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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1083 Introduced in House (IH)]

<DOC>

115th CONGRESS
  1st Session
                                H. R. 1083

 To establish an American Savings Account Fund and create a retirement 
    savings plan available to all employees, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 15, 2017

 Mr. Huffman (for himself, Ms. Bonamici, Ms. Lofgren, Mrs. Napolitano, 
Mr. Garamendi, Ms. Lee, Mr. Thompson of California, Mr. Vargas, Mr. Ted 
Lieu of California, Mr. Takano, Mr. Meeks, and Mr. Conyers) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL

 
 To establish an American Savings Account Fund and create a retirement 
    savings plan available to all employees, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Savings Account Act of 
2017''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                        TITLE I--ADMINISTRATION

Sec. 101. American Savings Account Board of Directors.
Sec. 102. Responsibilities of American Savings Account Board of 
                            Directors.
Sec. 103. Fiduciary responsibilities; liability and penalties.
Sec. 104. American Savings Account Fund Advisory Council.
                TITLE II--AMERICAN SAVINGS ACCOUNT FUND

Sec. 201. American Savings Account Fund.
Sec. 202. Tax treatment of the American Savings Account Fund.
                  TITLE III--AMERICAN SAVINGS ACCOUNTS

Sec. 301. American Savings Accounts.
Sec. 302. Employer requirements.
Sec. 303. State retirement savings plans.
Sec. 304. Definitions.
                    TITLE IV--CONFORMING AMENDMENTS

Sec. 401. American Savings Accounts.
Sec. 402. Penalty for employer noncompliance.
Sec. 403. Outreach.
Sec. 404. Independent contractors.

                        TITLE I--ADMINISTRATION

SEC. 101. AMERICAN SAVINGS ACCOUNT BOARD OF DIRECTORS.

    (a) In General.--There is established an American Savings Account 
Board of Directors (hereafter referred to in this title as the 
``Board'') as a federally chartered organization. Except as otherwise 
provided, such Board has perpetual existence.
    (b) Purpose.--The purpose of the Board is--
            (1) to establish policies for the investment and management 
        of the American Savings Account Fund; and
            (2) to carry out the responsibilities of the Board under 
        section 102.
    (c) Membership.--The Board shall be composed of 9 members appointed 
by the President in consultation with the Secretary of Labor and with 
the advice and consent of the Senate, to include--
            (1) the Secretary of Labor or a delegate of the Secretary;
            (2) 1 representative of employers;
            (3) 1 representative of the private retirement savings 
        investment industry;
            (4) 1 representative of employees;
            (5) 1 representative of retirees; and
            (6) the Executive Director and 3 additional members of the 
        Federal Retirement Thrift Investment Board established under 
        section 8472(a) of title 5, United States Code.
Of such 9 members, 1 shall be elected by the members of the Board as 
the Chair.
    (d) Terms and Vacancies.--
            (1) Term.--A member of the Board shall be appointed for a 
        term of 4 years and, after the expiration of such term, may be 
        reappointed immediately to a subsequent term.
            (2) Vacancy.--A vacancy on the Board shall be filled in the 
        manner in which the original appointment was made and shall be 
        subject to any conditions which applied with respect to the 
        original appointment. An individual chosen to fill a vacancy 
        shall be appointed for the unexpired term of the member 
        replaced.
            (3) Expiration.--The term of any member shall not expire 
        before the date on which the member's successor takes office.
    (e) Responsibility.--The members of the Board shall discharge their 
responsibilities solely in the interest of participants and 
beneficiaries under this title.
    (f) Compensation.--
            (1) In general.--Each member of the Board who is not an 
        officer or employee of the Federal Government shall be 
        compensated at the daily rate of basic pay for grade GS-18 of 
        the General Schedule under subchapter III of chapter 53 of 
        title 5, United States Code, for each day during which such 
        member is engaged in performing a function of the Board.
            (2) Per diem, etc.--A member of the Board shall be paid 
        travel, per diem, and other necessary expenses while traveling 
        away from such member's home or regular place of business in 
        the performance of the duties of the Board.
            (3) Payments.--Payments authorized under this subsection 
        shall be paid from the American Savings Account Fund.

SEC. 102. RESPONSIBILITIES OF AMERICAN SAVINGS ACCOUNT BOARD OF 
              DIRECTORS.

    (a) Establishment of Investment Funds and Options.--The Board shall 
select or establish a list of investment funds and options similar to 
those described in subsection (b) of section 8438 of title 5, United 
States Code, among which an individual participating in an American 
Savings Account established under section 103(a) may elect under 
subsection (b)(2).
    (b) Investment of Sums.--
            (1) In general.--The Chair of the Board shall invest the 
        sums available in the American Savings Account Fund for 
        investment as provided in elections made under paragraph (2). 
        If an election has not been made with respect to any sums in 
        the American Savings Account Fund available for investment, the 
        Chair shall invest such sums in a portfolio similar to the age-
        appropriate target date asset allocation portfolio established 
        by the Federal Retirement Thrift Investment Board under section 
        8438(b) of title 5, United States Code, in the same manner as 
        sums in the Thrift Savings Fund established under section 8437 
        of title 5, United States Code, are invested under such 
        section.
            (2) Election.--
                    (A) In general.--At least twice each year, an 
                individual participating in an American Savings Account 
                established under subsection (c)(1) may elect any of 
                the investment funds and options referred to in 
                subsection (a) into which the sums in the American 
                Savings Account Fund credited to such individual's 
                American Savings Account are to be invested or 
                reinvested in the same manner as sums in the Thrift 
                Savings Fund are invested under section 8438 of title 
                5, United States Code.
                    (B) Form and manner of election.--An election may 
                be made under subparagraph (A) only in such manner and 
                within such period as shall be provided by the Chair of 
                the Board.
    (c) Accounting and Information.--
            (1) In general.--The Chair of the Board shall establish and 
        maintain--
                    (A) an American Savings Account described in 
                paragraph (1) of section 301(a); or
                    (B) at the election of the individual pursuant to 
                section 301(b)(2), an American Savings Account 
                described in paragraph (2) of section 301(a),
        for each individual who makes contributions under section 
        301(b)(3), or for whom contributions are made under section 
        302, to the American Savings Account Fund.
            (2) Balance; allocation of earnings and losses, etc.--Rules 
        similar to the rules of paragraphs (2) and (3) of section 
        8439(a) of title 5, United States Code, shall apply for 
        purposes of an individual's American Savings Account 
        established under paragraph (1).
            (3) Examination by qualified public accountant; reporting, 
        etc.--Rules similar to the requirements of subsections (b), 
        (c), and (d) of section 8439 of title 5, United States Code, 
        shall apply with respect to individuals for whom an American 
        Savings Account is maintained under this subsection (in the 
        case of such subsection (d), applied as if each such individual 
        were an employee described in such subsection).
    (d) Reporting Requirements.--
            (1) Annual report.--The Board shall, not later than June 30 
        of each year, submit to Congress an annual report on the 
        operations of the American Savings Account Fund. Such report 
        shall include, for the prior calendar year, information on the 
        number of participants as of the last day of such prior 
        calendar year, the median balance in participants' accounts as 
        of such last day, demographic information on participants, the 
        percentage allocation of amounts among investment funds or 
        options, the status of the development and implementation of 
        the mutual fund window, the diversity demographics of any 
        company, investment adviser, or other entity retained to invest 
        and manage the assets of the American Savings Account Fund, and 
        such other information as the Board considers appropriate. A 
        copy of each annual report under this subsection shall be made 
        available to the public through an Internet website.
            (2) Reporting of fees and other information.--
                    (A) In general.--The Board shall provide to each 
                individual for whom an account is maintained--
                            (i) a periodic statement relating to the 
                        individual's account;
                            (ii) a summary description of the 
                        investment funds and options under subsection 
                        (a) covering, and an evaluation of, each such 
                        option during the 5-year period preceding the 
                        date as of which such evaluation is made;
                            (iii) a statement of the amount of the 
                        investment management fees, administrative 
                        expenses, and any other fees or expenses paid 
                        with respect to each such investment fund and 
                        option; and
                            (iv) a statement notifying participants as 
                        to how they may access the annual report 
                        described in paragraph (1), as well as any 
                        other information concerning American Savings 
                        Accounts that might be useful.
                If the fees and expenses described in clause (iii) 
                exceed the fees charged to a similarly situated 
                individual who contributes to the Thrift Savings Fund 
                established under section 8437 of title 5, United 
                States Code, the information required under the 
                preceding sentence shall include a statement 
                identifying the reason for such excess.
                    (B) Time when sent.--Information under subparagraph 
                (A) with respect to each participant shall be provided 
                immediately upon payment of the participant's first 
                contribution to the American Savings Account Fund and 
                on a regular basis thereafter, in a manner designed to 
                facilitate informed decisionmaking with respect to 
                elections under subsection (b)(2). Nothing in this 
                subparagraph shall be considered to limit the 
                dissemination of information only to the times required 
                under the preceding sentence.
                    (C) Use of estimates.--For purposes of providing 
                the information required under this paragraph, the 
                Board may provide a reasonable and representative 
                estimate of any fees or expenses described in 
                subparagraph (A) and shall indicate any such estimate 
                as being such an estimate. Any such estimate shall be 
                based on the previous year's experience.

SEC. 103. FIDUCIARY RESPONSIBILITIES; LIABILITY AND PENALTIES.

    (a) Definitions.--For purposes of this section--
            (1) the term ``adequate consideration'' means--
                    (A) in the case of a security for which there is a 
                generally recognized market--
                            (i) the price of the security prevailing on 
                        a national securities exchange which is 
                        registered under section 6 of the Securities 
                        Exchange Act of 1934; or
                            (ii) if the security is not traded on such 
                        a national securities exchange, a price not 
                        less favorable to the American Savings Account 
                        Fund than the offering price for the security 
                        as established by the current bid and asked 
                        prices quoted by persons independent of the 
                        issuer and of any party in interest; and
                    (B) in the case of an asset other than a security 
                for which there is a generally recognized market, the 
                fair market value of the asset as determined in good 
                faith by a fiduciary or fiduciaries in accordance with 
                regulations prescribed by the Secretary of Labor;
            (2) the term ``fiduciary'' means--
                    (A) a member of the Board, including the Chair;
                    (B) any person who has or exercises discretionary 
                authority or discretionary control over the management 
                or disposition of the assets of the American Savings 
                Account Fund; and
                    (C) any person who, with respect to the American 
                Savings Account Fund, is described in section 3(21)(A) 
                of the Employee Retirement Income Security Act of 1974; 
                and
            (3) the term ``party in interest'' includes--
                    (A) any fiduciary;
                    (B) any counsel to a person who is a fiduciary, 
                with respect to the actions of such person as a 
                fiduciary;
                    (C) any participant;
                    (D) any person providing services to the Board and, 
                with respect to the actions of the Chair as a 
                fiduciary, any person providing services to the Chair;
                    (E) a labor organization, the members of which are 
                participants;
                    (F) a spouse, sibling, ancestor, lineal descendant, 
                or spouse of a lineal descendant of a person described 
                in subparagraph (A), (B), or (D);
                    (G) a corporation, partnership, or trust or estate 
                of which, or in which, at least 50 percent of--
                            (i) the combined voting power of all 
                        classes of stock entitled to vote or the total 
                        value of shares of all classes of stock of such 
                        corporation;
                            (ii) the capital interest or profits 
                        interest of such partnership; or
                            (iii) the beneficial interest of such trust 
                        or estate,
                is owned, directly or indirectly, or held by a person 
                described in subparagraph (A), (B), (D), or (E);
                    (H) an official (including a director) of, or an 
                individual employed by, a person described in 
                subparagraph (A), (B), (D), (E), or (G), or an 
                individual having powers or responsibilities similar to 
                those of such an official;
                    (I) a holder (directly or indirectly) of at least 
                10 percent of the shares in a person described in any 
                subparagraph referred to in subparagraph (H); and
                    (J) a person who, directly or indirectly, is at 
                least a 10 percent partner or joint venturer (measured 
                in capital or profits) in a person described in any 
                subparagraph referred to in subparagraph (H).
    (b) In General.--
            (1) Discharge of responsibilities.--To the extent not 
        inconsistent with the provisions of this title and the policies 
        prescribed by the Board, a fiduciary shall discharge the 
        fiduciary's responsibilities with respect to the American 
        Savings Account Fund or applicable portion thereof solely in 
        the interest of the participants and beneficiaries and--
                    (A) for the exclusive purpose of--
                            (i) providing benefits to participants and 
                        their beneficiaries; and
                            (ii) defraying reasonable expenses of 
                        administering the American Savings Account Fund 
                        or applicable portions thereof;
                    (B) with the care, skill, prudence, and diligence 
                under the circumstances then prevailing that a prudent 
                individual acting in a like capacity and familiar with 
                such matters would use in the conduct of an enterprise 
                of a like character and with like objectives; and
                    (C) to the extent permitted by this title, by 
                diversifying the investments of the American Savings 
                Account Fund or applicable portions thereof so as to 
                minimize the risk of large losses, unless under the 
                circumstances it is clearly prudent not to do so.
            (2) Ownership.--No fiduciary may maintain the indicia of 
        ownership of any assets of the American Savings Account Fund 
        outside the jurisdiction of the district courts of the United 
        States.
    (c) Prohibited Transactions.--
            (1) In general.--A fiduciary shall not permit the American 
        Savings Account Fund to engage in any of the following 
        transactions, except in exchange for adequate consideration:
                    (A) A transfer of any assets of the American 
                Savings Account Fund to any person the fiduciary knows 
                or should know to be a party in interest or the use of 
                such assets by any such person.
                    (B) An acquisition of any property from or sale of 
                any property to the American Savings Account Fund by 
                any person the fiduciary knows or should know to be a 
                party in interest.
                    (C) A transfer or exchange of services between the 
                American Savings Account Fund and any person the 
                fiduciary knows or should know to be a party in 
                interest.
            (2) Special rules.--Notwithstanding paragraph (1), a 
        fiduciary with respect to the American Savings Account Fund 
        shall not--
                    (A) deal with any assets of the American Savings 
                Account Fund in the fiduciary's own interest or for the 
                fiduciary's own account;
                    (B) act, in an individual capacity or any other 
                capacity, in any transaction involving the American 
                Savings Account Fund on behalf of a party, or 
                representing a party, whose interests are adverse to 
                the interests of the American Savings Account Fund or 
                the interests of its participants or beneficiaries; or
                    (C) receive any consideration for the fiduciary's 
                own personal account from any party dealing with sums 
                credited to the American Savings Account Fund in 
                connection with a transaction involving assets of the 
                American Savings Account Fund.
            (3) Granting of exemptions.--
                    (A) The Secretary may, in accordance with 
                procedures which the Secretary shall by regulation 
                prescribe, grant a conditional or unconditional 
                exemption of any fiduciary or transaction, or class of 
                fiduciaries or transactions, from all or part of the 
                restrictions imposed by paragraph (2).
                    (B) An exemption granted under this paragraph shall 
                not relieve a fiduciary from any other applicable 
                provision of this title.
                    (C) The Secretary may not grant an exemption under 
                this paragraph unless the Secretary finds that such 
                exemption is--
                            (i) administratively feasible;
                            (ii) in the interests of the American 
                        Savings Account Fund and of its participants 
                        and beneficiaries; and
                            (iii) protective of the rights of 
                        participants and beneficiaries of such Fund.
                    (D) An exemption under this paragraph may not be 
                granted unless--
                            (i) notice of the proposed exemption is 
                        published in the Federal Register;
                            (ii) interested persons are given an 
                        opportunity to present views; and
                            (iii) the Secretary affords an opportunity 
                        for a hearing and makes a determination on the 
                        record with respect to the respective 
                        requirements of clauses (i), (ii), and (iii) of 
                        subparagraph (C).
                    (E) Notwithstanding subparagraph (D), the Secretary 
                may determine that an exemption granted for any class 
                of fiduciaries or transactions under section 408(a) of 
                the Employee Retirement Income Security Act of 1974 
                shall, upon publication of notice in the Federal 
                Register under this subparagraph, constitute an 
                exemption for purposes of the provisions of paragraph 
                (2).
    (d) Allowances.--This section does not prohibit any fiduciary 
from--
            (1) receiving any benefit which the fiduciary is entitled 
        to receive under this title as a participant or beneficiary;
            (2) receiving any reasonable compensation authorized by 
        this title for services rendered, or for reimbursement of 
        expenses properly and actually incurred, in the performance of 
        the fiduciary's duties under this title; or
            (3) serving as a fiduciary in addition to being an officer, 
        employee, agent, or other representative of a party in 
        interest.
    (e) Liability.--
            (1) In general.--
                    (A) Any fiduciary that breaches the 
                responsibilities, duties, and obligations set out in 
                subsection (b) or violates subsection (c) shall be 
                personally liable to the American Savings Account Fund 
                for any losses to such Fund resulting from each such 
                breach or violation and to restore to such Fund any 
                profits made by the fiduciary through use of assets of 
                such Fund by the fiduciary, and shall be subject to 
                such other equitable or remedial relief as a court 
                considers appropriate, except as provided in paragraphs 
                (3) and (4). A fiduciary may be removed for a breach 
                referred to in the preceding sentence.
                    (B) The Secretary may assess a civil penalty 
                against a party in interest with respect to each 
                transaction which is engaged in by the party in 
                interest and is prohibited by subsection (c). The 
                amount of such penalty shall be equal to 5 percent of 
                the amount involved in each such transaction (as 
                defined in section 4975(f)(4) of the Internal Revenue 
                Code of 1986) for each year or part thereof during 
                which the prohibited transaction continues, except 
                that, if the transaction is not corrected (in such 
                manner as the Secretary shall prescribe by regulation 
                consistent with section 4975(f)(5) of such Code) within 
                90 days after the date the Secretary transmits notice 
                to the party in interest (or such longer period as the 
                Secretary may permit), such penalty may be in an amount 
                not more than 100 percent of the amount involved.
                    (C)(i) A fiduciary shall not be liable under 
                subparagraph (A) with respect to a breach of fiduciary 
                duty under subsection (b) committed before becoming a 
                fiduciary or after ceasing to be a fiduciary.
                            (ii) A fiduciary shall not be liable under 
                        subparagraph (A), and no civil action may be 
                        brought against a fiduciary--
                                    (I) for providing for the automatic 
                                enrollment of a participant in 
                                accordance with this title; or
                                    (II) for enrolling a participant or 
                                beneficiary in a default investment 
                                fund or option in accordance with this 
                                title.
                    (D) A fiduciary shall be jointly and severally 
                liable under subparagraph (A) for a breach of fiduciary 
                duty under subsection (b) by another fiduciary only 
                if--
                            (i) the fiduciary participates knowingly 
                        in, or knowingly undertakes to conceal, an act 
                        or omission of such other fiduciary, knowing 
                        such act or omission is such a breach;
                            (ii) by the fiduciary's failure to comply 
                        with subsection (b) in the administration of 
                        the fiduciary's specific responsibilities which 
                        give rise to the fiduciary status, the 
                        fiduciary has enabled such other fiduciary to 
                        commit such a breach; or
                            (iii) the fiduciary has knowledge of a 
                        breach by such other fiduciary, unless the 
                        fiduciary makes reasonable efforts under the 
                        circumstances to remedy the breach.
                    (E) The Secretary shall prescribe, in regulations, 
                procedures for allocating fiduciary responsibilities 
                among fiduciaries, including investment managers. Any 
                fiduciary who, pursuant to such procedures, allocates 
                to a person or persons any fiduciary responsibility 
                shall not be liable for an act or omission of such 
                person or persons unless--
                            (i) such fiduciary violated subsection (b) 
                        with respect to the allocation, with respect to 
                        the implementation of the procedures prescribed 
                        by the Secretary, or in continuing such 
                        allocation; or
                            (ii) such fiduciary would otherwise be 
                        liable in accordance with subparagraph (D).
            (2) Civil action only as provided.--No civil action may be 
        maintained against any fiduciary with respect to the 
        responsibilities, liabilities, and penalties authorized or 
        provided for in this section except in accordance with 
        paragraphs (3) and (4).
            (3) Rules regarding civil actions.--A civil action may be 
        brought in the district courts of the United States--
                    (A) by the Secretary against any fiduciary other 
                than a Member of the Board or the Chair of the Board--
                            (i) to determine and enforce a liability 
                        under paragraph (1)(A);
                            (ii) to collect any civil penalty under 
                        paragraph (1)(B);
                            (iii) to enjoin any act or practice which 
                        violates any provision of subsection (b) or 
                        (c);
                            (iv) to obtain any other appropriate 
                        equitable relief to redress a violation of any 
                        such provision; or
                            (v) to enjoin any act or practice which 
                        violates section 101(e);
                    (B) by any participant, beneficiary, or fiduciary 
                against any fiduciary--
                            (i) to enjoin any act or practice which 
                        violates any provision of subsection (b) or 
                        (c);
                            (ii) to obtain any other appropriate 
                        equitable relief to redress a violation of any 
                        such provision; or
                            (iii) to enjoin any act or practice which 
                        violates section 101(e); or
                    (C) by any participant or beneficiary--
                            (i) to recover benefits of such participant 
                        or beneficiary under the provisions of this 
                        title, to enforce any right of such participant 
                        or beneficiary under such provisions, or to 
                        clarify any such right to future benefits under 
                        such provisions; or
                            (ii) to enforce any claim otherwise 
                        cognizable under sections 1346(b) and 2671 
                        through 2680 of title 28, United States Code, 
                        provided that the remedy against the United 
                        States provided by sections 1346(b) and 2672 of 
                        title 28, United States Code, for damages for 
                        injury or loss of property caused by the 
                        negligent or wrongful act or omission of any 
                        fiduciary while acting within the scope of the 
                        fiduciary's duties or employment shall be 
                        exclusive of any other civil action or 
                        proceeding by the participant or beneficiary 
                        for recovery of money by reason of the same 
                        subject matter against the fiduciary (or the 
                        estate of such fiduciary) whose act or omission 
                        gave rise to such action or proceeding, whether 
                        or not such action or proceeding is based on an 
                        alleged violation of subsection (b) or (c).
            (4) Other rules.--
                    (A) In all civil actions under paragraph (3)(A), 
                attorneys appointed by the Secretary may represent the 
                Secretary (except as provided in section 518(a) of 
                title 28, United States Code), however all such 
                litigation shall be subject to the direction and 
                control of the Attorney General.
                    (B) The Attorney General shall defend any civil 
                action or proceeding brought in any court against any 
                fiduciary referred to in paragraph (3)(C)(ii) (or the 
                estate of such fiduciary) for any such injury. Any 
                fiduciary against whom such a civil action or 
                proceeding is brought shall deliver, within such time 
                after date of service or knowledge of service as 
                determined by the Attorney General, all process served 
                upon such fiduciary (or an attested copy thereof) to 
                the Chair of the Board, who shall promptly furnish 
                copies of the pleading and process to the Attorney 
                General and the United States Attorney for the district 
                wherein the action or proceeding is brought.
                    (C) Upon certification by the Attorney General that 
                a fiduciary described in paragraph (3)(C)(ii) was 
                acting in the scope of such fiduciary's duties or 
                employment as a fiduciary at the time of the occurrence 
                or omission out of which the action arose, any such 
                civil action or proceeding commenced in a State court 
                shall be--
                            (i) removed without bond at any time before 
                        trial by the Attorney General to the district 
                        court of the United States for the district and 
                        division in which it is pending; and
                            (ii) deemed a tort action brought against 
                        the United States under the provisions of title 
                        28, United States Code, and all references 
                        thereto.
                    (D) The Attorney General may compromise or settle 
                any claim asserted in such civil action or proceeding 
                in the manner provided in section 2677 of title 28, 
                United States Code, and with the same effect. To the 
                extent section 2672 of title 28, United States Code, 
                provides that persons other than the Attorney General 
                or the Attorney General's designee may compromise and 
                settle claims, and that payment of such claims may be 
                made from agency appropriations, such provisions shall 
                not apply to claims based upon an alleged violation of 
                subsection (b) or (c).
                    (E) For the purposes of paragraph (3)(C)(ii) the 
                provisions of sections 2680(h) of title 28, United 
                States Code, shall not apply to any claim based upon an 
                alleged violation of subsection (b) or (c).
                    (F) Notwithstanding sections 1346(b) and 2671 
                through 2680 of title 28, United States Code, whenever 
                an award, compromise, or settlement is made under such 
                sections upon any claim based upon an alleged violation 
                of subsection (b) or (c), payment of such award, 
                compromise, or settlement shall be made to the 
                appropriate account within the American Savings Account 
                Fund, or where there is no such appropriate account, to 
                the participant or beneficiary bringing the claim.
                    (G) For purposes of paragraph (3)(C)(ii), the term 
                ``fiduciary'' includes only the Members of the Board 
                and the Board's Chair.
            (5) Prohibition of monetary relief.--Any relief awarded 
        against a Member of the Board or the Chair of the Board in a 
        civil action authorized by paragraph (3) may not include any 
        monetary damages or any other recovery of money.
            (6) Limitation.--An action may not be commenced under 
        paragraph (3)(A) or (B) with respect to a fiduciary's breach of 
        any responsibility, duty, or obligation under subsection (b) or 
        a violation of subsection (c) after the earlier of--
                    (A) 6 years after--
                            (i) the date of the last action which 
                        constituted a part of the breach or violation; 
                        or
                            (ii) in the case of an omission, the latest 
                        date on which the fiduciary could have cured 
                        the breach or violation; or
                    (B) 3 years after the earliest date on which the 
                plaintiff had actual knowledge of the breach or 
                violation, except that, in the case of fraud or 
                concealment, such action may be commenced not later 
                than 6 years after the date of discovery of such breach 
                or violation.
            (7) Jurisdiction.--
                    (A) The district courts of the United States shall 
                have exclusive jurisdiction of civil actions under this 
                subsection.
                    (B) An action under this subsection may be brought 
                in the District Court of the United States for the 
                District of Columbia or a district court of the United 
                States in the district where the breach alleged in the 
                complaint or petition filed in the action took place or 
                in the district where a defendant resides or may be 
                found. Process may be served in any other district 
                where a defendant resides or may be found.
            (8) Service.--
                    (A) A copy of the complaint or petition filed in 
                any action brought under this subsection (other than by 
                the Secretary) shall be served on the Chair, the 
                Secretary, and the Secretary of the Treasury by 
                certified mail.
                    (B) Any officer referred to in subparagraph (A) 
                shall have the right in the officer's discretion to 
                intervene in any action. If the Secretary brings an 
                action under paragraph (2) on behalf of a participant 
                or beneficiary, the Secretary shall notify the Chair 
                and the Secretary of the Treasury.
    (f) Regulations.--The Secretary may prescribe regulations to carry 
out this section.
    (g) Audits by Secretary.--
            (1) In general.--The Secretary of Labor shall establish a 
        program to carry out audits to determine the level of 
        compliance with the requirements of this section relating to 
        fiduciary responsibilities and prohibited activities of 
        fiduciaries.
            (2) Contracts, etc.--An audit under this subsection may be 
        conducted by the Secretary, by contract with a qualified 
        nongovernmental organization, or in cooperation with the 
        Comptroller General of the United States, as the Secretary 
        considers appropriate.

SEC. 104. AMERICAN SAVINGS ACCOUNT FUND ADVISORY COUNCIL.

    (a) In General.--The Board shall establish an American Savings 
Account Fund Advisory Council, to be composed of 14 members appointed 
by the Chair of the Board. The Chair of the Board shall designate 1 
member of the Council to serve as head of the Council.
    (b) Terms and Vacancies.--
            (1) Term.--A member of the Council shall be appointed for a 
        term of 4 years.
            (2) Vacancies.--
                    (A) A vacancy in the Council shall be filled in the 
                manner in which the original appointment was made and 
                shall be subject to any conditions which applied with 
                respect to the original appointment.
                    (B) An individual chosen to fill a vacancy shall be 
                appointed for the unexpired term of the member 
                replaced.
                    (C) The term of any member shall not expire before 
                the date on which the member's successor takes office.
    (c) Action by Majority Resolution.--The Council shall act by 
resolution of a majority of the members.
    (d) Responsibilities.--The Council shall--
            (1) advise the Board and the Chair of the Board on matters 
        relating to--
                    (A) investment policies for the American Savings 
                Account Fund; and
                    (B) the administration of this title; and
            (2) perform such other duties as the Board may direct with 
        respect to investment funds established in accordance with this 
        title.

                TITLE II--AMERICAN SAVINGS ACCOUNT FUND

SEC. 201. AMERICAN SAVINGS ACCOUNT FUND.

    (a) In General.--There is established in the Treasury of the United 
States an American Savings Account Fund.
    (b) Amounts in Fund.--The American Savings Account Fund consists of 
the sum of all amounts contributed under section 302, increased by the 
total net earnings from investments of sums in the American Savings 
Account Fund or reduced by the total net losses from investments of the 
American Savings Account Fund, and reduced by the total amount of 
payments made from the American Savings Account Fund (including 
payments for administrative expenses).
    (c) Appropriations From Fund.--The sums in the American Savings 
Account Fund are appropriated and shall remain available without fiscal 
year limitation--
            (1) to invest as provided in section 102(b)(1);
            (2) to pay benefits or purchase annuity contracts under 
        section 301(b);
            (3) to pay the administrative expenses of the Board 
        relating to the responsibilities under section 102; and
            (4) at the discretion of the Chair of the Board, to 
        purchase insurance to cover potential liability of persons who 
        serve in a fiduciary capacity with respect to the American 
        Savings Account Fund, in a manner consistent with rules similar 
        to the provisions of section 8479 of title 5, United States 
        Code.
    (d) Benefits Inalienable and Nonforfeitable.--
            (1) In general.--Subject to paragraphs (3) and (4) of 
        subsection (c) and paragraphs (3) and (4) of this subsection, 
        sums in the American Savings Account Fund credited to the 
        American Savings Account of a participant may not be used for, 
        or diverted to, purposes other than for the exclusive benefit 
        of the participant or the participant's beneficiaries.
            (2) Protection from alienation.--Except as provided in 
        paragraphs (3) and (4), sums in the American Savings Account 
        Fund may not be assigned or alienated and are not subject to 
        execution, levy, attachment, garnishment, or other legal 
        process.
            (3) Certain exceptions.--Moneys due or payable from the 
        American Savings Account Fund to any individual shall be 
        subject to legal process for the enforcement of the 
        individual's legal obligations to provide child support or make 
        alimony payments as provided in section 459 of the Social 
        Security Act, the enforcement of an order for restitution under 
        section 3663A of title 18, United States Code, or an obligation 
        of the Chair of the Board to make a payment to another person 
        under paragraph (4), and shall be subject to a Federal tax levy 
        under section 6331 of the Internal Revenue Code of 1986.
            (4) Court orders.--Rules similar to the rules of section 
        8467 of title 5, United States Code, shall apply with respect 
        to payments which would otherwise be made to a participant 
        under section 301(b).
    (e) Limitation on Further Appropriation.--The sums in the American 
Savings Account Fund shall not be appropriated for any purpose other 
than the purposes specified in this section and may not be used for any 
other purpose.
    (f) Amounts Held in Trust.--All sums contributed to the American 
Savings Account Fund by a participant or by an employer for the benefit 
of such participant and all net earnings in such Fund attributable to 
investment of such sums are held in such Fund in trust for such 
participant.

SEC. 202. TAX TREATMENT OF THE AMERICAN SAVINGS ACCOUNT FUND.

    (a) In General.--For purposes of the Internal Revenue Code of 
1986--
            (1) the American Savings Account Fund shall be treated as a 
        trust described in section 401(a) of such Code which is exempt 
        from taxation under section 501(a) of such Code;
            (2) any contribution to, or distribution from, the American 
        Savings Account Fund shall be treated in the same manner as 
        contributions to or distributions from such a trust;
            (3) contributions to the American Savings Account Fund 
        shall not be treated as distributed or made available to a 
        participant nor as a contribution made to the Fund by an 
        individual merely because the individual has, under section 
        302(b)(1)(C), made an election whether the contribution will be 
        made to the American Savings Account Fund or received by the 
        individual in cash; and
            (4) the rules of section 414(w) of such Code shall apply 
        with respect to American Savings Accounts, except that 
        paragraph (2)(B) thereof shall be applied by substituting ``the 
        due date for the return of tax for the taxable year in which 
        the first elective contribution is made with respect to the 
        employee under the arrangement'' for ``the date which is 90 
        days after the date of the first elective contribution with 
        respect to the employee under the arrangement''.
    (b) Coordination With Social Security Act.--Subsection (a) shall 
not be construed to provide that any amount of the employee's 
compensation which is contributed to the American Savings Account Fund 
shall not be included in the term ``wages'' for the purposes of section 
209 of the Social Security Act or section 3121(a) of the Internal 
Revenue Code of 1986.

                  TITLE III--AMERICAN SAVINGS ACCOUNTS

SEC. 301. AMERICAN SAVINGS ACCOUNTS.

    (a) In General.--For purposes of this title, the term ``American 
Savings Account'' means--
            (1) an individual retirement account (as defined in section 
        408(a) of the Internal Revenue Code of 1986); and
            (2) in the case of an individual making the election under 
        subsection (b)(2), a Roth IRA (as defined in section 408A(b) of 
        such Code),
established and maintained by the Board, as trustee of such account.
    (b) Special Rules.--
            (1) Eligibility.--
                    (A) In general.--All qualified employees shall be 
                eligible to participate in an American Savings Account.
                    (B) Qualified employee.--For purposes of this 
                subtitle--
                            (i) In general.--The term ``qualified 
                        employee'' means an employee (other than an 
                        employee described in section 410(b)(3)(C) of 
                        the Internal Revenue Code of 1986) of an 
                        American employer if the employer does not 
                        provide the opportunity for the employee to 
                        participate in a defined contribution plan 
                        (within the meaning of section 414(i) of the 
                        Internal Revenue Code of 1986) maintained by 
                        the employer that satisfies the requirements of 
                        section 401(a) or 403(b) of the Internal 
                        Revenue Code of 1986.
                            (ii) Exception for employees covered by 
                        collective bargaining agreements.--Such term 
                        shall not include any employee who is included 
                        in a group of employees covered by a collective 
                        bargaining agreement described in section 
                        410(b)(3)(A) of such Code.
                            (iii) American employer.--The term 
                        ``American employer'' has the meaning given 
                        such term by section 3121(h) of such Code.
            (2) Election to convert to roth ira.--Subject to the rules 
        of section 408A(d)(3) of the Internal Revenue Code of 1986, an 
        individual may elect at any time to convert all or a portion of 
        the individual retirement account established for the 
        individual under section 102(c)(1)(A) to a Roth IRA (as defined 
        in section 408A(b) of such Code).
            (3) Contributions.--
                    (A) In general.--Subject to section 302(b)(1), an 
                individual may contribute to the American Savings 
                Account Fund in any year, pursuant to an election under 
                section 102(b)(2), an amount not to exceed the 
                limitation described in subparagraph (C). Contributions 
                pursuant to such an election shall, with respect to 
                each pay period for which such election remains in 
                effect, be made in accordance with a program of regular 
                contributions as prescribed by the Chair.
                    (B) Eligible rollover distributions.--An individual 
                may contribute to the American Savings Account Fund an 
                eligible rollover that an individual retirement account 
                or Roth IRA could accept under section 408 or 408A of 
                the Internal Revenue Code of 1986, whichever is 
                applicable (after the application of subparagraph (C)). 
                In the case of an eligible rollover distribution (as 
                defined in section 402(c)(4) of such Code), the maximum 
                amount transferred to the American Savings Account Fund 
                shall not exceed the amount which would otherwise have 
                been included in the individual's gross income for 
                Federal income tax purposes.
                    (C) Modification of contribution limitation.--In 
                lieu of the contribution limitations for individual 
                retirement accounts or Roth IRAs, whichever is 
                applicable, under part I of subchapter D of chapter 1 
                of the Internal Revenue Code of 1986, the annual 
                contribution limitation applicable to an American 
                Savings Account shall be equal to the limitation 
                applicable under section 415(c) of the Internal Revenue 
                Code of 1986 to contributions to a defined contribution 
                plan.
            (4) Annuities, etc.--
                    (A) In general.--The Board shall prescribe methods 
                of payment of annuities similar to the methods 
                available under section 8434(a)(2) of title 5, United 
                States Code.
                    (B) Rules applicable.--Rules similar to the rules 
                of subsections (b), (c), (d), and (e) of section 8434 
                of title 5, United States Code, shall apply for 
                purposes of this paragraph.
            (5) Protections for spouses and former spouses.--
                    (A) In general.--Except as provided in subparagraph 
                (A), rules similar to the rules of sections 8433(e) and 
                8435 of title 5, United States Code, shall apply for 
                purposes of this subsection.
                    (B) Additional protection for surviving spouses.--A 
                surviving spouse shall be the first party entitled to 
                receive benefits (before any designated beneficiary 
                other than the surviving spouse) unless the surviving 
                spouse consents in writing to the application of the 
                order of precedence in effect but for this 
                subparagraph.

SEC. 302. EMPLOYER REQUIREMENTS.

    (a) In General.--Except as provided in subsections (a) and (b) of 
section 303, each United States employer shall make contributions 
meeting the requirements of subsection (b) on behalf of such qualified 
employee to the American Savings Account Fund, beginning with the later 
of--
            (1) the first pay period for which the employee receives 
        compensation from the employer; or
            (2) the first pay period beginning on or after the 
        contribution beginning date.
    (b) Contributions.--The requirements of this subsection are met for 
a taxable year with respect to contributions to the American Savings 
Account Fund on behalf of a qualified employee if--
            (1) Contribution amount.--With respect to any pay period 
        beginning in such taxable year--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), such contributions are equal 
                to 3 percent of the compensation of the employee for 
                such period.
                    (B) Coordination with limitations.--The total 
                contributions to the Fund on behalf of the employee for 
                pay periods in any taxable year do not exceed the 
                contribution limitation described in section 
                301(b)(3)(C).
                    (C) Election.--After the first pay period with 
                respect to which a contribution is made with respect to 
                a qualified employee under subsection (a), the 
                qualified employee may elect--
                            (i) to change the percentage of 
                        compensation which is contributed to the Fund 
                        on behalf of such employee, except that such 
                        percentage may not be less than 2 percent or 
                        greater than the highest percentage that would 
                        not cause total contributions during the 
                        taxable year to exceed the limitation under 
                        subparagraph (B); or
                            (ii) to discontinue contributions to the 
                        Fund and withdraw all contributions previously 
                        made through a salary reduction arrangement in 
                        the same calendar year other than nonelective 
                        contributions made by the employer on behalf of 
                        the employee.
                In the event a qualified employee elects to withdraw 
                all contributions previously made to the Fund under the 
                preceding sentence, the amount of any nonelective 
                contributions made by the employer on behalf of the 
                employee shall be withdrawn and paid to the employer.
                    (D) Contributions may be made through salary 
                reduction arrangement.--Contributions by an employer 
                shall not fail to meet the requirements of this 
                subsection solely because the employee may elect to 
                have the employer make payments--
                            (i) to the American Savings Account of the 
                        employee; or
                            (ii) to the employee directly in cash.
                The preceding sentence shall apply only if the 
                contributions on behalf of all qualified employees of 
                the employer for a pay period are in a uniform dollar 
                amount or a uniform percentage of compensation.
                    (E) Mandatory percentage increase offer.--
                            (i) In general.--If a qualified employee 
                        elects under subparagraph (C) a contribution 
                        percentage that is less than 5 percent, then 12 
                        months after such election is made and every 12 
                        months thereafter the Board shall notify the 
                        employee in writing that such contribution 
                        percentage will be increased by 0.5 percent 
                        unless the employee objects within 30 days of 
                        receipt of such notice. If the employee does 
                        not so object, upon notification by the Board, 
                        the employer shall increase the percentage of 
                        the employee's compensation which is 
                        contributed to the Fund on behalf of the 
                        employee by 0.5 percent.
                            (ii) Applicability.--
                                    (I) In general.--Clause (i) shall 
                                cease to apply once the percentage of 
                                compensation contributed to the Fund on 
                                behalf of the employee is greater than 
                                or equal to 5 percent.
                                    (II) Coordination with 
                                limitations.--Clause (i) shall not 
                                apply during a taxable year if, as so 
                                increased, the percentage of 
                                compensation contributed to the Fund on 
                                behalf of the employee would exceed the 
                                percentage described in subparagraph 
                                (C)(i).
            (2) Frequency and timing of contributions.--Contributions 
        under subsection (a) are made not less frequently than monthly 
        during such year, and each such contribution is made not later 
        than 30 days after the close of the pay period to which it 
        relates.
    (c) Exceptions.--Subsection (a) shall not apply to an employer that 
is a church or convention or association of churches which is exempt 
from tax under section 501(a) of the Internal Revenue Code of 1986. If 
such an employer elects to make contributions to the American Savings 
Account Fund on behalf of qualified employees of the employer, such 
contributions must meet the requirements of paragraph (1).
    (d) Self-Employed Individuals.--An individual--
            (1) who has net earnings from self-employment (as defined 
        in section 1402(a) of the Internal Revenue Code of 1986);
            (2) who is not a qualified employee with respect to any 
        employer; and
            (3) who is not eligible to participate in a defined 
        contribution plan (within the meaning of section 414(i) of the 
        Internal Revenue Code of 1986) maintained by any employer;
may elect to make contributions on the individual's own behalf to the 
American Savings Account Fund. Such contributions shall be made under 
rules similar to the rules of section 301(b)(3).
    (e) Contribution Beginning Date.--For purposes of this section, the 
term ``contribution beginning date'' means January 1 of the third 
calendar year beginning after the date of the enactment of the American 
Savings Account Act of 2017.

SEC. 303. STATE RETIREMENT SAVINGS PLANS.

    (a) In General.--If a State--
            (1) maintains a public retirement savings plan that allows 
        all covered employers in the State to enroll all employees of 
        the employer automatically in such plan; or
            (2) allows all covered employers in the State to make 
        contributions to an individual retirement plan (as defined in 
        section 7701(a)(37) of the Internal Revenue Code of 1986) on 
        behalf of the employees of the employer,
such State may prohibit employers in the State from making 
contributions to the American Savings Account Fund on behalf of their 
employees, and section 302 shall not apply to covered employers to 
which such prohibition applies.
    (b) Exemption.--For purposes of this Act, the term ``employee 
pension benefit plan'' shall not include a payroll deduction program 
established by a State for the purpose of making contributions to one 
or more individual retirement plans (as defined in section 7701(a)(37) 
of the Internal Revenue Code of 1986), including such a program which 
provides for automatic enrollment.
    (c) Waiver of Penalty.--The penalty under section 6672(f) of the 
Internal Revenue Code of 1986 shall not apply to a failure to make a 
contribution on behalf of a qualified employee if the employer makes 
contributions to a State plan described in subsection (a) or (b) on 
behalf of such employee that satisfy the applicable requirements of 
such State plan. The employer shall certify to the Secretary of the 
Treasury, in such manner as shall be determined by such Secretary, that 
such contributions have been made.
    (d) Covered Employer.--For purposes of this section, the term 
``covered employer'' means an employer--
            (1) that does not provide the opportunity for employees to 
        participate in a defined contribution plan (within the meaning 
        of section 414(i) of the Internal Revenue Code of 1986) 
        maintained by the employer; and
            (2) whose employees are not covered by a collective 
        bargaining agreement described in section 410(b)(3)(A) of the 
        Internal Revenue Code of 1986.

SEC. 304. DEFINITIONS.

    Any term used in this title which is also used in section 408(k) of 
the Internal Revenue Code of 1986 has the same meaning as when used in 
such section.

                    TITLE IV--CONFORMING AMENDMENTS

SEC. 401. AMERICAN SAVINGS ACCOUNTS.

    (a) Conforming Amendment.--Section 7701 of the Internal Revenue 
Code of 1986 is amended by redesignating subsection (p) as subsection 
(q) and by inserting after subsection (o) the following new subsection:
    ``(p) Tax Treatment of American Savings Account Fund.--
            ``(1) In general.--For purposes of this title--
                    ``(A) the American Savings Account Fund shall be 
                treated as a trust described in section 401(a) which is 
                exempt from taxation under section 501(a);
                    ``(B) any contribution to, or distribution from, 
                the American Savings Account Fund shall be treated in 
                the same manner as contributions to or distributions 
                from such a trust;
                    ``(C) contributions to the American Savings Account 
                Fund shall not be treated as distributed or made 
                available to a participant nor as a contribution made 
                to the Fund by an individual merely because the 
                individual has, under section 302(b)(1)(C) of the 
                American Savings Account Act of 2017, made an election 
                whether the contribution will be made to the American 
                Savings Account Fund or received by the individual in 
                cash; and
                    ``(D) the rules of section 414(w) shall apply with 
                respect to American Savings Accounts, except that 
                paragraph (2)(B) thereof shall be applied by 
                substituting `the due date for the return of tax for 
                the taxable year in which the first elective 
                contribution is made with respect to the employee under 
                the arrangement' for `the date which is 90 days after 
                the date of the first elective contribution with 
                respect to the employee under the arrangement'.
            ``(2) Coordination with social security act.--Paragraph (1) 
        shall not be construed to provide that any amount of the 
        employee's compensation which is contributed to the American 
        Savings Account Fund shall not be included in the term `wages' 
        for the purposes of section 209 of the Social Security Act or 
        section 3121(a) of this title.
            ``(3) Definitions.--For purposes of this subsection, the 
        terms `employee' and `American Savings Account Fund' shall have 
        the same respective meanings as when used in the American 
        Savings Account Act of 2017.
            ``(4) Coordination with other provisions of law.--No 
        provision of law not contained in this title shall apply for 
        purposes of determining the treatment under this title of the 
        American Savings Account Fund or any contribution to, or 
        distribution from, such Fund.''.
    (b) Treatment of Contributions to American Savings Account Fund.--
            (1) In general.--Part III of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 is amended by inserting after 
        section 139E the following new section:

``SEC. 139F. AMOUNTS CONTRIBUTED TO AMERICAN SAVINGS ACCOUNTS.

    ``(a) In General.--Gross income does not include so much of the 
contributions made to the American Savings Account Fund on behalf of an 
individual for pay periods in the taxable year as does not exceed the 
limitation applicable under section 415(c) of the Internal Revenue Code 
of 1986 to contributions to a defined contribution plan.
    ``(b) American Savings Account Fund.--For purposes of this section, 
the term `American Savings Account Fund' means the Fund established 
under section 201 of the American Savings Account Act of 2017.''.
            (2) Denial of deduction.--Subsection (b) of section 219 of 
        such Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Special rule for american savings accounts.--This 
        section shall not apply with respect to any amount contributed 
        to an individual retirement account (as defined in section 
        408(a)) or a Roth IRA (as defined in section 408A(b)) which is 
        an American Savings Account (as defined in section 301 of the 
        American Savings Account Act of 2017).''.
            (3) Clerical amendment.--The table of sections for part III 
        of subchapter B of chapter 1 of such Code is amended by 
        inserting after the item relating to section 139E the following 
        new item:

``Sec. 139F. Amounts contributed to American Savings Accounts.''.
    (c) Treatment of Distributions as Separate From Other IRAs and Roth 
IRAs.--Subparagraph (A) of section 408(d)(2) of the Internal Revenue 
Code of 1986 is amended by striking ``plans'' and inserting ``plans 
(other than American Savings Accounts, within the meaning of section 
301 of the American Savings Account Act of 2017)''.
    (d) Effective Date.--
            (1) Program.--The Chair of the American Savings Account 
        Board of Directors shall establish the American Savings Account 
        program such that the American Savings Account Fund is prepared 
        to begin receiving contributions on January 1 of the third 
        calendar year beginning after the date of the enactment of this 
        Act.
            (2) Treatment of contributions.--Except as provided in 
        paragraph (1), the amendments made by this section shall apply 
        to contributions made to the American Savings Account Fund, as 
        established by the amendments made by subsection (a), after 
        December 31 of the second calendar year beginning after the 
        date of the enactment of this Act.

SEC. 402. PENALTY FOR EMPLOYER NONCOMPLIANCE.

    Section 6672 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection:
    ``(f) Employer Noncompliance With Requirements of American Savings 
Account Act.--Except as provided in section 303(c) of the American 
Savings Account Act of 2017, any employer that fails to make any 
contribution required by section 302 of such Act shall be treated for 
purposes of subsection (a) as if the employer had willfully failed to 
collect a tax in the amount of such required contribution.''.

SEC. 403. OUTREACH.

    The Commissioner of Internal Revenue shall provide to any person 
filing Form 1099 information on contributing to the American Savings 
Account Fund.

SEC. 404. INDEPENDENT CONTRACTORS.

    The Secretary of Labor shall promulgate rules allowing employers 
to--
            (1) request explicit authorization from independent 
        contractors with such employers to contribute on behalf of such 
        independent contractors to the American Savings Account Fund; 
        and
            (2) automatically withhold and transmit a set amount or 
        percentage of compensation paid to such independent contractors 
        to such Fund.
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