[House Report 115-985]
[From the U.S. Government Publishing Office]


115th Congress     }                                {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                {         115-985

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

 
   PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 6756) TO AMEND THE 
 INTERNAL REVENUE CODE OF 1986 TO PROMOTE NEW BUSINESS INNOVATION, AND 
FOR OTHER PURPOSES; PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 6757) 
TO AMEND THE INTERNAL REVENUE CODE OF 1986 TO ENCOURAGE RETIREMENT AND 
FAMILY SAVINGS, AND FOR OTHER PURPOSES; PROVIDING FOR CONSIDERATION OF 
THE BILL (H.R. 6760) TO AMEND THE INTERNAL REVENUE CODE OF 1986 TO MAKE 
  PERMANENT CERTAIN PROVISIONS OF THE TAX CUTS AND JOBS ACT AFFECTING 
    INDIVIDUALS, FAMILIES, AND SMALL BUSINESSES; AND PROVIDING FOR 
 PROCEEDINGS DURING THE PERIOD FROM OCTOBER 1, 2018, THROUGH NOVEMBER 
                                12, 2018

                                _______
                                

 September 26, 2018.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

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

                              R E P O R T

                      [To accompany H. Res. 1084]

    The Committee on Rules, having had under consideration 
House Resolution 1084, by a record vote of 7 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 6756, the 
American Innovation Act of 2018, under a closed rule. The 
resolution provides one hour of debate equally divided and 
controlled by the chair and ranking minority member of the 
Committee on Ways and Means. The resolution waives all points 
of order against consideration of the bill. The resolution 
provides that the amendment in the nature of a substitute 
recommended by the Committee on Ways and Means now printed in 
the bill, modified by the amendment printed in part A of this 
report, shall be considered as adopted and the bill, as 
amended, shall be considered as read. The resolution waives all 
points of order against provisions in the bill, as amended. The 
resolution provides one motion to recommit with or without 
instructions.
    Section 2 of the resolution provides for consideration of 
H.R. 6757, the Family Savings Act of 2018, under a closed rule. 
The resolution provides one hour of debate equally divided and 
controlled by the chair and ranking minority member of the 
Committee on Ways and Means. The resolution waives all points 
of order against consideration of the bill. The resolution 
provides that the amendment in the nature of a substitute 
recommended by the Committee on Ways and Means now printed in 
the bill, modified by the amendment printed in part B of this 
report, shall be considered as adopted and the bill, as 
amended, shall be considered as read. The resolution waives all 
points of order against provisions in the bill, as amended. The 
resolution provides one motion to recommit with or without 
instructions.
    Section 3 of the resolution provides for consideration of 
H.R. 6760, the Protecting Family and Small Business Tax Cuts 
Act of 2018, under a closed rule. The resolution provides one 
hour of debate equally divided and controlled by the chair and 
ranking minority member of the Committee on Ways and Means. The 
resolution waives all points of order against consideration of 
the bill. The resolution provides that the amendment in the 
nature of a substitute recommended by the Committee on Ways and 
Means now printed in the bill, modified by the amendment 
printed in part C of this report, shall be considered as 
adopted and the bill, as amended, shall be considered as read. 
The resolution waives all points of order against provisions in 
the bill, as amended. The resolution provides one motion to 
recommit with or without instructions. The resolution provides 
that the yeas and nays shall be considered as ordered on the 
question of passage and that clause 5(b) of rule 21 shall not 
apply to the bill or amendments thereto.
    Section 4 of the resolution provides that on any 
legislative day during the period from October 1, 2018, through 
November 12, 2018: the Journal of the proceedings of the 
previous day shall be considered as approved; and the Chair may 
at any time declare the House adjourned to meet at a date and 
time to be announced by the Chair in declaring the adjournment.
    Section 5 of the resolution provides that the Speaker may 
appoint Members to perform the duties of the Chair for the 
duration of the period addressed by section 4 of the resolution 
as though under clause 8(a) of rule I.
    Section 6 of the resolution provides that each day during 
the period addressed by section 4 of the resolution shall not 
constitute calendar days for the purposes of section 7 of the 
War Powers Resolution (50 U.S.C. 1546).
    Section 7 of the resolution provides that each day during 
the period addressed by section 4 of the resolution shall not 
constitute a legislative day for purposes of clause 7 of rule 
XIII (resolutions of inquiry).
    Section 8 of the resolution provides that each day during 
the period addressed by section 4 of the resolution shall not 
constitute a calendar or legislative day for purposes of clause 
7(c)(1) of rule XXII (motions to instruct conferees).

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
H.R. 6756 includes a waiver of the following:
           Section 306 of the Congressional Budget Act, 
        which prohibits consideration of legislation within the 
        jurisdiction of the Committee on the Budget unless 
        referred to or reported by the Budget Committee; and
           Section 311 of the Congressional Budget Act, 
        which prohibits consideration of legislation that would 
        cause revenues to be less than the level of total 
        revenues for the first fiscal year or for the total of 
        that first fiscal year and the ensuing fiscal years for 
        which allocations are provided.
    Although the resolution waives all points of order against 
provisions in H.R. 6756, as amended, the Committee is not aware 
of any points of order. The waiver is prophylactic in nature.
    The waiver of all points of order against consideration of 
H.R. 6757 includes a waiver of the following:
           Clause 10 of rule XXI, which prohibits the 
        consideration of a bill if it has the net effect of 
        increasing mandatory spending over the five-year or 
        ten-year period;
           Section 302(f) of the Congressional Budget 
        Act, which prohibits consideration of legislation 
        providing new budget authority in excess of a 302(a) 
        allocation of such authority;
           Section 306 of the Congressional Budget Act, 
        which prohibits consideration of legislation within the 
        jurisdiction of the Committee on the Budget unless 
        referred to or reported by the Budget Committee; and
           Section 311 of the Congressional Budget Act, 
        which prohibits consideration of legislation that would 
        cause revenues to be less than the level of total 
        revenues for the first fiscal year or for the total of 
        that first fiscal year and the ensuing fiscal years for 
        which allocations are provided.
    Although the resolution waives all points of order against 
provisions in H.R. 6757, as amended, the Committee is not aware 
of any points of order. The waiver is prophylactic in nature.
    The waiver of all points of order against consideration of 
H.R. 6760 includes a waiver of the following:
           Clause 10 of rule XXI, which prohibits the 
        consideration of a bill if it has the net effect of 
        increasing mandatory spending over the five-year or 
        ten-year period;
           Section 302(f) of the Congressional Budget 
        Act, which prohibits consideration of legislation 
        providing new budget authority in excess of a 302(a) 
        allocation of such authority;
           Section 303 of the Congressional Budget Act, 
        which prohibits consideration of legislation, providing 
        a change in revenues for a fiscal year until the budget 
        resolution for that year has been agreed to;
           Section 306 of the Congressional Budget Act, 
        which prohibits consideration of legislation within the 
        jurisdiction of the Committee on the Budget unless 
        referred to or reported by the Budget Committee;
           Section 311 of the Congressional Budget Act, 
        which prohibits consideration of legislation that would 
        cause revenues to be less than the level of total 
        revenues for the first fiscal year or for the total of 
        that first fiscal year and the ensuing fiscal years for 
        which allocations are provided;
           Section 5101 of H. Con. Res. 71, which 
        prohibits consideration of legislation that has the net 
        effect of increasing direct spending in excess of $2.5 
        billion for any of the four consecutive ten fiscal year 
        periods beginning with the first fiscal year that is 10 
        fiscal years after the current fiscal year; and
           Section 3(h) of H. Res. 5, which prohibits 
        consideration of a bill that that would cause a net 
        increase in direct spending in excess of $5 billion in 
        any of the 4 consecutive 10-fiscal year periods 
        beginning with the first fiscal year that is 10 fiscal 
        years after the current fiscal year.
    Although the resolution waives all points of order against 
provisions in H.R. 6760, as amended, the Committee is not aware 
of any points of order. The waiver is prophylactic in nature.
    Although the resolution provides that clause 5b of rule XXI 
does not apply to this bill, the rule isolates only specified 
provisions and does not look at the essential interactions of 
all the tax provisions. While the bill as a whole provides 
broad tax relief, the provision is necessary because of the 
narrow focus of the rule.

                            COMMITTEE VOTES

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

Rules Committee record vote No. 278

    Motion by Mr. McGovern to make in order and provide the 
appropriate waivers for amendment #6 to H.R. 6760, offered by 
Rep. Brady (TX), which excludes the budgetary effects of the 
bill from being entered onto the Statutory Pay-As-You-Go 
Scorecard, as a standalone amendment, rather than self-
executing it; amendment #2 to H.R. 6757, offered by Rep. Graves 
(LA), which repeals the Windfall Elimination Provision and 
Government Pension Offset Provision; and amendment #5 to H.R. 
6760, offered by Rep. Pascrell (NJ), which repeals the $10,000 
limit on the State and Local Tax Deduction. Defeated: 3-7

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Collins.....................................  ............  Mrs. Torres.......................  ............
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Buck........................................  ............
Ms. Cheney......................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 279

    Motion by Mr. Polis to make in order and provide the 
appropriate waivers to amendments to H.R. 6760: #8, offered by 
Rep. Polis (CO) and Rep. Schweikert (AZ), which creates a 
structure for taxing purchases made with cryptocurrency, and 
allows small purchases to be made with cryptocurrency without 
extensive reporting requirements.; amendment #9, offered by 
Rep. Polis (CO), which exempts Cannabis businesses from 280e of 
the federal tax code.; and amendment #10, offered by Rep. Polis 
(CO), which eliminates federal alcohol taxes on kombucha and 
update regulations for kombucha manufacturers.; and amendment 
#12, offered by Rep. Rosen (NV) and Rep. Shea-Porter (NH) and 
Rep. Polis (CO), which makes the child tax credit fully 
refundable. Defeated: 3-7

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Collins.....................................  ............  Mrs. Torres.......................  ............
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Buck........................................  ............
Ms. Cheney......................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 280

    Motion by Mr. Woodall to report the rule. Adopted: 7-3

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................          Yea   Mr. McGovern......................          Nay
Mr. Woodall.....................................          Yea   Mr. Hastings of Florida...........          Nay
Mr. Burgess.....................................          Yea   Mr. Polis.........................          Nay
Mr. Collins.....................................  ............  Mrs. Torres.......................  ............
Mr. Byrne.......................................          Yea
Mr. Newhouse....................................          Yea
Mr. Buck........................................  ............
Ms. Cheney......................................          Yea
Mr. Sessions, Chairman..........................          Yea
----------------------------------------------------------------------------------------------------------------

 SUMMARY OF THE AMENDMENT TO H.R. 6756 IN PART A CONSIDERED AS ADOPTED

    1. Brady, Kevin (TX): Excludes the budgetary effects of the 
bill from being entered onto the Statutory Pay-As-You-Go 
Scorecard.

 SUMMARY OF THE AMENDMENT TO H.R. 6757 IN PART B CONSIDERED AS ADOPTED

    1. Brady, Kevin (TX): MANAGER'S (1) eliminates the bill 
provision requiring a study of the PBGC's single employer 
insurance program, (2) provides a safe harbor for satisfying 
fiduciary obligations with respect to the selection of an 
annuity provider for a retirement plan investment option, (3) 
provides that an unborn child can be treated as a designated 
beneficiary for a 529 education account, and (4) excludes the 
budgetary effects of the bill from being entered onto the 
Statutory Pay-As-You-Go Scorecard.

 SUMMARY OF THE AMENDMENT TO H.R. 6760 IN PART C CONSIDERED AS ADOPTED

    1. Brady, Kevin (TX): Excludes the budgetary effects of the 
bill from being entered onto the Statutory Pay-As-You-Go 
Scorecard.

      PART A--TEXT OF AMENDMENT TO H.R. 6756 CONSIDERED AS ADOPTED

  At the end, add the following:

SEC. 4. BUDGETARY EFFECTS.

  (a) Statutory PAYGO Scorecards.--The budgetary effects of 
this Act shall not be entered on either PAYGO scorecard 
maintained pursuant to section 4(d) of the Statutory Pay-As-
You-Go Act of 2010.
  (b) Senate PAYGO Scorecards.--The budgetary effects of this 
Act shall not be entered on any PAYGO scorecard maintained for 
purposes of section 4106 of H. Con. Res. 71 (115th Congress).

      PART B--TEXT OF AMENDMENT TO H.R. 6757 CONSIDERED AS ADOPTED

  Strike section 203 and insert the following:

SEC. 203. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME INCOME 
                    PROVIDER.

  Section 404 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1104) is amended by adding at the end the 
following:
  ``(e) Safe Harbor for Annuity Selection.--
          ``(1) In general.--With respect to the selection of 
        an insurer for a guaranteed retirement income contract, 
        the requirements of subsection (a)(1)(B) will be deemed 
        to be satisfied if a fiduciary--
                  ``(A) engages in an objective, thorough, and 
                analytical search for the purpose of 
                identifying insurers from which to purchase 
                such contracts;
                  ``(B) with respect to each insurer identified 
                under subparagraph (A)--
                          ``(i) considers the financial 
                        capability of such insurer to satisfy 
                        its obligations under the guaranteed 
                        retirement income contract; and
                          ``(ii) considers the cost (including 
                        fees and commissions) of the guaranteed 
                        retirement income contract offered by 
                        the insurer in relation to the benefits 
                        and product features of the contract 
                        and administrative services to be 
                        provided under such contract; and
                  ``(C) on the basis of such consideration, 
                concludes that--
                          ``(i) at the time of the selection, 
                        the insurer is financially capable of 
                        satisfying its obligations under the 
                        guaranteed retirement income contract; 
                        and
                          ``(ii) the relative cost of the 
                        selected guaranteed retirement income 
                        contract as described in subparagraph 
                        (B)(ii) is reasonable.
          ``(2) Financial capability of the insurer.--A 
        fiduciary will be deemed to satisfy the requirements of 
        paragraphs (1)(B)(i) and (1)(C)(i) if--
                  ``(A) the fiduciary obtains written 
                representations from the insurer that--
                          ``(i) the insurer is licensed to 
                        offer guaranteed retirement income 
                        contracts;
                          ``(ii) the insurer, at the time of 
                        selection and for each of the 
                        immediately preceding 7 plan years--
                                  ``(I) operates under a 
                                certificate of authority from 
                                the insurance commissioner of 
                                its domiciliary State which has 
                                not been revoked or suspended;
                                  ``(II) has filed audited 
                                financial statements in 
                                accordance with the laws of its 
                                domiciliary State under 
                                applicable statutory accounting 
                                principles;
                                  ``(III) maintains (and has 
                                maintained) reserves which 
                                satisfies all the statutory 
                                requirements of all States 
                                where the insurer does 
                                business; and
                                  ``(IV) is not operating under 
                                an order of supervision, 
                                rehabilitation, or liquidation;
                          ``(iii) the insurer undergoes, at 
                        least every 5 years, a financial 
                        examination (within the meaning of the 
                        law of its domiciliary State) by the 
                        insurance commissioner of the 
                        domiciliary State (or representative, 
                        designee, or other party approved by 
                        such commissioner); and
                          ``(iv) the insurer will notify the 
                        fiduciary of any change in 
                        circumstances occurring after the 
                        provision of the representations in 
                        clauses (i), (ii), and (iii) which 
                        would preclude the insurer from making 
                        such representations at the time of 
                        issuance of the guaranteed retirement 
                        income contract; and
                  ``(B) after receiving such representations 
                and as of the time of selection, the fiduciary 
                has not received any notice described in 
                subparagraph (A)(iv) and is in possession of no 
                other information which would cause the 
                fiduciary to question the representations 
                provided.
          ``(3) No requirement to select lowest cost.--Nothing 
        in this subsection shall be construed to require a 
        fiduciary to select the lowest cost contract. A 
        fiduciary may consider the value of a contract, 
        including features and benefits of the contract and 
        attributes of the insurer (including, without 
        limitation, the insurer's financial strength) in 
        conjunction with the cost of the contract.
          ``(4) Time of selection.--
                  ``(A) In general.--For purposes of this 
                subsection, the time of selection is--
                          ``(i) the time that the insurer and 
                        the contract are selected for 
                        distribution of benefits to a specific 
                        participant or beneficiary; or
                          ``(ii) if the fiduciary periodically 
                        reviews the continuing appropriateness 
                        of the conclusion described in 
                        paragraph (1)(C) with respect to a 
                        selected insurer, taking into account 
                        the considerations described in such 
                        paragraph, the time that the insurer 
                        and the contract are selected to 
                        provide benefits at future dates to 
                        participants or beneficiaries under the 
                        plan.
                Nothing in the preceding sentence shall be 
                construed to require the fiduciary to review 
                the appropriateness of a selection after the 
                purchase of a contract for a participant or 
                beneficiary.
                  ``(B) Periodic review.--A fiduciary will be 
                deemed to have conducted the periodic review 
                described in subparagraph (A)(ii) if the 
                fiduciary obtains the written representations 
                described in clauses (i), (ii), and (iii) of 
                paragraph (2)(A) from the insurer on an annual 
                basis, unless the fiduciary receives any notice 
                described in paragraph (2)(A)(iv) or otherwise 
                becomes aware of facts that would cause the 
                fiduciary to question such representations.
          ``(5) Limited liability.--A fiduciary which satisfies 
        the requirements of this subsection shall not be liable 
        following the distribution of any benefit, or the 
        investment by or on behalf of a participant or 
        beneficiary pursuant to the selected guaranteed 
        retirement income contract, for any losses that may 
        result to the participant or beneficiary due to an 
        insurer's inability to satisfy its financial 
        obligations under the terms of such contract.
          ``(6) Definitions.--For purposes of this subsection--
                  ``(A) Insurer.--The term `insurer' means an 
                insurance company, insurance service, or 
                insurance organization, including affiliates of 
                such companies.
                  ``(B) Guaranteed retirement income 
                contract.--The term `guaranteed retirement 
                income contract' means an annuity contract for 
                a fixed term or a contract (or provision or 
                feature thereof) which provides guaranteed 
                benefits annually (or more frequently) for at 
                least the remainder of the life of the 
                participant or the joint lives of the 
                participant and the participant's designated 
                beneficiary as part of an individual account 
                plan.''.

  In section 302, strike subsection (e) and insert the 
following:

  (e) Unborn Children Allowed as Account Beneficiaries.--
Section 529(e) is amended by adding at the end the following 
new paragraph:
          ``(6) Treatment of unborn children.--
                  ``(A) In general.--Nothing shall prevent an 
                unborn child from being treated as a designated 
                beneficiary or an individual under this 
                section.
                  ``(B) Unborn child.--For purposes of this 
                paragraph--
                          ``(i) In general.--The term `unborn 
                        child' means a child in utero.
                          ``(ii) Child in utero.--The term 
                        `child in utero' means a member of the 
                        species homo sapiens, at any stage of 
                        development, who is carried in the 
                        womb.''.
  (f) Effective Dates.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        apply to distributions made after December 31, 2018.
          (2) Unborn children allowed as account 
        beneficiaries.--The amendment made by subsection (e) 
        shall apply to contributions made after December 31, 
        2018.

  At the end, add the following:

                      TITLE IV--BUDGETARY EFFECTS

SEC. 401. BUDGETARY EFFECTS.

  (a) Statutory PAYGO Scorecards.--The budgetary effects of 
this Act shall not be entered on either PAYGO scorecard 
maintained pursuant to section 4(d) of the Statutory Pay-As-
You-Go Act of 2010.
  (b) Senate PAYGO Scorecards.--The budgetary effects of this 
Act shall not be entered on any PAYGO scorecard maintained for 
purposes of section 4106 of H. Con. Res. 71 (115th Congress).

      PART C--TEXT OF AMENDMENT TO H.R. 6760 CONSIDERED AS ADOPTED

  At the end, add the following:

                      TITLE III--BUDGETARY EFFECTS

SEC. 301. BUDGETARY EFFECTS.

  (a) Statutory PAYGO Scorecards.--The budgetary effects of 
this Act shall not be entered on either PAYGO scorecard 
maintained pursuant to section 4(d) of the Statutory Pay-As-
You-Go Act of 2010.
  (b) Senate PAYGO Scorecards.--The budgetary effects of this 
Act shall not be entered on any PAYGO scorecard maintained for 
purposes of section 4106 of H. Con. Res. 71 (115th Congress).

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