[Congressional Record Volume 164, Number 200 (Wednesday, December 19, 2018)]
[Senate]
[Pages S7946-S7947]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FASTER ACCESS TO FEDERAL STUDENT AID ACT OF 2018
Mr. BOOZMAN. Mr. President, I ask unanimous consent that the
Committee on Finance be discharged from further consideration of S.
3611 and the Senate proceed to its immediate consideration.
The PRESIDING OFFICER. The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (S. 3611) to amend the Internal Revenue Code of 1986
and the Higher Education Act of 1965 to facilitate the
disclosure of tax return information to carry out the Higher
Education Act of 1965, and for other purposes.
There being no objection, the committee was discharged, and the
Senate proceeded to consider the bill.
Mr. BOOZMAN. I ask unanimous consent that the bill be considered read
a third time and passed and that the motion to reconsider be considered
made and laid upon the table.
=========================== NOTE ===========================
On page S7946, December 19, 2018, in the second column, the
following appears: Mr. DAINES. Mr. President, I ask unanimous
consent that the Committee on Finance be discharged from further
consideration of S. 3611 and the Senate proceed to its immediate
consideration. The PRESIDING OFFICER. The clerk will report the
bill by title. The legislative clerk read as follows: A bill (S.
3611) to amend the Internal Revenue Code of 1986 and the Higher
Education Act of 1965 to facilitate the disclosure of taxreturn
information to carry out the Higher Education Act of 1965, and for
other purposes. There being no objection, the committeewas
discharged, and the Senate proceeded to consider the bill. Mr.
DAINES. I ask unanimous consent that the bill be considered read a
. . .
The online Record has been corrected to read: Mr. BOOZMAN. Mr.
President, I ask unanimous consent that the Committee on Finance
be discharged from further consideration of S. 3611 and the Senate
proceed to its immediate consideration. The PRESIDING OFFICER.
Theclerk will report the bill by title. The legislative clerk read
as follows: A bill (S. 3611) to amend the Internal Revenue Code of
1986 and the Higher Education Act of 1965 to facilitate the
disclosure of tax return information to carry out the Higher
Education Act of 1965, and for other purposes. There being no
objection, the committee was discharged, and the Senate proceeded
to consider the bill. Mr. BOOZMAN. I ask unanimous consent that
the bill be considered read a . . .
========================= END NOTE =========================
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (S. 3611) was ordered to be engrossed for a third reading,
was read the third time, and passed, as follows:
S. 3611
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Faster Access to Federal
Student Aid Act of 2018''.
SEC. 2. SECURE DISCLOSURE OF TAX-RETURN INFORMATION TO CARRY
OUT THE HIGHER EDUCATION ACT OF 1965.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) In general.--Paragraph (13) of section 6103(l) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(13) Disclosure of return information to carry out the
higher education act of 1965.--
``(A) Income-contingent or income-based repayment and total
and permanent disability discharge.--The Secretary shall,
upon written request from the Secretary of Education,
disclose to officers, employees, and contractors of the
Department of Education, as specifically authorized and
designated by the Secretary of Education, only for the
purpose of (and to the extent necessary in) establishing,
renewing, administering, and conducting analyses and
forecasts for estimating costs related to income-contingent
or income-based repayment programs, and the discharge of
loans based on a total and permanent disability (within the
meaning of section 437(a) of the Higher Education Act of
1965), under title IV of the Higher Education Act of 1965,
the following return information (as defined in subsection
(b)(2)) with respect to taxpayers identified by the Secretary
of Education as participating in the loan programs under
title IV of such Act, for taxable years specified by such
Secretary:
``(i) Taxpayer identity information with respect to such
taxpayer.
``(ii) The filing status of such taxpayer.
``(iii) Type of tax return from which the return
information is provided.
``(iv) The adjusted gross income of such taxpayer.
``(v) Total number of exemptions claimed, or total number
of individuals and dependents claimed, as applicable, on the
return.
``(vi) Number of children with respect to which tax credits
under section 24 are claimed on the return.
``(vii) Other information determined to be necessary by
agreement between the Secretary and the Secretary of
Education to administer the Federal financial aid programs as
required by the Higher Education Act of 1965.
``(B) Federal student financial aid.--The Secretary shall,
upon written request from the Secretary of Education,
disclose to officers, employees, and contractors of the
Department of Education, as specifically authorized and
designated by the Secretary of Education, only for the
purpose of (and to the extent necessary in) determining
eligibility for, and amount of, Federal student financial aid
under programs authorized by title IV of the Higher Education
Act of 1965 and conducting analyses and forecasts for
estimating costs related to such programs, the following
return information (as defined in subsection (b)(2)) with
respect to taxpayers identified by the Secretary of Education
as applicants for Federal student financial aid under title
IV of such Act, for taxable years specified by such
Secretary:
``(i) Taxpayer identity information with respect to such
taxpayer.
``(ii) The filing status of such taxpayer.
``(iii) Type of tax return from which the return
information is provided.
``(iv) The adjusted gross income of such taxpayer.
``(v) The amount of any net earnings from self-employment
(as defined in section 1402), wages (as defined in section
3121(a) or 3401(a)), and taxable income from a farming
business (as defined in section 236A(e)(4)) for the period
reported on the return.
``(vi) The total income tax of such taxpayer.
``(vii) Total number of exemptions claimed, or total number
of individuals and dependents claimed, as applicable, on the
return.
``(viii) Number of children with respect to which tax
credits under section 24 are claimed on the return.
``(ix) Amount of any credit claimed under section 25A for
the taxable year.
[[Page S7947]]
``(x) Amount of individual retirement account distributions
not included in adjusted gross income for the taxable year.
``(xi) Amount of individual retirement account
contributions and payments to self-employed SEP, Keogh, and
other qualified plans which were deducted from income for the
taxable year.
``(xii) The amount of tax-exempt interest.
``(xiii) Amounts from retirement pensions and annuities not
included in adjusted gross income for the taxable year.
``(xiv) If applicable, the fact that there is no return
filed for such taxpayer for the applicable year.
``(xv) Other information determined to be necessary by
agreement between the Secretary and the Secretary of
Education to administer the Federal financial aid programs as
required by the Higher Education Act of 1965.
``(C) Restriction on use of disclosed information.--
``(i) In general.--Return information disclosed under
subparagraphs (A) and (B) may be used by officers, employees,
and contractors of the Department of Education, as
specifically authorized and designated by the Secretary of
Education, only for the purposes and to the extent necessary
described in such subparagraphs and for mitigating risks (as
defined in clause (ii)) relating to the programs described in
such subparagraphs.
``(ii) Mitigating risks.--For purposes of this
subparagraph, the term `mitigating risks' means, with respect
to the programs described in subparagraphs (A) and (B)--
``(I) analyzing or estimating costs associated with
potential changes to the need-analysis formula,
``(II) oversight activities by the Office of Inspector
General of the Department of Education as authorized by the
Inspector General Act of 1978, as amended,
``(III) developing or administering statistical models that
inform support to populations of Federal student loan
borrowers who are at risk of default or delinquency,
``(IV) reducing the net cost of improper payments to
Federal financial aid recipients, and
``(V) producing aggregate statistics for reporting,
research, or consumer information on the performance of
programs or institutions of higher education participating in
the programs under title IV of the Higher Education Act of
1965.
Such term does not include the conduct of criminal
investigations or prosecutions.
``(iii) Redisclosure to institutions of higher education,
state higher education agencies, and designated scholarship
organizations.--The Secretary of Education, and officers,
employees, and contractors of the Department of Education,
may disclose return information received under subparagraph
(B), solely for the use in the application, award, and
administration of Federal student financial aid, State aid,
or aid awarded by eligible institutions or such entities as
the Secretary of Education may designate, to the following
persons:
``(I) An institution of higher education with which the
Secretary of Education has an agreement under subpart 1 of
part A, or part D or E, of title IV of the Higher Education
Act of 1965.
``(II) A State higher education agency.
``(III) A scholarship organization which is designated by
the Secretary of Education as of the date of the enactment of
the Faster Access to Federal Student Aid Act of 2018 as an
organization eligible to receive the information provided
under this clause.
The preceding sentence shall only apply to the extent that
the taxpayer with respect to whom the return information
relates provides consent for such disclosure to the Secretary
of Education as part of the application for Federal student
financial aid under title IV of the Higher Education Act of
1965.
``(D) Required notification periods.--
``(i) Notification to congress.--The Secretary and the
Secretary of Education shall issue joint notifications to the
Committees on Finance and Health, Education, Labor, and
Pensions of the Senate and the Committees on Ways and Means
and Education and the Workforce of the House of
Representatives not less than 120 days prior to the first
disclosure of any type of return information under
subparagraph (A)(vii) or (B)(xv) with respect to which such a
notification has not been previously made.
``(ii) Public notice and comment.--There shall be a public
notice and comment period beginning not less than 60 days
prior to the first disclosure of any type of return
information under subparagraph (A)(vii) or (B)(xv) with
respect to which such a notification has not been previously
made, subsequent to the period allotted for Congressional
comment under clause (i).''.
(2) Confidentiality of return information.--Section
6103(a)(3) of such Code is amended by inserting ``, (13)(A),
(13)(B)'' after ``(12)''.
(3) Conforming amendments.--Section 6103(p)(4) of such Code
is amended--
(A) by inserting ``(A), (13)(B)'' after ``(13)'' each place
it occurs, and
(B) by inserting ``, (13)(A), (13)(B)'' after ``(l)(10)''
each place it occurs.
(b) Effective Date.--The amendments made by this section
shall apply to disclosures made under section 6103(l)(13) of
the Internal Revenue Code of 1986 (as amended by this
section) after the date of the enactment of this Act.
SEC. 3. NOTIFICATION OF REQUEST FOR TAX RETURN INFORMATION.
(a) In General.--Part G of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1088 et seq.) is amended by adding at
the end the following:
``SEC. 494. NOTIFICATION OF REQUEST FOR TAX RETURN
INFORMATION.
``The Secretary shall advise students and borrowers who
submit an application for Federal student financial aid under
this title or for the discharge of a loan based on permanent
and total disability, as described in section 437(a), or who
request an income-contingent or income-based repayment plan
on their loan (as well as parents and spouses who sign such
an application or request or a Master Promissory Note on
behalf of those students and borrowers) that the Secretary
has the authority to request that the Internal Revenue
Service disclose their tax return information (as well as
that of parents and spouses who sign such an application or
request or a Master Promissory Note on behalf of those
students and borrowers) to officers, employees, and
contractors of the Department of Education as authorized
under section 6103(1)(13) of the Internal Revenue Code of
1986, to the extent necessary for the Secretary to carry out
this title.''.
(b) Conforming Amendment.--Section 484(q) of the Higher
Education Act of 1965 (20 U.S.C. 1091(q)) is amended to read
as follows:
``(q) reserved''.
SEC. 4. REPORTS ON IMPLEMENTATION.
(a) In General.--Not later than each specified date, the
Secretary of Education and the Secretary of the Treasury
shall issue joint reports to the Committees on Health,
Education, Labor, and Pensions and Finance of the Senate and
the Committees on Education and the Workforce and Ways and
Means of the House of Representatives regarding the
amendments made by this Act. Each such report shall include,
as applicable--
(1) an update on the status of implementation of the
amendments made by this Act,
(2) an evaluation of the processing of applications for
Federal student financial aid, and applications for income-
based repayment and income contingent repayment, under title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.), in accordance with the amendments made by this Act,
and
(3) implementation issues and suggestions for potential
improvements.
(b) Specified Date.--For purposes of subsection (a), the
term ``specified date'' means--
(1) the date that is 90 days after the date of the
enactment of this Act,
(2) the date that is 120 days after the first day that the
disclosure process established under section 6103(l)(13) of
the Internal Revenue Code of 1986, as amended by section 2(a)
of this Act, is operational and accessible to officers,
employees, and contractors of the Department of Education (as
specifically authorized and designated by the Secretary of
Education), and
(3) the date that is 1 year after the report date described
in paragraph (2).
____________________