[House Report 114-656]
[From the U.S. Government Publishing Office]


114th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      114-656

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



 
               TRIBAL EMPLOYMENT AND JOBS PROTECTION ACT

                                _______
                                

  July 5, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3080]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 3080) to amend the Internal Revenue Code of 1986 to 
provide an exception to the employer health insurance mandate 
for Indian tribal governments and tribally owned businesses, 
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
 II. EXPLANATION OF THE BILL..........................................3
          A. Exception to Employer Health Insurance Mandate for 
              Indian Tribal Governments and Tribally Owned 
              Businesses (sec. 2 of the bill and sec. 4980H of 
              the Code)..........................................     3
III. VOTES OF THE COMMITTEE...........................................6
 IV. BUDGET EFFECTS OF THE BILL.......................................7
          A. Committee Estimate of Budgetary Effects.............     7
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     7
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     8
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......11
          A. Committee Oversight Findings and Recommendations....    11
          B. Statement of General Performance Goals and 
              Objectives.........................................    11
          C. Information Relating to Unfunded Mandates...........    11
          D. Applicability of House Rule XXI 5(b)................    11
          E. Tax Complexity Analysis.............................    11
          F. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    12
          G. Duplication of Federal Programs.....................    12
          H. Disclosure of Directed Rule Makings.................    12
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........12
VII. DISSENTING VIEWS................................................21

    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 ``Tribal Employment and Jobs Protection 
Act''.

SEC. 2. EXCEPTION TO EMPLOYER HEALTH INSURANCE MANDATE FOR INDIAN 
                    TRIBAL GOVERNMENTS AND TRIBALLY OWNED BUSINESSES.

  (a) In General.--Section 4980H(c)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                  ``(G) Exception for indian tribal governments and 
                tribally owned businesses.--
                          ``(i) In general.--The term `applicable large 
                        employer' shall not include any tribal 
                        employer.
                          ``(ii) Tribal employer.--For purposes of this 
                        subparagraph, the term `tribal employer' 
                        means--
                                  ``(I) any Indian tribal government 
                                (as defined in section 7701(a)(40)) or 
                                subdivision thereof, or any agency or 
                                instrumentality of either,
                                  ``(II) any tribal organization (as 
                                defined in section 4(l) of the Indian 
                                Self-Determination and Education 
                                Assistance Act (25 U.S.C. 450b(l))),
                                  ``(III) any corporation if more than 
                                50 percent (determined by vote and 
                                value) of the outstanding stock of such 
                                corporation is owned, directly or 
                                indirectly, by any entity described in 
                                subclause (I) or (II), and
                                  ``(IV) any partnership if more than 
                                50 percent of the value of the capital 
                                and profits interests are owned, 
                                directly or indirectly, by any entity 
                                described in subclause (I) or (II).''.
  (b) Effective Date.--The amendment made by this section shall apply 
to months beginning after December 31, 2015.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 3080, as reported by the Committee on Ways 
and Means, provides an exception to the employer health 
insurance mandate for Indian tribal governments and tribally 
owned businesses.

                 B. Background and Need for Legislation

    The President's health care law, the Affordable Care Act 
(ACA), imposes a new requirement on employers that employ more 
than fifty full-time equivalent workers (FTEs) to offer health 
coverage to their workers or pay one of two penalties beginning 
in 2014. Full-time workers for the purposes of this employer 
mandate are defined as those who work at least 30 hours per 
week.
    H.R. 3080 exempts tribal organizations, governments, and 
majority-owned tribal corporations and partnerships from 
Obamacare's employer mandate. Historically, Indian Health 
Services provides health services to individuals, and as such, 
tribal members are exempted from the ACA's individual mandate. 
However, this exemption did not extend to tribes who act as 
employers. It is inconsistent to omit individuals from the 
individual mandate because they are covered by IHS, while at 
the same time requiring employers, employing the same 
individuals, to participate in the employer mandate or pay a 
penalty. Further, it is the position of the Committee that all 
large businesses--including those that are tribally-owned--
should have relief from the employer mandate. The current law 
requirement could be financially devastating to certain, 
tribally-owned large employers and only increase the 
unemployment rate for these tribes. For these reasons, 
tribally-owned businesses should be exempted from the employer 
mandate.

                         C. Legislative History


Background

    H.R. 3080 was introduced on July 15, 2015, and was referred 
to the Committee on Ways and Means.

Committee action

    The Committee on Ways and Means marked up H.R. 3080, the 
Tribal Employment and Jobs Protection Act, on June 15, 2016, 
and ordered the bill, as amended, favorably reported (with 
quorum being present).

Committee hearings

    The policy issues surrounding employer mandate and their 
impact on access to health care have been discussed at four 
Ways and Means hearings during the 114th Congress:
           Subcommittee on Health Hearing on The 
        Individual and Employer Mandates in the President's 
        Healthcare Law (April 14, 2015);
           Full Committee Hearing on the Tax Treatment 
        of Health Care (April 14, 2016);
           Subcommittee on Tax Policy Member Day 
        Hearing on Tax Legislation (May 12, 2016);
           Subcommittee on Health Member Day Hearing on 
        Tax-Related Proposals to Improve Health Care (May 17, 
        2016).

                      II. EXPLANATION OF THE BILL


  A. Exception to Employer Health Insurance Mandate for Indian Tribal 
Governments and Tribally Owned Businesses (sec. 2 of the bill and sec. 
                           4980H of the Code)


                              PRESENT LAW

Employer shared responsibility for health coverage

            In general
    Under the Patient Protection and Affordable Care Act 
(``PPACA''),\1\ as amended by the Health Care and Education 
Reconciliation Act of 2010\2\ (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\ As discussed below, whether an 
applicable large employer owes an assessable payment and the 
amount of any assessable payment depend 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.\4\
---------------------------------------------------------------------------
    \1\Pub. L. No. 111-148.
    \2\Pub. L. No. 111-152.
    \3\Sec. 4980H. This is sometimes referred to as the employer shared 
responsibility requirement or employer mandate. 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.
    \4\Under the ACA, these rules are effective for months beginning 
after December 31, 2013. However, in Notice 2013-45, 2013-31 I.R.B. 
116, Part III, Q&A-2, the Internal Revenue Service (``IRS'') announced 
that no assessable payments will be assessed for 2014. In addition, in 
2014, the IRS 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. Section XV.D.6 of the preamble to the final regulations, 
T.D. 9655, 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 
(``Secretary''), 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.\5\ 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 for that month (up to a maximum of 120 for any 
employee) 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.\6\
---------------------------------------------------------------------------
    \5\Additional rules apply, for example, in the case of an employer 
that was not in existence for the entire preceding calendar year.
    \6\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. If the group is an applicable large 
employer under this test, each member of the group is an applicable 
large employer and subject to the employer shared responsibility 
requirement even if the member by itself would not be an applicable 
large employer. 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 $2,160 (for 2016)\7\ 
(divided by 12 and applied on a monthly basis) multiplied by 
the number of its full-time employees in excess of 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 $2,160 for each employee over 
the 30-employee threshold, for a total of $151,200 ($2,160 
multiplied by 70, that is, 100 minus 30).
---------------------------------------------------------------------------
    \7\For calendar years after 2014, the dollar amounts (which were 
initially $2,000 and $3,000) 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 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.\8\ 
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 $3,240 (for 2016) (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 $3,240 for each full-time employee 
receiving a credit, for a total of $64,800. The cap on the 
assessable payment is the amount that would have applied if the 
employer failed to offer coverage, or $151,200 ($2,160 
multiplied by 70, that is, 100 minus 30). In this example, the 
cap therefore does not affect the amount of the assessable 
payment, which remains at $64,800.
---------------------------------------------------------------------------
    \8\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 (for 2016) 9.66 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. Treas. Reg. sec. 1.36B-2(c)(3)(vi) provides guidance on the 
determination of whether coverage provides minimum value.
---------------------------------------------------------------------------

Individual requirement to maintain minimum essential coverage

    Under the ACA, individuals must be covered by a health plan 
that provides at least minimum essential coverage or be subject 
to a tax for failure to maintain the coverage (commonly 
referred to as the ``individual mandate'').\9\ The tax is 
imposed for any month that an individual does not have minimum 
essential coverage unless the individual qualifies for an 
exemption for the month as described below. Members of Indian 
tribes are exempt from this requirement.\10\
---------------------------------------------------------------------------
    \9\Sec. 5000A. Treas. Reg. secs. 1.5000A-1 through 1.5000A-5 
provide guidance on this provision.
    \10\For this purpose, the definition of Indian tribe in section 
45A(c)(6) applies.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Committee believes that the employer shared 
responsibility requirement imposes an undue and unnecessary 
burden on tribal employers by requiring them to offer minimum 
essential coverage to their full-time employees, many of whom 
are tribal members. Tribal members are entitled to health care 
through the Indian Health Service and are exempt from the 
individual shared responsibility requirement, and thus do not 
need to be provided minimum essential coverage by a tribal 
employer.

                        EXPLANATION OF PROVISION

    Under the provision, for purposes of the employer shared 
responsibility requirement, the definition of applicable large 
employer does not include any tribal employer. For this 
purpose, the
term tribal employer includes (1) any Indian tribal 
government\11\ or subdivision thereof, or any agency or 
instrumentality of either, or (2) any tribal organization.\12\ 
Tribal employer also includes any corporation if more than 50 
percent (determined by vote and value) of the outstanding stock 
of such corporation is owned (directly or indirectly), and any 
partnership if more than 50 percent of the value of the capital 
and profits interests are owned (directly or indirectly), by 
any tribal entity described in (1) or (2) above.
---------------------------------------------------------------------------
    \11\Indian tribal government is defined in section 7701(a)(40).
    \12\Tribal organization for this purpose is defined in section 4(l) 
of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450b(l)).
---------------------------------------------------------------------------

                             EFFECTIVE DATE

    The provision applies to months beginning after December 
31, 2015.

                      III. VOTES OF THE COMMITTEE

    In compliance with the Rules of the House of 
Representatives, the following statement is made concerning the 
vote of the Committee on Ways and Means during the markup 
consideration of H.R. 3080, the ``Tribal Employment and Jobs 
Protection Act,'' on June 15, 2016.
    The bill, H.R. 3080, was ordered favorably reported to the 
House of Representatives as amended by a roll call vote of 24 
yeas to 13 nays (with a quorum being present). The vote was as 
follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Rangel.......  ........        X   .........
Mr. Nunes......................        X   ........  .........  Mr. McDermott....  ........        X   .........
Mr. Tiberi.....................        X   ........  .........  Mr. Lewis........  ........        X   .........
Mr. Reichert...................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Boustany...................        X   ........  .........  Mr. Becerra......  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Price......................        X   ........  .........  Mr. Thompson.....  ........        X   .........
Mr. Buchanan...................        X   ........  .........  Mr. Larson.......  ........        X   .........
Mr. Smith (NE).................        X   ........  .........  Mr. Blumenauer...  ........        X   .........
Ms. Jenkins....................        X   ........  .........  Mr. Kind.........  ........  ........  .........
Mr. Paulsen....................        X   ........  .........  Mr. Pascrell.....  ........        X   .........
Mr. Marchant...................        X   ........  .........  Mr. Crowley......  ........  ........  .........
Ms. Black......................        X   ........  .........  Mr. Davis........  ........        X   .........
Mr. Reed.......................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Young......................        X
Mr. Kelly......................        X
Mr. Renacci....................        X
Mr. Meehan.....................        X
Ms. Noem.......................        X
Mr. Holding....................        X
Mr. Smith (MO).................        X
Mr. Dold.......................        X
Mr. Rice.......................        X
----------------------------------------------------------------------------------------------------------------

                     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. 3080, as 
reported.
    The bill, as reported, is estimated to have the following 
effect on Federal budget receipts for fiscal years 2017-2026:

                                                  Fiscal Years
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
  2017      2018      2019     2020     2021     2022     2023     2024     2025     2026    2017-21    2017-26
----------------------------------------------------------------------------------------------------------------
     -3       -13       -15      -11      -11      -12      -12      -13      -14      -15        -53       -119
----------------------------------------------------------------------------------------------------------------
[1] Estimate includes the outlay effects:
----------------------------------------------------------------------------------------------------------------
   2017      2018      2019     2020     2021     2022     2023     2024     2025     2026    2017-21    2017-26
----------------------------------------------------------------------------------------------------------------
      3         6         9       12       12       12       13       14       14       15         41        110
----------------------------------------------------------------------------------------------------------------
[2] Estimate includes the following off-budget effects:
----------------------------------------------------------------------------------------------------------------
   2017      2018      2019     2020     2021     2022     2023     2024     2025     2026    2017-21    2017-26
----------------------------------------------------------------------------------------------------------------
      1         3         4        4        5        5        5        5        6        6         17         44
----------------------------------------------------------------------------------------------------------------

    Pursuant to clause 8 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 gross 
budgetary effect (before incorporating macroeconomic effects) 
in any fiscal year is less than 0.25 percent of the current 
projected gross domestic product of the United States for that 
fiscal year; therefore, the bill is not ``major legislation'' 
for purposes of requiring that the estimate include the 
budgetary effects of changes in economic output, employment, 
capital stock and other macroeconomic variables.

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 increased budget authority. The Committee further 
states that the revenue-reducing tax provisions involve 
increased tax expenditures. (See amounts in table in Part IV.A. 
above.)

      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, June 30, 2016.
Hon. Kevin Brady,
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. 3080, the Tribal 
Employment and Jobs Protection Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Peter 
Huether.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 3080--Tribal Employment and Jobs Protection Act

    H.R. 3080 would amend the Internal Revenue Code to exclude 
tribal employers from the requirements under current law that 
some large employers who do not offer health insurance coverage 
that meets certain standards must pay a penalty if they have 
any full-time employees who receive a subsidy through a health 
insurance marketplace. Tribal employers include Indian tribal 
governments and certain other tribal organizations, or certain 
corporations largely owned by such tribal entities.
    The staff of the Joint Committee on Taxation (JCT) 
estimates that enacting H.R. 3080 would reduce revenues by $9 
million over the 2016-2026 period and increase outlays by $110 
million over the same period. As a result, H.R. 3080 would 
increase federal deficits by $119 million over the 2016-2026 
period, JCT estimates. The change in revenues includes an 
increase of $44 million in off-budget revenues (from Social 
Security payroll taxes). As a result, on-budget deficits are 
expected to increase by $163 million over the 2016-2026 period. 
JCT also estimates that the bill would have a small effect on 
health insurance coverage, slightly lowering the number of 
individuals with employment-based coverage and increasing the 
number of uninsured individuals.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
revenues or direct spending. The net changes in revenues and 
direct spending that are subject to those pay-as-you-go 
procedures are shown in the following table. Only on-budget 
changes to revenues and direct spending are subject to pay-as-
you-go procedures.
    CBO and JCT estimate that enacting the bill would not 
increase net direct spending or on-budget deficits by more than 
$5 billion in any of the four 10-year periods beginning in 
2027.
    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 Peter Huether. 
The estimate was approved by Mark Booth, Unit Chief, Revenue 
Estimating.

           CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3080, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON JUNE 15, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2016    2017    2018    2019    2020    2021    2022    2023    2024    2025    2026   2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          NET INCREASE IN THE ON-BUDGET DEFICIT
 
Statutory Pay-As-You-Go Effects...........       0       4      16      19      15      16      17      17      18      20      21         70        163
Memorandum:a
    Change in Outlays.....................       0       3       6       9      12      12      12      13      14      14      15         41        110
    Change in On-Budget Revenues..........       0      -1     -10     -10      -3      -4      -5      -4      -4      -6      -6        -29        -53
    Change in Off-Budget Revenues.........       0       1       3       4       4       5       5       5       5       6       6         17         44
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Staff of the Joint Committee on Taxation.
aA positive sign for outlays indicates an increase in outlays. A positive sign for revenues indicates an increase in revenues.
Note: Components may not sum to total because of rounding.

     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 Committees 
review of the provisions of H.R. 3080 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

    The following statement is made pursuant to clause 3(h)(1) 
of rule XIII of the Rules of the House of Representatives. 
Section 4022(b) of the Internal Revenue Service Restructuring 
and Reform Act of 1998 (``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 of 
1986 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 Internal Revenue 
Code of 1986 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(g)(2) of H. Res. 5 (114th 
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(i) of H. Res. 5 (114th 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


  A. Text of Existing Law Amended or Repealed by the Bill, as Reported

    In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *



Subtitle D--Miscellaneous Excise Taxes

           *       *       *       *       *       *       *


CHAPTER 43--QUALIFIED PENSION, ETC., PLANS

           *       *       *       *       *       *       *


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

  (a) Large Employers Not Offering Health Coverage.--If--
          (1) any applicable large employer fails to offer to 
        its full-time employees (and their dependents) the 
        opportunity to enroll in minimum essential coverage 
        under an eligible employer-sponsored plan (as defined 
        in section 5000A(f)(2)) for any month, and
          (2) at least one full-time employee of the applicable 
        large employer has been certified to the employer under 
        section 1411 of the Patient Protection and Affordable 
        Care Act as having enrolled for such month in a 
        qualified health plan with respect to which an 
        applicable premium tax credit or cost-sharing reduction 
        is allowed or paid with respect to the employee,
then there is hereby imposed on the employer an assessable 
payment equal to the product of the applicable payment amount 
and the number of individuals employed by the employer as full-
time employees during such month.
  (b) Large Employers Offering Coverage With Employees Who 
Qualify for Premium Tax Credits or Cost-Sharing Reductions.--
          (1) In general.--If--
                  (A) an applicable large employer offers to 
                its full-time employees (and their dependents) 
                the opportunity to enroll in minimum essential 
                coverage under an eligible employer-sponsored 
                plan (as defined in section 5000A(f)(2)) for 
                any month, and
                  (B) 1 or more full-time employees of the 
                applicable large employer has been certified to 
                the employer under section 1411 of the Patient 
                Protection and Affordable Care Act as having 
                enrolled for such month in a qualified health 
                plan with respect to which an applicable 
                premium tax credit or cost-sharing reduction is 
                allowed or paid with respect to the employee,
        then there is hereby imposed on the employer an 
        assessable payment equal to the product of the number 
        of full-time employees of the applicable large employer 
        described in subparagraph (B) for such month and an 
        amount equal to \1/12\ of $3,000.
          (2) Overall limitation.--The aggregate amount of tax 
        determined under paragraph (1) with respect to all 
        employees of an applicable large employer for any month 
        shall not exceed the product of the applicable payment 
        amount and the number of individuals employed by the 
        employer as full-time employees during such month.
  (c) Definitions and Special Rules.--For purposes of this 
section--
          (1) Applicable payment amount.--The term ``applicable 
        payment amount'' means, with respect to any month, \1/
        12\ of $2,000.
          (2) Applicable large employer.--
                  (A) In general.--The term ``applicable large 
                employer'' 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.
                  (B) Exemption for certain employers.--
                          (i) In general.--An employer shall 
                        not be considered to employ more than 
                        50 full-time employees if--
                                  (I) the employer's workforce 
                                exceeds 50 full-time employees 
                                for 120 days or fewer during 
                                the calendar year, and
                                  (II) the employees in excess 
                                of 50 employed during such 120-
                                day period were seasonal 
                                workers.
                          (ii) Definition of seasonal 
                        workers.--The term ``seasonal worker'' 
                        means a worker who performs labor or 
                        services on a seasonal basis as defined 
                        by the Secretary of Labor, including 
                        workers covered by section 500.20(s)(1) 
                        of title 29, Code of Federal 
                        Regulations and retail workers employed 
                        exclusively during holiday seasons.
                  (C) Rules for determining employer size.--For 
                purposes of this paragraph--
                          (i) Application of aggregation rule 
                        for employers.--All persons treated as 
                        a single employer under subsection (b), 
                        (c), (m), or (o) of section 414 of the 
                        Internal Revenue Code of 1986 shall be 
                        treated as 1 employer.
                          (ii) Employers not in existence in 
                        preceding year.--In the case of an 
                        employer which was not in existence 
                        throughout the preceding calendar year, 
                        the determination of whether such 
                        employer is an applicable large 
                        employer shall be based on the average 
                        number of employees that it is 
                        reasonably expected such employer will 
                        employ on business days in the current 
                        calendar year.
                          (iii) Predecessors.--Any reference in 
                        this subsection to an employer shall 
                        include a reference to any predecessor 
                        of such employer.
                  (D) Application of employer size to 
                assessable penalties.--
                          (i) In general.--The number of 
                        individuals employed by an applicable 
                        large employer as full-time employees 
                        during any month shall be reduced by 30 
                        solely for purposes of calculating--
                                  (I) the assessable payment 
                                under subsection (a), or
                                  (II) the overall limitation 
                                under subsection (b)(2).
                          (ii) Aggregation.--In the case of 
                        persons treated as 1 employer under 
                        subparagraph (C)(i), only 1 reduction 
                        under subclause (I) or (II) shall be 
                        allowed with respect to such persons 
                        and such reduction shall be allocated 
                        among such persons ratably on the basis 
                        of the number of full-time employees 
                        employed by each such person.
                  (E) Full-time equivalents treated as full-
                time employees.--Solely for purposes of 
                determining whether an employer is an 
                applicable large employer under this paragraph, 
                an employer shall, in addition to the number of 
                full-time employees for any month otherwise 
                determined, include for such month a number of 
                full-time employees determined by dividing the 
                aggregate number of hours of service of 
                employees who are not full-time employees for 
                the month by 120.
                  (F) Exemption for health coverage under 
                TRICARE or the Veterans Administration.--Solely 
                for purposes of determining whether an employer 
                is an applicable large employer under this 
                paragraph for any month, an individual shall 
                not be taken into account as an employee for 
                such month if such individual has medical 
                coverage for such month under--
                          (i) chapter 55 of title 10, United 
                        States Code, including coverage under 
                        the TRICARE program, or
                          (ii) under a health care program 
                        under chapter 17 or 18 of title 38, 
                        United States Code, as determined by 
                        the Secretary of Veterans Affairs, in 
                        coordination with the Secretary of 
                        Health and Human Services and the 
                        Secretary.
          (3) Applicable premium tax credit and cost-sharing 
        reduction.--The term ``applicable premium tax credit 
        and cost-sharing reduction'' means--
                  (A) any premium tax credit allowed under 
                section 36B,
                  (B) any cost-sharing reduction under section 
                1402 of the Patient Protection and Affordable 
                Care Act, and
                  (C) any advance payment of such credit or 
                reduction under section 1412 of such Act.
          (4) Full-time employee.--
                  (A) In general.--The term ``full-time 
                employee'' means, with respect to any month, an 
                employee who is employed on average at least 30 
                hours of service per week.
                  (B) Hours of service.--The Secretary, in 
                consultation with the Secretary of Labor, shall 
                prescribe such regulations, rules, and guidance 
                as may be necessary to determine the hours of 
                service of an employee, including rules for the 
                application of this paragraph to employees who 
                are not compensated on an hourly basis.
          (5) Inflation adjustment.--
                  (A) In general.--In the case of any calendar 
                year after 2014, each of the dollar amounts in 
                subsection (b) and paragraph (1) shall be 
                increased by an amount equal to the product 
                of--
                          (i) such dollar amount, and
                          (ii) the premium adjustment 
                        percentage (as defined in section 
                        1302(c)(4) of the Patient Protection 
                        and Affordable Care Act) for the 
                        calendar year.
                  (B) Rounding.--If the amount of any increase 
                under subparagraph (A) is not a multiple of 
                $10, such increase shall be rounded to the next 
                lowest multiple of $10.
          (6) 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) Tax nondeductible.--For denial of deduction for 
        the tax imposed by this section, see section 275(a)(6).
  (d) Administration and Procedure.--
          (1) In general.--Any assessable payment provided by 
        this section shall be paid upon notice and demand by 
        the Secretary, and shall be assessed and collected in 
        the same manner as an assessable penalty under 
        subchapter B of chapter 68.
          (2) Time for payment.--The Secretary may provide for 
        the payment of any assessable payment provided by this 
        section on an annual, monthly, or other periodic basis 
        as the Secretary may prescribe.
          (3) Coordination with credits, etc..--The Secretary 
        shall prescribe rules, regulations, or guidance for the 
        repayment of any assessable payment (including 
        interest) if such payment is based on the allowance or 
        payment of an applicable premium tax credit or cost-
        sharing reduction with respect to an employee, such 
        allowance or payment is subsequently disallowed, and 
        the assessable payment would not have been required to 
        be made but for such allowance or payment.

           *       *       *       *       *       *       *


      B. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed 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 italics, existing law in 
which no change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows (new 
matter is printed in italics and existing law in which no 
change is proposed is shown in roman):

INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *


Subtitle D--Miscellaneous Excise Taxes

           *       *       *       *       *       *       *


CHAPTER 43--QUALIFIED PENSION, ETC., PLANS

           *       *       *       *       *       *       *


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

  (a) Large Employers Not Offering Health Coverage.--If--
          (1) any applicable large employer fails to offer to 
        its full-time employees (and their dependents) the 
        opportunity to enroll in minimum essential coverage 
        under an eligible employer-sponsored plan (as defined 
        in section 5000A(f)(2)) for any month, and
          (2) at least one full-time employee of the applicable 
        large employer has been certified to the employer under 
        section 1411 of the Patient Protection and Affordable 
        Care Act as having enrolled for such month in a 
        qualified health plan with respect to which an 
        applicable premium tax credit or cost-sharing reduction 
        is allowed or paid with respect to the employee,
then there is hereby imposed on the employer an assessable 
payment equal to the product of the applicable payment amount 
and the number of individuals employed by the employer as full-
time employees during such month.
  (b) Large Employers Offering Coverage With Employees Who 
Qualify for Premium Tax Credits or Cost-Sharing Reductions.--
          (1) In general.--If--
                  (A) an applicable large employer offers to 
                its full-time employees (and their dependents) 
                the opportunity to enroll in minimum essential 
                coverage under an eligible employer-sponsored 
                plan (as defined in section 5000A(f)(2)) for 
                any month, and
                  (B) 1 or more full-time employees of the 
                applicable large employer has been certified to 
                the employer under section 1411 of the Patient 
                Protection and Affordable Care Act as having 
                enrolled for such month in a qualified health 
                plan with respect to which an applicable 
                premium tax credit or cost-sharing reduction is 
                allowed or paid with respect to the employee,
        then there is hereby imposed on the employer an 
        assessable payment equal to the product of the number 
        of full-time employees of the applicable large employer 
        described in subparagraph (B) for such month and an 
        amount equal to \1/12\ of $3,000.
          (2) Overall limitation.--The aggregate amount of tax 
        determined under paragraph (1) with respect to all 
        employees of an applicable large employer for any month 
        shall not exceed the product of the applicable payment 
        amount and the number of individuals employed by the 
        employer as full-time employees during such month.
  (c) Definitions and Special Rules.--For purposes of this 
section--
          (1) Applicable payment amount.--The term ``applicable 
        payment amount'' means, with respect to any month, \1/
        12\ of $2,000.
          (2) Applicable large employer.--
                  (A) In general.--The term ``applicable large 
                employer'' 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.
                  (B) Exemption for certain employers.--
                          (i) In general.--An employer shall 
                        not be considered to employ more than 
                        50 full-time employees if--
                                  (I) the employer's workforce 
                                exceeds 50 full-time employees 
                                for 120 days or fewer during 
                                the calendar year, and
                                  (II) the employees in excess 
                                of 50 employed during such 120-
                                day period were seasonal 
                                workers.
                          (ii) Definition of seasonal 
                        workers.--The term ``seasonal worker'' 
                        means a worker who performs labor or 
                        services on a seasonal basis as defined 
                        by the Secretary of Labor, including 
                        workers covered by section 500.20(s)(1) 
                        of title 29, Code of Federal 
                        Regulations and retail workers employed 
                        exclusively during holiday seasons.
                  (C) Rules for determining employer size.--For 
                purposes of this paragraph--
                          (i) Application of aggregation rule 
                        for employers.--All persons treated as 
                        a single employer under subsection (b), 
                        (c), (m), or (o) of section 414 of the 
                        Internal Revenue Code of 1986 shall be 
                        treated as 1 employer.
                          (ii) Employers not in existence in 
                        preceding year.--In the case of an 
                        employer which was not in existence 
                        throughout the preceding calendar year, 
                        the determination of whether such 
                        employer is an applicable large 
                        employer shall be based on the average 
                        number of employees that it is 
                        reasonably expected such employer will 
                        employ on business days in the current 
                        calendar year.
                          (iii) Predecessors.--Any reference in 
                        this subsection to an employer shall 
                        include a reference to any predecessor 
                        of such employer.
                  (D) Application of employer size to 
                assessable penalties.--
                          (i) In general.--The number of 
                        individuals employed by an applicable 
                        large employer as full-time employees 
                        during any month shall be reduced by 30 
                        solely for purposes of calculating--
                                  (I) the assessable payment 
                                under subsection (a), or
                                  (II) the overall limitation 
                                under subsection (b)(2).
                          (ii) Aggregation.--In the case of 
                        persons treated as 1 employer under 
                        subparagraph (C)(i), only 1 reduction 
                        under subclause (I) or (II) shall be 
                        allowed with respect to such persons 
                        and such reduction shall be allocated 
                        among such persons ratably on the basis 
                        of the number of full-time employees 
                        employed by each such person.
                  (E) Full-time equivalents treated as full-
                time employees.--Solely for purposes of 
                determining whether an employer is an 
                applicable large employer under this paragraph, 
                an employer shall, in addition to the number of 
                full-time employees for any month otherwise 
                determined, include for such month a number of 
                full-time employees determined by dividing the 
                aggregate number of hours of service of 
                employees who are not full-time employees for 
                the month by 120.
                  (F) Exemption for health coverage under 
                TRICARE or the Veterans Administration.--Solely 
                for purposes of determining whether an employer 
                is an applicable large employer under this 
                paragraph for any month, an individual shall 
                not be taken into account as an employee for 
                such month if such individual has medical 
                coverage for such month under--
                          (i) chapter 55 of title 10, United 
                        States Code, including coverage under 
                        the TRICARE program, or
                          (ii) under a health care program 
                        under chapter 17 or 18 of title 38, 
                        United States Code, as determined by 
                        the Secretary of Veterans Affairs, in 
                        coordination with the Secretary of 
                        Health and Human Services and the 
                        Secretary.
                  (G) Exception for Indian tribal governments 
                and tribally owned businesses.--
                          (i) In general.--The term 
                        ``applicable large employer'' shall not 
                        include any tribal employer.
                          (ii) Tribal employer.--For purposes 
                        of this subparagraph, the term ``tribal 
                        employer'' means--
                                  (I) any Indian tribal 
                                government (as defined in 
                                section 7701(a)(40)) or 
                                subdivision thereof, or any 
                                agency or instrumentality of 
                                either,
                                  (II) any tribal organization 
                                (as defined in section 4(l) of 
                                the Indian Self-Determination 
                                and Education Assistance Act 
                                (25 U.S.C. 450b(l))),
                                  (III) any corporation if more 
                                than 50 percent (determined by 
                                vote and value) of the 
                                outstanding stock of such 
                                corporation is owned, directly 
                                or indirectly, by any entity 
                                described in subclause (I) or 
                                (II), and
                                  (IV) any partnership if more 
                                than 50 percent of the value of 
                                the capital and profits 
                                interests are owned, directly 
                                or indirectly, by any entity 
                                described in subclause (I) or 
                                (II).
          (3) Applicable premium tax credit and cost-sharing 
        reduction.--The term ``applicable premium tax credit 
        and cost-sharing reduction'' means--
                  (A) any premium tax credit allowed under 
                section 36B,
                  (B) any cost-sharing reduction under section 
                1402 of the Patient Protection and Affordable 
                Care Act, and
                  (C) any advance payment of such credit or 
                reduction under section 1412 of such Act.
          (4) Full-time employee.--
                  (A) In general.--The term ``full-time 
                employee'' means, with respect to any month, an 
                employee who is employed on average at least 30 
                hours of service per week.
                  (B) Hours of service.--The Secretary, in 
                consultation with the Secretary of Labor, shall 
                prescribe such regulations, rules, and guidance 
                as may be necessary to determine the hours of 
                service of an employee, including rules for the 
                application of this paragraph to employees who 
                are not compensated on an hourly basis.
          (5) Inflation adjustment.--
                  (A) In general.--In the case of any calendar 
                year after 2014, each of the dollar amounts in 
                subsection (b) and paragraph (1) shall be 
                increased by an amount equal to the product 
                of--
                          (i) such dollar amount, and
                          (ii) the premium adjustment 
                        percentage (as defined in section 
                        1302(c)(4) of the Patient Protection 
                        and Affordable Care Act) for the 
                        calendar year.
                  (B) Rounding.--If the amount of any increase 
                under subparagraph (A) is not a multiple of 
                $10, such increase shall be rounded to the next 
                lowest multiple of $10.
          (6) 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) Tax nondeductible.--For denial of deduction for 
        the tax imposed by this section, see section 275(a)(6).
  (d) Administration and Procedure.--
          (1) In general.--Any assessable payment provided by 
        this section shall be paid upon notice and demand by 
        the Secretary, and shall be assessed and collected in 
        the same manner as an assessable penalty under 
        subchapter B of chapter 68.
          (2) Time for payment.--The Secretary may provide for 
        the payment of any assessable payment provided by this 
        section on an annual, monthly, or other periodic basis 
        as the Secretary may prescribe.
          (3) Coordination with credits, etc..--The Secretary 
        shall prescribe rules, regulations, or guidance for the 
        repayment of any assessable payment (including 
        interest) if such payment is based on the allowance or 
        payment of an applicable premium tax credit or cost-
        sharing reduction with respect to an employee, such 
        allowance or payment is subsequently disallowed, and 
        the assessable payment would not have been required to 
        be made but for such allowance or payment.

           *       *       *       *       *       *       *


                         VII. DISSENTING VIEWS

    We object to H.R. 3080 because it increases the deficit and 
undermines the employer shared responsibility provisions of the 
Affordable Care Act (ACA). With this legislation, the Majority 
furthers their fiscal irresponsibility and misguided 
priorities.
    The bill is the latest in a continued series of attacks by 
the Majority on the ACA. Under section 4980H of the Internal 
Revenue Code, the employer shared responsibility provision 
requires an employer with 50 or more full-time equivalents 
(FTEs) to offer affordable coverage of minimum value to full-
time workers or pay a penalty. H.R. 3080 would amend the 
Internal Revenue Code to exempt tribal governments, tribally-
owned businesses, and tribal organizations from the employer 
shared responsibility provisions of the ACA (often called the 
employer mandate). That means that even lucrative, for-profit 
entities will not be required to provide health care to their 
full-time workforce under this bill. This is a troubling 
proposal that actively undermines access to health coverage for 
middle class Americans.
    The ACA exempts members of tribes--who are generally 
eligible for coverage through the Indian Health Service--from 
the individual mandate, and some suggest that this exemption 
should also apply to the employer mandate. However, this 
ignores the fact that many of the individuals employed by 
tribal entities are not actually members of a tribe. Because of 
this, they are not eligible for benefits through the Indian 
Health Service in the event that their employer doesn't cover 
them. During the mark-up, we asked JCT to provide an estimate 
of the number of workers employed by tribal governments, 
tribally-owned enterprises and tribal organizations. They have 
not yet provided this information; however, recent data suggest 
that about three-fourths of employees at tribally-owned casinos 
are not covered by IHS. Without the coverage provided through 
their employer, these individuals will be on their own to 
purchase insurance through the individual market.
    We recognize that there is a balance that we need to 
strike. Tribal sovereignty is extremely important and we all 
respect the right of tribes to engage in self-government. But 
self-government isn't the issue here. By extending the scope of 
this exemption beyond tribes and tribal organizations, this 
bill creates an inappropriate carve-out for large, for-profit 
businesses. This reaches far beyond self-governance and into 
purely commercial activity.
    About 5,600 employees would lose employer coverage as a 
result of this bill, and 2,000 of these individuals would 
ultimately become uninsured. This sets us on a slippery slope 
that will lead to more and more carve outs from the 
requirements of the law.
    For these reasons we strongly object to H.R. 3080.

                                           Sander M. Levin,
                                                    Ranking Member.

                                  [all]