[House Report 111-708]
[From the U.S. Government Publishing Office]
111th Congress } { Report
2d Session } HOUSE OF REPRESENTATIVES { 111-708
_______________________________________________________________________
Union Calendar No. 431
REPORT ON THE LEGISLATIVE AND OVERSIGHT ACTIVITIES
of the
COMMITTEE ON WAYS AND MEANS
during the
111TH CONGRESS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
January 3, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
-----
U.S. GOVERNMENT PRINTING OFFICE
99-006 PDF WASHINGTON : 2011
COMMITTEE ON WAYS AND MEANS
SANDER M. LEVIN, Michigan, Acting Chairman
CHARLES B. RANGEL, New York DAVE CAMP, Michigan
FORTNEY PETE STARK, California WALLY HERGER, California
JIM McDERMOTT, Washington SAM JOHNSON, Texas
JOHN LEWIS, Georgia KEVIN BRADY, Texas
RICHARD E. NEAL, Massachusetts PAUL RYAN, Wisconsin
JOHN S. TANNER, Tennessee ERIC CANTOR, Virginia
XAVIER BECERRA, California JOHN LINDER, Georgia
LLOYD DOGGETT, Texas DEVIN NUNES, California
EARL POMEROY, North Dakota PAT TIBERI, Ohio
MIKE THOMPSON, California GINNY BROWN-WAITE, Florida
JOHN B. LARSON, Connecticut GEOFF DAVIS, Kentucky
EARL BLUMENAUER, Oregon DAVID G. REICHERT, Washington
RON KIND, Wisconsin CHARLES W. BOUSTANY, Jr.,
BILL PASCRELL, Jr., New Jersey Louisiana
SHELLEY BERKLEY, Nevada DEAN HELLER, Nevada
JOSEPH CROWLEY, New York PETER J. ROSKAM, Illinois
CHRIS VAN HOLLEN, Maryland
KENDRICK MEEK, Florida
ALLYSON Y. SCHWARTZ, Pennsylvania
ARTUR DAVIS, Alabama
DANNY K. DAVIS, Illinois
BOB ETHERIDGE, North Carolina
LINDA T. SANCHEZ, California
BRIAN HIGGINS, New York
JOHN A. YARMUTH, Kentucky
LETTER OF TRANSMITTAL
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U.S. House of Representatives,
Committee on Ways and Means,
Washington, DC, January 3, 2011.
Hon. Lorraine C. Miller,
Office of the Clerk, House of Representatives,
The Capitol, Washington, DC.
Dear Ms. Miller: I am herewith transmitting, pursuant to
House Rule XI, clause 1(d), the report of the Committee on Ways
and Means on its legislative and oversight activities during
the 111th Congress.
Sincerely,
Sander M. Levin,
Acting Chairman.
C O N T E N T S
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Page
Transmittal Letter............................................... III
Foreword......................................................... VII
I. Legislative Activity Review.......................................1
A. Legislative Review of Tax, Trust Fund, and Pension
Issues................................................. 1
B. Legislative Review of Trade Issues.................... 17
C. Legislative Review of Health Issues................... 33
D. Legislative Review of Social Security Issues.......... 62
E. Legislative Review of Income Security and Family
Support Issues......................................... 68
F. Legislative Review of Debt Issues..................... 73
II. Oversight Activity Review........................................74
A. Oversight Agenda...................................... 74
B. Actions Taken and Recommendations Made With Respect to
Oversight Plan......................................... 81
Appendix I. Jurisdiction of the Committee on Ways and Means...... 89
Appendix II. Historical Note..................................... 110
Appendix III. Statistical Review of the Activities of the
Committee on Ways and Means.................................... 116
Appendix IV. Chairmen of the Committee on Ways and Means and
Membership of the Committee from the 1st through the 111th
Congresses..................................................... 121
FOREWORD
Clause 1(d) of Rule XI of the Rules of the House, regarding
the rules of procedure for committees, contains a requirement
that each committee prepare a report at the conclusion of each
Congress summarizing its activities. The 104th Congress added
subsections on legislative and oversight activities, including
a summary comparison of oversight plans and eventual
recommendations and actions. The full text of the Rule follows:
(d)(1) Each committee shall submit to the House not later
than January 2 of each odd-numbered year a report on the
activities of that committee under this rule and rule X during
the Congress ending at noon on January 3 of such year.
(2) Such report shall include separate sections summarizing
the legislative and oversight activities of that committee
during that Congress.
(3) The oversight section of such report shall include a
summary of the oversight plans submitted by the committee under
clause 2(d) of rule X, a summary of the actions taken and
recommendations made with respect to each such plan, a summary
of any additional oversight activities undertaken by that
committee, and any recommendations made or actions taken
thereon.
(4) After an adjourmnent sine die of the last regular
session of a Congress, the chairman of a committee may file an
activities report under subparagraph (1) with the Clerk at any
time and without approval of the committee, provided that
(A) a copy of the report has been available to each
member of the committee for at least seven calendar
days; and
(B) the report includes any supplemental, minority,
or additional view submitted by a member of the
committee.
The jurisdiction of the Committee on Ways and Means during
the 111th Congress is provided in Rule X, clause 1(t), as
follows:
(t) Committee on Ways and Means.
(1) Customs revenue, collection districts, and ports
of entry and delivery.
(2) Reciprocal trade agreements.
(3) Revenue measures generally.
(4) Revenue measures relating to insular possessions.
(5) Bonded debt of the United States, subject to the
last sentence of clause 4(f).
(6) Deposit of public monies.
(7) Transportation of dutiable goods.
(8) Tax exempt foundations and charitable trusts.
(9) National social security (except health care and
facilities programs that are supported from general
revenues as opposed to payroll deductions and except
work incentive programs).
The general oversight responsibilities of committees are
set forth in clause 2 of Rule X. The 104th Congress also added
the requirement in clause 2 of Rule X that each standing
committee submit its oversight plans for each Congress. The
text of the Rule, in pertinent part, follows:
2. (a) The various standing committees shall have general
oversight responsibilities as provided in paragraph (b) in
order to assist the House in
(1) its analysis, appraisal, and evaluation of
(A) the application, administration,
execution,. and effectiveness of Federal laws;
and
(B) conditions and circumstances that may
indicate the necessity or desirability of
enacting new or additional legislation; and
(2) its formulation, consideration, and enactment of
changes in Federal laws, and of such additional
legislation as may be necessary or appropriate.
(b)(1) In order to determine whether laws and programs
addressing subjects within the jurisdiction of a committee are
being implemented and carried out in accordance with the intent
of Congress and whether they should be continued, curtailed, or
eliminated, each standing committee (other than the Committee
on Appropriations) shall review and study on a continuing basis
(A) the application, administration, execution, and
effectiveness of laws and programs addressing subjects
within its jurisdiction;
(B) the organization and operation of Federal
agencies and entities having responsibilities for the
administration and execution of laws and programs
addressing subjects within its jurisdiction;
(C) any conditions or circumstances that may indicate
the necessity or desirability of enacting new or
additional legislation addressing subjects within its
jurisdiction (whether or not a bill or resolution has
been introduced with respect thereto); and
(D) future research and forecasting on subjects
within its jurisdiction.
(2) Each committee to which subparagraph (1) applies having
more than 20 members shall establish an oversight subcommittee,
or require its subcommittees to conduct oversight in their
respective jurisdictions, to assist in carrying out its
responsibilities under this clause. The establishment of an
oversight subcommittee does not limit the responsibility of a
subcommittee with legislative jurisdiction in carrying out its
oversight responsibilities.
(c) Each standing committee shall review and study on a
continuing basis the impact or probable impact of tax policies
affecting subjects within its jurisdiction as described in
clauses 1 and 3.
(d)(1) Not later than February 15 of the first sessions of
a Congress, each standing committee shall, in a meeting that is
open to the public and with a quorum present, adopt its
oversight plan for that Congress. Such plan shall be submitted
simultaneously to the Committee on Oversight and Government
Reform and to the Committee on House Administration. In
developing its plan each committee shall, to the maximum extent
feasible--
(A) consult with other committees that have
jurisdiction over the same or related laws, programs,
or agencies within its jurisdiction with the objective
of ensuring maximum coordination and cooperation among
committees when conducting reviews of such laws,
programs, or agencies and include in its plan an
explanation of steps that have been or will be taken to
ensure such coordination and cooperation;
(B) review specific problems with Federal rules,
regulations, statutes, and court decisions that are
ambiguous, arbitrary, or nonsensical, or that impose
severe financial burdens on individuals;
(C) give priority consideration to including in its
plan the review of those laws, programs, or agencies
operating under permanent budget authority or permanent
statutory authority; and
(D) have a view toward ensuring that all significant
laws, programs, or agencies within its jurisdiction are
subject to review every 10 years; and
(E) have a view toward insuring against duplication
of Federal programs.
To carry out its work during the 111th Congress, the
Committee on Ways and Means had six standing Subcommittees, as
follows:
Subcommittee on Trade;
Subcommittee on Oversight;
Subcommittee on Health;
Subcommittee on Social Security;
Subcommittee on Income Security and Family Support;
and
Subcommittee on Select Revenue Measures.
The membership of the six Subcommittees of the Committee on
Ways and Means in the 111th Congress is as follows:
Subcommittee on Trade
JOHN S. TANNER, Tennessee, Acting Chairman
SANDER M. LEVIN, Michigan KEVIN BRADY, Texas, Ranking Member
CHRIS VAN HOLLEN, Maryland
JIM McDERMOTT, Washington GEOFF DAVIS, Kentucky
RICHARD E. NEAL, Massachusetts DAVID G. REICHERT, Washington
LLOYD DOGGETT, Texas WALLY HERGER, California
EARL POMEROY, North Dakota DEVIN NUNES, California
BOB ETHERIDGE, North Carolina
LINDA T. SANCHEZ, California
Subcommittee on Oversight
JOHN LEWIS, Georgia, Chairman
XAVIER BECERRA, California CHARLES W. BOUSTANY, Jr.,
RON KIND, Wisconsin Louisiana, Ranking Member
BILL PASCRELL, Jr., New Jersey DAVID G. REICHERT, Washington
JOHN B. LARSON, Connecticut PETER J. ROSKAM, Illinois
ARTUR DAVIS, Alabama PAUL RYAN, Wisconsin
DANNY K. DAVIS, Illinois JOHN LINDER, Georgia
BOB ETHERIDGE, North Carolina
BRIAN HIGGINS, New York
Subcommittee on Health
FORTNEY PETE STARK, California, Chairman
LLOYD DOGGETT, Texas WALLY HERGER, California, Ranking
MIKE THOMPSON, California Member
XAVIER BECERRA, California SAM JOHNSON, Texas
EARL POMEROY, North Dakota PAUL RYAN, Wisconsin
RON KIND, Wisconsin DEVIN NUNES, California
EARL BLUMENAUER, Oregon GINNY BROWN-WAITE, Florida
BILL PASCRELL, Jr., New Jersey
SHELLEY BERKLEY, Nevada
Subcommittee on Social Security
EARL POMEROY, North Dakota, Acting Chairman
JOHN S. TANNER, Tennessee SAM JOHNSON, Texas
ALLYSON Y. SCHWARTZ, Pennsylvania KEVIN BRADY, Texas
XAVIER BECERRA, California PATRICK J. TIBERI, Ohio
LLOYD DOGGETT, Texas GINNY BROWN-WAITE, Florida
RON KIND, Wisconsin DAVID G. REICHERT, Washington
JOSEPH CROWLEY, New York
LINDA T. SANCHEZ, California
JOHN A. YARMUTH, Kentucky
Subcommittee on Income Security and Family Support
JIM McDERMOTT, Washington, Chairman
FORTNEY PETE STARK, California JOHN LINDER, Georgia
ARTUR DAVIS, Alabama CHARLES W. BOUSTANY, Jr.,
JOHN LEWIS, Georgia Louisiana
SHELLEY BERKLEY, Nevada DEAN HELLER, Nevada
CHRIS VAN HOLLEN, Maryland PETER J. ROSKAM, Illinois
KENDRICK MEEK, Florida PATRICK J. TIBERI, Ohio
SANDER M. LEVIN, Michigan
DANNY K. DAVIS, Illinois
Subcommittee on Select Revenue Measures
RICHARD E. NEAL, Massachusetts, Chairman
MIKE THOMPSON, California PATRICK J. TIBERI, Ohio
JOHN B. LARSON, Connecticut JOHN LINDER, Georgia
ALLYSON Y. SCHWARTZ, Pennsylvania DEAN HELLER, Nevada
EARL BLUMENAUER, Oregon PETER J. ROSKAM, Illinois
JOSEPH CROWLEY, New York GEOFF DAVIS, Kentucky
KENDRICK B. MEEK, Florida
BRIAN HIGGINS, New York
JOHN A. YARMUTH, Kentucky
The Committee on Ways and Means submits its report on its
legislative and oversight activities for the 111th Congress
pursuant to the above stated provisions of the Rules of the
House. Section I of the report describes the Committee's
legislative activities, divided into six sections as follows:
Legislative Review of Tax, Trust Fund, and Pension Issues;
Legislative Review of Trade Issues; Legislative Review of
Health Issues; Legislative Review of Social Security Issues;
Legislative Review of Income Security and Family Support
Issues; and Legislative Review of Debt Issues.
Section II of the report describes the Committee's
oversight activities. It includes a copy of the Committee's
Oversight Agenda, adopted in open session on February 11, 2009,
along with a description of actions taken and recommendations
made with respect to the oversight plan. The report then
discusses additional Committee oversight activities, and any
recommendations or actions taken as a result. Finally, the
report includes four appendices with Committee information.
Appendix I is an expanded discussion of the Jurisdiction of the
Committee on Ways and Means along with a revised listing and
explanation of blue slip resolutions and points of order under
House Rule XXI 5(a). Appendix II is a brief Historical Note on
the origins of the Committee; Appendix III is a Statistical
Review of the Activities of the Committee on Ways and Means;
and Appendix IV is a listing of the Chairmen and Membership of
the Committee from the 1st-111th Congresses.
111th Congress } Report
2d Session } HOUSE OF REPRESENTATIVES 111-708
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REPORT ON THE LEGISLATIVE AND OVERSIGHT ACTIVITIES OF THE COMMITTEE ON
WAYS AND MEANS DURING THE ONE HUNDRED ELEVENTH CONGRESS
_______
January 3, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Levin, from the Committee on Ways and Means, submitted the
following
R E P O R T
I. LEGISLATIVE ACTIVITY REVIEW
A. Legislative Review of Tax, Trust Fund, and Pension Issues
1. TAX LEGISLATION ENACTED IN THE 111TH CONGRESS
a. H.R. 2, Children's Health Insurance Program Reauthorization Act of
2009 (P.L. 111-3)
On January 13, 2009, Representative Frank Pallone, Jr.
introduced H.R. 2. On January 14, 2009, it was passed by the
House. It was passed by the Senate with an amendment in the
nature of a substitute on January 29, 2009. On February 4,
2009, the House agreed to the Senate amendments, and the
President signed the bill into law on that same day.
The legislation provided funding for the Children's Health
Insurance Program primarily through an increase in tobacco
taxes. The Senate and House bills, with respect to revenue
provisions, were quite similar with negligibly higher tax rates
in the Senate and final bill.
Section 701 of the legislation increased taxes on tobacco
products. Under prior law, excise taxes on cigarettes and other
tobacco products included the following rates:
federal cigarette taxes: $0.39 per pack;
small cigars: $.04 per package of 20;
large cigars: 20.719% of sales price, not to
exceed $48.75 per 1,000 units (i.e., a maximum tax of
almost $.05 cents per cigar);
chewing tobacco: $.01 per ounce;
snuff: $.04 per ounce; and
pipe and roll-your-own tobacco: $.07 per
ounce.
There were also tax increases on the components of many
tobacco products, such as cigarette paper and cigarette tubes.
Some of the existing taxes were imposed per pound and under
prior law the rates were as follows: (1) $0.195 for chewing
tobacco, (2) $0.585 for snuff, and (3) $1.0606 for pipe and
roll-your-own tobacco. There were also taxes on large
cigarettes that are essentially non-existent (although a tax is
necessary for administrative reasons).
The legislation increased taxes on cigarettes and tobacco-
related products (effective April 1, 2009) to the following
rates:
federal cigarette taxes increased to $1.0066
per pack;
small cigars had their taxes increased to
the same level as cigarettes;
large cigars were subject to a tax of 52.75%
of sales price with a maximum of $0.4026 per cigar;
chewing tobacco taxes were increased to
approximately $.03 cents per ounce (and $0.5033 per
pound);
snuff taxes were increased to $.09 per ounce
($1.51 per pound);
pipe tobacco taxes were increased to $.18
per ounce ($2.8311 per pound);
roll-your-own tobacco taxes were increased
to $1.55 per ounce ($24.78 per pound);
cigarette papers' taxes rose from $1.22 per
40, to $3.15;
cigarette tubes' taxes rose from $2.44 to
$6.30.
Section 701 also included provisions affecting floor stock
taxes that applied to items removed from the manufacturer
before the April 1, 2009, effective date, and subsequently sold
after that date. The person holding the items on April 1, 2009,
was liable, and there was a $500 credit per person. (A person
was considered to be a controlled group. For example, a
corporation could not have received the $500 credit for each of
its subsidiaries.) The floor stocks tax applied to products in
a foreign trade zone (i.e., imports). The purpose of the floor
stock tax was to prevent the stockpiling of tobacco products
before April 1, 2009, the effective date for future sales.
Section 702 imposed regulatory and reporting requirements
on manufacturers and importers of processed tobacco other than
the tobacco products subject to excise taxes, and expanded the
definition of roll-your tobacco to include tobacco that could
be used to make cigars.
Section 703 mandated a Treasury study concerning magnitude
of tobacco smuggling the United States.
Section 704 altered the time for payment of corporate
estimated taxes. Under prior law, quarterly estimated corporate
tax payments due in July, August, and September of 2013 were
120% of the normal required payment, with the next such payment
reduced accordingly. The legislation increased the ratio to
120.5% and shifted $300 million of corporate taxes from FY2014
to FY2013. The prior-law 120% withholding provision did not
apply to firms with assets of less than $1 billion, and the
withholding increase under CHIPRA did not alter that exemption.
b. H.R. 1, American Recovery and Reinvestment Act of 2009 (P.L. 111-5)
On January 26, 2009, House Appropriations Committee Chair
David Obey introduced H.R. 1\1\, American Recovery and
Reinvestment Act (ARRA). It was amended and passed by the House
on January 28, 2009, and the Senate passed a full-text
alternative on February 10, 2009. House and Senate conferees
were appointed on February 10, and the conference report was
filed on February 12. The conference report was agreed to in
the House and in the Senate on February 13, 2009. The President
signed the bill into law on February 17, 2009 (P.L. 111-5).
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\1\H.R. 1 combined several components found in other legislative
vehicles marked up in committees--e.g. H.R. 598 (reported by the
Committee on Ways and Means), H.R. 629 (which was referred to the
Committee on Ways and Means, but not marked up), and H.R. 679.
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The core purpose of ARRA was economic stimulus, which was
to be accomplished through a combination of spending increases
and tax reductions. ARRA was projected to have a 10-year cost
of $787.2 billion of which about three-quarters was to be spent
by the end of fiscal year 2010. It included $308.3 billion
between 2009 and 2019 in discretionary spending for
infrastructure, science, health, and education programs. Direct
spending accounted for $267.0 billion over 10 years for health
insurance assistance ($25.0 billion), unemployment compensation
($39.2 billion), and state fiscal relief ($90.0 billion), among
other things.
The Act also provided for $211.8 billion over 10 years in
tax provisions. These provisions included tax relief for
individuals such as the Making Work Pay tax credit (a tax
credit of up to $400 for 2009 and 2010), temporary expansions
of the earned income and child tax credits, an extension of the
first-time home buyer credit, and the American Opportunity tax
credit. Additionally, various energy incentives were included,
as were tax incentives for businesses.
c. H.R. 3548, Worker, Homeownership, and Business Assistance Act of
2009 (P.L. 111-92)
On September 10, 2009, Representative McDermott introduced
H.R. 3548. On September 22, 2009, the House of Representatives
passed an amended version of H.R. 3548. The Senate agreed to a
full-text alternative on November 4, 2009. The House voted on
and passed the Senate alternative on November 5, 2009, under
suspension of the rules. The President signed the bill into
law, as P.L. 111-92, on November 6, 2009.
In terms of tax provisions, the act allowed taxpayers to
carryback 2009 losses 5 years rather than the statutory 2 years
(net operating loss carryback), extended the November 6, 2009
expiration of the homebuyer tax credit to July 1, 2010,
required that a homebuyer be entered into a binding written
contract before May 1, 2010, and complete the home purchase by
July 1, 2010, to qualify for the credit, extended the credit to
repeat homebuyers (with a maximum credit amount for repeat
buyers at $6,500, and at $8,000 for first-time buyers),
modified income limits of the tax credit, increased the home
purchase price was increased to $800,000, and extended the 0.2%
FUTA surtax through 2010 and the first six months of calendar
year 2011.
d. H.R. 4462, To Accelerate the Income Tax Benefits for Charitable Cash
Contributions for the Relief of Victims of the Earthquake in
Haiti (P.L. 111-126)
On January 19, 2010, Ways and Means Committee Chair Charles
B. Rangel introduced H.R. 4462. The amended bill was passed in
the House under suspension of the rules on January 20, 2010.
The Senate received the bill on January 21, 2010, and passed
the bill without amendment by unanimous consent. The President
signed the bill into law on January 22, 2010 (P.L. 111-126).
This act treated charitable contributions made after
January 11, 2010, and before March 1, 2010, for the relief of
earthquake victims in Haiti, as having been made during the
2009 tax year. Thus, taxpayers who made charitable
contributions before March 1, 20I0, were able to claim the
charitable deduction on their 2009 tax returns. The act also
deemed that telephone bills showing the name of the donee
organization, the date of the contribution, and the amount of
the contribution, satisfied IRS recordkeeping requirements for
the charitable deduction.
e. H.R. 2847, Hiring Incentives to Restore Employment Act (P.L. 111-
147)
On June 12, 2009, the House Committee on Appropriations
reported an original bill--H.R. 2847, formally introduced by
subcommittee chair Allan Mollohan--as an FY 2010 appropriations
measure for the Commerce, Justice, Science, and Related
Agencies (CJSRA) accounts. The House amended and approved it
six days later. On June 25, the Senate Appropriations Committee
reported the bill with an amendment in the nature of a
substitute. The Senate passed an amended version on November 5,
sending the bill back to the House for its consideration. On
December 16, the House agreed to an amendment in the nature of
a substitute to the Senate-passed version of H.R. 2847, sending
it back to the Senate for its consideration. The House
amendment substituted the ``Jobs for Main Street Act of 2010''
as Division A of H.R. 2847, and the ``Statutory Pay-As-You-Go
Act of 2009'' as Division B. (The appropriations measure for
CJSRA was included in the Consolidated Appropriations Act,
2010; see Division B of P.L. 111-117.) The bill then bounced
back and forth between the House and the Senate, as lawmakers
tried to reach an agreement on ways to lower and offset its
revenue cost. On February 24, 2010, the Senate approved a
complete substitute amendment to the House amendment that
included a less costly package of job creation initiatives. The
House agreed to the changes made by the Senate in a vote on
March 4, but it also agreed to an additional amendment that
revised some of the tax provisions. On March 17, the Senate
voted to accept the House amendment, clearing the way for the
bill to be signed by the President.
The act's tax provisions exempted employers from their
portion of the federal payroll tax on wages paid to qualified
persons hired between February 3 and December 31, 2010, giving
them a $1,000 tax credit for each new employee retained for 52
consecutive weeks, extended the section 179 expensing allowance
from 2008 and 2009 through 2010, and granted a refundable tax
credit to issuers of specified bonds, including renewable
energy bonds and qualified school construction bonds.
The act was offset with a number of tax compliance
provisions, including provisions that penalized taxpayers who
failed to report interests in foreign trusts and other
financial assets, gave the Internal Revenue Service six years
instead of three years to tax unreported income in excess of
25% of the gross income reported on a tax return, accelerated
the payment of estimated taxes by corporations with assets of
$1 billion or more, and delayed until 2021 the implementation
of special rules for the worldwide allocation of interest
expenses for the purpose of computing the foreign tax credit.
The act also extended highway, mass transit, and road
safety programs through the end of 2010, using the same formula
for allocating funds that applied in 2009. In addition, it
provided contract authority for covered programs and extended
the authority to spend funds from the Highway Trust Fund
through the end of FY 2010.
f. H.R. 3590, Patient Protection and Affordable Care Act (P.L. 111-148)
and H.R. 4872, Health Care and Education Reconciliation Act of
2010 (P.L. 111-152)
Legislative History of PPACA and HCERA
On November 7, 2009, the House passed H.R. 3962, the
Affordable Health Care for America Act. H.R. 3962 was based on
H.R. 3200, America's Affordable Health Choices Act of 2009,
which was originally introduced on July 14, 2009, and was
reported separately on October 14, 2009 by three House
committees (Education and Labor, Energy and Commerce, and Ways
and Means), each with a separate amendment. The U.S. Senate
passed its version of health insurance reform on December 24,
2009, the Patient Protection and Affordable Care Act, in a
full-text substitute amendment to H.R. 3590 (hereafter referred
to simply as H.R. 3590). H.R. 3590 consolidated and amended
bills passed by two committees with jurisdiction: the Committee
on Health, Education, Labor, and Pensions, which reported an
original bill, S. 1679, the Affordable Health Choices Act on
July 15; and the Senate Finance Committee, which reported an
original bill, S. 1796, America's Healthy Future Act of 2009,
on October 19, 2009.
On March 21, 2010, the House passed the Senate alternative
with a vote of 219 to 212. On March 23, 2010, President Obama
signed health care reform legislation into law: the Patient
Protection and Affordable Care Act (PPACA; P.L. 111-148). In
order to address some of the concerns House Members had with
the Senate-passed alternative, on March 21, 2010, the House
passed H.R. 4872, the Health Care and Education Reconciliation
Act of 2010 (HCERA) with an amendment in the nature of a
substitute. On March 25, 2010, the bill passed the Senate with
amendments; and later that day the House agreed to those
amendments. HCERA was signed by the President and became public
law (P.L. 111-152) on March 30, 2010.
Revenue Provisions in PPACA and HCERA
The revenue provisions in PPACA and HCERA include the
following: an additional Medicare Hospital Insurance (HI)
payroll tax of 0.9% on high-income workers with wages over
$200,000 for single filers and $250,000 for joint filers
effective in 2013, and an additional tax of 3.8% on net
investment income for high-income taxpayers with modified
adjusted gross income over $250,000 for joint filers ($200,000
for single filers), also effective in 2013; an excise tax of
40% on high cost health insurance plans, effective in 2018; a
limit on the amount of annual flexible spending account (FSA)
contributions to $2,500 per account, effective in 2013; an
increase in the penalty on non-qualified distributions from
HSAs from 10% to 20%, effective in 2011; modification of the
definition of qualified medical expenses for FSAs, Health
Savings Accounts (HSAs), and Health Reimbursement Accounts
(HRAs) to exclude over-the-counter medications (except those
prescribed by a physician), effective in 2011; an increase in
the AGI threshold for the itemized deduction for umeimbursed
medical expenses from 7.5% to 10% of adjusted gross income
(AGI) (with a grandfather rule for taxpayers over the age of
65), effective in 2013; an industry fee on health insurers,
effective in 2014; an industry fee on branded prescription
drugs that are sold to certain government insurance programs,
effective in 2011; a 2.3% excise tax on medical devices,
effective in 2013.
Tax Credits In PPACA and HCERA
PPACA and HCERA provide for new tax credits for small
businesses that provide health insurance for their employees
and for individuals and families to purchase certain health
insurance coverage in the individual insurance market. The tax
credits for small businesses are effective in 2010, and the tax
credits for the purchase of health insurance coverage for
families and individuals are effective in 2014. PPACA also
expands adoption tax provisions for taxpayers with qualified
expenses related to the adoption of a child.
g. H.R. 3962, Preservation of Access to Care for Medicare Beneficiaries
and Pension Relief Act of 2010 (P.L. 111-192)
On October 29, 2009, Representative John Dingell introduced
H.R. 3962, the Affordable Health Care for America Act. The
relief provisions for defined benefit pension plan funding were
not included in the bill as introduced. H.R. 3962 as amended
passed the House on November 11, 2009. Pension funding relief
was added to the bill by the Senate, which passed a full-text
alternative to H.R. 3962 (entitled ``Preservation of Access to
Care for Medicare Beneficiaries and Pension Relief Act of
2010'') on June 18, 2010. The House agreed to the Senate
alternative on June 24, 2010. H.R. 3962 became P.L. 111-192 on
June 25, 2010.
Title II contained provisions that provided funding relief
to the sponsors of single employer and multiemployer defined
benefit pension plans. The decline in financial markets in 2008
caused the financial condition of many private pension plans to
worsen. The primary relief for single employer plans permitted
an extension of the amortization period for funding losses
attributable to the decline in the markets in 2008. Additional
plan contributions, however, were required for companies that
elect relief and pay excessive executive compensation or make
excessive share holder payments. The primary relief for
multiemployer plans permitted an extended amortization period
for certain investment losses related to the decline in the
markets in 2008, subject to the plan meeting certain solvency
projections and limits on benefit increases.
h. H.R. 5623, Homebuyer Assistance and Improvement Act of 2010 (P.L.
111-198)
On June 29, 2010, Representative Kathleen Dahlkemper
introduced H.R. 5623. The amended bill passed the House under
suspension of the rules on the same day. The Senate passed the
bill without amendment by unanimous consent on June 30, 2010,
and the President signed the bill into law on July 2, 2010
(P.L. 111-198).
The Homebuyer Assistance and Improvement Act of 2010
extended the date by which homebuyers had to complete the
purchase of their home in order to be eligible for the
homebuyer tax credit. The Worker, Homeownership, and Business
Assistance Act of 2009 had given homebuyers until July 1, 2010
to complete their home purchase conditional on having entered
into a binding written contract by May 1, 2010. This act gave
homebuyers until September 30, 2010 to complete their home
purchase. Homebuyers were still required to have entered into a
binding contract by May 1, 2010.
i. H.R. 4213, Unemployment Compensation Extension Act of 2010 (P.L.
111-205)
On December 7, 2009, Ways and Means Committee Chair Charles
Rangel introduced H.R. 4213, the Tax Extenders Act of 2009. The
House passed H.R. 4213 on December 9, 2009. The Senate agreed
to a full-text alternative to H.R. 4213 on March 10, 2010,
entitled the American Workers, State, and Business Relief Act
of 2010. The Senate Alternative to H.R. 4213 included funding
relief for single employer and multiemployer defined benefit
pension plans. The House amended the Senate amendment to H.R.
4213 on May 28, 2010. This House proposal included a provision
providing for the disclosure of fees paid by participants in
401(k) retirement plans, as well as pension funding relief
provisions. All provisions were then dropped by the Senate when
it agreed to a new full-text substitute amendment that retitled
the bill as the ``Unemployment Compensation Extension Act of
2010'' on July 21, 2010, after extensive floor consideration.
This alternative contained only a provision to extend
unemployment compensation and was agreed to by the House on
July 22, 2010. H.R. 4213 became P.L. 111-205 on July 22, 2010.
The final version of this bill as passed by the House and
Senate did not contain any pension provisions.
j. H.R. 5552, Firearms Excise Tax Improvement Act of 2010 (P.L. 111-
237)
On June 17, 2010, Representative Ron Kind introduced the
Firearms Excise Tax Improvement Act of 2010, (FETIA, H.R.
5552), as a revision of H.R. 510, a bill co-sponsored by
Representative Paul Ryan. Senate Finance Committee Chair Max
Baucus also introduced similar legislation, S. 632. H.R. 5552
was amended and passed the House under suspension of the rules
on June 29, 2010; passed the Senate by unanimous consent on
August 5, 2010; and was signed by the President on August 16,
2010.
This new law addressed the administration of the excise tax
on firearms and ammunition that was paid by manufacturers.
Before this bill was enacted, payment of the excise taxes on
firearms and ammunition was required to be made by semimonthly
deposit. Under the FETIA, the tax was due quarterly when the
taxpayer filed the required excise tax returns.
k. H.R. 5297, Small Business Jobs Act of 2010 (P.L. 111-240)
On May 13, 2010, House Financial Services Committee Chair
Barney Frank introduced H.R. 5297. As introduced, the bills
title was ``Small Business Lending Fund Act of 2010.'' Its sole
purpose was to create a small business lending program within
the Treasury Department to increase the availability of loans
to small firms. On May 27, the House Financial Services
Committee reported the bill with an amendment in the nature of
a substitute. House passage of an amended version occurred on
June 17. The Senate took up the bill later that month, but
contentious floor proceedings led to extended consideration
during July, August, and September. On September 16, the Senate
agreed to an amendment in the nature of a substitute. One week
later, on September 23, 2010, the House voted to accept the
amendment proposed by the Senate, and the President signed the
measure into law.
H.R. 5297 (P.L. 111-240) included approximately $12 billion
in tax relief for qualified small firms, including a temporary
100% exclusion for gains on the sale of qualified small
business stock, a temporary increase in the deduction for
business start-up costs, the option in 2010 for qualified small
firms to carry back unused general business credits up to five
years, the opportunity for eligible small firms to use general
business credits to reduce their liability under the
alternative minimum tax in 2010, a temporary increase in the
section 179 expensing allowance, and an extension through 2010
of the 50% bonus depreciation allowance from 2008 and 2009.
The bill was offset by a number of revenue provisions,
including provisions that denied a tax credit for ``black
liquor'', the production of biofuel to the production of highly
corrosive fuels such as crude tall oil, required taxpayers
receiving rental income and service providers for rental
property who receive payments of $600 or more to file
information returns, increased the penalties for failing to
file information returns to the IRS and payees on time, and
made it easier for the IRS to impose a levy on federal payments
to contractors for unpaid taxes. Also included were revisions
to certain rules governing Roth retirement accounts.
l. H.R. 4337, the Regulated Investment Company Modernization Act of
2010 (P.L. 111-?? Pending)
On December 16, 2010, Representative Charles Rangel
introduced H.R. 4337. The bill was amended and passed by a
voice vote under suspension of the rules on September 28, 2010.
The bill was received in the Senate on November 15, 2010 and
placed on the Senate legislative calendar. The Senate passed
the bill, as amended, by unanimous consent on December 8, 2010.
The House agreed to the Senate amendment to the House amendment
by voice vote on December 15, 2010.
H.R. 4337 would modernize various technical rules governing
the tax treatment of regulated investment companies (RlCs)
under the Internal Revenue Code.
m. H.R. 4853, Tax Relief, Unemployment Insurance Reauthorization, and
Job Creation Act of 2010 (formerly a bill to extend the funding
and expenditure authority to the Airport and Airway Trust Fund)
(P.L. 111-312)
On March 16, 2010, Rep. Jim Oberstar (with Reps. Levin,
Camp, Costello, Mica, and Petri) introduced H.R. 4853, a bill
to extend the funding and expenditure authority to the Airport
and Airway Trust Fund. The House passed H.R. 4853 on March 17,
2010 by voice vote, and passed the Senate by unanimous consent
as amended on September 23, 2010. The House then concurred in
the Senate amendment, with an amendment to replace the text
with the Middle Class Tax Relief Act of 2010, on December 2,
2010 by a vote of 234-188. The Senate then concurred in the
House amendment, with an amendment to replace the text with the
Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010, on December 15, 2010 by a vote of 81-19.
The House concurred in the Senate amendment on December 16,
2010 by a vote of 277-148.
The legislation would extend the expiration dates of
provisions contained in the Economic Growth and Tax Relief
Reconciliation Act of 2001 and the Jobs and Growth Tax Relief
Reconciliation Act of 2003 for two years, extend unemployment
insurance for 13 months, provide alternative minimum tax relief
for two years (allowing an increased exemption and offset of
nonrefundable tax credits against the AMT in 2010 and 2011),
provide one hundred percent expensing for capital expenditures
made between September 8, 2010 and December 31, 2011, provide
fifty percent expensing for capital expenditures made between
January 1, 2012 and December 31, 2012, extend for two years
certain refundable tax credits included in the American
Recovery and Reinvestment Act of 2009 (including the reduced
income threshold for the refundable child credit, enhancements
to the earned income tax credit, and the American Opportunity
Tax Credit), extend for two years estate tax relief at a $5
million exemption amount and maximum rate of 35%, extend
through 2011 the 1603 grant program in lieu of renewable energy
tax credits, and extend through 2011 certain expiring tax
provisions (deduction for State and local general sales taxes,
deduction for qualified tuition and related expenses, parity
for transit benefits, above-the-line deduction for teacher
classroom expenses, additional standard deduction for real
property tax, tax-free distributions from IRAs to certain
public charities, treatment of certain dividends of regulated
investment companies, estate tax look-through treatment for
certain RIC stock held by nonresidents, and treatment of RICs
as ``qualified investment entities'' under FIRPTA, the R`D
credit, new markets tax credit, Empowerment Zone designations,
exception under subpart F for active financing income, look-
through treatment of payments between related CFCs under
foreign personal holding company income rules, 15-year straight
line cost recovery for qualified leasehold, restaurant, and
retail improvements and new restaurants, modification of tax
treatment of certain payments under existing arrangements to
controlling exempt organizations, basis adjustment to stock of
S corporations making charitable contributions of property,
increase in limit on cover over of rum excise tax revenues,
economic development credit for American Samoa, mine rescue
team training credit, election to expense advanced mine safety
equipment, deduction with respect to income attributable to
domestic production activities in Puerto Rico, credit to
holders of qualified zone academy bonds, Indian employment tax
credit, accelerated depreciation for business property on
Indian reservations, tax credit for certain expenditures for
maintaining railroad tracks, 7-year recovery period for certain
motorsports racing track facilities, expensing of
``Brownfields'' environmental remediation costs, work
opportunity tax credit for Hurricane Katrina employees,
increased rehabilitation credit for structures in the GO Zone,
charitable deduction for qualified computer contributions, tax
incentives for investment in the District of Columbia,
alternative fuel credit, ethanol credit, enhanced charitable
deduction for contributions of food inventory, enhanced
charitable deduction for contributions of book inventory,
expand the benefits for domestic film and television
production, allow accelerated depreciation for certain farming
equipment, modify penalties and rules for tax return preparers,
and provide tax benefits for disaster relief).
n. Federal Aviation Administration Reauthorization Act of 2009 (H.R.
915), and various Airport and Airway Trust Fund Extensions
(P.L. 111-12, 111-68, 111-69, 111-116, 111-153, 111-161, 111-
197, 111-216, 111-249 and 111-329)
H.R. 915, the Federal Aviation Administration Act of 2009
was considered by the Transportation and Infrastructure
Committee and reported to the full House.
On May 20, 2009, the Rules Committee approved H. Res. 464,
the Rule governing House consideration of that bill. That Rule
provided for adoption of an amendment adding the revenue
provisions under the jurisdiction of the Ways and Means
Committee to H.R. 915. The amendment would extend for 3 years
the Airport and Airway Trust Fund taxes applicable to the
transportation of persons by air, the transportation of
property by air, and fuel (aviation-grade kerosene and aviation
gasoline) used in commercial aviation. The amendment would
increase the taxes applicable to fuel used in noncommercial
aviation from 21.8 cents/gallon to 35.9 cents/gallon in the
case of aviation-grade kerosene and from 19.3 cents/gallon to
24.1 cents/gallon for aviation gasoline. These rates do not
include the 0.1 cent/gallon Leaking Underground Storage Tank
tax. The amendment would raise $599 million from fiscal years
2010 to 2014 and raise $1.324 billion from fiscal years 2010 to
2019.
Those provisions were incorporated into H.R. 915 when the
House adopted the Rule on May 21 by a vote of 234-178. The
House passed H.R. 915 on May 21 by a vote of 277-136.
The House later adopted provisions similar to those of H.R.
915 in a motion to agree with an amendment to the Senate
amendments to H.R. 1586. That motion passed the House on March
25, 2010 by a vote of 276-145. H.R. 1586 was later used as a
vehicle for other legislation and did not include the aviation
provisions when it ultimately became law.
The Committee worked with the Transportation and
Infrastructure Committee to enact a series of ten temporary
extensions of FAA authorizations, including the extension of
some revenue measure and the authority to expend sums in the
Airport and Airway Trust Fund. Those extensions are listed
below.
H.R. 1512, the Federal Aviation Administration Extension
Act of 2009, passed the House on March 18, 2009 by voice vote.
It extended expiring revenue provisions and trust fund spending
authority through September 30, 2009. The bill passed the
Senate on March 18, 2009 and was signed into law by the
President on March 30, 2009 (P.L. 111-12).
H.R. 2918 passed the House on September 25, 2009 by a vote
of 217-190. Division B of that legislation, the Continuing
Appropriations Resolution, 2010, included provisions extending
the expiring aviation-related revenue provisions and trust fund
spending authority through October 31, 2009. The bill passed
the Senate on September 30, 2009 and was signed into law by the
President on October 1, 2009 (P.L. 111-68).
H.R. 3607, the Fiscal Year 2010 Federal Aviation
Administration Extension Act, passed the House on September 23,
2009 by voice vote. That bill extended expiring revenue
provisions and trust fund spending authority through December
31, 2009. It passed the Senate on September 24, 2009 and was
signed into law by the President on October 1, 2009 (P.L. 111-
69).
H.R. 4217, the Fiscal Year 2010 Federal Aviation
Administration Extension Act, Part II, passed the House on
December 8, 2009 by voice vote. That bill extended expiring
revenue provisions and trust fund spending authority through
March 31, 2010. It passed the Senate on December 10, 2009 and
was signed into law by the President on December 16, 2009 (P.L.
111-116).
H.R. 4957, the Federal Aviation Administration Extension
Act of 2010, passed the House on March 25, 2010 by voice vote.
That bill extended expiring revenue provisions and trust fund
spending authority through April 30, 2010. It passed the Senate
on March 26, 2010 and was signed into law by the President on
March 31, 2010 (P.L. 111-153).
H.R. 5147, the Airport and Airway Extension Act of 2010,
passed the House on April 28, 2010 by voice vote. That bill
extended expiring revenue provisions and trust fund spending
authority through July 3, 2010. It passed the Senate on April
28, 2010 and was signed into law by the President on April 30,
2010 (P.L. 111-161).
H.R. 5611, the Airport and Airway Extension Act of 2010,
Part II, passed the House on June 29, 2010 by voice vote. That
bill extended expiring revenue provisions and trust fund
spending authority through August 1, 2010. It passed the Senate
on June 30, 2010 and was signed into law by the President on
July 2, 2010 (P.L. 111-197).
H.R. 5900, the Airline Safety and Federal Aviation
Administration Extension Act of 2010, passed the House on July
29, 2010 by voice vote. That bill extended expiring revenue
provisions and trust fund spending authority through September
30, 2010. It passed the Senate on July 30, 2010 and was signed
into law by the President on August 1, 2010 (P.L. 111-216).
H.R. 6190, the Airport and Airway Extension Act of 2010,
Part III, passed the House on September 23, 2010 by voice vote.
That bill extended expiring revenue provisions and trust fund
spending authority through December 31, 2010. It passed the
Senate on September 24, 2010 and was signed into law by the
President on September 30, 2010 (P.L. 111-249).
H.R. 6473, the Airport and Airway Extension Act of 2010,
Part IV, passed the House on December 2, 2010 by voice vote.
That bill extended expiring revenue provisions and trust fund
spending authority through March 31, 2010. It passed the Senate
on December 18, 2010 and was signed into law by the President
on December 22, 2010 (P.L. 111-329).
2. OTHER TAX PROPOSALS
a. H.R. 2454, American Clean Energy and Security Act of 2009
On May 15, 2009, Representative Henry A. Waxman introduced
H.R. 2454. The bill was first ordered reported out of the House
Energy and Commerce Committee on May 21, 2009 and reported with
a full-text substitute amendment by the House Energy and
Commerce Committee on June 5, 2009. H.R. 2454, as amended (by a
full-text alternative including a modified version of H.R.
2998), passed the House on June 26, 2009. The bill was received
in the Senate on July 6, 2009 and placed on the Senate
legislative calendar on July 7, 2009.
H.R. 2454 sets forth provisions concerning clean energy,
energy efficiency, reducing global warming pollution,
transitioning to a clean energy economy, and providing for
agriculture and forestry related offsets. The legislation
includes provisions to (1) create a combined energy efficiency
and renewable electricity standard and requiring retail
electricity suppliers to meet 20% of their demand through
renewable electricity and electricity savings by 2020; (2) set
a goal of, and requiring a strategic plan for, improving
overall U.S. energy productivity by at least 2.5% per year by
2012 and maintaining that improvement rate through 2030; and
(3) establish a cap-and-trade system for greenhouse gas (GHG)
emissions and setting goals for reducing such emissions from
covered sources by 83% of 2005 levels by 2050. The legislation
also requires the Secretary of the Treasury to provide tax
refunds from the Climate Change Consumer Refund Account
(established by H.R. 2454) on a per capita basis to households.
b. H.R. 4154, Permanent Estate Tax Relief for Families, Farmers, and
Small Businesses Act of 2009
On December 3, 2009, the House passed H.R. 4154. Division A
is the Permanent Estate Tax Relief for Families, Farmers, and
Small Businesses Act of 2009. Division B is the Statutory Pay-
As-You-Go Act of 2009.\2\ Despite its short title, Division A
of H.R. 4154 does not target estate tax relief on farmers and
small businesses. Rather, H.R. 4154 would apply the same estate
tax relief to all categories of assets.
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\2\Under the terms of H. Res. 941, adopted by the House on December
3, the text of H.R. 2920 was added to the end of the text of H.R. 4154
inengrosment. The House had previously approved H.R. 2920, the
Statutory Pay-As-You-Go Act of 2009, by a vote of 265-166, on July 22.
---------------------------------------------------------------------------
H.R. 4154 would permanently extend 2009 estate tax law,
effective January 1, 2010. The estate tax exemption would
remain at $3.5 million per decedent. The top estate tax rate
would remain at 45%. The $3.5 million exemption amount would
not be indexed for inflation. There is no provision for any
unused exemption to carry over to the surviving spouse.
H.R. 4154 would repeal several parts of the Economic Growth
and Tax Relief Reconciliation Act of 2001 (EGTRRA, P.L. 107-16,
enacted June 7, 2001). It would repeal the subtitle of EGTRRA
(Title V, subtitle A) that repeals the estate tax and
generation-skipping transfer tax in 2010. It would also repeal
the subtitle (Title V, subtitle E) that provides for the
substitution of a modified carryover basis (instead of a step-
up in basis) for inherited assets in 2010. It would repeal
Section 511(d) that provides for the gift tax to continue in
2010, with a top tax rate of 35%, and Section 521(b)(2) that
establishes a lifetime limit of $1 million on the exclusion
from the gift tax. H.R. 4154 would also repeal Internal Revenue
Code (IRC) subsection 2511(c) which treats certain transfers in
trust as a taxable gift.
Under H.R. 4154, the sunset provision of EGTRRA would not
apply to the remaining portions of Title V of EGTRRA. That
means that some changes in estate and gift tax law made by
EGTRRA would continue beyond December 31, 2010. This includes
the subordinate $1 million cumulative lifetime exclusion for
gifts (above and beyond the annual gift exclusion) and the
deduction for state death taxes (in place of the previous tax
credit).
The House vote on H.R. 4154 was 225 to 200. No Republicans
voted for the bill. Twenty-six Democrats joined 174 Republicans
in opposing the bill. The bill was received in the Senate on
December 16, 2009, there was an objection to a unanimous
consent request to take up and pass H.R. 4154 at that time. The
bill was placed on the Senate legislative calendar on January
20, 2010.
c. H.R. 4783, To accelerate the income tax benefits for charitable cash
contributions for the relief of victims of the earthquake in
Chile, and to extend the period from which such contributions
for the relief of victims of the earthquake in Haiti may be
accelerated
On March 9, 2010, Representative Sander M. Levin introduced
H.R. 4783. The bill passed the House by a voice vote under
suspension of the rules on March 10, 2010. The bill was
received in the Senate on March 10, 2010 and referred to the
Senate Committee on Finance on March 26, 2010.
H.R. 4783 treats cash contributions made after February 26,
2010, and on or before April 15, 2010, for the relief of
earthquake victims in Chile as having been made on December 31,
2009, for purposes of the tax deduction for charitable
contributions. The bill deems a contribution made by telephone
or text as meeting the recordkeeping requirements of the IRC if
the taxpayer produces a telephone bill showing the name of the
donee organization and the date and amount of the contribution.
Documentation for other forms of donations were not changed.
The bill also extends from March 1, 2010, through April 15,
2010, the period in which cash contributions for the relief of
earthquake victims in Haiti will be deemed to have been made on
December 31, 2009, for purposes of the tax deduction for
charitable contributions.
d. H.R. 4168, Algae-based Renewable Fuel Promotion Act of 2010
On December 1, 2009, Representative Harry Teague introduced
H.R. 4168. The bill was amended and passed by a voice vote in
the House under suspension of the rules on September 28, 2010.
The bill was received in the Senate on September 29, 2010 and
placed on the Senate legislative calendar.
H.R. 4168 modifies the definition of ``cellulosic biofuel''
for purposes of the cellulosic biofuel producer tax credit and
the special depreciation allowance to mean any liquid fuel
which is derived solely from qualified feedstocks. The bill
defines ``qualified feedstocks'' as any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis and any cultivated algae, cyanobacteria, or
lemna.
3. OTHER TAX MATTERS
a. Budget Hearings (Full Committee)
On March 4, 2009, the full Committee held a hearing to
receive testimony from Peter R. Orszag, Director of the Office
of Management and Budget, concerning programs within the
President's FY 2010 budget overview within the jurisdiction of
the Committee.
On February 3, 2010, the full Committee held a hearing to
receive testimony from Peter R. Orszag, Director of the Office
of Management and Budget, concerning programs within the
President's FY 2011 budget within the jurisdiction of the
Committee.
On February 3, 2010, the full Committee held a hearing to
receive testimony from Secretary of the Treasury Timothy F.
Geithner concerning programs within the President's FY 2011
budget within the jurisdiction of the Committee.
On May 7, 2009, the full Committee held a hearing to
receive testimony from four members of Congress--the Honorable
James L. Oberstar, the Honorable John L. Mica, the Honorable
Jerry F. Costello, and the Honorable Thomas E. Petri--and from
Robert A. Sunshine, Deputy Director of the Congressional Budget
Office, regarding the financial status of the Airport and
Airway Trust Fund.
b. Tax Hearings
On May 7, 2009, the Full Committee received testimony on
the status and financing of the Airport and Airway Trust Fund
from the following witnesses: Panel 1--(i) The Honorable James
L. Oberstar, Member of Congress, United States House of
Representatives, (ii) The Honorable John L. Mica, Member of
Congress, United States House of Representatives, (iii) The
Honorable Jerry F. Costello, Member of Congress, United States
House of Representatives, and (iv) The Honorable Thomas E.
Petri, Member of Congress, United States House of
Representatives; Panel 2--Robert A. Sunshine, Deputy Director,
Congressional Budget Office.
On October 1, 2009, the Full Committee received testimony
on the impact of the financial crisis on private employer
defined benefit pension plans and the investment advice rules
that apply to retirement plans from the following witnesses:
Panel 1--(i) Craig P. Rosenthal, Principal, Mercer; (ii) Norman
Stein, Senior Legislative Counsel, Pension Rights Center; (iii)
Bill Nuti, Chairman and Chief Executive Officer, NCR, on behalf
of the American Benefits Council; (iv) Judith Mazo, Senior Vice
President, Director of Research, The Segal Company, on behalf
of the National Coordinating Committee for Multiemployer Plans
(NCCMP) and the Multiemployer Pension Plan Consortium; (v)
Damon Silvers, Associate General Counsel, AFL-CIO; (vi) Mark
Warshawsky, Director of Retirement Research, Watson Wyatt
Worldwide; Panel 2--(i) LeRoy Gilbertson, Member, National
Policy Council, American Association of Retired Persons (AARP);
(ii) Mark A. Davis, Vice President, CAPTRUST Financial
Advisors, on behalf of the National Association of Independent
Retirement Plan Advisors; (iii) Robert G. Chambers, Partner,
McGuireWoods, on behalf of the American Benefits Council, the
Profit Sharing/401k Council of America, and the Society for
Human Resource Management; (iv) Christopher Jones, Executive
Vice President of Investment Management and Chief Investment
Officer, Financial Engines; (v) Edmund F. Murphy III, Managing
Director, Putnam Investments, LLC; (vi) Jim McCarthy, Managing
Director, Morgan Stanley, on behalf of the Securities Industry
and Financial Markets Association (SIFMA).
On April 14, 2010, the Full Committee received testimony on
the effectiveness of current energy tax policy and on policy
options to ensure continued job growth while at the same time
advancing national energy policy from the following witnesses:
Panel 1--(i) The Honorable Michael Mundaca, Assistant Secretary
for Tax Policy, United States Department of The Treasury, (ii)
Matt Rogers, Senior Advisor to the Secretary, United States
Department of Energy; Panel 2--(i) T. Boone Pickens, Chairman,
BP Capital, (ii) Vic Abate, Vice President of Renewables,
General Electric, (iii) Dr. Jeffrey Sachs, Director, The Earth
Institute, Columbia University, (iv) Dr. Joseph Romm, Senior
Fellow, Center for American Progress, (v) Karen Harbert,
President and Chief Executive, Institute for 21st Century
Energy, U.S. Chamber of Commerce; Panel 3--(i) Dr. Stephanie
Burns, Chairman, President and Chief Executive Officer, Dow
Corning, (ii) The Honorable Reed Hundt, Chief Executive
Officer, Coalition for Green Capital, (iii) The Honorable Rod
Dole, Auditor-Controller-Treasury-Tax Collector of Sonoma
County, (iv) Mark Bolinger, Research Scientist, Lawrence
Berkeley National Laboratory, and (v) The Honorable David
Bohigian, Managing Partner, E2 Capital Partners.
On May 19, 2010, the Full Committee received testimony on
the current tax laws and reporting requirements applicable to
wagering in the United States. The Full Committee also received
testimony on proposals within the Committee's jurisdiction
pertaining to legislation pending in the Congress to license
and regulate internet gambling activities. This testimony was
received from the following witnesses: Panel 1--(i) The
Honorable Barney Frank, Member of Congress, United States House
of Representatives, (ii) The Honorable Jim McDermott, Member of
Congress, United States House of Representatives, and (iii) The
Honorable Bob Goodlatte, Member of Congress, United States
House of Representatives; Panel 2--(i) Christopher Wagner,
Commissioner, Small Business Self-Employed Division, Internal
Revenue Service, United States Department of The Treasury, and
(ii) Charles M. Steele, Deputy Director, Financial Crimes
Enforcement Network, United States Department of The Treasury.
On July 22, 2010, the Full Committee heard testimony on
transfer pricing issues in the global economy from the
following witnesses: Panel 1--(i) Stephen Shay, Deputy
Assistant Secretary for International Tax Affairs, United
States Department of The Treasury, and (ii) Thomas Barthold,
Chief of Staff, Joint Committee on Taxation; Panel 2--(i) Dr.
Martin Sullivan, (ii) R. William Morgan, Managing Director,
Horst Frisch Incorporated, (iii) Reuven Avi-Yonah, Professor,
University of Michigan School of Law, and (iv) James R. Hines
Jr., Professor, University of Michigan School of Law.
c. Climate Change Hearings (Full Committee)
On February 25, 2009, the Full Committee received testimony
on a scientific discussion of the objectives that climate
change legislation should seek to achieve from (i) Dr. James
Hansen, Adjunct Professor, The Earth Institute at Columbia
University, (ii) Dr. Brenda Ekwurzel, Climate Scientist, Union
of Concerned Scientists, and (iii) Dr. John Christy,
Distinguished Professor of Atmospheric Science and Director of
the Earth System Science Center, University of Alabama in
Huntsville.
On March 26, 2009, the Full Committee received testimony on
ways to design climate change legislation to reduce or
eliminate price volatility while still achieving specific
science-based environmental objectives from the following
witnesses: Panel 1--Dr. Douglas Elmendorf, Director,
Congressional Budget Office; Panel 2--(i) Dr. Daniel Lashof,
Director, Climate Center, Natural Resources Defense Council,
(ii) Dr. Dallas Burtraw, Senior Fellow, Resources for the
Future, (iii) Dr. William Whitesell, Director of Policy
Research, Center for Clean Air Policy, (iv) Michelle Chan,
Program Director, Green Investments, Friends of the Earth, (v)
Dr. Gilbert Metcalf, Professor of Economics, Tufts University,
(vi) Dr. Margo Thorning, Senior Vice President and Chief
Economist, American Council for Capital Formation.
d. Select Revenue Measures Subcommittee
July 14, 2010, Hearing on the Taxation of Reinsurance
Between Related Entities, at which we heard from the Deputy
Assistant Secretary at Treasury for International Tax Affairs,
as well as other public and private sector advocates regarding
proposals to change the tax rules regarding reinsurance
premiums paid to related foreign reinsurance companies.
June 15, 2010, Hearing on Regulated Investment Company
(RIC) Modernization Proposals, at which we heard testimony from
private sector experts that the tax rules governing regulated
investment companies, or mutual funds, were outdated and
support for H.R. 4337, The Regulated Investment Company
Modernization Act of 2009, expected to be signed into law
before the end of this year.
May 13, 2010, Hearing on Infrastructure Banks, at which we
heard from Congressional, state, and local advocates, as well
as private sector experts, on proposals to create a federal
infrastructure bank.
March 23, 2010, Hearing on Taxes as Part of the Federal
Budget, at which we heard testimony from the Chief of Staff of
the Joint Tax Committee and other private sector experts on the
role of taxes in the federal budget.
B. Legislative Review of Trade Issues
1. U.S. TRADE AGENDA
a. Hearings
i. On July 27, 2010, the Subcommittee held a hearing on
enhancing the transatlantic trade relationship. The hearing
explored bilateral and multilateral issues of common interest
for the United States and the European Union, and examined the
pursuit of objectives through the existing transatlantic
architecture. The hearing focused on: (1) potential issues
presented by differences in approaches to regulatory standards
on both a bilateral and multilateral basis; (2) ways to advance
the World Trade Organization's (WTO) Doha Round of
international trade negotiations; (3) opportunities for greater
engagement between Congress and the European Parliament,
particularly given the Parliament's heightened role in European
trade policy-making; and (4) ways to take advantage of existing
structures, including the Transatlantic Economic Council (TEC),
the WTO and Article 2 of the North Atlantic Treaty Organization
(NATO) treaty to promote economic collaboration. The
Subcommittee heard testimony from private sector interests and
a former official of the Carter and Clinton Administrations.
ii. On April 29, 2010, the Subcommittee held a hearing on
U.S.-Cuba policy. The hearing explored whether relaxing current
Cuba travel and trade restrictions would advance U.S. economic
objectives, as well as democracy and human rights in Cuba. The
hearing also reviewed U.S. policy toward Cuba and changes to
that policy under the Obama Administration and evaluated
possible policy options going forward. The Subcommittee heard
testimony from private sector interests and a former official
of the Reagan Administration.
iii. On July 21, 2009, the Subcommittee held a hearing on
how the system of trade advisory committees is functioning, and
on how to increase transparency and public participation in the
development of U.S. trade policy. The hearing also explored the
development of trade policy from several perspectives. The
Subcommittee heard testimony from an Administration official on
its recently-initiated policy review and consultations
concerning the trade advisory committees. The hearing explored
whether administrative or statutory changes, and building on
revisions implemented in recent years, might broaden the range
of views represented and permit the advisory committees to
provide more timely and useful recommendations. The
Subcommittee also heard testimony from private sector
interests.
iv. On May 14, 2009, the Subcommittee held a hearing on
investment obligations in U.S. bilateral investment treaties
(BITs) and free trade agreements (FTAs). The committee examined
the Obama Administration's intent to ``review the
implementation of our FTAs and BITs to ensure that they advance
the public interest.'' The hearing focused on the investment
protections that are included in U.S. FTAs and BITs, including
provisions that have helped to safeguard investments held by
U.S. citizens in dozens of foreign countries and protect U.S.
investors from expropriation without compensation, as well as
discriminatory and inequitable treatment by foreign
governments. The hearing also addressed the following concerns:
whether our FTAs and BITs give foreign investors in the United
States greater rights than U.S. investors have under U.S. law;
whether the FTAs and BITs give governments the ``regulatory and
policy space'' needed to protect the environment and the public
welfare; and whether an investor should have the right to
submit to arbitration a claim that a host government has
breached its investment obligations under a FTA or a BIT. The
Subcommittee heard testimony from private sector interests.
v. On March 24, 2009, the Subcommittee held a hearing on
climate change legislation. The hearing focused on a discussion
of the trade aspects of climate change legislation, including
how to minimize carbon leakage and maintain U.S.
competitiveness. The Subcommittee heard testimony from private
sector interests to ensure that any actions undertaken by the
United States are consistent with our international obligations
and that U.S. businesses, farmers, and workers remain
competitive until a global climate change agreement comes into
effect.
b. Legislation
The National Defense Authorization Act of Fiscal Year 2011
On April 26, 2009, Congressman Skelton (D-MO) introduced
H.R. 5136, the National Defense Authorization Act of Fiscal
Year 2011, which included a requirement that the Secretary of
Defense, in consultation with the U.S. Trade Representative,
consider the effect that other countries' trade policies have
on the ability of the United States to obtain rare earth
minerals. On April 26, 2009, Chairman Levin and Chairman of the
House Committee on Armed Services Skelton exchanged letters,
acknowledging the jurisdiction of the Ways and Means Committee
and its agreement to forgo consideration of the bill because of
amendments to address the concerns of the Committee. On May 21,
2010, the Committee referred the bill as amended for floor
consideration. The House passed H.R. 5136, as amended, by a
recorded vote of 229-186 and referred the bill to the Senate on
May 28, 2010. On June 9, 2010, the bill was received in the
Senate. No further action was taken in the Senate.
To Establish an Emergency Commission to End the Trade
Deficit
On April 2, 2009, Congressman Peter DeFazio (D-OR)
introduced H.R. 1875, to establish an emergency commission to
end the trade deficit. The bill was referred to the House
Committee on Ways and Means. On July 29, 2010, Chairman Levin
offered a manager's amendment to H.R. 1875, which passed the
House on July 29, 2010, under a suspension of the rules by a
voice vote. The bill was sent to the Senate on July 29, 2010,
and referred to the Senate Committee on Finance on August 5,
2010. No further action was taken on this legislation in the
111th Congress.
c. Executive Sessions
On March 17, 2010, the Committee held an executive session
with Ambassador Ronald Kirk, United States Trade
Representative, to discuss the President's 2010 Trade Policy
Agenda and 2009 Annual Report that were released on March 1,
2010.
d. Congressional Delegations and Staff Delegations
Yokohama, Japan (November 9-12, 2010)
Congressman Kevin Brady (R-TX) and Committee staff for the
Majority and the Minority traveled to Yokohama, Japan, from
November 9-12, 2010, as part of the Asia Pacific Economic
Cooperation (APEC) annual meetings. The purpose of the trip was
to meet with trade ministers from the APEC member countries,
business leaders and U.S. officials about increasing U.S.
economic engagement and cooperation in the region. Of
particular interest were discussions regarding: (1) the ongoing
Trans-Pacific Partnership Agreement negotiations among many of
the APEC members, including the United States; (2) the World
Trade Organization Doha Round; and (3) priorities for the U.S.
hosting of the annual APEC meetings in 2011.
Seoul, Korea (November 5-12, 2010)
Committee staff for the Majority and the Minority traveled
to Seoul, Korea, from November 5-12, 2010, to provide guidance
to the U.S. Trade Representative (USTR) on congressional views
relating to the U.S.-Korea Free Trade Agreement for the
negotiations that were taking place in thelead up to, and
during, the G-20 Summit.
Geneva, Switzerland (November 30-December 3, 2009)
Committee staff for the Majority and the Minority traveled
to Geneva, Switzerland, from November 30-December 3, 2009, to
attend the World Trade Organization (WTO) Ministerial meeting.
Discussions were held with key WTO member country negotiators
and WTO Secretariat staff regarding trade issues of interest,
including the WTO Doha Round negotiations.
Singapore (November 10-14, 2009)
Congressman Sander M. Levin (D-MI), Congressman Kevin Brady
(R-TX), and Committee staff for the Majority and the Minority
traveled to Singapore from November 10-14, 2009, to attend the
Asia-Pacific Economic Cooperation (APEC) Annual Leader's Week
(``Ministerial'') meetings. Two of the three core issue areas
that were discussed at the Ministerial were related to trade:
(1) supporting multilateral trading systems; and (2)
accelerating regional economic integration and increasing U.S.
economic involvement in the region.
Haiti (September 30-October 2, 2009)
Committee staff for the Majority and the Minority traveled
to Haiti from September 30-October 2, 2009, to participate in
the Inter-American Development Bank (IDB) and International
Labor Organization's (ILO's) events to highlight investment and
business opportunities in Haiti, including under the HOPE
program passed by Congress.
Nairobi, Kenya and Addis Ababa and Axum, Ethiopia (August
2-9, 2009)
Congressman Jim McDermott (D-WA) and Committee staff for
the Majority and the Minority traveled to Nairobi, Kenya, and
Addis Ababa and Axum, Ethiopia, from August 2-9, 2009, to
attend the Eighth Annual Forum on the African Growth
Opportunity Act (AGOA), as well as to attend subsequent
meetings in Ethiopia with USTR.
Peru (July 12-18, 2009)
Committee staff for the Majority and the Minority traveled
to Peru from July 12-18, 2009. The purpose of the trip was to
investigate issues related to the U.S.-Peru Free Trade
Agreement (FTA). Staff reviewed the implementation of the free
trade agreement and in particular, the FTA's labor and
environmental provisions. The staff delegation met with
government and nongovernment officials to assess Peru's efforts
to meet its FTA labor-related commitment to protect and enforce
workers-rights, as well as attended the inaugural meeting of
the Forest Sector Subcommittee, which was created under the
FTA.
Mexico and Trinidad and Tobago (April 16-19, 2009)
Chairman Charles B. Rangel traveled to Mexico with
President Obama on April 12 before joining the delegation to
Trinidad and Tobago for the Summit of the Americas. The
Chairman was joined by Majority staff in Mexico. At the Summit
of the Americas in Trinidad and Tobago, where Congressman Kevin
Brady (R-TX) and Minority staff joined the delegation, the
focus was the Doha Round, bilateral and plurilateral trade
agreements with nations in the region, trade preferences and
more generally, how best to shape trade to promote economic
development, stability and prosperity.
Bogota, Medellin, and Cali, Colombia; Port of Spain,
Trinidad and Tobago, and Panama City, Panama (April
12-22, 2009)
Congressman Sander M. Levin (D-MI) and Committee staff for
the Majority traveled to Bogota, Medellin, and Cali, Colombia;
Port of Spain, Trinidad and Tobago, and Panama City, Panama,
from April 12-22. The purpose of the trip was to investigate
issues related to the U.S.-Colombia Free Trade Agreement; the
Summit of the Americas; and the U.S.-Panama Free Trade
Agreement. With respect to Colombia, the focus was on the
climate for exercising labor rights in Colombia and other
points of focus included the human rights situation in Colombia
and the impact of the proposed free trade agreement on the
Colombian economy, including the agriculture sector. At the
Summit of the Americas in Trinidad and Tobago, the focus was
the Doha Round, bilateral and plurilateral trade agreements
with nations in the region, trade preferences and more
generally, how best to shape trade to promote economic
development, stability and prosperity. In Panama, the focus of
the trip was on Panama's labor law regime and the impact of the
FTA on the Panamanian economy.
2. BILATERAL AND REGIONAL ISSUES
a. Free Trade Agreements
i. Completed Agreements
In June and July 2007, the United States signed free trade
agreements with Colombia, Panama, Peru, and South Korea. The
agreement with Peru was approved and implemented through the
United States-Peru Trade Promotion Agreement Implementation
Act, in December 2007 (P.L. 110-138). But, due to various
concerns by some parties with the remaining three agreements,
Congress has not approved or implemented the agreements with
Colombia, Panama, or Korea.
The Administration continues its work to address the
remaining concerns with the pending agreements. For example, in
November 2010, the United States and Panama signed a Tax
Information Exchange Agreement. In December 2010, the United
States and Korea reached a deal to address outstanding issues
concerning trade in automobiles.
ii. Ongoing Negotiations
Trans-Pacific Partnership Agreement
On September 22, 2008, U.S. Trade Representative Schwab
announced that the United States would join negotiations to
conclude the Trans-Pacific Strategic Economic Partnership
Agreement. The four original members--Brunei Darussalam, Chile,
New Zealand, and Singapore--signed an agreement in 2005. The
United States was the first additional country to seek to join
the agreement. In March 2008, the United States began
participating in negotiations related to financial services and
investment with the original four members. In September 2008,
the Bush Administration announced that the United States would
negotiate full TPP membership, opening all economic sectors to
negotiation. In December 2008, President Bush notified Congress
that USTR would also be negotiating with potential TPP members
from Australia, Peru, and Vietnam. On December 14, 2009, United
States Trade Representative Ron Kirk notified Congress that
President Obama intended to enter into the TPP negotiations.
During 2010, the United States, Australia, Peru, Vietnam (as an
associate member), and the four original members held four
rounds of TPP negotiations. At the APEC leaders' meeting in
November, Malaysia formally joined the negotiations and
Vietnam, which had previously only participated as an associate
member, became a full participant in the negotiations.
b. Trade Preference Programs
i. Legislation
On December 13, 2010, Chairman Levin introduced H.R. 6517,
the Omnibus Trade Act of 2010. This legislation, among other
things, extended the Generalized System of Preferences (GSP)
program until June 30, 2012 and extended the Andean Trade
Promotion and Drug Eradication Act (ATPDEA) for Colombia and
Ecuador until June 30, 2012 and changed the biannual reporting
requirement to an annual reporting requirement. On December 15,
2010, the House passed this legislation, as amended, by voice
vote on December 15, 2010. On December 16, 2010, this
legislation was delivered to the Senate. On December 22, 2010,
the Senate agreed to an amendment to H.R. 6517 that extended
the Andean program for Colombia and Ecuador for 6 weeks. The
House agreed to the amendment, and the bill is expected to
become law. The GSP program was not renewed.
On April 28, 2010, the Chairman Levin, Ranking Member Dave
Camp (R-MI), and Congressman Charles Rangel (D-NY) introduced
H.R. 5160, the Haiti Economic Lift Program (HELP) Act of 2010.
The bill was part of the U.S. response for Haiti's post-
earthquake economic recovery. The HELP Act extended both the
Caribbean Basin Trade Partnership Act (CBTPA) and the HOPE Act
through September 30, 2020. The bill provides duty-free
treatment for additional textile and apparel products that are
wholly assembled or knit-to-shape in Haiti regardless of the
origin of the inputs. The bill also substantially increases
tariff preference levels (TPLs) under which certain Haitian
knit and woven apparel products may receive duty-free treatment
regardless ofthe origin of the inputs. The bill extends until
December 20, 2015, the rule that provides duty-free treatment
for apparel wholly assembled or knit-to-shape in Haiti with at
least 50 percent value from Haiti, the United States, a U.S.
free trade agreement partner or preference program beneficiary,
or a combination thereof. The bill similarly extends until
December 20, 2017, duty-free treatment for Haitian apparel with
at least 55 percent of value from qualifying countries, and
until December 20, 2018, duty-free treatment for Haitian
apparel with at least 60 percent of value from qualifying
countries. The bill extends until December 20, 2016, the rule
that provides duty-free treatment for wire harness automotive
components imported from Haiti. On May 5, 2010, the House took
up the bill, as amended, under suspension and agreed to the
bill by voice vote. On May 6, 2010, the bill was received in
the Senate and passed by voice vote. On May 24, 2010, H.R. 5160
was signed by the President and became Public Law No. 111-171.
On December 11, 2009, the Chairman introduced H.R. 4284, a
bill to extend to December 30, 2010, the Generalized System of
Preferences, the Andean Trade Preference Act and the Andean
Trade Preferences and Drug Eradication Act (hereinafter ``the
Andean Preference Programs''). On December 14, 2009, the House
took up the bill under suspension and agreed to the bill by
voice vote. H.R. 4284 extended the Andean Preference Programs
until December 30, 2010. On December 22, 2009, the bill was
received in the Senate and passed by unanimous consent. On
December 28, 2009, H.R. 4284 was signed by the President and
became Public Law No. 111-124.
On March 4, 2009, Congressman Chris Van Hollen (D-MD)
introduced H.R. 1318: Afghanistan-Pakistan Security and
Prosperity Enhancement Act. The bill was referred to the House
Ways and Means Committee. On May 10, 2010, H.R. 1318 was
included as a House amendment to H.R. 2410, the Foreign
Relations Authorization Act, Fiscal Years 2010 and 2011. On
June 10, 2010, the House passed the bill, as amended, by a
recorded vote, 235-187. On June 22, 2010 the bill was received
in the Senate and referred to the Senate Committee on Foreign
Relations. No further action was taken on this legislation in
the 111th Congress.
ii. Hearings and Executive Sessions
On November 17, 2009, the Committee held a hearing to
evaluate the operation and impact of the U.S. preference
programs to date, to understand the lessons learned from the
circumstances where the preference programs have been
successful, and to identify opportunities for improvement in
areas where challenges remain. The Subcommittee heard testimony
from Members of Congress, officials from the Obama
Administration, academics, representatives from the business
community and other non-governmental organizations.
iii. Reports
Andean Countries
In September 2010, the Committee received a report from the
ITC entitled Andean Trade Preference Act: Impact on U.S.
Industries and Consumers and on Drug Crop Eradication and Crop
Substitution, 2009. Fourteenth Report. Publication 4188.
Washington, D.C.: September 2010.
In June 2010, the Committee received a report from the U.S.
Trade Representative entitled Fifth Report to the Congress on
the Operation of the Andean Trade Preference Act as Amended.
Washington, D.C.
Caribbean Countries
In October 2010, the Committee received a report from
International Labour Organization, Better Work Haiti entitled
Better Work Haiti: Garment Industry 1st Biannual Report under
the HOPE II Legislation. Geneva, Switzerland.
c. Burma
i. Legislation
Annual Renewal
On June 4, 2009, Congressman Joseph Crowley (D-NY)
introduced H.J. Res. 56 to authorize the renewal of import
restrictions imposed under the Burma Freedom and Democracy Act.
The joint resolution was referred solely to the Ways and Means
Committee. The House passed H.J. Res. 56 under a suspension of
the rules by voice vote on July 21, 2009. The Senate passed the
joint resolution without amendment by unanimous consent on July
23, 2009. On July 28, 2009, H.J. Res. 56 was signed by the
President and became Public Law No. 111-42.
On May 11, 2010, Congressman Joseph Crowley (D-NY) and
Congressman Charles Boustany (R-LA) introduced H.J. Res. 83 to
authorize the renewal of import restrictions imposed under the
Burma Freedom and Democracy Act. The joint resolution was
referred solely to the Ways and Means Committee. The House
passed H.J. Res. 83 under a suspension of the rules by voice
vote on July 14, 2010. On July 22, 2010, the Senate passed the
joint resolution without amendment by a recorded vote of 99-1.
On July 27, 2010, H.J. Res. 83 was signed by the President and
became Public Law No. 111-210.
On September 29, 2010, Congressman Donald Manzullo (R-IL)
introduced H. Res. 1677 to condemn the Burmese elections held
on November 7, 2010. The resolution was referred to the House
Committees on Foreign Affairs, Judiciary and Ways and Means. On
November 17, 2010, Chairman Levin and Chairman of the House
Foreign Affairs Committee Berman exchanged letters,
acknowledging the jurisdiction of the Ways and Means Committee
and its agreement to forgo consideration of H. Res. 1677
because of modifications made to address the Committee's
jurisdiction. The House passed H. Res. 1677, as amended, under
a suspension of the rules by voice vote on November 18, 2010.
d. China
i. Legislation
On May 13, 2009, Congressman Tim Ryan (D-OH) introduced
H.R. 2378, the Currency Reform for Fair Trade Act. The bill was
referred to the House Committee on Ways and Means. On September
24, 2010, the Chairman held a markup of the bill and proposed a
Chairman's amendment in the nature of a substitute. H.R. 2378,
as amended, was reported out of Committee, by voice vote on
September 24, 2010. The House passed H.R. 2378, as amended, by
a recorded vote of 348-79, 6 present/not voting. On September
29, 2010, the bill was received in the Senate and referred to
the Senate Committee on Finance. No further action was taken on
this legislation in the 111th Congress.
ii. Hearings
The Committee held a series of hearings on trade with China
in the 111th Congress.
The first hearing, held on March 24, 2010, addressed the
issue of currency manipulation and its effects on U.S.
businesses and workers. The hearing focused on: (1) the
immediate and long-term impact of China's exchange rate policy
on the U.S. and global economic recoveries and, more
specifically, on U.S. job creation; and (2) steps that could be
taken to address the issues. The Committee heard testimony from
private sector interests, and former officials from the Carter
and Reagan Administrations.
The second hearing, held on June 16, 2010, addressed the
growing concerns that China may be moving away from market-
based economic reform and toward a system often described as
``state capitalism,'' with trade-distorting subsidies and
restrictions on trade and investment. The hearing examined this
general trend and its impact on the United States and the
global economy, as well as several specific Chinese policies
that appear to discriminate against U.S. businesses and to
distort trade and investment flows. The purpose of the hearing
was to consider: (1) The ``indigenous innovation'' initiative;
(2) systemic lack of enforcement of intellectual property
rights; (3) adoption of national product standards (such as in
wireless technologies); (4) renewable energy equipment
policies; and (5) industrial subsidies and other measures that
contribute to overcapacity in capital-intensive industries like
steel and wind power equipment. The Committee received
testimony from six Members of Congress, private sector
interests and former officials from the Carter and Bush
Administrations.
The third hearing, held on September 15, 2010, addressed
the issue of currency manipulation and its effects on U.S.
businesses and workers. The purpose of the hearing was to
consider: (1) Whether, and to what extent, the Chinese renminbi
(RMB) is undervalued as a result of foreign government
intervention in the currency markets; (2) the immediate and
long-term impact an undervalued RMB has on the economies of the
United States and other countries, and on the global economy;
and (3) what action, if any, the United States should take to
address exchange rate manipulation. During the hearing, the
Committee received testimony from four Members of Congress,
private sector and former officials from the Carter and Clinton
Administrations.
The fourth hearing, held on September 16, 2010, addressed
the issue of currency manipulation and the Obama
Administration's response to China's currency undervaluation.
The Committee received testimony during the hearing from the
Honorable Timothy Geithner, the Secretary of the U.S.
Department of the Treasury.
iii. Reports
On December 11, 2009, the Committee received from the U.S.
Trade Representative the ``2009 Report to Congress on China's
WTO Compliance,'' pursuant to section 421 of the U.S.-China
Relations Act of 2000 (P.L. 106-286).
On December 13, 2010, the Committee received a report from
the ITC entitled the China: Intellectual Property Infringement,
Indigenous Innovation Policies, and Frameworks for Measuring
the Effects on the U.S. Economy. Publication: 4199. Washington,
D.C. November 2010.
e. Cuba
In September 2009, the Committee received a report from the
GAO entitled U.S. Embargo on Cuba: Recent Regulatory Changes
and Potential Presidential or Congressional Actions.
Publication GAO-09-951R. Washington, D.C.: September 2009.
f. Iran
On April 30, 2009, Congressman Berman (D-CA) introduced
H.R. 2194, the Iran Refined Petroleum Sanctions Act of 2009, to
amend and extend the Iran-Libya Sanctions Act of 1996 (ISA) to
December 31, 2016. The bill was referred to the House
Committees on Foreign Affairs, Financial Services, Oversight
and Government Reform, and Ways and Means. On November 19,
2009, the Committee on Foreign Affairs referred the bill, as
amended, for floor consideration. On the same date, the
Committee on Ways and Means was granted an extension for
further consideration. On December 4, 2009, the Committee on
Ways and Means discharged the bill. On December 11, 2009,
Chairman Rangel and Chairman of the House Committee on Foreign
Affairs Berman exchanged letters, acknowledging the
jurisdiction of the Ways and Means Committee and the
Committee's agreement to forgo consideration of the bill
because amendments were made to the bill to address the
Committee's concerns. The House passed H.R. 2194, as amended,
by a recorded vote 412-12, 4 present, and referred the bill to
the Senate on December 15, 2009. On March 11, 2010, the Senate
passed an amendment to the House bill, by unanimous consent,
and requested a conference. On April 22, 2010, the House agreed
to a conference. The conference was held on April 28, 2010, and
the conferees agreed to a conference report, filed on June 23,
2010. On June 24, 2010, the Senate passed the report by a
recorded vote of 99-0, and the House passed the report by a
recorded vote of 408-8, 1 present. On July 1, 2010, H.R. 2194,
the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010, as enacted, was signed by the President
and became Public Law No. 111-195.
3. TRADE ADJUSTMENT ASSISTANCE
a. Legislation
The Trade and Globalization Adjustment Assistance Act of
2009 was enacted as part of H.R. 1, the American Recovery and
Reinvestment Act of 2009, and made significant improvements to
the Trade Adjustment Assistance (TAA) programs.
With regard to the TAA for Workers program, the legislation
made service sector workers eligible for the program, expanded
access for manufacturing and secondary workers, significantly
increased training funding and created more flexible training
options, including by promoting pre-layoff, part-time and
longer-term training. Critically, it also increased the TAA for
Workers Health Coverage Tax Credit to 80 percent and made
several important changes to the existing credit. These changes
are designed to minimize gaps in coverage and assure access to
insurance policies that meet the health and medical needs of
eligible individuals and their families. Additionally, the
Trade and Globalization Adjustment Assistance Act of 2009
improved the Reemployment Trade Adjustment Assistance wage
insurance program and renamed it the Reemployment Trade
Adjustment Assistance Program. Furthermore, the Trade and
Globalization Adjustment Assistance Act of 2009 made important
reforms to the TAA for Firms program and tripled its
authorization, improved the TAA for Farmers program and created
the TAA for Communities program.
The House passed H.R. 1, as amended, by a recorded vote
244-188 and referred the bill to the Senate on January 28,
2009. On February 10, 2009, the Senate passed the bill, with an
amendment, by a recorded vote of 61-37, and requested a
conference. On February 10, 2009, the House agreed to a
conference. The conference was held on February 11, 2009, and
the conferees agreed to file the conference report on February
12, 2009. On February 13, 2009, the Senate passed the report by
a recorded vote of 60-38, and the House passed the report by a
recorded vote 246-183, 1 present. On February 17, 2009, H.R. 1
was signed by the President and became Public Law No. 111-5.
The Reconciliation Act of 2010
On March 17, 2010, Congressman John Spratt (D-SC)
introduced H.R. 4872, the Reconciliation Act of 2010. The
House-passed version of the legislation authorized and
appropriated $2 billion over four years (FY2011-FY2014) for the
TAA for Communities--Community College and Career Training
Grant Program. (In an exchange of letters on March 16, 2010,
Chairman Levin and Chairman of the House Committee on Education
and Labor Miller confirmed the exclusive jurisdiction of the
Ways and Means Committee over the TAA for Communities--
Community College and Career Training Grant Program, as amended
through reconciliation.) On March 21, 2010, the House passed
H.R. 4872, as amended, by a recorded vote, 220-211. On March
25, 2010, the Senate agreed to a Senate amendment to the House
amendment by a recorded vote of 56-43. On March 25, 2010, the
House agreed to the Senate amendment to the House amendment by
a recorded vote of 220-207. On March 30, 2010, H.R. 4872 was
signed by the President and became Public Law No. 111-152.
The Omnibus Trade Act of 2010
On December 13, 2010, Chairman Levin introduced H.R. 6517,
the Omnibus Trade Act of 2010. On December 15, 2010, H.R. 6517,
as amended, passed in the House by voice vote. The House-passed
version of the legislation included provisions extending the
TAA reforms included in The Trade and Globalization Adjustment
Assistance Act of 2009 until June 30, 2012, and delaying the
Department of Labor's merit staffing rule for the duration of
the extension. Additionally, H.R. 6517, as amended, expanded
the TAA for Communities--Community College and Career Training
Grant Program by authorizing program grants to be used by
community colleges to develop training programs for the
unemployment insurance population; authorized the Department of
Labor to spend up to 5 percent of program funds to administer,
evaluate and establish reporting systems for the program; and
provided the Department with time and thus, flexibility, to
obligate grant funds. On December 22, 2010, the Senate agreed
to an amendment to H.R. 6517 by unanimous consent. The
amendment included a 6 week extension of the trade adjustment
assistance programs as reformed in 2009. The amendment also
delayed the merits staffing rule for the duration of the
extension. The House agreed to the Senate amendment, and the
bill is expected to become law.
4. MISCELLANEOUS TARIFF BILL
On November 1, 2007, Chairman Levin and Ranking Member
Herger of the Ways and Means Trade Subcommittee issued an
advisory requesting that Members who planned to introduce
tariff and duty suspension legislation do so by December 14,
2007. The Committee received roughly 800 requests from Members
of Congress. The Committee also received roughly 750
Congressional Bill Reports on the tariff and duty suspension
legislation from the U.S. International Trade Commission, as
well as comments from the Department of Commerce, Customs and
Border Protection and the United States Trade Representative by
September 2008. To further increase transparency in the MTB
process, the Ways and Means Committee for the first time
published on its website all publicly-available information on
each bill in an easily searchable format so that it can be
accessed in one place. This information includes: (1)
Administration comments; (2) the International Trade Commission
and Congressional Budget Office reports; and (3) each public
comment received. It also includes a copy of each Member
Disclosure filed for each bill indicating whether the requested
duty suspension benefits 10 or fewer entities, and certifying
that the Member and Member spouse have no financial interest in
the benefit. No further action was taken on this legislation in
the 110th Congress.
During the 111th Congress, action was taken to consider the
over 800 provisions the Subcommittee received during the 110th
Congress.
a. Legislation
The Miscellaneous Trade and Technical Corrections Bill of
2009
On December 16, 2009, Chairman Levin (D-MI) and Ranking
Member Brady (R-TX) of the Ways and Means Trade Subcommittee
introduced H.R. 4380, the Miscellaneous Trade and Technical
Corrections Bill of 2009. The bill included roughly 600 tariff
and duty suspension bills. Many of these provisions would later
be enacted in subsequent legislation mentioned below.
The U.S. Manufacturing Enhancement Act of 2010
On July 21, 2010, Chairman Levin (D-MI) offered a Manager's
Amendment to H.R. 4380, entitled the U.S. Manufacturing
Enhancement Act of 2010. The Manager's Amendment to H.R. 4380
included: (1) Vetted House-introduced extensions of existing
duty suspensions/reductions; (2) vetted Senate-introduced
extensions of existing duty suspensions/reductions; and (3)
vetted new duty suspensions/reductions introduced in both the
House and Senate. On July 21, 2010, the Manager's Amendment to
H.R. 4380 passed the House under suspension of the rules by a
vote of 378-43. On July 27, 2010, the Senate received and
passed the bill, without amendments, by unanimous consent. On
August 11, 2010, the bill became Public Law No. 111-227.
Omnibus Trade Act of 2010
On December 13, 2010, Chairman Levin (D-MI) introduced H.R.
6517, the Omnibus Trade Act of 2010, which included, among
other things, some provisions of the Miscellaneous Trade and
Technical Corrections Bill of 2009 (H.R. 4380). The bill
included: (1) Vetted new duty suspensions/reductions introduced
in both the House and Senate; and (2) vetted Senate-introduced
extensions of existing duty suspensions/reductions. On December
15, 2010, the House passed H.R. 6517, as amended, by voice
vote. On December 22, the Senate passed by unanimous consent an
amendment to H.R. 6517, which did not include the miscellaneous
tariff bill provisions.
5. CUSTOMS AND BORDER PROTECTION
a. Hearings
On May 20, 2010, the Committee held a hearing on Customs
Trade Facilitation and Enforcement in a Secure Environment. The
hearing explored efforts by CBP and ICE to facilitate
legitimate trade and enforce U.S. trade and other laws in a
safe and secure environment. The Subcommittee focused on: (1)
What is needed for the successful and more timely
implementation of the Automated Commercial Environment (ACE)
and the International Trade Data. System (ITDS); (2) whether,
and if so how, advanced data security initiatives such as
``10+2'' and security programs like the Customs-Trade
Partnership Against Terrorism (C-TPAT) can provide security and
better facilitate legitimate trade; (3) whether the concept of
``management by account'' provides a possible 14 new model for
managing the importing process and facilitating legitimate
trade; (4) a review of CBP's structure, policies and
operations, and whether they are adequately supporting its
trade facilitation and commercial enforcement functions; and
(5) CBP and ICE challenges in revenue collection and customs
enforcement. The Subcommittee heard testimony from Alan Bersin,
the Commissioner of the U.S. Customs and Border Protection,
Timothy Skud, the Deputy Assistant Secretary for Tax, Trade and
Tariff Policy of the U.S. Department of the Treasury, and
Alonzo Pena, the Deputy Secretary for Operations, U.S.
Immigration and Customs Enforcement at the U.S. Department of
Homeland Security, as well as representatives from the business
community and former government officials.
b. Reports
In September 2010, the Committee received a report from the
GAO entitled, ``CBP Has Made Progress in Assisting the Trade
Industry in Implementing the New Importer Security Filing
Requirements, but Some Challenges Remain.'' Publication GAO-10-
841. Washington, D.C.: September 2010.
6. OTHER TRADE ISSUES
a. Legislation
Modification to the Wool Apparel Manufacturers Trust Fund
On November 6, 2009, Congresswoman Louise Slaughter (D-NY)
introduced H.R. 4057, a bill to modify the Wool Apparel
Manufacturers Trust Fund. The bill was referred to the House
Ways and Means Committee. On May 28, 2010, H.R. 4057 was
included as a House amendment to a Senate amendment to H.R.
4213, the American Jobs and Closing Tax Loopholes Act. On May
28, 2010, the House passed the Senate amendment, by a recorded
vote, 215-204. On July 21, 2010, the Senate voted on the House
amendment to the Senate amendment and passed an amendment
striking the provision containing H.R. 4057 from the bill. As
such, H.R. 4057 was not enacted into law. On December 13, 2010,
H.R. 4057, with certain modifications, was included in H.R.
6517, the Omnibus Trade Act, as amended. On December 15, 2010,
the House passed H.R. 6517, as amended, by voice vote. On
December 22, the Senate passed by unanimous consent an
amendment to H.R. 6517, which did not include the wool
provisions.
To amend the Tariff Act of 1930 to include Ultralight
Aircraft
On May 13, 2010, Congressman Gabrielle Giffords (D-AZ) and
Congressman Dean Heller (R-NV) introduced H.R. 5307, to amend
the Tariff Act of 1930 to include ultralight aircraft under the
definition of aircraft for 15 purposes of the aviation
smuggling provisions under that act. The bill was referred to
the House Committee on Ways and Means, Subcommittee on Trade.
H.R. 5307 passed the House on September 23, 2010, under
suspension of the rules by a recorded vote of 412-3. The bill
was received in the Senate on September 24, 2010, and referred
to the Senate Committee on Finance. No further action was taken
on this legislation in the 111th Congress.
The Radioactive Import Deterrence Act
On January 14, 2009, Congressman Bart Gordon (D-TN)
introduced H.R. 515, the Radioactive Import Deterrence Act. On
December 1, 2009, Chairman Rangel and Chairman of the House
Committee on Energy and Commerce Waxman exchanged letters,
acknowledging the jurisdiction of the Ways and Means Committee
and its agreement to forgo consideration of the bill because of
modifications made to address the concerns of the Committee.
The House passed H.R. 515, as amended, under suspension of the
rules by a recorded vote of 309-112 and referred the bill to
the Senate on December 2, 2009. On December 3, 2010, the bill
was received in the Senate. No further action was taken on this
legislation in the 111th Congress.
Family Smoking Prevention and Tobacco Control Act
On March 3, 2009, Congressman Henry Waxman (D-CA)
introduced H.R. 1256, the Family Smoking Prevention and Tobacco
Control Act. On March 16, 2009, Chairman Rangel and Chairman of
the House Committee on Energy and Commerce Waxman exchanged
letters, acknowledging the jurisdiction of the Ways and Means
Committee and its agreement to forgo consideration of the bill.
The House passed H.R. 1256, as amended, by a recorded vote of
298-112 and referred the bill to the Senate on April 2, 2009.
The Senate passed H.R. 1256 with an amendment by a recorded
vote of 79-17. On June 12, 2009, the House adopted the Senate's
amendment to the bill by a recorded vote of 307-97. On July 22,
2009, H.R. 1256, as amended, was signed by the President and
became Public Law No. 111-31.
Federal Advisory Committee Act Amendments of 2010
On March 5, 2009, Congressman Clay (D-MO) introduced H.R.
1320, the Federal Advisory Committee Act Amendments of 2010, to
increase the transparency and accountability of Federal
advisory committees. On July 21, 2010, Chairman Levin and
Chairman of the House Committee on Oversight and Government
Reform Towns exchanged letters, acknowledging the jurisdiction
of the Ways and Means Committee and its agreement to forgo
consideration of the bill because of modifications made to
address the Committee's concerns. The House passed H.R. 1320
under a suspension of the rules, as amended, by a recorded vote
of 250-124 and referred the bill to the Senate on July 27,
2010. No further action was taken on this legislation in the
111th Congress.
Insurance Information Act of 2009
On May 21, 2009, Congressman Kanjorski (D-PA) introduced
H.R. 2609 to improve the development and coordination of
Federal policy on international insurance matters. The
provisions of the bill could have affected, inter alia, how
U.S. obligations under international trade agreements are
implemented and the role of the Office of the U.S. Trade
Representative in negotiating such agreements. On October 26,
2009, Chairman Rangel exchanged letters with Chairman of the
House Financial Services Committee Frank acknowledging the
jurisdiction of the Ways and Means Committee and requesting
that the Committee postpone its markup to provide time to
resolve some important issues raised by H.R. 2609. On December
2, 2009, Chairman Rangel exchanged letters with Chairman of the
House Financial Services Committee Frank recognizing the
amendments made by the Committee to address the concerns raised
and agreed to forgo consideration of the bill. On December 2,
2009, the Subcommittee on Capital Markets, Insurance and
Government-sponsored Enterprises amended H.R. 2609 and referred
the bill to the Full Financial Services Committee by voice
vote. On December 2, 2009, Congressman Barney Frank (D-CA)
introduced H.R. 4713, the Wall Street Reform and Consumer
Protection Act of 2009. Provisions of H.R. 2609, as amended,
were included in H.R. 4713. On December 11, 2009, the House
passed H.R. 4713 by a recorded vote of 223-202. On May 20,
2010, the Senate amended and passed H.R. 4713 by a recorded
vote of 59-39, and requested a conference. On June 29, 2010,
after conferees met for seven days, the conference report was
agreed to and filed with the House. On June 30, 2010 and July
15, 2010, the House and Senate, respectively, agreed to the
report. On July 21, 2010, H.R. 4713 was signed by the President
and became Public Law No. 111-203.
Food Safety Enhancement Act of 2009
On June 8, 2009, Congressman Dingell (D-MI) introduced H.R.
2749, the Food Safety Enhancement Act of 2009, to improve and
ensure security and safety of food offered for consumption and
consumed in the United States. On July 27, 2009, Chairman
Rangel and Chairman of the House Committee on Energy and
Commerce Waxman exchanged letters, acknowledging the
jurisdiction of the Ways and Means Committee and its agreement
to forgo consideration of the bill because of modifications
made to address the Committee's concerns. The House passed H.R.
2749 by a recorded vote of 283-142, and referred the bill to
the Senate on July 30, 2009. No further action was taken on
this bill in the 111th Congress.
b. Enforcement of Intellectual Property Rights
i. Anti-Counterfeiting Trade Agreement (ACTA)
On October 23, 2007, U.S. Trade Representative Susan C.
Schwab announced the United States' intent to negotiate an
Anti-Counterfeiting Trade Agreement (ACTA). The Agreement,
negotiated by Australia, Canada, the European Union, Japan,
Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland,
and the United States, recognizes the critical importance of
strong intellectual property rights enforcement for a
prosperous economy. The ACTA participants announced the
finalization of the Agreement text on November 15, 2010.
Following the legal verification of the text, each ACTA country
must then fulfill its relevant domestic requirements for
approval. ACTA will enter into force after six ACTA
participants formally deposit their instruments of
ratification, acceptance, or approval. In the United States,
the Administration intends to implement the agreement as an
executive agreement not requiring Congressional action or
approval.
ii. Reports
On April 30, 2010, the Committee received the 2010
``Special 301'' Report from the U.S. Trade Representative on
the adequacy and effectiveness of intellectual property rights
protection by U.S. trading partners. Eleven countries were
included on the ``priority watch list'' of partners who fail to
provide an adequate level of IPR enforcement or protection: The
People's Republic of China, Russia, Algeria, Argentina, Canada,
Chile, India, Indonesia, Pakistan, Thailand, and Venezuela.
On February 19, 2009, the Committee received the 2009
``Special 301'' Report from the U.S. Trade Representative on
the adequacy and effectiveness of intellectual property rights
protection by U.S. trading partners. Twelve countries were
included on the ``priority watch list'': Algeria, Argentina,
Canada, Chile, India, Indonesia, Israel, Pakistan, The People's
Republic of China, Russian Federation, Thailand, and Venezuela.
c. Other Select Reports Received by the Committee
In March 2010, the Committee received the 2010 Trade Policy
Agenda and the 2009 Annual Report of the President of the
United States on the Trade Agreements Program. Section 163 of
the Trade Act of 1974, as amended, and sections 122 and 124 of
the Uruguay Round Agreements Act require USTR to submit this
report to Congress annually.
In March 2010, the Committee received the 2010 National
Trade Estimate Report. This annual report from USTR to Congress
is mandated by section 181 of the Trade Act of 1974, as amended
by section 303 of the Trade and Tariff Act of 1984, section
1304 of the Omnibus Trade and Competitiveness Act of 1988,
section 311 of the Uruguay Round Trade Agreements Act, and
section 1202 of the Internet Tax Freedom Act.
In December 2009, the Committee received a report from the
GAO entitled SOFTWOOD LUMBER ACT OF 2008, Customs and Border
Protection Established Required Procedures, but Agencies Report
Little Benefit from New Requirements. Publication GAO-10-220.
Washington, D.C. December 18, 2009.
In March 2009, the Committee received the 2009 National
Trade Estimate Report. This annual report from USTR to Congress
is mandated by section 181 of the Trade Act of 1974, as amended
by section 303 of the Trade and Tariff Act of 1984, section
1304 of the Omnibus Trade and Competitiveness Act of 1988,
section 311 of the Uruguay Round Trade Agreements Act, and
section 1202 of the Internet Tax Freedom Act.
In February 2009, the Committee received the 2009 Subsidies
Enforcement Joint Report of the U.S. Trade Representative and
the U.S. Department of Commerce. Section 281(f)(4) of the
Uruguay Round Agreements Act requires these agencies to submit
this report annually to the Congress. The report describes the
Administration's monitoring and enforcement activities
throughout the previous year.
In March 2009, the Committee received the 2009 Trade Policy
Agenda and the 2008 Annual Report of the President of the
United States on the Trade Agreements Program. Section 163 of
the Trade Act of 1974, as amended, and sections 122 and 124 of
the Uruguay Round Agreements Act require USTR to submit this
report to Congress annually.
C. Legislative Review of Health Issues
A. Children's Health Insurance Program Reauthorization Act of 2009
(P.L. 111-3)
B. American Recovery and Reinvestment Act of 2009 (P.L. 111-5)
C. To amend title XVIII of the Social Security Act to delay the date on
which the accreditation requirement under the Medicare Program applies
to suppliers of durable medical equipment that are pharmacies (P.L.
111-72)
D. Department of Defense Appropriations Act, 2010 (P.L. 111-118)
E. Temporary Extension Act of 2010 (P.L. 111-144)
F. Patient Protection and Affordable Care Act (P.L. 111-148)
G. Health Care Education and Reconciliation Act of 2010 (P.L. 111-152)
H. Continuing Extension Act of 2010 (P.L. 111-157)
I. TRICARE Affirmation Act (P.L. 111-159)
J. To clarify the health care provided by the Secretary of Veterans
Affairs constitutes Minimum Essential Coverage (P.L. 111-173)
K. Preservation of Access to Care for Medicare Beneficiaries and
Pension Reform Act of 2010 (P.L. 111-192) (H.R. 3962)
L. Physician Payment and Therapy Relief Act of 2010
(P.L. 111-286)
M. Medicare and Medicaid Extenders Act of 2010 (P.L. 111-309)
N. Omnibus Trade Act of 2010
1. BILLS ENACTED INTO LAW DURING THE 111TH CONGRESS
A. Children's Health Insurance Program Reauthorization Act of 2009
(P.L. 111-3)
On February 4, 2009 the ``Children's Health Insurance
Program Reauthorization Act of 2009'' (P.L. 111-3) was signed
into law. The bill reauthorized the Children's Health Insurance
Program for five years through the end of Fiscal Year 2013. In
addition to reauthorization, the bill made several other
technical changes and updates to the CHIP program. The bill was
primarily paid for with an increase in the Federal excise tax
on cigarettes from 39 cents per pack to $1.01 per pack. These
tax provisions are described in the tax section of this report.
B. American Recovery and Reinvestment Act of 2009 (P.L. 111-5)
On February 17, 2009 the ``American Recovery and
Reinvestment Act of 2009'' (P.L. 111-5) (ARRA) was signed into
law. Among the health-related provisions of ARRA was the
enactment of the Health Information Technology for Economic and
Clinical Health or (HITECH) Act. The HITECH Act established a
program of Medicare and Medicaid Incentives to promote the
adoption and meaningful use of Health Information Technology.
Notably, the HITECH Act: (1) codified the Office of the
National Coordinator of Health Information Technology (ONCHIT)
within the Department of Health and Human Services (HHS); (2)
created the HIT Policy and Standards Committees; (3) created a
process for HHS to adopt the recommendations of the Standards
and Policy Committees relating to standards and certification
criteria for Health Information Technology; (4) authorized HHS
to develop and update a qualified electronic health records
system and make that system available to providers unless the
Secretary determines that the needs and demands of providers
are being met by the marketplace; (5) established a process for
the Standards Committee to work with the National Institute for
Standards and Technology (NIST) to test and certify technology;
(6) created grant, loan and demonstration programs to promote
early adoption of and build a national infrastructure for, HIT;
(7) updated and strengthened privacy laws to ensure secure
exchange of information; and (8) set forth a process by which
eligible health care professionals and hospitals could
demonstrate meaningful use of health information technology and
receive financial incentives or penalties through the Medicare
and Medicaid programs.
In addition to HITECH, ARRA also created a temporary
program of premium assistance for COBRA continuation coverage
for eligible individuals and their families. The COBRA program
provided individuals and families with a 65 percent subsidy
towards the cost of monthly premiums for COBRA continuation
coverage for a period of up to nine months. ARRA also made
improvements and modifications to the Health Coverage Tax
Credit (HCTC), to assist displaced workers described in the
Trade Adjustment Assistance (TAA) program and certain Pension
Benefit Guarantee Corporation (PBGC) recipients with obtaining
health insurance. Notably, ARRA amended the Internal Revenue
Code (IRC) to revise the tax credit for the health insurance
costs of TAA workers and PBGC recipients for eligible coverage
months beginning before January 1, 2011, to: (1) increase the
credit from 65% to 80% of health insurance costs, including
advance payments; and (2) require one or more retroactive
payments of such 80% credit for eligible coverage months
beginning prior to commencement of advance payments of the
credit.
ARRA also provided $1.1 billion for Comparative
Effectiveness Research to: (1) conduct, support, or synthesize
research that compares the clinical outcomes, effectiveness,
and appropriateness of items, services, and procedures that are
used to prevent, diagnose, or treat diseases, disorders, and
other health conditions; and (2) encourage the development and
use of clinical registries, clinical data networks, and other
forms of electronic health data that can be used to generate or
obtain outcomes data. It also established a Federal
Coordinating Council for Comparative Effectiveness Research to:
(1) assist federal offices and agencies in coordinating the
conduct or support of comparative effectiveness and related
health services research; and (2) advise the President and
Congress on strategies regarding the infrastructure needs of
comparative effectiveness research within the federal
government, and related matters.
Finally, ARRA delayed the phase-out of the Medicare Hospice
budget neutrality factor during fiscal year 2009 and made
certain technical corrections to the Medicare long-term care
hospital payment system.
C. To amend title XVIII of the Social Security Act to delay the date on
which the accreditation requirement under the Medicare Program
applies to suppliers of durable medical equipment that are
pharmacies (P.L. 111-72)
On October 13, 2009, a bill to amend title XVIII of the
Social Security Act to delay the date on which the
accreditation requirement under the Medicare Program applies to
suppliers of durable medical equipment that are pharmacies
(P.L. 111-72) was signed into law. The bill delayed from
October 1, 2009, to January 1, 2010, the date on which
suppliers of durable medical equipment who are pharmacies would
be required to be accredited by an accrediting organization in
order to furnish durable medical equipment and related services
to Medicare beneficiaries.
D. Department of Defense Appropriations Act, 2010 (P.L. 111-118)
On December 19, 2009 the Department of Defense
Appropriations Act, 2010 (P.L. 111-118) was signed into law.
The law contained several health-related provisions under the
jurisdiction of the Committee on Ways and Means. Specifically,
the law amended the American Recovery and Reinvestment Act of
2009 to: (1) extend the job eligibility lost date to February
28, 2010, for temporary health insurance premium assistance
under the Consolidated Omnibus Budget Reconciliation Act
(COBRA); and (2) extend from 9 to 15 months the temporary COBRA
health insurance subsidy for individuals who have lost jobs. In
addition, the law amended title XVIII (Medicare) of the Social
Security Act to: (1) provide a zero percent update to the
sustainable growth rate conversion factor for physician
payments for the period of January 1, 2010, through February
28, 2010; (2) state that such update shall have no effect on
the computation of such conversion factor for the remainder of
2010 and subsequent years; (3) reduce for FY2014 amounts made
available in the Medicare Improvement Fund (MIF); and (4)
provide an FY2015 MIF amount.
E. Temporary Extension Act of 2010 (P.L. 111-144)
On March 2, 2010 the ``Temporary Extension Act of 2010''
was signed into law. The bill made certain technical
modifications and enhancements to and extended the eligibility
period for the temporary COBRA premium subsidy program
originally enacted in ARRA from February 28, 2010 to March 31,
2010. The bill also averted for one month a 21 percent
reduction in Medicare physician payments. Finally, the bill
extended the Medicare Therapy Caps Exceptions Process from
December 31, 2009, to March 31, 2010.
F. Patient Protection and Affordable Care Act (P.L. 111-148)
On March 23, 2010, the ``Patient Protection and Affordable
Care Act of 2009'' was signed into law. The bill was divided
thematically into ten titles. Several of its provisions were
later amended by the ``Health Care Education and Reconciliation
Act of 2010'', which was signed into law on March 30, 2010.
Title I of the bill dealt primarily with the private health
insurance market. Subtitle A of Title I made a series of
changes to the laws governing individual and group health
insurance plans (with the exception of certain grandfathered
plans) for plan years beginning after September 23, 2010, and
included other provisions with early effective dates. The
provisions governing individual and group plans included: (1)
prohibiting lifetime and annual limits on coverage, although
restricted annual limits are allowed in plan years beginning
prior to January 1, 2014; (2) prohibiting rescissions of
coverage except in cases of fraud; (3) requiring plans, at a
minimum, to cover recommended preventive health services,
screenings and immunizations and not charge cost-sharing for
such services; (4) requiring plans to allow for the enrollment
of dependents up to age 26; (5) requiring the Secretary of
Health and Human Services (HHS) to develop standards for health
plans (including grandfathered health plans) to provide an
accurate summary of benefits and coverage explanation and
directing each such health plan, prior to any enrollment
restriction, to provide a summary of benefits and coverage
explanation to the applicant at the time of application, an
enrollee prior to the time of enrollment or re-enrollment, and
a policy or certificate holder at the time of issuance of the
policy or delivery of the certificate; (6) requiring group
health plans to comply with requirements relating to the
prohibition against discrimination in favor of highly
compensated individuals contained in Section 105(h)(2) of the
Internal Revenue Code; (7) requiring the Secretary of HHS to
develop reporting requirements for health plans on benefits or
reimbursement structures that improve health outcomes, reduce
hospital readmissions, improve patient safety, reduce medical
errors, and promote wellness and health; (8) requiring a health
plan (including a grandfathered health plan) to submit to the
Secretary a report concerning the ratio of the incurred loss
(or incurred claims) plus the loss adjustment expense (or
change in contract reserves) to earned premiums and provide an
annual rebate to each enrollee if the ratio of the amount of
premium revenue expended by the issuer on reimbursement for
clinical services provided to enrollees and activities that
improve health care quality to the total amount of premium
revenue for the plan year is less than an 85% for large group
markets or 80% for small group or individual markets; (9)
requiring hospitals to establish and make public a list of its
standard charges for items and services; and, (10) requiring
health plans to implement an effective process for appeals of
coverage determinations and claims.
The law also requires the Secretary to award grants to
states for offices of health insurance consumer assistance or
health insurance ombudsman programs and directs the Secretary
to establish a process for the annual review of unreasonable
increases in premiums for health insurance coverage.
Subtitle B of Title I contained provisions which made
certain other investments to preserve and expand health
coverage. Notably, the law created a temporary high-risk pool
to extend coverage to individuals who have not been insured for
six months and who have a pre-existing condition. The law also
created a re-insurance program to assist some employers in
maintaining retiree health coverage. Both programs are
scheduled to end on January 1, 2014. Finally, the law
instituted a series of administrative simplification measures
for health care transactions and directed the Secretary to
establish a mechanism, including an Internet website, through
which a resident of, or small business in, any state may
identify and compare affordable health insurance coverage
options in that state.
Subtitle C of Title I made changes to the laws governing
group health plans and health insurance issuers offering
individual health insurance coverage beginning on January 1,
2014. These changes included: a prohibition on the ability of a
group health plan or health insurance issuer to impose pre-
existing condition exclusions; a guarantee that health
insurance issuers accept all individuals or employers that
apply for coverage; a guarantee that health insurance issuers
renew health insurance coverage (at the option of the plan
sponsor or individual); a limitation on the ability of health
insurance issuers to vary rates such that variation can only
occur on the basis of family size, rating area, age (a maximum
of 3 to 1 for adults), and tobacco use (a maximum of 1.5 to 1);
a prohibition on group health plans and health insurance
issuers establishing rules for eligibility on the basis of
health status; a requirement that group health plans and health
insurance issuers not discriminate with respect to
participation against providers acting within the scope of
their State license or certification; and a prohibition against
waiting periods that exceed 90 days. Subtitle B also includes
requirements (not applicable to dental-only plans) that: (1)
health insurance issuers offering coverage in the individual
and small group markets provide coverage that includes the
essential health benefits package under section 1302(c) of the
Patient Protection and Affordable Care Act; (2) that any annual
cost-sharing imposed by group health plans not exceed the
limitations set forth in paragraphs 1 and 2 of section 1302(c);
and, (3) health insurance issuers who offer coverage at any
level of coverage specified under section 1302(d) (platinum,
gold, silver and bronze) also offer at that level in a plan
where the only enrollees are under the age of 21.
Further, the law allows individuals to maintain existing
coverage. Specifically, the law states that: (1) nothing in
PPACA should be construed as requiring individuals to terminate
coverage in a plan in which they were enrolled as of March 23,
2010; (2) that the changes to health insurance laws for group
health plans described above will not apply to group health
plans or health insurance coverage in which an individual was
enrolled as of March 23, 2010 (regardless of whether such
coverage was renewed after March 23, 2010); (3) if permissible
under the terms of the plan in effect as of March 23, 2010
family members of individuals enrolled in existing plans be
permitted to enroll in such plans; (4) that group health plans
be permitted to enroll new employees in existing plans; (5)
that the changes to health insurance laws described above not
apply to health insurance coverage maintained pursuant to a
collective bargaining agreement until the date on which the
last of the collective bargaining agreements relating to the
coverage terminates (provided that the agreements were ratified
before March 23, 2010); and, (6) coverage amendments to
collective bargaining agreements made to comply with the new
requirements on plans described above not be treated as a
termination of such collective bargaining agreements. The law
also provides that any standards or requirements adopted by a
State pursuant to Title I of the Affordable Care Act (or
amendments to Title I) be applied uniformly to all plans in
each insurance market to which such requirements apply.
Subtitle D of Title I was divided into five parts. The
first part contained provisions which established the features
of ``qualified health plans'' that will be offered in state
exchanges. Notably, the subtitle set forth requirements related
to essential health benefits that all plans must include,
processes for changing essential health benefits, requirements
related to cost-sharing, definitions relating to what
constitutes certain levels of coverage in exchange plans
(Platinum, Gold, Silver and Bronze) as well as catastrophic
plans and child-only plans. The subtitle also set forth special
rules relating to coverage of abortion services and defined
terms such as ``group market,'' ``individual market,'' ``large
and small group markets,'' ``large employer,'' and ``small
employer''.
The second part of Subtitle D set forth rules relating to
the establishment, operation and governance of American Health
Benefit Exchanges or ``Exchanges'' for individuals and families
and Small Business Health Options Program or ``SHOP Exchanges''
for qualified small employers to purchase qualified health
plans. The subtitle also set forth criteria for the functions
of exchanges, the responsibilities of the Secretary of Health
and Human Services (HHS) in implementing exchanges, the roles
and responsibilities of States, the rules relating to
enrollment periods and the certification of qualified health
plans as well as the means by which exchanges could operate in
multiple states or establish subsidiary exchanges within a
particular state and incentives for quality improvement and the
applicability of mental health parity laws to qualified health
plans. In addition, part two laid out rules regarding the
voluntary nature of exchanges, requirements of health insurance
issuers to place all enrollees in a single risk pool and rules
regarding the financial integrity of exchanges.
The third part of Subtitle D provided further detail
regarding state flexibility in the operation and enforcement of
exchanges and related requirements. Notably, this subtitle
directs the Secretary to set forth standards for the
establishment of exchanges and requires States to elect to
operate their own exchanges, with Secretarial approval, or to
have the Federal government do so in their stead. It also
directs the Secretary to establish a Consumer Operated and
Oriented Plan (CO-OP) program to foster the creation of
qualified non-profit health issuers to offer qualified health
plans in the individual and small group markets. In addition
the subtitle directs the Secretary to develop and offer a
Community Health Insurance Option as an additional option for
coverage through state exchanges and prescribes the terms under
which such an option can operate. The Community Health
Insurance Option would be voluntary for individuals and
providers and States may elect to prohibit the Community Health
Insurance Option from operating in their exchange.
Finally, this subtitle established a level playing field
among different types of public and private health insurance.
Part four of Subtitle D provided State flexibility to
establish alternative coverage programs. In particular, part
four outlined the requirements for states to establish basic
health programs (consisting of at least the essential health
benefits package) for low-income individuals who are not
eligible for Medicaid. It also set forth a process by which
States could apply for a waiver (from the Secretary of HHS) for
State innovation for states to manage health coverage programs
such as Exchanges and receive pass-through funding from the
Federal Government. In order to be granted a waiver, States
would need to meet certain conditions set forth by the
Secretary, and each State would need to pass a law allowing
that state to implement the waiver. It also contained a
provision detailing the creation of health care choice
compacts--agreements between two or more states under which one
or more qualified health plans could be offered in the
individual markets in all states involved, but only be subject
to the laws and regulations of the State in which the plan was
written or issued. Finally, it outlined rules for the treatment
of multi-state plans.
Part five of Subtitle D contained provisions relating to
reinsurance, risk corridors, and risk adjustment for plans in
the individual and small group markets. Specifically, each
state is required to establish a reinsurance program under
which health insurance issuers and third-party administrators
on behalf of group health plans are required to make payments
to a reinsurance entity which will then make payments to health
insurance issuers that cover high-risk individuals in the
individual market for any plan year in the three-year period
beginning on January 1, 2014. Additionally, the Secretary is
required to administer a program of risk corridors for calendar
years 2014-2016 under which qualified health plans offered in
the individual and small group market shall participate in a
payment adjustment system based on the ratio of the allowable
costs of the plan to the plan's aggregate premiums. Under the
program, if a plan's costs are more than 103 but less than 108
percent of the target amount, the Secretary will pay the plan
50 percent of the amount above 103 percent and if the plan's
costs are more than 108 percent the Secretary will pay the plan
2.5 percent of the target amount plus 80 percent of the costs
in excess of 108 percent of the target amount. However, if a
plan's costs are less than 97 but not less than 92 percent of
the target amount the plan shall pay the Secretary 50 percent
of the amount over 97 percent of the target amount and if the
plan's costs are less than 92 percent of the target amount, the
plan shall pay the Secretary 2.5 percent of the target amount
plus 80 percent of the amount above 92 percent of the target
amount. Finally, part five of Subtitle D set forth a system of
risk adjustment where States will assess a charge on low
actuarial risk plans and provide a payment to high actuarial
risk plans. The methods and criteria to be used in carrying out
risk adjustment activities will be established by the Secretary
in consultation with the States and may be similar to the
methods used for risk adjustment in Part C or D of Medicare.
Subtitle E of Title I contained provisions relating to
premium tax credits and cost-sharing reductions to be used in
the purchase of qualified health plans and was divided into two
parts. The first part contained provisions relating to
individual and family policies and the second related to small
business tax credits. For individuals and families, the law
provided for a premium assistance tax credit to aid in the
purchase of a qualified health plan through an Exchange. Tax
credits are available to taxpayers between 100 percent and 400
percent of the federal poverty level (FPL) with credit amounts
based upon household income as a percent of FPL. In addition,
the law provides for reductions in the maximum limits for out-
of-pocket expenses for individuals enrolled in qualified health
plans whose incomes are between 100 percent and 400 percent of
FPL.
The law required the Secretary to establish a program for
verifying the eligibility of applicants for participation in a
qualified health plan offered through an Exchange or for a tax
credit for premium assistance based upon their income, and
citizenship or immigration status. It required an Exchange to
submit information received from an applicant to the Secretary
for verification of applicant eligibility and provides for
confidentiality of applicant information, as well as an appeals
and redetermination process for denials of eligibility.
It also required the Secretary to establish a program for
advance payments of the tax credit for premium assistance and
for reductions of cost-sharing, as well as a system that
streamlines eligibility and enrollment for state residents who
apply to an Exchange in state health subsidy programs,
including Medicaid or the Children's Health Insurance Program
(CHIP, formerly known as SCHIP), if such residents are found to
be eligible for such programs after screening.
The second part of Subtitle E contained provisions relating
to tax credits for small businesses for the provision of health
coverage to their employees. Beginning in 2011, qualified small
employers are eligible for a tax credit for up to 35 percent of
their employee health care coverage expenses. The rate of the
credit is increased to up to 50 percent for tax years beginning
in 2014. The law defines ``qualified small employer'' as an
employer who has less than 25 full-time equivalent employees
with average annual wage levels less than $40,000. The credit
is available to qualified small employers each year from 2010
to 2013 and then only for a 2-year period of consecutive
taxable years in which an employer offers coverage to their
employees through an exchange and is phased out based on the
number of full-time equivalent employees and average wages.
Subtitle F of Title I contained provisions relating to
shared responsibility for health care and was divided into two
parts. The first part related to individual responsibility and
the second related to employer responsibility. Beginning in
2014, individuals are required to maintain minimal essential
health care coverage. Minimum coverage is defined to include a
series of government-sponsored programs such as Medicare,
Medicaid, CHIP, TRICARE, Veterans health care, as well as
certain employer sponsored insurance and individual market
coverage. The law imposes a tax penalty for failure to maintain
such coverage beginning in 2014, except for certain low-income
individuals who cannot afford coverage, members of Indian
tribes, and individuals who suffer hardship. It also exempts
from the coverage requirement individuals who object to health
care coverage on religious grounds, individuals not lawfully
present in the United States, and individuals who are
incarcerated. Finally, the law requires providers of minimum
essential coverage to file informational returns providing
identifying information of covered individuals and the dates of
coverage and requires the IRS to send a notice to taxpayers who
are not enrolled in minimum essential coverage about services
available through the Exchange operating in their state.
In addition to provisions relating to shared responsibility
for individuals, the subtitle contained provisions relating to
shared responsibility for employers. Employers with more than
200 full-time employees are required to automatically enroll
new employees in a health care plan and provide notice of the
opportunity to opt-out of such coverage. Employers must also
provide notice to employees about Exchanges, the availability
of tax credits for premium assistance, and the loss of an
employer's contribution to an employer-provided health benefit
plan if the employee purchases a plan through an Exchange.
Finally, employers with at least 50 full-time equivalent (FTE)
employees (referred to as ``applicable large employers'') who
fail to offer their FTE employees the opportunity to enroll in
minimum essential coverage (and have an employee who enrolls in
a qualified health plan and receives a tax credit) will be
assessed a tax penalty for each month that they do not offer
such coverage that is equal to \1/12\ of $750. In the case of
an applicable large employer that offers its FTE employees
coverage, there is a tax penalty for each month that an
employee declines the offered coverage and enrolls in a
qualified health plan and receives a tax credit. The monthly
penalty is equal to \1/12\ of $3,000 for each employee who
declines the employer-offered coverage and receives qualified
health plan coverage with a tax credit.
The subtitle also requires large employers to file a report
with the Secretary of the Treasury on health insurance coverage
provided to their full-time employees. The report is required
to contain: (1) a certification as to whether such employers
provide their full-time employees (and their dependents) the
opportunity to enroll in minimum essential coverage under an
eligible employer-sponsored plan; (2) the length of any waiting
period for such coverage; (3) the months during which such
coverage was available; (4) the monthly premium for the lowest
cost option in each of the enrollment categories under the
plan; (5) the employer's share of the total allowed costs of
benefits provided under the plan; and (6) identifying
information about the employer and full-time employees. It also
imposes a penalty on employers who fail to provide such report
and allows certain small employers to include as a benefit in a
tax-exempt cafeteria plan a qualified health plan offered
through an Exchange.
Subtitle G of Title I contained a series of miscellaneous
provisions. Specifically, provisions in Subtitle G stated that
unless otherwise specified the definitions contained in Section
2791 of the Public Health Service Act shall apply to Title I of
PPACA; required the Secretary to post online a list of
authorities provided to the Secretary under PPACA; prohibited
discrimination by Federal and State governments and recipients
of federal funds under PPACA against any individual or health
care entity that does not provide health care services for the
purpose of assisted suicide and prohibited the Secretary from
promulgating regulations that place certain restrictions on
access to medical therapies. Other provisions in this subtitle
provided that individuals, businesses, insurers and others are
not required to participate in any federal health care program
or federal health insurance program and that insurers cannot be
fined for not participating in such programs; prohibited
discrimination by any federal health program or activity on the
grounds of race, color, national origin, sex, age, or
disability; granted the Inspector General of HHS oversight
authority over the implementation and administration of Title I
of PPACA for activities related to HHS; amended the PHSA to
designate new health information technology enrollment
standards and protocols and made conforming and technical
amendments to existing laws, such as the PHSA, which were
amended by PPACA.
Title II of PPACA contained provisions relating to current
public programs, namely Medicaid and CHIP, which are not under
the jurisdiction of the Ways and Means Committee.
Title III of PPACA contained provisions designed to improve
the quality and efficiency of health care. Title III was
divided the thematically into multiple subtitles. Subtitle A
contained provisions designed to transform the health care
delivery system. Specifically, the Subtitle created a value-
based purchasing program for hospitals in Medicare; extended
(for four years) and made adjustments to the Medicare Physician
Quality Reporting System; made adjustments to the Physician
Feedback program in Medicare, made changes to the quality
reporting requirements for Long-Term Care Hospitals, Inpatient
Rehabilitation Facilities, Hospice programs, and PPS-exempt
Cancer Hospitals; directed the Secretary to develop a plan to
implement a value-based purchasing program for Skilled Nursing
Facilities and Home Health Agencies and implement a value-based
payment modifier in the physician fee schedule and directed the
Secretary to provide for payment adjustments for inpatient
hospitals that are found to be in the top quartile of hospitals
with respect to Hospital Acquired Conditions.
In addition, provisions in this subtitle provided for the
creation of a Center for Medicare and Medicaid Innovation
within the Centers for Medicare and Medicaid Services to test
innovative payment and service delivery models to reduce
program expenditures while preserving or enhancing the quality
of care furnished to individuals. The law appropriates $10
billion to the center for FY2011-FY2019 to test innovative
payment models. The Subtitle also contained provisions that:
established a Medicare shared savings program whereby groups of
providers and suppliers would work together in Accountable Care
Organizations to manage and coordinate care for Medicare fee-
for-service beneficiaries; created a national pilot program for
payment bundling; directed the Secretary to conduct a
demonstration program (known as the Independence at Home
Medicare Demonstration) to test a payment incentive and service
delivery model that utilizes physician and nurse practitioner
directed home-based primary care teams designed to reduce
expenditures and improve health outcomes; directed the
Secretary to create a program to reduce preventable hospital
readmissions and extended a gain sharing demonstration project
that was originally authorized in the Deficit Reduction Act of
2005 (P.L. 109-171).
Subtitle B of Title III contained provisions designed to
make improvements to the Medicare program. Specifically,
provisions in Subtitle B provided for a 0.5 percent update in
Medicare physician payments for 2010, extended until January 1,
2011 the floor for the work portion of the geographic practice
cost index and made adjustments to the practice expense portion
of the geographic adjustment cost index under the Medicare
physician fee schedule, extended until December 31, 2010, the
exceptions process for Medicare Therapy Caps, extended through
2010 the payment for the technical component of certain
physician pathology services, extended until January 1, 2011,
certain payment adjustments for ambulances in Medicare,
extended (for one year) certain payment rules for Long-Term
Care Hospitals and the moratorium on the establishment of
certain hospitals and facilities created as part of the
Medicare, Medicaid, and SCHIP Extension Act of 2007, and
extended until December 31, 2010, the mental health services
add-on in the Medicare physician fee schedule. In addition,
provisions in this subtitle: provided the authority for a
physician assistant who does not have an employment
relationship with a SNF, but who is working in collaboration
with a physician, to certify the need for post-hospital
extended care services for Medicare payment purposes; exempted
certain pharmacies from accreditation requirements until the
Secretary develops pharmacy-specific standards; created a 12-
month special enrollment period for Medicare Part B for
disabled TRlCARE beneficiaries; made adjustments for 2010 and
2011 to the Medicare payment rates for bone density tests;
eliminated the funds in the Medicare Improvement Fund in
FY2014; directed the Secretary to conduct a demonstration
project under Medicare Part B to make separate payments for
complex diagnostic laboratory tests provided to individuals,
and as of January 1, 2011, increased from 65 percent to 100
percent of the physician fee schedule payment amount the amount
provided to a certified nurse midwife for the same service
performed by a physician under the fee schedule.
In addition to the above improvements, Subtitle B contained
a series of provisions intended to improve care in rural
communities. Specifically, the Subtitle contained extension of:
(1) the Outpatient Hold Harmless provision (through January 1,
2011); (2) Medicare reasonable cost payments for certain
clinical diagnostic laboratory tests furnished to hospital
patients in rural areas (through July 1, 2011); (3) the rural
community hospital demonstration program; and (4) the Medicare
Dependent Hospital (MDH) program (through FY2012). Subtitle B
also modified the Medicare inpatient hospital payment
adjustment for low-volume hospitals for FY2011-FY2012, revised
requirements for the Demonstration Project on Community Health
Integration Models in Certain Rural Counties to allow
additional counties as well as physicians to participate,
directed MedPAC to study the adequacy of payments for health
care providers serving in rural areas, extended the Medicare
rural hospital flexibility program through FY 2012, and made
technical corrections to allow a critical access hospital in
Medicare to continue to be eligible to receive 101 percent of
reasonable costs for (1) providing outpatient care regardless
of the eligible billing method such hospital uses and (2)
qualifying ambulance services.
Finally, Subtitle B of Title III contained provisions
designed to improve payment accuracy in fee-for-service
Medicare. Specifically, provisions in this subtitle: (1)
required the Secretary to rebase home health payments by an
appropriate percentage, to reflect, among other things, the
number, mix, and level of intensity of home health services in
an episode and the average cost of providing care; (2) directed
the Secretary to study and report to Congress on home health
agency costs involved with providing ongoing access to care for
low-income Medicare beneficiaries or beneficiaries in medically
underserved areas, and in treating beneficiaries with varying
levels of severity of illness; (3) required the Secretary, by
January 1, 2011, to begin collecting additional data and
information needed to revise payments for hospice care and
directed the Secretary to implement by regulation, not earlier
than October 1, 2013, budget neutral revisions to the
methodology for determining hospice payments for routine home
care and other services, which may include per diem payments
reflecting changes in resource intensity in providing such care
and services during the course of an entire episode of hospice
care; (4) required the Secretary to impose new requirements on
hospice providers participating in Medicare, including
requirements for a hospice physician or nurse practitioner to
have a face-to-face encounter with the individual regarding
eligibility and recertification and a medical review of any
stays exceeding 180 days, where the number of such cases at a
hospice agency exceeds a specified percentage of them for all
hospice programs; (5) specified reductions to Medicare
Disproportionate Share Hospital (DSH) payments for FY2015 and
ensuing fiscal years, to reflect lower uncompensated care costs
relative to increases in the number of insured; (6) directed
the Secretary to periodically identify physician services as
being potentially misvalued and make appropriate adjustments to
the relative values of such services under the Medicare
physician fee schedule; (7) codified an increase in the
presumed utilization rate for calculating the payment for
advanced imaging equipment other than low-tech imaging such as
ultrasound, X-rays and EKGs and increased the technical
component payment ``discount'' for sequential imaging services
performed on contiguous body parts during the same visit; (8)
restricted the lump-sum payment option for new or replacement
wheelchairs to the complex, rehabilitative power-driven
wheelchairs only, eliminated the lump-sum payment option for
all other power-driven wheelchairs and made the rental payment
for power-driven wheelchairs 15 percent of the purchase price
for each of the first three months (instead of 10 percent), and
6 percent of the purchase price for each of the remaining 10
months of the rental period (instead of 7.5 percent); (9)
extended the ``Section 508'' hospital reclassifications through
September 30, 2010; (10) directed the Secretary to determine if
the outpatient costs incurred by PPS-exempt cancer hospitals,
including those for drugs and biologicals, exceed those costs
incurred by other hospitals reimbursed under the outpatient
prospective payment system (OPPS) and if so, to provide for an
appropriate OPPS adjustment to reflect such higher costs for
services furnished on or after January 1, 2011; (11) allowed a
biosimilar biological product to be reimbursed at 6 percent of
the average sales price of the brand biological product in
Medicare; (12) directed the Secretary to establish a Medicare
Hospice Concurrent Care demonstration program under which
Medicare beneficiaries are furnished, during the same period,
hospice care and any other Medicare items or services from
Medicare funds otherwise paid to such hospice programs; (13)
required application of the budget neutrality requirement
associated with the effect of the imputed rural floor on the
area wage index under the Balanced Budget Act of 1997 through a
uniform national adjustment to the area hospital wage index
floor rather than an adjustment to each specific state; (14)
directed the Secretary to study and report to Congress on the
need for an additional payment for urban Medicare-dependent
hospitals for inpatient hospital services under Medicare; and
(15) guaranteed that nothing in the PPACA shall result in the
reduction of guaranteed home health benefits under the Medicare
program.
Subtitle C of Title III contained provisions that made
changes to Part C of the Medicare program, also known as
Medicare Advantage (MA). Specifically, provisions in this
subtitle: changed the MA benchmark to base it on the average of
the bids from MA plans in each market; revised the formula for
calculating the annual Medicare+Choice capitation rate to
reduce the national MA per capita Medicare+Choice growth
percentage used to increase benchmarks in 2011; increased the
monthly MA plan rebates from 75 percent to 100 percent of the
average per-capita savings in 2014; required that bid
information which MA plans are required to submit to the
Secretary be certified by a member of the American Academy of
Actuaries and meet actuarial guidelines and rules established
by the Secretary; directed the Secretary, acting through the
CMS Chief Actuary, to establish actuarial guidelines for the
submission of bid information and bidding rules that are
appropriate to ensure accurate bids and fair competition among
MA plans; directed the Secretary to (1) establish new MA
payment areas for urban areas based on the Core Based
Statistical Area and (2) make monthly care coordination and
management performance bonus payments, quality performance
bonus payments, and quality bonuses for new and low enrollment
MA plans to MA plans that meet certain criteria; directed the
Secretary to provide transitional rebates for the provision of
extra benefits to enrollees; prohibited MA plans from charging
beneficiaries cost-sharing for chemotherapy administration
services, renal dialysis services, or skilled nursing care that
is greater than what is charged under the traditional fee-for-
service program; required MA plans to apply the full amount of
rebates, bonuses, and supplemental premiums according to the
following order (1) reduction of cost sharing, (2) coverage of
preventive care and wellness benefits, and (3) other benefits
not covered under the original Medicare fee-for-service
program; required the Secretary to analyze the differences in
coding patterns between MA and the original Medicare fee-for-
service programs and authorized the Secretary to incorporate
the results of the analysis into risk scores for 2014 and
subsequent years; and allowed beneficiaries to disenroll from
an MA plan and return to the traditional Medicare fee-for-
service program from January 1 to March 15 of each year and
revised requirements for annual beneficiary election periods.
In addition, provisions in Subtitle C: extended special
needs plan (SNP) authority through December 31, 2013;
authorized the Secretary to establish a frailty payment
adjustment under PACE payment rules for fully-integrated, dual-
eligible SNPs; extended authority through CY2012 for SNPs that
do not have contracts with state Medicaid programs to continue
to operate, but not to expand their service areas; directed the
Secretary to require an MA organization offering a specialized
MA plan for special needs individuals to be approved by the
National Committee for Quality Assurance; and required the
Secretary to use a risk score reflecting the known underlying
risk profile and chronic health status of similar individuals,
instead of the default risk score, for new enrollees in MA
plans that are not specialized MA SNPs. The bill also: extended
through calendar 2012 the length of time reasonable cost plans
may continue operating regardless of any other MA plans serving
the area; created a new type of MA plan called an MA Senior
Housing Facility Plan, which would be allowed to limit its
service area to a senior housing facility (continuing care
retirement community) within a geographic area; declared that
the Secretary is not required to accept any or every bid
submitted by an MA plan or Medicare Part D prescription drug
plan that proposes to increase significantly any beneficiary
cost sharing or decrease benefits offered and directed the
Secretary to request the National Association of Insurance
Commissioners (NAIC) to develop new standards for certain
Medigap plans.
Subtitle D of Title III contained provisions that made
improvements to Medicare Part D prescription Drug Plans and MA-
PD plans. Specifically, provisions in this subtitle amended the
Medicare statute Part D (Voluntary Prescription Drug Benefit
Program) to create conditions for the availability of coverage
for Part D drugs. The law requires pharmaceutical manufacturers
to participate in the Medicare coverage gap discount program
and directs the Secretary to establish such a program. The
discount program would apply to Medicare beneficiaries who
enroll in Part D, do not qualify for the low-income subsidy,
are not enrolled in an employer-sponsored retiree plan, and do
not have annual income that exceeds the Part B income
thresholds. Beginning July 1, 2010, eligible beneficiaries
would automatically receive a 50 percent discount off the
negotiated price for brand name drugs that are covered under
Part D.
The law also: excludes MA rebate amounts and quality bonus
payments from calculation of the regional low-income subsidy
benchmark premium for MA monthly prescription drug
beneficiaries; directs the Secretary to permit a prescription
drug plan or an MA-PD plan to waive the monthly beneficiary
premium for a subsidy eligible individual if the amount of such
premium is de minimis and provides that if such premium is
waived, the Secretary shall not reassign subsidy eligible
individuals enrolled in the plan to other plans based on the
fact that the monthly beneficiary premium under the plan was
greater than the low-income benchmark premium amount and
authorizes the Secretary to auto-enroll subsidy eligible
individuals in plans that waive de minimis premiums; sets forth
a special rule for widows and widowers regarding eligibility
for low-income assistance that allows the surviving spouse of
an eligible couple to delay redetermination of eligibility for
one year after the death of a spouse; directs the Secretary (in
the case of a subsidy eligible individual enrolled in one
prescription drug plan but subsequently reassigned by the
Secretary to a new prescription drug plan) to provide the
individual with (1) information on formulary differences
between the individual's former plan and the new plan with
respect to the individual's drug regimens and (2) a description
of the individual's right to request a coverage determination,
exception, or reconsideration, bring an appeal, or resolve a
grievance; amended the Medicare Improvements for Patients and
Providers Act (MIPPA) to provide additional funding for FY2010-
FY2012 for outreach and education activities related to
specified Medicare low-income assistance programs; authorized
the Secretary to identify classes of clinical concern through
rulemaking (in order to improve formulary requirements for such
classes), including anticonvulsants, antidepressants,
antineoplastics, antipsychotics, antiretrovirals, and
immunosuppressants for the treatment of transplant rejection
and required PDP sponsors to include all drugs in these classes
in their formularies; required Part D enrollees who exceed
certain income thresholds to pay higher premiums (similar to
those premiums paid by higher income Part B enrollees); revised
the current authority of the IRS to disclose income information
to the Social Security Administration for purposes of adjusting
the Part B subsidy; eliminated cost-sharing for certain dual
eligible individuals receiving care under a home and community-
based waiver program (in Medicaid) who would otherwise require
institutional care; directed the Secretary to require sponsors
of prescription drug plans to utilize specific, uniform
techniques for dispensing covered Part D drugs to enrollees who
reside in a long-term care facility in order to reduce waste
associated with 30-day refills; directed the Secretary to
develop and maintain an easy to use complaint system to collect
and maintain information on MA-PD plan and prescription drug
complaints received by the Secretary until the complaint is
resolved; require a prescription drug plan sponsor to (1) use a
single, uniform exceptions and appeals process for
determination of a plan enrollee's prescription drug coverage,
and (2) provide instant access to this process through a toll-
free telephone number and an Internet website; required the HHS
Inspector General to study and report to Congress on (1) the
inclusion in formularies of drugs commonly used by dual-
eligibles, and (2) prescription drug prices under Medicare part
D and Medicaid; allows the costs incurred by AIDS drug
assistance programs and by IHS in providing prescription drugs
to count toward the annual out-of-pocket threshold and
increases by $500 the 2010 standard initial coverage limit
(thus decreasing the time that a part D enrollee would be in
the coverage gap).
Subtitle E of Title III contained provisions designed to
ensure payment accuracy and improve Medicare's sustainability.
Specifically, provisions in this subtitle: revised certain
market basket updates and incorporated a full productivity
adjustment into any updates that do not already incorporate
such adjustments, including inpatient hospitals, home health
providers, nursing homes, hospice providers, inpatient
psychiatric facilities, long-term care hospitals, inpatient
rehabilitation facilities, and Part B providers; established a
quality measure reporting program for psychiatric hospitals
beginning in FY2014; and, revised requirements for reduction of
the Medicare Part B premium subsidy based on income (current
2010 income thresholds for the income-related premium are held
constant for the period of 2011 through 2019).
Subtitle E also established an Independent Payment Advisory
Board to develop and submit detailed proposals to reduce the
per capita rate of growth in Medicare spending to the President
for Congress to consider. Subtitle E also established an
Independent Payment Advisory Board to develop and submit
detailed proposals to reduce the per capita rate of growth in
Medicare spending to the President for Congress to consider.
The law: (1) directs the Chief Actuary to undertake a
determination process by which the Chief Actuary establishes
whether the projected per capita Medicare expenditure growth
rate will exceed a target level growth rate; (2) if the Chief
Actuary determines the growth target was exceeded, directs the
Board to develop a detailed proposal to reduce the growth rate
by an applicable savings target; (3) sets forth a schedule for
the Chief Actuary's determination and Board development and
submission of proposals to Congress; and (4) if the Board is
required to develop a proposal but fails to transmit its
proposal to Congress by the required date, requires the
Secretary to develop a proposal that meets the applicable
savings target and transmit it to Congress and the President,
with a copy to the Medicare Payment Advisory Commission by a
set date. The Board's proposal will be automatically
implemented during the next payment year unless legislation is
enacted to alter the proposal. The scope of the Board's
proposals are limited to the Medicare program but may not
include any action to ration care, raise revenues or Medicare
beneficiary premiums, increase cost-sharing, restrict benefits,
or alter eligibility. Prior to December 31, 2019, proposals may
not reduce payments to providers or suppliers scheduled to
receive a reduction in payment in excess of the productivity
adjustments under Sec. 3401. Finally, in addition to Board
proposals to control costs and the Board's annual public
report, the Board will, beginning no later than January 15,
2015, and every two years thereafter, submit to Congress and
the President recommendations designed to slow the growth in
national health expenditures (excluding expenditures under this
title and in other Federal health care programs) while
preserving or enhancing quality of care.
Subtitle F of Title III contained a series of provisions
designed to improve health care quality. For the most part they
amended the Public Health Service Act, a law which does not
fall under the jurisdiction of the Committee on Ways and Means.
Subtitle G of Title III contained provisions designed to
protect and improve the benefits guaranteed to Medicare
beneficiaries. Specifically, provisions in this Subtitle
provided that nothing in PPACA shall result in a reduction of
guaranteed benefits under the Medicare program and that savings
generated for the Medicare program under PPACA shall extend the
solvency of the Medicare trust funds, reduce Medicare premiums
and other cost-sharing for beneficiaries, and improve or expand
guaranteed Medicare benefits and protect access to Medicare
providers. Additional provisions stated that nothing in PPACA
shall result in the reduction or elimination of any benefits
guaranteed by law to participants in MA plans.
Title IV of PPACA contained provisions relating to disease
prevention and public health. The majority of these provisions
amended the Public Health Service Act (PHSA) and are not the
jurisdiction of the Ways and Means Committee. However, there
were three provisions in Title IV that amended Title XVIII of
the SSA to improve preventive services benefits in Medicare.
Section 4103 provided for Medicare coverage for an Annual
Wellness Visit and personalized prevention plan and eliminated
cost-sharing for such services. Section 4104 eliminated cost-
sharing in Medicare for preventive services recommended by the
U.S. Preventive Services Task Force (USPSTF). Section 4105
authorized the Secretary of HHS to modify the coverage of
preventive services in Medicare to be consistent with the
recommendations of the USPSTF.
Title V of PPACA contained provisions relating to
improvements in the health care workforce. The majority of
these provisions amended programs authorized in the PHSA which
are not under the jurisdiction of the Ways and Means Committee.
However, Subtitle F of Title V contained provisions that
amended Title XVIII of the SSA to strengthen primary care
services and make other workforce improvements within the
Medicare program. Specifically, the subtitle created a 5-year
incentive payment program (beginning in 2011) to provide a 10
percent bonus payment to Medicare providers who provide primary
care services as well as those who furnish major surgical
procedures in Health Professional Shortage Areas. In addition,
the subtitle expanded Medicare-covered preventive services at
Federally Qualified Health Centers (FQHCs) and created a
prospective payment system for FQHCs. The subtitle also
contained provisions which provided processes for the
distribution of additional residency slots as well as new rules
concerning the ability of hospitals to count resident time
spent in non-provider settings and didactic and scholarly
activities for the purposes of Graduate Medical Education and
Indirect Medical Education payments. It also contained
provisions to preserve resident cap positions from closed
hospitals and create a graduate nurse education demonstration
program within Medicare.
Title VI of PPACA contained provisions relating to
transparency and program integrity. The title was divided into
thematic subtitles that addressed different issues relating to
transparency and program integrity. Subtitle A contained
provisions that placed limits on the Medicare exception on
certain physician referrals for hospitals; required drug,
device, and biological and medical supply manufacturers to
report to the Secretary transfers of value made to a physician,
physician medical practice, a physician group practice, and/or
teaching hospital, as well as information on any physician
ownership or investment interest in the manufacturer (and
created penalties for noncompliance with reporting); required
that Medicare physicians inform their patients in writing of
the opportunity to obtain an imaging service from a person
other than the referring physician or someone who is a member
of the same group practice or is supervised by a physician in
that practice and provide a list of other potential suppliers
to the patient; required prescription drug manufacturers and
authorized distributors of record to report to the Secretary
specified information pertaining to drug samples; and required
pharmacy benefit managers (PBMs) under contract with Medicare
or an Exchange health plan to disclose to the Secretary
information regarding the generic dispensing rate, the rebates,
discounts, or price concessions negotiated by the PBM, and the
payment difference between health plans and PBMs and the PBMs
and pharmacies.
Subtitles B and C of Title VI contained provisions relating
to improved transparency for nursing homes under Title XVIII
and XIX of the Social Security Act. Specifically, provisions in
this subtitle required disclosure of certain ownership
interests in Skilled Nursing Facilities; required that nursing
facilities operate compliance and ethics programs; required
that the Secretary publish additional information on the
federal Nursing Home Compare website relating to staffing data,
survey and certification program information, model complaint
forms, summaries of substantiated complaints, and the number of
adjudicated instances of criminal violations by an employee;
required SNFs to report on wages and benefits for direct care
staff; required the Secretary to develop a standardized
complaint form and States to establish a complaint resolution
process; required the Secretary to develop a program for
facilities to report direct care staffing information on
payroll and other verifiable and auditable data in a uniform
format and required the Comptroller General to study and report
to Congress on the Five-Star Quality Rating System for nursing
homes of CMS.
In addition, provisions in this subtitle provided authority
for the Secretary to reduce civil monetary penalties for
certain SNFs that self-report and correct deficiencies quickly;
directed the Secretary to establish a demonstration program to
develop a national independent monitoring program to oversee
intrastate and large interstate chains of nursing facilities;
required that administrators of SNFs that are preparing to
close notify residents or their representatives in writing at
least 60 days in advance and to provide a plan for relocation;
required the Secretary to conduct SNF based demonstration
projects to develop best practice models; required SNFs to
include dementia and abuse prevention training as part of pre-
employment initial training and, if appropriate, ongoing in-
service training and required that the Secretary establish a
nationwide program for national and state background checks on
prospective direct patient access employees of long-term care
facilities and providers.
Subtitle D of Title VI contained provisions relating to
Patient-Centered Outcomes Research. The subtitle amends SSA
title XI to establish a non-profit, non-governmental institute
called the Patient-Centered Outcomes Research Institute to
identify priorities for, and establish, update, and carry out,
a national comparative outcomes research project agenda. It
also provides for a peer review process for primary research.
In addition, it amends the Public Health Service Act to direct
the Office of Communication and Knowledge Transfer at AHRQ to
disseminate broadly the research findings published by the
Institute and other government-funded research relevant to
comparative clinical effectiveness research. It prohibits the
Secretary from using evidence and findings from Institute
research to make a determination regarding Medicare coverage
unless such use is through an iterative and transparent process
which includes public comment and considers the effect on
subpopulations. It amends the Internal Revenue Code to
establish in the Treasury the Patient-Centered Outcomes
Research Trust Fund (PCORTF) and directs the Secretary to make
annual transfers to that Trust Fund from the Medicare Trust
Funds in proportion to the number of individuals entitled to
benefits under Part A or enrolled under Part B of Medicare. It
also imposes annual fees of $2 per insured life on specified
health insurance policies and on self-insured health plans and
deposits such fees in the PCORTF. Finally, the subtitle
terminates the Federal Coordinating Council for Comparative
Effectiveness Research that was created in the American
Recovery and Reinvestment Act (ARRA).
Subtitle E of Title VI contained a series of Medicare,
Medicaid and CHIP program integrity provisions. Specifically,
these provisions provided new screening, enrollment, and
disclosure and oversight procedures for Medicare, Medicaid and
CHIP providers; authorized the Secretary to deny enrollment in
a program if these affiliations pose an undue risk to it and
required providers and suppliers to establish a compliance
program.
In addition to new provider screening and enrollment
procedures, the law directs CMS to place certain data in the
integrated data repository including claims and payment data
from Medicare, Medicaid, CHIP, and health-related programs
administered by the Departments of Veterans Affairs (VA) and
the Department of Defense (DOD), the Social Security
Administration, and IHS. The Secretary is also directed to
enter into data-sharing agreements with the Commissioner of
Social Security, the VA and DOD Secretaries, and the IHS
Director to help identity fraud, waste, and abuse. The law also
requires that overpayments be reported and returned within 60
days from the date the overpayment was identified or by the
date a corresponding cost report was due, whichever is later;
directs the Secretary to issue a regulation requiring all
Medicare, Medicaid, and CHIP providers to include their
National Provider Identifier on enrollment applications;
authorizes the Secretary to exclude providers and suppliers
from participation in any federal health care program for
providing false information on any application to enroll or
participate; subjects to civil monetary penalties excluded
individuals who (1) order or prescribe an item or service; (2)
make false statements on applications or contracts to
participate in a federal health care program; or (3) know of an
overpayment and do not return it; authorizes the Secretary to
issue subpoenas and require the attendance and testimony of
witnesses and the production of any other evidence that relates
to matters under investigation or in question; requires the
Secretary take into account the volume of billing for a durable
medical equipment (DME) supplier or home health agency when
determining the size of the supplier's and agency's surety
bond.
The law also authorizes the Secretary to require other
providers and suppliers to post a surety bond if the Secretary
considers them to be at risk and to suspend payments to a
provider or supplier pending a fraud investigation. It
appropriates an additional $10 million, adjusted for inflation,
to the Health Care Fraud and Abuse Control each year from
FY2011-FY2020. It requires the Secretary to furnish the
National Practitioner Data Bank (NPDB) with all information
reported to the national health care fraud and abuse data
collection program on certain final adverse actions taken
against health care providers, suppliers, and practitioners. It
also requires the Secretary to establish a process to terminate
the Healthcare Integrity and Protection Databank (HIPDB) and
ensure that the information formerly collected in it is
transferred to the NPDB; reduces from three years to one year
after the date of service the maximum period for submission of
Medicare claims; requires DME or home health services to be
ordered by an enrolled Medicare eligible professional or
physician and authorizes the Secretary to extend these
requirements to other Medicare items and services to reduce
fraud, waste, and abuse. It authorizes the Secretary to
disenroll, for up to one year, a Medicare enrolled physician or
supplier that fails to maintain and provide access to written
orders or requests for payment for DME, certification for home
health services, or referrals for other items and services and
to exclude from participation in any federal health care
program any individual or entity ordering, referring for
furnishing, or certifying the need for an item or service that
fails to provide adequate documentation to verify payment. It
requires a physician, nurse practitioner, clinical nurse
specialist, certified nurse-midwife, or physician assistant to
have a face-to-face encounter with an individual before issuing
a certification for home health services or DME and authorizes
the Secretary to apply the same face-to-face encounter
requirement to other items and services based upon a finding
that doing so would reduce the risk of fraud, waste, and abuse.
It revises civil monetary penalties for making false statements
or delaying inspections and applies specified enhanced
sanctions and civil monetary penalties to MA or Part D plans
that: (1) enroll individuals in an MA or Part D plan without
their consent; (2) transfer an individual from one plan to
another for the purpose of earning a commission; (3) fail to
comply with marketing requirements and CMS guidance; or (4)
employ or contract with an individual or entity that commits a
violation. The law also requires the Secretary to establish a
self-referral disclosure protocol to enable health care
providers and suppliers to disclose actual or potential
violations of the physician self-referral law.
Finally, the law requires the Secretary to: (1) expand the
number of areas to be included in round two of the DMEPOS
competitive bidding program from 79 to 100 of the largest
metropolitan statistical areas and (2) use competitively bid
prices in all areas by 2016. It requires states to establish
contracts with one or more Recovery Audit Contractors (RACs),
which shall identify underpayments and overpayments and recoup
overpayments made for services provided under state Medicaid
plans as well as state plan waivers and requires the Secretary
to expand the RAC program to Medicare Parts C (Medicare+Choice)
and D (Prescription Drug Program).
Title VII of PPACA contained provisions relating to
improving access to innovative medical therapies. Specifically,
the title contained provisions that created an approval pathway
for biosimilar biological products and made changes to the 340B
drug discount program. These provisions are not under the
jurisdiction of the Committee on Ways and Means.
Title IX contained revenue offset provisions. These
provisions are described in the Tax sections of this report.
Title X of PPACA was added as an amendment during debate in
the Senate. The title contained provisions which modified a
number of provisions in each of the first nine titles of the
bill. The amendments to Title I included amendments to rules
regarding lifetime and annual limits for group health plans and
health insurance issuers offering individual coverage; rules
prohibiting discrimination in favor of highly compensated
individuals; rules pertaining to allowable medical loss ratio
(MLRs) for certain plans, corresponding rebates to
beneficiaries for failure to meet such ratios and new internal,
and external appeals processes created in Title I. The
amendments also added certain new patient protections relating
to choice of provider, coverage of emergency services, access
to pediatric care, and access to obstetrical and gynecological
care. The amendments also added certain coverage requirements
for plans to allow beneficiaries to participate in clinical
trials.
Title I was further amended to change references to CO-OP
plans, allow for qualified health plans to provide coverage
through a medical home, allow for premium variation based on
rating area, set base payment levels to FQHC's providing
services to beneficiaries enrolled in exchange plans, specify
rules relating to abortion coverage in qualified health plans,
provide for the creation and oversight of multi-state plans to
operate in each state exchanges, increase the wage phase out
and accelerate the availability of the Small Business Tax
Credit for health insurance expenses, provide for the Secretary
to study geographic variability in application of the Federal
Poverty Level (FPL) as it would be used in the administration
of premium, cost sharing and small business tax credits, modify
the individual responsibility requirement, modify rules
relating to religious conscience exemptions, and modify rules
relating to large employers with excessive waiting periods.
In addition, amendments in title X created ``free choice
vouchers'' that are available to employees whose required
contribution to their employer sponsored plan is between 8.0
and 9.8 percent of income. The voucher would consist of the
employer contribution to the eligible employer sponsored plan
and a Health Insurance Exchange would be required to credit the
amount of any free choice voucher paid by an employer to the
monthly premium of any qualified health plan in which the
employee is enrolled. The amount of any free choice voucher is
excludable from the gross income of the employee and the law
permits a deduction by employers for such costs.
Finally, the amendments in Title X made further changes to
Title I provisions related to administrative simplification to
require the HHS Secretary to seek input to determine if there
could be greater uniformity in financial and administrative
health care activities and items and to (1) task the ICD-9-CM
Coordination and Maintenance Committee to convene a meeting to
receive input regarding and recommend revisions to the
crosswalk between the Ninth and Tenth Revisions of the
International Classification of Diseases; and (2) make
appropriate revisions to such crosswalk.
Title X also made a series of amendments and additions to
provisions in Title III of the bill. These provisions included:
a requirement that the Secretary develop plans for a value-
based purchasing program for Ambulatory Surgical Centers;
modifications to the rules regarding testing of innovative
payment models within the Center for Medicare and Medicaid
Innovation; modifications to the Medicare shared savings
program; revisions to the national pilot program on payment
bundling; revisions to the hospital readmission reductions
program; repeal of the 0.5% update to the physician fee
schedule for 2010; revisions to the rural community hospital
demonstration program; revisions to the extension of Ambulance
add-ons; revisions to the payment rules for Long-Term Care
Hospital services and the moratorium on the establishment of
certain hospitals and facilities; revisions to provisions
relating to low-volume hospitals; revisions to home health
provisions including a revision of the Secretary's report on
the development of home health payment revisions in order to
ensure access to care and payment for severity of illness;
revisions to provisions affecting Medicare Disproportionate
Share Hospital payments; revisions to the extension of Section
508 hospital reclassification provisions; revisions to
provisions affecting transitional extra benefits under Medicare
Advantage; revisions to the provisions affecting the market
basket adjustments for certain fee-for-service providers; an
expansion in the scope of the Independent Payment Advisory
Board; revisions to the new quality reporting requirements for
Psychiatric Hospitals in Medicare; a new requirement providing
Medicare coverage to individuals exposed to certain
environmental health hazards; the creation of a floor on the
Area Wage Index for Hospitals in certain frontier states; a
temporary delay of the RUG-IV payment system for Skilled
Nursing Facilities until at least October 1, 2011; a
requirement that the Secretary conduct pilot tests of pay-for-
performance programs for certain Medicare providers including
psychiatric Hospitals, Long-Term Care Hospitals, Inpatient
Rehabilitation Facilities, PPS-exempt cancer hospitals and
hospice programs; additional incentive payments under the
physician quality reporting system in 2011 through 2014 to
eligible professionals who report quality measures to CMS via a
qualified Maintenance of Certification program; an elimination
of the Medicare Advantage Regional Plan Stabilization Fund; a
requirement that Medicare Part D prescription drug plans
include a comprehensive review of medications as part of their
medication therapy management programs; a requirement that the
Secretary develop a methodology to measure health plan value; a
requirement that the Secretary develop a plan to modernize CMS
computer and data systems; a requirement that the Secretary
develop a Physician Compare website with information on
physicians enrolled in the Medicare program and other eligible
professionals who participate in the Physician Quality
Reporting Initiative; and implement a plan to make information
on physician performance public through Physician Compare,
particularly quality and patient experience measures; a
requirement that the Secretary make available to qualified
entities standardized extracts of Medicare claims data for the
evaluation of the performance of service providers and
suppliers; and a GAO study on Medicare beneficiary access to
high-quality dialysis services.
Lastly, provisions in Title X made a few small changes to
provisions in Titles IV and VI that fall under the jurisdiction
of the Committee on Ways and Means. These changes included:
modifications to ensure the waiver of coinsurance for
preventive services in Medicare in all provider settings;
modifications to the effective date of the limitation on the
Medicare exception to the prohibition on certain physician
referrals for hospitals; clarifications regarding the secondary
use of research data produced by Patient Centered Outcomes
Research Institute; elimination of provisions relating to fees
that would be paid by providers applying to be part of the
Medicare program; and modifications to provisions that require
a face to face encounter with a physician for the ordering of
home health services in Medicare such that a face-to-face
encounter with nurse practitioners, clinical nurse specialists,
nurse midwives and physician assistants who are working in
collaboration with a physician may meet the requirement.
Title X also made modifications to Title IX, the revenue
provisions. These provisions are described in the tax section
of this report.
G. Health Care and Education Reconciliation Act of 2010 (P.L. 111-152)
On March 30, 2010 the Health and Education Reconciliation
Act of 2010 (HCERA) (P.L. 111-152) was signed into law. This
bill was considered in the House shortly after the Patient
Protection and Affordable Care Act (PPACA) and was signed by
the President a week after PPACA was signed into law. The
health related portions of the bill included new provisions as
well as amendments to PPACA. Title I of the bill contained
health related provisions and was divided into five subtitles.
Title II contained education and health-related provisions. The
education-related provisions are not under the purview of the
Committee on Ways and Means.
Title I of HCERA made amendments to the insurance coverage
portions of PPACA. Specifically, provisions in Subtitle A
amended sections of the Internal Revenue Code added by the
Patient Protection and Affordable Care Act (PPACA) to revise
the formula for calculating the refundable tax credit for
premium assistance for coverage under a qualified health plan
by establishing a sliding scale from the initial to the final
premium percentage for individuals and families with household
incomes up to 400 percent of the federal poverty line; required
adjustments, after 2014 and after 2018, of the initial and
final premium percentages to reflect the excess (if any) of the
rate of premium growth over the rate of growth of income and
the consumer price index; reduced from 9.8 percent to 9.5
percent of a taxpayer's household income the maximum amount an
employee's required contribution to an employer-sponsored plan
may be for such employee to be treated as eligible for
employer-sponsored minimum essential coverage; and increased
the percentage of plan cost sharing for the out-of-pocket
expenses of individuals with household incomes between 100
percent and 400 percent of the federal poverty line.
Subtitle A also revised the PPACA provisions that set forth
penalties to be imposed on individuals who decline to purchase
health care coverage by: (1) lowering the maximum penalty
amount from $495 to $325 in 2015 and from $750 to $695 in 2016;
and (2) increasing the penalty rates based on taxpayer
household income for taxable years beginning in 2014 and 2015
and for taxable years beginning after 2015. Additional
provisions in Subtitle A revised the PPACA provisions setting
forth penalties to be imposed on employers with 50 or more
employees who decline to offer employees health care coverage
to allow an exemption for the first 30 employees (including
part-time employees) when calculating the penalty; increased
the applicable penalty amount per employee to $2,000; and
eliminated the assessment on large employers with extended
waiting periods for enrollment in employer-sponsored plans.
Finally, other provisions in Subtitle A modified the
definition of ``modified adjusted gross income'' for purposes
of the Exchange tax credit for premium assistance and the
individual responsibility requirement for purchasing health
care coverage; extended the exclusion from gross income for
employer-provided health care coverage to adult children up to
age 26; required Exchanges that offer health care plans to
provide the Secretary of the Treasury and taxpayers with
specified information, including information about the level of
coverage, the total premium for coverage, and the aggregate
amount of any advance payment of the premium assistance tax
credit; and established a Health Insurance Reform
Implementation Fund within the Department of Health and Human
Services (HHS) and made appropriations to the Fund for the
administrative costs of carrying out PPACA and HCERA.
Subtitle B of Title I of HCERA made amendments to the
Medicare-related provisions of PPACA. Specifically, provisions
in this subtitle: amended Medicare Part D to direct the
Secretary of HHS to provide a one-time $250 rebate in 2010 to
all Medicare Part D enrollees who enter the Medicare Part D
coverage gap (also known as the ``donut hole,'' the difference
between the standard initial coverage limit and the
catastrophic or out-of-pocket coverage threshold for which the
Medicare beneficiary is financially responsible); delayed until
January 1, 2011, the deadline for establishment of a Medicare
coverage gap discount program (created in PPACA), as well as
the effective date of the requirement that a Part D drug
manufacturer participate in it and repealed the increase by
$500 in the 2010 standard initial coverage limit (thus
restoring the provisions in effect before enactment of PPACA);
further amended the Medicare statutes, as amended by PPACA, to
reduce the coinsurance percentage for covered brand-name and
generic drugs to 25 percent by 2020 (thus closing the donut
hole with 75 percent discounts); and revised the growth rate of
the out-of-pocket cost threshold for Part D plans.
In addition, provisions in this subtitle amended PPACA to
repeal: (1) certain provisions concerning Medicare Advantage
(MA) payments, benchmarks, and capitation rates and (2) a
requirement that the Secretary analyze the differences in
coding patterns between MA and the original Medicare fee-for-
service programs, and incorporate the results into risk scores
for 2014 and subsequent years. This subtitle transitions MA
benchmark methodology to a new blended benchmark methodology
using area percentages of local fee-for services spending.
Beginning in 2013, MA benchmarks will be reduced relative to
current levels, varying them from 95 percent of Medicare
spending in high-cost areas to 115 percent of Medicare spending
in low-cost areas. Beginning in 2012, the Subtitle creates a
new quality incentive program for plans with quality ratings of
four or five stars on a five-star system. The new program will
increase payments to high-quality plans by as much as 5
percent. In addition, the Subtitle extended the authority of
the Centers for Medicare & Medicaid Service to adjust MA risk
scores for observed differences in coding patterns relative to
fee-for-service; repealed the Comparative Cost Adjustment
Program under the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003; required MA plans whose medical loss
ratios are not at least 0.85 to remit to the Secretary an
amount equal to a specified percentage of plan revenue and
require the Secretary to prohibit enrollment in such a plan of
new enrollees for three consecutive contract years and
terminate the contract if the plan fails to have a 0.85 medical
loss ratio for five consecutive contract years.
Additional provisions in this subtitle: advanced the start
date for Medicare disproportionate share hospital (DSH) payment
reductions from FY 2015 to FY 2014, revised the formula to
lower the amount of the reduction scheduled to occur over ten
years, and revised the hospital market basket reduction
applicable to payments to inpatient hospitals, long-term care
hospitals, inpatient rehabilitation facilities, psychiatric
hospitals, and outpatient hospitals. This subtitle also amended
section 6001 of PPACA regarding the limitation on Medicare
exception to the prohibition on certain physician referrals for
hospitals by: (1) postponing from August 1, 2010, to December
31, 2010, the date by which physician-owned hospitals must have
a provider agreement in order to participate in Medicare under
a rural provider and hospital exception to the physician-
ownership or -investment prohibition if they also meet certain
requirements addressing conflicts of interest, bona fide
investments, patient safety issues, and expansion limitations;
(2) modifying the expansion limitation imposed on such a rural
hospital under which the number of operating rooms, procedure
rooms, and beds for which the hospital is licensed at any time
on or after the enactment of PPACA is no greater than the
number of such rooms and beds for which the hospital is
licensed as of such date; and (3) allowing an exception to the
expansion limitation for a high Medicaid hospital that treats
the highest percentage of Medicaid patients in their county
(and is not the sole hospital in the county).
Finally, provisions in this Subtitle: revised the special
rule in the physician fee schedule for imaging services, in
particular the PPACA adjustment in the practice expense
relative value units with respect to advanced diagnostic
imaging services to reflect a higher presumed utilization rate
and replaced the multiyear phase-in of the assumed utilization
rate from 50 percent to 75 percent with a flat 75 percent rate
for 2011 and subsequent years; modified the employee wage and
rent portions of the practice expense geographic index
adjustment for 2010 and subsequent years and required such
portions to reflect \1/2\ (instead of \3/4\) of the difference
between the relative costs of employee wages and rents in each
of the different fee schedule areas and the national average of
such employee wages and rents; and, directed the Secretary to
provide for a specified payment for FY 2011 and FY 2012 to
qualifying subsection (d) hospitals located in a county that
ranks (within the lowest quartile of such counties in the
United States) based upon age, sex, and race adjusted spending
per enrollee for Medicare Parts A and B benefits.
Subtitle C of Title I contained provisions relating to
Medicaid, a program which is not under the jurisdiction of the
Committee on Ways and Means.
Subtitle D of Title I contained provisions designed to
reduce fraud, waste, and abuse in Federal health programs.
Specifically, provisions in this subtitle: revised the meaning
of a community mental health center that provides Medicare
partial hospitalization services as a distinct and organized
intensive ambulatory treatment service offering less than 24-
hour-daily care and established new requirements for such
community mental health centers to require that they provide
(1) daily care other than in an individual's home or in an
inpatient or residential setting and (2) at least 40 percent of
its services to individuals who are not eligible for Medicare
benefits; repealed Medicare prepayment medical review
limitations to facilitate additional reviews designed to reduce
fraud and abuse; made additional appropriations to the Health
Care Fraud and Abuse Control Account of the Federal Hospital
Insurance Trust Fund for FY 2011-FY 2016 and to the Medicare
Integrity Program for FY 2010 and each subsequent year, indexed
for inflation; and revised requirements for the enrollment
process for Medicare DMEPOS providers and suppliers to require
the Secretary to withhold payment for a 90-day period after
submission of a claim if the Secretary determines there is
significant risk of fraudulent activity.
Subtitle E of Title I made revisions to PPACA provisions
relating to revenue. Descriptions of these provisions are
contained in the tax portion of this report.
Title II, specifically Subtitle B of Title II, contained
additional health provisions. Provisions in Subtitle B amended
PPACA to apply provisions that prohibit a health plan from
applying any waiting period for coverage that exceeds 90 days
to grandfathered health plans for plan years beginning on or
after January 1, 2014. The subtitle also extended the
application of certain PPACA private insurance provisions that:
(1) prohibit a health plan from establishing lifetime limits on
the dollar value of benefits for any participant or
beneficiary; (2) prohibit a health plan from rescinding
coverage of an enrollee except in the case of fraud or
intentional misrepresentation of material fact; and (3) require
a health plan that provides dependent coverage of children to
make such coverage available for an adult child under 26 years
of age to grandfathered health plans for plan years beginning
on or after six months after enactment of PPACA.
In addition, the subtitle extended the application of
provisions that: (1) prohibit a health plan from establishing
annual limits on the dollar value of benefits for any
participant or beneficiary (except that restrictions on annual
limits apply for plan years beginning on or after six months
after enactment of PPACA and continue until January 1, 2014);
and (2) prohibit a health plan from imposing any preexisting
condition exclusions, except that such requirements apply for
plan years beginning on or after six months after enactment of
PPACA for enrollees under 19 years of age to grandfathered
group health plans for plan years beginning on or after January
1, 2014. It also requires grandfathered group health plans for
plan years beginning before January 1, 2014, to provide
dependent coverage to an adult child until age 26 only if such
child is not eligible to emoll in an employer-sponsored health
plan other than such grandfathered health plan; repeals the
requirement that an adult child be unmarried in order to
qualify for dependent coverage until age 26; limits the 340B
drug discount program to outpatient drugs and removes
exceptions to the prohibition on enrolled hospitals obtaining
covered outpatient drugs through a group purchasing
organization or a group purchasing arrangement (thus restoring
the provisions in effect before enactment of PPACA); excludes
certain drugs designated for a rare disease or condition as
covered outpatient drugs for covered entities added to the
program under PPACA; and increases the authorization of
appropriations for FY 2011-FY 2015 to the Community Health
Center Fund to provide enhanced funding for the community
health center program.
H. Continuing Extension Act of 2010 (P.L. 111-157)
On April 15, 2010, the ``Continuing Extension Act of 2010''
was signed into law. The bill extended eligibility for the
COBRA premium subsidy originally authorized under the American
Recovery and Reinvestment Act of 2009 (ARRA) and extended under
the Temporary Extension Act of 2010 from March 31, 2010, to May
31, 2010. The bill averted a 21 percent reduction in Medicare
physician payments scheduled to take effect on April 1, 2010,
and extended fee schedule rates until May 31, 2010. The bill
also clarified the definition of ``hospital-based eligible
provider'' for purposes of determining whether such provider is
eligible for health information technology incentives under the
Medicare and Medicaid programs.
I. TRICARE Affirmation Act (P.L. 111-159)
On April 26, 2010, the ``TRICARE Affirmation Act'' was
signed into law. The bill amended the Internal Revenue Code to
provide that health care coverage provided by the TRICARE
program and the Non-appropriated Fund Health Benefits Program
of the Department of Defense (DOD) shall constitute minimal
essential health care coverage as required by the Patient
Protection and Affordable Care Act.
J. To clarify the health care provided by the Secretary of Veterans
Affairs constitutes Minimum Essential Coverage (P.L. 111-173)
On May 27, 2010, the President signed H.R. 5014, a bill to
clarify that the health care provided by the Secretary of
Veterans Affairs constitutes Minimum Essential Coverage. The
bill amended the Internal Revenue Code to clarify that care
provided by the Department of Veterans Affairs (VA) to children
of Vietnam War and certain Korean War veterans for spina
bifida-related medical conditions and children of women Vietnam
veterans born with certain birth defects as meeting the
definition of minimum essential coverage under requirements of
the Patient Protection and Affordable Care Act.
K. Preservation of Access to Care for Medicare Beneficiaries and
Pension Relief Act of 2010 (P.L. 111-192)
On June 25, 2010, the ``Preservation of Access to Care for
Medicare Beneficiaries and Pension Relief Act of 2010'' was
signed into law. The bill's Medicare-related provisions averted
a 21 percent reduction in Medicare payments to physicians and
increased the single conversion factor in the formula for
determining physician payment rates by 2.2 percent for services
furnished from June 1, 2010, through November 30, 2010. The
bill also clarifies the definition of ``other services'' that
are included in the payment rate for inpatient hospital
services under the three-day payment window.
In addition, the bill amended the Internal Revenue Code
(IRC) to authorize the Secretary of the Treasury to disclose to
officers and employees of the Department of Health and Human
Services (HHS) tax return information regarding delinquent tax
debt with respect to taxpayers who apply to enroll or reenroll
as Medicare service providers or suppliers. It also required
the HHS Secretary to take this information into account in
determining whether to deny such an application or to apply
enhanced oversight to a service provider or supplier who owes
such a debt. The pension provisions of this law are described
in the tax section of this report.
L. Physician Payment and Therapy Relief Act of 2010 (P.L. 111-286)
On November 30, 2010, the Physician Payment and Therapy
Relief Act of 2010 (P.L. 111-286) was signed into law. The law
amended title XVIII (Medicare) of the Social Security Act to
continue the existing 2.2 percent physician payment update that
would have expired November 30, 2010, for an additional month
through December 31, 2010. It also applies a 20 percent
reduction, rather than the 25 percent reduction (which was
established by regulation) in the discount for certain multiple
therapy services furnished on or after January 1, 2011, and
exempts reduced expenditures attributable to the multiple
procedure payment reduction from budget-neutrality
requirements.
M. Medicare and Medicaid Extenders Act of 2010 (P.L. 111-309)
On December 15, 2010, the Medicare and Medicaid Extenders
Act of 2010 was signed into law. The law extended a series of
expiring provisions and made certain technical corrections to
underlying law. Specifically, the law averted a 25 percent
reduction in Medicare physician payments scheduled to take
effect on January 1, 2011, and provided for a freeze to the
update of the single conversion factor through December 31,
2011. The law also: extended Medicare section 508 hospital
reclassifications through FY2011; extended the floor on the
Medicare work geographic cost index adjustment floor through
2011; extended payment for the technical component of certain
physician pathology services in Medicare through 2011; extended
the exceptions process for Medicare therapy caps through 2011;
extended Medicare add-on payments for ambulances through 2011;
extended Medicare physician fee schedule mental health services
add-on payments through 2011; extended the outpatient hospital
hold harmless provision through 2011; and, extended the
Qualified Individual program through 2011.
Additional provisions in this law made technical
corrections and other revisions to programs under the
jurisdiction of the Committee on Ways and Means. These
provisions included: a clarification of the effective date of a
Medicare Part B Special Enrollment Period for disabled TRICARE
beneficiaries; a repeal of a provision from PPACA that delayed
the implementation of the RUG-IV payment system for Skilled
Nursing Facilities in Medicare; an appropriation of additional
funds to the Centers for Medicare and Medicaid Services for
claims reprocessing; a reduction in the amount available for
expenditure in the Medicare Improvement Fund in FY2015 and
changes to the limit on the amount recovered from eligible
taxpayers who receive advance payment of premium assistance tax
credits for the purchase of qualified health plans in an
exchange in the event that a taxpayer's income increases over
the course of a year.
N. Omnibus Trade Act of 2010
On December 29, 2010, the Omnibus Trade Act of 2010 was
signed into law. As of the printing of this report, the
legislation had not been assigned a Public Law number. The law
contained a handful of health-related provisions. The health
provisions were part of a six week extension (until February
12, 2011) of Trade Adjustment Assistance (TAA). Specifically,
health provisions in this legislation extended all of the
amendments and improvements to the Health Coverage Tax Credit
(HCTC) that were enacted in the American Recovery and
Reinvestment Act (ARRA), which are described in the ARRA
section of this report.
2. OTHER HEALTH MATTERS
a. Subcommittee on Health hearings
i. MedPAC's Annual March Report on Medicare Payment
Policies
On March 17, 2009, the Subcommittee on Health held a
hearing to receive testimony from the Medicare Payment Advisory
Commission (MedPAC) regarding their annual recommendations for
Medicare payment policies.
ii. Reducing Fraud, Waste and Abuse in Medicare
On June 15, 2010, the Subcommittee on Health held a hearing
to receive testimony from Members of Congress and
representatives from the Centers for Medicare and Medicaid
Services, the Office of the Inspector General of HHS, the
Government Accountability Office and the Department of Justice
on the prevention, detection, investigation and prosecution of
Medicare fraud, waste, and abuse.
iii. Efforts to Promote the Adoption and Meaningful Use of
Health Information Technology
On July 20, 2010, the Subcommittee on Health held a hearing
to receive testimony from the Centers for Medicare and Medicaid
Services, the Office of the National Coordinator for Health
Information Technology, stakeholders and beneficiary advocates
on efforts to promote the adoption of health information
technology, specifically through Medicare incentives designed
to encourage the meaningful use of electronic health records.
b. Full Committee hearings on health
i. Health Reform in the 21st Century: Expanding Coverage,
Improving Quality and Controlling Costs
On March 11, 2009, the Committee on Ways and Means held a
hearing to receive testimony from policy experts and
stakeholders on the need for comprehensive health reform and
key features of a reformed health system.
ii. Health Reform in the 21st Century: Reforming the Health
Care Delivery System
On April 1, 2009, the Committee on Ways and Means held a
hearing to receive testimony from the Medicare Payment Advisory
Commission, policy experts, stakeholders and provider
representatives on policies to modernize the health care
delivery system.
iii. Health Reform in the 21st Century: Insurance Market
Reforms
On April 22, 2009, the Committee on Ways and Means held a
hearing to receive testimony from policy experts and
stakeholders on strategies to reform the health insurance
market to ensure greater accessibility and affordability.
iv. Health Reform in the 21st Century: Employer Sponsored
Insurance
On April 29, 2010, the Committee on Ways and Means held a
hearing to receive testimony from policy experts and business
owners on trends in employer-sponsored health insurance and
strategies to strengthen and build upon job-based coverage.
v. Health Reform in the 21st Century: A Conversation with
Health and Human Services Secretary Kathleen
Sebelius
On May 6, 2009, the Committee on Ways and Means held a
hearing to receive testimony from Health and Human Services
Secretary Kathleen Sebelius on the President's principles for
health reform.
vi. Health Reform in the 21st Century: Proposals to Reform
the Health System
On June 24, 2009, the Committee on Ways and Means held a
hearing to receive testimony from policy experts, stakeholders,
provider representatives, and beneficiary advocates on the
health reform proposal developed by the Committees on Ways and
Means, Energy and Commerce, and Education and Labor and other
proposals to reform the health system.
D. Legislative Review of Social Security Issues
Hearings
A. SUBCOMMITTEE ON SOCIAL SECURITY HEARINGS
a. Actions Taken: The Subcommittee on Social Security held
eight oversight hearings in the 111th Congress. These hearings
include:
1. Joint Hearing on Eliminating the Social Security
Disability Backlog--On Tuesday, March 24, 2009, the
Subcommittee on Social Security and the Subcommittee on Income
Security and Family Support held a hearing focused on the
Social Security Administration's (SSA's) large backlog in
disability claims. The Subcommittees examined the impact of the
backlog on applicants with severe disabilities and SSA's plans
for eliminating the backlog, including how the agency intended
to use the additional funding that Congress provided for Fiscal
Year 2009. The hearing also examined the impact of resource
shortages on other agency responsibilities, including SSA's
substantial backlog in program integrity activities, and SSA's
plans for addressing these challenges. The hearing also
provided an opportunity for comment on legislative proposals or
expiring provisions relating to disability determination.
2. Hearing on the Social Security Administration's
Provisions in the American Recovery and Reinvestment Act of
2009--On Tuesday, April 28, 2009, the Subcommittee on Social
Security held an oversight hearing on the progress made by SSA
in implementing the American Recovery and Reinvestment Act of
2009 (ARRA, Pub. L. 111-5). The hearing focused on oversight of
actions taken by SSA and other involved agencies in using ARRA
resources to replace the National Computer Center; SSA's use of
ARRA funding to process recession-driven claims; and the
agency's plans for distributing the $250 economic recovery
payments to over 50 million recipients.
3. Hearing on the Social Security Administration's
Employment Support Programs for Disability Beneficiaries--On
Tuesday, May 19, 2009, the Subcommittee on Social Security held
a hearing on SSA's employment support programs for disability
beneficiaries, including the Ticket to Work Program. This
hearing assessed the impact of SSA's recent efforts to improve
the Ticket to Work program. The hearing also examined the
implementation and effectiveness of the Work Incentives
Planning and Assistance (WIPA) and the Protection and Advocacy
for Beneficiaries of Social Security (PABSS) programs; delays
in processing reports of earnings by disability beneficiaries,
and SSA's plan to strengthen its demonstration authority.
4. Hearing on Clearing the Disability Claims Backlogs: The
Social Security Administration's Progress and New Challenges
Arising From the Recession--On Thursday, November 19, 2009, the
Subcommittee held a hearing focused on the effect of SSA's
unprecedented backlog in disability claims on applicants with
disabilities, and the agency's efforts to address these
challenges, including SSA's recent progress in reducing its
hearing backlog and its plans for addressing the emerging
backlog at Disability Determination Services. The hearing also
examined the impact of the recession on disability claims
processing, including projected claims increases, and the need
for adequate resources to reduce the backlogs and adjudicate
recession-driven claims.
5. Joint Oversight Hearing on the Recovery Act Project to
Replace the Social Security Administration's National Computer
Center--On Tuesday, December 15, 2009, the Subcommittee held a
joint oversight hearing with the House Committee on
Transportation and Infrastructure Subcommittee on Economic
Development, Public Buildings, and Emergency Management on the
progress made to replace SSA's National Computer Center. ARRA
provided $500 million for SSA to begin the process of replacing
its national computer processing and data storage facility, the
National Computer Center (NCC), an amount expected to cover the
cost of building a new facility and part of the cost of
equipping it. The replacement of the NCC is the single largest
building project funded under the Recovery Act. The hearing
focused on SSA's and U.S. General Services Administration's
(GSA) progress to date utilizing ARRA resources to replace the
NCC, including the development of requirements for the new
center and the process and criteria used to select the site for
the new center. The hearing also evaluated SSA's and GSA's
management of the potential for unexpected cost and delay.
Finally, the hearing examined SSA's preparedness in case of
catastrophic failure of the existing NCC, including the role
and operational capacity of the recently completed backup data
support center in North Carolina.
6. Oversight Hearing on Social Security Administration
Field Office Service Delivery--On Thursday, April 15, 2010, the
Subcommittee held an oversight hearing on SSA's ability to meet
its growing workloads and serve the public through its field
offices, teleservice centers, and on the Internet; and how
those challenges are being managed. The hearing focused on
SSA's service delivery challenges arising from the increase in
benefit applications due to the recession, an aging society,
and prior underfunding; and how SSA planned for and managed
these challenges.
7. Joint Hearing on the Social Security Disability Claims
Backlogs--On Tuesday, April 27, 2010, the Subcommittee on
Social Security and the Subcommittee on Income Security and
Family Support held a joint hearing to assess SSA's plan to
eliminate the backlog of disability hearings by the end of FY
2013 and the advantages and disadvantages of the plan's
initiatives. The hearing also examined the rapidly growing
backlog at the initial claims level, SSA's plan for addressing
this backlog, and the impact of SSA's plan to reinstate the
reconsideration level of appeal in Michigan and other states
that did not currently have this appeal stage.
8. Hearing on Social Security at 75 years: More Necessary
Now than Ever--On Thursday, July 15, 2010, the Subcommittee
held a hearing on the continued importance of Social Security
for seniors, survivors, and persons with disabilities and their
families as the program approaches its 75th anniversary. The
hearing focused on the essential role Social Security plays in
the well-being of American workers and their families as they
face retirement, disability or death of a bread-winner, both
now and in the future.
Legislation
B. BILLS ENACTED INTO LAW DURING THE 111TH CONGRESS
1. H.R. 1, the ``American Recovery and Reinvestment Act of
2009''--In February 2009, Congress passed and the President
signed H.R. 1, the ``American Recovery and Reinvestment Act of
2009'' (ARRA), landmark legislation designed to create jobs,
promote economic recovery, assist people most impacted by the
recession, and make investments in infrastructure and
technology to increase economic efficiency and provide long-
term economic benefits. The legislation included over $500
million in funding for SSA's National Computer Center
replacement project as well as $500 million in emergency
administrative funding to cover the increased costs of
processing a surge in retirement and disability benefit claims
during the recession. In addition, the ARRA provided for a one-
time $250 payment to certain individuals who receive Social
Security, Supplemental Security Income (SSI), Railroad
Retirement and Veterans benefits.
This legislation was introduced January 26, 2009, by Rep.
David R. Obey, Chairman of the House Appropriations Committee.
On January 28, 2009, this bill passed the House by 244 yeas and
188 nays (Roll no. 46). The bill was amended and passed in the
Senate on February 10, 2009 by a vote of 61 yeas and 37 nays
(Record Vote Number: 61). After resolving differences in
Conference (Conference report H. Rept. 111-16), both the House
and Senate passed the legislation on February 13, 2009 by votes
of 246 yeas, 183 nays, and one present (Roll no. 70) and 60
yeas and 38 nays (Record Vote Number: 64) respectively. On
February 17, 2009 the bill became Public Law No: 111-5.
2. H.R. 3325, the ``WIPA and PABSS Reauthorization Act of
2009'' and H.R. 6200, the ``WIPA aud PABSS Extension Act of
2010''--On July 24, 2009, Subcommittee on Social Security
Chairman John S. Tanner and Ranking Member Sam Johnson, and
Income Security and Family Support Chairman Jim McDermott,
introduced H.R. 3325 the ``WIPA and PABSS Reauthorization Act
of 2009'' to extend for one year two SSA programs, the Work
Incentives Planning and Assistance (WIPA) and the Protection
and Advocacy for Beneficiaries of Social Security (PABSS)
programs, that help those receiving Social Security and
Supplemental Security Income disability benefits return to
work. The WIPA program allows disability beneficiaries to get
one-on-one assistance from community organizations to help them
understand Social Security's complex rules and the effect that
working will have on their benefits. The PABSS program provides
legal advocacy services to help beneficiaries get a job or keep
their job. Without action, the programs would have expired at
the end of September 2009.
On July 28, 2009, using a motion to suspend the rules and
pass the bill, the House agreed to pass H.R. 3325 by voice
vote. The Senate also passed H.R. 3325 without amendment by
Unanimous Consent on August 6, 2009. On September 18, 2009,
H.R. 3325 was signed by the President and became Public Law No:
111-63.
A year later, the provisions were set to expire again. On
September 23, 2010, Subcommittee on Social Security Chairman
Earl Pomeroy and Ranking Member Sam Johnson, and Income
Security and Family Support Chairman Jim McDermott, introduced
H.R. 6200, the WIPA and PABSS Extension Act of 2010. On
September 28, 2010, under suspension of the rules, H.R. 6200
passed the House by voice vote. On September 29, 2010, the
Senate passed the bill without amendment by Unanimous Consent.
On October 13, 2010, the bill was signed by the President and
became Public Law No: 111-280. H.R. 6200 provided for another
one year reauthorization of these two programs. Minor
conforming changes were included in this extension to limit
carry-over of unspent funds.
Neither bill increases direct spending, but both allowed
SSA to continue to spend up to $30 million of its discretionary
budget on WIPA and PABSS.
3. H.R. 4218, the ``No Social Security Benefits for
Prisoners Act of 2009''--On December 8, 2009, Subcommittee on
Social Security Chairman Tanner and Ranking Member Sam Johnson
again joined to introduce H.R. 4218, the ``No Social Security
Benefits for Prisoners Act of 2009.'' A week later, on December
12, 2009, Congress enacted H.R. 4218, the ``No Social Security
Benefits for Prisoners Act of 2009'' and it became Public Law
111-115. This law prevented the Social Security Administration
and Department of Treasury from issuing retroactive Social
Security and Supplemental Security Income benefit payments to
individuals while they are in prison, along with beneficiaries
in violation of conditions of parole or probation, or who are
fleeing to avoid prosecution for a felony or a crime punishable
by sentence of more than one year. The Social Security Act
already barred payment of monthly benefits to such individuals,
but did not include a provision barring retroactive benefits.
4. H.R. 4532, the ``Social Security Disability Applicants'
Access to Professional Representation Act of 2010''--The
``Social Security Disability Applicants' Access to Professional
Representation Act of 2010'' was introduced by the Subcommittee
on Social Security Chairman, John S. Tanner and Ranking Member
Sam Johnson, along with the Subcommittee on Income Security and
Family Support Chairman, Jim McDermott and Ranking Member John
Linder on January 27, 2010. This bipartisan legislation amended
the Social Security Protection Act of 2004 to provide for
permanent extension of the attorney fee withholding
demonstration program under title II (Old Age, Survivors and
Disability Insurance) and title XVI (Supplemental Security
Income) of the Social Security Act. This program ensures that
applicants are able to receive assistance from professional
representatives if they need it to help navigate the disability
benefit application process. Without passage of this
legislation, the program would have expired on March 1, 2010.
H.R. 4532 would save approximately $3 million in FY 2010 and
$55 million over 10 years due to user fees paid by the
representatives who participate.
When it reached the House floor the bill had 10 bipartisan
cosponsors. H.R. 4532 passed on February 4, 2010, on a motion
to suspend the rules and pass the bill with 412 yeas and 6 nays
(Roll no. 47).
On February 22, 2010, the Senate passed H.R. 4532 without
amendment by Unanimous Consent. On February 27, 2010, the bill
was signed by the President becoming Public Law No: 111-142.
5. H.R. 5854, the ``No Prisoner Access to Social Security
Numbers Act of 2010''--The Social Security Administration
Office of Inspector General (OIG) investigated correctional
institution industry practices and potential risks associated
with allowing prisoners access to Social Security Numbers
(SSNs) in several reports. In a 2006 report, the OIG found 13
states had allowed prison inmates to perform work that allowed
them access to personally identifiable information, including
SSNs. SSA responded by contacting the state governments and
advising them of the dangers of this practice. In response,
five states stopped this work. However, a more recent audit
(Prisoners' Access to Social Security Numbers (A-08-10-11042)
issued March 12, 2010,) found that eight states continue to
allow access to SSN information by inmates while in prison or
in work release programs. The states are Alabama, Arkansas,
Kansas, Nebraska, Oklahoma, South Dakota, Tennessee, and West
Virginia. Some of these states instituted limited safeguards to
keep prisoners from stealing the information, but the OIG's
audit found these protections generally insufficient. SSA and
the OIG agreed that legislation to ban this practice altogether
was warranted.
On July 26, 2010, Subcommittee on Social Security Chairman
Earl Pomeroy introduced H.R. 5854, the ``No Prisoner Access to
Social Security Numbers Act of 2010.'' The purpose is to
protect the integrity of the Social Security program by helping
prevent identity theft. The bill would prohibit states and
local governments from using prison inmates to process data or
perform any other work that allows them to have access to
Social Security numbers. The Congressional Budget Office (CBO)
estimated that the bill will have minimal costs on the states
that currently rely on prison labor, but not enough to trigger
the Unfunded Mandates Reform Act threshold of $70 million. H.R.
5854 was introduced with fourteen bipartisan cosponsors, all
members of the Subcommittee on Social Security.
On September 28, 2010, by Unanimous Consent the Senate
passed S. 3789, the ``Social Security Number Protection Act of
2010,'' a bill introduced by Senator Dianne Feinstein which was
similar in content to H.R. 5854. This legislation prohibits
federal, state, or local agencies from: (1) displaying the
Social Security account number of any individual, or any
derivative of such number, on any check issued for any payment
by the agency; or (2) employing, or entering into a contract
for the use or employment of, prisoners in any capacity that
would allow them access to the Social Security account numbers
of other individuals.
On December 8, 2010, Subcommittee on Social Security
Chairman Pomeroy moved to suspend the rules and pass S. 3789 as
agreed to in the Senate. The House passed the legislation by
voice vote.
C. OTHER PROPOSALS DURING THE 111TH CONGRESS
1. H.R. 3306, the Social Security Number Privacy and
Identity Theft Prevention Act of 2009--On July 23, 2009, Social
Security Subcommittee Chairman John Tanner and Ranking Member
Sam Johnson introduced H.R. 3306, the ``Social Security Number
Privacy and Identity Theft Prevention Act of 2009,'' in order
to amend the Social Security Act to enhance Social Security
account number privacy protections, to prevent fraudulent use
of the Social Security account number (SSN), and to otherwise
enhance protection against identity theft, and for other
purposes.
To increase the privacy of individual SSNs and to prevent
identity theft, the bill would restrict the sale, purchase, and
public display of SSNs. In order to balance between legitimate
uses and the need for stronger privacy protections, appropriate
exceptions were included for law enforcement (including child
support enforcement); national security; public health; health
or safety emergency situations; tax purposes; to ensure the
accuracy of credit and insurance underwriting information and
certain other Fair Credit Reporting Act purposes; if incidental
to the sale, lease or merger of a business; to administer
employee or government benefits; for some research; or with the
individual's affirmative, written consent.
H.R. 3306 would prohibit Federal, State, and local
governments from: (1) Selling SSNs (2) Displaying SSNs to the
general public, including on the Internet (3) Displaying SSNs
on checks issued for payment and accompanying documents (4)
Displaying SSNs on identification cards and tags issued to
employees or their families, e.g., Defense Department IDs; to
patients and students at public institutions; and on Medicare
insurance cards (5) Employing prisoners in jobs that provide
them with access to SSNs and (6) Requiring the transmission of
SSNs over the Internet without encryption or other security
measures.
The private sector would be prohibited from: (1) Selling or
purchasing SSNs, with some exceptions permitted for other
purposes by regulation (2) Displaying SSNs to the general
public, including on the Internet (3) Displaying SSNs on checks
(4) Requiring the transmission of SSNs over the Internet
without encryption or other security measures (5) Making
unnecessary disclosures of another individual's SSN to
government agencies (6) Displaying the SSN on cards or tags
issued to employees, their family members, or other individuals
and (7) Displaying the SSN on cards or tags issued to access
goods, services, or benefits.
The public and private sector would be required to
safeguard SSNs they have in their possession from unauthorized
access by employees or others and this legislation also
included provisions to enhance civil and criminal penalties for
misuse of the SSN, increase enforcement authority, and require
a study on misuse of SSN for authentication.
This legislation was identical to legislation reported
unanimously by the Committee on Ways and Means in the 110th
Congress (H.R. 3046) and had along history of bipartisan
support. Earlier versions were sponsored in prior congresses by
the Chairmen and Ranking Members of the Subcommittee since the
106th Congress. The Committee did not act on the bill.
2. H.R. 5987, the ``Seniors Protection Act''--As a result
of economic conditions, 2011 will be the second consecutive
year that Social Security beneficiaries, veterans, and people
with disabilities will see no automatic increase in their
monthly Social Security, SSI, VA Pension and Compensation, and
Railroad Retirement benefits. In 2009 and 2010, the formula
used to calculate Cost of Living Adjustments (COLAs) showed no
increase and therefore, no COLA is payable in 2011.
On July 30, 2010, Social Security Subcommittee Chairman
Earl Pomeroy introduced H.R. 5987, the ``Seniors Protection
Act,'' a bill to provide a one-time $250 payment to recipients
of Social Security, Supplemental Security Income, Veteran
Affairs pensions and compensation, and Railroad Retirement
benefits.
Several Members of Congress proposed a one-time $250
payment to seniors during the 111th Congress, which would
represent less than two percent of the average annual Social
Security retirement benefit. The President also has called for
relief, and included a $250 payment in both his FY 2010 and FY
2011 budgets. On December 8, 2010, H.R. 5987 had 158
cosponsors, when Subcommittee on Social Security Chairman
Pomeroy moved to suspend the rules and pass the bill, as
amended with technical corrections. The legislation failed to
meet the required \2/3\ majority by a vote of 254 yeas and 153
nays (Roll no. 611).
E. Legislative Review of Income Security and Family Support Issues
1. UNEMPLOYMENT INSURANCE
On January 22, 2009, the Ways and Means Committee held a
markup of H.R. 598, which was subsequently titled the
``American Recovery and Reinvestment Act (ARRA).'' The Recovery
Act, which included numerous unemployment insurance provisions,
was passed by the House on February 13, 2009, and signed into
law by President Obama on February 17, 2009 (P.L. 111-5).
The ARRA continued through 2009 the Emergency Unemployment
Compensation (EUC) program, which at that point provided up to
33 weeks of federally-funded extended unemployment benefits.
The law also temporarily provided full Federal funding for
additional benefits in high unemployment States through the
permanent-law Extended Benefits (EB) program. Additionally, for
the first time ever, the measure temporarily provided Federal
funds to increase unemployment benefits by $25 a week. The
legislation also increased administrative funding for
processing unemployment claims, temporarily suspended taxes on
unemployment insurance (UI) benefits (up to $2,400 per year)
and waived interest payments through 2010 for State UI programs
requiring Federal loans.
Finally, the new law provided up to a total of $7 billion
in UI Modernization Incentive Payments for States that have or
put in place specific reforms designed to increase access to UI
benefits for jobless workers. More specifically, the provision
offers incentive funds for States to enact reforms designed to:
1. count workers' most recent quarterly wages when
determining UI eligibility;
2. provide UI benefits to individuals seeking part-
time work when their eligibility for benefits is based
predominantly on part-time employment;
3. allow separations from work for certain compelling
family reasons;
4. provide extended benefits during approved training
for high-demand employment;
5. and provide weekly dependents allowances.
On April 23, 2009, the Subcommittee on Income Security and
Family Support held a hearing on Implementation of Unemployment
Insurance Provisions in the Recovery Act, with a focus on the
unemployment insurance modernization, augmentation, and
extension provisions in the Recovery Act.
On September 10, 2009, Subcommittee Chairman McDermott
introduced the Unemployment Compensation Extension Act of 2009
(H.R. 3548), which initially proposed a third tier within the
EUC program of up to 13 weeks of UI benefits for workers in
States with high unemployment rates. Ultimately, a version of
this bill provided 14 more weeks of UI benefits in all States
and up to another 6 weeks for workers in States with the
highest unemployment rates. This language became law as part of
the Worker, Homeownership, and Business Assistance Act of 2009
(H.R. 3548). This Act was passed by the Senate on November 4,
2009, passed by the House on November 5, 2009, and signed by
the President on November 6, 2009 (P.L. 111-92).
Short-term extensions of the EUC, EB, and FAC provisions
were enacted in the Department of Defense Appropriations Act,
2010 (H.R. 3326); the Temporary Extension Act of 2010 (H.R.
4691); and the Continuing Extension Act of 2010 (H.R. 4851).
On October 8, 2009, the Subcommittee on Income Security and
Family Support held a hearing on the ``Safety Net's'' Response
to the Recession, which evaluated the response of safety net
programs, including unemployment insurance, to the recession.
On June 10, 2010, the Subcommittee on Income Security and
Family Support held a hearing on Responding to Long-Term
Unemployment, with a focus on Federal policy responses to
growing long-term unemployment.
On June 28, 2010, Subcommittee Chairman McDermott
introduced the Restoration of Emergency Unemployment
Compensation Act of 2010 (H.R. 5618), which would have extended
the EUC program and full Federal funding for the EB program
through November 2010, as well as limit disincentives to part-
time work by UI beneficiaries. A version of this bill passed as
the Unemployment Compensation Extension Act (H.R. 4213). This
Act was passed by the Senate on July 21, 2010, passed by the
House on July 22, 2010, and signed by the President on July 22,
2010 (P.L. 111-205).
On December 16, 2010, the House passed and sent to the
President the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010, which included
an extension of the EUC program and 100 percent Federal funding
for the EB program through calendar year 2011. The legislation
also would allow States to look back to the previous three
years (rather than the prior two years) in order to meet an EB
program requirement that a State's unemployment rate be higher
than in the past. Additionally, the legislation continues for
one year an extended unemployment benefits program for railroad
workers.
As of September 30, 2010, the Department of Labor estimates
that 13.5 million individuals received a total of $106.2
billion in EUC benefits. In addition, $12.2 billion in EB
payments and $18.2 billion in Federal Additional Compensation
(the extra $25 per week) were provided. Finally, 39 States
received UI Modernization Incentive Payments for either
enacting or already having specific provisions in State law to
improve UI coverage for jobless workers.
2. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
As marked up by the Committee and as signed into law, the
American Recovery and Reinvestment Act (P.L. 111-5) included an
Emergency Contingency Fund to help States with increasing
expenditures on: basic assistance for families in the Temporary
Assistance for Needy Families (TANF) program; short-term, one-
time aid for needy families; and subsidized employment programs
(such programs temporarily pay for all or part of the wages of
a worker in a public or private job). This fund provided 80
percent Federal matching funds for such purposes with three
limitations. The overall fund was capped at $5 billion, no
State's total allocation from both the Emergency Fund and from
a permanent-law contingency fund under the TANF program could
exceed 50% of its annual TANF grant amount, and the fund
expired on September 30, 2010.
In addition, the Recovery Act provided a hold harmless for
the caseload reduction credit under the TANF program through FY
2011 that permits States to maintain the credit provided in
either FY 2007 or FY 2008.
The Subcommittee conducted two hearings that assessed the
impact of the Emergency Contingency Fund in assisting families
who were adversely affected by the recession, including a
hearing on the safety net's response to the recession on
October 8, 2009 and a hearing on TANF's role in providing
assistance to struggling families on March 11, 2010. Testimony
from these hearings, as well as subsequent information,
indicated that about three-quarters of the States used a
portion of this funding to create roughly 250,000 jobs through
subsidized employment programs, which temporarily provide
partial or full wage subsidies to employers hiring TANF
recipients and other unemployed individuals.
On February 2, 2010, Subcommittee Chairman McDermott
introduced the Jobs Program and Assistance for Families Act
(H.R. 4564), to extend the Emergency Fund through FY 2011. A
version of this proposal to extend the fund was included in two
bills passed by the House: the Small Business and
Infrastructure Jobs Tax Act (H.R. 4849); and the American Jobs
and Closing Tax Loopholes Act (H.R. 4213).
On September 30, 2010, the House passed H.R. 3081 to
temporarily continue funding for various programs. The bill was
signed into law as P.L. 111-242. This legislation continued
funding for the basic TANF program and a variety of related
programs (but not including the TANF Emergency Contingency
Fund) through December 3, 2010. Subsequent legislation (the
Claims Act Resolution Act, P.L. 111-291) further extended the
TANF program through the end of FY 2011, as well as made other
changes involving marriage funding and data reporting
requirements.
3. HOME VISITATION PROGRAM
On June 2, 2009, the Early Support for Families Act (H.R.
2667) was introduced by Income Security and Family Support
Subcommittee Chairman Jim McDermott and Subcommittee Member
Danny Davis. The legislation would have established dedicated
Federal funding to support the creation and expansion of
voluntary home visitation programs for pregnant women and
families with pre-school aged children.
The objective of the legislation was to encourage and
support programs designed to enhance the well-being and
development of young children by providing: information on
child health, development, and care; parental support and
training; and referral to other services. Programs providing
home visits conducted by nurses, social workers, other
professionals or para-professionals and that are proven to be
effective would have been eligible for Federal support under
the bill.
On June 9, 2009, the Subcommittee on Income Security and
Family Support field a hearing to review proposals to provide
Federal funding for early childhood home visitation programs,
including H.R. 2667.
On July 16, 2009, the Committee on Ways and Means held a
mark up on H.R. 3200, the America's Affordable Health Choices
Act of 2009, which included a modified version of H.R. 2667.
On March 23, 2010, the Patient Protection and Affordable
Care Act (P.L. 111-148) was signed into law by President Obama.
The landmark health care reform legislation included language
similar to H.R. 2667 to provide Federal funding ($1.5 billion
over five years) for States and tribes to establish and expand
voluntary home visitation programs.
4. POVERTY MEASUREMENT
On July 17, 2008, the Subcommittee on Income Security and
Family Support held a hearing on Establishing a Modern Poverty
Measure, which focused on considering proposals to improve and
update the current poverty measure.
On June 17, 2009, Subcommittee Chairman Jim McDermott
introduced the Measuring American Poverty Act of 2009 (H.R.
2909), which largely followed the recommendations of the
National Academy of Sciences (NAS) to improve and update the
current poverty measurement. The bill became the basis for
technical recommendations later developed by the Obama
Administration for a new Supplemental Poverty Measure.
5. CHILD SUPPORT ENFORCEMENT
Subcommittee Chairman McDermott introduced legislation in
the 110th Congress to repeal a provision of the Deficit
Reduction Act (DRA) of 2005 which had the effect of reducing
Federal funding for child support enforcement. (Starting in FY
2008, the DRA eliminated Federal matching payments for child
support incentive funding used to collect child support.)
As marked up by the Committee on Ways and Means on January
22, 2009 and as signed into law by the President on February
17, 2009, the Recovery Act (P.L. 111-5) temporarily suspended
this DRA child support provision for FY 2009 and FY 2010.
6. SUPPLEMENTAL SECURITY INCOME (SSI)
One-Time payments to SSI recipients--
The American Recovery and Reinvestment Act (P.L. 111-5)
included a one-time economic recovery payment of $250 to all
Supplemental Security Income (SSI) recipients, adult Social
Security beneficiaries, adult Railroad Retirement and
disability beneficiaries, and veterans compensation and pension
beneficiaries.
To be eligible to receive the one-time economic recovery
payment, an SSI recipient must have been entitled to a cash
benefit (other than a personal needs allowance) under the
program for at least one month during November or December 2008
or January 2009. Individuals whose SSI or Social Security
benefits were suspended because of their status as a prisoner,
public institution inmate, parole or probation violator,
fugitive, or illegal alien or if their benefits have been
suspended because of fraud were ineligible for the payment.
Nearly 55 million economic recovery payments, totaling more
than $13.6 billion, were issued by the Social Security
Administration, Department of Veterans Affairs; and the
Railroad Retirement Board.
Improving access to clinical trials for certain SSI recipients--
On September 23, 2010 the House passed by voice vote the
Improving Access to Clinical Trials Act of 2010 (S. 1674). The
legislation passed the Senate on August 5, 2010 by unanimous
consent. President Obama signed the bill into law on October 5,
2010 as P.L. 111-255.
The Improving Access to Clinical Trials Act allows
Supplemental Security Income (SSI) recipients with rare
diseases or conditions (defined as a disease affecting no more
than 200,000 people) to participate in clinical research trials
reviewed and approved by an institutional review board that
protects the rights and welfare of human subjects, while
excluding the first $2000 received as compensation or for
reimbursement of out-of-pocket expenses from the income and
asset limits in the SSI program. It also excludes such
compensation from the eligibility test in the Medicaid program.
7. CHILD WELFARE
FMAP Increase for Child Welfare Programs--
The American Recovery and Reinvestment Act (P.L. 111-5)
temporarily increased the Federal matching rate for Title IV-E
foster care maintenance, adoption assistance, and kinship
guardianship assistance payments. The new legislation provided
a general 6.2 percentage point increase in each State's Federal
medical assistance percentage (FMAP) that applies from October
1, 2008 through December 2010. (The FMAP is the rate at which
States are reimbursed for most Medicaid service expenditures
and is also used in determining the Federal share of certain
other programs including foster care and adoption assistance
under Title IV-E of the Social Security Act). The Congressional
Budget Office (CBO) estimated that the temporary FMAP increase
would provide States with additional Federal child welfare
funding under the Title IV-E program of just over $1 billion,
which will primarily be received during FY2009 and FY2010.
On August 10, 2010, the FMAP increase was extended for an
additional six months as part of the FAA Airport Transportation
Modernization and Safety Improvement Act (H.R. 1586, enacted as
P.L. 111-226), but at a lower matching rate than that provided
under P.L. 111-5.
Renewal of the Title IV-E Child Welfare Demonstration Waivers--
On September 16, 2010, Income Security and Family Support
Subcommittee Chairman Jim McDermott and Ranking Member John
Linder introduced H.R. 6156, a bill to renew the authority of
the Department of Health and Human Services (HHS) to approve
demonstration projects designed to test innovative strategies
in State child welfare programs. The bill was introduced
following a Subcommittee hearing on July 29, 2010 that reviewed
State use of child welfare waiver demonstration projects to
promote child well-being. The legislation would allow HHS to
grant up to 10 demonstration projects annually to States and
tribes to demonstrate alternative approaches to achieve Federal
child welfare policy goals. The objective of these projects is
to test innovative strategies aimed at improving the outcomes
of children and families that are known to the foster care
system. The House of Representatives passed H.R. 6156 by voice
vote on September 23, 2010.
F. Legislative Review of Debt Issues
On February 12, 2009, the House agreed to the conference
report on H.R. 1, the American Recovery and Reinvestment Act of
2009, by a vote of 246 to 183. The Senate approved the
conference report on February 13, 2009. It raised the debt
limit by $796 billion, to $12.104 trillion. The President
signed the legislation into law on February 17, 2009 (P.L. 111-
5).
On December 16, 2009, the House passed H. Res. 976, a bill
to permit continued financing of government operations, by a
vote of 218 to 214. The Senate approved the resolution on
December 24, 2009. It raised the debt limit by $290 billion, to
$12.394 trillion. The President signed the legislation into law
on December 28, 2009 (P.L. 111-123).
On April 29, 2009, the House and Senate passed the
conference report on S. Con. Res. 13, the Concurrent Resolution
on the Budget for Fiscal Year 2010. The conference report (H.
Rept. 111-89) was agreed to by the House by a vote of 233-193,
and by the Senate by a vote of 53-43. As a result of the
adoption of the FY 2008 budget, H.J. Res. 45, a bill to
increase the statutory limit on the public debt, was deemed
passed in the House pursuant to House Rule XXVII. On January
28, 2010, the Senate passed H.J. Res. 45 by a vote of 60-39,
with amendments. On February 4, 2010, the House approved the
resolution by a vote of 233-187. The legislation included an
increase in the debt limit of $1.9 trillion, to $14.294
trillion. The resolution was signed into law by the President
on February 12, 2010 (P.L. 111-139).
II. OVERSIGHT REVIEW
A. Oversight Agenda
February 9, 2009.
Hon. Edolphus Towns,
Chairman, Committee on Oversight ` Government Reform, Rayburn House
Office Bldg., House of Representatives, Washington, DC.
Hon. Robert A. Brady,
Chairman, Committee on House Administration, Longworth House Office
Bldg., House of Representatives, Washington, DC.
Dear Chairman Towns and Chairman Brady: In accordance with
the requirements of clause 2 of rule X of the Rules of the
House of Representatives, the following is a list of hearings
and oversight-related activities that the Committee on Ways and
Means and its Subcommittees plan to conduct during the 111th
Congress.
FULL COMMITTEE
Economic Security and Federal Budget--
Economic and Budget Outlook. Oversight hearings
with various Administration officials to discuss current
economic and budget conditions, including the long-term
outlook, the state of the economy, prospects for recovery and
long-term growth, our economic competitiveness, and job
creation.
Priorities of the Office of Management and Budget.
Oversight hearings with the Office of Management and Budget
Director to discuss the overall state of the federal budget and
the Administration's priorities for the 111th Congress, and
consider budgetary proposals affecting the various programs
under the Committee's jurisdiction, including tax, health,
income security, Social Security, pensions, and trade-related
matters.
Tax Issues--
Priorities of the Department of the Treasury.
Oversight hearings with the Treasury Secretary to discuss
priorities for the 111th Congress. Specifically, discuss and
consider legislative and administrative proposals of the
President for 2009 and 2010.
Tax Relief for Individuals and Families. Oversight
hearings on tax relief for individual taxpayers and families,
including alternative minimum tax relief and child-related tax
benefits.
Tax Reform. Oversight hearings on simplifying and
reforming the tax code.
Climate Change. Oversight hearings on government
efforts to address climate change.
Energy. Oversight hearings on energy tax issues,
including incentives for alternative fuel production, energy
conservation, and increasing U.S. energy independence.
Housing. Oversight hearings on tax incentives for
moderately-priced housing, focusing on options for increasing
the supply of middle-income rental housing and home ownership.
Education. Oversight hearings on options to
simplify the current complex structure of education incentives
and tax benefits for higher education.
Retirement Savings and Secured Retirement.
Oversight hearings on increased decline in retirement savings,
low pension coverage in employer-sponsored plans, enhanced
disclosure of fees charged against pension plans, investment
advice for participating workers, and efforts to increase
retirement security for all American workers.
Health and Human Services Issues--
Priorities of the Department of Health and Human
Services. Oversight hearing with the Health and Human Services
Secretary to discuss priorities for the 111th Congress and
concerns related to the delivery of health services and
reimbursement under Medicare. Specifically, discuss and
consider health and human services-related legislative
proposals of the President for 2009 and 2010. Discuss the
reauthorization of the Temporary Assistance for Needy Families
(``TANF'') program.
Trade--
Priorities of the Office of the United States
Trade Representative. Oversight hearing with the United States
Trade Representative to discuss priorities for the 111th
Congress and concerns related to international trade.
Specifically, discuss and consider trade proposals of the
President for 2009 and 2010, including whether the USTR has
adequate resources to carry out its mandate with respect to
enforcing U.S. trade agreements.
The full Committee intends to conduct additional oversight
over the next two years, as becomes necessary to fulfill its
oversight responsibilities to the Congress and the American
people. The following is a list of further oversight hearings
and activities that the six subcommittees of the Committee on
Ways and Means (Oversight, Health, Income Security and Family
Support, Social Security, Trade, and Select Revenue Measures)
anticipate developing during the course of the 111th Congress.
SUBCOMMITTEE ON OVERSIGHT
Programs Within the Committee's Jurisdiction.
Oversight investigations and joint subcommittee hearings on
issues requiring periodic or timely oversight review, including
waste, fraud, and abuse identified by the U.S. Government
Accountability Office (``GAO'') and Inspector General reports
for Federal agencies administering programs within the
Committee's jurisdiction.
Internal Revenue Service Operations/Administration
of Tax Laws. Oversight of the major Internal Revenue Service
(``IRS'') programs, including enforcement, collection
(including private debt collection), taxpayer services, returns
processing, and information systems. Consider analyses and
reports provided to the Congress by the IRS National Taxpayer
Advocate, Treasury Inspector General for Tax Administration,
and the GAO. Oversight of IRS funding and staffing levels
needed to provide taxpayer assistance and enforce the tax laws
fairly, effectively, and efficiently. Evaluate tax return
filing seasons, including use of paid tax preparers, electronic
filing, IRS and volunteer taxpayer assistance programs, and the
Free File Program. Discuss proposed funding and staffing levels
for the IRS and legislative proposals of the President for 2009
and 2010. Review IRS realignment and closure of service centers
and other facilities.
Financially Distressed Taxpayers. Oversight of IRS
programs to assist taxpayers experiencing economic
difficulties.
Delivery of Tax Refunds. Explore options to
maximize and expedite the delivery of Federal tax refunds,
including the use of debit cards, prepaid cards, and other
electronic means to assist individuals who do not have access
to financial accounts or institutions.
Tax-Exempt Organizations. Oversight of Federal tax
laws, regulations, and filing requirements that affect tax-
exempt organizations, particularly charities and foundations.
Examine how the economic downturn has affected these
organizations and explore options to assist charities and
foundations. Evaluate overall IRS efforts to monitor tax-exempt
organizations, identify areas of non-compliance, prevent abuse,
and ensure timely disclosure to the public about tax-exempt
organization activities and finances.
Tax Code and Tax Form Simplification. Oversight of
tax code and tax form complexity, particularly for individuals,
with the goal of simplification. Review areas where taxpayers
and professional return preparers have difficulty, including
the most errors, and consider solutions. Evaluate
simplification of information returns to assist taxpayers in
determining taxable income.
Tax Gap. Oversight of the $345 billion annual tax
gap, the difference between taxes paid and taxes owed the
federal government. Consider the components of the tax gap,
causes of taxpayer non-compliance, and possible solutions.
Earned Income Tax Credit (``EITC''). Oversight of
IRS programs designed to provide tax assistance to more than 23
million low-income working taxpayers claiming the EITC.
Evaluate the participation rates and outreach needed to
increase the number of eligible workers who claim the credit.
Tax Scams. Oversight of the latest tax scams and
tax fraud activities with a goal of protecting taxpayers and
preventing identity theft.
Federal Excise Taxes. Oversight review of Federal
excise taxes, credits, and refunds, including the trust funds
financed by these taxes.
Pensions and Retirement Security. Oversight review
of the financial condition, operations, and governance of the
Pension Benefit Guaranty Corporation (``PBGC''), including
financial exposure to the PBGC in the pension insurance
programs.
SUBCOMMITTEE ON HEALTH
Medicare Part A and Part B (Fee-for-Service
Providers). Oversight of the major Medicare programs to ensure
efficient use of resources, quality, and access for Medicare
beneficiaries. Specific topics include: adequacy of provider
payments, program benefits and cost sharing; the relationship
between payment policy and workforce issues (future supply);
treatment of specific populations such as people with
disabilities and low-income beneficiaries; quality improvement
efforts; implementation of recent Medicare legislation; and
waste, fraud, and abuse activities.
Medicare Part C (Private Plans). Oversight of
private plans, including: enrollment; value and payments;
benefit packages and actuarial equivalence determinations;
administrative costs; quality; consumer protection; and
marketing and implementation of recent statutory changes
affecting private plans.
Medicare Part D (Prescription Drug Plans).
Oversight of the Medicare prescription drug program, including:
treatment of dual eligible beneficiaries, low-income subsidy
beneficiaries, and nursing home residents; drug pricing; and
beneficiary cost sharing, including specialty tiers, bidding
process, and premiums.
Medicare Entitlement. Oversight of the effect of
program changes on the Medicare Trust Funds, including payments
to private plans and Parts B and D premium levels.
CMS Administration. Oversight of CMS, including
the adequacy of its budget and staffing, contracting
activities, and general agency accountability.
Health Insurance Coverage. Oversight and review of
health coverage and the uninsured, including: children, early
retirees, and small business employees; adequacy of benefits;
COBRA; lack of coverage for various groups; prevalence and use
of health savings accounts, the value of accounts, and their
influence on broader health care systems and spending; and
options to expand and improve coverage and addressing rate of
increase in health care costs.
SUBCOMMITTEE ON INCOME SECURITY AND FAMILY SUPPORT
Vulnerable Populations and Poverty. Provide
oversight on the impact that the current recession is having on
vulnerable populations, especially those served by programs
within the Subcommittee's jurisdiction. Assess proposals that
would improve assistance to those most in need, and monitor
interventions enacted to achieve that goal. Evaluate the impact
of the recession on increasing poverty and consider possible
remedies.
Welfare Programs. Provide oversight of and
consider proposals to reauthorize the Temporary Assistance for
Needy Families (``TANF'') program. Examine barriers to
providing financial support and services to low-income families
with children. Assess how the TANF program addresses the needs
of adult beneficiaries who face barriers to employment. Review
the role that related programs, such as child care and child
support enforcement, play in facilitating economic opportunity
for low-income families. Evaluate how the changes in the
overall economy have affected the ability of TANF families to
achieve self-sufficiency.
Unemployment Compensation. Provide oversight of
the Nation's unemployment compensation system, with a
particular focus on providing federally-funded unemployment
benefits to long-term unemployed workers, as needed, during the
economic downturn. Review potential reforms within the
unemployment compensation system that would modernize the
program, including reducing the disparities in access to the
program for some dislocated workers. Evaluate proposals that
would increase economic security for dislocated workers and
address the new challenges facing American workers with respect
to the recession, changing workforce, and globalization.
At-Risk Children. Provide oversight of the
Nation's child welfare system, including foster care, adoption
assistance, and child and family programs under Title IVB of
the Social Security Act. Review State efforts to implement new
statutory and regulatory requirements under the Fostering
Connections to Success and Increasing Adoptions Act, including
providing assistance to relatives who become legal guardians of
children for whom they care for as foster parents, permitting
federal foster care assistance to continue up to age 21 for
eligible youth, improving the oversight of the health and
educational needs of foster children, and providing direct
federal foster care and adoption assistance to tribal
governments for children in their care. Review proposals
designed to improve the financing of child welfare programs to
ensure better outcomes for at-risk children and families.
Evaluate how States are responding to the increased need for
child welfare services that has occurred in some areas during
the current recession.
SUBCOMMITTEE ON SOCIAL SECURITY
General Oversight of Social Security. Oversight of
the importance of Social Security for American workers and
their families; the essential role it plays in assuring
economic security for retirees, disabled workers, and
survivors; and how best to manage the challenges and
opportunities presented by an aging society, given the central
role Social Security plays in income security, and the
importance of adopting a balanced approach to address those
challenges and opportunities that have the support of the
American people.
Social Security Administration (``SSA'').
Oversight of the administrative operations of the Social
Security Administration and the agency's stewardship of Social
Security programs and taxpayer funds. Among the various areas
to examine are SSA's plans to upgrade and modernize its
information technology infrastructure and systems architecture,
and monitoring their implementation.
Service Delivery. Oversight of the quality of
SSA's service to the public through its field offices,
telephone services, emerging Internet service delivery, and
administration of current benefit provisions. Examine the
impact of SSA initiatives to increase the percentage of claims
filed over the Internet and to increase automation of claims
adjudication, including the impact on accuracy, customer
service, and program integrity. Examine the growing demand on
SSA by other agencies and state governments for non-program-
related data matching arrangements, such as registered voter
Social Security Number verification and the Department of
Homeland Security's ``E-Verify'' program, and the impact of
these workloads on SSA's ability to perform its core mission.
Disability Claims Processing Backlogs. Oversight
of SSA's processing of disability determinations, including
SSA's current backlog of more than 1.3 million unprocessed
initial claims and appeals requests for disability benefits,
and the agency's substantial backlog of continuing disability
reviews. Monitor SSA's progress in addressing the disability
backlogs and assess the need for additional administrative
resources to reduce the backlogs while keeping up with
increases in claims. Examine SSA initiatives to modify the
disability determination and appeals processes to determine
their impact on claimants and on the quality and efficiency of
disability decisions.
Ticket to Work Program and Related Work
Incentives. Oversight of the implementation and effectiveness
of the Ticket to Work program and related Social Security work
incentive programs, policies, and demonstration projects.
Examine evaluation results from the initial implementation of
the Ticket to Work program and assess the effect of recent
regulatory reforms and outreach efforts on program
participation and effectiveness.
Protection of Social Security Beneficiaries from
Abusive Financial Practices. Oversight of whether and how SSA
and other federal agencies are enforcing provisions of the
Social Security Act prohibiting benefits from being assigned,
transferred, or otherwise diverted from the beneficiary in
order to collect a private debt or payment Examine whether non-
financial institutions are marketing abusive, high-fee
financial arrangements to vulnerable beneficiaries.
Social Security Number Protection. Oversight of
the problem of identity theft and misuse of the Social Security
number. Consider the role of the Social Security number, the
Social Security card, Social Security benefits, and SSA with
respect to immigration policy and enforcement.
SUBCOMMITTEE ON TRADE
Signed Free Trade Agreements (``FTAs'') with
Panama, Colombia, and South Korea. Oversight of the three
signed FTAs, with focus on issues that need to be addressed in
order for Congressional consideration, including, with respect
to the Colombia FTA, issues related to violence against workers
and other issues that inhibit the exercise of basic
internationally-recognized labor standards, and with respect to
the South Korea FTA, issues related to non-tariff market access
barriers in the manufacturing and agricultural areas.
Implemented FTAs. Oversight of implemented FTAs
involving Peru, Central America/the Dominican Republic
(``CAFTA-DR''), Oman, Bahrain, and earlier FTAs with Singapore,
Chile, Australia, Morocco, Jordan, the North American Free
Trade Agreement (``NAFTA''), and Israel.
Other FTA Negotiations. Oversight of uncompleted
FTA negotiations, including with Thailand, Malaysia, United
Arab Emirates, the South African Customs Union (``SACU''),
Ecuador, and proposed negotiations with the ``P-4'' countries
(Brunei, Chile, New Zealand, and Singapore).
Preference Programs. Oversight of major U.S. trade
preference programs such as the Generalized System of
Preferences (``GSP''), African Growth and Opportunity Act
(``AGOA''), Caribbean Basin Initiative (``CBI''), Andean Trade
Preference Act (``ATPA''), and Haitian Hemispheric Opportunity
Through Partnership Encouragement Act (``HOPE I'' and ``HOPE
II''). Evaluate efficacy of programs and options for long-term
renewal and reform.
Haiti. Oversight of U.S. preference program's for
Haiti (``HOPE I'' and ``HOPE II''). Evaluation of proposals to
assist Haiti's economic recovery.
World Trade Organization (``WTO'') Negotiations.
Oversight of U.S. goals in the areas of agriculture,
manufacturing, services, and trade remedy laws. Evaluation of
reasons for current impasse in WTO negotiations, and
consideration of proposals to break impasse and achieve
meaningful outcome in all areas.
WTO Dispute Settlement. Oversight of the WTO
dispute settlement system, including oversight of WTO decisions
involving U.S. trade remedy laws.
Enforcement. Oversight of U.S. enforcement of WTO
rights and rights under FTAs and other agreements. Evaluation
of proposals to strengthen U.S. trade remedy laws and improve
U.S. tools as leverage to open foreign markets and other areas.
Evaluation of proposals to strengthen border enforcement
related to counterfeit imports and import safety. Oversight of
administration by the Department of Commerce and U.S.
International Trade Commission of U.S. trade remedy laws and
USTR's role in enforcement.
China. Oversight of systemic problems in U.S.-
China trade relations, including issues related to China's
continued violation of U.S. intellectual property rights and
use of industrial subsidies, and China's alleged manipulation
of its currency, as well as other areas.
Europe. Oversight of the third largest bilateral
trade deficit of more than $100 billion in 2005, as well as
sectoral issues, such as Airbus subsidies, discriminatory
regulations in high technology transfer and sectors, attempts
at technology transfer, discriminatory barriers to U.S. farm
exports, European Union (``EU'') practices in the WTO
negotiations, and EU practices concerning regional trade
agreements.
Trade and Developing Countries. Oversight of U.S.
trade relations with developing countries, role of developing
countries in the WTO and world trading system, extent to which
developing countries have benefitted from the trading system
over the past 20 years and, in regard particularly with respect
to the least developed countries, why many of these countries
have lost ground over the last 20 years and what can be done in
the area of trade and aid to reverse this trend.
Globalization Adjustment Assistance. Examine
options to improve education, on-the-job training, trade
adjustment, and portable health care/pensions, including reform
and expansion of the Trade Adjustment Assistance programs for
Workers, Firms, and Farmers.
Climate Change. Evaluation of impact of mandatory
proposals to reduce U.S. greenhouse gas emissions, including
with respect to addressing carbon leakage, domestic and export
competitiveness concerns of carbon-intensive industries, and
issues related to consistency with international trade rules.
Priorities of U.S. Customs and Border Protection.
Oversight hearing with the Customs Commissioner to discuss
priorities of the 111th Congress and concerns related to
customs revenue functions and trade facilitation, including
enforcement of U.S. customs laws and regulations. Specifically,
discuss and consider proposals of the President for 2009 and
2010 and other proposals related to CBP's capacity and
resources, including personnel resources, to carry out its
mandate.
Miscellaneous Tariff Bill (``MTB''). Continue work
to complete in the 111th Congress the review of introduced
bills and preparation of an omnibus bill, begun in the 110th
Congress, in accordance with Committee guidelines and House
Rules.
Priorities of the United States International
Trade Commission. Oversight hearing to receive information from
the Commission concerning overall priorities and operations.
Specifically, discuss and consider trade proposals of the
President for 2009 and 2010 and inquire as to whether the
Commission has adequate resources and technical expertise to
carry out its mandate.
SUBCOMMITTEE ON SELECT REVENUE MEASURES
Various tax matters. Oversight of a variety of tax
issues and tax legislation, as directed by the Committee
Chairman.
This list is not intended to be exclusive. The Committee
anticipates that additional oversight hearings and activities
will be scheduled as issues arise and as time permits. Also,
the Committee's oversight priorities and particular concerns
may change as the 111th Congress progresses over the coming two
years.
Sincerely,
Charles B. Rangel,
Chairman.
B. Actions Taken and Recommendations Made With Request to Oversight
Plan
Subcommittee on Oversight
A. Subcommittee Hearings for 111th Congress
1. Internal Revenue Service Assistance for Taxpayers
Experiencing Economic Difficulties.
Actions taken: On February 26, 2009, the Oversight
Subcommittee conducted a hearing to review assistance available
from the Internal Revenue Service (IRS) to taxpayers
experiencing economic difficulties. The Subcommittee discussed
the IRS's announcement that its employees would have greater
flexibility to assist struggling taxpayers and may be able to
adjust payments for back taxes, expedite levy releases, or
postpone collections. Further, the Subcommittee discussed IRS
efforts to encourage taxpayers to take advantage of new and
existing credits (such as the first-time homebuyer credit),
deductions, and electronic filing options (such as Free File
Fillable Tax Forms) to maximize and expedite refunds. Testimony
was heard from the National Taxpayer Advocate (Taxpayer
Advocate), an independent official appointed to address
taxpayer problems, and the IRS Deputy Commissioner for Services
and Enforcement. The Taxpayer Advocate indicated that more
action may be warranted to address the problems of struggling
taxpayers and noted that the IRS is underutilizing collection
alternatives, particularly offers in compromise and partial pay
installment agreements. The Taxpayer Advocate also indicated
that determining the tax consequences of cancellation of debt
income is difficult for taxpayers. In May 2009, Oversight
Subcommittee Chairman Lewis and Ranking Member Boustany
introduced the Tax Compromise Improvement Act, H.R. 2343, to
repeal the requirement that taxpayers partially pay their tax
liability when submitting an application for an offer in
compromise. This bill also was included in H.R. 4994, the
Taxpayer Assistance Act of 2010, as passed by the House on
April 14, 2010. Further, on February 2, 2010, Oversight
Subcommittee Chairman Lewis introduced H.R. 4561 to allow a
limited exclusion from gross income for income resulting from
the discharge of qualified individual indebtedness.
2. Troubled Asset Relief Program: Oversight of Federal
Borrowing and the Use of Federal Monies.
Actions taken: On March 19, 2009, the Oversight
Subcommittee conducted a hearing on the Troubled Asset Relief
Program (TARP) and oversight of Federal borrowing and the use
of Federal monies. The hearing included a review of the role of
Federal borrowing, the impact of borrowing on the national
debt, and protection of public monies. The Subcommittee
considered the role of Federal tax compliance in this program
and found that thirteen TARP recipients owed over $220 million
in Federal taxes. Testimony was heard from the Special
Inspector General for the TARP (SIGTARP) on its oversight
activities of the program. Testimony was received from the
Acting Comptroller of the United States on its responsibility
for the financial audit of TARP and activities undertaken by
the U.S. Government Accountability Office (GAO) to increase
accountability and transparency. A bill (H.R. 1586) to impose
an additional tax on bonuses received from TARP recipients
passed the House on March 19, 2009.
3. Internal Revenue Service Operations and Fiscal Year 2010
Budget Proposals.
Actions taken: On June 4, 2009, the Oversight Subcommittee
conducted a hearing to review: the IRS fiscal year 2010 budget
request of $12 billion; IRS examination, collection, taxpayer
service, and other operations; and the current tax return
filing season. Testimony was heard from the IRS Commissioner on
efforts to ensure the competency of paid tax return preparers.
The Commissioner testified that the IRS continued its efforts
to find the appropriate balance between collecting revenue and
working with taxpayers who are facing economic difficulties.
The Subcommittee learned that inquiries related to the economic
stimulus payments resulted in 23 million telephone calls to the
IRS. The Subcommittee also learned that small businesses were
unexpectedly getting caught up in tax shelter penalties, in
certain cases in excess of $1 million, for engaging in ``listed
transactions.'' The Commissioner stated that the penalty needed
to be more reasonable. The Small Business Tax Relief Act, H.R.
4068, was introduced by Oversight Subcommittee Chairman Lewis
and Ranking Member Boustany in follow-up to the hearing to
address the tax shelter penalties imposed on small businesses.
This bill was included in H.R. 5297, the Small Business Jobs
Act of 2010, which was enacted into law on September 27, 2010
(Public Law No. 111-240).
4. Highway and Transit Investment Needs (Joint Hearing with
Select Revenue Measures Subcommittee).
Actions taken: On June 25, 2009, the Subcommittees on
Oversight and Select Revenue Measures conducted a joint hearing
to review highway and transit investment needs. Testimony was
heard from the Department of Transportation's Undersecretary of
Policy on the $5-$7 billion shortfall expected in the Highway
Trust Fund in September 2009: The Lieutenant Governor of
Massachusetts testified on the impact of decades of deferred
maintenance on the state's transportation infrastructure. The
Subcommittees also heard testimony from representatives of the
Metropolitan Atlanta Rapid Transit Authority, the U.S.
Government Accountability Office, the Information Technology
and Innovation Foundation, and the American Road and
Transportation Builders Association on infrastructure needs. On
July 28, 2009, Chairman Rangel introduced H.R. 3357, a bill to
restore $7 billion previously transferred from the trust fund
to the general fund, which was enacted into law on August 7,
2009 (Public Law No. 111-046). In addition, on May 13, 2009,
Oversight Chairman Lewis introduced H.R. 2391, the Highway
Trust Fund Fairness Act of 2009, to prevent transfers out of
the trust fund for repayment of refunds and credits and to
allow the trust fund balance to earn interest. This legislation
was incorporated into H.R. 2847, Hiring Incentives to Restore
Employment Act, which was enacted into law on March 18, 2010
(Public Law No. 111-147).
5. Administration of the First-Time Homebuyer Tax Credit.
Actions taken: On October 22, 2009, the Oversight
Subcommittee conducted a hearing on IRS administration of the
first-time homebuyer tax credit. The American Recovery and
Reinvestment Act of 2009 extended and expanded the 2008 first-
time homebuyer credit for homes purchased between January 1,
2009, and December 1, 2009. The Subcommittee found that, as of
September 30, 2009, the IRS had identified 167 criminal schemes
involving the credit. The Treasury Inspector General for Tax
Administration (TIGTA), the IRS Deputy Commissioner for
Enforcement, and the Director of Tax Issues for the Government
Accountability Office testified on allegations of fraud
involving the tax credit and recommended actions to enhance
administration of the credit during the 2010 tax return filing
season. The Subcommittee learned that hundreds of taxpayers
under the age of 18 had claimed the credit as well as taxpayers
who had indications of prior home ownership. The Subcommittee
also learned that administration of the credit would be
enhanced if the IRS was given authority to require
documentation to substantiate the claim and to correct errors
without a full audit. On October 22, 2009, Oversight
Subcommittee Chairman Lewis and Ranking Member Boustany
introduced H.R. 3901, the Homebuyer Tax Credit Improvement Act
of 2009, which provided the IRS with additional authority to
prevent fraudulent claims and claims by minors. This bill was
incorporated into H.R. 5623, the Homebuyer Assistance and
Improvement Act of 2010 (Homebuyer Assistance Act), which was
enacted into law on July 2, 2010 (Public Law No. 111-198). The
Homebuyer Assistance Act also included a provision to address
fraudulent first-time homebuyer credits by prisoners, an issue
identified by TIGTA in a report in follow up to an Oversight
Subcommittee hearing.
6. Food Banks and Front-Line Charities: Unprecedented
Demand and Unmet Need (Joint Hearing With the Income Security
and Family Support Subcommittee).
Actions taken. On November 12, 2009, the Subcommittees on
Oversight and Income Security and Family Support conducted a
hearing to review the effect of the economic downturn and
increased unemployment on the demand for hunger-relief
assistance at food banks and other charities. Witnesses
representing public and private charities testified that:
individuals were seeking food assistance in unprecedented
numbers; one-half of food distribution agencies were turning
people away; and funding to food service agencies and food
banks from all sources had decreased. Witnesses also testified
that current tax rules discourage private foundations from
giving to their full extent in times of great need. These
witnesses asked for the two-tier excise tax on the investment
income of private foundations to be simplified to a flat rate
excise tax. On November 17, 2010, Oversight Subcommittee
Chairman John Lewis, Representative Danny K. Davis, and Select
Revenue Measures Subcommittee Ranking Member Patrick J. Tiberi
introduced H.R. 4090 to simplify the private foundation two-
tier excise tax to a single, flat-tax rate.
7. National Taxpayer Advocate's 2009 Report on the Most
Serious Problems Encountered by Taxpayers.
Actions taken. On March 16, 2010, the Oversight
Subcommittee conducted a hearing on the National Taxpayer
Advocate's 2009 Report to the Congress on the most serious
problems encountered by taxpayers, legislative recommendations
to address these problems, the most litigated tax issues, and
certain research studies. The Taxpayer Advocate testified that
she found a need to improve: oversight of the return preparer
industry; telephone assistance provided to taxpayers; and the
IRS's tax lien policies. Further, the Taxpayer Advocate
reported that the needs of low-income taxpayers are not being
met, there is a steady decline in the offers-in-compromise
program, and the IRS should develop a plan to address its ``Pay
Refunds First, Verify Eligibility Later'' approach to returns
processing. On April 15, 2010, the House passed H.R. 4994, the
Taxpayer Assistance Act of 2010, introduced by Oversight
Chairman Lewis. The bill would ease administrative burdens on
taxpayers: by removing cellular telephones from listed
property; providing electronic filing exemptions for religious
reasons; and removing the partial-pay requirement for offers-
in-compromise (H.R. 2343). It also included provisions to
assist taxpayers by: allowing the IRS to refer taxpayers to
low-income tax clinics; expanding earned income tax credit
outreach; and mandating studies on the delivery of tax refunds
and timely processing of information returns. The cellular
telephone provision was included in H.R. 5297, the Small
Business Jobs Act of 2010, which was enacted into law on
September 27, 2010 (Public Law No. 111-240).
8. Internal Revenue Service Operations and the 2010 Tax
Return Filing Season.
Actions taken: On March 25, 2010, the Oversight
Subcommittee conducted a hearing to review overall IRS
operations, including the adequacy of taxpayer service,
examination and collection activities; efforts to reduce the
$345 billion tax gap; security at IRS facilities; and the
Administration's Fiscal Year 2011 budget proposal for the IRS
of $12.6 billion. The Subcommittee also reviewed the 2010 tax
return filing season focusing on the availability of assistance
to taxpayers, the most common taxpayer errors and questions,
and recent tax refund scams. The IRS Commissioner testified
that the filing season was progressing smoothly, fewer returns
had been filed but the number of electronically-filed returns
had increased, and the availability of telephone service had
improved over the prior-year level. The IRS Commissioner
testified that the Administration's budget proposal will allow
the IRS to address offshore tax evasion, ensure high-income
individuals and corporations pay tax, and provide oversight of
the tax return preparer community. As noted above, on April 15,
2010, the House passed H.R. 4994, the Taxpayer Assistance Act
of 2010, introduced by Oversight Chairman Lewis. The bill would
enhance IRS administration by removing cellular telephones from
listed property, providing electronic filing exemptions for
religious reasons, removing the partial-pay requirement for
offers-in-compromise (H.R. 2343), and clarifying the
application of the bad check penalty to electronic payments.
The cellular telephone provision was included in H.R. 5297, the
Small Business Jobs Act of 2010, which was enacted into law on
September 27, 2010 (Public Law No. 111-240). The bad check
penalty provision was included in H.R. 5623, the Homebuyer
Assistance and Improvement Act of 2010, which was enacted into
law on July 2, 2010 (Public Law No. 111-198).
9. Alcohol Tax and Trade Bureau's Report on Tobacco
Smuggling in the United States.
Actions taken: On May 27, 2010, the Oversight Subcommittee
held a hearing on the Department of Treasury's Alcohol and
Tobacco Tax and Trade Bureau (TTB) report to the Committee on
Ways and Means on tobacco smuggling in the United States, which
included an estimate on the magnitude of tobacco smuggling
(between $500 million and $1.5 billion in 2007) and the
recommendations made by TTB to reduce smuggling (including
working with the Food and Drug Administration on a ``track-and-
trace'' system for tobacco products). The Subcommittee reviewed
tobacco smuggling and other compliance issues that have arisen
as a result of tax rate and tax law changes contained in the
Children's Health Insurance Program Reauthorization Act of 2009
(CHIPRA). The Administrator of TTB discussed how a track-and-
trace system could enhance enforcement of tobacco excise taxes.
He also testified that increases in the tax rates in CHIPRA
created an incentive for tobacco diversion schemes, including a
substantial shift in tobacco products from ``roll-your-own
tobacco'' (taxed under CHIPRA at $24.78 per pound) to ``pipe
tobacco'' (taxed under CHIPRA at $2.8311 per pound). The
Administrator testified that it is difficult to differentiate
between pipe tobacco and roll-your-own tobacco, but TTB is in
the process of developing analytical methods to differentiate
them. The Honorable Lloyd Doggett testified on legislation that
he introduced, H.R. 5178, the Smuggled Tobacco Prevention Act
of 2010, to provide law enforcement the tools and regulatory
flexibility to address billions of dollars in tobacco
smuggling, including the use of a track-and-trace system. The
Honorable Lloyd Doggett and The Honorable Steven Cohen also
introduced H.R. 4439, the Tobacco Tax Parity Act of 2010, to
equalize the excise tax rates on pipe tobacco and roll-your-own
tobacco.
10. Reducing Fraud, Waste, and Abuse in Medicare (Joint
Hearing with the Health Subcommittee).
Actions taken: On June 15, 2010, the Health and Oversight
Subcommittees held a hearing on reducing fraud, waste, and
abuse in Medicare with a focus on prevention, detection,
investigation, and prosecution at the Centers for Medicare and
Medicaid Services, the Department of Health and Human Services
(HHS), and the Department of Justice. Testimony was heard from
Members of Congress, the Chief Counsel for the HHS Inspector
General, the Associate Deputy Attorney General, the Director of
Health Care for the U.S. Government Accountability Office, and
the Director of Medicare Program Integrity at the Centers for
Medicare and Medicaid Services. The Subcommittees heard
testimony that, in areas that CMS has identified as highly
vulnerable to waste, fraud, and abuse (such as durable medical
equipment and home health), increased oversight and
implementation of additional safeguards are making a
difference. Lastly, the Subcommittees heard testimony that the
passage of the Affordable Care Act (Public Law No. 111-148)
builds on program integrity efforts by providing CMS with
important tools and the ability to: improve and streamline its
program integrity capabilities and tailor interventions to
address problem areas; enhance screening requirements for
providers and suppliers throughout Medicare; and provide
oversight controls such as payment caps and prepayment reviews
of claims for high-risk services. On September 15, 2010, Health
Subcommittee Chairman Stark, Oversight Subcommittee Chairman
Lewis, Health Subcommittee Ranking Member Herger, and Oversight
Subcommittee Ranking Member Boustany introduced H.R. 6130, the
Strengthening Medicare Anti-Fraud Measures Act of 2010, which
passed the House on September 22, 2010.
11. Immediate Need for Charitable Assistance in the Gulf
Coast Region.
Actions taken: On July 20, 2010, the Oversight Subcommittee
held a hearing on the immediate need for charitable assistance
in the Gulf Coast region. The Subcommittee heard testimony from
the President of Catholic Charities USA and the Executive
Director of the National Fish and Wildlife Foundation on the
escalating demand for charitable assistance to help residents
and wildlife in the Gulf Coast region as a result of the BP
Deepwater Horizon mobile drilling rig explosion. The
Subcommittee learned that the need for social services was
growing in the Gulf Coast region. Residents were seeking
assistance with food, utilities, housing, clothing, and medical
expenses. The Subcommittee also learned that immediate action
was necessary outside the spill zone to enhance habitat and
food sources for more than 50 million birds that migrate to and
through the Gulf Coast. The Subcommittee learned that the oil
rig explosion also was impacting charitable giving in the
region. Catholic Charities made a number of recommendations to
assist residents in the region.
OVERSIGHT REVIEW OF INCOME SECURITY AND FAMILY SUPPORT ISSUES
As indicated in the letter sent to the Committee on
Oversight and Government Reform on February 9, 2009, the
Subcommittee on Income Security and Family Support conducted a
number of hearings to oversee the impact and effectiveness of a
variety of assistance programs and policies within the
Committee's jurisdiction.
Vulnerable Populations and Poverty
On October 8, 2009, the Subcommittee on Income Security and
Family Support held a hearing to evaluate the response of
safety net programs to the recession, including unemployment
insurance and TANF.
On November 12, 2009, the Subcommittee held a joint hearing
with the Oversight Subcommittee to review the effect of the
economic downturn and increased unemployment on the demand for
hunger-relief assistance at food banks and other charities.
On June 10, 2010, the Subcommittee on Income Security and
Family Support held a hearing on long-term unemployment, with a
focus on possible Federal policy responses to long-term
unemployment.
The Subcommittee conducted two joint hearings with the
Subcommittee on Social Security (on March 24, 2009 and on April
27, 2010) to examine the causes and possible solutions to the
backlog of Social Security and SSI disability claims.
Welfare Programs
The Subcommittee on Income Security and Family Support
conducted a hearing on the TANF program's role in providing
assistance to struggling families on March 11, 2010.
On April 22, 2010, the Subcommittee conducted a hearing to
examine the role of education and training in the TANF program.
On June 17, 2010, the Subcommittee held a hearing to review
responsible fatherhood programs that are supported with Federal
funding.
Unemployment Compensation
On April 23, 2009, the Subcommittee on Income Security and
Family Support held a hearing on the implementation of the
unemployment insurance (UI) provisions in the Recovery Act,
with a focus on the UI modernization, augmentation, and
extension provisions in the Act.
On May 6, 2010, the Subcommittee conducted a hearing to
review the solvency of the Unemployment Insurance system.
At-Risk Children
On June 9, 2009, the Subcommittee on Income Security and
Family Support held a hearing to review proposals to provide
Federal funding for early childhood home visitation programs.
On September 15, 2009, the Subcommittee held a hearing to
evaluate the implementation of the Fostering Connections to
Success and Increasing Adoptions Act, which included new
policies designed to help connect foster children to families
and to help children who age out of the foster care system.
The Subcommittee held a hearing on July 29, 2010 that
reviewed State use of child welfare waiver demonstration
projects to promote child well-being.
Subcommittee on Health
1. Medicare payment policy.
Actions Taken: On March 17, 2009 the Subcommittee on Health
held a hearing to receive testimony on Medicare payment
policies from Medicare Payment Advisory Commission (MedPAC).
The information was used in developing certain Medicare payment
policies contained in H.R. 3962, the ``Affordable Health Care
for America Act.''
2. Reducing Fraud, Waste and Abuse.
Actions Taken: On June 15, 2010 the Subcommittee on Health
held a joint hearing with the Subcommittee on Oversight to
examine efforts to Reduce Fraud, Waste and Abuse in Medicare.
The Subcommittees received testimony from Members of Congress
and federal agencies. The hearing reviewed the recent efforts
of the Centers for Medicare and Medicaid Services, the HHS
Office of the Inspector General and the Department of Justice
to combat Fraud, Waste and Abuse in Medicare and the new tools
and resources available to these agencies to fight fraud
contained in the Affordable Care Act. Information gathered at
this hearing led to the introduction of H.R. 6130, the
``Strengthening Medicare Anti-Fraud Measures Act of 2010,'' a
bill that provides the HHS Inspector General (IG) the authority
to ban corporate executives from doing business with Medicare
if their companies were convicted of fraud. It also gives the
IG the ability to exclude parent companies that may be
committing fraud through shell companies. The bill passed the
House by voice vote on September 22, 2010.
3. Health Information Technology.
Actions Taken: On July 20, 2010 the Subcommittee on Health
held a hearing on efforts to promote the adoption and
meaningful use of health information technology. The
Subcommittee received testimony from the Centers for Medicare
and Medicaid Services, the Office of the National Coordinator
of Health Information Technology and provider and beneficiary
representatives. The hearing examined implementation of the
HITECH Act, which was contained in the ``American Recovery and
Reinvestment Act'' (ARRA). The Subcommittee focused on the
Medicare incentives designed to encourage meaningful use of
electronic health records. The Subcommittee will continue to
monitor the implementation of the HITECH Act.
4. Health Reform.
Over the course of the 111th Congress, the Full Committee
held a series of hearings on selected health reform topics. On
March 11, 2009 the Committee held a hearing entitled ``Health
Reform in the 21st Century: Expanding Coverage, Improving
Quality and Controlling Costs,'' which focused on the need for
comprehensive health reform and key features of a reformed
health system. On April 1, 2009 the Committee held a hearing
entitled ``Health Reform in the 21st Century: Reforming the
Health Care Delivery System,'' to examine policies to modernize
the health delivery system. On April 22, 2009 the Committee
held a hearing entitled ``Health Reform in the 21st Century:
Insurance Market Reforms,'' the hearing focused on strategies
to reform the health insurance marketplace to ensure greater
accessibility and affordability. On April 29th, 2009 the
Committee held a hearing entitled ``Health Reform in the 21st
Century: Employer Sponsored Insurance'' that focused on recent
trends in employer-sponsored health insurance and strategies to
strengthen and build upon job-based coverage in health reform.
On May 6th, 2009 the Committee held a hearing entitled ``Health
Reform in the 21st Century: A Conversation with Health and
Human Services Secretary Kathleen Sebelius.'' The hearing
provided an opportunity for Secretary Sebelius to present the
Administration's principles for health care reform. Information
from these hearings helped to inform key sections of H.R. 3200,
``America's Affordable Health Choices Act of 2009,'' and
ultimately H.R. 3961, the ``Medicare Physician Payment Reform
Act of 2009,'' and H.R. 3962, the ``Affordable Health Care for
America Act''.
Appendix I. Jurisdiction of the Committee on Ways and Means
A. U.S. Constitution
Article I, Section 7, of the Constitution of the United
States provides as follows:
All Bills for raising Revenue shall originate in the House
of Representatives; but the Senate may propose or concur with
Amendments as on other Bills.
In addition, Article I, Section 8, of the Constitution of
the United States provides the following:
The Congress shall have Power To lay and collect Taxes,
Duties, Imposts and Excises, to pay the Debts and . . . To
borrow Money on the credit of the United States.
B. Rule X, Clause 1, Rules of the House of Representatives
Rule X, clause 1(t), of the Rules of the House of
Representatives, in effect during the 110th Congress, provides
for the jurisdiction of the Committee on Ways and Means, as
follows:
(t) Committee on Ways and Means.
(1) Customs revenue, collection districts,
and ports of entry and delivery.
(2) Reciprocal trade agreements.
(3) Revenue measures generally.
(4) Revenue measures relating to insular
possessions.
(5) Bonded debt of the United States, subject
to the last sentence of clause 4(f).
Clause 4(f) requires the Committee on Ways and Means
to include in its annual report to the Committee on the
Budget a specific recommendation, made after holding
public hearings, as to the appropriate level of the
public debt that should be set forth in the concurrent
resolution on the budget.
(6) Deposit of public monies.
(7) Transportation of dutiable goods.
(8) Tax exempt foundations and charitable
trusts.
(9) National Social Security (except health
care and facilities programs that are supported
from general revenues as opposed to payroll
deductions and except work incentive programs).
C. Brief Description of Committee's Jurisdiction
The foregoing recitation of the provisions of House Rule X,
clause 1, paragraph (t), does not convey the comprehensive
nature of the jurisdiction of the Committee on Ways and Means.
The following summary provides a more complete description:
(1) Federal revenue measures generally.--The Committee on
Ways and Means has the responsibility for raising the revenue
required to finance the Federal Government. This includes
individual and corporate income taxes, excise taxes, estate
taxes, gift taxes, and other miscellaneous taxes.
(2) The bonded debt of the United States.--The Committee on
Ways and Means has jurisdiction over the authority of the
Federal Government to borrow money. Title 31 of Chapter 31 of
the U.S. Code authorizes the Secretary of the Treasury to
conduct any necessary public borrowing subject to a maximum
limit on the amount of borrowing outstanding at any one time.
This statutory limit on the amount of public debt (``the debt
ceiling'') currently is $11.315 trillion. The Committee's
jurisdiction also includes conditions under which the U.S.
Department of the Treasury manages the Federal debt, such as
restrictions on the conditions under which certain debt
instruments are sold.
(3) National Social Security programs.--The Committee on
Ways and Means has jurisdiction over most of the programs
authorized by the Social Security Act, which includes not only
those programs that are normally referred to colloquially as
``Social Security'' but also social insurance programs and a
whole series of grant-in-aid programs to State governments for
a variety of purposes. The Social Security Act, as amended,
contains 21 titles (a few of which have either expired or have
been repealed). The principal programs established by the
Social Security Act and under the jurisdiction of the Committee
on Ways and Means in the 110th Congress can be outlined as
follows:
(a) Old-age, survivors, and disability insurance
(Title II)--At present, there are approximately 164
million workers in employment covered by the program,
and for calendar year 2007, $585 billion in benefits
were paid almost 50 million individuals.
(b) Medicare (Title XVIII)--Provides hospital
insurance benefits to 35.2 million persons over the age
of 65 and to 6.7 million disabled persons. Voluntary
supplementary medical insurance is provided to 33.7
million aged persons and 6 million disabled persons.
Total program outlays under these programs were $330
billion in 2005.
(c) Supplemental Security Income (SSI) (Title XVI)--
The SSI program was inaugurated in January 1974 under
the provisions of P.L. 92-603, as amended. It replaced
the former Federal-State programs for the needy aged,
blind, and disabled. In January 2006, 6.9 million
individuals received Federal SSI benefits on a monthly
basis. Of these 6.9 million persons, approximately 1.1
million received benefits on the basis of age, and 5.8
million on the basis of blindness or disability.
Federal expenditures for cash SSI payments in 2005
totaled $36 billion, while State expenditures for
federally administered SSI supplements totaled $5.1
billion.
(d) Temporary Assistance for Needy Families (TANF)
(part A of Title IV)--The TANF program is a block grant
of about $16.5 billion dollars awarded to States to
provide income assistance to poor families, to end
dependency on welfare benefits, to prevent nonmarital
births, and to encourage marriage, among other
purposes. In most cases, Federal TANF benefits for
individuals are limited to 5 years and individuals must
work to maintain their eligibility. In June 2006, about
1.8 million families and 4.1 million individuals
received benefits from the TANF program.
(e) Child support enforcement (part D of Title W)--In
fiscal year 2003 Federal administrative expenditures
totaled $5.2 billion for the child support enforcement
program. Child support collections for that year
totaled $21.2 billion.
(f) Child welfare, foster care, and adoption
assistance (parts B and E of Title IV)--Titles IV B and
E provide funds to States for child welfare services
for abused and neglected children; foster care for
children who meet Aid to Families with Dependent
Children eligibility criteria; and adoption assistance
for children with special needs. In fiscal year 2005,
Federal expenditures for child welfare services totaled
$702 million. Federal expenditures for foster care and
adoption assistance were approximately $6.7 billion.
(g) Unemployment compensation programs (Titles III,
IX, and XII)--These titles authorize the Federal-State
unemployment compensation program and the permanent
extended benefits program. Between July 1, 2005, and
June 30, 2006, an estimated $30.3 billion was paid in
unemployment compensation, with approximately 7.4
million workers receiving unemployment compensation
payments.
(h) Social services (Title XX)--Title XX authorizes
the Federal Government to reimburse the States for
money spent to provide persons with various services.
Generally, the specific services provided are
determined by each State. In fiscal year 2005, $1.7
billion was appropriated. These funds are allocated on
the basis of population.
(4) Trade and tariff legislation.--The Committee on Ways
and Means has responsibility over legislation relating to
tariffs, import trade, and trade negotiations. In the early
days of the Republic, tariff and customs receipts were major
sources of revenue for the Federal Government. As the Committee
with jurisdiction over revenue-raising measures, the Committee
on Ways and Means thus evolved as the primary Committee
responsible for international trade policy.
The Constitution vests the power to levy tariffs and to
regulate international commerce specifically in the Congress as
one of its enumerated powers. Statutes including the Reciprocal
Trade Agreements Acts beginning in 1934, Trade Expansion Act of
1962, Trade Act of 1974, Trade Agreements Act of 1979, Trade
and Tariff Act of 1984, Omnibus Trade and Competitiveness Act
of 1988, North American Free Trade Agreement (NAFTA)
Implementation Act, Uruguay Round Agreements Act, and Trade Act
of 2002 provide the basis for U.S. bargaining with other
countries to achieve the mutual reduction of tariff and
nontariff trade barriers under reciprocal trade agreements.
The Committee's jurisdiction includes the following
authorities and programs:
(a) The tariff schedules and all tariff preference
programs, such as the General System of Preferences and
the Caribbean Basin Initiative;
(b) Laws dealing with unfair trade practices,
including the antidumping law, countervailing duty law,
section 301, and section 337;
(c) Other laws dealing with import trade, including
section 201 (escape clause), section 232 national
security controls, section 22 agricultural
restrictions, international commodity agreements,
textile restrictions under section 204, and any other
restrictions or sanctions affecting imports;
(d) General and specific trade negotiating authority,
as well as implementing authority for trade agreements
and the grant of normal-trade-relations (NTR) status;
(e) General and NAFTA-related TAA programs for
workers, and TAA for firms;
(f) Customs administration and enforcement, including
rules of origin and country-of-origin marking, customs
classification, customs valuation, customs user fees,
and U.S. participation in the World Customs
Organization (WCO);
(g) Trade and customs revenue functions of the
Department of Homeland Security and the Department of
the Treasury.
(h) Authorization of the budget for the International
Trade Commission (ITC), functions of the Department of
Homeland Security under the Committee's jurisdiction,
and the Office of the U.S. Trade Representative (USTR).
D. Revenue Originating Prerogative of the House of Representatives
The Constitutional Convention debated adopting the British
model in which the House of Lords could not amend revenue
legislation sent to it from the House of Commons. Eventually,
however, the Convention proposed and the States later ratified
the Constitution providing that ``All bills for raising revenue
shall originate in the House of Representatives, but the Senate
may propose or concur with amendments as on other bills.''
(Article 1, Section 7, clause 1.)
In order to pass constitutional scrutiny under this
``origination clause,'' a tax bill must be passed first by the
House of Representatives. After the House has completed action
on a bill and approved it by a majority vote, the bill is
transmitted to the Senate for formal action. The Senate may
have already reviewed issues raised by the bill before its
transmission. For example, the Senate Committee on Finance
frequently holds hearings on tax legislative proposals before
the legislation embodying those proposals is transmitted from
the House of Representatives. On occasion, the Senate will
consider a revenue bill in the form of a Senate or ``S.'' bill,
and then await passage of a revenue ``H.R.'' bill from the
House. The Senate then will add or substitute provisions of the
``S.'' bill as an amendment to the ``H.R.'' bill and send the
``H.R.'' bill back to the House of Representatives for its
concurrence or for conference on the differing provisions.
E. The House's Exercise of its Constitutional Prerogative: ``Blue
Slipping''
When a Senate bill or amendment to a House bill infringes
on the constitutional prerogative of the House to originate
revenue measures, that infringement may be raised in the House
as a matter of privilege. That privilege has also been asserted
on a Senate amendment to a House amendment to a Senate bill
(see 96th Congress, 1st Session, November 8, 1979,
Congressional Record p. H10425).
Note that the House in its sole discretion may
determine that legislation passed by the Senate
infringes on its prerogative to originate revenue
legislation. In the absence of such determination by
the House, the Federal courts are occasionally asked to
rule a certain revenue measure to be unconstitutional
as not having originated in the House (see U.S. v.
Munoz-Flores, 495 U.S. 385 (1990).
Senate bills or amendments to non-revenue bills infringe on
the House's prerogative even if they do not raise or reduce
revenue. Such infringements are referred to as ``revenue
affecting.'' Thus, any import ban which could result in lost
customs tariffs must originate in the House (100th Congress,
1st Session, July 30, 1987 100th Congress, 2d Session, June 16,
1988, Congressional Record p. H4356).
Offending bills and amendments are returned to the Senate
through the passage in the House of a House Resolution which
states that the Senate provision: ``in the opinion of the
House, contravenes the first clause of the seventh section of
the first article of the Constitution of the United States and
is an infringement of the privilege of the House and that such
bill be respectfully returned to the Senate with a message
communicating this resolution'' (e.g., 100th Congress, 1st
Session, July 30, 1987, Congressional Record p. H6808). This
practice is referred to as ``blue slipping'' because the
resolution returning the offending bill to the Senate is
printed on blue paper.
In other cases, the Committee of the Whole House has passed
a similar or identical House bill in lieu of a Senate bill or
amendment (e.g., 91st Congress, 2d Congress, May 11, 1970,
Congressional Record pp. H14951-14960). The Committee on Ways
and Means has also reported bills to the House which were
approved and sent to the Senate in lieu of Senate bills (e.g.,
93d Congress, 1st Session, November 6, 1973, Congressional
Record pp. 36006-36008). In other cases, the Senate has
substituted a House bill or delayed action on its own
legislation to await a proper revenue affecting bill or
amendment from the House (see 95th Congress, 2d Session,
September 22, 1978, Congressional Record p. H30960; January 22,
1980, Congressional Record p. S107).
Any Member may offer a resolution seeking to invoke Article
I, Section 7. However, the determination that a bill violates
the Origination Clause has been traditionally made by Members
of the Committee on Ways and Means, and the resolution has been
offered by the Chairman or another Member of the Committee on
Ways and Means. Because Article I, Section 7 involves the
privileges of the House, a blue-slip resolution offered by the
Chairman or other Members of the Committee on Ways and Means
has been typically adopted by voice vote on the House Floor.
There have been instances where the House has agreed to not
deal directly with the issue by tabling a
resolution.1,2
---------------------------------------------------------------------------
\1\In cases where the Chairman of the Committee on Ways and Means
did not believe that the bill in question violated the Origination
Clause or the objection had been dealt with in another manner,
resolutions offered by other Members of the House have been tabled.
[See adoption of motion by Representative Rostenkowski to table H. Res.
571, 97-2, p. 22127.]
\2\This was an instance where the Chairman of the Committee on Ways
and Means raised a question of the privilege of the House pursuant to
Article I, Section 7, of the U.S. Constitution on H.R. 4516,
Legislative Branch Appropriations. The motion was laid on the table.
BLUE SLIP RESOLUTIONS--98TH CONGRESS THROUGH 111TH CONGRESS
CHRONOLOGICAL LIST
[Resolutions passed by the House returning to the Senate bills passed in
violation of the origination clause of the United States Constitution
(Clause 1, Section 7 of Article I)]
------------------------------------------------------------------------
H. Res., sponsor, and date of Description of Senate action (and related
House passage House action, if any)
------------------------------------------------------------------------
111th Congress:
H. Res. 1653, Mr. Levin.. On August 5, 2010, the Senate passed H.R.
September 23, 2010 5875, ``Emergency Border Supplemental
Appropriations Act, 2010'' with an
amendment. Contained in this legislation
was a provision that requires certain
employers to pay a surcharge with
respect to each application for a worker
visa. The proposed surcharge constituted
a revenue measure in the constitutional
sense because it would have had a direct
impact on Federal revenues.
On March 26, 2010, the Senate passed S.
3162. Contained in this legislation was
an amendment to the Internal Revenue
Code of 1986, as amended, to clarify the
health care provided by the Secretary of
Veterans Affairs constitutes minimum
essential coverage. The proposed
amendment to the Internal Revenue Code
constituted a revenue measure in the
constitutional sense because it would
have had a direct impact on Federal
revenues.
On March 25, 2010, the Senate passed S.
3187, ``Federal Aviation Administration
Extension Act of 2010.'' Contained in
this legislation were extensions of fuel
and ticket taxes that fund the Airport
and Airway Trust Fund. These proposed
extensions of taxes constituted revenue
measures in the constitutional sense
because they would have had a direct
impact on Federal revenues.
On January 28, 2010, the Senate passed S.
2799, ``Comprehensive Iran Sanctions,
Accountability, and Divestment Act of
2009.'' Contained in this legislation
was a provision banning the importation
of imports from Iran. The proposed
change in the import laws constituted a
revenue measure in the constitutional
sense because it would have had a direct
impact on customs revenues.
On August 9, 2009, the Senate passed S.
1023, ``Travel Promotion Act of 2009.''
Contained in this legislation was a
provision requiring users of the
government's visa waiver program to pay
a surcharge. The proposed surcharge
constituted a revenue measure in the
constitutional sense because it would
have had a direct impact on Federal
revenues.
On July 20, 2009, the Senate passed S.
951, ``New Frontier Congressional Gold
Medal Act.'' Contained in this
legislation was a provision allowing the
Secretary of the Treasury to sell
commemorative coins celebrating the 40th
anniversary of the first landing on the
moon. The proposed sale of these coins
would have constituted a revenue measure
in the constitutional sense because it
would have had a direct impact on
Federal revenues.
107th Congress:
H. Res. 240, Mr. Thomas.. On September 13, 2001, the Senate passed
September 20, 2001 H.R. 2500, ``Making appropriations for
the U.S. Departments of Commerce,
Justice, and State, the Judiciary, and
related agencies for the fiscal year
ending September 30, 2002, and for other
purposes'' with an amendment. Contained
in this legislation was a provision
banning the importation of diamonds not
certified as originating outside
conflict zones. The proposed change in
the import laws constituted a revenue
measure in the constitutional sense,
because it would have had a direct
impact on customs revenues.
106th Congress:
H. Res. 645, Mr. Crane... On October 17, 2000, the Senate passed S.
October 24, 2000 1109, the Bear Protection Act of 1999.
This legislation would have conserved
global bear populations by prohibiting
the importation, exportation, and
interstate trade of bear viscera and
items, products, or substances
containing, or labeled or advertised as
containing, bear viscera. The proposed
change in the import laws constituted a
revenue measure in the constitutional
sense, because it would have had a
direct impact on customs revenues.
H. Res. 394, Mr. Weller.. On November 3, 1999, the Senate passed S.
November 18, 1999 1232, Federal Erroneous Retirement
Coverage Corrections Act. This
legislation would have provided that no
Federal retirement plan involved in the
corrections under the bill would fail to
be treated as a tax-qualified retirement
plan by reason of the correction, and
that any fund transfers or government
contributions resulting from the
corrections would have no impact on the
tax liability of individuals. These
changes constituted a revenue measure in
the constitutional sense because they
would have had a direct impact on
Federal revenues.
H. Res. 393, Mr. Weller.. On February 24, 1999, the Senate passed
November 18, 1999 S. 4, the Soldiers', Sailors', Airmen',
and Marines' Bill of Rights Act of 1999.
The legislation would have allowed
members of the Armed Forces to
participate in the Federal Thrift
Savings Program and to avoid the tax
consequences that would otherwise have
resulted from certain contributions in
excess of the limitations imposed in the
Internal Revenue Code. This proposed
exemption therefore constituted a
revenue measure in the constitutional
sense because it would have had a direct
impact on Federal revenues.
H. Res. 249, Mr. Portman. On May 20, 1999, the Senate passed S.
July 16, 1999 254, the Violent and Repeat Juvenile
Offender Accountability and
Rehabilitation Act of 1999. The
legislation would have had the effect of
banning the import of large capacity
ammunition feeding devices. The proposed
change in the import laws constituted a
revenue measure in the constitutional
sense, because it would have had a
direct impact on customs revenues.
105th Congress:
H. Res. 601, Mr. Crane... On October 8, 1998, the Senate passed S.
October 15, 1998 361, the Tiger and Rhinoceros
Conservation Act of 1998. This
legislation would have had the effect of
creating a new basis and mechanism for
applying import restrictions for
products intended for human consumption
or application containing (or labeled as
containing) any substance derived from
tigers or rhinoceroses. The proposed
change in the import laws constituted a
revenue measure in the constitutional
sense, because it would have had a
direct impact on customs revenues.
H. Res. 379, Mr. Ensign.. On April 15, 1997, the Senate passed S.
March 5, 1998 104, the Nuclear Waste Policy Act of
1997. This legislation would have
repealed a revenue provision and
replaced it with a user fee. The revenue
provision in question was a fee of 1
mill per kilowatt hour of electricity
generated by nuclear power imposed by
the Nuclear Waste Policy Act of 1982.
The proposed user fee in the legislation
would have been limited to the amount
appropriated for nuclear waste disposal.
The original fee was uncapped, and, in
fact, because the fees collected
exceeded the associated costs, it was
being used as revenue to finance the
Federal Government generally. Its
proposed repeal, therefore, constituted
a revenue measure in the constitutional
sense because it would have had a direct
impact on Federal revenues.
104th Congress:
H. Res. 554, Mr. Crane... On June 30, 1996, the Senate passed H.R.
September 28, 1996 400, the Anaktuvuk Pass Land Exchange
and Wilderness Redesignation Act of
1995, with an amendment. Section 204(a)
of the Senate amendment would have
overridden existing tax law by expanding
the definition of actions not subject to
Federal, State, or local taxation under
the Alaska Native Claims Settlement Act.
These changes constituted a revenue
measure in the constitutional sense
because they would have had a direct
impact on Federal revenues.
H. Res. 545, Mr. Archer.. On September 25, 1996, the Senate passed
September 27, 1996 S. 1311, the National Physical Fitness
and Sports Foundation Establishment Act.
Section 2 of the bill would have waived
the application of certain rules
governing recognition of tax-exempt
status for the foundation established
under this legislation. This exemption
constituted a revenue measure in the
constitutional sense because it would
have had a direct impact on Federal
revenues.
H. Res. 402, Mr. Shaw.... On January 26, 1996, the Senate passed S.
April 16, 1996 1463, to amend the Trade Act of 1974.
The bill would have changed the
authority and procedure for
investigations by the ITC for certain
domestic agricultural products. Such
investigations are a predicate necessary
for achieving access to desired trade
remedies that the President may order,
such as tariff adjustments, tariff-rate
quotas, quantitative restrictions, or
negotiation of trade agreements to limit
imports. By creating a new basis and
mechanism for import restrictions under
authority granted to the President, the
bill constituted a revenue measure in
the constitutional sense because it
would have had a direct impact on
customs revenues.
H. Res. 387, Mr. Crane... On February 1, 1996, the Senate passed S.
March 21, 1996 1518, repealing the Tea Importation Act
of 1897. Under existing law in 1996, it
was unlawful to import substandard tea,
except as provided in the HTS. Changing
import restrictions constituted a
revenue measure in the constitutional
sense because it would have had a direct
impact on customs revenues.
103d Congress:
H. Res. 577, Mr. Gibbons. On October 3, 1994, the Senate passed S.
October 7, 1994 1216, the Crow Boundary Settlement Act
of 1994. The bill would have overridden
existing tax law by exempting certain
payments and benefits from taxation.
These exemptions constituted a revenue
measure in the constitutional sense
because they would have had a direct
impact on Federal revenues.
H. Res. 518, Mr. Gibbons. On July 20, 1994, the Senate passed H.R.
August 12, 1994 4554, the Agriculture and Rural
Development Appropriations Act for
fiscal year 1995, with amendments.
Senate amendment 83 would have provided
authority for the Food and Drug
Administration (FDA) to collect fees to
cover the costs of regulation of
products under their jurisdiction.
However, these fees were not limited to
covering the cost of specified
regulatory activities, and would have
been charged to a broad cross-section of
the public (rather than been limited to
those who would have benefited from the
regulatory activities) to fund the cost
of the FDA's activities generally. These
fees constituted a revenue measure in
the constitutional sense because they
were not based on a direct relationship
between their level and the cost of the
particular government activity for which
they would have been assessed, and would
have had a direct impact on Federal
revenues.
H. Res. 487, Mr. Gibbons. On May 25, 1994, the Senate passed S.
July 21, 1994 1030, the Veterans Health Programs
Improvement Act of 1994. A provision in
the bill would have exempted from
taxation certain payments made on behalf
of participants in the Education Debt
Reduction Program. This provision
constituted a revenue measure in the
constitutional sense because it would
have had a direct impact on Federal
revenues.
H. Res. 486, Mr. Gibbons. On May 29, 1994, the Senate passed S.
July 21, 1994 729, to amend the Toxic Substances
Control Act. Title I of the bill
included several provisions to prohibit
the importation of specific categories
of products which contained more than
specified quantities of lead. By
establishing these import restrictions,
the bill constituted a revenue measure
in the constitutional sense because it
would have had a direct impact on
customs revenues.
H. Res. 479, Mr. Rangel.. On June 22, 1994, the Senate passed H.R.
July 14, 1994 4539, the Treasury, Postal Service, and
General Government Appropriations Act
for fiscal year 1995, with amendments.
Senate amendment 104 would have
prohibited the Treasury from using
appropriations to enforce the Internal
Revenue Code requirement for the use of
undyed diesel fuel in recreational
motorboats. This prohibition, therefore,
constituted a revenue measure in the
constitutional sense because it would
have had a direct impact on Federal
revenues.
102d Congress:
H. Res. 373, Mr. On August 1, 1991, the Senate passed S.
Rostenkowski. 884 amended, the Driftnet Moratorium
February 25, 1992 Enforcement Act of 1991; This
legislation would require the President
to impose economic sanctions against
countries that fail to eliminate large-
scale driftnet fishing. Foremost among
the sanction provisions are those which
impose a ban on certain imports into the
United States from countries which
continue to engage in driftnet fishing
on the high seas after a certain date.
These changes in our tariff laws
constitute a revenue measure in the
constitutional sense, because they would
have a direct effect on customs
revenues.
H. Res. 267, Mr. On February 20, 1991, the Senate passed
Rostenkowski. S. 320, to reauthorize the Export
October 31, 1991 Administration Act of 1979. This
legislation contains several provisions
which impose, or authorize the
imposition of, a ban on imports into the
United States. Among the provisions
containing import sanctions are those
relating to certain practices by Iraq,
the proliferation and use of chemical
and biological weapons, and the transfer
of missile technology. These changes in
our tariff laws constitute a revenue
measure in the constitutional sense,
because they would have a direct effect
on customs revenues.
H. Res. 251, Mr. Russo... On July 11, 1991, the Senate passed S.
October 22, 1991 1241, the Violent Crime Act of 1991.
This legislation contains several
amendments to the Internal Revenue Code.
Section 812(f) provides that the police
corps scholarships established under the
bill would not be included in gross
income for tax purposes. In addition,
sections 1228, 1231, and 1232 each make
amendments to the Tax Code with respect
to violations of certain firearms
provisions. Finally, Title VII amends
section 922 of Title VIII of the U.S.
Code, making it illegal to transfer,
import or possess assault weapons. These
changes in our tariff and tax laws
constitute revenue measures in the
constitutional sense, because they would
have an immediate impact on revenues
anticipated by U.S. Customs and the
Internal Revenue Services.
101st Congress:
H. Res. 287, Mr. Cardin.. On August 4, 1989, the Senate passed S.
November 9, 1989 686, the Oil Pollution Liability and
Compensation Act of 1989. This
legislation contained a provision which
would have allowed a credit against the
oil spill liability tax for amounts
transferred from the Trans-Alaska
Pipeline Trust Fund to the Oil Spill
Liability Trust Fund.
H. Res. 177, Mr. On Apr. 19, 1989, the Senate passed S.
Rostenkowski. 774, the Financial Institution Reform,
June 15, 1989 Recovery and Enforcement Act of 1989.
This legislation would create two
corporations to administer the financial
assistance under the bill: the
Resolution Trust Corporation and the
Resolution Financing Corporation. S. 774
would have conferred tax-exempt status
to these two corporations. Without these
two tax provisions, these two
corporations would be taxable entities
under the Federal income tax.
100th Congress:
H. Res. 235, Mr. On Mar. 30, 1987, the Senate passed S.
Rostenkowski. 829, legislation which would authorize
July 30, 1987 appropriations for the ITC, the U.S.
Customs Service, and the Office of the
U.S. Trade Representative for fiscal
year 1988, and for other purposes. In
addition, the bill contained a provision
relating to imports from the Soviet
Union which amends provisions of the
Tariff Act of 1930.
H. Res. 474, Mr. On Oct. 6, 1987, the Senate passed S.
Rostenkowski. 1748, legislation which would prohibit
June 16, 1988 (see also the importation into the United States
H.R. 3391) of all products from Iran. (The House
passed H.R. 3391, which included similar
provisions, on Oct. 6, 1987.)
H. Res. 479, Mr. On May 13, 1987, the Senate passed S.
Rostenkowski. 727, legislation which would clarify
June 21, 1988 (see also Indian treaties and Executive orders
H.R. 2792 and H.R. 4333) with respect to fishing rights. This
legislation dealt with the tax treatment
of income derived from the exercise of
Indian treaty fishing rights. (The House
passed H.R. 2792, which included similar
provisions, on June 20, 1988, under
suspension of the rules and was enacted
into law as part of P.L. 100-647, H.R.
4333.)
H. Res. 544, Mr. On Sept. 9, 1988, the Senate passed S.
Rostenkowski. 2662, the Textile and Apparel Trade Act
September 23, 1988 (see of 1988. This legislation would impose
also H.R. 1154) global import quotas on textiles and
footwear products.
H. Res. 552, Mr. On Sept. 9, 1988, the Senate passed S.
Rostenkowski. 2763, the Genocide Act of 1988. This
September 28, 1988 legislation contained a ban on the
importation of all oil and oil products
from Iraq.
H. Res. 603, Mr. On Mar. 30, 1988, the Senate passed S.
Rostenkowski. 2097, the Uranium Mill Tailings Remedial
October 21, 1988 Action Amendments of 1987. This
legislation would establish a Federal
fund to assist in the financing of
reclamation and other remedial action at
currently active uranium and thorium
processing sites and would increase the
demand for domestic uranium. The fund
would be financed in part by what are
called ``mandatory fees'' which are
equal to $22 per kilogram for uranium
contained in fuel assemblies initially
loaded into civilian nuclear power
reactors during calendar years 1989-
1993. In addition, S. 2097 would impose
charges on domestic utilities that use
foreign-source uranium in new fuel
assemblies loaded in their nuclear
reactors.
H. Res. 604, Mr. On Aug. 8, 1988, the Senate passed H.R.
Rostenkowski. 1315, legislation which would authorize
October 21, 1988 appropriations for the Nuclear
Regulatory Commission for fiscal years
1988 and 1989. Title IV of the
legislation would, among other things,
establish a Federal fund to assist in
the financing of reclamation and other
remedial action at currently active
uranium and thorium processing sites and
would assist the domestic uranium
industry by increasing the demand for
domestic uranium. The fund would be
financed in part by what are called
``mandatory fees'' equal to $72 per
kilogram of uranium contained in fuel
assemblies initially loaded into
civilian nuclear power reactors on or
after Jan. 1, 1988. These fees would be
paid by licensees of civilian nuclear
power reactors and would be in place
until $1 billion had been raised.
99th Congress:
H. Res. 283, Mr. On Sept. 26, 1985, the Senate passed S.
Rostenkowski. 1712, legislation which would extend the
October 1, 1985 16-cents-per-pack cigarette excise tax
rate for 45 days, through Nov. 14, 1985.
(The House passed H.R. 3452, which
included a similar extension, on Sept.
30, 1985.)
H. Res. 562, Mr. The Senate passed S. 638, legislation to
Rostenkowski. provide for the sale of Conrail to the
September 25, 1986 Norfolk Southern Railroad. The
legislation contained numerous
provisions relating to the tax treatment
of the sale of Conrail.
98th Congress:
H. Res. 195, Mr. On Apr. 21, 1983, the Senate passed S.
Rostenkowski. 144, a bill to insure the continued
June 17, 1983 expansion of international market
opportunities in trade, trade in
services and investment for the United
States, and for other purposes.
------------------------------------------------------------------------
F. Prerogative Under the Rules of the House Over ``Revenue Measures
Generally''
In the House of Representatives, tax legislation is
initiated by the Committee on Ways and Means. The Committee's
exclusive prerogative to report ``revenue measures generally''
is provided by Rule X(1)(t) of the Rules of the House of
Representatives. The jurisdiction of the Committee on Ways and
Means under Rule X(1)(t) is protected through the exercise of
Rule XXI(5)(a) which states:
A bill or joint resolution carrying a tax or tariff
measure may not be reported by a committee not having
jurisdiction to report tax or tariff measures, and an
amendment in the House or proposed by the Senate
carrying a tax or tariff measure shall not be in order
during the consideration of a bill or joint resolution
reported by a committee not having that jurisdiction. A
point of order against a tax or tariff measure in such
a bill, joint resolution, or amendment thereto may be
raised at any time during pendency of that measure for
amendment.
Based on the precedents of the House, especially those
involving Rule XXI(5)(a), the following statements can be made
concerning points of order made under the rule.
1. Timeliness. The point of order can be raised at any
point during consideration of the bill. However, that section
of the bill in which the ``tax or tariff'' provision lies must
either have been previously read or currently open for
amendment. A point of order may not be raised after the
Committee of the Whole has risen and reported the bill to the
House. A point of order against an amendment must be made prior
to its adoption.
2. Effect. If a point of order is sustained, the effect is
that the provision in the bill or amendment is automatically
deleted.
3. Substance over form. A provision need not involve an
amendment to the Internal Revenue Code or the Harmonized Tariff
Schedule in order to be determined to be a ``tax or tariff''
provision.
4. Revenue decreases and increases. A provision need not
raise revenue in order to be found to be a ``tax or tariff
measure.'' Provisions which would have the effect of decreasing
revenues are also covered by the rule. Similarly, provisions
which could have a revenue effect have been determined to be
covered by the rule.
The following is a detailed listing of each of the
occasions on which points of order have been sustained:
G. Points of Order--House Rule XXI Chronological List
June 28, 2007
H.R. 2829, Financial Services and General Government
Appropriations Act, 2008
A point of order was raised against Section 106 of the
bill, which would have limited funds to the IRS for the purpose
of renewing, extending, administering, implementing or
enforcing any qualified tax collection contract. Mr. Serrano
conceded the point of order. The point of order was sustained,
and the provision was stricken from the bill. [110-1, H7352]
June 13, 2006
H.R. 5576, Transportation, Treasury, Housing and Urban
Development, the Judiciary, and Related Agencies
Appropriations Act, 2007
A point of order was raised against Section 206 of the
bill, which would have limited funds to the IRS and prohibit
its ability to provide and tax preparation software or online
tools.
The chair ruled that the provision was in violation of Rule
XXI, clause 2. The point of order was sustained, and the
provision was stricken from the bill. [109-2, H3849-3850]
June 14, 2006
H.R. 5576, Transportation, Treasury, Housing and Urban
Development, the Judiciary, and Related Agencies
Appropriations Act, 2007
A point of order was raised against an amendment offered by
Representative Tiahrt, which would have limited funds to the
IRS and prohibit its ability to provide and tax preparation
software or online tools.
Representative Tiahrt withdrew his amendment. [109-2,
H3930]
May 23, 2006
H.R. 5384, Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations
Act, 2007
A point of order was raised against an amendment offered by
Representative DeLauro, which would have increased the bill's
appropriation for waste and water grant programs by $689
million and paid for this increase by reducing the size of the
tax cut for those making over one million dollars.
The chair ruled that the provision proposes to change
existing law and constitutes legislation on an appropriations
bill and, therefore, violates clause 2 of Rule XXI. The point
of order was sustained, and the amendment was not in order.
[109-2, H3063]
May 19, 2006
H.R. 5385, Military Construction and Veterans Affairs and
Related Agencies Appropriations Act, 2007
Points of order were raised against three amendments
offered by Representatives Edwards, Farr, and Obey, which would
have raised taxes to offset program funding increases. The
chair ruled that these provisions proposed to change existing
law and constituted legislation on an appropriations bill and,
therefore, violated clause 2 of Rule XXI. The points of order
were sustained, and the amendments were not in order. [109-2,
H2922-2931]
June 30, 2005
H.R. 3058, Transportation, Treasury, Housing and Urban
Development, the Judiciary, the District of
Columbia, and Independent Agencies Appropriations
Act, 2006
A point of order was raised against an amendment offered by
Representative Simmons, which would have limited the use of
funds to enter into, implement, or provide oversight of
contracts between the Secretary of the Treasury, or his
designee, and private collection agencies. Representative
Simmons withdrew his amendment. [109-1, H3640]
June 29, 2005
H.R. 3058, Transportation, Treasury, Housing and Urban
Development, the Judiciary, the District of
Columbia, and Independent Agencies Appropriations
Act, 2006
A point of order was raised against section 218 of the
bill, which would direct the Secretary of the Treasury to
submit to the Committees on Appropriations a report defining
currency manipulation and what actions would be construed as
another nation manipulating its currency, and describing how
statutory provisions addressing currency manipulation by
America's trading partners contained in, and relating to, title
22 U.S.C. 5304, 5305, and 286y can be better clarified
administratively to provide for improved and more predictable
evaluation. The chair ruled that the provision was in violation
of Rule XXI, clause 2. The point of order was sustained, and
the provision was stricken from the bill. [109-1, H5422]
June 14, 2005
HR. 2862, Science, State, Justice, Commerce, and Related
Agencies Appropriations Act, 2006
A point of order was raised against an amendment offered by
Representative Obey, which would have increased funding for the
EDA by $53 million and paid for this increase by reducing the
size of the tax cut for those making over one million dollars.
The chair ruled that the provision proposes to change
existing law and constitutes legislation on an appropriations
bill and, therefore, violates clause 2 of Rule XXI. The point
of order was sustained, and the amendment was not in order.
[109-1, H4437]
May 26, 2005
H.R. 2528, Military Quality of Life and Veterans Affairs
Appropriations Act, 2006
A point of order was raised against an amendment offered by
Representative Obey, which would have increased the bill's
appropriation for veterans medical care by $2.6 billion and
paid for this increase by reducing the size of the tax cut for
those making over one million dollars.
The chair ruled that the provision proposes to change
existing law and constitutes legislation on an appropriations
bill and, therefore, violates clause 2 of Rule XXI. The point
of order was sustained, and the amendment was not in order.
[109-1, H4106]
May 19, 2005
H.R. 2361, Department of the Interior, Environment, and
Related Agencies Appropriations Act, 2006
A point of order was raised against an amendment offered by
Representative Obey, which would have increased the bill's
appropriation for the Clean Water State Revolving Fund by
$500,000 and paid for this increase by reducing the size of the
tax cut for those making over one million dollars.
The chair ruled that the provision proposes to change
existing law and constitutes legislation on an appropriations
bill and, therefore, violates clause 2 of Rule XXI. The point
of order was sustained, and the amendment was not in order.
[109-1, H3640]
May 17, 2005
H.R. 2360, Department of Homeland Security Appropriations
Act, 2006
A point of order was raised against an amendment offered by
Representative Obey, which would have increased the bill's
appropriation for Customs and Border Protection and paid for
this increase by reducing the size of the tax cut for those
making over one million dollars.
The chair ruled that the provision proposes to change
existing law and constitutes legislation on an appropriations
bill and, therefore, violates clause 2 of Rule XXI. The point
of order was sustained, and the amendment was not in order.
[109-1, H3398]
September 14, 2004
H.R. 5025, Transportation, Treasury, and Independent
Agencies Appropriations Act, 2005
A point of order was raised against section 644 of the
bill, which would have amended section 6402 of the Internal
Revenue Code of 1986 by adding a new subsection that allows for
the offset of federal tax refunds to collect delinquent state
unemployment compensation overpayments. The chair ruled that
the provision was in violation of Rule XXI, clause 2. The point
of order was sustained, and the provision was stricken from the
bill. [108-2, H7176]
September 14, 2004
H.R. 5025, Transportation, Treasury, and Independent
Agencies Appropriations Act, 2005
A point of order was raised against section 643 of the
bill, which would have amended section 453(j) of the Social
Security Act to allow access to data in the National Directory
of New Hires for use in collecting delinquent non-tax federal
debt. The chair ruled that the provision was in violation of
Rule XXI, clause 2. The point of order was sustained, and the
provision was stricken from the bill. [108-2, H7176]
September 14, 2004
H.R. 5025, Transportation, Treasury, and Independent
Agencies Appropriations Act, 2005
A point of order was raised against section 642 of the
bill, which would have amended Title 31 of the U.S. Code to
allow the Federal Government to collect debts that are more
than 10 years old by withholding federal tax refunds or
garnishing Social Security benefits. The chair ruled that the
provision was in violation of Rule XXI, clause 2. The point of
order was sustained, and the provision was stricken from the
bill. [108-2, H7176]
September 9, 2004
H.R. 5006, Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriations
Act, 2005
A point of order was raised against an amendment offered by
Representative Brown (OH), which would have stopped the
increase of Part B Medicare premiums, effectively leaving them
at their current dollar amount. The chair ruled that the
provision would provide new budget authority in excess of the
suballocation provided by the Appropriations Committee, and
therefore violated section 302(f) of the Congressional Budget
Act of 1974. The point of order was sustained, and the
amendment was not in order. [108-2, H6945]
September 8, 2004
H.R. 5006, Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriations
Act, 2005
A point of order was raised against section 219(b) of the
bill, which created a Medicare claims processing fee for
duplicative or incorrect claims for Medicare Part A or B
services. The chair ruled that the provision was in violation
of Rule XXI. The point of order was conceded, sustained, and
the provision was stricken from the bill. [108-2, H6836]
June 18, 2004
H.R. 4567, Department of Homeland Security Appropriations
Act, 2005
A point of order was raised against an amendment offered by
Representative Sherman, which would have limited the funds made
available in this Act for processing the importation of any
article which is the product of Iran. The chair ruled that the
provision was in violation of clause 5(a) of Rule XXI. The
point of order was sustained, and the amendment was not in
order. [108-2, p. H4551]
July 10, 2003
H.R. 2660, Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriations
Act, 2004
A point of order was raised against section 217(B) of the
bill, which created a Medicare Claims Processing fee. An
October 1, 2003, requirement assured a policy for providers to
submit all Medicare claims electronically. Since most
electronic billing systems eliminate inaccurate and duplicate
claims, and because current law provided the proper small
business exemption, the user fee was unnecessary. The chair
ruled that the provision was in violation of Rule XXI, clause
2(b). The point of order was conceded, sustained, and the
provision was stricken from the bill. [108-1, p. H6560]
July 10, 2003
H.R. 2660, Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriation
Act, 2004
A point of order was raised against an amendment offered by
Representative Obey, which would have provided a 1-percentage
add-on to the Federal assistance to every State for their
Medicaid programs. This would have been paid for through a
reduction in the size of the tax cut for persons who make more
than $1 million a year. The chair ruled that the amendment
constituted legislation in violation of Rule XXI, clause 2(c),
and in addition, constituted a tax measure in violation of Rule
XXI, clause 5(a). The point of order was conceded and
sustained. [108-1, p. H6547]
July 23, 2003
H.R. 2799, Departments of Commerce, Justice, and State, the
Judiciary, and Related Agencies Appropriations Act,
2004
A point of order was raised against an amendment offered by
Representative Levin, which would forbid expenditure of funds
that would be used to negotiate free trade agreements that did
not contain certain listed provisions, which imposed new duties
that were not required by law and made the appropriations
contingent upon the performance of said duties and on
successful trade negotiations with other countries. The chair
ruled that the provision was in violation of Rule XXI, clause
2. The point of order was sustained. [108-1, p. H7337-7339]
September 4, 2003
H.R. 2989, Transportation, Treasury, and Independent
Agencies Appropriations Act, 2004
A point of order was raised against portions of section 631
of the bill, which would have amended the Trade Agreements Act
of 1979. The provision exempted limitations on procurement. The
chair ruled that the provision was in violation of Rule XXI,
clause 2(b). The point of order was conceded, sustained and the
language was stricken from the bill. [108-1, p. H7913]
September 4, 2003
H.R. 2989, Transportation, Treasury, and Independent
Agencies Appropriations Act, 2004
A point of order was raised against the contents of Section
164 of the bill, which amended the Buy America requirements for
transit capital purchases of steel, iron, manufactured goods,
and rolling stock. The chair ruled that these provisions were
in violation of Rule XXI. The point of order was conceded,
sustained, and the section was stricken from the bill. [108-1,
p. H7912-7913]
September 8, 1999
H.R. 2684, U.S. Departments of Veterans Affairs and Housing
and Urban Development Appropriations for 2000
A point of order was raised against an amendment offered by
Representative Edwards, which would have offset an increase in
funding for veterans' health care by postponing the
implementation of a capital gains tax cut. The chair ruled that
the amendment constituted legislation in violation of Rule XXI,
clause 2(c), and, in addition, constituted a tax measure in
violation of Rule XXI, clause 5(a). The point of order was
sustained, and the amendment ruled not in order. [106-1, p.
H7923]
September 3, 1997
H.R. 2159, Foreign Operations Appropriations for Fiscal
Year 1998
A point of order was raised against section 539 of the
bill, which would have restricted the President's ability to
issue an executive order lifting import sanctions against
Yugoslavia (Serbia). The Chair ruled that since current law
allowed the President to waive the application of certain
sanctions, including import prohibitions which affect tariff
collections, the provision in question was a tariff measure
within the meaning of Rule XXI, clause 5(b). The point of order
was sustained, and the provision stricken from the bill. [105-
1, p. H6731]
July 17, 1996
H.R. 3756, Treasury, Postal Service, and General Government
Appropriations Act of 1997
A point of order was raised against an amendment which
prohibited the use of funds by the United States Customs
Service to take any action that allowed certain imports into
the United States from the People's Republic of China. The
point of order was sustained. [104-2, p. H7708]
May 9, 1995
H.R. 1361, Coast Guard Authorization
A point of order was raised against an amendment which
increased certain fees for large foreign-flag cruise ships. The
Chair ruled that by increasing the fees charged by the Coast
Guard for inspecting large foreign-flag cruise ships by an
unspecified amount in order to offset a decrease in fees for
other vessels, the amendment attenuated the relationship
between the amount of the fee and the cost of the particular
government activity for which it was assessed. Therefore the
increased fee qualified as a tax or tariff within the meaning
of Rule XXI, clause 5(b). The point of order was sustained, and
the amendment ruled out of order. [1-4-1, p. H4593]
June 15, 1994
H.R. 4539, Treasury, Postal Service, and General Government
Appropriation for Fiscal Year 1995
A point of order was raised against section 527 of the
bill, which would have amended the HTS to create a new tariff
classification. The new classification would have changed the
rate of duty on the import of certain fabrics intended for use
in the manufacture of hot air balloons, thus having direct
impact on customs revenues. The point of order was conceded and
sustained, and the provision was stricken from the bill. [103-
2, p. H4531]
September 16, 1992
H.R. 5231, The National Competitiveness Act of 1992
A point of order was raised against an amendment offered by
Representative Walker. The bill was reported solely from the
Committee on Science and Technology and amended the Internal
Revenue Code to provide, inter alia, changes in the tax
treatment of capital gains.
The Chair sustained the point of order without elaboration.
[H102, p. H8621]
October 23, 1990
H.R. 5021, Department of Commerce, Justice and State, the
Judiciary and Related Agencies Appropriations Act,
1991
A point of order was raised against amendment 139 which
increased the rate of fees paid to the Securities and Exchange
Commission at the time of filing a registration statement. The
Chair ruled that since the amendment provided that the
increased level of fees would be deposited in the Treasury, the
fee involved was in reality a tax and the revenues were to be
used to defray general governmental costs. The point of order
was conceded and sustained. [101-2, p. H11412]
July 13, 1990
H.R. 5241, Treasury, Postal Service and General Government
Appropriations Act of 1991
A point of order was raised against section 528 which
prohibited that ``no funds appropriated'' would be used to
impose or assess any tax under section 4181 of the Internal
Revenue Code relating to the excise tax on the manufacture of
firearms. The point of order was conceded and sustained. [101-
2, p. H. 4692]
July 13, 1990
H.R. 5241, Treasury, Postal Service and General Government
Appropriations Act of 1991
A point of order was raised against section 524 which
prohibited the Internal Revenue Service from enforcing rules
governing the antidiscrimination rules of the exclusion for
employer provided health-care plans (section 89 of the Internal
Revenue Code). The point of order was conceded and sustained.
[101-2, p. H4692]
October 5, 1989
H.R. 3299, Omnibus Budget Reconciliation Act of 1989
A point of order was raised against section 3201 which
imposed fees on the filing of certain forms required to be
filed annually in connection with maintaining pension and
benefit plans. The point of order was sustained with the Chair
ruling that the revenue raised funded ``general government
activity.'' [101-1, p. H6662]
October 4, 1989
H.R. 3299, Omnibus Budget Reconciliation Act of 1989
A point of order was raised against section 3156 which
imposed a ``Termination Fee.'' Under the provision of the bill,
an employer who terminated a pension plan in a standard
termination was required to pay a $200-per-participant fee to
the Pension Benefit Guaranty Corporation (PBGC), the Federal
insurance agency established to insure defined benefit pension
plans against insolvency. The point of order was conceded and
sustained. [101-1, p. H6621]
October 4, 1989
H.R. 3299, Omnibus Budget Reconciliation Act of 1989
A point of order was raised against section 3131(b) which
exempted multi-employer pension plans from the full funding
limits of the Internal Revenue Code, section 412(c)(7). This
provision directly amended the Internal Revenue Code to allow
the deductibility of contributions to a multi-employer pension
plan in excess of the full funding limit. The point of order
was conceded and sustained. [101-1, p. H6622]
October 4, 1989
H.R. 3299, Omnibus Budget Reconciliation Act of 1989
A point of order was raised against section 7002 which
imposed an annual fee of $1 per acre on the holder of Outer
Continental Shelf leases. This fee has been designated to
offset the costs of ocean related environmental research,
assessment, and protection programs. The point of order was
sustained with the Chair stating that ``a provision raising
revenue to finance general government functions improperly
characterized as a tax within the jurisdiction of Clause 5(b)
of Rule XXI.'' [101-1, p. H6610]
October 4, 1989
H.R. 3299, Omnibus Budget Reconciliation Act of 1989
A point of order was raised against section 7002 which
imposed a fee of $20 per passenger on vessels engaged in U.S.
cruise trade or which offer off-shore gambling. The proceeds of
this fee were to be deposited in both the Harbor Maintenance
Trust Fund and the Treasury's general fund. The point of order
was conceded and sustained. [101-1, p. H6620]
September 30, 1988
H.R. 4637, Conference Agreement To Accompany the Foreign
Operations, Export Financing and Related Programs
Appropriations Act of 1989
A point of order was raised against the motion to concur in
the Senate amendment No. 176 which provided that S. 2848
(Sanctions Against Iraqi Chemical Weapons Use Act) be added to
the bill. The point of order was conceded and sustained. [100-
2, p. H9236]
June 25, 1987
H.R. 3545, Budget Reconciliation Act of 1987
A point of order was raised against the section of the bill
providing that ``all earnings and distributions'' from the
Enjebi Community Trust Fund, ``shall not be subject to any form
of Federal, State, or local taxation.'' The point of order was
conceded and sustained. [100-1, p. H5539-40]
August 1, 1986
H.R. 5294, Appropriations, Treasury, Postal Service and
General Government Appropriations, 1987
A point of order was raised against section 103 which
denied funds to the Internal Revenue Service to impose vesting
requirements for qualified pension funds more stringent than 4/
40. As a result, legally collectible taxes on employer
contributions to such plans would be indefinitely deferred. The
point of order was conceded and sustained. [99-2, p. H5311]
August 1, 1986
H.R. 5294, Appropriations, Treasury, Postal Service and
General Government Appropriations, 1987
A point of order was raised against section 3 which
prohibited the use of funds to implement regulations issued by
the Department of the Treasury to implement section 274(d) of
the Internal Revenue Code relating to the duty imposed on
taxpayers to substantiate deductibility of certain expenses
relating to travel, gifts, and entertainment.
The Chair sustained the point of order stating that a
limitation otherwise in order under Clause 2(c), of House Rule
XXI which ``effectively and inherently either preclude[s] the
IRS from collecting revenues otherwise due to be [owed] under
provision of the Internal Revenue Code or require[s] the
collection of revenue not legally due and owing constitutes a
tax provision within the meaning of Rule XXI, Clause 5(b).''
The Chair also noted that when the point of order was
raised that under the rule the point of order against the
provision could be raised at any point during the consideration
of the bill. [99-2, p. H5310]
October 24, 1986
H.R. 3500, Budget Reconciliation Act of 1985
A point of order was raised against section 3113. The
provision in the reconciliation bill reported from the Budget
Committee contained a recommendation from the Committee on
Education and Labor to exclude certain interest on obligations
to Student Loan Marketing Association from Application of
Internal Revenue Code (IRC), section 265 which denies a
deduction for certain expenses and interest relating to the
production of tax-exempt income. The point of order was
sustained. [99-1, p. H5310]
October 24, 1985
H.R. 3500, Budget Reconciliation Act of 1985
A point of order was raised against section 6701 which had
been reported from the Committee on the Budget containing a
recommendation of the Committee on Merchant Marine and
Fisheries. Section 6701 expanded tax benefits available to ship
owners through the ``capital construction fund'' (section 7518
of the Internal Revenue Code), by permitting repatriation of
foreign-source income to avoid U.S. taxes and expanding the
definition of vessels eligible to establish such tax-exempt
funds. [99-1, p. H9189]
July 26, 1985
H.R. 3036, Appropriations, Treasury, Postal Service, and
General Government Appropriation, 1986
A point of order was raised against section 106 which
prohibited the use of funds to implement or enforce regulations
imposing or collecting a tax on the interest deferral from
entrance or accommodation fees paid by elderly residents of
continuing care facilities (section 7872 of the Internal
Revenue Code). The Chair sustained the point of order against
the provision as a tax provision within the meaning of House
Rule XXI, Clause 5(b). [99-1, p. H6418]
July 11, 1985
H.R. 1555, International Security and Development Act of
1985
A point of order was raised against section 1208 which
denied trade benefits to Afghanistan, provided for the denial
of most favored nation status to Afghanistan and denied trade
credits to Afghanistan. The point of order was conceded and
sustained. [99-1, p. H5489]
June 4, 1985
H.R. 1460, Anti-Apartheid Act of 1985
A point of order was raised against an amendment to
prohibit the entry of South African Krugerrands or gold coins
into the customs territory of the United States unless uniform
5 percent fee were paid. The point of order was sustained on
the grounds that the fee was equivalent to a tariff uniform
charge imposed at ports of entry with proceeds deposited in the
Treasury. [99-1, p. H3762]
September 12, 1984
H.R. 5798, conference report to accompany the
Appropriations, Treasury, Postal Service, Executive
Office of the President and certain independent
agencies Appropriation, 1985
A point of order was raised against a Senate amendment, No.
92 which amended the existing customs law under the Tariff Act
of 1930 with respect to seizures and forfeitures of property by
the Customs Service. The point of order was conceded and
sustained. [98-2, p. H9407]
September 12, 1984
H.R. 5798, conference report to accompany the
Appropriations, Treasury, Postal Service, Executive
Office of the President and certain independent
agencies Appropriation, 1985
A point of order was raised against a Senate amendment, No.
26 which amended the tariff schedule of the United States
(TSUS) to provide duty-free importation of a telescope for the
University of Arizona. The point of order was conceded and
sustained. [98-2, p. H9396]
September 12, 1984
H.R. 5798, conference report to accompany the
Appropriations, Treasury, Postal Service, Executive
Office of the President and certain independent
agencies Appropriation, 1985
A point of order was raised against a Senate amendment, No.
24 which provided that ``none of the funds appropriated by this
act or any other act'' shall be used to impose of assess the
manufacturer's excise tax on sporting goods. The point of order
specifically stated that the term ``tax'' and ``tariff' under
House Rule XXI, Clause 5(b), included provisions such as these
contained in the amendment which would result less revenue
spent than under the operation of existing law. The point of
order was conceded and sustained. [98-2, p. H9395-9396]
October 27, 1983
H.R. 4139, conference report to accompany the
Appropriations Treasury, Postal Service, Executive
Office of the President and certain independent
agencies Appropriation, 1984
The Chair sustained a point of order against section 511
which would have prohibited the Customs Service from enforcing
a provision of law permitting agricultural products to enter
the United States duty-free under the CBI. The Chair ruled that
the effect of the provision was to cause duties on certain
imports to be imposed where none is required and to require
collections of revenue contrary to existing tariff laws and
that, as a result, section 511 was a tariff provision rather
than a limitation of appropriated funds. [98-1, p. H8717]
September 21, 1983
H.R. 1036, Community Renewal Employment Act
The Chair sustained a point of order against a motion to
recommit a bill to a committee without jurisdiction over
revenue measures (the Committee on Education and Labor), and to
report the bill back to the House with tax provisions relating
to ``enterprise zones.'' The motion was ruled to violate House
Rule XVI, Clause 7, and House Rule XXI Clause 5(b). [98-1, p.
H7244]
H. Restrictions on ``Federal Income Tax Rate Increases''
House Rule XXI, clause 5(b) and (c) prohibit retroactive
Federal income tax rate increases and require a supermajority
[3/5] vote for any bill containing a prospective Federal income
tax rate increase. The wording of the rule and its legislative
history make it clear that the rule applies only to increases
in specific statutory rates in the Internal Revenue Code and
not to provisions merely because they raise revenue or
otherwise modify the income tax base.
Appendix II. Historical Note
The Committee on Ways and Means was first established as an
ad hoc committee in the first session of the First Congress, on
July 24, 1789. Representative Fitzsimons, from Pennsylvania, in
commenting on the report of a select committee concerning
appropriations and revenues, pointed out the desirability of
having a committee to review the expenditure needs of the
Government and the resources available, as follows:
The finances of America have frequently been mentioned in
this House as being very inadequate to the demands. I have
never been of a different opinion, and do believe that the
funds of this country, if properly drawn into operation, will
be equal to every claim. The estimate of supplies necessary for
the current year appears very great from a report on your
table, and which report has found its way into the public
newspapers. I said, on a former occasion, and I repeat it now,
notwithstanding what is set forth in the estimate, that a
revenue of $3 million in specie, will enable us to provide
every supply necessary to support the Government, and pay the
interest and installments on the foreign and domestic debt. If
we wish to have more particular information on these points, we
ought to appoint a Committee on Ways and Means, to whom, among
other things, the estimate of supplies may be referred, and
this ought to be done speedily, if we mean to do it this
session.
After discussion, the motion was agreed to and a committee
consisting of one Member from each State (North Carolina and
Rhode Island had not yet ratified the Constitution) was
appointed as follows: Messrs. Fitzsimons (Pennsylvania), Vining
(Delaware), Livermore (New Hampshire), Cadwalader (New Jersey),
Laurance (New York), Wadsworth (Connecticut), Jackson
(Georgia), Gerry (Massachusetts), Smith (Maryland), Smith
(South Carolina), and Madison (Virginia).
While there does not appear to be any direct relationship,
it is interesting to note that the appointment of this ad hoc
committee came within a few weeks after the House, in Committee
of the Whole, had spent a good part of the months of April,
May, and June in wrestling with the details involved in writing
bills ``for laying a duty on goods, wares, and merchandises
imported into the United States'' and for imposing duties on
tonnage. Tariffs, of course, became a prime revenue source for
the new government.
However, the results of this ad hoc committee are not
clear. It existed for a period of only 8 weeks, being dissolved
on September 17, 1789, with the following order:
That the Committee on Ways and Means be discharged from
further proceeding on the business referred to them, and that
it be referred to the Secretary of the Treasury to report
thereon.
It has also been suggested by one student that the
Committee was dissolved because Alexander Hamilton had become
Secretary of the newly created U.S. Department of the Treasury,
and thus it was presumed that the U.S. Department of the
Treasury could provide the necessary machinery for developing
information which would be needed. During the next 6 years
there was no Committee on Ways and Means or any other standing
committee for the examination of estimates. Rather, ad hoc
committees were appointed to draw up particular pieces of
legislation on the basis of decisions made in the Committee of
the Whole House. On November 13, 1794, a rule was adopted
providing that:
All proceedings touching appropriations of money
shall be first moved and discussed in a Committee on
the Whole House.
In the next Congress historians have suggested that the
House was determined to curtail Secretary Hamilton's influence
by first setting up a Committee on Ways and Means and requiring
that Committee to submit a report on appropriations and revenue
measures before consideration in the Committee of the Whole
House. It was also said that this Committee on Ways and Means
was put on a more or less standing basis since such a committee
appeared at some point in every Congress until it was made a
permanent committee.
In the first session of the 7th Congress, Tuesday, December
8, 1801, a resolution was adopted as follows:
Resolved, That a standing Committee on Ways and Means
be appointed, whose duty it shall be to take into
consideration all such reports of the Treasury
Department, and all such propositions, relative to the
revenue as may be referred to them by the House; to
inquire into the state of the public debt, of the
revenue, and of the expenditures; and to report, from
time to time, their opinion thereon.
The following Members were appointed: Messrs. Randolph
(Virginia), Griswold (Connecticut), Smith (Vermont), Bayard
(Delaware), Smilie (Pennsylvania), Read (Massachusetts),
Nicholson (Maryland), Van Rensselaer (New York), Dickson
(Tennessee).
On Thursday, January 7, 1802, the House agreed to standing
rules which, among other things, provided for standing
committees, including the Committee on Ways and Means. The
relevant part of the rules in this respect read as follows:
A Committee on Ways and Means, to consist of seven Members;
* * * * * * *
It shall be the duty of the said Committee on Ways and
Means to take into consideration all such reports of the U.S.
Department of the Treasury, and all such propositions relative
to the revenue, as may be referred to them by the House; to
inquire into the state of the public debt, of the revenue, and
of the expenditures, and to report, from time to time, their
opinion thereon; to examine into the state of the several
public departments, and particularly into the laws making
appropriations of moneys, and to report whether the moneys have
been disbursed conformably with such laws; and also to report,
from time to time, such provisions and arrangements, as may be
necessary to add to the economy of the departments, and the
accountability of their officers.
It has been said that the jurisdiction of the Committee was
so broad in the early 19th century that one historian described
it as follows:
It seemed like an Atlas bearing upon its shoulders
all the business of the House.
The jurisdiction of the Committee remained essentially the
same until 1865 when the control over appropriations was
transferred to a newly created Committee on Appropriations and
another part of its jurisdiction was given to a newly created
Committee on Banking and Currency. This action followed rather
extended discussion in the House, too lengthy to review here.
During the course of that discussion, however, the
following observations are of some historical interest.
Representative Cox, who was handling the motion to divide the
Committee, gave a very picturesque discussion of the many
varied and heavy duties which had fallen On the Committee over
the years He observed:
And yet, sir, powerful as the Committee is
constituted, even their powers of endurance, physical
and mental, are not adequate to the great duty which
has been imposed by the emergencies of this historic
time. It is an old adage, that ``whoso wanteth rest
will also want of might''; and even an Olympian would
faint and flag if the burden of Atlas is not relieved
by the broad shoulders of Hercules.
He continued:
I might give here a detailed statement of the amount
of business thrown upon that Committee since the
commencement of the war. But I prefer to append it to
my remarks. Whereas before the war we scarcely expended
more than $70 million a year, now, during the five
sessions of the last two Congresses, there has been an
average appropriation of at least $800 million per
session. The statement which I hold in my hand shows
that during the first and extra session of the 37th
Congress there came appropriation bills from the
Committee on Ways and Means amounting to
$226,691,457.99. I say nothing now of the loan and
other fiscal bills emanating from that Committee. * * *
During the present session I suppose it would be a fair
estimate to take the appropriations of the last session
of the 37th Congress, say $900 million.
These are appropriation bills alone. They are
stupendous, and but poorly symbolize the immense labors
which the internal revenue, tariff, and loan bills
imposed on the Committee. * * * And this business of
appropriations is perhaps not one-half of the labor of
the Committee. There are various and important matters
upon which they act, but upon which they never report.
Their duties comprehend all the varied interests of the
United States; every element and branch of industry,
and every dollar or dime of value. They are connected
with taxation, tariffs, banking, loan bills, and ramify
to every fiber of the body-politic. All the springs of
wealth and labor are more or less influenced by the
action of this Committee. Their responsibility is
immense, and their control almost imperial over the
necessities, comforts, homes, hopes, and destinies of
the people. All the values of the United States, which
in the census of 1860 (page 194) amount to nearly $17
billion, or, to be exact, $16,159,616,068, are affected
by the action of that Committee, even before their
action is approved by the House. Those values fluctuate
whenever the head of the Committee on Ways and Means
rises in his place and proposes a measure. The price of
every article we use trembles when he proposes a gold
bill or a loan bill, or any bill to tax directly or
indirectly. * * * * * * the interests connected with
these economical questions are of all questions those
most momentous for the future. Parties, statesmanship,
union, stability, all depend upon the manner in which
these questions are dealt with.
Representative Morrill (who was subsequently appointed
chairman of the Committee on Ways and Means in the succeeding
Congress, and who still later became chairman of the Senate
Committee on Finance after he became a Senator) observed as
follows:
I am entirely indifferent as to the disposition which
shall be made of this subject by the House. So far as I
am myself concerned, I have never sought any position
upon any committee from the present or any other
Speaker of the House, and probably never shall. I have
no disposition to press myself hereafter for any
position. In relation to the proposed division of the
Committee on Ways and Means, the only doubt that I have
is the one expressed by my colleague on that Committee,
Representative Stevens, in regard to the separation of
the questions of revenue from those relating to
appropriations. In ordinary times of peace I should
deem it almost indispensable and entirely within their
power that this Committee should have the control of
both subjects, in order that they might make both ends
meet, that is, to provide a sufficient revenue for the
expenditures. That reason applies now with greater
force; but it may be that the Committee is overworked.
It is true that for the last 3 or 4 years the labors of
the Committee on Ways and Means have been incessant,
they have labored not only days but nights; not only
weekends but Sundays. If gentlemen suppose that the
Committee have permitted some appropriations to be
reported which should not have been permitted they
little understand how much has been resisted.
The influence the Committee came not only from the nature
of its jurisdiction but also because for many years the
chairman of the Committee was also ad hoc majority Floor leader
of the House.
When the revolt against Speaker Cannon took place, and the
Speaker's powers to appoint the Members of committees were
curtailed, the Majority Members on the Committee on Ways and
Means became the Committee on Committees. Subsequently, this
power was disbursed to the respective party caucuses, beginning
in the 94th Congress.
Throughout its history, many famous Americans have served
on the Committee on Ways and Means. The long and distinguished
list includes 8 Presidents of the United States, 8 Vice
Presidents, 4 Justices of the Supreme Court, 34 Cabinet
members, and quite interestingly, 21 Speakers of the House of
Representatives. This latter figure represents nearly one-half
of the 51 Speakers who have served since 1789 through the end
of the 110th Congress. See the alphabetical list which follows
for names.
Major positions held by former members of the Committee on Ways and
Means
President of the United States:
George H.W. Bush, Texas
Millard Fillmore, New York
James A. Garfield, Ohio
Andrew Jackson, Tennessee
James Madison, Virginia
William McKinley, Jr., Ohio
James K. Polk, Tennessee
John Tyler, Virginia
Vice President of the United States:
John C. Breckenridge, Kentucky
George H.W. Bush, Texas
Charles Curtis, Kansas
Millard Fillmore, New York
John N. Garner, Texas
Elbridge Gerry, Massachusetts
Richard M. Johnson, Kentucky
John Tyler, Virginia
Justice of the Supreme Court:
Philip P. Barbour, Virginia
Joseph McKenna, California
John McKinley, Alabama
Fred M. Vinson, Kentucky (Chief Justice)
Speaker of the House of Representatives:
Nathaniel P. Banks, Massachusetts
Philip P. Barbour, Virginia
James G. Blaine, Maine
John G. Carlisle, Kentucky
Langdon Cheves, South Carolina
James B. (Champ) Clark, Missouri
Howell Cobb, Georgia
Charles F. Crisp, Georgia
John N. Gamer, Texas
John W. Jones, Virginia
Michael C. Kerr, Indiana
Nicholas Longworth, Ohio
John W. McCormack, Massachusetts
James K. Polk, Tennessee
Henry. T. Rainey, Illinois
Samuel J. Randall, Pennsylvania
Thomas B. Reed, Maine
Theodore Sedgwick, Massachusetts
Andrew Stevenson, Virginia
John W. Taylor, New York
Robert C. Winthrop, Massachusetts
Cabinet Member:
Secretary of State:
James G. Blaine, Maine
William J. Bryan, Nebraska
Cordell Hull, Tennessee\1\
---------------------------------------------------------------------------
\1\Recipient of Nobel Peace Prize in 1945.
---------------------------------------------------------------------------
Louis McLean, Delaware
John Sherman, Ohio
Secretary of the Treasury:
George W. Campbell, Tennessee
John G. Carlisle, Kentucky
Howell Cobb, Georgia
Thomas Corwin, Ohio
Charles Foster, Ohio
Albert Gallatin, Pennsylvania
Samuel D. Ingham, Pennsylvania
Louis McLean, Delaware
Ogden L. Mills, New York
John Sherman, Ohio
Philip F. Thomas, Maryland
Fred M. Vinson, Kentucky
Attorney General:
James P. McGranery, Pennsylvania
Joseph McKenna, California
A. Mitchell Palmer, Pennsylvania
Caesar A. Rodney, Delaware
Postmaster General:
Samuel D. Hubbard, Connecticut
Cave Johnson, Tennessee
Horace Maynard, Tennessee
William L. Wilson, West Virginia
Secretary of the Navy:
Thomas W. Gilder, Virginia
Hilary A. Herbert, Alabama
Victor H. Metcalf, California
Claude A. Swanson, Virginia
Secretary of the Interior:
Rogers C. B. Morton, Maryland
Jacob Thompson, Mississippi
Secretary of Commerce and Labor:
Victor H. Metcalf, California
Secretary of Commerce:
Rogers C. B. Morton, Maryland
Secretary of Agriculture:
Clinton P. Anderson, New Mexico
Appendix III. Statistical Review of the Activities of the Committee on
Ways and Means
A. Number of Bills and Resolutions Referred to the Committee
At the close of the 111th Congress, there had been referred
to the Committee a total of 1,764 bills, representing 20.1
percent of all the public bills introduced in the House of
Representatives.
The following table gives a more complete statistical
review since 1967.
TABLE 1. NUMBER OF BILLS AND RESOLUTIONS REFERRED TO THE COMMITTEE, 90TH THROUGH 111TH CONGRESSES
----------------------------------------------------------------------------------------------------------------
Referred to Committee
Introduced in House on Ways and Means Percentage
----------------------------------------------------------------------------------------------------------------
90th Congress.............................. 24,227 3,806 15.7
91st Congress.............................. 23,575 3,442 14.6
92nd Congress.............................. 20,458 3,157 15.4
93rd Congress.............................. 21,096 3,370 16
94th Congress.............................. 19,371 3,747 19.3
95th Congress.............................. 17,800 3,922 22
96th Congress.............................. 10,196 2,337 22.9
97th Congress.............................. 9,909 2,377 26.4
98th Congress.............................. 8,104 1,904 23.5
99th Congress.............................. 7,522 1,568 20.8
100th Congress............................. 7,043 1,419 22.1
101st Congress............................. 7,640 1,737 22.7
102nd Congress............................. 7,771 1,972 25.4
103rd Congress............................. 6,645 1,496 22.5
104th Congress............................. 5,329 1,071 20.1
105th Congress............................. 5,976 1,509 25.2
106th Congress............................. 6,942 1,762 25.3
107th Congress............................. 7,029 1,941 27.6
108th Congress............................. 6,953 1,541 22.2
109th Congress............................. 8,152 2,152 26.4
110th Congress............................. 9,319 2,386 25.6
111th Congress............................. 8,780 1,764 20.1
----------------------------------------------------------------------------------------------------------------
B. Public Hearings
In the course of the 111th Congress, the Committee on Ways
and Means along with its six subcommittees held public hearings
on a total of 85 days. Many of these hearings dealt with broad
subject matter including the President's fiscal year 2009 and
2010 budget proposals, health and Social Security issues, and
President Obama's trade agenda.
The following table specifies the statistical data on the
number of days and witnesses published on each of the subjects
covered by public hearings in the full Committee during the
111th Congress.
TABLE 2. PUBLIC HEARINGS CONDUCTED BY THE FULL COMMITTEE ON WAYS AND
MEANS
------------------------------------------------------------------------
Number of
Subject and Date --------------------------
Days Witnesses
------------------------------------------------------------------------
2009:
Hearing on Scientific Objectives for 1 3
Climate Change Legislation, February 25.
Hearing on the President's Fiscal Year 1 1
2010 Budget Overview, March 3...........
Hearing on the President's Fiscal Year 1
2010 Budget Overview with OMB Director
Peter R. Orszag, March 4................
Health Reform in the 21st Century: 1 3
Expanding Coverage, Improving Quality
and Controlling Costs, March 11.........
Hearing on Addressing Price Volatility in 1 7
Climate Change Legislation, March 26....
Hearing on Health Reform in the 21st 1 7
Century: Reforming the Health Care
Delivery System, April 1................
Health Reform in the 21st Century: 1 6
Insurance Market Reforms, April 22......
Health Reform in the 21st Century: 1 6
Employer Sponsored Insurance, April 29..
Health Reform in the 21st Century: A 1 1
Conversation with Health and Human
Services Secretary Kathleen Sebelius,
May 6...................................
The Financial Status of The Airport and 1 5
Airway Trust Fund, May 7................
Health Reform in the 21st Century: 1 11
Proposals to Reform the Health System,
June 24.................................
Hearing on Defined Benefit Pension Plan 1 12
Funding Levels and Investment Advice
Rules, October 1........................
--------------------------
Total for 2009....................... 12 63
==========================
2010:
Hearing on the President's Fiscal Year 1 1
2011 Budget Overview with OMB Director
Peter R. Orszag, February 3.............
Hearing on the President's Fiscal Year 1 1
2011 Budget with Treasury Secretary
Timothy F. Geithner, February 3.........
Hearing on China's Exchange Rate Policy, 1 4
March 24................................
Hearing on Energy Tax Incentives Driving 1 12
the Green Job Economy, April 14.........
Hearing on Tax Proposals Related to 1 5
Legislation to Legalize Internet
Gambling, May 19........................
Hearing on China's Trade and Industrial 1 14
Policies, June 16.......................
Hearing on Transfer Pricing Issues, July 1 6
22......................................
Hearing on China's Exchange Rate Policy, 1 10
September 15............................
Hearing on China's Exchange Rate Policy 1 1
with Treasury Secretary Timothy F.
Geithner, September 16..................
--------------------------
Total for 2010....................... 9 54
==========================
Total for both sessions.............. 21 117
------------------------------------------------------------------------
The six Subcommittees of the Committee on Ways and Means
were also very active in conducting public hearings during the
111th Congress. The following table specifies in detail the
number of days and witnesses published by each of the
Subcommittees.
TABLE 3. PUBLIC HEARINGS CONDUCTED BY THE SUBCOMMITTEES OF THE COMMITTEE
ON WAYS AND MEANS
------------------------------------------------------------------------
Number of
Subject and date --------------------------
Days Witnesses
------------------------------------------------------------------------
SUBCOMMITTEE ON TRADE2009:
Hearing on Trade Aspects of Climate 1 5
Change Legislation, March 24............
Hearing on Investment Protections in U.S. 1 5
Trade and Investment Agreements, May 14.
Hearing on Trade Advisory Committee 1 7
System, July 21.........................
Hearing on the Operation, Impact, and 1 18
Future of the U.S. Preference Programs,
November 17.............................
--------------------------
Total for 2009....................... 4 35
==========================
2010:
Hearing on U.S.-Cuba Policy, April 29.... 1 6
Hearing on Customs Trade Facilitation and 1 8
Enforcement in a Secure Environment, May
20......................................
Hearing on Enhancing the U.S.-EU Trade 1 5
Relationship, July 27...................
Hearing on China's Exchange Rate Policy, 1 10
September 15............................
--------------------------
Total for 2010....................... 4 29
==========================
Total................................ 8 64 SUBCOMMITTEE ON OVERSIGHT2009:
Hearing on IRS Assistance for Taxpayers 1 2
Experiencing Economic Difficulties,
February 26.............................
Hearing on the Troubled Asset Relief 1 2
Program: Oversight of Federal Borrowing
and the Use of Federal Monies, March 19.
Hearing on Internal Revenue Service 1 1
Operations and Fiscal Year 2010 Budget
Proposals, June 4.......................
Joint Hearing on Highway and Transit 1 6
Investment Needs, June 25...............
Hearing on Administration of the First- 1 3
Time Homebuyer Tax Credit, October 22...
Joint Hearing on Food Banks and Front- 1 8
Line Charities: Unprecedented Demand and
Unmet Need, November 19.................
--------------------------
Total for 2009....................... 6 22
==========================
2010:
Hearing on the National Taxpayer 1 1
Advocate's 2009 Report on the Most
Serious Problems Encountered by
Taxpayers, March 16.....................
Hearing on Internal Revenue Service 1 1
Operations and the 2010 Tax Return
Filing Season, March 25.................
Hearing on the Alcohol Tax and Trade 1 2
Bureau's Report on Tobacco Smuggling in
the United States, May 27...............
Hearing on Reducing Fraud, Waste and 1 8
Abuse in Medicare, June 15..............
Hearing on the Immediate Need for 1 2
Charitable Assistance in the Gulf Coast
Region, July 20.........................
--------------------------
Total for 2010....................... 5 14
==========================
Total................................ 11 36 SUBCOMMITTEE ON HEALTH2009:
Hearing on MedPAC's Annual March Report 1 1
to the Congress on Medicare Payment
Policy, March 17........................
--------------------------
Total for 2009 1 1
==========================
2010:
Hearing on Reducing Fraud, Waste and 1 8
Abuse in Medicare, June 15..............
Hearing on Efforts to Promote the 1 7
Adoption and Meaningful Use of Health
Information Technology, July 20.........
--------------------------
Total for 2010....................... 2 15
==========================
Total................................ 3 16 SUBCOMMITTEE ON SOCIAL SECURITY2009:
Joint Hearing on Eliminating the Social 1 7
Security Disability Backlog, March 24...
Hearing on the Social Security 1 5
Administration's Provisions in the
American Recovery and Reinvestment Act
of 2009, April 28.......................
Hearing on the Social Security 1 8
Administration's Employment Support
Programs for Disability Beneficiaries,
May 19..................................
Hearing on Clearing the Disability Claims 1 7
Backlogs: The Social Security
Administration's Progress and New
Challenges Arising From the Recession,
November 19.............................
Joint Oversight Hearing on the Recovery 1 3
Act Project to Replace the Social
Security Administration's National
Computer Center, December 15............
--------------------------
Totals for 2009...................... 5 30
==========================
2010:
Oversight Hearing on Social Security 1 7
Administration Field Office Service
Delivery, April 15......................
Joint Hearing on the Social Security 1 7
Disability Claims Backlogs (See Social
Security), April 27.....................
Hearing on Social Security at 75 years: 1 7
More Necessary Now than Ever, July 15...
--------------------------
Totals for 2010...................... 3 21
==========================
Total................................ 8 51 SUBCOMMITTEE ON INCOME SECURITY AND FAMILY
SUPPORT2009:
Hearing on Protecting Lower-Income 1 4
Families While Fighting Global Warming,
March 12................................
Joint Hearing on Eliminating the Social 1 7
Security Disability Backlog (See Social
Security), March 24.....................
Hearing on Implementation of Unemployment 1 6
Insurance Provisions in the Recovery
Act, April 23...........................
Hearing on Proposals to Provide Federal. 1 5
Funding for Early Childhood Home
Visitation Programs, June 9.............
Hearing on the Implementation of the 1 6
Fostering Connections to Success and
Increasing Adoptions Act, September 15..
Hearing on the ``Safety Net's'' Response 1 6
to the Recession, October 8.............
Joint Hearing on Food Banks and Front- 1 8
Line Charities: Unprecedented Demand and
Unmet Need (See Oversight), November 19.
--------------------------
Totals for 2009...................... 7 42
==========================
2010:
Hearing on TANF's Role in Providing 1 6
Assistance to Struggling Families, March
11......................................
Hearing on the Role of Education and 1 6
Training in the TANF Program, April 22..
Joint Hearing on the Social Security 1 7
Disability Claims Backlogs (See Social
Security), April 27.....................
Hearing on the Solvency of the 1 5
Unemployment Insurance System, May 6....
Hearing on Responding to Long-Term 1 5
Unemployment, June 10...................
Hearing to Review Responsible Fatherhood 1 7
Programs, June 17.......................
Hearing to Review the Use of Child 1 5
Welfare Waiver Demonstration Projects to
Promote Child Well-Being, July 29.......
--------------------------
Totals for 2010...................... 7 41
==========================
Total................................ 14 83 SUBCOMMITTEE ON SELECT REVENUE MEASURES2009:
Hearing on Banking Secrecy Practices and 1 4
Wealthy American Taxpayers, March 31....
Hearing on Tax-Exempt and Taxable 1 6
Governmental Bonds, May 21..............
Hearing on the New Markets Tax Credit 1 7
Program, June 18........................
Joint Hearing on Highway and Transit 1 6
Investment Needs, June 25...............
Hearing on Long-Term Financing Options 1 20
For the Highway Trust Fund, including
Member Proposals, July 23...............
Hearing on Revitalizing Distressed 1 6
Communities, October 7..................
Hearing on Foreign Bank Account Reporting 1 5
and Tax Compliance, November 5..........
--------------------------
Totals for 2009...................... 7 54
==========================
2010:
Hearing on Taxes and the Federal Budget, 1 4
March 23................................
Hearing on Infrastructure Banks, May 13.. 1 10
Hearing on RIC Modernization, June 15.... 1 3
Hearing on Reinsurance, July 14.......... 1 4
--------------------------
Totals for 2010...................... 4 21
==========================
Total................................ 11 75
------------------------------------------------------------------------
As the foregoing statistics indicate, during the 111th
Congress the full Committee and its six Subcommittees held
public hearings aggregating a grand total of 85 days, during
which time 514 witnesses testified. There were no field
hearings.
C. Markup Sessions
With respect to markup or business sessions during the
111th Congress, the full Committee and its six Subcommittees
were also very actively engaged. The full Committee held such
sessions on 8 working days, usually both morning and afternoon
sessions, and the Subcommittees an aggregate of 3 working days,
making a grand total of 11 working days of markup or business
sessions for the full Committee and its Subcommittees during
the 111th Congress.
D. Number and Final Status of Bills Reported From the Committee on Ways
and Means in the 111th Congress
During the 111th Congress, the Committee reported to the
House a total of 4 bills favorably. There were 81 bills
containing provisions within the purview of the Committee that
were passed by the House; 44 were enacted into law. This is not
indicative of the total number of bills considered by the
Committee.
Appendix IV. Chairmen of the Committee on Ways and Means and Membership
of the Committee from the 1st through the 111th Congresses
A. Chairmen of the Committee on Ways and Means, 1789 to Present
----------------------------------------------------------------------------------------------------------------
Name State Party Term of service
----------------------------------------------------------------------------------------------------------------
Thomas Fitzsimons................... Pennsylvania........... Federalist............ 1789.
William L. Smith.................... South Carolina......... Federalist............ 1794 to 1797.
Robert G. Harper.................... South Carolina......... Federalist............ 1797 to 1800.
Roger Griswold...................... Connecticut............ Federalist............ 1800 to 1801.
John Randolph....................... Virginia............... Jeffersonian 1801 to 1805, 1827.
Republican.
Joseph Clay......................... Pennsylvania........... Jeffersonian 1805 to 1807.
Republican.
George W. Campbell.................. Tennessee.............. Jeffersonian 1807 to 1809.
Republican.
John W. Eppes....................... Virginia............... Jeffersonian 1809 to 1811.
Republican.
Ezekiel Bacon....................... Massachusetts.......... Jeffersonian 1811 to 1812.
Republican.
Langdon Cheves...................... South Carolina......... Jeffersonian 1812 to 1813.
Republican.
John W. Eppes....................... Virginia............... Jeffersonian 1813 to 1815.
Republican.
William Lowndes..................... South Carolina......... Jeffersonian 1815 to 1818.
Republican.
Samuel Smith........................ Maryland............... Jeffersonian 1818 to 1822.
Republican.
Louis McLane........................ Delaware............... Jeffersonian 1822 to 1827.
Republican.
George McDuffie..................... South Carolina......... Democrat.............. 1827 to 1832.
Gulian C. Verplanck................. New York............... Democrat.............. 1832 to 1833.
James K. Polk....................... Tennessee.............. Democrat.............. 1833 to 1835.
C.C. Cambreleng..................... New York............... Democrat.............. 1835 to 1839.
John W. Jones....................... Virginia............... Democrat.............. 1839 to 1841.
Millard Fillmore.................... New York............... Whig.................. 1841 to 1843.
James Iver McKay.................... North Carolina......... Democrat.............. 1843 to 1847.
Samuel F. Vinton.................... Ohio................... Whig.................. 1847 to 1849.
Thomas H. Bayly..................... Virginia............... Democrat.............. 1849 to 1851.
George S. Houston................... Alabama................ Democrat.............. 1851 to 1855.
Lewis D. Campbell................... Ohio................... Republican............ 1855 to 1857.
J. Glancy Jones..................... Pennsylvania........... Democrat.............. 1857 to 1858.
John S. Phelps...................... Missouri............... Democrat.............. 1858 to 1859.
John Sherman........................ Ohio................... Republican............ 1859 to 1861.
Thaddeus Stevens.................... Pennsylvania........... Republican............ 1861 to 1865.
Justin S. Morrill................... Vermont................ Republican............ 1865 to 1867.
Robert C. Schenck................... Ohio................... Republican............ 1867 to 1871.
Samuel D. Hooper.................... Massachusetts.......... Republican............ 1871.
Henry L. Dawes...................... Massachusetts.......... Republican............ 1871 to 1875.
William R. Morrison................. Illinois............... Democrat.............. 1875 to 1877.
Fernando Wood....................... New York............... Democrat.............. 1877 to 1881.
John R. Tucker...................... Virginia............... Democrat.............. 1881.
William D. Kelley................... Pennsylvania........... Republican............ 1881 to 1883.
William R. Morrison................. Illinois............... Democrat.............. 1883 to 1887.
Roger Q. Mills...................... Texas.................. Democrat.............. 1887 to 1889.
William McKinley, Jr................ Ohio................... Republican............ 1889 to 1891.
William M. Springer................. Illinois............... Democrat.............. 1891 to 1893.
William L. Wilson................... West Virginia.......... Democrat.............. 1893 to 1895.
Nelson Dingley, Jr.................. Maine.................. Republican............ 1895 to 1899.
Sereno E. Payne..................... New York............... Republican............ 1899 to 1911.
Oscar W. Underwood.................. Alabama................ Democrat.............. 1911 to 1915.
Claude Kitchin...................... North Carolina......... Democrat.............. 1915 to 1919.
Joseph W. Fordney................... Michigan............... Republican............ 1919 to 1923.
William R. Green.................... Iowa................... Republican............ 1923 to 1928.
Willis C. Hawley.................... Oregon................. Republican............ 1929 to 1931.
James W. Collier.................... Mississippi............ Democrat.............. 1931 to 1933.
Robert L. Doughton.................. North Carolina......... Democrat.............. 1933 to 1947, 1949 to
1953.
Harold Knutson...................... Minnesota.............. Republican............ 1947 to 1949.
Daniel A. Reed...................... New York............... Republican............ 1953 to 1955.
Jere Cooper......................... Tennessee.............. Democrat.............. 1955 to 1957.
Wilbur D. Mills..................... Arkansas............... Democrat.............. 1957 to 1975.
Al Ullman........................... Oregon................. Democrat.............. 1975 to 1981.
Dan Rostenkowski.................... Illinois............... Democrat.............. 1981 to 1994.
Bill Archer......................... Texas.................. Republican............ 1995 to 2001.
William M. Thomas................... California............. Republican............ 2001 to 2007.
Charles B. Rangel................... New York............... Democrat.............. 2007 to 2010.
Sander M. Levin*.................... Michigan............... Democrat.............. 2010 to 2010.
----------------------------------------------------------------------------------------------------------------
*Acting.
B. Tables Showing Past Membership of the Committee
1. MEMBERS OF THE COMMITTEE ON WAYS AND MEANS FROM THE 1ST THROUGH THE
111TH CONGRESS, BY STATE
[Beginning with the 104th Congress, Intra-Congress Committee Membership
changes are footnoted]
------------------------------------------------------------------------
Member Congress(es)
------------------------------------------------------------------------
Alabama:
John McKinley.............................. 23
David Hubbard.............................. 26
Dixon H. Lewis............................. 27-28
George S. Houston.......................... 29-30, 32-33
James F. Dowdell........................... 35
Hilary A. Herbert.......................... 48
Joseph Wheeler............................. 53-55
Oscar W. Underwood......................... 56, 59-63
Ronnie G. Flippo........................... 98-101
Artur Davis................................ 110-111
Arizona:
J.D. Hayworth.............................. 105-109
Arkansas:
James K. Jones............................. 48
Clifton R. Breckinridge.................... 49-51, 53
William A. Oldfield........................ 64-70
Heartsill Ragon............................ 70-73
William J. Driver.......................... 72
Claude A. Fuller........................... 73-75
Wilbur D. Mills............................ 77-94
Jim Guy Tucker, Jr......................... 95
Beryl Anthony, Jr.......................... 97-102
California:
Joseph McKenna............................. 51-52
Victor H. Metcalf.......................... 57-58
James C. Needham........................... 58-62
William E. Evans........................... 73
Frank H. Buck.............................. 74-77
Bertrand W. Gearhart....................... 76-80
Cecil R. King.............................. 78-79, 81-90
James B. Utt............................... 83, 86-91
James C. Corman............................ 90-96
Jerry L. Pettis............................ 91-94
William M. Ketchum......................... 94-95
Fortney Pete Stark......................... 94-
John H. Rousselot.......................... 95-97
Robert T. Matsui........................... \4\97-108
William M. Thomas.......................... 98-109
Wally Herger............................... 103-
Xavier Becerra............................. 105-
Mike Thompson.............................. 109-
Devin Nunes................................ \6\109-
Colorado:
Robert W. Bonynge.......................... 60
Charles B. Timberlake...................... 66-72
John A. Carroll............................ 81
Donald G. Brotzman......................... 92-93
George H. ``Hank'' Brown................... 100-101
Scott McInnis.............................. 106-108
Bob Beauprez............................... 109
Connecticut:
Jeremiah Wadsworth......................... 1
Uriah Tracy................................ 3
James Hillhouse............................ 4
Nathaniel Smith............................ 4-5
Joshua Coit................................ 5
Roger Griswold............................. 5-8
John Davenport............................. 8
Jonathan O. Moseley........................ 9, 14, 16
Benjamin Tallmadge......................... 10-11
Timothy Pitkin............................. 12-13, 15
Ralph I. Ingersoll......................... 21-22
Samuel D. Hubbard.......................... 30
James Phelps............................... 45-46
Charles A. Russell......................... 54-57
Ebenezer J. Hill........................... 58-62, 64-65
John Q. Tilson............................. 66-68
Antoni N. Sadlak........................... 83-85
William R. Cotter.......................... 94-97
Barbara B. Kennelly........................ 98-105
Nancy L. Johnson........................... 101-109
John B. Larson............................. 109-
Delaware:
John Vining................................ 1
Henry Latimer.............................. 3
John Patten................................ 4
James A. Bayard, Sr........................ 5, 7
Caesar A. Rodney........................... 8
Louis McLane............................... 16-19
Florida:
A.S. Herlong, Jr........................... 84-90
Sam M. Gibbons............................. 91-104
L.A. (Skip) Bafalis........................ 94-97
E. Clay Shaw, Jr........................... 100-109
Karen L. Thurman........................... 105-107
Mark Foley................................. \8\104-109
Kendrick Meek.............................. 110-111
Ginny Brown-Waite.......................... 111-
Georgia:
James Jackson.............................. 1
Abraham Baldwin............................ 3-5
Benjamin Taliaferro........................ 6
John Milledge.............................. 7
David Meriwether........................... 8-9
William W. Bibb............................ 12-13
Joel Abbott................................ 15
Joel Crawford.............................. 15-16
Wiley Thompson............................. 17-18
George R. Gilmer........................... 20
Richard H. Wilde........................... 22-23
George W. Owens............................ 24-25
Charles E. Haynes.......................... 25
Mark A. Cooper............................. 26
Absalom H. Chappell........................ 28
Seaborn Jones.............................. 29
Robert Toombs.............................. 30-31
Alexander H. Stephens...................... 30-31, 33
Marshall J. Wellborn....................... 31
Howell Cobb................................ 34
Martin J. Crawford......................... 35-36
Benjamin H. Hill........................... 44
Henry R. Harris............................ 45, 49
William H. Felton.......................... 46
Emory Speer................................ 47
James H. Blount............................ 48
Henry G. Turner............................ 50-54
Charles F. Crisp........................... 54
James M. Griggs............................ 60-61
William G. Brantley........................ 61-62
Charles R. Crisp........................... 64-72
Albert S. Camp............................. 78-83
Phillip M. Landrum......................... 89-94
Ed Jenkins................................. 95-102
Wyche Fowler, Jr........................... 96-99
John Lewis................................. 103-
Mac Collins................................ 104-108
John Linder................................ 109-111
Hawaii:
Cecil (Cec) Heftel......................... 96-99
Illinois:
Daniel P. Cook............................. 19
John A. McClernand......................... 37
John Wentworth............................. 39
John A. Logan.............................. 40
Samuel S. Marshall......................... 41
Horatio C. Burchard........................ 42-45
William R. Morrison........................ 44, 46-49
William M. Springer........................ 52
Albert J. Hopkins.......................... 52-57
Henry S. Boutell........................... 58-61
Henry T. Rainey............................ 62-66, 68-72
John A. Sterling........................... 65
Ira C. Copley.............................. 66-67
Carl R. Chindblom.......................... 68-72
Chester C. Thompson........................ 74-75
Raymond S. McKeough........................ 76-77
Charles S. Dewey........................... 78
Thomas J. O'Brien.......................... 79, 81-88
Noah M. Mason.............................. 80-87
Harold R. Collier.......................... 88-93
Dan Rostenkowski........................... 88-103
Abner J. Mikva............................. 94-96
Philip M. Crane............................ 94-108
Marty Russo................................ 96-102
Mel Reynolds............................... 103
Jerry Weller............................... 105-110
Rahm Emanuel............................... 109-110
Danny K. Davis............................. 111
Indiana:
David Wallace.............................. 27
Cyrus L. Dunham............................ 32
William E. Niblack......................... 40, 43
Godlove S. Orth............................ 41
Michael C. Kerr............................ 42
Thomas M. Browne........................... 48-50
William D. Bynum........................... 50, 53
Benjamin F. Shively........................ 52
George W. Steele........................... 54-57
James E. Watson............................ 58-60
Edgar D. Crumpacker........................ 60-61
Lincoln Dixon.............................. 62-65
Harry C. Canfield.......................... 71-72
John W. Boehne, Jr......................... 73-77
Robert A. Grant............................ 80
Andy Jacobs, Jr............................ 94-104
Chris Chocola.............................. 109
Iowa:
John A. Kasson............................. 38, 43, 47-48
William B. Allison......................... 39-41
John H. Gear............................... 51, 53
Jonathan P. Dolliver....................... 54-56
William R. Green........................... 63-70
C. William Ramseyer........................ 70-71
Otha D. Wearin............................. 75
Lloyd Thurston............................. 75
Thomas E. Martin........................... 80-83
Fred Grandy................................ 102-103
Jim Nussle................................. 104-109
Kansas:
Dudley C. Haskell.......................... 47
Chester I. Long............................ 56-57
Charles Curtis............................. 58-59
William A. Calderhead...................... 60-61
Victor Murdock............................. 63
Guy T. Helvering........................... 64-65
Frank Carlson.............................. 76-79
Martha E. Keys............................. 94-95
Kentucky:
Alexander D. Orr........................... 3
Christopher Greenup........................ 4
Thomas T. Davis............................ 5
John Boyle................................. 8
Richard M. Johnson......................... 11-12
Thomas Montgomery.......................... 13
David Trimble.............................. 15-16
Nathan Gaither............................. 22
John Pope.................................. 25
Thomas F. Marshall......................... 27
Garrett Davis.............................. 28
Charles S. Morehead........................ 30-31
John C. Breckinridge....................... 33
Robert Mallory............................. 38
James B. Beck.............................. 42-43
Henry Watterson............................ 44
John G. Carlisle........................... 46-47, 51
Joseph C.S. Blackburn...................... 48
William C.P. Breckinridge.................. 49-50
Alexander B. Montgomery.................... 52-53
Walter Evans............................... 54-55
Ollie M. James............................. 62
Augustus O. Stanley........................ 63
Frederick M. Vinson........................ 72-75
Noble J. Gregory........................... 78-85
John C. Watts.............................. 86-92
Jim Bunning................................ 102-105
Ron Lewis.................................. 106-110
Geoff Davis................................ 110-
Louisiana:
Thomas B. Robertson........................ 14
William L. Brent........................... 19-20
Walter H. Overton.......................... 21
Lionel A. Sheldon.......................... 43
Randall L. Gibson.......................... 45-46
Charles J. Boatner......................... 54
Samuel M. Robertson........................ 55-59
Robert F. Broussard........................ 61
Whitmell P. Martin......................... 65-70
Paul H. Maloney............................ 76, 78-79
Thomas Hale Boggs, Sr...................... 81-91
Joe D. Waggonner, Jr....................... 92-95
W. Henson Moore III........................ 96-99
William J. Jefferson....................... \7\103, 105-109
Jim McCrery................................ 103-110
Jimmy Hayes................................ \1\104
Charles W. Boustany, Jr.................... 111-
Maine:
Peleg Sprague.............................. 19-20
Francis O.J. Smith......................... 24
George Evans............................... 26
Israel Washburn, Jr........................ 36
James G. Blaine............................ 44
William P. Frye............................ 46
Thomas B. Reed............................. 48-50, 52-53
Nelson Dingley, Jr......................... 51, 54-55
Daniel J. McGillicuddy..................... 64
Maryland:
William Smith.............................. 1
Gabriel Christie........................... 3
William Vans Murray........................ 4
William Hindman............................ 4-5
William Craik.............................. 5
Joseph H. Nicholson........................ 6-9
Nicholas R. Moore.......................... 8
Roger Nelson............................... 9
John Montgomery............................ 10-11
Alexander McKim............................ 13
Stevenson Archer........................... 13
Samuel Smith............................... 14-17
Isaac McKim................................ 18, 23-25
Henry W. Davis............................. 34-36
Phillip F. Thomas.......................... 44
David J. Lewis............................. 72-75
Rogers C.B. Morton......................... 91-92
Benjamin L. Cardin......................... 101-109
Massachusetts:
Elbridge Gerry............................. 1
Fisher Ames................................ 3
Theodore Sedgwick.......................... 4
Theophilus Bradbury........................ 4
Harrison Gray Otis......................... 5-6
Samuel Sewall.............................. 5
Isaac Parker............................... 5
Bailey Bartlett............................ 6
Nathan Read................................ 7
Seth Hastings.............................. 8
Josiah Quincy.............................. 9
Ezekiel Bacon.............................. 11-12
Ebenezer Seaver............................ 11
Henry Shaw................................. 16
Henry W. Dwight............................ 19-21
Benjamin Gorham............................ 23
Abbott Lawrence............................ 24, 26
Richard Fletcher........................... 25
George N. Briggs........................... 25
Leverett Saltonstall....................... 26
Robert C. Winthrop......................... 29
Charles Hudson............................. 30
George Ashmun.............................. 31
William Appleton........................... 32-33, 37
Alexander De Witt.......................... 34
Nathaniel P. Banks......................... 35, 45
Samuel Hooper.............................. 37-41
Henry L. Dawes............................. 42-43
Chester W. Chapin.......................... 44
William A. Russell......................... 47-48
Moses T. Stevens........................... 52-53
Samuel W. McCall........................... 56-62
Andrew J. Peters........................... 62-63
Augustus P. Gardner........................ 63-65
John J. Mitchell........................... 63
Allen T. Treadway.......................... 65-78
Peter F. Tague............................. 67-68
John W. McCormack.......................... 72-76
Arthur D. Healey........................... 77
Charles L. Gifford......................... 79-80
Angier L. Goodwin.......................... 80, 82-83
James A. Burke............................. 87-95
James M. Shannon........................... 96-98
Brian J. Donnelly.......................... 99-102
Richard E. Neal............................ 103-
Michigan:
William A. Howard.......................... 34-36
Austin Blair............................... 41
Henry Waldron.............................. 43
Omar D. Conger............................. 46
Jay A. Hubbell............................. 47
William C. Maybury......................... 49
Julius C. Burrows.......................... 50-53
Justin R. Whiting.......................... 52-53
William A. Smith........................... 59
Joseph W. Fordney.......................... 60-67
James C. McLaughlin........................ 68-72
Roy O. Woodruff............................ 73-82
John D. Dingell............................ 74-84
Victor A. Knox............................. 83, 86-88
Thaddeus M. Machrowicz..................... 84-87
Martha W. Griffiths........................ 87-93
Charles E. Chamberlain..................... 91-93
Richard F. Vander Veen..................... 93-94
Guy Vander Jagt............................ 94-102
William M. Brodhead........................ 95-97
Sander M. Levin............................ 100-
Dave Camp.................................. 103-
Minnesota:
Mark H. Dunnell............................ 46-47
James A. Tawney............................ 54-58
James T. McCleary.......................... 59
Winfield S. Hammond........................ 62-63
Sydney Anderson............................ 63
Harold Knutson............................. 73-80
Eugene J. McCarthy......................... 84-85
Joseph E. Karth............................ 92-94
Bill Frenzel............................... 94-101
Jim Ramstad................................ 104-110
Mississippi:
Jacob Thompson............................. 31
John Sharp Williams........................ 58-59
James W. Collier........................... 63-72
Aaron Lane Ford............................ 77
Missouri:
James S. Green............................. 31
John S. Phelps............................. 32-37
Henry T. Blow.............................. 38
John Hogan................................. 39
Gustavus A. Finkelburg..................... 42
John C. Tarsney............................ 53-54
Seth W. Cobb............................... 54
Champ Clark................................ 58-61
Dorsey W. Shackleford...................... 62-63
Clement C. Dickinson....................... 63-66, 68-70, 72-73
Charles L. Faust........................... 69-70
Richard M. Duncan.......................... 74-77
Thomas B. Curtis........................... 83-90
Frank M. Karsten........................... 84-90
Richard A. Gephardt........................ 95-101
Mel Hancock................................ 103-104
Kenny Hulshof.............................. 105-110
Montana:
Lee W. Metcalf............................. 86
James F. Battin............................ 89-91
Nebraska:
William J. Bryan........................... 52-53
Charles H. Sloan........................... 63-65
Ashton C. Shallenberger.................... 73
Carl T. Curtis............................. 79-83
Hal Daub................................... 99-100
Peter Hoagland............................. 103
Jon Christensen............................ 104-105
Nevada:
Francis G. Newlands........................ 56-57
John Ensign................................ 104-105
Jon Porter................................. 109-110
Shelley Berkley............................ 110-111
New Hampshire:
Samuel Livermore........................... 1
Nicholas Gilman............................ 3-4
Abiel Foster............................... 5
Nathaniel A. Haven......................... 11
Henry Hubbard.............................. 23
Charles G. Atherton........................ 25-27
Moses Norris, Jr........................... 28-29
Harry Hibbard.............................. 31-33
Judd A. Gregg.............................. 99-100
New Jersey:
Lambert Cadwalader......................... 1
Elias Boudinot............................. 3
Isaac Smith................................ 4
Thomas Sinnickson.......................... 5
James H. Imlay............................. 6
William Coxe, Jr........................... 13
John L. N. Stratton........................ 37
William Hughes............................. 62
Isaac Bacharach............................ 66-74
Donald H. McLean........................... 76-78
Robert W. Kean............................. 78-85
Henry Helstoski............................ 94
Frank J. Guarini........................... 96-102
Dick Zimmer................................ 104
Bill Pascrell, Jr.......................... 110-
New Mexico:
Clinton P. Anderson........................ 79
New York:
John Laurance.............................. 1
John Watts................................. 3
Ezekiel Gilbert............................ 4
James Cochran.............................. 5
Hezekiah L. Hosmer......................... 5
Jonas Platt................................ 6
Killian K. Van Rensselaer.................. 7
Joshua Sands............................... 8
Erastus Root............................... 11
John W. Taylor............................. 13
Jonathan Fisk.............................. 13
Thomas J. Oakley........................... 13
James W. Wilkin............................ 14
James Tallmadge, Jr........................ 15
Albert H. Tracy............................ 16
Nathaniel Pitcher.......................... 17
Churchill C. Cambreleng.................... 17-18, 23-25
Dudley Marvin.............................. 19
Gulian C. Verplanck........................ 20-22
Aaron Vanderpoel........................... 26
Millard Filmore............................ 27
Daniel D. Barnard.......................... 28
David L. Seymour........................... 28
George O. Rathbun.......................... 28
Orville Hungerford......................... 29
Henry Nicoll............................... 30
James Brooks............................... 31-32, 39-40, 42
William Duer............................... 31
Solomon G. Haven........................... 33
Russell Sage............................... 34
John Kelly................................. 35
William B. MacLay.......................... 35
Elbridge G. Spaulding...................... 36-37
Erastus Corning............................ 37
Reuben E. Fenton........................... 38
De Witt C. Littlejohn...................... 38
Henry G. Stebbins.......................... 38
John V. L. Pruyn........................... 38
Roscoe Conkling............................ 39
Charles H. Winfield........................ 39
John A. Griswold........................... 40
Dennis McCarthy............................ 41
Ellis H. Roberts........................... 42-43
Fernando Wood.............................. 43-46
Abram S. Hewitt............................ 48-49
Frank Hiscock.............................. 48-49
Sereno E. Payne............................ 51-63
Roswell P. Flower.......................... 51
William B. Cochran......................... 52-53, 58-60
George B. McClellan........................ 55-58
John W. Dwight............................. 61
Francis B. Harrison........................ 61-63
Michael F. Conry........................... 64
George W. Fairchild........................ 64-65
John F. Carew.............................. 65-71
Luther W. Mott............................. 66-67
Alanson B. Houghton........................ 67
Ogden L. Mills............................. 67-69
Frank Crowther............................. 68-77
Thaddeus C. Sweet.......................... 70
Frederick M. Davenport..................... 70-71
Thomas H. Cullen........................... 71-78
Christopher D. Sullivan.................... 72-76
Daniel A. Reed............................. 73-86
Walter A. Lynch............................ 78-81
Eugene J. Keogh............................ 82-89
Albert H. Bosch............................ 86
Steven B. Derounian........................ 87-88
Barber B. Conable, Jr...................... 90-98
Jacob H. Gilbert........................... 90-91
Hugh L. Carey.............................. 91-93
Otis G. Pike............................... 93-95
Charles B. Rangel.......................... 94-
Thomas J. Downey........................... 96-102
Raymond J. McGrath......................... 99-102
Michael R. McNulty......................... 103, \2\104-110
Amo Houghton............................... 103-108
Thomas M. Reynolds......................... 109-110
Joseph Crowley............................. 110-111
Brian Higgins.............................. 111
North Carolina:
William B. Grove........................... 3
Thomas Blount.............................. 4-5
Robert Williams............................ 5
David Stone................................ 6
James Holland.............................. 7
Willis Alston.............................. 10-11, 13
William Gaston............................. 13-14
Abraham Rencher............................ 25, 27
Henry W. Conner............................ 26
James I. McKay............................. 28-30
Edward Stanly.............................. 32
William M. Robbins......................... 45
Edward W. Pou.............................. 60-61
Claude Kitchin............................. 62-67
Robert L. Doughton......................... 69-82
James G. Martin............................ 94-98
Bob Etheridge.............................. 111
North Dakota:
Martin N. Johnson.......................... 54-55
George M. Young............................ 66-68
Byron L. Dorgan............................ 98-102
Earl Pomeroy............................... 107-111
Ohio:
William Creighton, Jr...................... 13
Thomas R. Ross............................. 16
Thomas Corwin.............................. 23-24
Thomas L. Hamer............................ 25
Taylor Webster............................. 25
Samson Mason............................... 26-27
John B. Weller............................. 28
Samuel F. Vinton........................... 29-31
Lewis D. Campbell.......................... 34-35
John Sherman............................... 36
Valentine B. Horton........................ 37
George H. Pendleton........................ 38
James A. Garfield.......................... 39, 44-46
Robert C. Schenck.......................... 40-41
Charles Foster............................. 43
Milton Sayler.............................. 45
William McKinley, Jr....................... 46-47, 49-51
Frank H. Hurd.............................. 48
Charles H. Grosvenor....................... 53-59
Nicholas Longworth......................... 60-62, 64-67
Timothy T. Ansberry........................ 62-63
Alfred G. Allen............................ 64
George White............................... 65
Charles C. Kearns.......................... 68-71
Charles F. West............................ 73
Thomas A. Jenkins.......................... 73-85
Arthur P. Lamneck.......................... 74-75
Stephen M. Young........................... 81
Jackson E. Betts........................... 86-92
Donald D. Clancy........................... 93-94
Charles A. Vanik........................... 89-96
Bill Gradison.............................. 95-103
Don J. Pease............................... 97-102
Rob Portman................................ \5\104-109
Stephanie Tubbs Jones...................... \9\108-110
Oklahoma:
Thomas A. Chandler......................... 67
James V. McClintic......................... 73
Wesley E. Disney........................... 74-78
James R. Jones............................. 94-99
Bill K. Brewster........................... 103
Wes Watkins................................ 105-107
Oregon:
William R. Ellis........................... 61
Willis C. Hawley........................... 65-72
Albert C. Ullman........................... 87-96
Mike Kopetski.............................. 103
Pennsylvania:
Thomas Fitzsimons.......................... 1, 3
Albert Gallatin............................ 4-6
Henry Woods................................ 6
John Smilie................................ 6-7, 10-12
Joseph Clay................................ 8-9
John Rea................................... 11
Jonathan Roberts........................... 12-13
Samuel D. Ingham........................... 13-14, 18
John Sergeant.............................. 15, 25
John Tod................................... 17
John Gilmore............................... 21-22
Horace Binney.............................. 23
Richard Biddle............................. 26
Joseph R. Ingersoll........................ 24, 27-29
James Pollock.............................. 30
Moses Hampton.............................. 31
J. Glancy Jones............................ 32, 35
John Robbins............................... 33
James H. Campbell.......................... 34
Henry M. Phillips.......................... 35
Thaddeus Stevens........................... 36-38
James K. Moorhead.......................... 39-40
William D. Kelley.......................... 41-50
Russell Errett............................. 47
Samuel J. Randall.......................... 47
William L. Scott........................... 50
Thomas M. Bayne............................ 51
John Dalzell............................... 52-62
A. Mitchell Palmer......................... 62-63
J. Hampton Moore........................... 63-66
John J. Casey.............................. 64, 68
Henry W. Watson............................ 66-73
Harris J. Bixler........................... 69
Harry A. Estep............................. 70-72
Thomas C. Cochran.......................... 73
Joshua T. Brooks........................... 74
Patrick J. Boland.......................... 76-77
Benjamin Jarrett........................... 76-77
James P. McGranery......................... 77-78
Herman P. Eberharter....................... 78-85
Richard M. Simpson......................... 78-86
William J. Green, Jr....................... 86-88
John A. Lafore, Jr......................... 86
Walter M. Mumma............................ 86-87
George M. Rhodes........................... 88-90
Herman T. Schneebeli....................... 87-94
William J. Green, III...................... 90-94
Raymond F. Lederer......................... 95-96
Dick Schulze............................... 95-102
Donald A. Bailey........................... 97
William J. Coyne........................... 99-107
Rick Santorum.............................. 103
Philip S. English.......................... 104-110
Melissa A. Hart............................ 109
Rhode Island:
Benjamin Bourne............................ 3-4
Francis Malbone............................ 4
Elisha R. Potter........................... 4
Christopher G. Champlin.................... 5
John Brown................................. 6
Joseph Stanton, Jr......................... 8
Daniel L.D. Granger........................ 59-60
George F. O'Shaunessy...................... 65
Richard S. Aldrich......................... 69-72
Aime J. Forand............................. 78-86
South Carolina:
William L. Smith........................... 3-5
Robert Goodloe Harper...................... 5-6
Abraham Nott............................... 6
David R. Williams.......................... 9
Langdon Cheves............................. 12
Theodore Gourdin........................... 13
William Lowndes............................ 13-15
John Taylor................................ 14
Thomas R. Mitchell......................... 17
George McDuffie............................ 18-22
R. Barnwell Rhett.......................... 25-26
Francis W. Pickens......................... 27
John L. McLaurin........................... 54-55
Ken Holland................................ 95-97
Carroll A. Campbell, Jr.................... 98-99
Tennessee:
Andrew Jackson............................. 4
William C.C. Claiborne..................... 5
William Dickson............................ 7, 9
George W. Campbell......................... 10
Bennett H. Henderson....................... 14
Francis Jones.............................. 16-17
James K. Polk.............................. 22-23
Cave Johnson............................... 24
George W. Jones............................ 31-34
Horace Maynard............................. 37, 40-42
Benton McMillan............................ 49-55
James D. Richardson........................ 55-57
Cordell Hull............................... 62-66, 68-71
Edward E. Eslick........................... 72
Jere Cooper................................ 72-85
Howard H. Baker............................ 83-88
James B. Frazier, Jr....................... 85-87
Ross Bass.................................. 88
Richard H. Fulton.......................... 89-94
John J. Duncan............................. 92-100
Harold E. Ford............................. 94-104
Don Sundquist.............................. 101-103
John S. Tanner............................. 105-111
Texas:
John Hancock............................... 44
Roger Q. Mills............................. 46, 48-51
Joseph W. Bailey........................... 55
Samuel B. Cooper........................... 56-58
Choice B. Randell.......................... 60-62
John N. Garner............................. 63-71
Morgan G. Sanders.......................... 72-75
Milton H. West............................. 76-80
Jesse M. Combs............................. 81-82
Frank N. Ikard............................. 84-87
Bruce Alger................................ 86-88
Clark W. Thompson.......................... 87-89
George H.W. Bush........................... 90-91
Omar T. Burleson........................... 90-95
Bill Archer................................ 93-106
J.J. Pickle................................ 94-103
Kent R. Hance.............................. 97-98
Michael A. Andrews......................... 99-103
Sam Johnson................................ 104-
Greg Laughlin.............................. \3\104
Lloyd Doggett.............................. 104-
Kevin Brady................................ 107-
Max Sandlin................................ 108
Utah:
Walter K. Granger.......................... 82
Vermont:
Daniel Buck................................ 4
Israel Smith............................... 3, 4, 7
Lewis R. Morris............................ 5
James Fisk................................. 10, 12
Horace Everett............................. 25
Justin S. Morrill.......................... 35-39
Virginia:
James Madison.............................. 1, 3, 4
William B. Giles........................... 5
Richard Brent.............................. 5
Walter Jones............................... 5
Leven Powell............................... 6
John Nicholas.............................. 6
John Randolph.............................. 7-9, 20
James M. Garnett........................... 9
John W. Eppes.............................. 10-11, 13
William A. Burwell......................... 12, 14-16
James Pleasants............................ 12-13
John Tyler................................. 16
Andrew Stevenson........................... 17-19
Alexander Smyth............................ 20-21
Philip P. Barbour.......................... 21
Mark Alexander............................. 21-22
George Loyall.............................. 23-24
John W. Jones.............................. 25-27
John M. Botts.............................. 27
Thomas W. Gilmer........................... 27
Thomas H. Bayly............................ 28, 31
George C. Dromgoole........................ 28-29
James McDowell............................. 30
John Letcher............................... 34-35
John S. Millson............................ 36
John R. Tucker............................. 44-47
Claude A. Swanson.......................... 55-58
A. Willis Robertson........................ 75-79
Burr P. Harrison........................... 82, 84-87
W. Pat Jennings............................ 88-89
Joel T. Broyhill........................... 88-93
Joseph L. Fisher........................... 94-96
L.F. Payne................................. 103-104
Eric Cantor................................ 108-
Washington:
Francis W. Cushman......................... 61
Lindley H. Hadley.......................... 66-72
Samuel B. Hill............................. 71-74
Knute Hill................................. 77
Otis H. Holmes............................. 80-85
Rodney D. Chandler......................... 100-102
Jim McDermott.............................. 102-
Jennifer Dunn.............................. 104-108
West Virginia:
William L. Wilson.......................... 50, 52-53
Joseph H. Gaines........................... 60-61
George M. Bowers........................... 66-67
Hubert S. Ellis............................ 80
Wisconsin:
Charles Billinghurst....................... 34
Robert M. La Follette...................... 51
Joseph W. Babcock.......................... 57-59
James A. Frear............................. 66-68, 71-73
Thaddeus F.B. Wasielewski.................. 78-79
John W. Byrnes............................. 80-92
William A. Steiger......................... 94-95
Jim Moody.................................. 100-102
Gerald D. Kleczka.......................... 103-108
Paul Ryan.................................. 107-
Ron Kind................................... 110-
------------------------------------------------------------------------
\1\Appointed January 25, 1996.
\2\Appointed January 25, 1996.
\3\Appointed July 10, 1995.
\4\Reelected to the 109th Congress; died January 1, 2005.
\5\Resigned April 29, 2005.
\6\Appointed May 5, 2005.
\7\Pursuant to H. Res. 872, removed June 16, 2006.
\8\Resigned September 29, 2006.
\9\Died August 20, 2008.
2. COMMITTEE MEMBERSHIP, 111TH CONGRESS
COMMITTEE ON WAYS AND MEANS
One Hundred Eleventh Congress
SANDER M. LEVIN, Michigan, Acting
Chairman
DAVE CAMP, Michigan CHARLES B. RANGEL, New York
WALLY HERGER, California FORTNEY PETE STARK, California
SAM JOHNSON, Texas JIM McDERMOTT, Washington
KEVIN BRADY, Texas JOHN LEWIS, Georgia
PAUL RYAN, Wisconsin RICHARD E. NEAL, Massachusetts
ERIC CANTOR, Virginia JOHN S. TANNER, Tennessee
JOHN LINDER, Georgia XAVIER BECERRA, California
DEVIN NUNES, California LLOYD DOGGETT, Texas
PAT TIBERI, Ohio EARL POMEROY, North Dakota
GINNY BROWN-WAITE, Florida MIKE THOMPSON, California
GEOFF DAVIS, Kentucky JOHN B. LARSON, Connecticut
DAVID G. REICHERT, Washington EARL BLUMENAUER, Oregon
CHARLES W. BOUSTANY, Jr., Louisiana RON KIND, Wisconsin
DEAN HELLER, Nevada BILL PASCRELL, Jr., New Jersey
PETER J. ROSKAM, Illinois SHELLEY BERKLEY, Nevada
JOSEPH CROWLEY, New York
CHRIS VAN HOLLEN, Maryland
KENDRICK MEEK, Florida
ALLYSON Y. SCHWARTZ, Pennsylvania
ARTUR DAVIS, Alabama
DANNY K. DAVIS, Illinois
BOB ETHERIDGE, North Carolina
LINDA T. SANCHEZ, California
BRIAN HIGGINS, New York
JOHN A. YARMUTH, Kentucky