage my colleagues on both sides of the aisle to support H.R.
647.
Mr. LEVIN. Mr. Speaker, I now yield 3 minutes to the gentleman from
Washington (Mr. McDermott), another distinguished member of our
committee.
[[Page H8319]]
{time} 1545
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Mr. Speaker, I want to begin by being very clear. I
support the ABLE Act itself. It is a compassionate bill that seeks to
expand the common good by providing tax-free savings accounts for
disabled Americans. If we were voting on that bill today, I would
strongly support it. But the ABLE Act isn't the issue here. The issue
is how we are going to pay for it. And the proposal we are considering
today is just one that jeopardizes the future of our safety net.
Newt Gingrich talked about wanting to have Medicare wither on the
vine. That has always been the desire of the Republicans. So today we
are setting out on an unprecedented and dangerous course in the funding
of this bill.
In a last-minute development, the Congress is now considering using
cuts to Medicare to offset the cost of this legislation, taking away
from the old people and giving it to these folks. That is their idea of
a balanced act.
There has been no serious debate. There has never been a hearing and
no thoughtful discussion of the implications of this proposal. If we
vote to make these cuts, we will take the first step down a slippery
slope that directly undermines the social safety net.
I have checked with the experts in the nonpartisan Congressional
Research Service and couldn't find one example in which Congress has
used Medicare as a piggy bank to pay for a tax bill. And that is what
this bill is, basically, a tax exemption. It is a good idea, but are we
going to use Medicare to pay for it? Because, mark my words, when it
comes time to offer another tax break, my colleagues on the other side
will come after Medicare again; and the next time, the cut will be
deeper and easier because we did it today.
I believe that we should not be a part of beginning to rip Medicare
at the very bottom. It looks like just a little bit. And they will say,
oh, it is only a tiny bit, and it is not going to affect anybody. But
you are establishing a precedent that you will hear again on this
floor. For that reason, I intend to vote ``no.''
AARP,
Washington, DC, December 3, 2014.
Dear Representative: As the largest nonprofit, nonpartisan
organization representing the interests of Americans age 50
and older and their families, AARP urges you to reject using
Medicare savings as an offset to pay for non-healthcare
programs, including the cost of the Achieving a Better Life
Experience (ABLE) Act of 2014.
AARP has consistently advocated against using permanent
reductions in Medicare to pay for other unrelated government
spending. While we agree it is important to help individuals
with disabilities maintain health, independence, and quality
of life, we oppose using Medicare savings to finance tax
expenditures or other non-healthcare programs.
The ABLE Act establishes tax-exempt savings plans for
persons with disabilities, making it much easier for them and
their families to save for future expenses. Although ABLE
accounts are only available for individuals under the age of
26, the savings accrued will help with living expenses as the
person ages. This is especially important because at ages 50-
64, adults with disabilities are less than half as likely to
be employed as those without disabilities.
However, establishing the ABLE program should not be
achieved by tapping into Medicare savings. This is especially
true at a time when Medicare faces its own long term funding
needs, and when Congress will shortly need to find savings to
pay for either permanent Medicare SGR reform or another
temporary ``doc fix'' in 2015. We urge you to remove Medicare
offsets from the ABLE Act.
Sincerely,
Nancy A. LeaMond,
Executive Vice President,
State & National Group.
Mr. CAMP. Mr. Speaker, I yield 5 minutes to the distinguished
gentleman from Washington State (Mr. Reichert), a member of the Ways
and Means Committee and chairman of the Human Resources Subcommittee.
I also ask unanimous consent that the gentleman from Washington
control the remainder of my time.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. REICHERT. Mr. Speaker, I thank Chairman Camp for yielding and for
all of his hard work on this legislation and for bringing it forward
today.
I thank the gentleman from Florida (Mr. Crenshaw), too, for his hard
work.
Mr. Speaker, I rise today in strong support of H.R. 647, as amended,
also known as the ABLE Act. And we have heard what ABLE stands for, but
let me just repeat it very slowly so people can understand really what
this is about: achieving better life experience for people who have
special needs and who are disabled.
We all strive to have better lives, but some people in this world
need a little help, and that is what we are doing today. Some people
might disagree with some of the ways we are going about this. The
bottom line is we are helping people that need a little special help, a
little extra help from us, and we are going to step up and do that.
This is a bipartisan piece of legislation. It is designed to help
those individuals with disabilities overcome the hurdles that they
often face holding a job and trying to live independently.
Here is the problem: if someone with a disability works and achieves
even a modest level of savings, they lose their assets to certain
safety net programs, such as Medicaid and SSI. This can discourage
individuals from pursuing work opportunities and gaining the
independence that comes through work.
Here is the solution: this legislation today. This is the solution,
Mr. Speaker. It helps individuals, regardless of disability, to achieve
the best possible quality of life by ensuring continued access to
essential safety net programs as well as tax-free savings accounts,
allowing them to pursue independence and community involvement.
These ABLE accounts would be used to cover a wide variety of expenses
related to addressing and overcoming the disabilities, and they would
grow tax-free. These costs quickly add up, as needs can range from
uncovered health care needs, education costs, housing needs,
transportation costs, assistive technology, speech-generating devices
and other technology, and personal support services.
This bill is critical because it allows individuals with ABLE
accounts to maintain their eligibility for benefits while working and
saving more for their future needs. ABLE account balances and
withdrawals are completely excluded for purposes of Medicaid; and under
the SSI program, the first $100,000 in account balances would be
excluded from being counted as resources, meaning disabled individuals
could save far more than today, while remaining eligible for benefits
along the way.
This bill is about real people--we have heard some of the stories
already this afternoon--real people who have real hopes and real
dreams, dreams of being able to support themselves and plan for the
future, dreams for a better life, and people like my godson, Kyle.
Now, Kyle today is 20 years old, but Kyle weighs 60 pounds and is in
a wheelchair. Kyle was diagnosed at 18 months old with cancer. He can't
speak. Up to this point, Kyle has only been able to save $2,000. And
once you reach that $2,000 level, that is it. If you go over that, you
don't get the benefits. Imagine if you were the parents of Kyle, trying
to save for his future, to maybe get a speech device so Mom and Dad can
hear Kyle say ``I love you,'' because he hasn't been able to say that.
Imagine not being able to hear your child say, ``I love you, Mom. I
love you, Dad.''
This savings account allows people to save that money for their
children, to buy that technology, to get that wheelchair that costs
$20,000. Some of us who are able-bodied and don't understand the
disability that people live with every day, you see a wheelchair and
there is no cost attached. We see people in wheelchairs, $20,000 and
more for people who can only use maybe their index finger and a thumb
to operate the toggle switch on a wheelchair so they can go from point
A to point B.
I am proud to be Kyle's godfather. When you wheel Kyle into a room,
he lights up the room, and we want to give him a better life. That is
what this bill does.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. REICHERT. Mr. Speaker, I yield myself an additional 30 seconds.
I would like to thank the cosponsors of this bill, the 379 Members.
But more than anyone, I would really like to especially thank the
families that have been working on this for years. It has been an honor
to visit with them, to
[[Page H8320]]
get to know them, and to get to know their families.
I urge a ``yes'' vote on this legislation.
I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I now yield 2 minutes to the gentleman from
New Jersey (Mr. Pallone).
Mr. PALLONE. Mr. Speaker, I think everyone here would agree that the
goals of the ABLE Act are worthy. The bill's title stands for achieving
better life experience, and it would allow for the creation of tax-free
savings accounts to benefit individuals with disabilities. These
accounts would provide a way for families raising children with
disabilities to set aside savings for their child's care.
What I am concerned about is the offsets. The bill before us today
uses Medicare cuts to pay for a tax break. Medicare is a program that
seniors and people with disabilities depend upon for their health care,
and we should not be cutting Medicare to pay for this bill.
Meanwhile, we all know that our efforts to permanently repeal and
replace the SGR in the lameduck are, unfortunately, falling flat. And
while I hope we can still pass SGR this month, if it does not get done,
we are going to have a Medicare bill that will cost tens of billions of
dollars in March, and Republicans will force us to pay for every last
dime, and here we are, using $1.2 billion in health offsets for non-
health bills.
In addition to the Medicare offsets, there are other offsets included
in this bill that are troublesome. The provision on certified
professional employer organizations could have a negative effect on
worker rights, including collective bargaining and organizing and
worker protections.
I say again, the goals of the ABLE Act are laudable. I hope that our
Senate colleagues will send the bill back to us without these offensive
offsets so that we can enact a good law that we can all be proud of.
Mr. REICHERT. Mr. Speaker, I yield 2 minutes to the gentleman from
Illinois (Mr. Roskam), a distinguished member of the Ways and Means
Committee.
Mr. ROSKAM. Mr. Speaker, I thank the gentleman for yielding.
Imagine that sense when you get the word that a new baby has been
diagnosed with something that was completely unanticipated. That has
been a situation that has been present in the lives of constituents,
family, friends, and those of us who are nearby.
I think there is a hopefulness today, Mr. Speaker, about what we are
talking about. And there are so many people that have run for office
with the idea of trying to get something done, the notion that you have
this strong of a voice all coming together saying, You know what? We
may not be able to agree about what time of day it is in this Congress,
but we can agree that we all ought to come together to help those who
are unable to help themselves or to help those who want to care for the
ones who are around them. So it is also a good lesson to learn about
the tenacity of Americans who have decided to substantively engage this
place over a period of years.
A number of minutes ago, we heard from the gentleman from Florida,
Representative Crenshaw, who talked about introducing this back in
2006. He was tenacious, and he was joined by others, and they pushed
and they pushed. Now they have accomplished something, and we are on
the verge of, actually, a great moment.
So I am here to celebrate. I am here to celebrate with my colleagues
who took the initiative. I am here to celebrate others who came
alongside. But most of all, Mr. Speaker, we are here to celebrate the
lives of those who are being supported by this act.
Mr. LEVIN. Mr. Speaker, it is now my pleasure to yield 2 minutes to
the gentlelady from the District of Columbia, Eleanor Holmes Norton.
Ms. NORTON. Mr. Speaker, I have been working with Mr. Crenshaw, with
Senator Casey, and I congratulate them on this bill. But I want to say
how deeply I regret that there are extraneous provisions in the bill
concerning worker protections and offsets that keep it from being the
bipartisan bill that it means to be, or else we wouldn't have seen
virtually the whole House on the bill. So I have come to speak for the
underlying bill and to hope that those provisions will somehow be swept
aside and we can have the bill that I think most who signed on thought
they were signing.
We talk on both sides of the aisle, as well we should, about personal
responsibility, but what we have been doing until this time was leaving
the disabled dependent on their own parents or on charities without any
way to liberate themselves from others. I think about the parents of
20-year-old autistic brothers who kept them locked up and had no way to
liberate them or to care for them.
Most woeful is dependence on charities who, themselves, get tax
exemptions to take care of people who need them, and they do an
excellent job. But, if we are going to give a tax break to people who
take care of disabled people, surely there should be a tax benefit for
them to take care of themselves.
And just consider this: most disabled people, truly disabled people,
are unable to find jobs of any kind; but if they do, they will not be
the kinds of jobs normally that leave them able to open savings
accounts, prepare for their own retirement, and the rest. So even if
they were able to be employed, they still, of course, must look to
other sources of income
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. LEVIN. I yield the gentlelady an additional 2 minutes.
Ms. NORTON. That is why this bill, in many ways, is so sensitive. It
doesn't supplant any of the assistance that is necessary, like Medicaid
and their own insurance that they may have or SSI.
My own daughter, Katherine Felicia Norton, was the Global Down
Syndrome ambassador this year. Katherine will probably not need one of
these savings accounts. But I am here this afternoon to speak for all
of those who do--and there are millions in our country--and to thank
particularly the sponsors for what they are trying to do with this
bill.
I thank my good friend for yielding to me.
{time} 1600
Mr. REICHERT. Mr. Speaker, I yield 2 minutes to the gentleman from
North Carolina (Mr. Holding), who is a cosponsor of the bill.
Mr. HOLDING. Mr. Speaker, I thank the gentleman for the time.
Earlier today I had the privilege of meeting with Kenneth Kelty and
his mother, Jacqueline. They are from my district, and this is a family
who would benefit directly from the ABLE Act and who shared their
support of this important bill with me just this afternoon. Kenneth
recently graduated from the University Participant Program at Western
Carolina University, a program that allows students with disabilities
to study side-by-side with other students at the university. In
Kenneth's words, it was ``a chance to do all the same things as
everyone else with nothing holding us back.'' Kenneth joined a
fraternity, had a good time, learned a lot, was able to come back, has
a job.
Mr. Speaker, just as the University Participant Program helps people
with disabilities like Kenneth, so will this bipartisan ABLE Act. This
bill will allow tax-free savings accounts for expenses such as housing,
education, employment training. Similar to a 529 program college
savings account, these accounts will help provide families with some
peace of mind when trying to save for their children's long-term
expenses.
So, Mr. Speaker, I encourage my colleagues to support the ABLE Act.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentlelady from
Texas (Ms. Jackson Lee).
Ms. JACKSON LEE. Mr. Speaker, I thank the manager, Mr. Levin, for his
kindness, as well as the manager for the majority, Mr. Crenshaw, and
Mr. Van Hollen, and the many others who, along with myself, cosponsored
this legislation.
It is very moving to have a moment of family on the floor of the
House as I listen to Members recount their individual stories of those
in their families and those of us who encounter our constituents with
wonderful, beautiful children, many of whom fit squarely in this relief
that is being given.
As I watched two twins grow up who are prized and special in our
community, I could just imagine what their
[[Page H8321]]
mother and their late father would say about this opportunity. This
legislation, H.R. 647, squarely answers our concerns.
I want to get to two points that I think are so important. We hear it
all the time: it seems as if these are rich people trying to get money,
but they are not. They may be working families and middle class
families, and to be able to not deny them eligibility for Medicaid when
there are severe health issues that many of these young people and
children face, and also for them to be able to have SSI, which is
sometimes a lifeline, to be able to put aside this savings that will
help them in education and transportation--I hear it so often, training
for employment; any of us who have dealt with Goodwill and seen what
Goodwill does with young people whose parents bring them there--yet
they need other ways of being able to respond, and they should not be
denied higher education.
This bill allows the savings to be part of the higher education
efforts that these parents want for their children, and sometimes the
ability for independence with primary residence, what it says is that
these young people, as they grow, have developmental possibilities and
opportunities, and that there are no throwaway children, there are no
throwaway young people.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. LEVIN. Mr. Speaker, I yield the gentlewoman an additional 1
minute.
Ms. JACKSON LEE. I thank the gentleman. There are no throwaway young
people, and we should not throw them away.
I agree with my colleagues who have mentioned items that we would
hope would be reframed, if you will, impacting workers' conditions and
rights, provisions that may, in fact, impact Medicare. None of us who
have committed ourselves to the strength of Medicare want to see that
undermined. But I will say that the goodness of this legislation for my
neighbors and my constituents whom I personally know, individuals whom
I personally know--this is a lifeline.
I am very glad to speak on H.R. 647 for the lifeline that it provides
for people who deserve it, and they do not in any way have the need or
the desire to see the opportunities for their children and their young
people be determined only by the limitations of their ability to
provide for them.
This is an account. It is more than a savings account. It is a
lifeline account to help give every American, no matter who they are,
this equal opportunity and particularly those with disabilities.
Mr. REICHERT. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, we have heard a lot of stories today about people in
need, about people with disabilities and special needs, and we have had
some names attached to those stories, which really touches the hearts
of those people that know those individuals, and I hope touches the
hearts of the Members here in this Chamber when they hear the stories
of people in need who need that special attention.
One key challenge for disabled individuals is that their access to
certain safety net programs can be lost if they work. I want to just
repeat that. It can be lost if they work and achieve even a modest
level of savings. To overcome that challenge, the ABLE Act would help
more individuals with disabilities save and live independently without
losing access to critical programs like Medicaid and SSI.
Now, starting in 2015, States could create an ABLE program under
which individuals with disabilities could start an ABLE account modeled
after current section 529 savings accounts. Anyone--parents,
grandparents, and other family members, and friends--could contribute
to that account, which would grow tax free. Then when they need to
withdraw from that account, those withdrawals would be tax free if
spent on a wide variety of expenses related to helping them address and
overcome their disability. That includes expenses like uncovered health
care, education costs, housing needs, transportation costs, assistive
technology, and others that I have mentioned earlier.
able account details-
One key challenge for disabled individuals is that their access to
certain safety-net programs can be lost if they work and achieve even a
modest level of savings.
To overcome that challenge, the ABLE Act would help more individuals
with disabilities save and live independently without losing access to
critical programs like Medicaid and SSI.
Starting in 2015, States could create an ABLE program, under which
individuals with disabilities could start an ABLE account, modeled
after current Section 529 savings accounts.
Anyone--parents, grandparents, and other family and friends--could
contribute to their ABLE account, which would grow tax-free.
Then when they need to withdraw from the account, those withdrawals
would be tax free if spent on a wide variety of expenses related to
helping them address and overcome their disability.
That includes expenses like uncovered health care, education costs,
housing needs, transportation costs, assistive technology, and personal
support services.
Critically, individuals with ABLE accounts could maintain their
eligibility for means-tested benefits while working and saving more for
their future needs.
ABLE account balances and withdrawals are completely excluded for
purposes of Medicaid.
And under the SSI program, the first $100,000 in account balances
would be excluded from being counted as resources, meaning disabled
individuals could save far more than today while remaining eligible for
benefits along the way.
This change will go a long way to easing the minds of disabled
individuals and those around them.
Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Let me ask my colleague if he is ready to close?
Mr. REICHERT. I am waiting for one other speaker. If the gentleman
has another speaker, it would be helpful.
Mr. LEVIN. I do not.
Mr. REICHERT. I guess we are ready to close then, Mr. Speaker.
Mr. LEVIN. Okay. I would like to give your colleague a chance, but
shall we proceed? Is that okay?
Mr. REICHERT. Yes, we are prepared to close.
Mr. LEVIN. Okay. I can do so very briefly. I think we face a somewhat
unusual situation here. We have an opportunity to help people who have
some very major challenges, including challenges related to their
health, and so on balance I think there is a need for us to act, and so
therefore I support this bill.
I just want us to remember, in a sense, the unusual opportunity that
we have here to help millions of people who are living with
disabilities that affect their lives, including their basic health
status.
I yield back the balance of our time.
Mr. REICHERT. Mr. Speaker, I yield myself the remaining time.
I thank the gentleman for his comments and words of support and,
again, thank all 379 cosponsors of this bipartisan bill. I thank the
Senate, which has worked with the Members of the House on this bill,
making it a bicameral bill, and I think it is also important, Mr.
Speaker, to point out the outside support that this bill has garnered.
Let me just name a few of those: the American Association of People
With Disabilities, Autism Society of America, Autism Speaks, the Brain
Injury Association of America, Easter Seals, National Association of
Councils on Developmental Disabilities, National Disability Institute,
National Down Syndrome Society, National Federation of the Blind, and
the Arc, and that is just to name a few of the outside organizations
and groups that support this legislation.
Again, this is important legislation designed to help individuals
with disabilities overcome the hurdles that they often face in holding
a job and living independently, and I appreciate again the comments of
the ranking member, Mr. Levin, and urge my colleagues to support this
bill.
I yield back the balance of my time.
Mr. LARSON of Connecticut. Mr. Speaker, I rise today in strong
support of the ABLE Act. I would like to commend the efforts of my
colleagues Representative Ander Crenshaw and Representative Chris Van
Hollen for their leadership and steadfast commitment to moving this
legislation forward. This is truly a great bipartisan effort that will
help families across this country and I've been proud to join the
hundreds of members of Congress who support it as a cosponsor.
For years, I have heard from constituents like Andrew and Tamara
Selinger from West Hartford, who have advocated not only on behalf of
their own family, but for families across
[[Page H8322]]
Connecticut and the country. Their two children have Fragile X syndrome
and all they are asking for are the same opportunities for their
children that other families have with the 529 plan, to have a savings
mechanism that would enhance their lives and pay for non-covered
medical expenses, while not minimizing the services that they receive.
I have heard from people like Bob and Rosie Shea and Shannon Knall from
our local Autism Speaks chapter and many others from families and
groups advocating on behalf of individuals with disabilities, who have
spoken so passionately about why this legislation is so important.
In spite of the partisan rancor that often dominates this building,
this bill shows that we can come together in a meaningful way to act in
a positive manner on behalf of the American people. It is truly
inspiring how many advocates and families have made their voice heard
on this legislation and I urge my colleagues to support this bill and
finally get it across the finish line on behalf of families across this
country.
Mr. PRICE of Georgia. Mr. Speaker, I strongly support the ABLE Act
and its intent to promote greater independence and freedoms to disabled
and handicapped Americans. However, I have great concerns with the
policy that is being used to pay for this legislation because it would
seek to further decrease Medicare reimbursement for physicians--an
action that could threaten seniors' access to health care.
Since the passage of the Medicare Modernization Act of 2003 and the
creation of the sustainable growth rate (SGR) formula, Congress has
passed 17 ``doc-fixes'' to prevent further cuts to physicians providing
care for our seniors. Each year, the entire medical community must pick
up the tab to prevent the disastrous cuts that would be implemented if
the SGR was to take effect. The result? Medicare reimbursement for
physicians has decreased by 17% when adjusted for inflation, while the
cost of care continues to rise.
In the most recent ``doc fix'' passed in March of this year, a
controversial provision required the annual re-evaluation of codes
matching 0.5% of total physician spending from 2017 through 2020. If
this target is not met, the difference would be taken in the form of an
across the board cut. The proposed offset included in the ABLE Act
would shift these targets forward and compress them, requiring CMS to
identify misvalued services equal to at least 1% of total physician
spending in 2016, and 0.5% in 2017 and 2018. Moving the target to 2016
and frontloading it to require the identification of 1% of total
physician spending in the first year would make it extremely difficult
to meet the target.
However, CMS has no intention of implementing this law. In the 2015
Medicare Fee Schedule Final Rule, CMS finalized a proposal to
transition 10- and 90-day global period codes to 0-day global period
codes in 2017, and 2018, respectively, yet CMS has not developed a
methodology for how that transition will be made. This is a major
overhaul of close to half of the currently existing CPT codes and will
dramatically reform how physicians are paid. Because CMS has not yet
developed a methodology for how this transition will occur, the nature
of the impact is currently unknown, leading to further instability in
physician payments. CMS notes in the Rule that due to the work
necessary to make this change, they will not have resources to review
certain other potentially misvalued services for the ``next several
years'', almost certainly resulting in an across the board cut to all
physicians caring for Medicare patients.
This continuous pursuit by our Congress and CMS to re-evaluate codes
within the physician fee schedule will be detrimental to the medical
community and to ensuring access for our Medicare beneficiaries. A 1%
cut may not sound like much, but when taken in conjunction with the
combined maximum penalties for not meeting the PQRS, physician value-
based payment modifier, and EHR programs, the total potential cut faced
by physicians will be -9% in 2016, and -11.5% in 2017. This does not
even take into account the cuts required by the unresolved SGR.
Despite these concerns, I will support the ABLE Act today with the
hope that my colleagues on both sides of the aisle will recommit
themselves in the new Congress to securing the Medicare program for all
Americans.
Mr. PAULSEN. Mr. Speaker, more than 37 million people in the United
States have a disability, including more than 500,000 in Minnesota. For
parents raising a child with a disability, it is both emotionally and
financially draining.
While, individuals with disabilities are living longer and more
productive lives than ever before, they still face barriers to finding
and holding employment, living independently, and taking care of their
daily needs. We can make it easier for these families to bear this
financial burden.
The bipartisan ABLE Act, or Achieving a Better Life Experience, will
give individuals with disabilities new opportunities for them to save
and pay for the costs of their disabilities. Using an ABLE account,
they and their families are able to put aside money tax free and then
use it to cover qualified expenses such as health, education, housing,
and transportation.
For eight years, this legislation has been proposed, talked about,
and pending in Congress. I became an early advocate for the ABLE Act
when I was first elected to the House. It is supported by more than 70
health care and disability organizations. Now's the time to get this
across the finish line and pass the ABLE Act to help families and
individuals most in need.
Ms. DUCKWORTH. Mr. Speaker, as a proud cosponsor of H.R. 647, the
ABLE Act, I urge all of my colleagues to vote in favor of this
legislation today. If enacted, it would allow Americans living with a
disability and their families to establish tax-exempt financial
accounts so they can finance qualified expenses including education,
housing, transportation, employment support, medical care and other
personal necessities. Critically, it would not jeopardize eligibility
for other important federal benefits like Medicaid and Social Security.
As a disabled American myself, I understand the financial strain a
disability can have on individuals and their families. Not only do
disabled Americans often face higher costs and lower incomes, but they
are currently penalized for saving for their future. The ABLE Act will
allow millions of Americans with disabilities to invest in their
futures, live fulfilling lives and become more independent and less
reliant on public benefits. It will empower them to build a better
economic future for themselves and their families.
Disabled Americans deserve every opportunity to achieve their dreams.
I urge the House to pass this important legislation as quickly as
possible.
Mr. SMITH of New Jersey. Mr. Speaker, I rise today to express my
strong support for the Achieving a Better Life Experience Act or ``the
ABLE Act,'' legislation I cosponsored that is designed to improve the
quality of life for individuals with disabilities by assisting in long-
term financial planning.
As the founder and co-chair of the Coalition for Autism Research and
Education, I understand the financial demands of raising a child with
support needs. Education, housing, transportation, employment support,
medical care, and other life expenses can quickly add up for persons
with disabilities.
A study published this year in the Journal of the American Medical
Association (JAMA) Pediatrics found that the lifetime cost for an
individual with ASD averages $1.4 million. These costs jump to $2.4
million when autism involves intellectual disability--an estimated 40
percent of individuals with autism also have intellectual disability.
Unfortunately, under current law, saving more than $2,000 jeopardizes
access to services and supports, such as Social Security and Medicaid.
If enacted, the ABLE Act--which establishes tax-exempt accounts,
similar to the current 529 Education Savings Plans--will no longer
force parents to choose between saving for their child's future and
sacrificing the assistance their child requires.
I commend Speaker Boehner for bringing this bill to the floor today.
It is especially timely for the autism community as we continue to
address the looming crisis of aging out. Every year, 50,000 age-out of
their support system and into a society that disincentivizes employment
and financial security. Enactment of my legislation--the Autism CARES
Act--earlier this year began the conversation of how to better address
the needs of individuals with ASD who are aging out and we have much
work to do.
The ABLE Act is a step in the right direction. While I have concerns
regarding the Medicare physician services offsets, ABLE accounts are a
sensible and fiscally responsible tool that will benefit some of the
most vulnerable members of our society. It is a smart piece of
legislation to assist families in saving and planning for the long-term
needs of individuals with disabilities and a more secure future. I urge
my colleagues to support this bill.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 766, the previous question is ordered on
the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. REICHERT. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
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