[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 

                              ----------                              

                     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

                              ----------                              
                                                                   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

=======================================================================

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).
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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

                                  
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