[House Report 112-71]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     112-71

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 PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3) TO PROHIBIT TAXPAYER 
  FUNDED ABORTIONS AND TO PROVIDE FOR CONSCIENCE PROTECTIONS, AND FOR 
                             OTHER PURPOSES

                                _______
                                

 May 2, 2011.--Referred to the House Calendar and ordered to be printed

                                _______
                                

               Mr. Nugent, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 237]

    The Committee on Rules, having had under consideration 
House Resolution 237, by a record vote of 9 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3, the No 
Taxpayer Funding for Abortion Act, under a closed rule. The 
resolution provides one hour of debate with 40 minutes equally 
divided and controlled by the chair and ranking minority member 
of the Committee on the Judiciary, 10 minutes equally divided 
and controlled by the chair and ranking minority member of the 
Committee on Ways and Means, and 10 minutes equally divided and 
controlled by the chair and ranking minority member of the 
Committee on Energy and Commerce. The resolution waives all 
points of order against consideration of the bill. The 
resolution provides that in lieu of the amendment in the nature 
of a substitute recommended by the Committee on the Judiciary 
now printed in the bill, the amendment in the nature of a 
substitute printed in this report shall be considered as 
adopted. The bill, as amended, shall be considered as read. The 
resolution waives all points of order against provisions in the 
bill, as amended. Finally, the resolution provides one motion 
to recommit with or without instructions.

                         EXPLANATION OF WAIVERS

    Although the resolution waives all points of order against 
consideration of the bill, the Committee is not aware of any 
points of order against its consideration. The waiver is 
prophylactic.
    The resolution waives all points of order against 
provisions in the bill, as amended. The waiver of all points of 
order includes a waiver of clause 5(a) of rule XXI, which 
prohibits a bill carrying a tax provision from being reported 
by a committee that does not have jurisdiction to report tax 
measures. On April 6, 2011, the Committee on Ways and Means 
reported H.R. 1232, to amend the Internal Revenue Code of 1986 
to eliminate certain tax benefits relating to abortion. The 
amendment printed in this report contains the provisions of 
H.R. 1232 as reported by the Committee on Ways and Means. The 
waiver of clause 5(a) of rule XXI is necessary because H.R. 3, 
as modified by the amendment in the nature of a substitute 
printed in this report, was not reported by the Committee on 
Ways and Means.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 83

    Motion by Mr. McGovern to report an open rule. Defeated: 3-
9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Sessions....................................          Nay   Mr. McGovern......................          Yea
Ms. Foxx........................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Bishop of Utah..............................          Nay   Mr. Polis.........................          Yea
Mr. Woodall.....................................          Nay
Mr. Nugent......................................          Nay
Mr. Scott of South Carolina.....................          Nay
Mr. Webster.....................................          Nay
Mr. Reed........................................          Nay
Mr. Dreier, Chairman............................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 84

    Motion by Mr. McGovern to amend the rule to H.R. 3 to make 
in order separately and provide the appropriate waivers for 
each of the following amendments: Del. Norton (DC), #2, would 
permit the District of Columbia government to spend its local 
taxpayer-raised funds on abortions for low-income women; Rep. 
Biggert (IL), #3, would strike sections 303 through 307, 309, 
310, and Title II, and the word ``authorized'' in sections 301 
and 302; Rep. Chu (CA), #4, would make clear that provisions 
under current law that require that the federal government help 
protect access to appropriate medical care, do nothing to 
restrict doctors' ability to fully disclose treatment options 
and other health information to patients, and do nothing to 
violate ethical standards of health care professionals or 
informed consent between doctor and patient are still in force 
under this bill; Rep. Engel (NY), #6, would reinstate 
conscience protections for health providers who provide 
abortion services as well as those who do not; Rep. Baldwin 
(WI), #7, would prohibit the bill from taking effect should it 
cause taxes for small businesses or individuals to increase; 
Rep. Chu (CA), #8, would exclude cases of a woman with cancer 
who needs life saving treatment incompatible with continuing 
the pregnancy from the requirements of the legislation relating 
to federal funding, health benefit plans and the limitations on 
federal facilities and employees; Rep. Maloney (NY), #9, would 
require the Federal Trade Commission to promulgate rules under 
the Federal Trade Commission Act declaring it an unfair or 
deceptive act for an entity, such as a crisis pregnancy center, 
to advertise as a provider of abortion services if the entity 
does not provide abortion services. Similarly, if an entity 
that does provide abortions it is prohibited from advertising 
that it does not provide abortions. Agencies that are not 
deceptive in their advertising or marketing will not be 
affected by this bill; Rep. Crowley (NY), #10, would provide 
that the provisions of H.R. 3 shall not take effect if the tax 
liability of any taxpayer (including individuals and small 
businesses) would be increased; Rep. Nadler (NY), #11, would 
strike Title II of the bill; Rep. Quigley (IL), #12, would 
provide that the provisions of the bill shall not take effect 
until the President, or his designee, certifies that this bill 
will not affect the availability of insurance that includes 
abortion coverage in the private insurance market; Rep. Moore 
(WI), #13, would delay the effective date for this Act (H.R. 3) 
until the Secretary of Health and Human Services determines 
that it would not result in a reduction in access to 
comprehensive health care coverage for low-income women; Rep. 
Jackson Lee (TX), #15, would delay the effective date of the 
act until the AG certifies to Congress that this act will not 
violate any Constitutionally guaranteed right; Rep. Jackson Lee 
(TX), #16, would carve out an exception to the act for 
instances where continuing a pregnancy could result in severe 
long-lasting damage to a women's health; Rep. Grijalva (AZ), 
#17, would require that a review be conducted by the Secretary 
of the Treasury to ensure that the tax penalties created by 
this act will not have a disparate impact on individuals based 
on race, gender, national origin, ability or age. It would also 
direct the Secretary to examine the impact of these tax 
penalties on small businesses owned and operated by minorities. 
Defeated: 3-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Sessions....................................          Nay   Mr. McGovern......................          Yea
Ms. Fox.........................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Bishop of Utah..............................          Nay   Mr. Polis.........................          Yea
Mr. Woodall.....................................          Nay
Mr. Nugent......................................          Nay
Mr. Scott of South Carolina.....................          Nay
Mr. Webster.....................................          Nay
Mr. Reed........................................          Nay
Mr. Dreier, Chairman............................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 85

    Motion by Mr. Sessions to report the rule. Adopted: 9-3

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Sessions....................................          Yea   Mr. McGovern......................          Nay
Ms. Foxx........................................          Yea   Mr. Hastings of Florida...........          Nay
Mr. Bishop of Utah..............................          Yea   Mr. Polis.........................          Nay
Mr. Woodall.....................................          Yea
Mr. Nugent......................................          Yea
Mr. Scott of South Carolina.....................          Yea
Mr. Webster.....................................          Yea
Mr. Reed........................................          Yea
Mr. Dreier, Chairman............................          Yea
----------------------------------------------------------------------------------------------------------------

SUMMARY OF AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE CONSIDERED AS 
                                ADOPTED

    Smith (TX), Camp (MI) AMENDMENT IN THE NATURE OF A 
SUBSTITUTE: Would combine the text of H.R. 3 as reported by the 
Committee on the Judiciary and the text of H.R. 1232 as 
reported by the Committee on Ways and Means.

  TEXT OF AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE CONSIDERED AS 
                                ADOPTED

  Strike all after the enacting clause and insert the 
following:

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``No Taxpayer 
Funding for Abortion Act''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.

   TITLE I--PROHIBITING FEDERALLY-FUNDED ABORTIONS AND PROVIDING FOR 
                         CONSCIENCE PROTECTIONS

Sec. 101. Prohibiting taxpayer funded abortions and providing for 
          conscience protections.
Sec. 102. Amendment to table of chapters.

   TITLE II--ELIMINATION OF CERTAIN TAX BENEFITS RELATING TO ABORTION

Sec. 201. Deduction for medical expenses not allowed for abortions.
Sec. 202. Disallowance of refundable credit for coverage under qualified 
          health plan which provides coverage for abortion.
Sec. 203. Disallowance of small employer health insurance expense credit 
          for plan which includes coverage for abortion.
Sec. 204. Distributions for abortion expenses from certain accounts and 
          arrangements included in gross income.

   TITLE I--PROHIBITING FEDERALLY-FUNDED ABORTIONS AND PROVIDING FOR 
                         CONSCIENCE PROTECTIONS

SEC. 101. PROHIBITING TAXPAYER FUNDED ABORTIONS AND PROVIDING FOR 
                    CONSCIENCE PROTECTIONS.

  Title 1, United States Code is amended by adding at the end 
the following new chapter:

 ``CHAPTER 4--PROHIBITING TAXPAYER FUNDED ABORTIONS AND PROVIDING FOR 
                         CONSCIENCE PROTECTIONS

``Sec.
``301. Prohibition on funding for abortions.
``302. Prohibition on funding for health benefits plans that cover 
          abortion.
``303. Limitation on Federal facilities and employees.
``304. Construction relating to separate coverage.
``305. Construction relating to the use of non-Federal funds for health 
          coverage.
``306. Non-preemption of other Federal laws.
``307. Construction relating to complications arising from abortion.
``308. Treatment of abortions related to rape, incest, or preserving the 
          life of the mother.
``309. Application to District of Columbia.
``310. No government discrimination against certain health care 
          entities.

``Sec. 301. Prohibition on funding for abortions

  ``No funds authorized or appropriated by Federal law, and 
none of the funds in any trust fund to which funds are 
authorized or appropriated by Federal law, shall be expended 
for any abortion.

``Sec. 302. Prohibition on funding for health benefits plans that cover 
                    abortion

  ``None of the funds authorized or appropriated by Federal 
law, and none of the funds in any trust fund to which funds are 
authorized or appropriated by Federal law, shall be expended 
for health benefits coverage that includes coverage of 
abortion.

``Sec. 303. Limitation on Federal facilities and employees

  ``No health care service furnished--
          ``(1) by or in a health care facility owned or 
        operated by the Federal Government; or
          ``(2) by any physician or other individual employed 
        by the Federal Government to provide health care 
        services within the scope of the physician's or 
        individual's employment,
may include abortion.

``Sec. 304. Construction relating to separate coverage

  ``Nothing in this chapter shall be construed as prohibiting 
any individual, entity, or State or locality from purchasing 
separate abortion coverage or health benefits coverage that 
includes abortion so long as such coverage is paid for entirely 
using only funds not authorized or appropriated by Federal law 
and such coverage shall not be purchased using matching funds 
required for a federally subsidized program, including a 
State's or locality's contribution of Medicaid matching funds.

``Sec. 305. Construction relating to the use of non-Federal funds for 
                    health coverage

  ``Nothing in this chapter shall be construed as restricting 
the ability of any non-Federal health benefits coverage 
provider from offering abortion coverage, or the ability of a 
State or locality to contract separately with such a provider 
for such coverage, so long as only funds not authorized or 
appropriated by Federal law are used and such coverage shall 
not be purchased using matching funds required for a federally 
subsidized program, including a State's or locality's 
contribution of Medicaid matching funds.

``Sec. 306. Non-preemption of other Federal laws

  ``Nothing in this chapter shall repeal, amend, or have any 
effect on any other Federal law to the extent such law imposes 
any limitation on the use of funds for abortion or for health 
benefits coverage that includes coverage of abortion, beyond 
the limitations set forth in this chapter.  

``Sec. 307. Construction relating to complications arising from 
                    abortion

  ``Nothing in this chapter shall be construed to apply to the 
treatment of any infection, injury, disease, or disorder that 
has been caused by or exacerbated by the performance of an 
abortion. This rule of construction shall be applicable without 
regard to whether the abortion was performed in accord with 
Federal or State law, and without regard to whether funding for 
the abortion is permissible under section 308.

``Sec. 308. Treatment of abortions related to rape, incest, or 
                    preserving the life of the mother

  ``The limitations established in sections 301, 302, and 303 
shall not apply to an abortion--
          ``(1) if the pregnancy is the result of an act of 
        rape or incest; or
          ``(2) in the case where a woman suffers from a 
        physical disorder, physical injury, or physical illness 
        that would, as certified by a physician, place the 
        woman in danger of death unless an abortion is 
        performed, including a life-endangering physical 
        condition caused by or arising from the pregnancy 
        itself.

``Sec. 309. Application to District of Columbia

  ``In this chapter:
          ``(1) Any reference to funds appropriated by Federal 
        law shall be treated as including any amounts within 
        the budget of the District of Columbia that have been 
        approved by Act of Congress pursuant to section 446 of 
        the District of Columbia Home Rule Act (or any 
        applicable successor Federal law).
          ``(2) The term `Federal Government' includes the 
        government of the District of Columbia.

``Sec. 310. No government discrimination against certain health care 
                    entities

  ``(a) Nondiscrimination.--A Federal agency or program, and 
any State or local government that receives Federal financial 
assistance (either directly or indirectly), may not subject any 
individual or institutional health care entity to 
discrimination on the basis that the health care entity does 
not provide, pay for, provide coverage of, or refer for 
abortions.
  ``(b) Health Care Entity Defined.--For purposes of this 
section, the term `health care entity' includes an individual 
physician or other health care professional, a hospital, a 
provider-sponsored organization, a health maintenance 
organization, a health insurance plan, or any other kind of 
health care facility, organization, or plan.
  ``(c) Remedies.--
          ``(1) In general.--The courts of the United States 
        shall have jurisdiction to prevent and redress actual 
        or threatened violations of this section by issuing any 
        form of legal or equitable relief, including--
                  ``(A) injunctions prohibiting conduct that 
                violates this section; and
                  ``(B) orders preventing the disbursement of 
                all or a portion of Federal financial 
                assistance to a State or local government, or 
                to a specific offending agency or program of a 
                State or local government, until such time as 
                the conduct prohibited by this section has 
                ceased.
          ``(2) Commencement of action.--An action under this 
        subsection may be instituted by--
                  ``(A) any health care entity that has 
                standing to complain of an actual or threatened 
                violation of this section; or
                  ``(B) the Attorney General of the United 
                States.
  ``(d) Administration.--The Secretary of Health and Human 
Services shall designate the Director of the Office for Civil 
Rights of the Department of Health and Human Services--
          ``(1) to receive complaints alleging a violation of 
        this section;
          ``(2) subject to paragraph (3), to pursue the 
        investigation of such complaints in coordination with 
        the Attorney General; and
          ``(3) in the case of a complaint related to a Federal 
        agency (other than with respect to the Department of 
        Health and Human Services) or program administered 
        through such other agency or any State or local 
        government receiving Federal financial assistance 
        through such other agency, to refer the complaint to 
        the appropriate office of such other agency.''.

SEC. 102. AMENDMENT TO TABLE OF CHAPTERS.

  The table of chapters for title 1, United States Code, is 
amended by adding at the end the following new item:

``4. Prohibiting taxpayer funded abortions and providing for 
              conscience protections..............................301''.

   TITLE II--ELIMINATION OF CERTAIN TAX BENEFITS RELATING TO ABORTION

SEC. 201. DEDUCTION FOR MEDICAL EXPENSES NOT ALLOWED FOR ABORTIONS.

  (a) In General.--Section 213 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subsection:
  ``(g) Amounts Paid for Abortion Not Taken Into Account.--
          ``(1) In general.--An amount paid during the taxable 
        year for an abortion shall not be taken into account 
        under subsection (a).
          ``(2) Exceptions.--Paragraph (1) shall not apply to--
                  ``(A) an abortion--
                          ``(i) in the case of a pregnancy that 
                        is the result of an act of rape or 
                        incest, or
                          ``(ii) in the case where a woman 
                        suffers from a physical disorder, 
                        physical injury, or physical illness 
                        that would, as certified by a 
                        physician, place the woman in danger of 
                        death unless an abortion is performed, 
                        including a life-endangering physical 
                        condition caused by or arising from the 
                        pregnancy, and
                  ``(B) the treatment of any infection, injury, 
                disease, or disorder that has been caused by or 
                exacerbated by the performance of an 
                abortion.''.
  (b) Effective Date.--The amendment made by this section shall 
apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 202. DISALLOWANCE OF REFUNDABLE CREDIT FOR COVERAGE UNDER 
                    QUALIFIED HEALTH PLAN WHICH PROVIDES COVERAGE FOR 
                    ABORTION.

  (a) In General.--Subparagraph (A) of section 36B(c)(3) of the 
Internal Revenue Code of 1986 is amended by inserting before 
the period at the end the following: ``or any health plan that 
includes coverage for abortions (other than any abortion or 
treatment described in section 213(g)(2))''.
  (b) Option To Purchase or Offer Separate Coverage or Plan.--
Paragraph (3) of section 36B(c) of such Code is amended by 
adding at the end the following new subparagraph:
                  ``(C) Separate abortion coverage or plan 
                allowed.--
                          ``(i) Option to purchase separate 
                        coverage or plan.--Nothing in 
                        subparagraph (A) shall be construed as 
                        prohibiting any individual from 
                        purchasing separate coverage for 
                        abortions described in such 
                        subparagraph, or a health plan that 
                        includes such abortions, so long as no 
                        credit is allowed under this section 
                        with respect to the premiums for such 
                        coverage or plan.
                          ``(ii) Option to offer coverage or 
                        plan.--Nothing in subparagraph (A) 
                        shall restrict any non-Federal health 
                        insurance issuer offering a health plan 
                        from offering separate coverage for 
                        abortions described in such 
                        subparagraph, or a plan that includes 
                        such abortions, so long as premiums for 
                        such separate coverage or plan are not 
                        paid for with any amount attributable 
                        to the credit allowed under this 
                        section (or the amount of any advance 
                        payment of the credit under section 
                        1412 of the Patient Protection and 
                        Affordable Care Act).''.
  (c) Effective Date.--The amendment made by this section shall 
apply to taxable years ending after December 31, 2013.

SEC. 203. DISALLOWANCE OF SMALL EMPLOYER HEALTH INSURANCE EXPENSE 
                    CREDIT FOR PLAN WHICH INCLUDES COVERAGE FOR 
                    ABORTION.

  (a) In General.--Subsection (h) of section 45R of the 
Internal Revenue Code of 1986 is amended--
          (1) by striking ``Any term'' and inserting the 
        following:
          ``(1) In general.--Any term'', and
          (2) by adding at the end the following new paragraph:
          ``(2) Exclusion of health plans including coverage 
        for abortion.--The terms `qualified health plan' and 
        `health insurance coverage' shall not include any 
        health plan or benefit that includes coverage for 
        abortions (other than any abortion or treatment 
        described in section 213(g)(2)).''.
  (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 204. DISTRIBUTIONS FOR ABORTION EXPENSES FROM CERTAIN ACCOUNTS AND 
                    ARRANGEMENTS INCLUDED IN GROSS INCOME.

  (a) Flexible Spending Arrangements Under Cafeteria Plans.--
Section 125 of the Internal Revenue Code of 1986 is amended by 
redesignating subsections (k) and (l) as subsections (l) and 
(m), respectively, and by inserting after subsection (j) the 
following new subsection:
  ``(k) Abortion Reimbursement From Flexible Spending 
Arrangement Included in Gross Income.--Notwithstanding section 
105(b), gross income shall include any reimbursement for 
expenses incurred for an abortion (other than any abortion or 
treatment described in section 213(g)(2)) from a health 
flexible spending arrangement provided under a cafeteria plan. 
Such reimbursement shall not fail to be a qualified benefit for 
purposes of this section merely as a result of such inclusion 
in gross income.''.
  (b) Archer MSAs.--Paragraph (1) of section 220(f) of such 
Code is amended by inserting before the period at the end the 
following: ``, except that any such amount used to pay for an 
abortion (other than any abortion or treatment described in 
section 213(g)(2)) shall be included in the gross income of 
such holder''.
  (c) HSAs.--Paragraph (1) of section 223(f) of such Code is 
amended by inserting before the period at the end the 
following: ``, except that any such amount used to pay for an 
abortion (other than any abortion or treatment described in 
section 213(g)(2)) shall be included in the gross income of 
such beneficiary''.
  (d) Effective Dates.--
          (1) FSA reimbursements.--The amendment made by 
        subsection (a) shall apply to expenses incurred with 
        respect to taxable years beginning after the date of 
        the enactment of this Act.
          (2) Distributions from savings accounts.--The 
        amendments made by subsection (b) and (c) shall apply 
        to amounts paid with respect to taxable years beginning 
        after the date of the enactment of this Act.

                                  
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