House Report 113-360 - PROTECTING VOLUNTEER FIREFIGHTERS AND EMERGENCY RESPONDERS ACT OF 2014

[House Report 113-360]
[From the U.S. Government Publishing Office]

113th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 113-360

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

PROTECTING VOLUNTEER FIREFIGHTERS AND EMERGENCY RESPONDERS ACT OF 2014

_______

February 25, 2014.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed

_______

Mr. Camp, from the Committee on Ways and Means, submitted the following

R E P O R T

[To accompany H.R. 3979]

[Including cost estimate of the Congressional Budget Office]

The Committee on Ways and Means, to whom was referred the
bill (H.R. 3979) to amend the Internal Revenue Code of 1986 to
ensure that emergency services volunteers are not taken into
account as employees under the shared responsibility
requirements contained in the Patient Protection and Affordable
Care Act, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.

CONTENTS

Page
I. Summary and Background............................................2
A. Purpose and Summary................................... 2
B. Background and Need for Legislation................... 2
C. Legislative History................................... 3
II. Explanation of the Bill...........................................4
A. Emergency Services Volunteers......................... 4
III.Votes of the Committee............................................8

IV. Budget Effects of the Bill........................................8
A. Committee Estimate of Budgetary Effects............... 8
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority........................ 9
C. Cost Estimate Prepared by the Congressional Budget
Office............................................... 9
D. Macroeconomic Impact Analysis......................... 10
V. Other Matters To Be Discussed Under the Rules of the House.......10
A. Committee Oversight Findings and Recommendations...... 10
B. Statement of General Performance Goals and Objectives. 10
C. Information Relating to Unfunded Mandates............. 10
D. Applicability of House Rule XXI 5(b).................. 10
E. Tax Complexity Analysis............................... 10
F. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits.............................. 11
G. Duplication of Federal Programs....................... 11
H. Disclosure of Directed Rule Makings................... 11
VI. Changes in Existing Law Made by the Bill, As Reported............11

The amendment is as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Protecting Volunteer Firefighters and
Emergency Responders Act of 2014''.

SEC. 2. EMERGENCY SERVICES VOLUNTEERS.

(a) In General.--Section 4980H(c) of the Internal Revenue Code of
1986 is amended by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively, and by inserting after
paragraph (4) the following new paragraph:
``(5) Special rule for certain emergency services
volunteers.--Any qualified services rendered as a bona fide
volunteer to an eligible employer shall not be taken into
account under this section as service provided by an employee.
For purposes of the preceding sentence, the terms `qualified
services', `bona fide volunteer', and `eligible employer' shall
have the respective meanings given such terms under section
457(e).''.
(b) Effective Date.--The amendments made by this section shall apply
to months beginning after December 31, 2013.

I. Summary and Background

A. PURPOSE AND SUMMARY

H.R. 3979 would amend section 4980H of the Internal Revenue
Code of 1986 (``the Code'') to ensure that qualified emergency
services volunteers are not counted in determining the full-
time employees or full-time equivalents of a given employer for
purposes of the employer mandate under the Patient Protection
and Affordable Care Act (PPACA).

B. BACKGROUND AND NEED FOR LEGISLATION

Many communities rely exclusively upon volunteer fire
departments for fire protection and emergency medical services.
In these communities, volunteers may receive nominal incentives
and may be assigned to multiple 12- and 24-hour shifts--easily
allowing them to work in excess of 30 hours per week. Because
the Internal Revenue Service (``IRS'') has a history of
treating volunteer firefighters as ``employees'' for tax
purposes, concerns have been expressed that the IRS could treat
these volunteers as ``employees'' for purposes of the employer
mandate.
If incorrectly implemented, volunteer fire departments may
be unintentionally forced to comply with requirements under the
employer mandate (applying to full-time workers working 30
hours or more per week) that could force them to close or
curtail their emergency response activities.
The International Association of Fire Chiefs has warned
that over ``780,000 other volunteer firefighters throughout the
nation, are classified as `employees' of their fire
departments. This classification could force fire departments
to offer health insurance to volunteers, a requirement which
very few fire departments could meet, and even fewer volunteers
want.''
On January 10, 2014, the Department of the Treasury
(``Treasury'') released a blog posting stating that ``final
regulations, which we expect to issue shortly'' would ``not
require volunteer hours of bona fide volunteer firefighters and
volunteer emergency medical personnel at governmental or tax-
exempt organizations to be counted when determining full-time
employees (or full-time equivalents).'' As of February 4, 2014
(the date the Committee marked up and ordered reported H.R.
3979), however, no final regulations had been issued, and there
remained considerable uncertainty as to how the employer
mandate would apply to emergency services volunteers.
Subsequent to the Committee's action, on February 10, 2014,
Treasury and the IRS issued final regulations under section
4980H. The final regulations provide that hours of service do
not include hours worked as a ``bona fide volunteer.''
Unfortunately, however, arbitrary regulatory guidance--even
the final rule issued in response to the Committee's action on
H.R. 3979--does not provide the same degree of certainty as
would the Protecting Volunteer Firefighters and Emergency
Responders Act of 2014. The history of this Administration's
own rulemaking process with respect to the employer mandate
demonstrates that Treasury can and will amend its previous
regulatory guidance with little or no notice. For example, on
July 2, 2013, a Treasury blog posting unexpectedly announced a
delay of the employer mandate for 2014--overriding previously
issued guidance from December of 2012. Additionally, other
aspects of the final rule issued on February 10, 2014, suddenly
amended previous guidance by delaying this mandate for an
additional year for selected classes of employers. An Act of
Congress is the only way to offer lasting certainty to fire
departments--and much-needed peace of mind to our brave
emergency services volunteers--across the nation.

C. LEGISLATIVE HISTORY

Background

H.R. 3979 was introduced on January 31, 2014, and was
referred to the Committee on Ways and Means.

Committee action

The Committee on Ways and Means marked up H.R. 3979, the
Protecting Volunteer Firefighters and Emergency Responders Act
of 2014, on February 4, 2014, and ordered the bill, as amended,
favorably reported (with a quorum being present).

Committee hearings

On January 28, 2014, the Full Committee held a hearing on
the ``Impact of the Employer Mandate's Definition of Full-time
Employee on Jobs and Opportunities.''

II. Explanation of the Bill

A. EMERGENCY SERVICES VOLUNTEERS

PRESENT LAW

Employer shared responsibility for health coverage

In general
Under PPACA,\1\ as amended by the Health Care and Education
Reconciliation Act of 2010\2\ (generally referred to
collectively as the ``Affordable Care Act'' or ``ACA''), an
applicable large employer may be subject to a tax, called an
``assessable payment,'' for a month if one or more of its full-
time employees is certified to the employer as receiving for
the month a premium assistance credit for health insurance
purchased on an American Health Benefit Exchange or reduced
cost-sharing for the employee's share of expenses covered by
such health insurance.\3\ (This is sometimes referred to as the
employer shared responsibility requirement.) As discussed
below, the amount of the assessable payment depends on whether
the employer offers its full-time employees and their
dependents the opportunity to enroll in minimum essential
coverage under a group health plan sponsored by the employer
and, if it does, whether the coverage offered is affordable and
provides minimum value.
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\1\Pub. L. No 111-148, enacted March 23, 2010.
\2\Pub. L. No. 111-152, enacted March 30, 2010.
\3\Sec. 4980H, added to the Code by section 1513 of PPACA and
amended by 10106 of PPACA and section 1003 of the Health Care and
Education Reconciliation Act of 2010. (Unless otherwise stated, all
section references herein are to the Internal Revenue Code of 1986, as
amended.) An applicable large employer is also subject to annual
reporting requirements under section 6056. Premium assistance credits
for health insurance purchased on an American Health Benefit Exchange
are provided under section 36B. Reduced cost-sharing for an
individual's share of expenses covered by such health insurance is
provided under section 1402 of PPACA. For further information on these
provisions, see Part III.B-D of Joint Committee on Taxation, Present
Law and Background Relating to the Tax-Related Provisions in the
Affordable Care Act (JCX-6-13), March 4, 2013, available on the Joint
Committee on Taxation website at www.jct.gov.
---------------------------------------------------------------------------
Under the ACA, these rules are effective for months
beginning after December 31, 2013. However, the IRS has
announced that no assessable payments will be assessed for
2014.\4\ On February 10, 2014, Treasury and the IRS issued
final regulations on the employer shared responsibility
requirement and announced that no assessable payments for 2015
will apply to applicable large employers that have fewer than
100 full-time employees and full-time equivalent employees and
meet certain other requirements.\5\
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\4\Notice 2013-45, 2013-31 I.R.B. 116, Part III, Q&A-2.
\5\Section XV.D.6 of the preamble to the final regulations, 79 Fed.
Reg. 8544, 8574-8575, February 12, 2014.
---------------------------------------------------------------------------
Definitions of full-time employee and applicable large
employer
For purposes of applying these rules, full-time employee
means, with respect to any month, an employee who is employed
on average at least 30 hours of service per week. Hours of
service are to be determined under regulations, rules, and
guidance prescribed by the Secretary of the Treasury, in
consultation with the Secretary of Labor, including rules for
employees who are not compensated on an hourly basis.
Applicable large employer generally means, with respect to
a calendar year, an employer who employed an average of at
least 50 full-time employees on business days during the
preceding calendar year.\6\ Solely for purposes of determining
whether an employer is an applicable large employer (that is,
whether the employer has at least 50 full-time employees),
besides the number of full-time employees, the employer must
include the number of its full-time equivalent employees for a
month, determined by dividing the aggregate number of hours of
service of employees who are not full-time employees for the
month by 120. In addition, in determining whether an employer
is an applicable large employer, members of the same controlled
group, group under common control, and affiliated service group
are treated as a single employer.\7\ If the group is an
applicable large employer under this test, each member of the
group is an applicable large employer even if any member by
itself would not be an applicable large employer.\8\
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\6\Additional rules apply, for example, in the case of an employer
that was not in existence for the entire preceding calendar year.
\7\The rules for determining controlled group, group under common
control, and affiliated service group under section 414(b), (c), (m)
and (o) apply for this purpose.
\8\In addition, in determining assessable payments (as discussed
herein), only one 30-employee reduction in full-time employees applies
to the group and is allocated among the members ratably based on the
number of full-time employees employed by each member.
---------------------------------------------------------------------------
Assessable payments
If an applicable large employer does not offer its full-
time employees and their dependents minimum essential coverage
under an employer-sponsored plan and at least one full-time
employee is so certified to the employer, the employer may be
subject to an assessable payment of $2,000\9\ (divided by 12
and applied on a monthly basis) multiplied by the number of its
full-time employees minus 30, regardless of the number of full-
time employees so certified. For example, in 2016, Employer A
fails to offer minimum essential coverage and has 100 full-time
employees, 10 of whom receive premium assistance credits for
the entire year. The employer's assessable payment is $2,000
for each employee over the 30-employee threshold, for a total
of $140,000 ($2,000 multiplied by 70, that is, 100-30).
---------------------------------------------------------------------------
\9\For calendar years after 2014, the $2,000 dollar amount, and the
$3,000 dollar amount referenced herein, are increased by the percentage
(if any) by which the average per capita premium for health insurance
coverage in the United States for the preceding calendar year (as
estimated by the Secretary of Health and Human Services (``HHS'') no
later than October 1 of the preceding calendar year) exceeds the
average per capita premium for 2013 (as determined by the Secretary of
HHS), rounded down to the next lowest multiple of $10.
---------------------------------------------------------------------------
Generally an employee who is offered minimum essential
coverage under an employer-sponsored plan is not eligible for a
premium assistance credit or reduced cost-sharing unless the
coverage is unaffordable or fails to provide minimum value.\10\
However, if an employer offers its full-time employees and
their dependents minimum essential coverage under an employer-
sponsored plan and at least one full-time employee is certified
as receiving a premium assistance credit or reduced cost-
sharing (because the coverage is unaffordable or fails to
provide minimum value), the employer may be subject to an
assessable payment of $3,000 (divided by 12 and applied on a
monthly basis) multiplied by the number of such full-time
employees. However, the assessable payment in this case is
capped at the amount that would apply if the employer failed to
offer its full-time employees and their dependents minimum
essential coverage. For example, in 2016, Employer B offers
minimum essential coverage and has 100 full-time employees, 20
of whom receive premium assistance credits for the entire year.
The employer's assessable payment before consideration of the
cap is $3,000 for each full-time employee receiving a credit,
for a total of $60,000. The cap on the assessable payment is
the amount that would have applied if the employer failed to
offer coverage, or $140,000 ($2,000 multiplied by 70, that is,
100-30). In this example, the cap therefore does not affect the
amount of the assessable payment, which remains at $60,000.
---------------------------------------------------------------------------
\10\Under section 36B(c)(2)(C), coverage under an employer-
sponsored plan is unaffordable if the employee's share of the premium
for self-only coverage exceeds 9.5 percent of household income, and the
coverage fails to provide minimum value if the plan's share of total
allowed cost of provided benefits is less than 60 percent of such
costs.
---------------------------------------------------------------------------
Proposed regulations
The IRS issued proposed regulations on the employer shared
responsibility requirement on December 28, 2012.\11\ The
preamble to the proposed regulations invited the public to
provide comments on issues relating to the application of the
employer shared responsibility requirement. As of February 4,
2014--the date on which the Ways and Means Committee marked up
and ordered reported H.R. 3979, as amended--final regulations
had not yet been issued. As noted above and discussed further
below, Treasury issued final regulations on February 10, 2014.
---------------------------------------------------------------------------
\11\REG-138006-12, 78 Fed. Reg. 218, January 2, 2013. The IRS
issued an advance notice of the proposed regulations on December 28,
2012. As noted above, the IRS subsequently announced that no assessable
payments will be assessed for 2014.
---------------------------------------------------------------------------

Emergency services volunteers

In general
In a January 10, 2014, blog posting, Treasury addressed the
application of the employer shared responsibility requirement
to individuals performing emergency services on a volunteer
basis.\12\ Treasury noted that, in response to the request for
public comments on the proposed regulations, numerous comments
were received on the treatment of services performed by
volunteer firefighters and emergency medical personnel. The
Treasury blog posting indicated that the then-forthcoming final
regulations relating to the employer shared responsibility
requirement generally would not require volunteer hours of bona
fide volunteer firefighters and volunteer emergency medical
personnel at governmental or tax-exempt organizations to be
counted when determining full-time employees (or full-time
equivalents).
---------------------------------------------------------------------------
\12\``Treasury Ensures Fair Treatment for Volunteer Firefighters
and Emergency Responders Under the Affordable Care Act,'' posted by
Mark J. Mazur, Assistant Treasury Secretary for Tax Policy, at Treasury
Notes (Treasury's official blog), January 10, 2014, available at http:/
/www.treasury.gov/connect/blog/Pages/Treasury-Ensures-Fair-Treatment-
for-Volunteer-Firefighters-and-Emergency-Responders-under-the-
Affordable-Care-Act-Under-ACA.aspx.
---------------------------------------------------------------------------
The Treasury blog posting referred to existing Code rules
relating to volunteers performing emergency services for an
``eligible'' employer, that is, a State or local government or
an organization (other than a government entity) exempt from
income tax.\13\ These rules provide special treatment for
certain deferred compensation plans providing only length of
service awards to bona fide volunteers (or their beneficiaries)
on account of qualified services performed by the volunteers.
For this purpose, an individual is a bona fide volunteer if the
individual's only compensation for performing qualified
services is in the form of (1) reimbursement for (or a
reasonable allowance for) reasonable expenses incurred in the
performance of such services, or (2) reasonable benefits
(including length of service awards), and nominal fees for such
services, customarily paid by eligible employers in connection
with the performance of such services by volunteers. Qualified
services for this purpose are fire fighting and prevention
services, emergency medical services, and ambulance services.
---------------------------------------------------------------------------
\13\Sec. 457(e)(11)(A)(ii),(B) and (C).
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Final regulations
As noted above, final regulations were issued February 10,
2014, after the date on which the Ways and Means Committee
marked up and ordered reported H.R. 3979, as amended. Under the
final regulations, hours spent performing services as a bona
fide volunteer are not treated as ``hours of service''
performed by employees for purposes of the employer shared
responsibility requirement.\14\ Thus, such hours are
disregarded in determining an employer's full-time employees
and full-time equivalent employees. For this purpose, the
regulations define a bona fide volunteer as an employee of a
government entity or tax-exempt organization\15\ whose only
compensation from that entity or organization is in the form of
(1) reimbursement for (or reasonable allowance for) reasonable
expenses incurred in the performance of services by volunteers,
or (2) reasonable benefits (including length of service
awards), and nominal fees, customarily paid by similar entities
in connection with the performance of services by
volunteers.\16\ This definition is not limited to volunteers
performing emergency services.
---------------------------------------------------------------------------
\14\Treas. Reg. sec. 54.4980H-1(a)(24)(ii)(A).
\15\The regulations refer specifically to an organization described
in section 501(c) that is exempt from taxation under section 501(a).
\16\Treas. Reg. sec. 54.4980H-1(a)(7).
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REASONS FOR CHANGE

When the Committee met to consider H.R. 3979 on February 4,
2014, Treasury had merely indicated through a blog posting that
it intended to address, at some undetermined future time, the
treatment of emergency services volunteers for purposes of the
employer shared responsibility requirement. The Committee noted
that, until final regulations providing further detail were
issued, uncertainty existed as to how the requirement would
apply in this context. In ordering reported H.R. 3979, as
amended, the Committee expressed its view that it was important
to provide clarity to these volunteers and the organizations to
which they provide services, services that are vital to
American communities.
The Committee has subsequently taken note that, in response
to the Committee's action on this bill, Treasury and the IRS on
February 10, 2014, issued final regulations addressing this
general issue. In view of several recent instances where the
Administration has significantly altered its own previous
regulatory guidance concerning the employer mandate, however,
the Committee remains concerned that emergency services
volunteers face unwarranted uncertainty without a modification
to the underlying statute itself. The Committee, therefore,
continues to believe that the statutory change proposed in H.R.
3979 is necessary to provide that important clarity.

EXPLANATION OF PROVISION

Under the provision, for purposes of the employer shared
responsibility requirement, any qualified services as a bona
fide volunteer for an eligible employer are not taken into
account as service provided by an employee. For this purpose,
qualified services, bona fide volunteer, and eligible employer
have the same meanings as for purposes of the rules relating to
deferred compensation plans of eligible employers.

EFFECTIVE DATE

The provision is effective for months beginning after
December 31, 2013.

III. Votes of the Committee

In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the vote of the Committee on Ways and Means in its
consideration of H.R. 3979, the ``Protecting Volunteer
Firefighters and Emergency Responders Act of 2014.''
The bill, H.R. 3979, was ordered favorably reported as
amended by a roll call vote of 37 yeas to 0 nays (with a quorum
being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Camp......................... 3 ....... ......... Mr. Levin.......... 3 ....... .........
Mr. Johnson...................... 3 ....... ......... Mr. Rangel......... 3 ....... .........
Mr. Brady........................ 3 ....... ......... Mr. McDermott...... 3 ....... .........
Mr. Ryan......................... 3 ....... ......... Mr. Lewis.......... 3 ....... .........
Mr. Nunes........................ 3 ....... ......... Mr. Neal........... 3 ....... .........
Mr. Tiberi....................... 3 ....... ......... Mr. Becerra........ ....... ....... .........
Mr. Reichert..................... 3 ....... ......... Mr. Doggett........ 3 ....... .........
Mr. Boustany..................... 3 ....... ......... Mr. Thompson....... 3 ....... .........
Mr. Roskam....................... 3 ....... ......... Mr. Larson......... 3 ....... .........
Mr. Gerlach...................... 3 ....... ......... Mr. Blumenauer..... 3 ....... .........
Mr. Price........................ 3 ....... ......... Mr. Kind........... 3 ....... .........
Mr. Buchanan..................... 3 ....... ......... Mr. Pascrell....... 3 ....... .........
Mr. Smith........................ 3 ....... ......... Mr. Crowley........ 3 ....... .........
Mr. Schock....................... 3 ....... ......... Ms. Schwartz....... ....... ....... .........
Ms. Jenkins...................... 3 ....... ......... Mr. Davis.......... 3 ....... .........
Mr. Paulsen...................... 3 ....... ......... Ms. Sanchez........ 3 ....... .........
Mr. Marchant..................... 3 ....... .........
Ms. Black........................ 3 ....... .........
Mr. Reed......................... 3 ....... .........
Mr. Young........................ 3 ....... .........
Mr. Kelly........................ 3 ....... .........
Mr. Griffin...................... 3 ....... .........
Mr. Renacci...................... 3 ....... .........
----------------------------------------------------------------------------------------------------------------

IV. Budget Effects of the Bill

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 3979, as
reported.
The bill, as reported, is estimated to have no effect on
Federal budget receipts for fiscal years 2014-2024.

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX EXPENDITURES BUDGET
AUTHORITY

In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority. The
Committee states further that the bill involves no new or
increased tax expenditures.

C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE

In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.

U.S. Congress,
Congressional Budget Office,
Washington, DC, February 12, 2014.
Hon. Dave Camp,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3979, the
Protecting Volunteer Firefighters and Emergency Responders Act
of 2014.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Logan
Timmerhoff.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure.

H.R. 3979--Protecting Volunteer Firefighters and Emergency Responders
Act of 2014

H.R. 3979 would amend the Internal Revenue Code to exclude
volunteer hours of volunteer firefighters and emergency medical
personnel from counting towards the calculation of the number
of a firm's full-time employees for purposes of certain
provisions of the Affordable Care Act. Those provisions require
certain employers with 50 or more full-time equivalent
employees to either offer health care coverage of a certain
standard or be subject to penalties.
CBO and the staff of the Joint Committee on Taxation (JCT)
estimate that H.R. 3979 would have no significant budgetary
effect because the U.S. Treasury Department has issued final
regulations that, by CBO's and JCT's assessment, provide the
same treatment for those groups as H.R. 3979. Enacting H.R.
3979 would not affect direct spending or revenues; therefore,
pay-as-you-go procedures do not apply.
JCT has determined that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Logan
Timmerhoff. The estimate was approved by David Weiner,
Assistant Director for Tax Analysis.

D. MACROECONOMIC IMPACT ANALYSIS

In compliance with clause 3(h)(2) of rule XIII of the Rules
of the House of Representatives, the following statement is
made by the Joint Committee on Taxation with respect to the
provisions of the bill amending the Internal Revenue Code of
1986: the effects of the bill on economic activity are so small
as to be incalculable within the context of a model of the
aggregate economy.

V. Other Matters To Be Discussed Under the Rules of the House

A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives (relating to oversight findings),
the Committee advises that it was as a result of the
Committee's review of the provisions of H.R. 3979 that the
Committee concluded that it is appropriate to report the bill,
as amended, favorably to the House of Representatives with the
recommendation that the bill do pass.

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill contains no measure that authorizes funding, so no
statement of general performance goals and objectives for which
any measure authorizes funding is required.

C. INFORMATION RELATING TO UNFUNDED MANDATES

This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.

D. APPLICABILITY OF HOUSE RULE XXI 5(B)

Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
involve any Federal income tax rate increases within the
meaning of the rule.

E. TAX COMPLEXITY ANALYSIS

Section 4022(b) of the Internal Revenue Service
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'')
requires the staff of the Joint Committee on Taxation (in
consultation with the Internal Revenue Service and the Treasury
Department) to provide a tax complexity analysis. The
complexity analysis is required for all legislation reported by
the Senate Committee on Finance, the House Committee on Ways
and Means, or any committee of conference if the legislation
includes a provision that directly or indirectly amends the
Internal Revenue Code and has widespread applicability to
individuals or small businesses.
Pursuant to clause 3(h)(1) of rule XIII of the Rules of the
House of Representatives, the staff of the Joint Committee on
Taxation has determined that a complexity analysis is not
required under section 4022(b) of the IRS Reform Act because
the bill contains no provisions that amend the Code and that
have ``widespread applicability'' to individuals or small
businesses, within the meaning of the rule.

F. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF
BENEFITS

With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.

G. DUPLICATION OF FEDERAL PROGRAMS

In compliance with Sec. 3(j)(2) of H. Res. 5 (113th
Congress), the Committee states that no provision of the bill
establishes or reauthorizes: (1) a program of the Federal
Government known to be duplicative of another Federal program,
(2) a program included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or (3) a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance, published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169).

H. DISCLOSURE OF DIRECTED RULE MAKINGS

In compliance with Sec. 3(k) of H. Res. 5 (113th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that the bill requires no
directed rule makings within the meaning of such section.

VI. Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

INTERNAL REVENUE CODE OF 1986

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Subtitle D--Miscellaneous Excise Taxes

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CHAPTER 43--QUALIFIED PENSION, ETC., PLANS

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SEC. 4980H. SHARED RESPONSIBILITY FOR EMPLOYERS REGARDING HEALTH
COVERAGE.

(a) * * *

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(5) Special rule for certain emergency services
volunteers.--Any qualified services rendered as a bona
fide volunteer to an eligible employer shall not be
taken into account under this section as service
provided by an employee. For purposes of the preceding
sentence, the terms ``qualified services'', ``bona fide
volunteer'', and ``eligible employer'' shall have the
respective meanings given such terms under section
457(e).
[(5)] (6) Inflation adjustment.--
(A) * * *

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[(6)] (7) Other definitions.--Any term used in this
section which is also used in the Patient Protection
and Affordable Care Act shall have the same meaning as
when used in such Act.
[(7)] (8) Tax nondeductible.--For denial of deduction
for the tax imposed by this section, see section
275(a)(6).

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