I 

116TH CONGRESS 

2D SESSION H. R. 9064 

To amend and improve Federal law in the areas of immigration, health 

care, the Constitution, education, trade, veterans affairs, welfare, tax, 

and other matters. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 31, 2020 

Mr. KING of Iowa introduced the following bill; which was referred to the 

Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, Ways and Means, Education and Labor, Natural 

Resources, House Administration, Rules, Appropriations, Agriculture, 

Oversight and Reform, Veterans’ Affairs, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend and improve Federal law in the areas of immigration, health care, the Constitution, education, trade, veterans affairs, welfare, tax, and other matters. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Refurbishing the Pillars of American Exceptionalism Act 

6 of 2020’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

DIVISION A—llllll 

TITLE I—BIRTHRIGHT CITIZENSHIP 

Sec. 101. Short title. 

Sec. 102. Citizenship at birth for certain persons born in the United States. 

TITLE II—OBAMACARE REPEAL 

Sec. 201. Short title. 

Sec. 202. Repeal of the Patient Protection and Affordable Care Act and the 

Health Care and Education Reconciliation Act of 2010. 

TITLE III—BARRING PPACA SUPREME COURT CASES FROM 

CITATION 

Sec. 301. Barring PPACA Supreme Court cases from citation. 

TITLE IV—PROTECT INTERSTATE COMMERCE 

Sec. 401. Short title. 

Sec. 402. Prohibition against interference by State and local governments with 

production or manufacture of items in other States. 

Sec. 403. Federal cause of action to challenge State regulation of interstate 

commerce. 

Sec. 404. Agricultural product defined. 

TITLE V—ESTABLISHING MANDATORY MINIMUMS FOR ILLEGAL 

REENTRY 

Sec. 501. Short title. 

Sec. 502. Increased penalties for reentry of removed aliens. 

TITLE VI—SARAH’S LAW 

Sec. 601. Short title. 

Sec. 602. Mandatory detention of certain aliens charged with a crime resulting 

in death or serious bodily injury. 

Sec. 603. Savings provision. 

TITLE VII—HEARTBEAT PROTECTION 

Sec. 701. Short title. 

Sec. 702. Abortions prohibited without a check for fetal heartbeat, or if a fetal 

heartbeat is detectable. 

TITLE VIII—SANCTITY OF LIFE 

Sec. 801. Short title. 

Sec. 802. Findings and declaration. 

Sec. 803. Limitation on jurisdiction. 

Sec. 804. Limitation on jurisdiction. 

Sec. 805. Effective date. 


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Sec. 806. Severability. 

TITLE IX—TAX FREE HEALTH INSURANCE 

Sec. 901. Short title. 

Sec. 902. Deduction for premiums for health insurance. 

TITLE X—AMERICAN FUTURE HEALTHCARE 

Sec. 1001. Short title. 

Sec. 1002. Reform of Health Savings Accounts. 

Sec. 1003. HSA Rollover to Medicare Advantage MSA. 

Sec. 1004. Treatment of direct primary care service arrangement fees as medical expense. 

Sec. 1005. Allowing certain individuals with alternative health coverage to 

choose to opt out of the Medicare part A benefit. 

TITLE XI 

Subtitle A—Choices in Education Act 

Sec. 1101. Short title. 

Sec. 1102. Repeal of Elementary and Secondary Education Act and limitation 

on secretarial authority. 

Sec. 1103. Block grants to states. 

Sec. 1104. Application. 

Sec. 1105. Education voucher program requirements. 

Sec. 1106. Definitions. 

Subtitle B—No Hungry Kids Act 

Sec. 1121. Short title. 

Sec. 1122. Repeal of rule. 

Sec. 1123. Limits on certain nutritional requirements. 

TITLE XII—RELIGIOUS WORKER VISA RECIPROCITY 

Sec. 1201. Short title. 

Sec. 1202. Requiring reciprocal immigration treatment. 

TITLE XIII—TERMINATION OF EB–5 PROGRAM 

Sec. 1301. Termination of EB–5 program. 

TITLE XIV—EXPATRIATE TERRORIST 

Sec. 1401. Short title. 

Sec. 1402. Loss of nationality due to support of terrorism. 

Sec. 1403. Revocation or denial of passports and passport cards to individuals 

who are members of foreign terrorist organizations. 

TITLE XV—SILENCERS HELP US SAVE HEARING 

Sec. 1501. Short title. 

Sec. 1502. Equal treatment of silencers and firearms. 

Sec. 1503. Treatment of certain silencers. 

Sec. 1504. Preemption of certain State laws in relation to firearm silencers. 

Sec. 1505. Silencers and mufflers not to be federally regulated. 


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TITLE XVI—PROTECT AMERICAN IPR 

Sec. 1601. Short title. 

Sec. 1602. Study and report on violations of United States intellectual property 

rights in China or by Chinese persons. 

Sec. 1603. Imposition of duties on merchandise from China and distribution of 

proceeds of such duties to holders of certain United States intellectual property rights. 

Sec. 1604. Compensation for losses borne by holders of United States intellectual property rights. 

TITLE XVII—SUNSET ACT 

Sec. 1701. Short title. 

Sec. 1702. Congressional review of agency rulemaking. 

TITLE XVIII—ILLEGAL DEDUCTION ELIMINATION 

Sec. 1801. Short title. 

Sec. 1802. Clarification that wages paid to unauthorized aliens may not be deducted from gross income. 

Sec. 1803. Modification of E–Verify Program. 

TITLE XIX—ENGLISH LANGUAGE UNITY 

Sec. 1901. Short title. 

Sec. 1902. Findings. 

Sec. 1903. English as official language of the United States. 

Sec. 1904. General rules of construction for English language texts of the laws 

of the United States. 

Sec. 1905. Implementing regulations. 

Sec. 1906. Effective date. 

TITLE XX—DAVIS-BACON REPEAL 

Sec. 2001. Short title. 

Sec. 2002. Repeal of Davis-Bacon wage requirements. 

Sec. 2003. Effective date and limitation. 

TITLE XXI—CENSUS ACCURACY 

Sec. 2101. Short title. 

Sec. 2102. Citizenship or lawful presence status on census questionnaires. 

TITLE XXII—TRUTH IN EMPLOYMENT 

Sec. 2201. Short title. 

Sec. 2202. Findings and purpose. 

Sec. 2203. Protection of employer rights. 

TITLE XXIII—E-BONDING FOR IMMIGRATION INTEGRITY 

Sec. 2301. Short title. 

Sec. 2302. Requirement of bond. 

Sec. 2303. Visa overstay rate categories. 

Sec. 2304. E-bond Enforcement Fund. 

Sec. 2305. Report. 

Sec. 2306. Definitions. 


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TITLE XXIV—RESTORING MAXIMUM MOBILITY TO OUR NATION’S 

VETERANS 

Sec. 2401. Short title. 

Sec. 2402. Wheelchairs for veterans with service-connected disabilities. 

TITLE XXV—END SANCTUARIES AND HELP OUR AMERICAN 

HOMELESS AND VETERANS 

Sec. 2501. Short title. 

Sec. 2502. Findings. 

Sec. 2503. Treatment of sanctuary jurisdictions. 

Sec. 2504. Private right of action. 

TITLE XXVI—SOCIAL SECURITY INTEGRITY ACT OF 2020 

Sec. 2601. Short title. 

Sec. 2602. Findings. 

Sec. 2603. Implementation of OIG recommendations. 

TITLE XXVII—HJ RES 47 

TITLE XXVIII—HJ RES 49 

TITLE XXIX—PROTECTING ACCESS TO CARE 

Sec. 2901. Short title. 

Sec. 2902. Encouraging speedy resolution of claims. 

Sec. 2903. Compensating patient injury. 

Sec. 2904. Maximizing patient recovery. 

Sec. 2905. Authorization of payment of future damages to claimants in health 

care lawsuits. 

Sec. 2906. Product liability for health care providers. 

Sec. 2907. Definitions. 

Sec. 2908. Effect on other laws. 

Sec. 2909. Rules of construction. 

Sec. 2910. Effective date. 

Sec. 2911. Limitation on expert witness testimony. 

Sec. 2912. Communications following unanticipated outcome. 

Sec. 2913. Expert witness qualifications. 

Sec. 2914. Affidavit of merit. 

Sec. 2915. Notice of intent to commence lawsuit. 

TITLE XXX—CONSOLIDATION OF FEDERAL WELFARE PROGRAMS 

Sec. 3001. Sense of congress. 

DIVISION B—FAIR TAX ACT 

Sec. 1. Short title; table of contents. 

Sec. 2. Congressional findings. 

TITLE I—REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND 

ESTATE AND GIFT TAXES 

Sec. 101. Income taxes repealed. 

Sec. 102. Payroll taxes repealed. 

Sec. 103. Estate and gift taxes repealed. 

Sec. 104. Conforming amendments; effective date. 


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TITLE II—SALES TAX ENACTED 

Sec. 201. Sales tax. 

Sec. 202. Conforming and technical amendments. 

TITLE III—OTHER MATTERS 

Sec. 301. Phase-out of administration of repealed Federal taxes. 

Sec. 302. Administration of other Federal taxes. 

Sec. 303. Sales tax inclusive Social Security benefits indexation. 

TITLE IV—SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT 

NOT REPEALED 

Sec. 401. Elimination of sales tax if Sixteenth Amendment not repealed. 

DIVISION C—CONSTITUTIONAL AMENDMENTS 

TITLE I—REPEAL OF 16TH AMENDMENT 

Sec. I Repeal of 16th Amendment. 

TITLE II—APPORTIONMENT OF REPRESENTATIVES 

Sec. II Apportionment of Representatives. 

1 DIVISION A—llllll 

2 TITLE I—BIRTHRIGHT 

3 CITIZENSHIP 

4 SEC. 101. SHORT TITLE. 

5 This title may be cited as the ‘‘Birthright Citizenship 

6 Act of 2020’’. 

7 SEC. 102. CITIZENSHIP AT BIRTH FOR CERTAIN PERSONS 

8 BORN IN THE UNITED STATES. 

9 (a) IN GENERAL.—Section 301 of the Immigration 

10 and Nationality Act (8 U.S.C. 1401) is amended— 

11 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

12 ‘‘The following’’; 

13 (2) by redesignating subsections (a) through (h) 

14 as paragraphs (1) through (8), respectively; and 

15 (3) by adding at the end the following: 


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1 ‘‘(b) DEFINITION.—Acknowledging the right of birth2 right citizenship established by section 1 of the 14th 

3 amendment to the Constitution, a person born in the 

4 United States shall be considered ‘subject to the jurisdic5 tion’ of the United States for purposes of subsection (a)(1) 

6 if the person is born in the United States of parents, one 

7 of whom is— 

8 ‘‘(1) a citizen or national of the United States; 

9 ‘‘(2) an alien lawfully admitted for permanent 

10 residence in the United States whose residence is in 

11 the United States; or 

12 ‘‘(3) an alien performing active service in the 

13 armed forces (as defined in section 101 of title 10, 

14 United States Code).’’. 

15 (b) APPLICABILITY.—The amendment made by sub16 section (a)(3) shall not be construed to affect the citizen17 ship or nationality status of any person born before the 

18 date of the enactment of this Act. 

19 TITLE II—OBAMACARE REPEAL 

20 SEC. 201. SHORT TITLE. 

21 This title may be cited as the ‘‘ObamaCare Repeal 

22 Act’’. 


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1 SEC. 202. REPEAL OF THE PATIENT PROTECTION AND AF2 FORDABLE CARE ACT AND THE HEALTH 

3 CARE AND EDUCATION RECONCILIATION ACT 

4 OF 2010. 

5 (a) PATIENT PROTECTION AND AFFORDABLE CARE

6 ACT.—Effective as of the enactment of the Patient Pro7 tection and Affordable Care Act (Public Law 111–148), 

8 such Act is repealed, and the provisions of law amended 

9 or repealed by such Act are restored or revived as if such 

10 Act had not been enacted. 

11 (b) HEALTH CARE AND EDUCATION RECONCILI12 ATION ACT OF 2010.—Effective as of the enactment of 

13 the Health Care and Education Reconciliation Act of 2010 

14 (Public Law 111–152), such Act is repealed, and the pro15 visions of law amended or repealed by such Act are re16 stored or revived as if such Act had not been enacted. 

17 TITLE III—BARRING PPACA SU18 PREME COURT CASES FROM 

19 CITATION 

20 SEC. 301. BARRING PPACA SUPREME COURT CASES FROM 

21 CITATION. 

22 Under Article 3, Section 2, which allows Congress to 

23 provide exceptions and regulations for Supreme Court con24 sideration of cases and controversies, the following cases 

25 are barred from citation for the purpose of precedence in 

26 all future cases after enactment: Nat’l Fed’n of Indep. 


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1 Bus. v. Sebelius, 132 S. Ct. 2566, 2573, 183 L. Ed. 2d 

2 450 (2012) and King v. Burwell, 135 S. Ct. 2480, 2485, 

3 192 L. Ed. 2d 483 (2015) and Burwell v. Hobby Lobby 

4 Stores Inc., 134 S. Ct. 2751, 2782, 189 L. Ed. 2d 675 

5 (2014). 

6 TITLE IV—PROTECT 

7 INTERSTATE COMMERCE 

8 SEC. 401. SHORT TITLE. 

9 This title may be cited as the ‘‘Protect Interstate 

10 Commerce Act of 2020’’. 

11 SEC. 402. PROHIBITION AGAINST INTERFERENCE BY STATE 

12 AND LOCAL GOVERNMENTS WITH PRODUC13 TION OR MANUFACTURE OF ITEMS IN OTHER 

14 STATES. 

15 Consistent with article I, section 8, clause 3 of the 

16 Constitution of the United States, the government of a 

17 State or locality therein shall not impose a standard or 

18 condition on the production or manufacture of any agricul19 tural product sold or offered for sale in interstate com20 merce if— 

21 (1) such production or manufacture occurs in 

22 another State; and 

23 (2) the standard or condition is in addition to 

24 the standards and conditions applicable to such pro25 duction or manufacture pursuant to— 


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1 (A) Federal law; and 

2 (B) the laws of the State and locality in 

3 which such production or manufacture occurs. 

4 SEC. 403. FEDERAL CAUSE OF ACTION TO CHALLENGE 

5 STATE REGULATION OF INTERSTATE COM6 MERCE. 

7 (a) PRIVATE RIGHT OF ACTION.—A person, includ8 ing, but not limited to, a producer, transporter, 

9 distributer, consumer, laborer, trade association, the Fed10 eral Government, a State government, or a unit of local 

11 government, which is affected by a regulation of a State 

12 or unit of local government which regulates any aspect of 

13 an agricultural product, including any aspect of the meth14 od of production, which is sold in interstate commerce, or 

15 any means or instrumentality through which such an agri16 cultural product is sold in interstate commerce, may bring 

17 an action in the appropriate court to invalidate such a reg18 ulation and seek damages for economic loss resulting from 

19 such regulation. 

20 (b) PRELIMINARY INJUNCTION.—Upon a motion of 

21 the plaintiff described in subsection (a), the court shall 

22 issue a preliminary injunction to preclude the State or unit 

23 of local government from enforcing the regulation at issue 

24 until such time as the court enters a final judgment in 


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1 the case, unless the State or unit of local government 

2 proves by clear and convincing evidence that— 

3 (1) the State or unit of local government is like4 ly to prevail on the merits at trial; and 

5 (2) the injunction would cause irreparable harm 

6 to the State or unit of local government. 

7 (c) STATUTE OF LIMITATIONS.—No action shall be 

8 maintained under this section unless it is commenced 

9 within 10 years after the cause of action arose. 

10 SEC. 404. AGRICULTURAL PRODUCT DEFINED. 

11 In this title, the term ‘‘agricultural product’’ has the 

12 meaning given such term in section 207 of the Agricul13 tural Marketing Act of 1946 (7 U.S.C. 1626). 

14 TITLE V—ESTABLISHING MAN15 DATORY MINIMUMS FOR IL16 LEGAL REENTRY 

17 SEC. 501. SHORT TITLE. 

18 This title may be cited as ‘‘Sarah’s Law’’ or as the 

19 ‘‘Establishing Mandatory Minimums for Illegal Reentry 

20 Act of 2020’’. 

21 SEC. 502. INCREASED PENALTIES FOR REENTRY OF RE22 MOVED ALIENS. 

23 Section 276 of the Immigration and Nationality Act 

24 (8 U.S.C. 1326) is amended— 


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1 (1) in subsection (a), in the matter following 

2 paragraph (2) by striking ‘‘fined under title 18, 

3 United States Code, or imprisoned not more than 2 

4 years, or both’’ and inserting ‘‘imprisoned not less 

5 than 5 years and not more than 6 years’’; and 

6 (2) in subsection (b)— 

7 (A) in paragraph (1), by striking ‘‘fined 

8 under title 18, United States Code, imprisoned 

9 not more than 10 years, or both’’ and inserting 

10 ‘‘imprisoned not less than 5 and not more than 

11 10 years, and may, in addition, be fined under 

12 title 18, United States Code’’; 

13 (B) in paragraph (2), by striking ‘‘fined 

14 under such title, imprisoned not more than 20 

15 years, or both’’ and inserting ‘‘imprisoned not 

16 less than 5 and not more than 20 years and 

17 may, in addition, be fined under such title’’; 

18 and 

19 (C) in paragraph (4), by striking ‘‘fined 

20 under title 18, United States Code, imprisoned 

21 for not more than 10 years, or both’’ and in22 serting ‘‘imprisoned for not less than 5 and not 

23 more than 10 years and may, in addition, be 

24 fined under such title’’. 


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1 TITLE VI—SARAH’S LAW 

2 SEC. 601. SHORT TITLE. 

3 This title may be cited as ‘‘Sarah’s Law’’. 

4 SEC. 602. MANDATORY DETENTION OF CERTAIN ALIENS 

5 CHARGED WITH A CRIME RESULTING IN 

6 DEATH OR SERIOUS BODILY INJURY. 

7 Section 236(c) of the Immigration and Nationality 

8 Act (8 U.S.C. 1226(c)) is amended— 

9 (1) in paragraph (1)— 

10 (A) in subparagraphs (A) and (B), by 

11 striking the comma at the end of each subpara12 graph and inserting a semicolon; 

13 (B) in subparagraph (C)— 

14 (i) by striking ‘‘sentence’’ and insert15 ing ‘‘sentenced’’; and 

16 (ii) by striking ‘‘, or’’ and inserting a 

17 semicolon; 

18 (C) in subparagraph (D), by striking the 

19 comma at the end and inserting ‘‘; or’’; and 

20 (D) by inserting after subparagraph (D) 

21 the following: 

22 ‘‘(E)(i)(I) was not inspected and admitted 

23 into the United States; 

24 ‘‘(II) held a nonimmigrant visa (or other 

25 documentation authorizing admission into the 


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1 United States as a nonimmigrant) that has 

2 been revoked under section 221(i); or 

3 ‘‘(III) is described in section 

4 237(a)(1)(C)(i); and 

5 ‘‘(ii) has been charged by a prosecuting au6 thority in the United States with any crime 

7 that resulted in the death or serious bodily in8 jury (as defined in section 1365(h)(3) of title 

9 18, United States Code) of another person,’’; 

10 and 

11 (2) by adding at the end the following: 

12 ‘‘(3) NOTIFICATION REQUIREMENT.—Upon en13 countering or gaining knowledge of an alien de14 scribed in paragraph (1), the Assistant Secretary of 

15 Homeland Security for Immigration and Customs 

16 Enforcement shall make reasonable efforts— 

17 ‘‘(A) to obtain information from law en18 forcement agencies and from other available 

19 sources regarding the identity of any victims of 

20 the crimes for which such alien was charged or 

21 convicted; and 

22 ‘‘(B) to provide the victim or, if the victim 

23 is deceased, a parent, guardian, spouse, or clos24 est living relative of such victim, with informa25 tion, on a timely and ongoing basis, including— 


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1 ‘‘(i) the alien’s full name, aliases, date 

2 of birth, and country of nationality; 

3 ‘‘(ii) the alien’s immigration status 

4 and criminal history; 

5 ‘‘(iii) the alien’s custody status and 

6 any changes related to the alien’s custody; 

7 and 

8 ‘‘(iv) a description of any efforts by 

9 the United States Government to remove 

10 the alien from the United States.’’. 

11 SEC. 603. SAVINGS PROVISION. 

12 Nothing in this title, or the amendments made by this 

13 title, may be construed to limit the rights of crime victims 

14 under any other provision of law, including section 3771 

15 of title 18, United States Code. 

16 TITLE VII—HEARTBEAT 

17 PROTECTION 

18 SEC. 701. SHORT TITLE. 

19 This title may be cited as the ‘‘Heartbeat Protection 

20 Act of 2020’’. 

21 SEC. 702. ABORTIONS PROHIBITED WITHOUT A CHECK FOR 

22 FETAL HEARTBEAT, OR IF A FETAL HEART23 BEAT IS DETECTABLE. 

24 (a) ABORTIONS PROHIBITED WITHOUT A CHECK

25 FOR FETAL HEARTBEAT, OR IF A FETAL HEARTBEAT IS


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1 DETECTABLE.—Chapter 74 of title 18, United States 

2 Code, is amended— 

3 (1) in the chapter heading, by striking ‘‘PAR4 TIAL-BIRTH’’; 

5 (2) by inserting after section 1531 the fol6 lowing: 

7 ‘‘§ 1532. Abortions prohibited without a check for 

8 fetal heartbeat, or if a fetal heartbeat is 

9 detectable 

10 ‘‘(a) OFFENSE.—Any physician who knowingly per11 forms an abortion and thereby kills a human fetus— 

12 ‘‘(1) without determining, according to stand13 ard medical practice, whether the fetus has a detect14 able heartbeat; 

15 ‘‘(2) without informing the mother of the re16 sults of that determination; or 

17 ‘‘(3) after determining, according to standard 

18 medical practice, that the fetus has a detectable 

19 heartbeat, 

20 shall be fined under this title or imprisoned not more than 

21 5 years, or both. This subsection does not apply to an 

22 abortion that is necessary to save the life of a mother 

23 whose life is endangered by a physical disorder, physical 

24 illness, or physical injury, including a life-endangering 

25 physical condition caused by or arising from the pregnancy 


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1 itself, but not including psychological or emotional condi2 tions. 

3 ‘‘(b) DEFENDANT MAY SEEK HEARING.—A defend4 ant indicted for an offense under this section may seek 

5 a hearing before the State Medical Board on whether the 

6 physician’s conduct was necessary to save the life of the 

7 mother whose life was endangered by a physical disorder, 

8 physical illness, or physical injury, including a life-endan9 gering physical condition caused by or arising from the 

10 pregnancy itself, but not including psychological or emo11 tional conditions. The findings on that issue are admissible 

12 on that issue at the trial of the defendant. Upon a motion 

13 of the defendant, the court shall delay the beginning of 

14 the trial for not more than 30 days to permit such a hear15 ing to take place. 

16 ‘‘(c) NO LIABILITY FOR THE MOTHER ON WHOM

17 ABORTION IS PERFORMED.—A mother upon whom an 

18 abortion is performed may not be prosecuted under this 

19 section, for a conspiracy to violate this section, or for an 

20 offense under section 2, 3, or 4 of this title based on a 

21 violation of this section. 

22 ‘‘(d) REQUIREMENT FOR DATA RETENTION.—The 

23 physician shall include in the medical file of the mother 

24 documentation of the determination, according to stand25 ard medical practice, of whether the fetus has a detectable 


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1 heartbeat, the results of that determination, notification 

2 of the mother of those results, and any information en3 tered into evidence in any proceedings under subsection 

4 (b). Paragraph (j)(2) of section 164.530 of title 45, Code 

5 of Federal Regulations, shall apply to such documentation. 

6 ‘‘(e) SEVERABILITY.—If any provision of this section 

7 or the application of such provision to any person or cir8 cumstance is held to be invalid, the remainder of this sec9 tion and the application of the provisions of the remainder 

10 to any person or circumstance shall not be affected there11 by.’’; and 

12 (3) in the table of sections, by inserting after 

13 the item pertaining to section 1841 the following: 

‘‘1532. Abortions prohibited without a check for fetal heartbeat, or if a fetal 

heartbeat is detectable.’’. 

14 (b) CLERICAL AMENDMENT.—The table of chapters 

15 for part I of title 18, United States Code, is amended, 

16 in the item relating to chapter 74, to read as follows: 

‘‘74. Abortions .......................................................................................... 1531’’. 

17 TITLE VIII—SANCTITY OF LIFE 

18 SEC. 801. SHORT TITLE. 

19 This title may be cited as the ‘‘Sanctity of Life Act 

20 of 2020’’. 


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1 SEC. 802. FINDINGS AND DECLARATION. 

2 (a) FINDINGS.—Congress finds that uncontroverted 

3 scientific evidence has always shown that actual human 

4 life exists from the moment of conception. 

5 (b) DECLARATION.—Upon the basis of these find6 ings, and in the exercise of the powers of the Congress, 

7 the Congress hereby declares that human life shall be 

8 deemed to exist from fertilization, without regard to race, 

9 sex, age, health, defect, or condition of dependency and 

10 ‘‘person’’ shall include all human life as defined herein. 

11 Congress further recognizes that each State has a compel12 ling interest in protecting the lives of those within the 

13 State’s jurisdiction whom the State rationally regards as 

14 human beings. 

15 SEC. 803. LIMITATION ON JURISDICTION. 

16 (a) Chapter 81 of title 28, United States Code, is 

17 amended by adding the following new section and renum18 bering any appropriate section accordingly: 

19 ‘‘§ 1261. Appellate jurisdiction; limitations 

20 ‘‘Notwithstanding the provisions of sections 1253, 

21 1254, and 1257 of this chapter, the Supreme Court shall 

22 not have jurisdiction to review, by appeal, writ of certio23 rari, or otherwise, any case arising out of any statute, or24 dinance, rule, regulation, practice, or any part thereof, or 

25 arising out of any act interpreting, applying, enforcing, 

26 or effecting any statute, ordinance, rule, regulation, or 


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1 practice, on the grounds that such statute, ordinance, rule, 

2 regulation, practice, act, or part thereof (1) protects the 

3 rights of human persons between conception and birth, or 

4 (2) prohibits, limits, or regulates (a) the performance of 

5 abortions or (b) the provision of public expense of funds, 

6 facilities, personnel, or other assistance for the perform7 ance of abortions.’’. 

8 (b) The section analysis of chapter 81 of title 28 is 

9 amended by adding the following new item: 

‘‘1261. Appellate jurisdiction; limitations.’’. 

10 SEC. 804. LIMITATION ON JURISDICTION. 

11 (a) Chapter 85 of title 28, United States Code, is 

12 amended by adding at the end thereof the following new 

13 section and renumbering any appropriate section accord14 ingly: 

15 ‘‘§ 1370. Limitations on jurisdiction 

16 ‘‘Notwithstanding any other provision of law, the dis17 trict courts shall not have jurisdiction of any case or ques18 tion which the Supreme Court does not have jurisdiction 

19 to review under section 1261 of this title.’’. 

20 (b) The section analysis at the beginning of chapter 

21 85 of title 28 is amended by adding at the end thereof 

22 the following new item: 

‘‘1370. Limitations on jurisdiction.’’. 


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1 SEC. 805. EFFECTIVE DATE. 

2 The provisions of this title shall take effect imme3 diately upon enactment. 

4 SEC. 806. SEVERABILITY. 

5 If any provision of this title or the application thereof 

6 to any person or circumstance is judicially determined to 

7 be invalid, the validity of the remainder of the Act and 

8 the application of such provision to other persons and cir9 cumstances shall not be affected by such determination. 

10 TITLE IX—TAX FREE HEALTH 

11 INSURANCE 

12 SEC. 901. SHORT TITLE. 

13 This title may be cited as the ‘‘Tax Free Health In14 surance Act of 2020’’. 

15 SEC. 902. DEDUCTION FOR PREMIUMS FOR HEALTH INSUR16 ANCE. 

17 (a) IN GENERAL.—Part VII of subchapter B of chap18 ter 1 of the Internal Revenue Code of 1986 is amended 

19 by redesignating section 224 as section 225 and by insert20 ing after section 223 the following new section: 

21 ‘‘SEC. 224. DEDUCTION FOR PREMIUMS FOR HEALTH IN22 SURANCE. 

23 ‘‘In the case of an individual, there shall be allowed 

24 as a deduction to the taxpayer for the taxable year 

25 amounts paid by the taxpayer for insurance which con26 stitutes medical care (as defined in section 213(d)) for the 


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1 taxpayer and the taxpayer’s spouse and dependents. No 

2 amount shall be taken into account under the preceding 

3 sentence if a deduction or credit is allowed for such 

4 amount under this chapter or to any other taxpayer.’’. 

5 (b) DEDUCTION ALLOWED WHETHER OR NOT INDI6 VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

7 of section 62 of such Code is amended by inserting before 

8 the last sentence at the end the following new paragraph: 

9 ‘‘(22) DEDUCTION FOR PREMIUMS FOR HEALTH

10 INSURANCE.—The deduction allowed by section 

11 224.’’. 

12 (c) CLERICAL AMENDMENT.—The table of sections 

13 for part VII of subchapter B of chapter 1 of such Code 

14 is amended by striking the item relating to section 224 

15 and adding at the end the following new items: 

‘‘Sec. 224. Deduction for premiums for health insurance. 

‘‘Sec. 225. Cross reference.’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2018. 

19 TITLE X—AMERICAN FUTURE 

20 HEALTHCARE 

21 SEC. 1001. SHORT TITLE. 

22 This title may be cited as the ‘‘American Future 

23 Healthcare Act of 2020’’. 


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1 SEC. 1002. REFORM OF HEALTH SAVINGS ACCOUNTS. 

2 (a) REPEAL OF HIGH DEDUCTIBLE HEALTH PLAN

3 REQUIREMENT.—Section 223(a) of the Internal Revenue 

4 Code of 1986 is amended to read as follows: 

5 ‘‘(a) DEDUCTION ALLOWED.—In the case of an indi6 vidual, there shall be allowed as a deduction for a taxable 

7 year an amount equal to the aggregate amount paid in 

8 cash during such taxable year by or on behalf of such indi9 vidual to a health savings account of such individual.’’. 

10 (b) INCREASE IN DEDUCTIBLE HSA CONTRIBUTION

11 LIMITATIONS.—Section 223(b)(1) of such Code is amend12 ed by striking ‘‘the sum of the monthly’’ and all that fol13 lows through ‘‘eligible individual’’ and inserting ‘‘$10,000 

14 ($20,000 in the case of a joint return)’’. 

15 (c) MEDICARE ELIGIBLE INDIVIDUALS ELIGIBLE TO

16 CONTRIBUTE TO HSA.—Section 223(b) of such Code is 

17 amended by striking paragraph (7). 

18 (d) PURCHASE OF HEALTH INSURANCE.—Section 

19 223(d)(2) of such Code is amended— 

20 (1) by striking subparagraphs (B) and (C), and 

21 (2) by striking ‘‘QUALIFIED MEDICAL EX22 PENSES.—’’ and all that follows through ‘‘The term’’ 

23 and inserting ‘‘QUALIFIED MEDICAL EXPENSES.— 

24 The term’’. 

25 (e) COST-OF-LIVING ADJUSTMENT FOR CATCHUP

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1 designated by subsection (g)(3)) is amended by striking 

2 ‘‘Each dollar amount in subsections (b)(2) and (c)(2)(A)’’ 

3 and inserting ‘‘In the case of a taxable year beginning 

4 after December 31, 2019, each dollar amount in para5 graphs (1) and (2) of subsection (b)’’. 

6 (f) COST-OF-LIVING ADJUSTMENT INDEXED TO CPI 

7 MEDICAL CARE COMPONENT.—Section 223(f) (as so re8 designated) is amended by adding at the end the following 

9 new paragraph: 

10 ‘‘(3) CPI MEDICAL CARE COMPONENT.— 

11 ‘‘(A) IN GENERAL.—For purposes of para12 graph (1), the cost-of-living adjustment deter13 mined under section 1(f)(3) for the calendar 

14 year shall be determined by substituting ‘CPI 

15 medical care component’ for ‘CPI’. 

16 ‘‘(B) CPI MEDICAL CARE COMPONENT.— 

17 For purposes of subparagraph (A), the term 

18 ‘CPI medical care component’ means the med19 ical care component for the Consumer Price 

20 Index for All Urban Consumers published by 

21 the Department of Labor.’’. 

22 (g) CONFORMING AMENDMENTS.— 

23 (1) Section 223(b) of such Code is amended by 

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1 nating paragraphs (3), (4), and (6) as paragraphs 

2 (2), (3), and (4), respectively. 

3 (2) Section 223(b)(3) of such Code (as redesig4 nated by paragraph (1)) is amended by striking the 

5 last sentence. 

6 (3) Section 223 of such Code is amended by 

7 striking subsection (c) and redesignating subsections 

8 (d) through (h) as subsections (c) through (g), re9 spectively. 

10 (4) Section 223(c)(1)(A) of such Code (as re11 designated by paragraph (3)) is amended— 

12 (A) by striking ‘‘subsection (f)(5)’’ and in13 serting ‘‘subsection (e)(5)’’; and 

14 (B) in clause (ii) by striking ‘‘the sum of— 

15 ’’ and all that follows and inserting ‘‘the dollar 

16 amount in effect under subsection (b)(1).’’. 

17 (5) Section 223(f)(1) (as redesignated by para18 graph (3)) is amended by striking ‘‘calendar year 

19 2003’’ and inserting ‘‘calendar year 2014’’. 

20 (6) Section 26(b)(2)(U) of such Code is amend21 ed by striking ‘‘section 223(f)(4)’’ and inserting 

22 ‘‘section 223(e)(4)’’. 

23 (7) Sections 35(g)(3), 220(f)(5)(A), 

24 848(e)(1)(v), 4973(a)(5), and 6051(a)(12) of such 


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1 Code are each amended by striking ‘‘section 223(d)’’ 

2 each place it appears and inserting ‘‘section 223(c)’’. 

3 (8) Section 106(d)(1) of such Code is amend4 ed— 

5 (A) by striking ‘‘who is an eligible indi6 vidual (as defined in section 223(c)(1))’’; and 

7 (B) by striking ‘‘section 223(d)’’ and in8 serting ‘‘section 223(c)’’. 

9 (9) Section 408(d)(9) of such Code is amend10 ed— 

11 (A) in subparagraph (A) by striking ‘‘who 

12 is an eligible individual (as defined in section 

13 223(c)) and’’; and 

14 (B) in subparagraph (C) by striking ‘‘com15 puted on the basis of the type of coverage under 

16 the high deductible health plan covering the in17 dividual at the time of the qualified HSA fund18 ing distribution’’. 

19 (10) Section 877A(g)(6) of such Code is 

20 amended by striking ‘‘223(f)(4)’’ and inserting 

21 ‘‘223(e)(4)’’. 

22 (11) Section 4973(g) of such Code is amend23 ed— 

24 (A) by striking ‘‘section 223(d)’’ and in25 serting ‘‘section 223(c)’’; 


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1 (B) in paragraph (2), by striking ‘‘section 

2 223(f)(2)’’ and inserting ‘‘section 223(e)(2)’’; 

3 and 

4 (C) by striking ‘‘section 223(f)(3)’’ and in5 serting ‘‘section 223(e)(3)’’. 

6 (12) Section 4975 of such Code is amended— 

7 (A) in subsection (c)(6)— 

8 (i) by striking ‘‘section 223(d)’’ and 

9 inserting ‘‘section 223(c)’’; and 

10 (ii) by striking ‘‘section 223(e)(2)’’ 

11 and inserting ‘‘section 223(d)(2)’’; and 

12 (B) in subsection (e)(1)(E), by striking 

13 ‘‘section 223(d)’’ and inserting ‘‘section 

14 223(c)’’. 

15 (13) Section 6693(a)(2)(C) of such Code is 

16 amended by striking ‘‘section 223(h)’’ and inserting 

17 ‘‘section 223(g)’’. 

18 (h) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2018. 

21 SEC. 1003. HSA ROLLOVER TO MEDICARE ADVANTAGE MSA. 

22 (a) IN GENERAL.—Section 138(b)(2) of the Internal 

23 Revenue Code of 1986 is amended by striking ‘‘or’’ at the 

24 end of subparagraph (A), by adding ‘‘or’’ at the end of 


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1 subparagraph (C), and by adding at the end the following 

2 new subparagraph: 

3 ‘‘(C) an HSA rollover contribution de4 scribed in subsection (d)(5),’’. 

5 (b) HSA ROLLOVER CONTRIBUTION.—Section 

6 138(c) of such Code is amended by adding at the end the 

7 following new paragraph: 

8 ‘‘(5) ROLLOVER CONTRIBUTION.—An amount is 

9 described in this paragraph as a rollover contribu10 tion if it meets the requirement of subparagraphs 

11 (A) and (B). 

12 ‘‘(A) IN GENERAL.—The requirements of 

13 this subparagraph are met in the case of an 

14 amount paid or distributed from a health sav15 ings to the account beneficiary to the extent the 

16 amount is received is paid into a Medicare Ad17 vantage MSA of such beneficiary not later than 

18 the 60th day after the day on which the bene19 ficiary receives the payment or distribution. 

20 ‘‘(B) LIMITATION.—This paragraph shall 

21 not apply to any amount described in subpara22 graph (A) received by an individual from a 

23 health savings account if, at any time during 

24 the 1-year period ending on the day of such re25 ceipt, such individual received any other amount 


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1 described in subparagraph (A) from a health 

2 savings account which was not includible in the 

3 individual’s gross income because of the appli4 cation of section 223(e)(5)(A).’’. 

5 (c) CONFORMING AMENDMENT.—Section 

6 223(e)(5)(A) of such Code, as amended by section 1002, 

7 is amended by inserting ‘‘or Medicare Advantage MSA’’ 

8 after ‘‘into a health savings account’’. 

9 (d) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2018. 

12 SEC. 1004. TREATMENT OF DIRECT PRIMARY CARE SERV13 ICE ARRANGEMENT FEES AS MEDICAL EX14 PENSE. 

15 (a) IN GENERAL.—Section 223(c)(2)(C) of the Inter16 nal Revenue Code of 1986, as amended by the preceding 

17 provisions of this title, is amended by striking ‘‘or’’ at the 

18 end of clause (iii), by striking the period at the end of 

19 clause (iv) and inserting ‘‘, or’’, and by adding at the end 

20 the following new clause: 

21 ‘‘(v) any direct primary care service arrangement.’’. 

22 (b) DIRECT PRIMARY CARE SERVICE ARRANGE23 MENT.—Section 223(c) of such Code, as amended by the 

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1 nating paragraph (4) as paragraph (5) and by inserting 

2 after paragraph (3) the following new paragraph: 

3 ‘‘(4) DIRECT PRIMARY CARE SERVICE AR4 RANGEMENT.—For purposes of this paragraph— 

5 ‘‘(A) IN GENERAL.—The term ‘direct pri6 mary care service arrangement’ means, with re7 spect to any individual, an arrangement under 

8 which such individual is provided medical care 

9 (as defined in section 213(d)) consisting solely 

10 of primary care services (as defined in section 

11 1833(x)(2)(B) of the Social Security Act) pro12 vided by primary care practitioners (as defined 

13 in section 1833(x)(2)(A) of the Social Security 

14 Act, determined without regard to clause (ii) 

15 thereof), if the sole compensation for such care 

16 is a fixed periodic fee. 

17 ‘‘(B) LIMITATION.—With respect to any 

18 individual for any month, such term shall not 

19 include any arrangement if the aggregate fees 

20 for all direct primary care service arrangements 

21 (determined without regard to this subclause) 

22 with respect to such individual for such month 

23 exceed $150 (twice such dollar amount in the 

24 case of an individual with any direct primary 


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1 care service arrangement (as so determined) 

2 that covers more than one individual). 

3 ‘‘(C) CERTAIN SERVICES SPECIFICALLY

4 EXCLUDED FROM TREATMENT AS PRIMARY

5 CARE SERVICES.—For purposes of this para6 graph, the term ‘primary care services’ shall not 

7 include— 

8 ‘‘(i) procedures that require the use of 

9 general anesthesia, 

10 ‘‘(ii) prescription drugs (other than 

11 vaccines), and 

12 ‘‘(iii) laboratory services not typically 

13 administered in an ambulatory primary 

14 care setting. 

15 The Secretary, after consultation with the Sec16 retary of Health and Human Services, shall 

17 issue regulations or other guidance regarding 

18 the application of this subparagraph.’’. 

19 (c) INFLATION ADJUSTMENT.—Section 223(g)(1) of 

20 such Code is amended— 

21 (1) by striking ‘‘and (c)(2)(A)’’ and inserting ‘‘, 

22 (c)(2)(A), and (c)(4)(B)’’, and 

23 (2) in subparagraph (B), by striking ‘‘clause 

24 (ii)’’ and inserting ‘‘clauses (ii) and (iii)’’ in clause 

25 (i), by striking ‘‘and’’ at the end of clause (i), by 


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1 striking the period at the end of clause (ii) and in2 serting ‘‘, and’’, and by inserting after clause (ii) the 

3 following new clause: 

4 ‘‘(iii) in the case of the dollar amount 

5 in subsection (c)(4)(B) for taxable years 

6 beginning in calendar years after 2019, 

7 ‘calendar year 2018’.’’. 

8 (d) REPORTING OF DIRECT PRIMARY CARE SERVICE

9 ARRANGEMENT FEES ON W–2.—Section 6051(a) of such 

10 Code is amended by striking ‘‘and’’ at the end of para11 graph (16), by striking the period at the end of paragraph 

12 (17) and inserting ‘‘, and’’, and by inserting after para13 graph (17) the following new paragraph: 

14 ‘‘(18) in the case of a direct primary care serv15 ice arrangement (as defined in section 223(c)(4)) 

16 which is provided in connection with employment, 

17 the aggregate fees for such arrangement for such 

18 employee.’’. 

19 (e) EFFECTIVE DATE.—The amendments made by 

20 this subsection shall apply to months beginning after De21 cember 31, 2018, in taxable years ending after such date. 


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1 SEC. 1005. ALLOWING CERTAIN INDIVIDUALS WITH ALTER2 NATIVE HEALTH COVERAGE TO CHOOSE TO 

3 OPT OUT OF THE MEDICARE PART A BEN4 EFIT. 

5 (a) IN GENERAL.—Any individual described in sub6 section (c) who is otherwise entitled to benefits under part 

7 A of title XVIII of the Social Security Act may elect (in 

8 such form and manner as may be specified by the Commis9 sioner of Social Security, in consultation with the Sec10 retary of Health and Human Services) to opt out of such 

11 entitlement. Notwithstanding any other provision of law, 

12 in the case of an individual who makes such an election, 

13 such individual— 

14 (1) may (in such form and manner as may be 

15 specified by the Commissioner, in consultation with 

16 the Secretary) subsequently choose to end such elec17 tion and opt back into such entitlement (in accord18 ance with a process determined by the Commis19 sioner, in consultation with the Secretary) without, 

20 subject to subsection (b), being subject to any pen21 alty; 

22 (2) shall not be required to opt out of benefits 

23 under title II of such Act as a condition for making 

24 such election; and 


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1 (3) shall not be required to repay any amount 

2 paid under such part A for items and services fur3 nished prior to making such election. 

4 (b) NOTIFICATION OF TERMINATION OF QUALIFYING

5 ALTERNATIVE HEALTH COVERAGE REQUIRED.— 

6 (1) NOTIFICATION.—In the case of an indi7 vidual who makes an election under subsection (a) 

8 and whose enrollment in qualifying alternative 

9 health coverage is subsequently terminated, such in10 dividual shall notify the Secretary of Health and 

11 Human Services of such termination not later than 

12 60 days after the date of such termination. 

13 (2) LATE ENROLLMENT PENALTY.—If an indi14 vidual required to notify the Secretary under para15 graph (1) fails to provide such notification within 

16 the period specified under such paragraph and sub17 sequently chooses to end the election made by such 

18 individual under subsection (a) and opt back into 

19 benefits under part A of title XVIII of the Social Se20 curity Act, such individual shall be subject to a late 

21 enrollment penalty (as determined by the Secretary) 

22 in a manner and amount similar to an individual en23 rolled under such part A pursuant to section 1818 

24 of such Act (42 U.S.C. 1395i–2). 

25 (c) INDIVIDUAL DESCRIBED.— 


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1 (1) IN GENERAL.—For purposes of this section, 

2 an individual described in this subsection is an indi3 vidual who demonstrates (in accordance with a proc4 ess determined by the Commissioner, in consultation 

5 with the Secretary) that the individual is enrolled 

6 under qualifying alternative health coverage. 

7 (2) QUALIFYING ALTERNATIVE HEALTH COV8 ERAGE.—For purposes of this section, the term 

9 ‘‘qualifying alternative health coverage’’ includes a 

10 group health plan or health insurance coverage of11 fered in the group or individual market (as such 

12 terms are defined in section 2791 of the Public 

13 Health Service Act (42 U.S.C. 300gg–91), or other 

14 health coverage specified by the Commissioner, in 

15 consultation with the Secretary, that provides at 

16 least benefits comparable to benefits provided under 

17 part A of title XVIII of the Social Security Act. 

18 TITLE XI 

19 Subtitle A—Choices in Education 

20 Act 

21 SEC. 1101. SHORT TITLE. 

22 This subtitle may be cited as the ‘‘Choices in Edu23 cation Act of 2019’’. 


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1 SEC. 1102. REPEAL OF ELEMENTARY AND SECONDARY EDU2 CATION ACT AND LIMITATION ON SECRE3 TARIAL AUTHORITY. 

4 (a) REPEAL.—The Elementary and Secondary Edu5 cation Act of 1965 (20 U.S.C. 6301 et seq.) is repealed. 

6 (b) LIMITATION ON SECRETARIAL AUTHORITY.—The 

7 authority of the Secretary under this title is limited to 

8 evaluating State applications under section 1104 and 

9 making payments to States under section 1103. The Sec10 retary shall not impose any further requirements on States 

11 with respect to elementary and secondary education be12 yond the requirements of this title. 

13 SEC. 1103. BLOCK GRANTS TO STATES. 

14 (a) GRANTS TO STATES.—From amounts appro15 priated to carry out this title for a fiscal year, the Sec16 retary shall award grants (from allotments made under 

17 subsection (b)) to qualified States to enable such States 

18 to carry out an education voucher program under section 

19 1105. 

20 (b) ALLOTMENT.—From amounts described in sub21 section (a) for a fiscal year, the Secretary shall allot to 

22 each qualified State for that fiscal year an amount that 

23 bears the same ratio to those amounts as the number of 

24 eligible children in the qualified State (as determined by 

25 the Secretary on the basis of the most recent satisfactory 


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1 data) bears to the number of all eligible children in all 

2 States in such school year. 

3 (c) REALLOTMENT.—If a State does not receive 

4 funds under subsection (b) for a fiscal year, the Secretary 

5 shall allot the remainder of such funds to each qualified 

6 State in an amount that bears the same ratio to such re7 mainder for such year as the amount received under sub8 section (b) by such qualified State bears to the amount 

9 received under such subsection for such year by all quali10 fied States. 

11 (d) DEFICIT REDUCTION.—Any amounts remaining 

12 after allotments are made under subsection (c) for a fiscal 

13 year shall not be available for any purpose other than def14 icit reduction. 

15 SEC. 1104. APPLICATION. 

16 (a) APPLICATION.—To be eligible to receive a grant 

17 under this title, a State shall submit an application to the 

18 Secretary that includes assurances that the State will— 

19 (1) comply with the requirements of section 

20 1105; and 

21 (2) make it lawful for parents of an eligible 

22 child to elect— 

23 (A) to enroll their child in any public or 

24 private elementary or secondary school in the 

25 State; or 


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1 (B) to home-school their child. 

2 (b) APPROVAL.—Not later than 30 days after receiv3 ing an application from a State that meets the require4 ments of subsection (a), the Secretary shall approve such 

5 application. 

6 SEC. 1105. EDUCATION VOUCHER PROGRAM REQUIRE7 MENTS. 

8 (a) EDUCATION VOUCHER PROGRAM.— 

9 (1) IN GENERAL.—The State shall distribute 

10 funds received under this title among the local edu11 cational agencies in the State based on the number 

12 of eligible children enrolled in the public schools op13 erated by each local educational agency and the 

14 number of eligible children within each local edu15 cational agency’s geographical area whose parents 

16 elect to send their child to a private school or to 

17 home-school their child. 

18 (2) SENSE OF CONGRESS.—It is the sense of 

19 Congress that States should distribute non-Federal 

20 funds for elementary and secondary education in a 

21 manner that promotes competition and choices in 

22 education. 

23 (b) IDENTIFICATION OF ELIGIBLE CHILDREN; ALLO24 CATION AND DISTRIBUTION OF FUNDS.— 

25 (1) IDENTIFICATION OF ELIGIBLE CHILDREN.— 


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1 (A) LEA IDENTIFICATION.—On an annual 

2 basis, on a date to be determined by the Sec3 retary, each local educational agency shall in4 form the State educational agency of— 

5 (i) the number of eligible children en6 rolled in public schools served by the local 

7 educational agency; and 

8 (ii) the number of eligible children 

9 within each local educational agency’s geo10 graphical area whose parents elect— 

11 (I) to send their child to a pri12 vate school; or 

13 (II) to home-school their child. 

14 (B) STATE IDENTIFICATION.—On an an15 nual basis, on a date to be determined by the 

16 Secretary, each State educational agency shall 

17 inform the Secretary of the total number of 

18 children identified by all local educational agen19 cies in the State under subparagraph (A). 

20 (2) AMOUNT OF PAYMENT.— 

21 (A) IN GENERAL.—Subject to subpara22 graph (B), the amount of payment for each eli23 gible child in a State shall be equal to— 

24 (i) the total amount allotted to the 

25 State under this title; divided by 


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1 (ii) the total number of eligible chil2 dren in the State identified under para3 graph (1). 

4 (B) LIMITATIONS.— 

5 (i) In the case of a payment made to 

6 the parent of an eligible child who elects to 

7 attend a private school, the amount of the 

8 payment described in subparagraph (A) for 

9 each eligible child shall not exceed the cost 

10 for tuition, fees, and transportation for the 

11 eligible child to attend the private school. 

12 (ii) In the case of a payment made to 

13 a parent of an eligible child who elects to 

14 home-school such child, the amount of the 

15 payment described in subparagraph (A) for 

16 each eligible child shall not exceed the cost 

17 of home-schooling the child. 

18 (3) ALLOCATION TO LOCAL EDUCATIONAL

19 AGENCIES.—Based on the identification of eligible 

20 children in paragraph (1), the State educational 

21 agency shall provide to a local educational agency an 

22 amount equal to the product of— 

23 (A) the amount available for each eligible 

24 child in the State, as determined in paragraph 

25 (2); multiplied by 


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1 (B) the number of eligible children identi2 fied by the local educational agency under para3 graph (1)(A). 

4 (4) DISTRIBUTION TO SCHOOLS.—From 

5 amounts allocated under paragraph (3), each local 

6 educational agency that receives funds under such 

7 paragraph shall distribute a portion of such funds to 

8 the public schools served by the local educational 

9 agency, which amount shall— 

10 (A) be based on the number of eligible chil11 dren enrolled in such schools and included in 

12 the count submitted under paragraph (1)(A); 

13 and 

14 (B) be distributed in a manner that would, 

15 in the absence of such Federal funds, supple16 ment the funds made available from non-Fed17 eral resources for the education of eligible chil18 dren, and not to supplant such funds. 

19 (5) DISTRIBUTION TO PARENTS.— 

20 (A) IN GENERAL.—From the amounts allo21 cated under paragraph (3), each local edu22 cational agency that receives funds under such 

23 paragraph shall distribute a portion of such 

24 funds, in an amount equal to the amount de25 scribed in paragraph (2), to the parents of each 


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1 eligible child within the local educational agen2 cy’s geographical area who elect to send their 

3 child to a private school or to home-school their 

4 child (as the case may be) and whose child is 

5 included in the count of such eligible children 

6 under paragraph (1)(A), which amount shall be 

7 distributed in a manner so as to ensure that 

8 such payments will be used for appropriate edu9 cational expenses. 

10 (B) RESERVATION.—A local educational 

11 agency described in this paragraph may reserve 

12 not more than 1 percent of the funds available 

13 for distribution under subparagraph (A) to pay 

14 administrative costs associated with carrying 

15 out the activities described in such subpara16 graph. 

17 (c) RULE OF CONSTRUCTION.—Payments to parents 

18 under subsection (b)(5) shall be considered assistance to 

19 the eligible child and shall not be considered assistance 

20 to the school that enrolls the eligible child. The amount 

21 of any payment under this section shall not be treated as 

22 income of the child or his or her parents for purposes of 

23 Federal tax laws or for determining eligibility for any 

24 other Federal program. 


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1 SEC. 1106. DEFINITIONS. 

2 In this title: 

3 (1) ELIGIBLE CHILD.—The term ‘‘eligible 

4 child’’ means a child aged 5 to 17, inclusive. 

5 (2) PARENT.—The term ‘‘parent’’ includes a 

6 legal guardian or other person standing in loco 

7 parentis (such as a grandparent or stepparent with 

8 whom the child lives, or a person who is legally re9 sponsible for the child’s welfare). 

10 (3) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of Education. 

12 (4) STATE.—The term ‘‘State’’ means each of 

13 the 50 States and the District of Columbia. 

14 (5) QUALIFIED STATE.—The term ‘‘qualified 

15 State’’ means a State that has an application ap16 proved by the Secretary under section 1104. 

17 Subtitle B—No Hungry Kids Act 

18 SEC. 1121. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘No Hungry Kids 

20 Act’’. 

21 SEC. 1122. REPEAL OF RULE. 

22 The rule prescribed by the Food and Nutrition Serv23 ice of the Department of Agriculture relating to nutrition 

24 standards in the national school lunch and school break25 fast programs published on January 26, 2012 (77 Fed. 

26 Reg. 4088 et seq.), and revising parts 210 and 220 of 


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1 title 7, Code of Federal Regulations, shall have no force 

2 or effect. 

3 SEC. 1123. LIMITS ON CERTAIN NUTRITIONAL REQUIRE4 MENTS. 

5 Section 9(a)(1)(A)(i) of the Richard B. Russell Na6 tional School Lunch Act (42 U.S.C. 1758(a)(1)(A)(i)) is 

7 amended by inserting before the semicolon the following: 

8 ‘‘, to establish a calorie maximum for individual school 

9 lunches, or to prohibit a child from eating a lunch provided 

10 by the child’s parent or legal guardian’’. 

11 TITLE XII—RELIGIOUS WORKER 

12 VISA RECIPROCITY 

13 SEC. 1201. SHORT TITLE. 

14 This title may be cited as the ‘‘Religious Worker Visa 

15 Reciprocity Act of 2020’’. 

16 SEC. 1202. REQUIRING RECIPROCAL IMMIGRATION TREAT17 MENT. 

18 Section 204(a)(1)(G) of the Immigration and Nation19 ality Act (8 U.S.C. 1154(a)(1)(G)) is amended by adding 

20 at the end the following: 

21 ‘‘(iii) Beginning on October 1, 2017, no petition may 

22 be approved for classification of an alien as a special immi23 grant under section 101(a)(27)(C) if the Secretary of 

24 Homeland Security has determined that the country of the 

25 alien’s nationality— 


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1 ‘‘(I) is identified as a ‘Country of Particular 

2 Concern’ or a country where religious freedom is of 

3 significant interest in the 2018 International Reli4 gious Freedom Report; or 

5 ‘‘(II) does not extend reciprocal immigration 

6 treatment to nationals of the United States who are 

7 seeking resident status in order to work in a reli8 gious vocation or occupation.’’. 

9 TITLE XIII—TERMINATION OF 

10 EB–5 PROGRAM 

11 SEC. 1301. TERMINATION OF EB–5 PROGRAM. 

12 (a) REPEAL OF PROVISIONS.—Effective on the date 

13 of the enactment of this Act, the following provisions are 

14 repealed: 

15 (1) Section 203(b)(5) of the Immigration and 

16 Nationality Act (8 U.S.C. 1153(b)(5)). 

17 (2) Section 204(a)(1)(H) of the Immigration 

18 and Nationality Act (8 U.S.C. 1154(a)(1)(H)). 

19 (3) Section 216A of the Immigration and Na20 tionality Act (8 U.S.C. 1186b). 

21 (4) Section 610 of the Departments of Com22 merce, Justice, and State, the Judiciary, and Re23 lated Agencies Appropriations Act, 1993 (8 U.S.C. 

24 1153 note). 


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1 (b) APPLICABILITY.—Beginning on the date of the 

2 enactment of this Act, the Secretary of Homeland Secu3 rity— 

4 (1) shall cease to accept petitions and applica5 tions under any authority repealed under subsection 

6 (a); and 

7 (2) shall dismiss all pending petitions and appli8 cations described in paragraph (1). 

9 TITLE XIV—EXPATRIATE 

10 TERRORIST 

11 SEC. 1401. SHORT TITLE. 

12 This title may be cited as the ‘‘Expatriate Terrorist 

13 Act’’. 

14 SEC. 1402. LOSS OF NATIONALITY DUE TO SUPPORT OF 

15 TERRORISM. 

16 Section 349(a) of the Immigration and Nationality 

17 Act (8 U.S.C. 1481(a)) is amended to read as follows: 

18 ‘‘(a) IN GENERAL.—A person who is a national of 

19 the United States whether by birth or naturalization, shall 

20 lose his or her nationality by voluntarily performing any 

21 of the following acts with the intention of relinquishing 

22 United States nationality: 

23 ‘‘(1) Obtaining naturalization in a foreign state 

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1 tion filed by a duly authorized agent, after having 

2 attained 18 years of age. 

3 ‘‘(2) Taking an oath or making an affirmation 

4 or other formal declaration of allegiance to a foreign 

5 state, a political subdivision thereof, or a foreign ter6 rorist organization designated under section 219, 

7 after having attained 18 years of age. 

8 ‘‘(3) Entering, or serving in, the armed forces 

9 of a foreign state or a foreign terrorist organization 

10 designated under section 219 if— 

11 ‘‘(A) such armed forces are engaged in 

12 hostilities against the United States; or 

13 ‘‘(B) such persons serve as a commissioned 

14 or noncommissioned officer. 

15 ‘‘(4) Becoming a member of, or providing train16 ing or material assistance to, any foreign terrorist 

17 organization designated under section 219. 

18 ‘‘(5) Accepting, serving in, or performing the 

19 duties of any office, post, or employment under the 

20 government of a foreign state, a political subdivision 

21 thereof, or a foreign terrorist organization des22 ignated under section 219 if— 

23 ‘‘(A) the person knowingly has or acquires 

24 the nationality of such foreign state; or 


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1 ‘‘(B) an oath, affirmation, or declaration 

2 of allegiance to the foreign state, political sub3 division, or designated foreign terrorist organi4 zation is required for such office, post, or em5 ployment. 

6 ‘‘(6) Making a formal renunciation of United 

7 States nationality before a diplomatic or consular of8 ficer of the United States in a foreign state, in such 

9 form as may be prescribed by the Secretary of State. 

10 ‘‘(7) Making in the United States a formal 

11 written renunciation of nationality in such form as 

12 may be prescribed by, and before such officer as 

13 may be designated by, the Attorney General, when14 ever the United States shall be in a state of war and 

15 the Attorney General shall approve such renunci16 ation as not contrary to the interests of national de17 fense. 

18 ‘‘(8)(A) Committing any act of treason against, 

19 or attempting by force to overthrow, or bearing arms 

20 against, the United States; 

21 ‘‘(B) violating or conspiring to violate any of 

22 the provisions of section 2383 of title 18, United 

23 States Code; 

24 ‘‘(C) willfully performing any act in violation of 

25 section 2385 of title 18, United States Code; or 


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1 ‘‘(D) violating section 2384 of such title by en2 gaging in a conspiracy to overthrow, put down, or to 

3 destroy by force the Government of the United 

4 States, or to levy war against them, 

5 if and when such person is convicted thereof by a 

6 court martial or by a court of competent jurisdic7 tion.’’. 

8 SEC. 1403. REVOCATION OR DENIAL OF PASSPORTS AND 

9 PASSPORT CARDS TO INDIVIDUALS WHO ARE 

10 MEMBERS OF FOREIGN TERRORIST ORGANI11 ZATIONS. 

12 The Act entitled ‘‘An Act to regulate the issue and 

13 validity of passports, and for other purposes’’, approved 

14 July 3, 1926 (22 U.S.C. 211a et seq.), which is commonly 

15 known as the ‘‘Passport Act of 1926’’, is amended by add16 ing at the end the following: 

17 ‘‘SEC. 4. AUTHORITY TO DENY OR REVOKE PASSPORT AND 

18 PASSPORT CARD. 

19 ‘‘(a) INELIGIBILITY.— 

20 ‘‘(1) ISSUANCE.—The Secretary of State shall 

21 not issue a passport or passport card to any indi22 vidual whom the Secretary has determined is a 

23 member, or is attempting to become a member, of 

24 an organization the Secretary has designated as a 

25 foreign terrorist organization pursuant to section 


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1 219 of the Immigration and Nationality Act (8 

2 U.S.C. 1189). 

3 ‘‘(2) REVOCATION.—The Secretary of State 

4 shall revoke a passport or passport card previously 

5 issued to any individual described in paragraph (1). 

6 ‘‘(b) RIGHT OF REVIEW.—Any person who, in ac7 cordance with this section, is denied issuance of a passport 

8 or passport card by the Secretary of State, or whose pass9 port or passport card is revoked or otherwise restricted 

10 by the Secretary of State, may request a due process hear11 ing not later than 60 days after receiving such notice of 

12 the nonissuance, revocation, or restriction.’’. 

13 TITLE XV—SILENCERS HELP US 

14 SAVE HEARING 

15 SEC. 1501. SHORT TITLE. 

16 This title may be cited as the ‘‘Silencers Help Us 

17 Save Hearing Act’’ or the ‘‘SHUSH Act’’. 

18 SEC. 1502. EQUAL TREATMENT OF SILENCERS AND FIRE19 ARMS. 

20 (a) IN GENERAL.—Section 5845(a) of the Internal 

21 Revenue Code of 1986 is amended by striking ‘‘(7) any 

22 silencer’’ and all that follows through ‘‘; and (8)’’ and in23 serting ‘‘; and (7)’’. 

24 (b) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the amendment made by 

3 this section shall take effect on the date of the en4 actment of this Act. 

5 (2) TRANSFERS.—In the case of the tax im6 posed by section 5811 of such Code, the amendment 

7 made by this section shall apply with respect to 

8 transfers after October 22, 2015. 

9 SEC. 1503. TREATMENT OF CERTAIN SILENCERS. 

10 Section 5841 of the Internal Revenue Code of 1986 

11 is amended by adding at the end the following: 

12 ‘‘(f) FIREARM SILENCERS.—A person acquiring or 

13 possessing a firearm silencer in accordance with Chapter 

14 44 of title 18, United States Code, shall be treated as 

15 meeting any registration and licensing requirements of the 

16 National Firearms Act (as in effect on the day before the 

17 date of the enactment of this subsection) with respect to 

18 such silencer.’’. 

19 SEC. 1504. PREEMPTION OF CERTAIN STATE LAWS IN RELA20 TION TO FIREARM SILENCERS. 

21 Section 927 of title 18, United States Code, is 

22 amended by adding at the end the following: ‘‘Notwith23 standing the preceding sentence, a law of a State or a 

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1 porting a firearm silencer in or affecting interstate or for2 eign commerce, imposes a tax on any such conduct, or a 

3 marking, recordkeeping or registration requirement with 

4 respect to the firearm silencer, shall have no force or ef5 fect.’’. 

6 SEC. 1505. SILENCERS AND MUFFLERS NOT TO BE FEDER7 ALLY REGULATED. 

8 (a) DEFINITIONS.—Section 921(a) of title 18, United 

9 States Code, is amended— 

10 (1) in paragraph (3), by striking ‘‘(C) any fire11 arm muffler or firearm silencer; or (D)’’ and insert12 ing ‘‘or (C)’’; and 

13 (2) by striking paragraph (24). 

14 (b) PENALTIES.—Section 924 of such title is amend15 ed— 

16 (1) in subsection (c)(1)— 

17 (A) in paragraph (1)(B)(ii) by striking ‘‘, 

18 or is equipped with a firearm silencer or fire19 arm muffler’’; and 

20 (B) in paragraph (1)(C), by striking ‘‘or is 

21 equipped with a firearm silencer or firearm 

22 muffler,’’; and 

23 (2) in subsection (o), by striking ‘‘or is 

24 equipped with a firearm silencer or muffler,’’. 


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1 (c) CARRYING OF CONCEALED FIREARMS BY QUALI2 FIED LAW ENFORCEMENT OFFICERS.—Section 

3 926B(e)(3) of such title is amended— 

4 (1) in subparagraph (A), by adding ‘‘and’’ at 

5 the end; 

6 (2) by striking subparagraph (B); and 

7 (3) by redesignating subparagraph (C) as sub8 paragraph (B). 

9 (d) CARRYING OF CONCEALED FIREARMS BY QUALI10 FIED RETIRED LAW ENFORCEMENT OFFICERS.—Section 

11 926C(e)(1)(C) of such title is amended— 

12 (1) in clause (i), by adding ‘‘and’’ at the end; 

13 and 

14 (2) by striking clause (ii). 

15 TITLE XVI—PROTECT AMERICAN 

16 IPR 

17 SEC. 1601. SHORT TITLE. 

18 This title may be cited as the ‘‘Protect American IPR 

19 Act’’. 

20 SEC. 1602. STUDY AND REPORT ON VIOLATIONS OF UNITED 

21 STATES INTELLECTUAL PROPERTY RIGHTS 

22 IN CHINA OR BY CHINESE PERSONS. 

23 (a) STUDY.—The United States Trade Representa24 tive, in consultation with the United States International 

25 Trade Commission, shall conduct an annual study to deVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 termine the estimated annual loss of revenue to holders 

2 of United States intellectual property rights as a result 

3 of direct or indirect violations of such intellectual property 

4 rights in the People’s Republic of China or by any Chinese 

5 person, including governmental entities of China, in the 

6 preceding calendar year. 

7 (b) REPORT.—Not later than 120 days after the date 

8 of the enactment of this Act, and annually thereafter, the 

9 United States Trade Representative shall submit to Con10 gress a report that contains the results of the study con11 ducted pursuant to subsection (a). 

12 SEC. 1603. IMPOSITION OF DUTIES ON MERCHANDISE 

13 FROM CHINA AND DISTRIBUTION OF PRO14 CEEDS OF SUCH DUTIES TO HOLDERS OF 

15 CERTAIN UNITED STATES INTELLECTUAL 

16 PROPERTY RIGHTS. 

17 Notwithstanding any other provision of law, the 

18 President, acting through the United States Trade Rep19 resentative, shall impose duties on merchandise origi20 nating from China in an amount equivalent to— 

21 (1) the estimated total loss of revenue to hold22 ers of United States intellectual property rights as 

23 a result of violations of such intellectual property 

24 rights in China during the previous calendar year, as 


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1 determined by the study conducted pursuant to sec2 tion 1602(a), reduced by 

3 (2) the total amount of any tariffs collected, 

4 pursuant to section 301 of the Trade Act of 1974 

5 (19 U.S.C. 2411) or any other provision of law au6 thorizing the President to act to safeguard intellec7 tual property rights, with respect to such violations 

8 in such previous calendar year. 

9 SEC. 1604. COMPENSATION FOR LOSSES BORNE BY HOLD10 ERS OF UNITED STATES INTELLECTUAL 

11 PROPERTY RIGHTS. 

12 (a) ESTABLISHMENT OF TRUST FUND.—There is es13 tablished in the Treasury of the United States a trust 

14 fund, to be known as the ‘‘American IPR Trust Fund’’ 

15 (in this section referred to as the ‘‘Trust Fund’’), con16 sisting of such amounts as may be deposited to the Trust 

17 Fund pursuant to subsection (b) to be used, in accordance 

18 with subsection (c), for the purpose of compensating the 

19 injury to holders of United States intellectual property 

20 rights resulting from violations of such intellectual prop21 erty rights in China or by any Chinese person, including 

22 governmental entities of China. 

23 (b) FUNDING.—The Commissioner of U.S. Customs 

24 and Border Patrol shall deposit into the Trust Fund any 

25 amounts collected from duties imposed pursuant to section 


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1 1603, which shall remain available until expended for the 

2 purpose described in subsection (a). 

3 (c) DISTRIBUTION OF FUNDS.— 

4 (1) IN GENERAL.—From amounts in the Trust 

5 Fund, the Commissioner of U.S. Customs and Bor6 der Patrol shall make payments annually to each 

7 person the Commissioner determines, with respect to 

8 the preceding calendar year— 

9 (A) was— 

10 (i) if an individual, a citizen or legal 

11 permanent resident of the United States; 

12 or 

13 (ii) if an entity, organized under the 

14 laws of the United States or any subdivi15 sion of the United States; 

16 (B) held the rights to intellectual property 

17 under the laws of the United States; and 

18 (C) can establish quantifiable losses result19 ing from the violation, directly or indirectly, of 

20 such rights in China or by any Chinese person, 

21 including governmental entities of China, dur22 ing such year. 

23 (2) MAXIMUM PAYMENT.—The Commissioner 

24 may not make a payment under this subsection to 

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1 er than the amount of the loss described in para2 graph (1)(C) established with respect to such person 

3 in such year. 

4 (d) CONSULTATION.—The Commissioner shall con5 sult with the United States Trade Representative and the 

6 Secretary of Commerce in issuing such regulations as may 

7 be necessary to carry out this title. 

8 TITLE XVII—SUNSET ACT 

9 SEC. 1701. SHORT TITLE. 

10 This title may be cited as the ‘‘Sunset Act of 2020’’. 

11 SEC. 1702. CONGRESSIONAL REVIEW OF AGENCY RULE12 MAKING. 

13 Chapter 8 of title 5, United States Code, is amended 

14 to read as follows: 

15 ‘‘CHAPTER 8—CONGRESSIONAL REVIEW 

16 OF AGENCY RULEMAKING 

‘‘801. Congressional review. 

‘‘802. Congressional approval procedure for rules. 

‘‘803. Definitions. 

‘‘804. Judicial review. 

‘‘805. Exemption for monetary policy. 

‘‘806. Review of rules currently in effect. 

‘‘807. Sunset for rules. 

17 ‘‘§ 801. Congressional review 

18 ‘‘(a)(1)(A) Beginning on the date that is 3 months 

19 after the date of enactment of this section and every 3 

20 months thereafter, each agency shall submit to each 

21 House of the Congress and to the Comptroller General a 


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1 report including each rule made by that agency during 

2 that 3-month period, containing— 

3 ‘‘(i) a copy of each such rule; 

4 ‘‘(ii) a concise general statement relating to the 

5 rule; 

6 ‘‘(iii) a list of any other related regulatory ac7 tions intended to implement the same statutory pro8 vision or regulatory objective as well as the indi9 vidual and aggregate economic effects of those ac10 tions; and 

11 ‘‘(iv) the proposed effective date of the rule. 

12 ‘‘(B) No rule may take effect before the submission 

13 of a report under subparagraph (A) that includes that 

14 rule. 

15 ‘‘(C) On the date of the submission of the report 

16 under subparagraph (A), the Federal agency promulgating 

17 each rule included in the report shall submit to the Comp18 troller General and make available to each House of Con19 gress— 

20 ‘‘(i) a complete copy of the cost-benefit analysis 

21 of the rule, if any; 

22 ‘‘(ii) the agency’s actions pursuant to title 5 of 

23 the United States Code, sections 603, 604, 605, 

24 607, and 609; 


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1 ‘‘(iii) the agency’s actions pursuant to title 2 of 

2 the United States Code, sections 1532, 1533, 1534, 

3 and 1535; and 

4 ‘‘(iv) any other relevant information or require5 ments under any other Act and any relevant Execu6 tive orders. 

7 ‘‘(D) Upon receipt of a report submitted under sub8 paragraph (A), each House shall provide copies of the re9 port to the chairman and ranking member of each stand10 ing committee with jurisdiction under the rules of the 

11 House of Representatives or the Senate to report a bill 

12 to amend the provision of law under which each rule in13 cluded in the report is issued. 

14 ‘‘(2)(A) The Comptroller General shall provide a re15 port on each rule to the committees of jurisdiction by the 

16 end of 15 calendar days after the submission or publica17 tion date as provided in section 802(b)(2). The report of 

18 the Comptroller General shall include an assessment of the 

19 agency’s compliance with procedural steps required by 

20 paragraph (1)(C). 

21 ‘‘(B) Federal agencies shall cooperate with the Comp22 troller General by providing information relevant to the 

23 Comptroller General’s report under subparagraph (A). 

24 ‘‘(3) A rule included in a report submitted under 

25 paragraph (1) shall take effect upon enactment of a joint 


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1 resolution of approval described in section 802 or as pro2 vided for in the rule following enactment of a joint resolu3 tion of approval described in section 802, whichever is 

4 later. 

5 ‘‘(4) If a joint resolution of approval relating to a 

6 rule is not enacted within the period provided in sub7 section (b)(2), then a joint resolution of approval relating 

8 to the same rule may not be considered under this chapter 

9 in the same Congress by either the House of Representa10 tives or the Senate. 

11 ‘‘(b)(1) A rule shall not take effect unless the Con12 gress enacts a joint resolution of approval described under 

13 section 802. 

14 ‘‘(2) If a joint resolution described in subsection (a) 

15 is not enacted into law by the end of 70 session days or 

16 legislative days, as applicable, beginning on the date on 

17 which the report referred to in section 801(a)(1)(A) is re18 ceived by Congress (excluding days either House of Con19 gress is adjourned for more than 3 days during a session 

20 of Congress), then each rule described in that resolution 

21 shall be deemed not to be approved and such rule shall 

22 not take effect. 

23 ‘‘(3) Such a rule may not be reissued in substantially 

24 the same form, and a new rule that is substantially the 

25 same as such a rule may not be issued, unless the reissued 


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1 or new rule is specifically authorized by a law enacted 

2 after the date described in this subsection. 

3 ‘‘(c)(1) Notwithstanding any other provision of this 

4 section (except subject to paragraph (3)), a rule may take 

5 effect for one 90-calendar-day period if the President 

6 makes a determination under paragraph (2) and submits 

7 written notice of such determination to the Congress. 

8 ‘‘(2) Paragraph (1) applies to a determination made 

9 by the President by Executive order that the rule should 

10 take effect because such rule is— 

11 ‘‘(A) necessary because of an imminent threat 

12 to health or safety or other emergency; 

13 ‘‘(B) necessary for the enforcement of criminal 

14 laws; 

15 ‘‘(C) necessary for national security; or 

16 ‘‘(D) issued pursuant to any statute imple17 menting an international trade agreement. 

18 ‘‘(3) An exercise by the President of the authority 

19 under this subsection shall have no effect on the proce20 dures under section 802. 

21 ‘‘(d)(1) In addition to the opportunity for review oth22 erwise provided under this chapter, in the case of any rule 

23 included in a report submitted in accordance with sub24 section (a)(1)(A) during the period beginning on the date 

25 occurring— 


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1 ‘‘(A) in the case of the Senate, 60 session days, 

2 or 

3 ‘‘(B) in the case of the House of Representa4 tives, 60 legislative days, 

5 before the date the Congress is scheduled to adjourn a 

6 session of Congress through the date on which the same 

7 or succeeding Congress first convenes its next session, sec8 tion 802 shall apply to such rule in the succeeding session 

9 of Congress. 

10 ‘‘(2)(A) In applying section 802 for purposes of such 

11 additional review, a rule described under paragraph (1) 

12 shall be treated as though— 

13 ‘‘(i) such rule were published in the Federal 

14 Register on— 

15 ‘‘(I) in the case of the Senate, the 15th 

16 session day, or 

17 ‘‘(II) in the case of the House of Rep18 resentatives, the 15th legislative day, 

19 after the succeeding session of Congress first con20 venes; and 

21 ‘‘(ii) a report on such rule were submitted to 

22 Congress under subsection (a)(1) on such date. 

23 ‘‘(B) Nothing in this paragraph shall be construed 

24 to affect the requirement under subsection (a)(1) that a 


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1 report shall be submitted to Congress before a rule can 

2 take effect. 

3 ‘‘(3) A rule described under paragraph (1) shall take 

4 effect as otherwise provided by law (including other sub5 sections of this section). 

6 ‘‘§ 802. Congressional approval procedure for rules 

7 ‘‘(a) For purposes of this section, the term ‘joint res8 olution’ means only a joint resolution introduced on or 

9 after the date on which the report referred to in section 

10 801(a)(1)(A) is received by Congress (excluding days ei11 ther House of Congress is adjourned for more than 3 days 

12 during a session of Congress), the matter after the resolv13 ing clause of which is as follows: ‘That Congress approves 

14 the rules submitted by the ll relating to ll.’ (The 

15 blank spaces being appropriately filled in). 

16 ‘‘(1) In the House, the majority leader of the 

17 House of Representatives (or his designee) and the 

18 minority leader of the House of Representatives (or 

19 his designee) shall introduce such joint resolution 

20 described in subsection (a) (by request), within 3 

21 legislative days after Congress receives the report re22 ferred to in section 801(a)(1)(A). 

23 ‘‘(2) In the Senate, the majority leader of the 

24 Senate (or his designee) and the minority leader of 

25 the Senate (or his designee) shall introduce such 


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1 joint resolution described in subsection (a) (by re2 quest), within 3 session days after Congress receives 

3 the report referred to in section 801(a)(1)(A). 

4 ‘‘(b)(1) A joint resolution described in subsection (a) 

5 shall be referred to the committees in each House of Con6 gress with jurisdiction under the rules of the House of 

7 Representatives or the Senate to report a bill to amend 

8 the provision of law under which the rule is issued. 

9 ‘‘(2) For purposes of this section, the term ‘submis10 sion date’ means the date on which the Congress receives 

11 the report submitted under section 801(a)(1). 

12 ‘‘(c) In the Senate, if the committee or committees 

13 to which a joint resolution described in subsection (a) has 

14 been referred have not reported it at the end of 15 session 

15 days after its introduction, such committee or committees 

16 shall be automatically discharged from further consider17 ation of the resolution and it shall be placed on the cal18 endar. A vote on final passage of the resolution shall be 

19 taken on or before the close of the 15th session day after 

20 the resolution is reported by the committee or committees 

21 to which it was referred, or after such committee or com22 mittees have been discharged from further consideration 

23 of the resolution. 

24 ‘‘(d)(1) In the Senate, when the committee or com25 mittees to which a joint resolution is referred have reVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 ported, or when a committee or committees are discharged 

2 (under subsection (c)) from further consideration of a 

3 joint resolution described in subsection (a), it is at any 

4 time thereafter in order (even though a previous motion 

5 to the same effect has been disagreed to) for a motion 

6 to proceed to the consideration of the joint resolution, and 

7 all points of order against the joint resolution (and against 

8 consideration of the joint resolution) are waived. The mo9 tion is not subject to amendment, or to a motion to post10 pone, or to a motion to proceed to the consideration of 

11 other business. A motion to reconsider the vote by which 

12 the motion is agreed to or disagreed to shall not be in 

13 order. If a motion to proceed to the consideration of the 

14 joint resolution is agreed to, the joint resolution shall re15 main the unfinished business of the Senate until disposed 

16 of. 

17 ‘‘(2) In the Senate, debate on the joint resolution, 

18 and on all debatable motions and appeals in connection 

19 therewith, shall be limited to not more than 2 hours, which 

20 shall be divided equally between those favoring and those 

21 opposing the joint resolution. A motion to further limit 

22 debate is in order and not debatable. It shall be in order 

23 to consider any amendment that provides for specific con24 ditions on which the approval of a particular rule included 

25 in the joint resolution is contingent. 


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1 ‘‘(3) In the Senate, immediately following the conclu2 sion of the debate on a joint resolution described in sub3 section (a), and a single quorum call at the conclusion of 

4 the debate if requested in accordance with the rules of the 

5 Senate, the vote on final passage of the joint resolution 

6 shall occur. 

7 ‘‘(4) Appeals from the decisions of the Chair relating 

8 to the application of the rules of the Senate to the proce9 dure relating to a joint resolution described in subsection 

10 (a) shall be decided without debate. 

11 ‘‘(e)(1) In the House of Representatives, if the com12 mittee or committees to which a joint resolution described 

13 in subsection (a) has been referred have not reported it 

14 at the end of 15 legislative days after its introduction, 

15 such committee or committees shall be automatically dis16 charged from further consideration of the resolution and 

17 it shall be placed on the appropriate calendar. A vote on 

18 final passage of the resolution shall be taken on or before 

19 the close of the 15th legislative day after the resolution 

20 is reported by the committee or committees to which it 

21 was referred, or after such committee or committees have 

22 been discharged from further consideration of the resolu23 tion. 

24 ‘‘(2)(A) A motion in the House of Representatives to 

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1 leged and not debatable. An amendment to the motion 

2 shall not be in order, nor shall it be in order to move to 

3 reconsider the vote by which the motion is agreed to or 

4 disagreed to. 

5 ‘‘(B) Debate in the House of Representatives on a 

6 resolution shall be limited to not more than two hours, 

7 which shall be divided equally between those favoring and 

8 those opposing the resolution. A motion to further limit 

9 debate shall not be debatable. Amendments to the resolu10 tion shall be in order. No motion to recommit the resolu11 tion shall be in order. It shall be in order to consider any 

12 amendment that provides for specific conditions on which 

13 the approval of a particular rule included in the joint reso14 lution is contingent. 

15 ‘‘(C) Motions to postpone, made in the House of Rep16 resentatives with respect to the consideration of a resolu17 tion, and motions to proceed to the consideration of other 

18 business, shall be decided without debate. 

19 ‘‘(D) All appeals from the decisions of the Chair re20 lating to the application of the Rules of the House of Rep21 resentatives to the procedure relating to a resolution shall 

22 be decided without debate. 

23 ‘‘(f) If, before the passage by one House of a joint 

24 resolution of that House described in subsection (a), that 

25 House receives from the other House a joint resolution 


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1 described in subsection (a), then the following procedures 

2 shall apply with respect to a joint resolution described in 

3 subsection (a) of the House receiving the joint resolu4 tion— 

5 ‘‘(1) the procedure in that House shall be the 

6 same as if no joint resolution had been received from 

7 the other House; but 

8 ‘‘(2) the vote on final passage shall be on the 

9 joint resolution of the other House. 

10 ‘‘(g) This section is enacted by Congress— 

11 ‘‘(1) as an exercise of the rulemaking power of 

12 the Senate and House of Representatives, respec13 tively, and as such it is deemed a part of the rules 

14 of each House, respectively, but applicable only with 

15 respect to the procedure to be followed in that 

16 House in the case of a joint resolution described in 

17 subsection (a), and it supersedes other rules only to 

18 the extent that it is inconsistent with such rules; and 

19 ‘‘(2) with full recognition of the constitutional 

20 right of either House to change the rules (so far as 

21 relating to the procedure of that House) at any time, 

22 in the same manner, and to the same extent as in 

23 the case of any other rule of that House. 

24 ‘‘§ 803. Definitions 

25 ‘‘For purposes of this chapter— 


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1 ‘‘(1) The term ‘Federal agency’ means any 

2 agency as that term is defined in section 551(1). 

3 ‘‘(2) The term ‘rule’ has the meaning given 

4 such term in section 551, except that such term does 

5 not include— 

6 ‘‘(A) any rule of particular applicability, 

7 including a rule that approves or prescribes for 

8 the future rates, wages, prices, services, or al9 lowances therefore, corporate or financial struc10 tures, reorganizations, mergers, or acquisitions 

11 thereof, or accounting practices or disclosures 

12 bearing on any of the foregoing; 

13 ‘‘(B) any rule relating to agency manage14 ment or personnel; or 

15 ‘‘(C) any rule of agency organization, pro16 cedure, or practice that does not substantially 

17 affect the rights or obligations of non-agency 

18 parties. 

19 ‘‘§ 804. Judicial review 

20 ‘‘(a) No determination, finding, action, or omission 

21 under this chapter shall be subject to judicial review. 

22 ‘‘(b) Notwithstanding subsection (a), a court may de23 termine whether a Federal agency has completed the nec24 essary requirements under this chapter for a rule to take 

25 effect. 


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1 ‘‘§ 805. Exemption for monetary policy 

2 ‘‘Nothing in this chapter shall apply to rules that con3 cern monetary policy proposed or implemented by the 

4 Board of Governors of the Federal Reserve System or the 

5 Federal Open Market Committee. 

6 ‘‘§ 806. Review of rules currently in effect 

7 ‘‘(a) ANNUAL REVIEW.—Beginning on the date that 

8 is 6 months after the date of enactment of this section 

9 and annually thereafter for the 9 years following, each 

10 agency shall designate not less than 10 percent of eligible 

11 rules made by that agency for review, and shall submit 

12 a report including each such eligible rule in the same man13 ner as a report under section 801(a)(1). Section 801 and 

14 section 802 shall apply to each such rule, subject to sub15 section (c) of this section. No eligible rule previously des16 ignated may be designated again. 

17 ‘‘(b) SUNSET FOR ELIGIBLE RULES NOT EX18 TENDED.—Beginning after the date that is 10 years after 

19 the date of enactment of this section, if Congress has not 

20 enacted a joint resolution of approval for that eligible rule, 

21 that eligible rule shall not continue in effect. 

22 ‘‘(c) CONSOLIDATION; SEVERABILITY.—In applying 

23 sections 801 and 802 to eligible rules under this section, 

24 the following shall apply: 

25 ‘‘(1) The words ‘take effect’ shall be read as 

26 ‘continue in effect’. 


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1 ‘‘(2) Except as provided in paragraph (3), a 

2 single joint resolution of approval shall apply to all 

3 eligible rules in a report designated for a year, and 

4 the matter after the resolving clause of that joint 

5 resolution is as follows: ‘That Congress approves the 

6 rules submitted by the ll for the year ll.’ (The 

7 blank spaces being appropriately filled in). 

8 ‘‘(3) It shall be in order to consider any amend9 ment that provides for specific conditions on which 

10 the approval of a particular eligible rule included in 

11 the joint resolution is contingent. 

12 ‘‘(4) A member of either House may move that 

13 a separate joint resolution be required for a specified 

14 rule. 

15 ‘‘(d) DEFINITION.—In this section, the term ‘eligible 

16 rule’ means a rule that is in effect as of the date of enact17 ment of this section. 

18 ‘‘§ 807. Sunset for rules 

19 ‘‘(a) EXPIRATION OF RULE.— 

20 ‘‘(1) IN GENERAL.—Except as provided in this 

21 section, each rule made by an agency shall cease to 

22 have effect— 

23 ‘‘(A) beginning on the date that is 10 

24 years after the date of enactment of a joint res25 olution of approval with regard to the rule; or 


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1 ‘‘(B) if a joint resolution of extension de2 scribed in subsection (d) has been enacted with 

3 regard to the rule, beginning on the date that 

4 is 10 years after the date of enactment of the 

5 most recently enacted such joint resolution. 

6 ‘‘(2) REISSUANCE OF THE RULE PROHIB7 ITED.—The rule may not be reissued in substan8 tially the same form, and a new rule that is substan9 tially the same as such a rule may not be issued, un10 less the reissued or new rule is specifically author11 ized by a law enacted after the date described in this 

12 subsection (a). 

13 ‘‘(b) REPORT BY AGENCY.—Not later than 180 days 

14 before the date described in subsection (a), the agency 

15 shall submit a report similar to the report described in 

16 section 801(a)(1)(A) to each House of Congress and to 

17 the Comptroller General, except that instead of the pro18 posed effective date, such report shall contain the date de19 scribed in subsection (a). 

20 ‘‘(c) EXEMPTION BY PRESIDENT.—The President 

21 may by Executive order exempt a rule from the application 

22 of subsection (a) for a period of not more than 10 years 

23 if the President determines, and submits to Congress writ24 ten notice of such determination, that such rule is— 


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1 ‘‘(1) necessary because of an imminent threat 

2 to health or safety or other emergency; 

3 ‘‘(2) necessary for the enforcement of criminal 

4 laws; 

5 ‘‘(3) necessary for national security; or 

6 ‘‘(4) issued pursuant to any statute imple7 menting an international trade agreement. 

8 ‘‘(d) JOINT RESOLUTION OF EXTENSION.— 

9 ‘‘(1) JOINT RESOLUTION DESCRIBED.—For 

10 purposes of this section, the term ‘joint resolution’ 

11 means only a joint resolution introduced on or after 

12 the date on which the report referred to subsection 

13 (b) is received by Congress (excluding days either 

14 House of Congress is adjourned for more than 3 

15 days during a session of Congress), the matter after 

16 the resolving clause of which is as follows: ‘That 

17 Congress extends the rule submitted by the l l 

18 relating to l l.’ (The blank spaces being appro19 priately filled in). The following shall apply to such 

20 a joint resolution: 

21 ‘‘(A) In the House, the majority leader of 

22 the House of Representatives (or his designee) 

23 and the minority leader of the House of Rep24 resentatives (or his designee) shall introduce 

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1 islative days after Congress receives the report 

2 submitted under subsection (b). 

3 ‘‘(B) In the Senate, the majority leader of 

4 the Senate (or his designee) and the minority 

5 leader of the Senate (or his designee) shall in6 troduce such joint resolution described in sub7 section (a) (by request), within 3 session days 

8 after Congress receives the report submitted 

9 under subsection (b). 

10 ‘‘(2) CONSIDERATION OF JOINT RESOLUTION.— 

11 Subsections (b) through (g) of section 802 shall 

12 apply to a joint resolution described in paragraph 

13 (1) of this subsection in the same manner as a joint 

14 resolution described in subsection (a) of section 802, 

15 except that for purposes of that subsection, the term 

16 ‘submission date’ means the date on which the Con17 gress receives the report submitted under subsection 

18 (b).’’. 

19 TITLE XVIII—ILLEGAL 

20 DEDUCTION ELIMINATION 

21 SEC. 1801. SHORT TITLE. 

22 This title may be cited as— 

23 (1) the ‘‘IDEA Act’’; or 

24 (2) the ‘‘Illegal Deduction Elimination Act’’. 


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1 SEC. 1802. CLARIFICATION THAT WAGES PAID TO UNAU2 THORIZED ALIENS MAY NOT BE DEDUCTED 

3 FROM GROSS INCOME. 

4 (a) IN GENERAL.—Subsection (c) of section 162 of 

5 the Internal Revenue Code of 1986 (relating to illegal 

6 bribes, kickbacks, and other payments) is amended by 

7 adding at the end the following new paragraph: 

8 ‘‘(4) WAGES PAID TO OR ON BEHALF OF UNAU9 THORIZED ALIENS.— 

10 ‘‘(A) IN GENERAL.—No deduction shall be 

11 allowed under subsection (a) for any wage paid 

12 to or on behalf of an unauthorized alien, as de13 fined under section 274A(h)(3) of the Immigra14 tion and Nationality Act (8 U.S.C. 

15 1324a(h)(3)). 

16 ‘‘(B) WAGES.—For the purposes of this 

17 paragraph, the term ‘wages’ means all remu18 neration for employment, including the cash 

19 value of all remuneration (including benefits) 

20 paid in any medium other than cash. 

21 ‘‘(C) SAFE HARBOR.—If a person or other 

22 entity is participating in the E–Verify Program 

23 described in section 403(a) of the Illegal Immi24 gration Reform and Immigrant Responsibility 

25 Act of 1996 (8 U.S.C. 1324a note) and obtains 

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1 bility in compliance with the terms and condi2 tions of the program with respect to the hiring 

3 (or recruitment or referral) of an employee, 

4 subparagraph (A) shall not apply with respect 

5 to wages paid to such employee. 

6 ‘‘(D) BURDEN OF PROOF.—In the case of 

7 any examination of a return in connection with 

8 a deduction under this section by reason of this 

9 paragraph, the Secretary shall bear the burden 

10 of proving that wages were paid to or on behalf 

11 of an unauthorized alien. 

12 ‘‘(E) LIMITATION ON TAXPAYER AUDIT.— 

13 The Secretary may not commence an audit or 

14 other investigation of a taxpayer solely on the 

15 basis of a deduction taken under this section by 

16 reason of this paragraph.’’. 

17 (b) SIX-YEAR LIMITATION ON ASSESSMENT AND

18 COLLECTION.—Subsection (c) of section 6501 of the In19 ternal Revenue Code of 1986 (relating to exceptions) is 

20 amended by adding at the end the following new para21 graph: 

22 ‘‘(12) DEDUCTION CLAIMED FOR WAGES PAID

23 TO UNAUTHORIZED ALIENS.—In the case of a return 

24 of tax on which a deduction is shown in violation of 

25 section 162(c)(4), any tax under chapter 1 may be 


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1 assessed, or a proceeding in court for the collection 

2 of such tax may be begun without assessment, at 

3 any time within 6 years after the return was filed.’’. 

4 (c) USE OF DOCUMENTATION FOR ENFORCEMENT

5 PURPOSES.—Section 274A of the Immigration and Na6 tionality Act (8 U.S.C. 1324a) is amended— 

7 (1) in subparagraph (b)(5), by inserting ‘‘, sec8 tion 162(c)(4) of the Internal Revenue Code of 

9 1986,’’ after ‘‘enforcement of this Act’’; 

10 (2) in subparagraph (d)(2)(F), by inserting ‘‘, 

11 section 162(c)(4) of the Internal Revenue Code of 

12 1986,’’ after ‘‘enforcement of this Act’’; and 

13 (3) in subparagraph (d)(2)(G), by inserting 

14 ‘‘section 162(c)(4) of the Internal Revenue Code of 

15 1986 or’’ after ‘‘or enforcement of’’. 

16 (d) AVAILABILITY OF INFORMATION.— 

17 (1) IN GENERAL.—The Commissioner of Social 

18 Security, the Secretary of the Department of Home19 land Security, and the Secretary of the Treasury, 

20 shall jointly establish a program to share informa21 tion among such agencies that may or could lead to 

22 the identification of unauthorized aliens (as defined 

23 under section 274A(h)(3) of the Immigration and 

24 Nationality Act), including any no-match letter, any 

25 information in the earnings suspense file, and any 


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1 information in the investigation and enforcement of 

2 section 162(c)(4) of the Internal Revenue Code of 

3 1986. 

4 (2) DISCLOSURE BY SECRETARY OF THE

5 TREASURY.— 

6 (A) IN GENERAL.—Subsection (i) of sec7 tion 6103 of the Internal Revenue Code of 1986 

8 is amended by adding at the end the following 

9 new paragraph: 

10 ‘‘(9) PAYMENT OF WAGES TO UNAUTHORIZED

11 ALIENS.—Upon request from the Commissioner of 

12 the Social Security Administration or the Secretary 

13 of the Department of Homeland Security, the Sec14 retary shall disclose to officers and employees of 

15 such Administration or Department— 

16 ‘‘(A) taxpayer identity information of em17 ployers who paid wages with respect to which a 

18 deduction was not allowed by reason of section 

19 162(c)(4), and 

20 ‘‘(B) taxpayer identity information of indi21 viduals to whom such wages were paid, 

22 for purposes of carrying out any enforcement activi23 ties of such Administration or Department with re24 spect to such employers or individuals.’’. 


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1 (B) RECORDKEEPING.—Paragraph (4) of 

2 section 6103(p) of such Code is amended— 

3 (i) by striking ‘‘(5), or (7)’’ in the 

4 matter preceding subparagraph (A) and in5 serting ‘‘(5), (7), or (9)’’, and 

6 (ii) by striking ‘‘(5) or (7)’’ in sub7 paragraph (F)(ii) and inserting ‘‘(5), (7), 

8 or (9)’’. 

9 (e) EFFECTIVE DATE.— 

10 (1) Except as provided in paragraph (2), this 

11 title and the amendments made by this title shall 

12 take effect on the date of the enactment of this Act. 

13 (2) The amendments made by subsections (a) 

14 and (b) shall apply to taxable years beginning after 

15 December 31, 2018. 

16 SEC. 1803. MODIFICATION OF E–VERIFY PROGRAM. 

17 (a) MAKING PERMANENT.—Subsection (b) of section 

18 401 of the Illegal Immigration Reform and Immigrant Re19 sponsibility Act of 1996 (8 U.S.C. 1324a note) is amended 

20 by striking the last sentence. 

21 (b) APPLICATION TO CURRENT EMPLOYEES.— 

22 (1) VOLUNTARY ELECTION.—The first sentence 

23 of section 402(a) of such Act is amended to read as 

24 follows: ‘‘Any person or other entity that conducts 

25 any hiring (or recruitment or referral) in a State or 


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1 employs any individuals in a State may elect to par2 ticipate in the E–Verify Program.’’. 

3 (2) BENEFIT OF REBUTTABLE PRESUMP4 TION.—Paragraph (1) of section 402(b) of such Act 

5 is amended by adding at the end the following: ‘‘If 

6 a person or other entity is participating in the E– 

7 Verify Program and obtains confirmation of identity 

8 and employment eligibility in compliance with the 

9 terms and conditions of the program with respect to 

10 individuals employed by the person or entity, the 

11 person or entity has established a rebuttable pre12 sumption that the person or entity has not violated 

13 section 274A(a)(2) with respect to such individ14 uals.’’. 

15 (3) SCOPE OF ELECTION.—Subparagraph (A) 

16 of section 402(c)(2) of such Act is amended to read 

17 as follows: 

18 ‘‘(A) IN GENERAL.—Any electing person or 

19 other entity may provide that the election under 

20 subsection (a) shall apply (during the period in 

21 which the election is in effect)— 

22 ‘‘(i) to all its hiring (and all recruit23 ment or referral); 


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1 ‘‘(ii) to all its hiring (and all recruit2 ment or referral and all individuals em3 ployed by the person or entity); 

4 ‘‘(iii) to all its hiring (and all recruit5 ment or referral) in one or more States or 

6 one or more places of hiring (or recruit7 ment or referral, as the case may be); or 

8 ‘‘(iv) to all its hiring (and all recruit9 ment or referral and all individuals em10 ployed by the person or entity) in one or 

11 more States or one or more place of hiring 

12 (or recruitment or referral or employment, 

13 as the case may be).’’. 

14 (4) PROCEDURES FOR PARTICIPANTS IN E– 

15 VERIFY PROGRAM.—Subsection (a) of section 403 of 

16 such Act is amended— 

17 (A) in the matter preceding paragraph (1), 

18 by inserting ‘‘or continued employment in the 

19 United States’’ after ‘‘United States’’; and 

20 (B) in paragraph (3)— 

21 (i) in subparagraph (A), by striking 

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1 ies made pursuant to a hiring, recruitment 

2 or referral (and not of previously hired in3 dividuals).’’; and 

4 (ii) in subparagraph (B), by striking 

5 ‘‘such 3 working days’’ and inserting ‘‘the 

6 specified period’’. 

7 (c) APPLICATION TO JOB APPLICANTS.—Section 

8 402(c)(2) of such Act is amended by adding at the end 

9 the following: 

10 ‘‘(C) JOB OFFER MAY BE MADE CONDI11 TIONAL ON FINAL CONFIRMATION BY E– 

12 VERIFY.—A person or other entity that elects to 

13 participate in the E–Verify Program may offer 

14 a prospective employee an employment position 

15 conditioned on final verification of the identity 

16 and employment eligibility of the employee 

17 using the employment eligibility confirmation 

18 system established under section 404.’’. 

19 TITLE XIX—ENGLISH LANGUAGE 

20 UNITY 

21 SEC. 1901. SHORT TITLE. 

22 This title may be cited as the ‘‘English Language 

23 Unity Act of 2020’’. 

24 SEC. 1902. FINDINGS. 

25 The Congress finds and declares the following: 


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1 (1) The United States is composed of individ2 uals from diverse ethnic, cultural, and linguistic 

3 backgrounds, and continues to benefit from this rich 

4 diversity. 

5 (2) Throughout the history of the United 

6 States, the common thread binding individuals of 

7 differing backgrounds has been the English lan8 guage. 

9 (3) Among the powers reserved to the States 

10 respectively is the power to establish the English 

11 language as the official language of the respective 

12 States, and otherwise to promote the English lan13 guage within the respective States, subject to the 

14 prohibitions enumerated in the Constitution of the 

15 United States and in laws of the respective States. 

16 SEC. 1903. ENGLISH AS OFFICIAL LANGUAGE OF THE 

17 UNITED STATES. 

18 (a) IN GENERAL.—Title 4, United States Code, is 

19 amended by adding at the end the following new chapter: 

20 ‘‘CHAPTER 6—OFFICIAL LANGUAGE 

21 ‘‘§ 161. Official language of the United States 

22 ‘‘The official language of the United States is 

23 English. 


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1 ‘‘§ 162. Preserving and enhancing the role of the offi2 cial language 

3 ‘‘Representatives of the Federal Government shall 

4 have an affirmative obligation to preserve and enhance the 

5 role of English as the official language of the Federal Gov6 ernment. Such obligation shall include encouraging great7 er opportunities for individuals to learn the English lan8 guage. 

9 ‘‘§ 163. Official functions of Government to be con10 ducted in English 

11 ‘‘(a) OFFICIAL FUNCTIONS.—The official functions 

12 of the Government of the United States shall be conducted 

13 in English. 

14 ‘‘(b) SCOPE.—For the purposes of this section, the 

15 term ‘United States’ means the several States and the 

16 District of Columbia, and the term ‘official’ refers to any 

17 function that (i) binds the Government, (ii) is required 

18 by law, or (iii) is otherwise subject to scrutiny by either 

19 the press or the public. 

20 ‘‘(c) PRACTICAL EFFECT.—This section shall apply 

21 to all laws, public proceedings, regulations, publications, 

22 orders, actions, programs, and policies, but does not apply 

23 to— 

24 ‘‘(1) teaching of languages; 

25 ‘‘(2) requirements under the Individuals with 

26 Disabilities Education Act; 


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1 ‘‘(3) actions, documents, or policies necessary 

2 for national security, international relations, trade, 

3 tourism, or commerce; 

4 ‘‘(4) actions or documents that protect the pub5 lic health and safety; 

6 ‘‘(5) actions or documents that facilitate the ac7 tivities of the Bureau of the Census in compiling any 

8 census of population; 

9 ‘‘(6) actions that protect the rights of victims of 

10 crimes or criminal defendants; or 

11 ‘‘(7) using terms of art or phrases from lan12 guages other than English. 

13 ‘‘§ 164. Uniform English language rule for naturaliza14 tion 

15 ‘‘(a) UNIFORM LANGUAGE TESTING STANDARD.—All 

16 citizens should be able to read and understand generally 

17 the English language text of the Declaration of Independ18 ence, the Constitution, and the laws of the United States 

19 made in pursuance of the Constitution. 

20 ‘‘(b) CEREMONIES.—All naturalization ceremonies 

21 shall be conducted in English. 

22 ‘‘§ 165. Rules of construction 

23 ‘‘Nothing in this chapter shall be construed— 

24 ‘‘(1) to prohibit a Member of Congress or any 

25 officer or agent of the Federal Government, while 


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1 performing official functions, from communicating 

2 unofficially through any medium with another per3 son in a language other than English (as long as of4 ficial functions are performed in English); 

5 ‘‘(2) to limit the preservation or use of Native 

6 Alaskan or Native American languages (as defined 

7 in the Native American Languages Act); 

8 ‘‘(3) to disparage any language or to discourage 

9 any person from learning or using a language; or 

10 ‘‘(4) to be inconsistent with the Constitution of 

11 the United States. 

12 ‘‘§ 166. Standing 

13 ‘‘A person injured by a violation of this chapter may 

14 in a civil action (including an action under chapter 151 

15 of title 28) obtain appropriate relief.’’. 

16 (b) CLERICAL AMENDMENT.—The table of chapters 

17 at the beginning of title 4, United States Code, is amended 

18 by inserting after the item relating to chapter 5 the fol19 lowing new item: 

‘‘CHAPTER 6. OFFICIAL LANGUAGE’’. 

20 SEC. 1904. GENERAL RULES OF CONSTRUCTION FOR 

21 ENGLISH LANGUAGE TEXTS OF THE LAWS OF 

22 THE UNITED STATES. 

23 (a) IN GENERAL.—Chapter 1 of title 1, United 

24 States Code, is amended by adding at the end the fol25 lowing new section: 


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1 ‘‘§ 9. General rules of construction for laws of the 

2 United States 

3 ‘‘(a) English language requirements and workplace 

4 policies, whether in the public or private sector, shall be 

5 presumptively consistent with the laws of the United 

6 States. 

7 ‘‘(b) Any ambiguity in the English language text of 

8 the laws of the United States shall be resolved, in accord9 ance with the last two articles of the Bill of Rights, not 

10 to deny or disparage rights retained by the people, and 

11 to reserve powers to the States respectively, or to the peo12 ple.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 at the beginning of chapter 1 of title 1 is amended by 

15 inserting after the item relating to section 8 the following 

16 new item: 

‘‘9. General rules of construction for laws of the United States.’’. 

17 SEC. 1905. IMPLEMENTING REGULATIONS. 

18 The Secretary of Homeland Security shall, within 

19 180 days after the date of enactment of this Act, issue 

20 for public notice and comment a proposed rule for uniform 

21 testing of English language ability of candidates for natu22 ralization, based upon the principles that— 

23 (1) all citizens should be able to read and un24 derstand generally the English language text of the 

25 Declaration of Independence, the Constitution, and 


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1 the laws of the United States which are made in 

2 pursuance thereof; and 

3 (2) any exceptions to this standard should be 

4 limited to extraordinary circumstances, such as asy5 lum. 

6 SEC. 1906. EFFECTIVE DATE. 

7 The amendments made by sections 1903 and 1904 

8 shall take effect on the date that is 180 days after the 

9 date of the enactment of this Act. 

10 TITLE XX—DAVIS-BACON 

11 REPEAL 

12 SEC. 2001. SHORT TITLE. 

13 This title may be cited as the ‘‘Davis-Bacon Repeal 

14 Act’’. 

15 SEC. 2002. REPEAL OF DAVIS-BACON WAGE REQUIRE16 MENTS. 

17 (a) IN GENERAL.—Subchapter IV of chapter 31 of 

18 title 40, United States Code, is repealed. 

19 (b) REFERENCE.—Any reference in any law to a 

20 wage requirement of subchapter IV of chapter 31 of title 

21 40, United States Code, shall after the date of the enact22 ment of this Act be null and void. 

23 SEC. 2003. EFFECTIVE DATE AND LIMITATION. 

24 The amendment made by section 2002 shall take ef25 fect 30 days after the date of the enactment of this Act 


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1 but shall not affect any contract in existence on such date 

2 of enactment or made pursuant to invitation for bids out3 standing on such date of enactment. 

4 TITLE XXI—CENSUS ACCURACY 

5 SEC. 2101. SHORT TITLE. 

6 This title may be cited as the ‘‘Census Accuracy Act 

7 of 2020’’. 

8 SEC. 2102. CITIZENSHIP OR LAWFUL PRESENCE STATUS ON 

9 CENSUS QUESTIONNAIRES. 

10 Section 141 of title 13, United States Code, is 

11 amended— 

12 (1) by redesignating subsection (g) as sub13 section (h); and 

14 (2) by inserting after subsection (f) the fol15 lowing: 

16 ‘‘(g) In conducting the 2020 decennial census and 

17 each decennial census thereafter, the Secretary shall in18 clude in any questionnaire distributed or otherwise used 

19 for the purpose of determining the total population by 

20 States— 

21 ‘‘(1) a checkbox or other similar option for re22 spondents to indicate whether the respondent is a 

23 citizen or national of the United States, is lawfully 

24 admitted for permanent residence in the United 


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1 State, is an alien who otherwise has lawful status 

2 under the immigration laws, or none of these; and 

3 ‘‘(2) in connection with the option relating to 

4 status under the immigration laws, a question re5 garding which Federal program or provision of law 

6 accorded the respondent such status.’’. 

7 TITLE XXII—TRUTH IN 

8 EMPLOYMENT 

9 SEC. 2201. SHORT TITLE. 

10 This title may be cited as the ‘‘Truth in Employment 

11 Act of 2020’’. 

12 SEC. 2202. FINDINGS AND PURPOSE. 

13 (a) FINDINGS.—Congress finds the following: 

14 (1) An atmosphere of trust and civility in labor15 management relationships is essential to a produc16 tive workplace and a healthy economy. 

17 (2) The tactic of using professional union orga18 nizers and agents to infiltrate a targeted employer’s 

19 workplace, a practice commonly referred to as ‘‘salt20 ing’’ has evolved into an aggressive form of harass21 ment not contemplated when the National Labor Re22 lations Act was enacted and threatens the balance of 

23 rights which is fundamental to collective bargaining. 

24 (3) Increasingly, union organizers are seeking 

25 employment with nonunion employers not because of 


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1 a desire to work for such employers but primarily to 

2 organize the employees of such employers or to in3 flict economic harm specifically designed to put non4 union competitors out of business, or to do both. 

5 (4) While no employer may discriminate against 

6 employees based upon the views of employees con7 cerning collective bargaining, an employer should 

8 have the right to expect job applicants to be pri9 marily interested in utilizing the skills of the appli10 cants to further the goals of the business of the em11 ployer. 

12 (b) PURPOSES.—The purposes of this title are— 

13 (1) to preserve the balance of rights between 

14 employers, employees, and labor organizations which 

15 is fundamental to collective bargaining; 

16 (2) to preserve the rights of workers to orga17 nize, or otherwise engage in concerted activities pro18 tected under the National Labor Relations Act; and 

19 (3) to alleviate pressure on employers to hire 

20 individuals who seek or gain employment in order to 

21 disrupt the workplace of the employer or otherwise 

22 inflict economic harm designed to put the employer 

23 out of business. 


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1 SEC. 2203. PROTECTION OF EMPLOYER RIGHTS. 

2 Section 8(a) of the National Labor Relations Act (29 

3 U.S.C. 158(a)) is amended by adding after and below 

4 paragraph (5) the following: 

5 ‘‘Nothing in this subsection shall be construed as requir6 ing an employer to employ any person who seeks or has 

7 sought employment with the employer in furtherance of 

8 other employment or agency status.’’. 

9 TITLE XXIII—E-BONDING FOR 

10 IMMIGRATION INTEGRITY 

11 SEC. 2301. SHORT TITLE. 

12 This title may be cited as the ‘‘E-bonding for Immi13 gration Integrity Act of 2020’’. 

14 SEC. 2302. REQUIREMENT OF BOND. 

15 (a) BOND REQUIRED.—Prior to arriving at a port of 

16 entry of the United States, an alien seeking admission to 

17 the United States shall post a bond, in accordance with 

18 subsection (d), in an amount determined by the Secretary 

19 if such alien seeks admission to the United States as a 

20 nonimmigrant in a category— 

21 (1) described under subparagraph (B), (F), 

22 (H)(i)(b), (H)(ii)(b), or (K) of section 101(a)(15) of 

23 the Immigration and Nationality Act (8 U.S.C. 

24 1101(a)(15)); or 


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1 (2) identified by the Secretary, in accordance 

2 with section 2303, to have a visa overstay rate that 

3 is more than 1.5 percent. 

4 (b) AMOUNT OF BOND.—Not later than 1 year after 

5 the date of the enactment of this section, the Secretary 

6 shall, by rule, establish the amount of the bond required 

7 by subsection (a) for each visa category under subsection 

8 (a)(1) and each visa category identified by the Secretary 

9 under section 2303, which amount shall— 

10 (1) be not less than $2,500 and not more than 

11 $10,000; and 

12 (2) be determined based on the Secretary’s as13 sessment of the level of risk of visa overstays for 

14 that category. 

15 (c) ADJUSTMENT OF AMOUNT OF BOND.—On an an16 nual basis, the Secretary shall review, and, as appropriate, 

17 adjust the amounts of the bonds described in subsection 

18 (b). 

19 (d) PAYMENT OF BOND.—An alien required to post 

20 the bond under subsection (a) shall post such bond— 

21 (1) in electronic form; and 

22 (2) with a bonding agent designated by the Sec23 retary as qualified to hold such bond. 

24 (e) RELEASE OF BOND.—The Secretary shall author25 ize a bonding agent to release a bond— 


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1 (1) to an alien required to post such bond— 

2 (A) after receiving a notification from the 

3 United States embassy or consulate in the 

4 alien’s country of origin that such alien de5 parted the United States and returned to such 

6 country of origin; or 

7 (B) if such alien changed or adjusted their 

8 status to an immigration status not required to 

9 post a bond under this section; and 

10 (2) to the E-bond Enforcement Fund under 

11 section 2304 upon a determination by the Secretary 

12 that an alien— 

13 (A) overstayed their visa; or 

14 (B) did not return to their country of ori15 gin following the termination of their visa. 

16 (f) CHANGE OF STATUS.—An alien who has been ad17 mitted to the United States and who is required to post 

18 a bond under subsection (a) may be required to post an 

19 additional bond if such alien changes their status to that 

20 of a nonimmigrant in a category required to pay a higher 

21 bond under this section. 

22 (g) COLLECTION OF RECORDS RELATING TO

23 BONDS.—The United States Embassy or United States 

24 consular office in the alien’s country of origin shall collect 

25 any records necessary to carry out this section. 


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1 (h) EFFECTIVE DATE.—This section shall take effect 

2 on the date that is 120 calendar days after the date of 

3 the enactment of this Act. 

4 SEC. 2303. VISA OVERSTAY RATE CATEGORIES. 

5 The Secretary shall identify— 

6 (1) the visa overstay rate for each category of 

7 nonimmigrant aliens described under section 

8 101(a)(15) of the Immigration and Nationality Act 

9 (8 U.S.C. 1101(a)(15)) in the previous year; and 

10 (2) each category of nonimmigrant aliens de11 scribed under such section that had a visa overstay 

12 rate in the previous year that was more than 1.5 

13 percent. 

14 SEC. 2304. E-BOND ENFORCEMENT FUND. 

15 (a) IN GENERAL.—There is established in the general 

16 fund of the Treasury a separate account, which shall be 

17 known as the ‘‘E-bond Enforcement Fund’’ (in this sub18 section referred to as the ‘‘Fund’’). 

19 (b) DEPOSITS.—There shall be deposited as offset20 ting receipts into the Fund all amounts released under 

21 section 2302(e)(2) of this title. 

22 (c) USE OF AMOUNTS.—Amounts deposited into the 

23 Fund shall remain available until expended and shall be 

24 refunded out of the Fund by the Secretary of the Treas25 ury, to the Secretary of Homeland Security to— 


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1 (1) ensure compliance with this title; and 

2 (2) administer enforcement programs. 

3 SEC. 2305. REPORT. 

4 Not later than 120 days after the date of the enact5 ment of this Act, and each year thereafter, the Secretary 

6 shall submit to the committees of appropriate jurisdiction 

7 a report that includes— 

8 (1) the visa overstay rate for each category of 

9 nonimmigrant alien described under section 

10 101(a)(15) of the Immigration and Nationality Act 

11 (8 U.S.C. 1101(a)(15)) in the previous year; 

12 (2) the categories that had a visa overstay rate 

13 in the previous year that was more than 1.5 percent, 

14 as determined by the Secretary in accordance with 

15 section 2303; 

16 (3) the amounts of the bonds, as determined by 

17 the Secretary in accordance with section 2302; 

18 (4) information relating to the Fund under sec19 tion 2304; and 

20 (5) any other information determined appro21 priate by the Secretary. 

22 SEC. 2306. DEFINITIONS. 

23 In this title: 


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1 (1) COMMITTEES OF APPROPRIATE JURISDIC2 TION.—The term ‘‘committees of appropriate juris3 diction’’ means— 

4 (A) the Committee on the Judiciary of the 

5 House of Representatives; 

6 (B) the Committee on the Judiciary of the 

7 Senate; 

8 (C) the Committee on Homeland Security 

9 of the House of Representatives; and 

10 (D) the Committee on Homeland Security 

11 and Governmental Affairs of the Senate. 

12 (2) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Homeland Security, unless other14 wise provided. 

15 (3) VISA OVERSTAY RATE.—The term ‘‘visa 

16 overstay rate’’ means the ratio of, for each category 

17 of nonimmigrant aliens described in section 

18 101(a)(15) of the Immigration and Nationality Act 

19 (8 U.S.C. 1101 (a)(15))— 

20 (A) the number of aliens admitted to the 

21 United States for each such category whose pe22 riod of authorized stays ended during a fiscal 

23 year but who remained unlawfully in the United 

24 States beyond such period; to 


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1 (B) the total number of aliens admitted to 

2 the United States for each such category during 

3 that fiscal year. 

4 TITLE XXIV—RESTORING MAX5 IMUM MOBILITY TO OUR NA6 TION’S VETERANS 

7 SEC. 2401. SHORT TITLE. 

8 This title may be cited as the ‘‘Restoring Maximum 

9 Mobility to Our Nation’s Veterans Act of 2020’’. 

10 SEC. 2402. WHEELCHAIRS FOR VETERANS WITH SERVICE11 CONNECTED DISABILITIES. 

12 (a) DEFINITION.—Section 1701 of title 38, United 

13 States Code, is amended by adding at the end the fol14 lowing new paragraph: 

15 ‘‘(11) The term ‘wheelchair’ includes enhanced power 

16 wheelchairs, multi-environmental wheelchairs, track wheel17 chairs, stair-climbing wheelchairs, and other power-driven 

18 mobility devices.’’. 

19 (b) ENHANCED WHEELCHAIRS.—Section 1712(c) of 

20 title 38, United States Code, is amended— 

21 (1) by striking ‘‘Dental’’ and inserting ‘‘(1) 

22 Dental’’; 

23 (2) by striking ‘‘section’’ and inserting ‘‘title’’; 

24 and 


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1 (3) by adding at the end the following new 

2 paragraph: 

3 ‘‘(2) The Secretary shall ensure that each wheelchair, 

4 furnished under this title to a veteran because of a service5 connected disability, restores the maximum achievable mo6 bility and function in the activities of daily life, employ7 ment, and recreation. The Secretary may furnish a wheel8 chair to a veteran because the wheelchair restores an abil9 ity that relates exclusively to participation in a rec10 reational activity.’’. 

11 TITLE XXV—END SANCTUARIES 

12 AND HELP OUR AMERICAN 

13 HOMELESS AND VETERANS 

14 SEC. 2501. SHORT TITLE. 

15 This title may be cited as— 

16 (1) the ‘‘End Sanctuaries and Help Our Amer17 ican Homeless and Veterans Act’’; or 

18 (2) the ‘‘Diamond and Silk Act’’. 

19 SEC. 2502. FINDINGS. 

20 The Congress finds as follows: 

21 (1) According to United States law, found at 

22 section 274 of the Immigration and Nationality Act 

23 (8 U.S.C. 1324), it is illegal to bring or harbor ille24 gal immigrants in our Nation. 


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1 (2) In contravention of this law, cities, counties, 

2 parishes, other political subdivisions, and States in 

3 our Nation have adopted policies specifically oriented 

4 to bring in, harbor, and even attract illegal aliens 

5 into their jurisdictions. 

6 (3) Although the Federal Government, and spe7 cifically the Congress of the United States, is con8 stitutionally charged with establishing ‘‘an uniform 

9 Rule of Naturalization’’, in certain cases States and 

10 political subdivisions, including cities, have been as11 suming the role of immigration authorities, clearly in 

12 violation of both the Constitution and Federal stat13 ute. 

14 (4) Historically, the Federal Government has 

15 proven lackadaisical about enforcing its sole jurisdic16 tion in the serious matter of illegal immigration and 

17 taking action against those jurisdictions that know18 ingly or recklessly disregard the Rule of Law to con19 ceal, harbor, attempt to, or actually shield from de20 tection, such illegal aliens, or that prohibit their offi21 cers from gathering information for, or cooperating 

22 with, Federal officials. 

23 (5) In these wanton acts, such jurisdictions 

24 break the law that its citizens are held to, violate the 

25 trust of the taxpayers who are already charged with 


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1 a $22 trillion dollar Government debt that grows 

2 daily, and—perhaps worst—subject those they 

3 should protect and serve to death by deliberate mur4 derous acts and traffic accidents by those who 

5 should not be in the country at all. 

6 (6) In this way, such jurisdictions aid and abet 

7 American deaths that are 100 percent preventable. 

8 (7) Such tragic, preventable American deaths 

9 have been suffered by ‘‘Angel Families’’ who have 

10 lost spouses, sons, daughters, grandchildren, par11 ents, and grandparents at the hands of illegal aliens. 

12 (8) These families are left to suffer deaths that 

13 should not have been, according to the law of the 

14 land, while too often complicit public officials, cities, 

15 States, and the Federal Government are not held ac16 countable. 

17 (9) Meanwhile, our Nation’s American homeless 

18 and veterans are too often left out in the cold, with19 out the basic necessities and care that they need and 

20 deserve as citizens of this country. 

21 (10) Our American homeless and veterans must 

22 be prioritized and cared for by law and in fact. 

23 (11) Jurisdictions’ responsibilities must be 

24 taken seriously, and never aid and abet, violations of 

25 immigration law. 


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1 (12) These are dual injustices that the law, as 

2 is, dictates must end. 

3 SEC. 2503. TREATMENT OF SANCTUARY JURISDICTIONS. 

4 (a) DEFINITION.—In this section, the term ‘‘sanc5 tuary jurisdiction’’ means a State or any political subdivi6 sion of a State that the Attorney General determines has 

7 in effect a statute, ordinance, policy, or practice that pro8 hibits or in any way restricts, a Federal, State, or local 

9 government entity, official, or other personnel from— 

10 (1) complying with the immigration laws (as de11 fined in section 101(a)(17) of the Immigration and 

12 Nationality Act (8 U.S.C. 1101(a)(17))), or from as13 sisting or cooperating with Federal law enforcement 

14 entities, officials, or other personnel regarding the 

15 enforcement of these laws; or 

16 (2) undertaking any of the following law en17 forcement activities as they relate to information re18 garding the citizenship or immigration status, lawful 

19 or unlawful, the inadmissibility or deportability, or 

20 the custody status, of any individual: 

21 (A) Making inquiries to any individual in 

22 order to obtain such information regarding such 

23 individual or any other individuals. 

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1 countered by law enforcement officials or other 

2 personnel of a State or political subdivision of 

3 a State. 

4 (C) Complying with requests for such in5 formation from Federal law enforcement enti6 ties, officials, or other personnel. 

7 (D) Complying with detainers. 

8 (b) INELIGIBILITY OF SANCTUARY JURISDICTIONS

9 FOR FEDERAL FUNDS.— 

10 (1) STATES.—No sanctuary jurisdiction that is 

11 a State may be allocated or receive any Federal fi12 nancial assistance (as such term is defined in section 

13 7501(a)(5) of title 31, United States Code). 

14 (2) POLITICAL SUBDIVISIONS.—No sanctuary 

15 jurisdiction that is a political subdivision of a State 

16 may be allocated or receive any funds made available 

17 to the Attorney General, including those made avail18 able from the account ‘‘Department of Justice—Of19 fice of Justice Programs—State and Local Law En20 forcement Assistance’’. 

21 (3) SOVEREIGN IMMUNITY.—Each State and 

22 political subdivision of a State shall, as a condition 

23 on receipt of any Federal financial assistance (as 

24 such term is defined in section 7501(a)(5) of title 

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1 nity of the State or political subdivision with respect 

2 to actions authorized under section 2504. 

3 (4) REALLOCATION OF FUNDS.—Notwith4 standing any other provision of law, any funds not 

5 allocated to a sanctuary jurisdiction from the ac6 count ‘‘Department of Justice—Office of Justice 

7 Programs—State and Local Law Enforcement As8 sistance’’ pursuant to this subsection shall be made 

9 available for activities carried out under the Justice 

10 and Mental Health Collaboration Program of the Of11 fice of Justice Programs of the Department of Jus12 tice, to reduce homelessness in order to improve out13 comes for individuals with mental illnesses or co-oc14 curring mental health and substance abuse disorders 

15 who encounter the justice system, thereby reducing 

16 mental health disorders and homelessness among 

17 our citizens. 

18 SEC. 2504. PRIVATE RIGHT OF ACTION. 

19 (a) CAUSE OF ACTION.—Any individual, or a spouse, 

20 parent, or child of that individual (if the individual is de21 ceased), who is the victim of a murder, rape, or any felony, 

22 as defined by the State, for which an alien (as defined 

23 in section 101(a)(3) of the Immigration and Nationality 

24 Act (8 U.S.C. 1101(a)(3))) has been convicted and sen25 tenced to a term of imprisonment of at least 1 year, may 


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1 bring an action against a State or political subdivision of 

2 a State in the appropriate Federal or State court— 

3 (1) if the State or political subdivision released 

4 the alien from custody prior to the commission of 

5 such crime, and had knowledge that the alien was 

6 unlawfully present in the United States; or 

7 (2) the crime was a consequence of the State or 

8 political subdivision declining to honor a detainer or 

9 warrant issued pursuant to section 287(d)(1) of the 

10 Immigration and Nationality Act (8 U.S.C. 

11 1357(d)(1)). 

12 (b) APPLICATION.—Subject to subsection (c), sub13 section (a) shall apply without regard to whether the crime 

14 was committed before, on, or after the date of the enact15 ment of this Act. 

16 (c) LIMITATION ON BRINGING ACTION.— 

17 (1) IN GENERAL.—An action brought under 

18 this section may not be brought later than 10 years 

19 following the occurrence of the crime, or death of a 

20 person as a result of such crime, whichever occurs 

21 later. 

22 (2) EXCEPTION.—Paragraph (1) shall not 

23 apply to an action brought under this section based 

24 on a crime committed before the date of the enact25 ment of this Act. 


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1 (d) ATTORNEY’S FEES AND OTHER COSTS.—In any 

2 action or proceeding under this section the court shall 

3 allow a prevailing plaintiff a reasonable attorneys’ fee as 

4 part of the costs, and include expert fees as part of the 

5 attorneys’ fee. 

6 TITLE XXVI—SOCIAL SECURITY 

7 INTEGRITY ACT OF 2020 

8 SEC. 2601. SHORT TITLE. 

9 This title may be cited as the ‘‘Social Security Integ10 rity Act of 2020’’. 

11 SEC. 2602. FINDINGS. 

12 Congress finds the following: 

13 (1) Individuals can commit various types of 

14 fraud against the Government by reporting earnings 

15 under deceased individuals’ Social Security Numbers 

16 (SSNs). 

17 (2) Various Federal entities rely on the Social 

18 Security Administration’s (SSA) death information 

19 to detect unreported deaths and verify the accuracy 

20 of reported deaths. 

21 (3) The Numident is the SSA’s computer data22 base file on all who have applied for a Social Secu23 rity number. The Office of the Inspector General 

24 (OIG) of the SSA conducted an audit and deter25 mined that the SSA did not have controls in place 


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1 to annotate death information on the Numident 

2 records of numberholders who exceeded maximum 

3 reasonable life expectancies and were likely deceased. 

4 (4) The OIG identified 34 cases in which it ap5 peared that the deceased numberholder’s name and 

6 Social Security Number (SSN) had been misused. In 

7 one instance an employer reported paying wages to 

8 someone from 2008 through 2012 using a 

9 numberholder’s name and SSN that had been born 

10 in 1886. SSA payment records indicated that the 

11 numberholder died in January 1965, but the SSA 

12 did not record the numberholder’s death on the 

13 Numident. SSA continued paying benefits to the 

14 numberholder’s widow until her death in February 

15 1973. SSA’s Master Earning File (MEF) contained 

16 no reported earnings information for this 

17 numberholder from 1956 through 2007. 

18 (5) The OIG determined that thousands of the 

19 SSNs could have been used to commit identity 

20 fraud. For tax years 2006 through 2011, SSA re21 ceived reports that individuals using 66,920 SSNs 

22 had approximately $3.1 billion in wages, tips, and 

23 self-employment income. SSA transferred the earn24 ings to the Earnings Suspense File because the em25 ployees’ or self-employed individuals’ names on the 


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1 earnings reports did not match the numberholders’ 

2 names. 

3 (6) During calendar years 2008 through 2011, 

4 employers made 4,024 E–Verify inquiries using 

5 3,873 SSNs belonging to numberholders born before 

6 June 16, 1901. According to the OIG, these inquir7 ies indicate individuals’ attempts to use the SSNs to 

8 apply for work. 

9 (7) The OIG determined that resolving these 

10 discrepancies will improve the accuracy and com11 pleteness of the Death Master File and help prevent 

12 future misuse of these SSNs. 

13 (8) The American taxpayer deserves to have the 

14 surety of knowing that every agency and department 

15 within the Federal Government takes the prudent 

16 actions necessary to prevent future fraud and waste 

17 of hard-earned dollars. 

18 (9) In 2015, the OIG identified approximately 

19 6.5 million numberholders age 112 or older who did 

20 not have death information on the Numident. 

21 (10) Of the 6.5 million cases OIG identified, 

22 based on initial review, SSA believed approximately 

23 1.5 million of these individuals were deceased. After 

24 further in-depth analysis, SSA posted death infor25 mation to records for only those cases that passed 


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1 complex identity matching protocols, and where the 

2 most current information indicated the individuals 

3 are in fact deceased. 

4 (11) For the remaining 5 million cases, the 

5 SSA reports that it does not have sufficient or reli6 able evidence that these individuals are deceased. 

7 However, the SSA also notes that the individuals 

8 have never received payments from the SSA; the 

9 records are decades old, and are the result of error10 prone paper reporting processes; it is possible that, 

11 decades ago, SSA incorrectly recorded some dates of 

12 birth and that some individuals are much younger 

13 than current records indicate; and it would be im14 prudent to presume death in order to add these 

15 cases to the DMF because doing so could result in 

16 the inappropriate release of living individuals’ per17 sonally identifiable information—an action that has 

18 far-reaching and adverse consequences for these in19 dividuals. 

20 (12) In line with the OIG’s recommendations, 

21 the SSA should take proactive action to fully protect 

22 the American taxpayer by ensuring that there are 

23 comprehensive controls in place to annotate death 

24 information on the Numident records of 


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1 numberholders who exceeded maximum reasonable 

2 life expectancies. 

3 SEC. 2603. IMPLEMENTATION OF OIG RECOMMENDATIONS. 

4 (a) IN GENERAL.—Not later than 3 years after the 

5 date of the enactment of this Act, the Commissioner of 

6 Social Security shall implement all of the recommenda7 tions described in the memorandum from the Office of the 

8 Inspector General of the Social Security Administration 

9 entitled ‘‘Numberholders Age 112 or Older Who Did Not 

10 Have a Death Entry on the Numident (A–06–14–34030)’’ 

11 and dated March 4, 2015. 

12 (b) ADDITIONAL PAYMENT TO INDIVIDUALS ATTAIN13 ING 100 YEARS OF AGE.—The Commissioner of Social Se14 curity shall make a one-time payment in the amount of 

15 $100 to each individual who, according to the records of 

16 the Commissioner of Social Security, attains 100 years of 

17 age after the date of enactment of this Act and applies 

18 for such payment. 

19 (c) REPORT.—Not later than December 31 of each 

20 calendar year that begins after the date of the enactment 

21 of this Act and ends before the date that is 3 years after 

22 such date of enactment, the Commissioner shall submit 

23 to the Congress a report on the progress made toward im24 plementation of each of the recommendations described in 

25 the memorandum specified in subsection (a), the methods 


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1 used to implement such recommendations, the amount of 

2 funds expended and any other resources utilized to imple3 ment such recommendations, and the projected date of full 

4 implementation. 

5 TITLE XXVII—HJ RES 47 

6 TITLE XXVIII—HJ RES 49 

7 TITLE XXIX—PROTECTING 

8 ACCESS TO CARE 

9 SEC. 2901. SHORT TITLE. 

10 This title may be cited as the ‘‘Protecting Access to 

11 Care Act of 2020’’. 

12 SEC. 2902. ENCOURAGING SPEEDY RESOLUTION OF 

13 CLAIMS. 

14 (a) STATUTE OF LIMITATIONS.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the time for the commencement of a 

17 health care lawsuit shall be, whichever occurs first of 

18 the following: 

19 (A) 3 years after the date of the occur20 rence of the breach or tort; 

21 (B) 3 years after the date the medical or 

22 health care treatment that is the subject of the 

23 claim is completed; or 


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1 (C) 1 year after the claimant discovers, or 

2 through the use of reasonable diligence should 

3 have discovered, the injury. 

4 (2) TOLLING.—In no event shall the time for 

5 commencement of a health care lawsuit exceed 3 

6 years after the date of the occurrence of the breach 

7 or tort or 3 years after the date the medical or 

8 health care treatment that is the subject of the claim 

9 is completed (whichever occurs first) unless tolled 

10 for any of the following— 

11 (A) upon proof of fraud; 

12 (B) intentional concealment; or 

13 (C) the presence of a foreign body, which 

14 has no therapeutic or diagnostic purpose or ef15 fect, in the person of the injured person. 

16 (3) ACTIONS BY A MINOR.—Actions by a minor 

17 shall be commenced within 3 years after the date of 

18 the occurrence of the breach or tort or 3 years after 

19 the date of the medical or health care treatment that 

20 is the subject of the claim is completed (whichever 

21 occurs first) except that actions by a minor under 

22 the full age of 6 years shall be commenced within 3 

23 years after the date of the occurrence of the breach 

24 or tort, 3 years after the date of the medical or 

25 health care treatment that is the subject of the claim 


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1 is completed, or 1 year after the injury is discovered, 

2 or through the use of reasonable diligence should 

3 have been discovered, or prior to the minor’s 8th 

4 birthday, whichever provides a longer period. Such 

5 time limitation shall be tolled for minors for any pe6 riod during which a parent or guardian and a health 

7 care provider have committed fraud or collusion in 

8 the failure to bring an action on behalf of the in9 jured minor. 

10 (b) STATE FLEXIBILITY.—No provision of subsection 

11 (a) shall be construed to preempt any state law (whether 

12 effective before, on, or after the date of the enactment of 

13 this Act) that— 

14 (1) specifies a time period of less than 3 years 

15 after the date of injury or less than 1 year after the 

16 claimant discovers, or through the use of reasonable 

17 diligence should have discovered, the injury, for the 

18 filing of a health care lawsuit; 

19 (2) that specifies a different time period for the 

20 filing of lawsuits by a minor; 

21 (3) that triggers the time period based on the 

22 date of the alleged negligence; or 

23 (4) establishes a statute of repose for the filing 

24 of health care lawsuit. 


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1 SEC. 2903. COMPENSATING PATIENT INJURY. 

2 (a) UNLIMITED AMOUNT OF DAMAGES FOR ACTUAL

3 ECONOMIC LOSSES IN HEALTH CARE LAWSUITS.—In any 

4 health care lawsuit, nothing in this title shall limit a claim5 ant’s recovery of the full amount of the available economic 

6 damages, notwithstanding the limitation in subsection (b). 

7 (b) ADDITIONAL NONECONOMIC DAMAGES.—In any 

8 health care lawsuit, the amount of noneconomic damages, 

9 if available, shall not exceed $250,000, regardless of the 

10 number of parties against whom the action is brought or 

11 the number of separate claims or actions brought with re12 spect to the same injury. 

13 (c) NO DISCOUNT OF AWARD FOR NONECONOMIC

14 DAMAGES.—For purposes of applying the limitation in 

15 subsection (b), future noneconomic damages shall not be 

16 discounted to present value. The jury shall not be in17 formed about the maximum award for noneconomic dam18 ages. An award for noneconomic damages in excess of 

19 $250,000 shall be reduced either before the entry of judg20 ment, or by amendment of the judgment after entry of 

21 judgment, and such reduction shall be made before ac22 counting for any other reduction in damages required by 

23 law. If separate awards are rendered for past and future 

24 noneconomic damages and the combined awards exceed 

25 $250,000, the future noneconomic damages shall be re26 duced first. 


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1 (d) FAIR SHARE RULE.—In any health care lawsuit, 

2 each party shall be liable for that party’s several share 

3 of any damages only and not for the share of any other 

4 person. Each party shall be liable only for the amount of 

5 damages allocated to such party in direct proportion to 

6 such party’s percentage of responsibility. Whenever a 

7 judgment of liability is rendered as to any party, a sepa8 rate judgment shall be rendered against each such party 

9 for the amount allocated to such party. For purposes of 

10 this section, the trier of fact shall determine the propor11 tion of responsibility of each party for the claimant’s 

12 harm. 

13 (e) STATE FLEXIBILITY.—No provision of this sec14 tion shall be construed to preempt any State law (whether 

15 effective before, on, or after the date of the enactment of 

16 this Act) that specifies a particular monetary amount of 

17 economic or noneconomic damages (or the total amount 

18 of damages) that may be awarded in a health care lawsuit, 

19 regardless of whether such monetary amount is greater 

20 or lesser than is provided for under this section. 

21 SEC. 2904. MAXIMIZING PATIENT RECOVERY. 

22 (a) COURT SUPERVISION OF SHARE OF DAMAGES

23 ACTUALLY PAID TO CLAIMANTS.—In any health care law24 suit, the court shall supervise the arrangements for pay25 ment of damages to protect against conflicts of interest 


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1 that may have the effect of reducing the amount of dam2 ages awarded that are actually paid to claimants. In par3 ticular, in any health care lawsuit in which the attorney 

4 for a party claims a financial stake in the outcome by vir5 tue of a contingent fee, the court shall have the power 

6 to restrict the payment of a claimant’s damage recovery 

7 to such attorney, and to redirect such damages to the 

8 claimant based upon the interests of justice and principles 

9 of equity. In no event shall the total of all contingent fees 

10 for representing all claimants in a health care lawsuit ex11 ceed the following limits: 

12 (1) Forty percent of the first $50,000 recovered 

13 by the claimant(s). 

14 (2) Thirty-three and one-third percent of the 

15 next $50,000 recovered by the claimant(s). 

16 (3) Twenty-five percent of the next $500,000 

17 recovered by the claimant(s). 

18 (4) Fifteen percent of any amount by which the 

19 recovery by the claimant(s) is in excess of $600,000. 

20 (b) APPLICABILITY.—The limitations in this section 

21 shall apply whether the recovery is by judgment, settle22 ment, mediation, arbitration, or any other form of alter23 native dispute resolution. In a health care lawsuit involv24 ing a minor or incompetent person, a court retains the 

25 authority to authorize or approve a fee that is less than 


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1 the maximum permitted under this section. The require2 ment for court supervision in the first two sentences of 

3 subsection (a) applies only in civil actions. 

4 (c) STATE FLEXIBILITY.—No provision of this sec5 tion shall be construed to preempt any State law (whether 

6 effective before, on, or after the date of the enactment of 

7 this Act) that specifies a lesser percentage or lesser total 

8 value of damages which may be claimed by an attorney 

9 representing a claimant in a health care lawsuit. 

10 SEC. 2905. AUTHORIZATION OF PAYMENT OF FUTURE DAM11 AGES TO CLAIMANTS IN HEALTH CARE LAW12 SUITS. 

13 (a) IN GENERAL.—In any health care lawsuit, if an 

14 award of future damages, without reduction to present 

15 value, equaling or exceeding $50,000 is made against a 

16 party with sufficient insurance or other assets to fund a 

17 periodic payment of such a judgment, the court shall, at 

18 the request of any party, enter a judgment ordering that 

19 the future damages be paid by periodic payments, in ac20 cordance with the Uniform Periodic Payment of Judg21 ments Act promulgated by the National Conference of 

22 Commissioners on Uniform State Laws. 

23 (b) APPLICABILITY.—This section applies to all ac24 tions which have not been first set for trial or retrial be25 fore the effective date of this Act. 


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1 (c) STATE FLEXIBILITY.—No provision of this sec2 tion shall be construed to preempt any State law (whether 

3 effective before, on, or after the date of the enactment of 

4 this Act) that specifies periodic payments for future dam5 ages at any amount other than $50,000 or that mandates 

6 such payments absent the request of either party. 

7 SEC. 2906. PRODUCT LIABILITY FOR HEALTH CARE PRO8 VIDERS. 

9 A health care provider who prescribes, or who dis10 penses pursuant to a prescription, a medical product ap11 proved, licensed, or cleared by the Food and Drug Admin12 istration shall not be named as a party to a product liabil13 ity lawsuit involving such product and shall not be liable 

14 to a claimant in a class action lawsuit against the manu15 facturer, distributor, or seller of such product. 

16 SEC. 2907. DEFINITIONS. 

17 In this title: 

18 (1) ALTERNATIVE DISPUTE RESOLUTION SYS19 TEM; ADR.—The term ‘‘alternative dispute resolution 

20 system’’ or ‘‘ADR’’ means a system that provides 

21 for the resolution of health care lawsuits in a man22 ner other than through a civil action brought in a 

23 State or Federal court. 

24 (2) CLAIMANT.—The term ‘‘claimant’’ means 

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1 ing a person who asserts or claims a right to legal 

2 or equitable contribution, indemnity, or subrogation, 

3 arising out of a health care liability claim or action, 

4 and any person on whose behalf such a claim is as5 serted or such an action is brought, whether de6 ceased, incompetent, or a minor. 

7 (3) COLLATERAL SOURCE BENEFITS.—The 

8 term ‘‘collateral source benefits’’ means any amount 

9 paid or reasonably likely to be paid in the future to 

10 or on behalf of the claimant, or any service, product, 

11 or other benefit provided or reasonably likely to be 

12 provided in the future to or on behalf of the claim13 ant, as a result of the injury or wrongful death, pur14 suant to— 

15 (A) any State or Federal health, sickness, 

16 income-disability, accident, or workers’ com17 pensation law; 

18 (B) any health, sickness, income-disability, 

19 or accident insurance that provides health bene20 fits or income-disability coverage; 

21 (C) any contract or agreement of any 

22 group, organization, partnership, or corporation 

23 to provide, pay for, or reimburse the cost of 

24 medical, hospital, dental, or income-disability 

25 benefits; and 


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1 (D) any other publicly or privately funded 

2 program. 

3 (4) CONTINGENT FEE.—The term ‘‘contingent 

4 fee’’ includes all compensation to any person or per5 sons which is payable only if a recovery is effected 

6 on behalf of one or more claimants. 

7 (5) ECONOMIC DAMAGES.—The term ‘‘economic 

8 damages’’ means objectively verifiable monetary 

9 losses incurred as a result of the provision or use of 

10 (or failure to provide or use) health care services or 

11 medical products, such as past and future medical 

12 expenses, loss of past and future earnings, cost of 

13 obtaining domestic services, loss of employment, and 

14 loss of business or employment opportunities, unless 

15 otherwise defined under applicable state law. In no 

16 circumstances shall damages for health care services 

17 or medical products exceed the amount actually paid 

18 or incurred by or on behalf of the claimant. 

19 (6) FUTURE DAMAGES.—The term ‘‘future 

20 damages’’ means any damages that are incurred 

21 after the date of judgment, settlement, or other reso22 lution (including mediation, or any other form of al23 ternative dispute resolution). 

24 (7) HEALTH CARE LAWSUIT.—The term 

25 ‘‘health care lawsuit’’ means any health care liability 


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1 claim concerning the provision of goods or services 

2 for which coverage was provided in whole or in part 

3 via a Federal program, subsidy or tax benefit, or 

4 any health care liability action concerning the provi5 sion of goods or services for which coverage was pro6 vided in whole or in part via a Federal program, 

7 subsidy or tax benefit, brought in a State or Federal 

8 court or pursuant to an alternative dispute resolu9 tion system, against a health care provider regard10 less of the theory of liability on which the claim is 

11 based, or the number of claimants, plaintiffs, de12 fendants, or other parties, or the number of claims 

13 or causes of action, in which the claimant alleges a 

14 health care liability claim. Such term does not in15 clude a claim or action which is based on criminal 

16 liability; which seeks civil fines or penalties paid to 

17 Federal, State, or local government; or which is 

18 grounded in antitrust. 

19 (8) HEALTH CARE LIABILITY ACTION.—The 

20 term ‘‘health care liability action’’ means a civil ac21 tion brought in a State or Federal court or pursuant 

22 to an alternative dispute resolution system, against 

23 a health care provider regardless of the theory of li24 ability on which the claim is based, or the number 

25 of plaintiffs, defendants, or other parties, or the 


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1 number of causes of action, in which the claimant al2 leges a health care liability claim. 

3 (9) HEALTH CARE LIABILITY CLAIM.—The 

4 term ‘‘health care liability claim’’ means a demand 

5 by any person, whether or not pursuant to ADR, 

6 against a health care provider, including, but not 

7 limited to, third-party claims, cross-claims, counter8 claims, or contribution claims, which are based upon 

9 the provision or use of (or the failure to provide or 

10 use) health care services or medical products, re11 gardless of the theory of liability on which the claim 

12 is based, or the number of plaintiffs, defendants, or 

13 other parties, or the number of causes of action. 

14 (10) HEALTH CARE PROVIDER.—The term 

15 ‘‘health care provider’’ means any person or entity 

16 required by State or Federal laws or regulations to 

17 be licensed, registered, or certified to provide health 

18 care services, and being either so licensed, reg19 istered, or certified, or exempted from such require20 ment by other statute or regulation, as well as any 

21 other individual or entity defined as a health care 

22 provider, health care professional, or health care in23 stitution under state law. 

24 (11) HEALTH CARE SERVICES.—The term 

25 ‘‘health care services’’ means the provision of any 


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1 goods or services (including safety, professional, or 

2 administrative services directly related to health 

3 care) by a health care provider, or by any individual 

4 working under the supervision of a health care pro5 vider, that relates to the diagnosis, prevention, or 

6 treatment of any human disease or impairment, or 

7 the assessment or care of the health of human 

8 beings. 

9 (12) MEDICAL PRODUCT.—The term ‘‘medical 

10 product’’ means a drug, device, or biological product 

11 intended for humans, and the terms ‘‘drug’’, ‘‘de12 vice’’, and ‘‘biological product’’ have the meanings 

13 given such terms in sections 201(g)(1) and 201(h) 

14 of the Federal Food, Drug and Cosmetic Act (21 

15 U.S.C. 321(g)(1) and (h)) and section 351(a) of the 

16 Public Health Service Act (42 U.S.C. 262(a)), re17 spectively, including any component or raw material 

18 used therein, but excluding health care services. 

19 (13) NONECONOMIC DAMAGES.—The term 

20 ‘‘noneconomic damages’’ means damages for phys21 ical and emotional pain, suffering, inconvenience, 

22 physical impairment, mental anguish, disfigurement, 

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1 tion, and all other nonpecuniary losses of any kind 

2 or nature incurred as a result of the provision or use 

3 of (or failure to provide or use) health care services 

4 or medical products, unless otherwise defined under 

5 applicable state law. 

6 (14) RECOVERY.—The term ‘‘recovery’’ means 

7 the net sum recovered after deducting any disburse8 ments or costs incurred in connection with prosecu9 tion or settlement of the claim, including all costs 

10 paid or advanced by any person. Costs of health care 

11 incurred by the plaintiff and the attorneys’ office 

12 overhead costs or charges for legal services are not 

13 deductible disbursements or costs for such purpose. 

14 (15) REPRESENTATIVE.—The term ‘‘represent15 ative’’ means a legal guardian, attorney, person des16 ignated to make decisions on behalf of a patient 

17 under a medical power of attorney, or any person 

18 recognized in law or custom as a patient’s agent. 

19 (16) STATE.—The term ‘‘State’’ means each of 

20 the several States, the District of Columbia, the 

21 Commonwealth of Puerto Rico, the Virgin Islands, 

22 Guam, American Samoa, the Northern Mariana Is23 lands, the Trust Territory of the Pacific Islands, and 

24 any other territory or possession of the United 

25 States, or any political subdivision thereof. 


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1 SEC. 2908. EFFECT ON OTHER LAWS. 

2 (a) VACCINE INJURY.— 

3 (1) To the extent that title XXI of the Public 

4 Health Service Act establishes a Federal rule of law 

5 applicable to a civil action brought for a vaccine-re6 lated injury or death— 

7 (A) this title does not affect the application 

8 of the rule of law to such an action; and 

9 (B) any rule of law prescribed by this title 

10 in conflict with a rule of law of such title XXI 

11 shall not apply to such action. 

12 (2) If there is an aspect of a civil action 

13 brought for a vaccine-related injury or death to 

14 which a Federal rule of law under title XXI of the 

15 Public Health Service Act does not apply, then this 

16 title or otherwise applicable law (as determined 

17 under this title) will apply to such aspect of such ac18 tion. 

19 (b) OTHER FEDERAL LAW.—Except as provided in 

20 this section, nothing in this title shall be deemed to affect 

21 any defense available to a defendant in a health care law22 suit or action under any other provision of Federal law. 

23 SEC. 2909. RULES OF CONSTRUCTION. 

24 (a) HEALTH CARE LAWSUITS.—Unless otherwise 

25 specified in this title, the provisions governing health care 

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1 sections (b) and (c), State law to the extent that State 

2 law prevents the application of any provisions of law estab3 lished by or under this title. The provisions governing 

4 health care lawsuits set forth in this title supersede chap5 ter 171 of title 28, United States Code, to the extent that 

6 such chapter— 

7 (1) provides for a greater amount of damages 

8 or contingent fees, a longer period in which a health 

9 care lawsuit may be commenced, or a reduced appli10 cability or scope of periodic payment of future dam11 ages, than provided in this title; or 

12 (2) prohibits the introduction of evidence re13 garding collateral source benefits, or mandates or 

14 permits subrogation or a lien on collateral source 

15 benefits. 

16 (b) PROTECTION OF STATES’ RIGHTS AND OTHER

17 LAWS.—Any issue that is not governed by any provision 

18 of law established by or under this title (including State 

19 standards of negligence) shall be governed by otherwise 

20 applicable State or Federal law. 

21 (c) STATE FLEXIBILITY.—No provision of this title 

22 shall be construed to preempt any defense available to a 

23 party in a health care lawsuit under any other provision 

24 of State or Federal law. 


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1 SEC. 2910. EFFECTIVE DATE. 

2 This title shall apply to any health care lawsuit 

3 brought in a Federal or State court, or subject to an alter4 native dispute resolution system, that is initiated on or 

5 after the date of the enactment of this Act, except that 

6 any health care lawsuit arising from an injury occurring 

7 prior to the date of the enactment of this Act shall be 

8 governed by the applicable statute of limitations provisions 

9 in effect at the time the cause of action accrued. 

10 SEC. 2911. LIMITATION ON EXPERT WITNESS TESTIMONY. 

11 (a) IN GENERAL.—No person in a health care profes12 sion requiring licensure under the laws of a State shall 

13 be competent to testify in any court of law to establish 

14 the following facts— 

15 (1) the recognized standard of acceptable pro16 fessional practice and the specialty thereof, if any, 

17 that the defendant practices, which shall be the type 

18 of acceptable professional practice recognized in the 

19 defendant’s community or in a community similar to 

20 the defendant’s community that was in place at the 

21 time the alleged injury or wrongful action occurred; 

22 (2) that the defendant acted with less than or 

23 failed to act with ordinary and reasonable care in ac24 cordance with the recognized standard; and 

25 (3) that as a proximate result of the defend26 ant’s negligent act or omission, the claimant sufVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 fered injuries which would not otherwise have oc2 curred, 

3 unless the person was licensed to practice, in the State 

4 or a contiguous bordering State, a profession or specialty 

5 which would make the person’s expert testimony relevant 

6 to the issues in the case and had practiced this profession 

7 or specialty in one of these States during the year pre8 ceding the date that the alleged injury or wrongful act 

9 occurred. 

10 (b) APPLICABILITY.—The requirements set forth in 

11 subsection (a) shall also apply to expert witnesses testi12 fying for the defendant as rebuttal witnesses. 

13 (c) WAIVER AUTHORITY.—The court may waive the 

14 requirements in this subsection if it determines that the 

15 appropriate witnesses otherwise would not be available. 

16 SEC. 2912. COMMUNICATIONS FOLLOWING UNANTICIPATED 

17 OUTCOME. 

18 (a) PROVIDER COMMUNICATIONS.—In any health 

19 care liability action, any and all statements, affirmations, 

20 gestures, or conduct expressing apology, fault, sympathy, 

21 commiseration, condolence, compassion, or a general sense 

22 of benevolence which are made by a health care provider 

23 or an employee of a health care provider to the patient, 

24 a relative of the patient, or a representative of the patient 

25 and which relate to the discomfort, pain, suffering, injury, 


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1 or death of the patient as the result of the unanticipated 

2 outcome of medical care shall be inadmissible for any pur3 pose as evidence of an admission of liability or as evidence 

4 of an admission against interest. 

5 (b) STATE FLEXIBILITY.—No provision of this sec6 tion shall be construed to preempt any State law (whether 

7 effective before, on, or after the date of the enactment of 

8 this Act) that makes additional communications inadmis9 sible as evidence of an admission of liability or as evidence 

10 of an admission against interest. 

11 SEC. 2913. EXPERT WITNESS QUALIFICATIONS. 

12 (a) IN GENERAL.—In any health care lawsuit, an in13 dividual shall not give expert testimony on the appropriate 

14 standard of practice or care involved unless the individual 

15 is licensed as a health professional in one or more States 

16 and the individual meets the following criteria: 

17 (1) If the party against whom or on whose be18 half the testimony is to be offered is or claims to be 

19 a specialist, the expert witness shall specialize at the 

20 time of the occurrence that is the basis for the law21 suit in the same specialty or claimed specialty as the 

22 party against whom or on whose behalf the testi23 mony is to be offered. If the party against whom or 

24 on whose behalf the testimony is to be offered is or 

25 claims to be a specialist who is board certified, the 


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1 expert witness shall be a specialist who is board cer2 tified in that specialty or claimed specialty. 

3 (2) During the 1-year period immediately pre4 ceding the occurrence of the action that gave rise to 

5 the lawsuit, the expert witness shall have devoted a 

6 majority of the individual’s professional time to one 

7 or more of the following: 

8 (A) The active clinical practice of the same 

9 health profession as the defendant and, if the 

10 defendant is or claims to be a specialist, in the 

11 same specialty or claimed specialty. 

12 (B) The instruction of students in an ac13 credited health professional school or accredited 

14 residency or clinical research program in the 

15 same health profession as the defendant and, if 

16 the defendant is or claims to be a specialist, in 

17 an accredited health professional school or ac18 credited residency or clinical research program 

19 in the same specialty or claimed specialty. 

20 (3) If the defendant is a general practitioner, 

21 the expert witness shall have devoted a majority of 

22 the witness’s professional time in the 1-year period 

23 preceding the occurrence of the action giving rise to 

24 the lawsuit to one or more of the following: 


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1 (A) Active clinical practice as a general 

2 practitioner. 

3 (B) Instruction of students in an accred4 ited health professional school or accredited 

5 residency or clinical research program in the 

6 same health profession as the defendant. 

7 (b) LAWSUITS AGAINST ENTITIES.—If the defendant 

8 in a health care lawsuit is an entity that employs a person 

9 against whom or on whose behalf the testimony is offered, 

10 the provisions of subsection (a) apply as if the person were 

11 the party or defendant against whom or on whose behalf 

12 the testimony is offered. 

13 (c) POWER OF COURT.—Nothing in this subsection 

14 shall limit the power of the trial court in a health care 

15 lawsuit to disqualify an expert witness on grounds other 

16 than the qualifications set forth under this subsection. 

17 (d) LIMITATION.—An expert witness in a health care 

18 lawsuit shall not be permitted to testify if the fee of the 

19 witness is in any way contingent on the outcome of the 

20 lawsuit. 

21 (e) STATE FLEXIBILITY.—No provision of this sec22 tion shall be construed to preempt any State law (whether 

23 effective before, on, or after the date of the enactment of 

24 this Act) that places additional qualification requirements 

25 upon any individual testifying as an expert witness. 


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1 SEC. 2914. AFFIDAVIT OF MERIT. 

2 (a) REQUIRED FILING.—Subject to subsection (b), 

3 the plaintiff in a health care lawsuit alleging negligence 

4 or, if the plaintiff is represented by an attorney, the plain5 tiff’s attorney shall file simultaneously with the health 

6 care lawsuit an affidavit of merit signed by a health pro7 fessional who meets the requirements for an expert wit8 ness under section 2913 of this title. The affidavit of merit 

9 shall certify that the health professional has reviewed the 

10 notice and all medical records supplied to him or her by 

11 the plaintiff’s attorney concerning the allegations con12 tained in the notice and shall contain a statement of each 

13 of the following: 

14 (1) The applicable standard of practice or care. 

15 (2) The health professional’s opinion that the 

16 applicable standard of practice or care was breached 

17 by the health professional or health facility receiving 

18 the notice. 

19 (3) The actions that should have been taken or 

20 omitted by the health professional or health facility 

21 in order to have complied with the applicable stand22 ard of practice or care. 

23 (4) The manner in which the breach of the 

24 standard of practice or care was the proximate cause 

25 of the injury alleged in the notice. 

26 (5) A listing of the medical records reviewed. 


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1 (b) FILING EXTENSION.—Upon motion of a party for 

2 good cause shown, the court in which the complaint is filed 

3 may grant the plaintiff or, if the plaintiff is represented 

4 by an attorney, the plaintiff’s attorney an additional 28 

5 days in which to file the affidavit required under sub6 section (a). 

7 (c) STATE FLEXIBILITY.—No provision of this sec8 tion shall be construed to preempt any State law (whether 

9 effective before, on, or after the date of the enactment of 

10 this Act) that establishes additional requirements for the 

11 filing of an affidavit of merit or similar pre-litigation docu12 mentation. 

13 SEC. 2915. NOTICE OF INTENT TO COMMENCE LAWSUIT. 

14 (a) ADVANCE NOTICE.—A person shall not com15 mence a health care lawsuit against a health care provider 

16 unless the person has given the health care provider 90 

17 days written notice before the action is commenced. 

18 (b) EXCEPTIONS.—A health care lawsuit against a 

19 health care provider filed within 6 months of the statute 

20 of limitations expiring as to any claimant, or within 1 year 

21 of the statute of repose expiring as to any claimant, shall 

22 be exempt from compliance with this section. 

23 (c) STATE FLEXIBILITY.—No provision of this sec24 tion shall be construed to preempt any State law (whether 

25 effective before, on, or after the date of the enactment of 


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1 this Act) that establishes a different time period for the 

2 filing of written notice. 

3 TITLE XXX—CONSOLIDATION OF 

4 FEDERAL WELFARE PROGRAMS 

5 SEC. 3001. SENSE OF CONGRESS. 

6 It is the sense of Congress that all welfare programs 

7 should be under the jurisdiction of a single House com8 mittee and a single Senate committee. Furthermore, wel9 fare programs should be prioritized, based on their effi10 cacy, with the objective of eliminating programs that 

11 aren’t working and retaining those that are. 

12 DIVISION B—FAIR TAX ACT 

13 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

14 (a) SHORT TITLE.—This Act may be cited as the 

15 ‘‘FairTax Act of 2019’’. 

16 (b) TABLE OF CONTENTS.—The table of contents for 

17 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Congressional findings. 

TITLE I—REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND 

ESTATE AND GIFT TAXES 

Sec. 101. Income taxes repealed. 

Sec. 102. Payroll taxes repealed. 

Sec. 103. Estate and gift taxes repealed. 

Sec. 104. Conforming amendments; effective date. 

TITLE II—SALES TAX ENACTED 

Sec. 201. Sales tax. 

Sec. 202. Conforming and technical amendments. 

TITLE III—OTHER MATTERS 

Sec. 301. Phase-out of administration of repealed Federal taxes. 

Sec. 302. Administration of other Federal taxes. 


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Sec. 303. Sales tax inclusive Social Security benefits indexation. 

TITLE IV—SUNSET OF SALES TAX IF SIXTEENTH AMENDMENT 

NOT REPEALED 

Sec. 401. Elimination of sales tax if Sixteenth Amendment not repealed. 

1 SEC. 2. CONGRESSIONAL FINDINGS. 

2 (a) FINDINGS RELATING TO FEDERAL INCOME

3 TAX.—Congress finds the Federal income tax— 

4 (1) retards economic growth and has reduced 

5 the standard of living of the American public; 

6 (2) impedes the international competitiveness of 

7 United States industry; 

8 (3) reduces savings and investment in the 

9 United States by taxing income multiple times; 

10 (4) slows the capital formation necessary for 

11 real wages to steadily increase; 

12 (5) lowers productivity; 

13 (6) imposes unacceptable and unnecessary ad14 ministrative and compliance costs on individual and 

15 business taxpayers; 

16 (7) is unfair and inequitable; 

17 (8) unnecessarily intrudes upon the privacy and 

18 civil rights of United States citizens; 

19 (9) hides the true cost of government by embed20 ding taxes in the costs of everything Americans buy; 

21 (10) is not being complied with at satisfactory 

22 levels and therefore raises the tax burden on law 

23 abiding citizens; and 


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1 (11) impedes upward social mobility. 

2 (b) FINDINGS RELATING TO FEDERAL PAYROLL

3 TAXES.—Congress finds further that the Social Security 

4 and Medicare payroll taxes and self-employment taxes— 

5 (1) raise the cost of employment; 

6 (2) destroy jobs and cause unemployment; and 

7 (3) have a disproportionately adverse impact on 

8 lower income Americans. 

9 (c) FINDINGS RELATING TO FEDERAL ESTATE AND

10 GIFT TAXES.—Congress finds further that the Federal es11 tate and gift taxes— 

12 (1) force family businesses and farms to be sold 

13 by the family to pay such taxes; 

14 (2) discourage capital formation and entrepre15 neurship; 

16 (3) foster the continued dominance of large en17 terprises over small family-owned companies and 

18 farms; and 

19 (4) impose unacceptably high tax planning costs 

20 on small businesses and farms. 

21 (d) FINDINGS RELATING TO NATIONAL SALES

22 TAX.—Congress finds further that a broad-based national 

23 sales tax on goods and services purchased for final con24 sumption— 


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1 (1) is similar in many respects to the sales and 

2 use taxes in place in 45 of the 50 States; 

3 (2) will promote savings and investment; 

4 (3) will promote fairness; 

5 (4) will promote economic growth; 

6 (5) will raise the standard of living; 

7 (6) will increase investment; 

8 (7) will enhance productivity and international 

9 competitiveness; 

10 (8) will reduce administrative burdens on the 

11 American taxpayer; 

12 (9) will improve upward social mobility; and 

13 (10) will respect the privacy interests and civil 

14 rights of taxpayers. 

15 (e) FINDINGS RELATING TO ADMINISTRATION OF

16 NATIONAL SALES TAX.—Congress further finds that— 

17 (1) most of the practical experience admin18 istering sales taxes is found at the State govern19 mental level; 

20 (2) it is desirable to harmonize Federal and 

21 State collection and enforcement efforts to the max22 imum extent possible; 

23 (3) it is sound tax administration policy to fos24 ter administration and collection of the Federal sales 


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1 tax at the State level in return for a reasonable ad2 ministration fee to the States; and 

3 (4) businesses that must collect and remit taxes 

4 should receive reasonable compensation for the cost 

5 of doing so. 

6 (f) FINDINGS RELATING TO REPEAL OF PRESENT

7 FEDERAL TAX SYSTEM.—Congress further finds that the 

8 16th Amendment to the United States Constitution should 

9 be repealed. 

10 TITLE I—REPEAL OF THE IN11 COME TAX, PAYROLL TAXES, 

12 AND ESTATE AND GIFT TAXES 

13 SEC. 101. INCOME TAXES REPEALED. 

14 Subtitle A of the Internal Revenue Code of 1986 (re15 lating to income taxes and self-employment taxes) is re16 pealed. 

17 SEC. 102. PAYROLL TAXES REPEALED. 

18 (a) IN GENERAL.—Subtitle C of the Internal Rev19 enue Code of 1986 (relating to payroll taxes and with20 holding of income taxes) is repealed. 

21 (b) FUNDING OF SOCIAL SECURITY.—For funding of 

22 the Social Security Trust Funds from general revenue, see 

23 section 201 of the Social Security Act (42 U.S.C. 401). 


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1 SEC. 103. ESTATE AND GIFT TAXES REPEALED. 

2 Subtitle B of the Internal Revenue Code of 1986 (re3 lating to estate and gift taxes) is repealed. 

4 SEC. 104. CONFORMING AMENDMENTS; EFFECTIVE DATE. 

5 (a) CONFORMING AMENDMENTS.—The Internal Rev6 enue Code of 1986 is amended— 

7 (1) by striking subtitle H (relating to financing 

8 of Presidential election campaigns); and 

9 (2) by redesignating— 

10 (A) subtitle D (relating to miscellaneous 

11 excise taxes) as subtitle B; 

12 (B) subtitle E (relating to alcohol, tobacco, 

13 and certain other excise taxes) as subtitle C; 

14 (C) subtitle F (relating to procedure and 

15 administration) as subtitle D; 

16 (D) subtitle G (relating to the Joint Com17 mittee on Taxation) as subtitle E; 

18 (E) subtitle I (relating to the Trust Fund 

19 Code) as subtitle F; 

20 (F) subtitle J (relating to coal industry 

21 health benefits) as subtitle G; and 

22 (G) subtitle K (relating to group health 

23 plan portability, access, and renewability re24 quirements) as subtitle H. 

25 (b) REDESIGNATION OF 1986 CODE.— 


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1 (1) IN GENERAL.—The Internal Revenue Code 

2 of 1986 enacted on October 22, 1986, as heretofore, 

3 hereby, or hereafter amended, may be cited as the 

4 Internal Revenue Code of 2019. 

5 (2) REFERENCES IN LAWS, ETC.—Except when 

6 inappropriate, any reference in any law, Executive 

7 order, or other document— 

8 (A) to the Internal Revenue Code of 1986 

9 shall include a reference to the Internal Rev10 enue Code of 2019; and 

11 (B) to the Internal Revenue Code of 2019 

12 shall include a reference to the provisions of law 

13 formerly known as the Internal Revenue Code 

14 of 1986. 

15 (c) ADDITIONAL AMENDMENTS.—For additional con16 forming amendments, see section 202 of this Act. 

17 (d) EFFECTIVE DATE.—Except as otherwise pro18 vided in this Act, the amendments made by this Act shall 

19 take effect on January 1, 2021. 

20 TITLE II—SALES TAX ENACTED 

21 SEC. 201. SALES TAX. 

22 (a) IN GENERAL.—The Internal Revenue Code of 

23 2019 is amended by inserting before subtitle B (as redes24 ignated by section 104(a)(2)(A)) the following new sub25 title: 


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1 ‘‘Subtitle A—Sales Tax 

‘‘Sec. 1. Principles of interpretation. 

‘‘Sec. 2. Definitions. 

‘‘CHAPTER 1. INTERPRETATION; DEFINITIONS; IMPOSITION OF TAX; ETC. 

‘‘CHAPTER 2. CREDITS; REFUNDS

‘‘CHAPTER 3. FAMILY CONSUMPTION ALLOWANCE

‘‘CHAPTER 4. FEDERAL AND STATE COOPERATIVE TAX ADMINISTRATION

‘‘CHAPTER 5. OTHER ADMINISTRATIVE PROVISIONS

‘‘CHAPTER 6. COLLECTIONS; APPEALS; TAXPAYER RIGHTS

‘‘CHAPTER 7. SPECIAL RULES

‘‘CHAPTER 8. FINANCIAL INTERMEDIATION SERVICES

‘‘CHAPTER 9. ADDITIONAL MATTERS

2 ‘‘SEC. 1. PRINCIPLES OF INTERPRETATION. 

3 ‘‘(a) IN GENERAL.—Any court, the Secretary, and 

4 any sales tax administering authority shall consider the 

5 purposes of this subtitle (as set forth in subsection (b)) 

6 as the primary aid in statutory construction. 

7 ‘‘(b) PURPOSES.—The purposes of this subtitle are 

8 as follows: 

9 ‘‘(1) To raise revenue needed by the Federal 

10 Government in a manner consistent with the other 

11 purposes of this subtitle. 

12 ‘‘(2) To tax all consumption of goods and serv13 ices in the United States once, without exception, 

14 but only once. 

15 ‘‘(3) To prevent double, multiple, or cascading 

16 taxation. 


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1 ‘‘(4) To simplify the tax law and reduce the ad2 ministration costs of, and the costs of compliance 

3 with, the tax law. 

4 ‘‘(5) To provide for the administration of the 

5 tax law in a manner that respects privacy, due proc6 ess, individual rights when interacting with the gov7 ernment, the presumption of innocence in criminal 

8 proceedings, and the presumption of lawful behavior 

9 in civil proceedings. 

10 ‘‘(6) To increase the role of State governments 

11 in Federal tax administration because of State gov12 ernment expertise in sales tax administration. 

13 ‘‘(7) To enhance generally cooperation and co14 ordination among State tax administrators; and to 

15 enhance cooperation and coordination among Fed16 eral and State tax administrators, consistent with 

17 the principle of intergovernmental tax immunity. 

18 ‘‘(c) SECONDARY AIDS TO STATUTORY CONSTRUC19 TION.—As a secondary aid in statutory construction, any 

20 court, the Secretary, and any sales tax administering au21 thority shall consider— 

22 ‘‘(1) the common law canons of statutory con23 struction, 

24 ‘‘(2) the meaning and construction of concepts 

25 and terms used in the Internal Revenue Code of 


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1 1986 as in effect before the effective date of this 

2 subtitle, and 

3 ‘‘(3) construe any ambiguities in this Act in 

4 favor of reserving powers to the States respectively, 

5 or to the people. 

6 ‘‘SEC. 2. DEFINITIONS. 

7 ‘‘(a) IN GENERAL.—For purposes of this subtitle— 

8 ‘‘(1) AFFILIATED FIRMS.—A firm is affiliated 

9 with another if 1 firm owns 50 percent or more of— 

10 ‘‘(A) the voting shares in a corporation, or 

11 ‘‘(B) the capital interests of a business 

12 firm that is not a corporation. 

13 ‘‘(2) CONFORMING STATE SALES TAX.—The 

14 term ‘conforming State sales tax’ means a sales tax 

15 imposed by a State that adopts the same definition 

16 of taxable property and services as adopted by this 

17 subtitle. 

18 ‘‘(3) DESIGNATED COMMERCIAL PRIVATE COU19 RIER SERVICE.—The term ‘designated commercial 

20 private courier service’ means a firm designated as 

21 such by the Secretary or any sales tax administering 

22 authority, upon application of the firm, if the firm— 

23 ‘‘(A) provides its services to the general 

24 public, 


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1 ‘‘(B) records electronically to its data base 

2 kept in the regular course of its business the 

3 date on which an item was given to such firm 

4 for delivery, and 

5 ‘‘(C) has been operating for at least 1 

6 year. 

7 ‘‘(4) EDUCATION AND TRAINING.—The term 

8 ‘education and training’ means tuition for primary, 

9 secondary, or postsecondary level education, and job10 related training courses. Such term does not include 

11 room, board, sports activities, recreational activities, 

12 hobbies, games, arts or crafts or cultural activities. 

13 ‘‘(5) GROSS PAYMENTS.—The term ‘gross pay14 ments’ means payments for taxable property or serv15 ices, including Federal taxes imposed by this title. 

16 ‘‘(6) INTANGIBLE PROPERTY.— 

17 ‘‘(A) IN GENERAL.—The term ‘intangible 

18 property’ includes copyrights, trademarks, pat19 ents, goodwill, financial instruments, securities, 

20 commercial paper, debts, notes and bonds, and 

21 other property deemed intangible at common 

22 law. The Secretary shall, by regulation resolve 

23 differences among the provisions of common 

24 law of the several States. 


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1 ‘‘(B) CERTAIN TYPES OF PROPERTY.— 

2 Such term does not include tangible personal 

3 property (or rents or leaseholds of any term 

4 thereon), real property (or rents or leaseholds 

5 of any term thereon) and computer software. 

6 ‘‘(7) PERSON.—The term ‘person’ means any 

7 natural person, and unless the context clearly does 

8 not allow it, any corporation, partnership, limited li9 ability company, trust, estate, government, agency, 

10 administration, organization, association, or other 

11 legal entity (foreign or domestic). 

12 ‘‘(8) PRODUCE, PROVIDE, RENDER, OR SELL

13 TAXABLE PROPERTY OR SERVICES.— 

14 ‘‘(A) IN GENERAL.—A taxable property or 

15 service is used to produce, provide, render, or 

16 sell a taxable property or service if such prop17 erty or service is purchased by a person en18 gaged in a trade or business for the purpose of 

19 employing or using such taxable property or 

20 service in the production, provision, rendering, 

21 or sale of other taxable property or services in 

22 the ordinary course of that trade or business. 

23 ‘‘(B) RESEARCH, EXPERIMENTATION, 

24 TESTING, AND DEVELOPMENT.—Taxable prop25 erty or services used in a trade or business for 


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1 the purpose of research, experimentation, test2 ing, and development shall be treated as used to 

3 produce, provide, render, or sell taxable prop4 erty or services. 

5 ‘‘(C) INSURANCE PAYMENTS.—Taxable 

6 property or services purchased by an insurer on 

7 behalf of an insured shall be treated as used to 

8 produce, provide, render, or sell taxable prop9 erty or services if the premium for the insur10 ance contract giving rise to the insurer’s obliga11 tion was subject to tax pursuant to section 801 

12 (relating to financial intermediation services). 

13 ‘‘(D) EDUCATION AND TRAINING.—Edu14 cation and training shall be treated as services 

15 used to produce, provide, render, or sell taxable 

16 property or services. 

17 ‘‘(9) REGISTERED SELLER.—The term ‘reg18 istered seller’ means a person registered pursuant to 

19 section 502. 

20 ‘‘(10) SALES TAX ADMINISTERING AUTHOR21 ITY.—The term ‘sales tax administering authority’ 

22 means— 

23 ‘‘(A) the State agency designated to collect 

24 and administer the sales tax imposed by this 

25 subtitle, in an administering State, or 


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1 ‘‘(B) the Secretary, in a State that is nei2 ther— 

3 ‘‘(i) an administering State, nor 

4 ‘‘(ii) a State that has elected to have 

5 its sales tax administered by an admin6 istering State. 

7 ‘‘(11) SECRETARY.—The term ‘Secretary’ 

8 means the Secretary of the Treasury. 

9 ‘‘(12) TAXABLE EMPLOYER.— 

10 ‘‘(A) IN GENERAL.—The term ‘taxable em11 ployer’ includes— 

12 ‘‘(i) any household employing domes13 tic servants, and 

14 ‘‘(ii) any government except for gov15 ernment enterprises (as defined in section 

16 704). 

17 ‘‘(B) EXCEPTIONS.—The term ‘taxable 

18 employer’ does not include any employer which 

19 is— 

20 ‘‘(i) engaged in a trade or business, 

21 ‘‘(ii) a not-for-profit organization (as 

22 defined in section 706), or 

23 ‘‘(iii) a government enterprise (as de24 fined in section 704). 


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1 ‘‘(C) CROSS REFERENCE.—For rules relat2 ing to collection and remittance of tax on wages 

3 by taxable employers, see section 103(b)(2). 

4 ‘‘(13) TAX INCLUSIVE FAIR MARKET VALUE.— 

5 The term ‘tax inclusive fair market value’ means the 

6 fair market value of taxable property or services plus 

7 the tax imposed by this subtitle. 

8 ‘‘(14) TAXABLE PROPERTY OR SERVICE.— 

9 ‘‘(A) GENERAL RULE.—The term ‘taxable 

10 property or service’ means— 

11 ‘‘(i) any property (including leaseholds 

12 of any term or rents with respect to such 

13 property) but excluding— 

14 ‘‘(I) intangible property, and 

15 ‘‘(II) used property, and 

16 ‘‘(ii) any service (including any finan17 cial intermediation services as determined 

18 by section 801). 

19 ‘‘(B) SERVICE.—For purposes of subpara20 graph (A), the term ‘service’— 

21 ‘‘(i) shall include any service per22 formed by an employee for which the em23 ployee is paid wages or a salary by a tax24 able employer, and 


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1 ‘‘(ii) shall not include any service per2 formed by an employee for which the em3 ployee is paid wages or a salary— 

4 ‘‘(I) by an employer in the reg5 ular course of the employer’s trade or 

6 business, 

7 ‘‘(II) by an employer that is a 

8 not-for-profit organization (as defined 

9 in section 706), 

10 ‘‘(III) by an employer that is a 

11 government enterprise (as defined in 

12 section 704), and 

13 ‘‘(IV) by taxable employers to 

14 employees directly providing education 

15 and training. 

16 ‘‘(15) UNITED STATES.—The term ‘United 

17 States’, when used in the geographical sense, means 

18 each of the 50 States, the District of Columbia, and 

19 any commonwealth, territory, or possession of the 

20 United States. 

21 ‘‘(16) USED PROPERTY.—The term ‘used prop22 erty’ means— 

23 ‘‘(A) property on which the tax imposed by 

24 section 101 has been collected and for which no 


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1 credit has been allowed under section 202, 203, 

2 or 205, or 

3 ‘‘(B) property that was held other than for 

4 a business purpose (as defined in section 

5 102(b)) on December 31, 2020. 

6 ‘‘(17) WAGES AND SALARY.—The terms ‘wage’ 

7 and ‘salary’ mean all compensation paid for employ8 ment service including cash compensation, employee 

9 benefits, disability insurance, or wage replacement 

10 insurance payments, unemployment compensation 

11 insurance, workers’ compensation insurance, and the 

12 fair market value of any other consideration paid by 

13 an employer to an employee in consideration for em14 ployment services rendered. 

15 ‘‘(b) CROSS REFERENCES.— 

16 ‘‘(1) For the definition of business purposes, 

17 see section 102(b). 

18 ‘‘(2) For the definition of insurance contract, 

19 see section 206(e). 

20 ‘‘(3) For the definition of qualified family, see 

21 section 302. 

22 ‘‘(4) For the definition of monthly poverty level, 

23 see section 303. 

24 ‘‘(5) For the definition of large seller, see sec25 tion 501(e)(3). 


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1 ‘‘(6) For the definition of hobby activities, see 

2 section 701. 

3 ‘‘(7) For the definition of gaming sponsor, see 

4 section 701(a). 

5 ‘‘(8) For the definition of a chance, see section 

6 701(b). 

7 ‘‘(9) For the definition of government enter8 prise, see section 704(b). 

9 ‘‘(10) For the definition of mixed use property, 

10 see section 705. 

11 ‘‘(11) For the definition of qualified not-for12 profit organization, see section 706. 

13 ‘‘(12) For the definition of financial intermedi14 ation services, see section 801. 

15 ‘‘CHAPTER 1—INTERPRETATION; 

16 DEFINITIONS; IMPOSITION OF TAX; ETC. 

‘‘Sec. 101. Imposition of sales tax. 

‘‘Sec. 102. Intermediate and export sales. 

‘‘Sec. 103. Rules relating to collection and remittance of tax. 

17 ‘‘SEC. 101. IMPOSITION OF SALES TAX. 

18 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

19 on the use or consumption in the United States of taxable 

20 property or services. 

21 ‘‘(b) RATE.— 

22 ‘‘(1) FOR 2021.—In the calendar year 2021, the 

23 rate of tax is 23 percent of the gross payments for 

24 the taxable property or service. 


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1 ‘‘(2) FOR YEARS AFTER 2021.—For years after 

2 the calendar year 2021, the rate of tax is the com3 bined Federal tax rate percentage (as defined in 

4 paragraph (3)) of the gross payments for the taxable 

5 property or service. 

6 ‘‘(3) COMBINED FEDERAL TAX RATE PERCENT7 AGE.—The combined Federal tax rate percentage is 

8 the sum of— 

9 ‘‘(A) the general revenue rate (as defined 

10 in paragraph (4)), 

11 ‘‘(B) the old-age, survivors and disability 

12 insurance rate, and 

13 ‘‘(C) the hospital insurance rate. 

14 ‘‘(4) GENERAL REVENUE RATE.—The general 

15 revenue rate shall be 14.91 percent. 

16 ‘‘(c) COORDINATION WITH IMPORT DUTIES.—The 

17 tax imposed by this section is in addition to any import 

18 duties imposed by chapter 4 of title 19, United States 

19 Code. The Secretary shall provide by regulation that, to 

20 the maximum extent practicable, the tax imposed by this 

21 section on imported taxable property and services is col22 lected and administered in conjunction with any applicable 

23 import duties imposed by the United States. 

24 ‘‘(d) LIABILITY FOR TAX.— 


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1 ‘‘(1) IN GENERAL.—The person using or con2 suming taxable property or services in the United 

3 States is liable for the tax imposed by this section, 

4 except as provided in paragraph (2) of this sub5 section. 

6 ‘‘(2) EXCEPTION WHERE TAX PAID TO SELL7 ER.—A person using or consuming a taxable prop8 erty or service in the United States is not liable for 

9 the tax imposed by this section if the person pays 

10 the tax to a person selling the taxable property or 

11 service and receives from such person a purchaser’s 

12 receipt within the meaning of section 509. 

13 ‘‘SEC. 102. INTERMEDIATE AND EXPORT SALES. 

14 ‘‘(a) IN GENERAL.—For purposes of this subtitle— 

15 ‘‘(1) BUSINESS AND EXPORT PURPOSES.—No 

16 tax shall be imposed under section 101 on any tax17 able property or service purchased for a business 

18 purpose in a trade or business. 

19 ‘‘(2) INVESTMENT PURPOSE.—No tax shall be 

20 imposed under section 101 on any taxable property 

21 or service purchased for an investment purpose and 

22 held exclusively for an investment purpose. 

23 ‘‘(3) STATE GOVERNMENT FUNCTIONS.—No tax 

24 shall be imposed under section 101 on State governVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00153 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 ment functions that do not constitute the final con2 sumption of property or services. 

3 ‘‘(b) BUSINESS PURPOSES.—For purposes of this 

4 section, the term ‘purchased for a business purpose in a 

5 trade or business’ means purchased by a person engaged 

6 in a trade or business and used in that trade or business— 

7 ‘‘(1) for resale, 

8 ‘‘(2) to produce, provide, render, or sell taxable 

9 property or services, or 

10 ‘‘(3) in furtherance of other bona fide business 

11 purposes. 

12 ‘‘(c) INVESTMENT PURPOSES.—For purposes of this 

13 section, the term ‘purchased for an investment purpose’ 

14 means property purchased exclusively for purposes of ap15 preciation or the production of income but not entailing 

16 more than minor personal efforts. 

17 ‘‘SEC. 103. RULES RELATING TO COLLECTION AND REMIT18 TANCE OF TAX. 

19 ‘‘(a) LIABILITY FOR COLLECTION AND REMITTANCE

20 OF THE TAX.—Except as provided otherwise by this sec21 tion, any tax imposed by this subtitle shall be collected 

22 and remitted by the seller of taxable property or services 

23 (including financial intermediation services). 

24 ‘‘(b) TAX TO BE REMITTED BY PURCHASER IN CER25 TAIN CIRCUMSTANCES.— 


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1 ‘‘(1) IN GENERAL.—In the case of taxable prop2 erty or services purchased outside of the United 

3 States and imported into the United States for use 

4 or consumption in the United States, the purchaser 

5 shall remit the tax imposed by section 101. 

6 ‘‘(2) CERTAIN WAGES OR SALARY.—In the case 

7 of wages or salary paid by a taxable employer which 

8 are taxable services, the employer shall remit the tax 

9 imposed by section 101. 

10 ‘‘(c) CONVERSION OF BUSINESS OR EXPORT PROP11 ERTY OR SERVICES.—Property or services purchased for 

12 a business purpose in a trade or business or for export 

13 (sold untaxed pursuant to section 102(a)) that is subse14 quently converted to personal use shall be deemed pur15 chased at the time of conversion and shall be subject to 

16 the tax imposed by section 101 at the fair market value 

17 of the converted property as of the date of conversion. The 

18 tax shall be due as if the property had been sold at the 

19 fair market value during the month of conversion. The 

20 person using or consuming the converted property is liable 

21 for and shall remit the tax. 

22 ‘‘(d) BARTER TRANSACTIONS.—If gross payment for 

23 taxable property or services is made in other than money, 

24 then the person responsible for collecting and remitting 

25 the tax shall remit the tax to the sales tax administering 


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1 authority in money as if gross payment had been made 

2 in money at the tax inclusive fair market value of the tax3 able property or services purchased. 

4 ‘‘CHAPTER 2—CREDITS; REFUNDS 

‘‘Sec. 201. Credits and refunds. 

‘‘Sec. 202. Business use conversion credit. 

‘‘Sec. 203. Intermediate and export sales credit. 

‘‘Sec. 204. Administration credit. 

‘‘Sec. 205. Bad debt credit. 

‘‘Sec. 206. Insurance proceeds credit. 

‘‘Sec. 207. Refunds. 

5 ‘‘SEC. 201. CREDITS AND REFUNDS. 

6 ‘‘(a) IN GENERAL.—Each person shall be allowed a 

7 credit with respect to the taxes imposed by section 101 

8 for each month in an amount equal to the sum of— 

9 ‘‘(1) such person’s business use conversion 

10 credit pursuant to section 202 for such month, 

11 ‘‘(2) such person’s intermediate and export 

12 sales credit pursuant to section 203 for such month, 

13 ‘‘(3) the administration credit pursuant to sec14 tion 204 for such month, 

15 ‘‘(4) the bad debt credit pursuant to section 

16 205 for such month, 

17 ‘‘(5) the insurance proceeds credit pursuant to 

18 section 206 for such month, 

19 ‘‘(6) the transitional inventory credit pursuant 

20 to section 902, and 

21 ‘‘(7) any amount paid in excess of the amount 

22 due. 


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1 ‘‘(b) CREDITS NOT ADDITIVE.—Only one credit al2 lowed by chapter 2 may be taken with respect to any par3 ticular gross payment. 

4 ‘‘SEC. 202. BUSINESS USE CONVERSION CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 201, a 

6 person’s business use conversion credit for any month is 

7 the aggregate of the amounts determined under subsection 

8 (b) with respect to taxable property and services— 

9 ‘‘(1) on which tax was imposed by section 101 

10 (and actually paid), and 

11 ‘‘(2) which commenced to be 95 percent or 

12 more used during such month for business purposes 

13 (within the meaning of section 102(b)). 

14 ‘‘(b) AMOUNT OF CREDIT.—The amount determined 

15 under this paragraph with respect to any taxable property 

16 or service is the lesser of— 

17 ‘‘(1) the product of— 

18 ‘‘(A) the rate imposed by section 101, and 

19 ‘‘(B) the quotient that is— 

20 ‘‘(i) the fair market value of the prop21 erty or service when its use is converted, 

22 divided by 

23 ‘‘(ii) the quantity that is one minus 

24 the tax rate imposed by section 101, or 


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1 ‘‘(2) the amount of tax paid with respect to 

2 such taxable property or service, including the 

3 amount, if any, determined in accordance with sec4 tion 705 (relating to mixed use property). 

5 ‘‘SEC. 203. INTERMEDIATE AND EXPORT SALES CREDIT. 

6 ‘‘For purposes of section 201, a person’s intermediate 

7 and export sales credit is the amount of sales tax paid 

8 on the purchase of any taxable property or service pur9 chased for— 

10 ‘‘(1) a business purpose in a trade or business 

11 (as defined in section 102(b)), or 

12 ‘‘(2) export from the United States for use or 

13 consumption outside the United States. 

14 ‘‘SEC. 204. ADMINISTRATION CREDIT. 

15 ‘‘(a) IN GENERAL.—Every person filing a timely 

16 monthly report (with regard to extensions) in compliance 

17 with section 501 shall be entitled to a taxpayer adminis18 trative credit equal to the greater of— 

19 ‘‘(1) $200, or 

20 ‘‘(2) one-quarter of 1 percent of the tax remit21 ted. 

22 ‘‘(b) LIMITATION.—The credit allowed under this sec23 tion shall not exceed 20 percent of the tax due to be remit24 ted prior to the application of any credit or credits per25 mitted by section 201. 


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1 ‘‘SEC. 205. BAD DEBT CREDIT. 

2 ‘‘(a) FINANCIAL INTERMEDIATION SERVICES.—Any 

3 person who has experienced a bad debt (other than unpaid 

4 invoices within the meaning of subsection (b)) shall be en5 titled to a credit equal to the product of— 

6 ‘‘(1) the rate imposed by section 101, and 

7 ‘‘(2) the quotient that is— 

8 ‘‘(A) the amount of the bad debt (as de9 fined in section 802), divided by 

10 ‘‘(B) the quantity that is one minus the 

11 rate imposed by section 101. 

12 ‘‘(b) UNPAID INVOICES.—Any person electing the ac13 crual method pursuant to section 503 that has with re14 spect to a transaction— 

15 ‘‘(1) invoiced the tax imposed by section 101, 

16 ‘‘(2) remitted the invoiced tax, 

17 ‘‘(3) actually delivered the taxable property or 

18 performed the taxable services invoiced, and 

19 ‘‘(4) not been paid 180 days after date the in20 voice was due to be paid, 

21 shall be entitled to a credit equal to the amount of tax 

22 remitted and unpaid by the purchaser. 

23 ‘‘(c) SUBSEQUENT PAYMENT.—Any payment made 

24 with respect to a transaction subsequent to a section 205 

25 credit being taken with respect to that transaction shall 

26 be subject to tax in the month the payment was received 


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1 as if a tax inclusive sale of taxable property and services 

2 in the amount of the payment had been made. 

3 ‘‘(d) PARTIAL PAYMENTS.—Partial payments shall 

4 be treated as pro rata payments of the underlying obliga5 tion and shall be allocated proportionately— 

6 ‘‘(1) for fully taxable payments, between pay7 ment for the taxable property and service and tax, 

8 and 

9 ‘‘(2) for partially taxable payments, among pay10 ment for the taxable property and service, tax and 

11 other payment. 

12 ‘‘(e) RELATED PARTIES.—The credit provided by this 

13 section shall not be available with respect to sales made 

14 to related parties. For purposes of this section, related 

15 party means affiliated firms and family members (as de16 fined in section 302(b)). 

17 ‘‘SEC. 206. INSURANCE PROCEEDS CREDIT. 

18 ‘‘(a) IN GENERAL.—A person receiving a payment 

19 from an insurer by virtue of an insurance contract shall 

20 be entitled to a credit in an amount determined by sub21 section (b), less any amount paid to the insured by the 

22 insurer pursuant to subsection (c), if the entire premium 

23 (except that portion allocable to the investment account 

24 of the underlying policy) for the insurance contract giving 

25 rise to the insurer’s obligation to make a payment to the 


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1 insured was subject to the tax imposed by section 101 and 

2 said tax was paid. 

3 ‘‘(b) CREDIT AMOUNT.—The amount of the credit 

4 shall be the product of— 

5 ‘‘(1) the rate imposed by section 101, and 

6 ‘‘(2) the quotient that is— 

7 ‘‘(A) the amount of the payment made by 

8 the insurer to the insured, divided by 

9 ‘‘(B) the quantity that is one minus the 

10 rate imposed by section 101. 

11 ‘‘(c) ADMINISTRATIVE OPTION.—The credit deter12 mined in accordance with subsection (b) shall be paid by 

13 the insurer to the insured and the insurer shall be entitled 

14 to the credit in lieu of the insured, except that the insurer 

15 may elect, in a form prescribed by the Secretary, to not 

16 pay the credit and require the insured to make application 

17 for the credit. In the event of such election, the insurer 

18 shall provide to the Secretary and the insured the name 

19 and tax identification number of the insurer and of the 

20 insured and indicate the proper amount of the credit. 

21 ‘‘(d) COORDINATION WITH RESPECT TO EXEMP22 TION.—If taxable property or services purchased by an in23 surer on behalf of an insured are purchased free of tax 

24 by virtue of section 2(a)(8)(C), then the credit provided 


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1 by this section shall not be available with respect to that 

2 purchase. 

3 ‘‘(e) INSURANCE CONTRACT.—For purposes of sub4 section (a), the term ‘insurance contract’ shall include a 

5 life insurance contract, a health insurance contract, a 

6 property and casualty loss insurance contract, a general 

7 liability insurance contract, a marine insurance contract, 

8 a fire insurance contract, an accident insurance contract, 

9 a disability insurance contract, a long-term care insurance 

10 contract, and an insurance contract that provides a com11 bination of these types of insurance. 

12 ‘‘SEC. 207. REFUNDS. 

13 ‘‘(a) REGISTERED SELLERS.—If a registered seller 

14 files a monthly tax report with an overpayment, then, 

15 upon application by the registered seller in a form pre16 scribed by the sales tax administering authority, the over17 payment shown on the report shall be refunded to the reg18 istered seller within 60 days of receipt of said application. 

19 In the absence of such application, the overpayment may 

20 be carried forward, without interest, by the person entitled 

21 to the credit. 

22 ‘‘(b) OTHER PERSONS.—If a person other than a reg23 istered seller has an overpayment for any month, then, 

24 upon application by the person in a form prescribed by 

25 the sales tax administering authority, the credit balance 


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1 due shall be refunded to the person within 60 days of re2 ceipt of said application. 

3 ‘‘(c) INTEREST.—No interest shall be paid on any 

4 balance due from the sales tax administering authority 

5 under this subsection for any month if such balance due 

6 is paid within 60 days after the application for refund is 

7 received. Balances due not paid within 60 days after the 

8 application for refund is received shall bear interest from 

9 the date of application. Interest shall be paid at the Fed10 eral short-term rate (as defined in section 511). 

11 ‘‘(d) SUSPENSION OF PERIOD TO PAY REFUND

12 ONLY IF FEDERAL OR STATE COURT RULING.—The 60- 

13 day periods under subsections (a) and (b) shall be sus14 pended with respect to a purported overpayment (or por15 tion thereof) only during any period that there is in effect 

16 a preliminary, temporary, or final ruling from a Federal 

17 or State court that there is reasonable cause to believe 

18 that such overpayment may not actually be due. 

19 ‘‘CHAPTER 3—FAMILY CONSUMPTION 

20 ALLOWANCE 

‘‘Sec. 301. Family consumption allowance. 

‘‘Sec. 302. Qualified family. 

‘‘Sec. 303. Monthly poverty level. 

‘‘Sec. 304. Rebate mechanism. 

‘‘Sec. 305. Change in family circumstances. 


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1 ‘‘SEC. 301. FAMILY CONSUMPTION ALLOWANCE. 

2 ‘‘Each qualified family shall be eligible to receive a 

3 sales tax rebate each month. The sales tax rebate shall 

4 be in an amount equal to the product of— 

5 ‘‘(1) the rate of tax imposed by section 101, 

6 and 

7 ‘‘(2) the monthly poverty level. 

8 ‘‘SEC. 302. QUALIFIED FAMILY. 

9 ‘‘(a) GENERAL RULE.—For purposes of this chapter, 

10 the term ‘qualified family’ shall mean one or more family 

11 members sharing a common residence. All family members 

12 sharing a common residence shall be considered as part 

13 of one qualified family. 

14 ‘‘(b) FAMILY SIZE DETERMINATION.— 

15 ‘‘(1) IN GENERAL.—To determine the size of a 

16 qualified family for purposes of this chapter, family 

17 members shall mean— 

18 ‘‘(A) an individual, 

19 ‘‘(B) the individual’s spouse, 

20 ‘‘(C) all lineal ancestors and descendants 

21 of said individual (and such individual’s 

22 spouse), 

23 ‘‘(D) all legally adopted children of such 

24 individual (and such individual’s spouse), and 

25 ‘‘(E) all children under legal guardianship 

26 of such individual (or such individual’s spouse). 


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1 ‘‘(2) IDENTIFICATION REQUIREMENTS.—In 

2 order for a person to be counted as a member of the 

3 family for purposes of determining the size of the 

4 qualified family, such person must— 

5 ‘‘(A) have a bona fide Social Security num6 ber, and 

7 ‘‘(B) be a lawful resident of the United 

8 States. 

9 ‘‘(c) CHILDREN LIVING AWAY FROM HOME.— 

10 ‘‘(1) STUDENTS LIVING AWAY FROM HOME.— 

11 Any person who was a registered student during not 

12 fewer than 5 months in a calendar year while living 

13 away from the common residence of a qualified fam14 ily but who receives over 50 percent of such person’s 

15 support during a calendar year from members of the 

16 qualified family shall be included as part of the fam17 ily unit whose members provided said support for 

18 purposes of this chapter. 

19 ‘‘(2) CHILDREN OF DIVORCED OR SEPARATED

20 PARENTS.—If a child’s parents are divorced or le21 gally separated, a child for purposes of this chapter 

22 shall be treated as part of the qualified family of the 

23 custodial parent. In cases of joint custody, the custo24 dial parent for purposes of this chapter shall be the 

25 parent that has custody of the child for more than 


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1 one-half of the time during a given calendar year. A 

2 parent entitled to be treated as the custodial parent 

3 pursuant to this paragraph may release this claim to 

4 the other parent if said release is in writing. 

5 ‘‘(d) ANNUAL REGISTRATION.—In order to receive 

6 the family consumption allowance provided by section 301, 

7 a qualified family must register with the sales tax admin8 istering authority in a form prescribed by the Secretary. 

9 The annual registration form shall provide— 

10 ‘‘(1) the name of each family member who 

11 shared the qualified family’s residence on the family 

12 determination date, 

13 ‘‘(2) the Social Security number of each family 

14 member on the family determination date who 

15 shared the qualified family’s residence on the family 

16 determination date, 

17 ‘‘(3) the family member or family members to 

18 whom the family consumption allowance should be 

19 paid, 

20 ‘‘(4) a certification that all listed family mem21 bers are lawful residents of the United States, 

22 ‘‘(5) a certification that all family members 

23 sharing the common residence are listed, 


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1 ‘‘(6) a certification that no family members 

2 were incarcerated on the family determination date 

3 (within the meaning of subsection (l)), and 

4 ‘‘(7) the address of the qualified family. 

5 Said registration shall be signed by all members of the 

6 qualified family that have attained the age of 21 years 

7 as of the date of filing. 

8 ‘‘(e) REGISTRATION NOT MANDATORY.—Registra9 tion is not mandatory for any qualified family. 

10 ‘‘(f) EFFECT OF FAILURE TO PROVIDE ANNUAL

11 REGISTRATION.—Any qualified family that fails to reg12 ister in accordance with this section within 30 days of the 

13 family determination date, shall cease receiving the 

14 monthly family consumption allowance in the month be15 ginning 90 days after the family determination date. 

16 ‘‘(g) EFFECT OF CURING FAILURE TO PROVIDE AN17 NUAL REGISTRATION.—Any qualified family that failed to 

18 timely make its annual registration in accordance with this 

19 section but subsequently cures its failure to register, shall 

20 be entitled to up to 6 months of lapsed sales tax rebate 

21 payments. No interest on lapsed payment amount shall be 

22 paid. 

23 ‘‘(h) EFFECTIVE DATE OF ANNUAL REGISTRA24 TIONS.—Annual registrations shall take effect for the 


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1 month beginning 90 days after the family registration 

2 date. 

3 ‘‘(i) EFFECTIVE DATE OF REVISED REGISTRA4 TIONS.—A revised registration made pursuant to section 

5 305 shall take effect for the first month beginning 60 days 

6 after the revised registration was filed. The existing reg7 istration shall remain in effect until the effective date of 

8 the revised registration. 

9 ‘‘(j) DETERMINATION OF REGISTRATION FILING

10 DATE.—An annual or revised registration shall be deemed 

11 filed when— 

12 ‘‘(1) deposited in the United States mail, post13 age prepaid, to the address of the sales tax admin14 istering authority, 

15 ‘‘(2) delivered and accepted at the offices of the 

16 sales tax administering authority, or 

17 ‘‘(3) provided to a designated commercial pri18 vate courier service for delivery within 2 days to the 

19 sales tax administering authority at the address of 

20 the sales tax administering authority. 

21 ‘‘(k) PROPOSED REGISTRATION TO BE PROVIDED.— 

22 Thirty or more days before the family registration date, 

23 the sales tax administering authority shall mail to the ad24 dress shown on the most recent rebate registration or 

25 change of address notice filed pursuant to section 305(d) 


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1 a proposed registration that may be simply signed by the 

2 appropriate family members if family circumstances have 

3 not changed. 

4 ‘‘(l) INCARCERATED INDIVIDUALS.—An individual 

5 shall not be eligible under this chapter to be included as 

6 a member of any qualified family if that individual— 

7 ‘‘(1) is incarcerated in a local, State, or Federal 

8 jail, prison, mental hospital, or other institution on 

9 the family determination date, and 

10 ‘‘(2) is scheduled to be incarcerated for 6 

11 months or more in the 12-month period following 

12 the effective date of the annual registration or the 

13 revised registration of said qualified family. 

14 ‘‘(m) FAMILY DETERMINATION DATE.—The family 

15 determination date is a date assigned to each family by 

16 the Secretary for purposes of determining qualified family 

17 size and other information necessary for the administra18 tion of this chapter. The Secretary shall promulgate regu19 lations regarding the issuance of family determination 

20 dates. In the absence of any regulations, the family deter21 mination date for all families shall be October 1. The Sec22 retary may assign family determination dates for adminis23 trative convenience. Permissible means of assigning family 

24 determination dates include a method based on the birth 

25 dates of family members. 


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1 ‘‘(n) CROSS REFERENCE.—For penalty for filing 

2 false rebate claim, see section 504(i). 

3 ‘‘SEC. 303. MONTHLY POVERTY LEVEL. 

4 ‘‘(a) IN GENERAL.—The monthly poverty level for 

5 any particular month shall be one-twelfth of the ‘annual 

6 poverty level’. For purposes of this section the ‘annual 

7 poverty level’ shall be the sum of— 

8 ‘‘(1) the annual level determined by the Depart9 ment of Health and Human Services poverty guide10 lines required by sections 652 and 673(2) of the 

11 Omnibus Reconciliation Act of 1981 for a particular 

12 family size, and 

13 ‘‘(2) in case of families that include a married 

14 couple, the ‘annual marriage penalty elimination 

15 amount’. 

16 ‘‘(b) ANNUAL MARRIAGE PENALTY ELIMINATION

17 AMOUNT.—The annual marriage penalty elimination 

18 amount shall be the amount that is— 

19 ‘‘(1) the amount that is two times the annual 

20 level determined by the Department of Health and 

21 Human Services poverty guidelines required by sec22 tions 652 and 673(2) of the Omnibus Reconciliation 

23 Act of 1981 for a family of one, less 

24 ‘‘(2) the annual level determined by the Depart25 ment of Health and Human Services poverty guideVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00170 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 lines required by sections 652 and 673(2) of the 

2 Omnibus Reconciliation Act of 1981 for a family of 

3 two. 

4 ‘‘SEC. 304. REBATE MECHANISM. 

5 ‘‘(a) GENERAL RULE.—The Social Security Adminis6 tration shall provide a monthly sales tax rebate to duly 

7 registered qualified families in an amount determined in 

8 accordance with section 301. 

9 ‘‘(b) PERSONS RECEIVING REBATE.—The payments 

10 shall be made to the persons designated by the qualifying 

11 family in the annual or revised registration for each quali12 fied family in effect with respect to the month for which 

13 payment is being made. Payments may only be made to 

14 persons 18 years or older. If more than 1 person is des15 ignated in a registration to receive the rebate, then the 

16 rebate payment shall be divided evenly between or among 

17 those persons designated. 

18 ‘‘(c) WHEN REBATES MAILED.—Rebates shall be 

19 mailed on or before the first business day of the month 

20 for which the rebate is being provided. 

21 ‘‘(d) SMART CARDS AND DIRECT ELECTRONIC DE22 POSIT PERMISSIBLE.—The Social Security Administration 

23 may provide rebates in the form of smart cards that carry 

24 cash balances in their memory for use in making purVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 chases at retail establishments or by direct electronic de2 posit. 

3 ‘‘SEC. 305. CHANGE IN FAMILY CIRCUMSTANCES. 

4 ‘‘(a) GENERAL RULE.—In the absence of the filing 

5 of a revised registration in accordance with this chapter, 

6 the common residence of the qualified family, marital sta7 tus and number of persons in a qualified family on the 

8 family registration date shall govern determinations re9 quired to be made under this chapter for purposes of the 

10 following calendar year. 

11 ‘‘(b) NO DOUBLE COUNTING.—In no event shall any 

12 person be considered part of more than one qualified fam13 ily. 

14 ‘‘(c) REVISED REGISTRATION PERMISSIBLE.—A 

15 qualified family may file a revised registration for pur16 poses of section 302(d) to reflect a change in family cir17 cumstances. A revised registration form shall provide— 

18 ‘‘(1) the name of each family member who 

19 shared the qualified family’s residence on the filing 

20 date of the revised registration, 

21 ‘‘(2) the Social Security number of each family 

22 member who shared the qualified family’s residence 

23 on the filing date of the revised registration, 


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1 ‘‘(3) the family member or family members to 

2 whom the family consumption allowance should be 

3 paid, 

4 ‘‘(4) a certification that all listed family mem5 bers are lawful residents of the United States, 

6 ‘‘(5) a certification that all family members 

7 sharing the commoner residence are listed, 

8 ‘‘(6) a certification that no family members 

9 were incarcerated on the family determination date 

10 (within the meaning of section 302(1)), and 

11 ‘‘(7) the address of the qualified family. 

12 Said revised registration shall be signed by all members 

13 of the qualified family that have attained the age of 21 

14 years as of the filing date of the revised registration. 

15 ‘‘(d) CHANGE OF ADDRESS.—A change of address for 

16 a qualified family may be filed with the sales tax admin17 istering authority at any time and shall not constitute a 

18 revised registration. 

19 ‘‘(e) REVISED REGISTRATION NOT MANDATORY.— 

20 Revised registrations reflecting changes in family status 

21 are not mandatory. 

22 ‘‘CHAPTER 4—FEDERAL AND STATE 

23 COOPERATIVE TAX ADMINISTRATION 

‘‘Sec. 401. Authority for States to collect tax. 

‘‘Sec. 402. Federal administrative support for States. 

‘‘Sec. 403. Federal-State tax conferences. 

‘‘Sec. 404. Federal administration in certain States. 

‘‘Sec. 405. Interstate allocation and destination determination. 


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‘‘Sec. 406. General administrative matters. 

‘‘Sec. 407. Jurisdiction. 

1 ‘‘SEC. 401. AUTHORITY FOR STATES TO COLLECT TAX. 

2 ‘‘(a) IN GENERAL.—The tax imposed by section 101 

3 on gross payments for the use or consumption of taxable 

4 property or services within a State shall be administered, 

5 collected, and remitted to the United States Treasury by 

6 such State if the State is an administering State. 

7 ‘‘(b) ADMINISTERING STATE.—For purposes of this 

8 section, the term ‘administering State’ means any State— 

9 ‘‘(1) which maintains a sales tax, and 

10 ‘‘(2) which enters into a cooperative agreement 

11 with the Secretary containing reasonable provisions 

12 governing the administration by such State of the 

13 taxes imposed by the subtitle and the remittance to 

14 the United States in a timely manner of taxes col15 lected under this chapter. 

16 ‘‘(c) COOPERATIVE AGREEMENTS.—The agreement 

17 under subsection (b)(2) shall include provisions for the ex18 peditious transfer of funds, contact officers, dispute reso19 lution, information exchange, confidentiality, taxpayer 

20 rights, and other matters of importance. The agreement 

21 shall not contain extraneous matters. 

22 ‘‘(d) TIMELY REMITTANCE OF TAX.— 

23 ‘‘(1) IN GENERAL.—Administering States shall 

24 remit and pay over taxes collected under this subtitle 


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1 on behalf of the United States (less the administra2 tion fee allowable under paragraph (2)) not later 

3 than 5 days after receipt. Interest at 150 percent of 

4 the Federal short-term rate shall be paid with re5 spect to amounts remitted after the due date. 

6 ‘‘(2) ADMINISTRATION FEE.—An administering 

7 State may retain an administration fee equal to one8 quarter of 1 percent of the amounts otherwise re9 quired to be remitted to the United States under 

10 this chapter by the administering State. 

11 ‘‘(e) LIMITATION ON ADMINISTRATION OF TAX BY

12 UNITED STATES.—The Secretary may administer the tax 

13 imposed by this subtitle in an administering State only 

14 if— 

15 ‘‘(1)(A) such State has failed on a regular basis 

16 to timely remit to the United States taxes collected 

17 under this chapter on behalf of the United States, 

18 or 

19 ‘‘(B) such State has on a regular basis other20 wise materially breached the agreement referred to 

21 in subsection (b)(2), 

22 ‘‘(2) the State has failed to cure such alleged 

23 failures and breaches within a reasonable time, 


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1 ‘‘(3) the Secretary provides such State with 

2 written notice of such alleged failures and breaches, 

3 and 

4 ‘‘(4) a District Court of the United States with5 in such State, upon application of the Secretary, has 

6 rendered a decision— 

7 ‘‘(A) making findings of fact that— 

8 ‘‘(i) such State has failed on a regular 

9 basis to timely remit to the United States 

10 taxes collected under this chapter on behalf 

11 of the United States, or such State has on 

12 a regular basis otherwise materially 

13 breached the agreement referred to in sub14 section (b)(2), 

15 ‘‘(ii) the Secretary has provided such 

16 State with written notice of such alleged 

17 failures and breaches, and 

18 ‘‘(iii) the State has failed to cure such 

19 alleged failures and breaches within a rea20 sonable time, and 

21 ‘‘(B) making a determination that it is in 

22 the best interest of the citizens of the United 

23 States that the administering State’s authority 

24 to administer the tax imposed by this subtitle 


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1 be revoked and said tax be administered di2 rectly by the Secretary. 

3 The order of the District Court revoking the author4 ity of an Administering State shall contain provi5 sions governing the orderly transfer of authority to 

6 the Secretary. 

7 ‘‘(f) REINSTITUTION.—A State that has had its au8 thority revoked pursuant to subsection (e) shall not be an 

9 administering State for a period of not less than 5 years 

10 after the date of the order of revocation. For the first cal11 endar year commencing 8 years after the date of the order 

12 of revocation, the State shall be regarded without preju13 dice as eligible to become an administering State. 

14 ‘‘(g) THIRD STATE ADMINISTRATION PERMIS15 SIBLE.—It shall be permissible for a State to contract with 

16 an administering State to administer the State’s sales tax 

17 for an agreed fee. In this case, the agreement con18 templated by subsection (c) shall have both the State and 

19 the Federal Government as parties. 

20 ‘‘(h) INVESTIGATIONS AND AUDITS.—Administering 

21 States shall not conduct investigations or audits at facili22 ties in other administering States in connection with the 

23 tax imposed by section 101 or conforming State sales tax 

24 but shall instead cooperate with other administering 


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1 States using the mechanisms established by section 402, 

2 by compact or by other agreement. 

3 ‘‘SEC. 402. FEDERAL ADMINISTRATIVE SUPPORT FOR 

4 STATES. 

5 ‘‘(a) IN GENERAL.—The Secretary shall administer 

6 a program to facilitate information sharing among States. 

7 ‘‘(b) STATE COMPACTS.—The Secretary shall facili8 tate, and may be a party to a compact among States for 

9 purposes of facilitating the taxation of interstate pur10 chases and for other purposes that may facilitate imple11 mentation of this subtitle. 

12 ‘‘(c) AGREEMENT WITH CONFORMING STATES.—The 

13 Secretary is authorized to enter into and shall enter into 

14 an agreement among conforming States enabling con15 forming States to collect conforming State sales tax on 

16 sales made by sellers without a particular conforming 

17 State to a destination within that particular conforming 

18 State. 

19 ‘‘(d) SECRETARY’S AUTHORITY.—The Secretary shall 

20 have the authority to promulgate regulations, to provide 

21 guidelines, to assist States in administering the national 

22 sales tax, to provide for uniformity in the administration 

23 of the tax and to provide guidance to the public. 


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1 ‘‘SEC. 403. FEDERAL-STATE TAX CONFERENCES. 

2 ‘‘Not less than once annually, the Secretary shall host 

3 a conference with the sales tax administrators from the 

4 various administering States to evaluate the state of the 

5 national sales tax system, to address issues of mutual con6 cern and to develop and consider legislative, regulatory, 

7 and administrative proposals to improve the tax system. 

8 ‘‘SEC. 404. FEDERAL ADMINISTRATION IN CERTAIN STATES. 

9 ‘‘The Secretary shall administer the tax imposed by 

10 this subtitle in any State or other United States jurisdic11 tion that— 

12 ‘‘(1) is not an administering State, or 

13 ‘‘(2) elected to have another State administer 

14 its tax in accordance with section 401(g). 

15 ‘‘SEC. 405. INTERSTATE ALLOCATION AND DESTINATION 

16 DETERMINATION. 

17 ‘‘(a) DESTINATION GENERALLY.—The tax imposed 

18 by this subtitle is a destination principle tax. This section 

19 shall govern for purposes of determining— 

20 ‘‘(1) whether the destination of taxable property 

21 and services is within or without the United States, 

22 and 

23 ‘‘(2) which State or territory within the United 

24 States is the destination of taxable property and 

25 services. 


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1 ‘‘(b) TANGIBLE PERSONAL PROPERTY.—Except as 

2 provided in subsection (g) (relating to certain leases), the 

3 destination of tangible personal property shall be the State 

4 or territory in which the property was first delivered to 

5 the purchaser (including agents and authorized represent6 atives). 

7 ‘‘(c) REAL PROPERTY.—The destination of real prop8 erty, or rents or leaseholds on real property, shall be the 

9 State or territory in which the real property is located. 

10 ‘‘(d) OTHER PROPERTY.—The destination of any 

11 other taxable property shall be the residence of the pur12 chaser. 

13 ‘‘(e) SERVICES.— 

14 ‘‘(1) GENERAL RULE.—The destination of serv15 ices shall be the State or territory in which the use 

16 or consumption of the services occurred. Allocation 

17 of service invoices relating to more than 1 jurisdic18 tion shall be on the basis of time or another method 

19 determined by regulation. 

20 ‘‘(2) TELECOMMUNICATIONS SERVICES.—The 

21 destination of telecommunications services shall be 

22 the residence of the purchaser. Telecommunications 

23 services include telephone, telegraph, beeper, radio, 

24 cable television, satellite, and computer on-line or 

25 network services. 


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1 ‘‘(3) DOMESTIC TRANSPORTATION SERVICES.— 

2 For transportation services where all of the final 

3 destinations are within the United States, the des4 tination of transportation services shall be the final 

5 destination of the trip (in the case of round or mul6 tiple trip fares, the services amount shall be equally 

7 allocated among each final destination). 

8 ‘‘(4) INTERNATIONAL TRANSPORTATION SERV9 ICES.—For transportation services where the final 

10 destination or origin of the trip is without the 

11 United States, the service amount shall be deemed 

12 50 percent attributable to the United States destina13 tion or origin. 

14 ‘‘(5) ELECTRICAL SERVICE.—The destination of 

15 electrical services shall be the residence of the pur16 chaser. 

17 ‘‘(f) FINANCIAL INTERMEDIATION SERVICES.—The 

18 destination of financial intermediation services shall be the 

19 residence of the purchaser. 

20 ‘‘(g) RENTS PAID FOR THE LEASE OF TANGIBLE

21 PROPERTY.— 

22 ‘‘(1) GENERAL RULE.—Except as provided in 

23 paragraph (2), the destination of rents paid for the 

24 lease of tangible property and leaseholds on such 


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1 property shall be where the property is located while 

2 in use. 

3 ‘‘(2) LAND VEHICLES; AIRCRAFT, WATER

4 CRAFT.—The destination of rental and lease pay5 ments on land vehicles, aircraft and water craft shall 

6 be— 

7 ‘‘(A) in the case of rentals and leases of a 

8 term of 1 month or less, the location where the 

9 land vehicle, aircraft, or water craft was origi10 nally delivered to the renter or lessee, and 

11 ‘‘(B) in the case of rentals and leases of a 

12 term greater than 1 month, the residence of the 

13 renter or lessee. 

14 ‘‘(h) ALLOCATION RULES.—For purposes of allo15 cating revenue— 

16 ‘‘(1) between or among administering States 

17 from taxes imposed by this subtitle or from State 

18 sales taxes administered by third-party admin19 istering States, or 

20 ‘‘(2) between or among States imposing con21 forming State sales taxes, 

22 the revenue shall be allocated to those States that are the 

23 destination of the taxable property or service. 

24 ‘‘(i) FEDERAL OFFICE OF REVENUE ALLOCATION.— 

25 The Secretary shall establish an Office of Revenue AllocaVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00182 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 tion to arbitrate any claims or disputes among admin2 istering States as to the destination of taxable property 

3 and services for purposes of allocating revenue between or 

4 among the States from taxes imposed by this subtitle. The 

5 determination of the Administrator of the Office of Rev6 enue Allocation shall be subject to judicial review in any 

7 Federal court with competent jurisdiction. The standard 

8 of review shall be abuse of discretion. 

9 ‘‘SEC. 406. GENERAL ADMINISTRATIVE MATTERS. 

10 ‘‘(a) IN GENERAL.—The Secretary and each sales tax 

11 administering authority may employ such persons as may 

12 be necessary for the administration of this subtitle and 

13 may delegate to employees the authority to conduct inter14 views, hearings, prescribe rules, promulgate regulations, 

15 and perform such other duties as are required by this sub16 title. 

17 ‘‘(b) RESOLUTION OF ANY INCONSISTENT RULES

18 AND REGULATIONS.—In the event that the Secretary and 

19 any sales tax administering authority have issued incon20 sistent rules or regulations, any lawful rule or regulation 

21 issued by the Secretary shall govern. 

22 ‘‘(c) ADEQUATE NOTICE TO BE PROVIDED.—Except 

23 in the case of an emergency declared by the Secretary (and 

24 not his designee), no rule or regulation issued by the Sec25 retary with respect to any internal revenue law shall take 


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1 effect before 90 days have elapsed after its publication in 

2 the Federal Register. Upon issuance, the Secretary shall 

3 provide copies of all rules or regulations issued under this 

4 title to each sales tax administering authority. 

5 ‘‘(d) NO RULES, RULINGS, OR REGULATIONS WITH

6 RETROACTIVE EFFECT.—No rule, ruling, or regulation 

7 issued or promulgated by the Secretary relating to any in8 ternal revenue law or by a sales tax administering author9 ity shall apply to a period prior to its publication in the 

10 Federal Register (or State equivalent) except that a regu11 lation may take retroactive effect to prevent abuse. 

12 ‘‘(e) REVIEW OF IMPACT OF REGULATIONS, RULES, 

13 AND RULINGS ON SMALL BUSINESS.— 

14 ‘‘(1) SUBMISSION TO SMALL BUSINESS ADMIN15 ISTRATION.—After publication of any proposed or 

16 temporary regulation by the Secretary relating to in17 ternal revenue laws, the Secretary shall submit such 

18 regulation to the Chief Counsel for Advocacy of the 

19 Small Business Administration for comment on the 

20 impact of such regulation on small businesses. Not 

21 later than the date 30 days after the date of such 

22 submission, the Chief Counsel for Advocacy of the 

23 Small Business Administration shall submit com24 ments on such regulation to the Secretary. 


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1 ‘‘(2) CONSIDERATION OF COMMENTS.—In pre2 scribing any final regulation which supersedes a pro3 posed or temporary regulation which had been sub4 mitted under this subsection to the Chief Counsel 

5 for Advocacy of the Small Business Administration, 

6 the Secretary shall— 

7 ‘‘(A) consider the comments of the Chief 

8 Counsel for Advocacy of the Small Business 

9 Administration on such proposed or temporary 

10 regulation, and 

11 ‘‘(B) in promulgating such final regulation, 

12 include a narrative that describes the response 

13 to such comments. 

14 ‘‘(3) SUBMISSION OF CERTAIN FINAL REGULA15 TION.—In the case of promulgation by the Secretary 

16 of any final regulations (other than a temporary reg17 ulation) which do not supersede a proposed regula18 tion, the requirements of paragraphs (1) and (2) 

19 shall apply, except that the submission under para20 graph (1) shall be made at least 30 days before the 

21 date of such promulgation, and the consideration 

22 and discussion required under paragraph (2) shall 

23 be made in connection with the promulgation of such 

24 final regulation. 


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1 ‘‘(f) SMALL BUSINESS REGULATORY SAFEGUARDS.— 

2 The Small Business Regulatory Enforcement Fairness Act 

3 (Public Law 104–121; 110 Stat. 857 (‘SBREFA’)) and 

4 the Regulatory Flexibility Act (5 U.S.C. 601–612 

5 (‘RFA’)) shall apply to regulations promulgated under this 

6 subtitle. 

7 ‘‘SEC. 407. JURISDICTION. 

8 ‘‘(a) STATE JURISDICTION.—A sales tax admin9 istering authority shall have jurisdiction over any gross 

10 payments made which have a destination (as determined 

11 in accordance with section 405) within the State of said 

12 sales tax administering authority. This grant of jurisdic13 tion is not exclusive of any other jurisdiction that such 

14 sales tax administering authority may have. 

15 ‘‘(b) FEDERAL JURISDICTION.—The grant of juris16 diction in subsection (a) shall not be in derogation of Fed17 eral jurisdiction over the same matter. The Federal Gov18 ernment shall have the right to exercise preemptive juris19 diction over matters relating to the taxes imposed by this 

20 subtitle. 

21 ‘‘CHAPTER 5—OTHER ADMINISTRATIVE 

22 PROVISIONS 

‘‘Sec. 501. Monthly reports and payments. 

‘‘Sec. 502. Registration. 

‘‘Sec. 503. Accounting. 

‘‘Sec. 504. Penalties. 

‘‘Sec. 505. Burden of persuasion and burden of production. 

‘‘Sec. 506. Attorneys’ and accountancy fees. 

‘‘Sec. 507. Summons, examinations, audits, etc. 


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‘‘Sec. 508. Records. 

‘‘Sec. 509. Tax to be separately stated and charged. 

‘‘Sec. 510. Coordination with title 11. 

‘‘Sec. 511. Applicable interest rate. 

1 ‘‘SEC. 501. MONTHLY REPORTS AND PAYMENTS. 

2 ‘‘(a) TAX REPORTS AND FILING DATES.— 

3 ‘‘(1) IN GENERAL.—On or before the 15th day 

4 of each month, each person who is— 

5 ‘‘(A) liable to collect and remit the tax im6 posed by this subtitle by reason of section 

7 103(a), or 

8 ‘‘(B) liable to pay tax imposed by this sub9 title which is not collected pursuant to section 

10 103(a), 

11 shall submit to the appropriate sales tax admin12 istering authority (in a form prescribed by the Sec13 retary) a report relating to the previous calendar 

14 month. 

15 ‘‘(2) CONTENTS OF REPORT.—The report re16 quired under paragraph (1) shall set forth— 

17 ‘‘(A) the gross payments referred to in sec18 tion 101, 

19 ‘‘(B) the tax collected under chapter 4 in 

20 connection with such payments, 

21 ‘‘(C) the amount and type of any credit 

22 claimed, and 


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1 ‘‘(D) other information reasonably required 

2 by the Secretary or the sales tax administering 

3 authority for the administration, collection, and 

4 remittance of the tax imposed by this subtitle. 

5 ‘‘(b) TAX PAYMENTS DATE.— 

6 ‘‘(1) GENERAL RULE.—The tax imposed by this 

7 subtitle during any calendar month is due and shall 

8 be paid to the appropriate sales tax administering 

9 authority on or before the 15th day of the suc10 ceeding month. Both Federal tax imposed by this 

11 subtitle and conforming State sales tax (if any) shall 

12 be paid in 1 aggregate payment. 

13 ‘‘(2) CROSS REFERENCE.—See subsection (e) 

14 relating to remitting of separate segregated funds 

15 for sellers that are not small sellers. 

16 ‘‘(c) EXTENSIONS FOR FILING REPORTS.— 

17 ‘‘(1) AUTOMATIC EXTENSIONS FOR NOT MORE

18 THAN 30 DAYS.—On application, an extension of not 

19 more than 30 days to file reports under subsection 

20 (a) shall be automatically granted. 

21 ‘‘(2) OTHER EXTENSIONS.—On application, ex22 tensions of 30 to 60 days to file such reports shall 

23 be liberally granted by the sales tax administering 

24 authority for reasonable cause. Extensions greater 


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1 than 60 days may be granted by the sales tax ad2 ministering authority to avoid hardship. 

3 ‘‘(3) NO EXTENSION FOR PAYMENT OF

4 TAXES.—Notwithstanding paragraphs (1) and (2), 

5 no extension shall be granted with respect to the 

6 time for paying or remitting the taxes under this 

7 subtitle. 

8 ‘‘(d) TELEPHONE REPORTING OF VIOLATIONS.—The 

9 Secretary shall establish a system under which a violation 

10 of this subtitle can be brought to the attention of the sales 

11 tax administering authority for investigation through the 

12 use of a toll-free telephone number and otherwise. 

13 ‘‘(e) SEPARATE SEGREGATED ACCOUNTS.— 

14 ‘‘(1) IN GENERAL.—Any registered seller that 

15 is not a small seller shall deposit all sales taxes col16 lected pursuant to section 103 in a particular week 

17 in a separate segregated account maintained at a 

18 bank or other financial institution within 3 business 

19 days of the end of such week. Said registered seller 

20 shall also maintain in that account sufficient funds 

21 to meet the bank or financial institution minimum 

22 balance requirements, if any, and to pay account 

23 fees and costs. 

24 ‘‘(2) SMALL SELLER.—For purposes of this 

25 subsection, a small seller is any person that has not 


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1 collected $20,000 or more of the taxes imposed by 

2 this subtitle in any of the previous 12 months. 

3 ‘‘(3) LARGE SELLERS.—Any seller that has col4 lected $100,000 or more of the taxes imposed by 

5 this subtitle in any of the previous 12 months is a 

6 large seller. A large seller shall remit to the sales tax 

7 administering authority the entire balance of depos8 ited taxes in its separate segregated account on the 

9 first business day following the end of the calendar 

10 week. The Secretary may by regulation require the 

11 electronic transfer of funds due from large sellers. 

12 ‘‘(4) WEEK.—For purposes of this subsection, 

13 the term ‘week’ shall mean the 7-day period ending 

14 on a Friday. 

15 ‘‘(f) DETERMINATION OF REPORT FILING DATE.— 

16 A report filed pursuant to subsection (a) shall be deemed 

17 filed when— 

18 ‘‘(1) deposited in the United States mail, post19 age prepaid, addressed to the sales tax administering 

20 authority, 

21 ‘‘(2) delivered and accepted at the offices of the 

22 sales tax administering authority, 

23 ‘‘(3) provided to a designated commercial pri24 vate courier service for delivery within 2 days to the 


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1 sales tax administering authority at the address of 

2 the sales tax administering authority, or 

3 ‘‘(4) by other means permitted by the Sec4 retary. 

5 ‘‘(g) SECURITY REQUIREMENTS.—A large seller 

6 (within the meaning of subsection (e)(3)) shall be required 

7 to provide security in an amount equal to the greater of 

8 $100,000 or one and one-half times the seller’s average 

9 monthly tax liability during the previous 6 calendar 

10 months. Security may be a cash bond, a bond from a sur11 ety company approved by the Secretary, a certificate of 

12 deposit, or a State or United States Treasury bond. A 

13 bond qualifying under this subsection must be a con14 tinuing instrument for each calendar year (or portion 

15 thereof) that the bond is in effect. The bond must remain 

16 in effect until the surety or sureties are released and dis17 charged. Failure to provide security in accordance with 

18 this section shall result in revocation of the seller’s section 

19 502 registration. If a person who has provided security 

20 pursuant to this subsection— 

21 ‘‘(1) fails to pay an amount indicated in a final 

22 notice of amount due under this subtitle (within the 

23 meaning of section 605(d)), 

24 ‘‘(2) no Taxpayer Assistance Order is in effect 

25 relating to the amount due, 


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1 ‘‘(3) either the time for filing an appeal pursu2 ant to section 604 has passed or the appeal was de3 nied, and 

4 ‘‘(4) the amount due is not being litigated in 

5 any judicial forum, 

6 then the security or part of the security, as the case may 

7 be, may be forfeited in favor of the Secretary to the extent 

8 of such tax due (plus interest if any). 

9 ‘‘(h) REWARDS PROGRAM.—The Secretary is author10 ized to maintain a program of awards wherein individuals 

11 that assist the Secretary or sales tax administering au12 thorities in discovering or prosecuting tax fraud may be 

13 remunerated. 

14 ‘‘(i) CROSS REFERENCE.—For interest due on taxes 

15 remitted late, see section 6601. 

16 ‘‘SEC. 502. REGISTRATION. 

17 ‘‘(a) IN GENERAL.—Any person liable to collect and 

18 remit taxes pursuant to section 103(a) who is engaged in 

19 a trade or business shall register as a seller with the sales 

20 tax administering authority administering the taxes im21 posed by this subtitle. 

22 ‘‘(b) AFFILIATED FIRMS.—Affiliated firms shall be 

23 treated as 1 person for purposes of this section. Affiliated 

24 firms may elect, upon giving notice to the Secretary in 


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1 a form prescribed by the Secretary, to treat separate firms 

2 as separate persons for purposes of this subtitle. 

3 ‘‘(c) DESIGNATION OF TAX MATTERS PERSON.— 

4 Every person registered pursuant to subsection (a) shall 

5 designate a tax matters person who shall be an individual 

6 whom the sales tax administering authority may contact 

7 regarding tax matters. Each person registered must pro8 vide notice of a change in the identity of the tax matters 

9 person within 30 days of said change. 

10 ‘‘(d) EFFECT OF FAILURE TO REGISTER.—Any per11 son that is required to register and who fails to do so is 

12 prohibited from selling taxable property or services. The 

13 Secretary or a sales tax administering authority may bring 

14 an action seeking a temporary restraining order, an in15 junction, or such other order as may be appropriate to 

16 enforce this section. 

17 ‘‘SEC. 503. ACCOUNTING. 

18 ‘‘(a) CASH METHOD TO BE USED GENERALLY.— 

19 Registered sellers and other persons shall report trans20 actions using the cash method of accounting unless an 

21 election to use the accrual method of accounting is made 

22 pursuant to subsection (b). 

23 ‘‘(b) ELECTION TO USE ACCRUAL METHOD.—A per24 son may elect with respect to a calender year to remit 


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1 taxes and report transactions with respect to the month 

2 where a sale was invoiced and accrued. 

3 ‘‘(c) CROSS REFERENCE.—See section 205 for rules 

4 relating to bad debts for sellers electing the accrual meth5 od. 

6 ‘‘SEC. 504. PENALTIES. 

7 ‘‘(a) FAILURE TO REGISTER.—Each person who is 

8 required to register pursuant to section 502 but fails to 

9 do so prior to notification by the sales tax administering 

10 authority shall be liable for a penalty of $500. 

11 ‘‘(b) RECKLESS OR WILLFUL FAILURE TO COLLECT

12 TAX.— 

13 ‘‘(1) CIVIL PENALTY; FRAUD.—Each person 

14 who is required to and recklessly or willfully fails to 

15 collect taxes imposed by this subtitle shall be liable 

16 for a penalty equal to the greater of $500 or 20 per17 cent of tax not collected. 

18 ‘‘(2) CRIMINAL PENALTY.—Each person who is 

19 required to and willfully fails as part of a trade or 

20 business to collect taxes imposed by this subtitle 

21 may be fined an amount up to the amount deter22 mined in accordance with paragraph (1) or impris23 oned for a period of not more than 1 year or both. 

24 ‘‘(c) RECKLESS OR WILLFUL ASSERTION OF INVALID

25 EXEMPTION.— 


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1 ‘‘(1) CIVIL PENALTY; FRAUD.—Each person 

2 who recklessly or willfully asserts an invalid inter3 mediate or export sales exemption from the taxes 

4 imposed by this subtitle shall be liable for a penalty 

5 equal to the greater of $500 or 20 percent of the tax 

6 not collected or remitted. 

7 ‘‘(2) CRIMINAL PENALTY.—Each person who 

8 willfully asserts an invalid intermediate or export 

9 sales exemption from the taxes imposed by this sub10 title may be fined an amount up to the amount de11 termined in accordance with paragraph (1) or im12 prisoned for a period of not more than 1 year or 

13 both. 

14 ‘‘(d) RECKLESS OR WILLFUL FAILURE TO REMIT

15 TAX COLLECTED.— 

16 ‘‘(1) CIVIL PENALTY; FRAUD.—Each person 

17 who is required to and recklessly or willfully fails to 

18 remit taxes imposed by this subtitle and collected 

19 from purchasers shall be liable for a penalty equal 

20 to the greater of $1,000 or 50 percent of the tax not 

21 remitted. 

22 ‘‘(2) CRIMINAL PENALTY.—Each person who 

23 willfully fails to remit taxes imposed by this subtitle 

24 and collected from purchasers may be fined an 

25 amount up to the amount determined in accordance 


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1 with paragraph (1) or imprisoned for a period of not 

2 more than 2 years or both. 

3 ‘‘(e) RECKLESS OR WILLFUL FAILURE TO PAY

4 TAX.—Each person who is required to and recklessly or 

5 willfully fails to pay taxes imposed by this subtitle shall 

6 be liable for a penalty equal to the greater of $500 or 

7 20 percent of the tax not paid. 

8 ‘‘(f) PENALTY FOR LATE FILING.— 

9 ‘‘(1) IN GENERAL.—In the case of a failure by 

10 any person who is required to and fails to file a re11 port required by section 501 on or before the due 

12 date (determined with regard to any extension) for 

13 such report, such person shall pay a penalty for each 

14 month or fraction thereof that said report is late 

15 equal to the greater of— 

16 ‘‘(A) $50, or 

17 ‘‘(B) 0.5 percent of the gross payments re18 quired to be shown on the report. 

19 ‘‘(2) INCREASED PENALTY ON RETURNS FILED

20 AFTER WRITTEN INQUIRY.—The amount of the pen21 alty under paragraph (1) shall be doubled with re22 spect to any report filed after a written inquiry with 

23 respect to such report is received by the taxpayer 

24 from the sales tax administering authority. 


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1 ‘‘(3) LIMITATION.—The penalty imposed under 

2 this subsection shall not exceed 12 percent. 

3 ‘‘(4) EXCEPTIONS.— 

4 ‘‘(A) REASONABLE CAUSE.—No penalty 

5 shall be imposed under this subsection with re6 spect to any failure if it is shown that such fail7 ure is due to reasonable cause. 

8 ‘‘(B) OTHER WAIVER AUTHORITY.—In ad9 dition to penalties not imposed by reason of 

10 subparagraph (A), the sales tax administering 

11 authority, on application, shall waive the pen12 alty imposed by paragraph (1) once per reg13 istered person per 24-month period. The pre14 ceding sentence shall not apply to a penalty de15 termined under paragraph (2). 

16 ‘‘(g) PENALTY FOR WILLFULLY OR RECKLESSLY AC17 CEPTING A FALSE INTERMEDIATE OR EXPORT SALES

18 CERTIFICATE.—A person who willingly or recklessly ac19 cepts a false intermediate or export sales certificate shall 

20 pay a penalty equal to 20 percent of the tax not collected 

21 by reason of said acceptance. 

22 ‘‘(h) PENALTY FOR LATE REMITTANCE OF TAXES.— 

23 ‘‘(1) IN GENERAL.—A person who is required 

24 to timely remit taxes imposed by this subtitle and 

25 remits taxes more than 1 month after such taxes are 


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1 due shall pay a penalty equal to 1 percent per month 

2 (or fraction thereof) from the due date. 

3 ‘‘(2) LIMITATION.—The penalty imposed under 

4 this subsection shall not exceed 24 percent. 

5 ‘‘(3) EXCEPTIONS FOR REASONABLE CAUSE.— 

6 No penalty shall be imposed under paragraph (1) 

7 with respect to any late remittance if it is shown 

8 that such late remittance is due to reasonable cause. 

9 ‘‘(i) PENALTY FOR FILING FALSE REBATE CLAIM.— 

10 ‘‘(1) CIVIL PENALTY; FRAUD.—A person who 

11 willingly or recklessly files a false claim for a family 

12 consumption allowance rebate (within the meaning 

13 of chapter 3) shall— 

14 ‘‘(A) pay a penalty equal to the greater of 

15 $500 or 50 percent of the claimed annual re16 bate amount not actually due, and 

17 ‘‘(B) repay any rebates received as a result 

18 of the false rebate claim (together with inter19 est). 

20 ‘‘(2) CRIMINAL PENALTY.—A person who will21 ingly files a false claim for a family consumption al22 lowance rebate (within the meaning of chapter 3) 

23 may be fined an amount up to the amount deter24 mined in accordance with paragraph (1) or impris25 oned for a period not more than 1 year or both. 


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1 ‘‘(j) PENALTY FOR BAD CHECK.—If any check or 

2 money order in payment of any amount receivable under 

3 this subtitle is not duly paid, in addition to other penalties 

4 provided by law, the person who tendered such check shall 

5 pay a penalty equal to the greater of— 

6 ‘‘(1) $25, or 

7 ‘‘(2) two percent of the amount of such check. 

8 ‘‘(k) PENALTY FOR FAILURE TO MAINTAIN A SEPA9 RATE SEGREGATED ACCOUNT.—Any person required to 

10 maintain a separate segregated account pursuant to sec11 tion 501(e) that fails to maintain such a separate seg12 regated account shall pay a penalty of $1,000. 

13 ‘‘(l) PENALTY FOR FAILURE TO DEPOSIT COL14 LECTED TAXES IN A SEPARATE SEGREGATED AC15 COUNT.—Any person required to deposit collected taxes 

16 into a separate segregated account maintained pursuant 

17 to section 501(e) that fails to timely deposit said taxes 

18 into the separate segregated account shall pay a penalty 

19 equal to 1 percent of the amount required to be deposited. 

20 The penalty imposed by the previous sentence shall be tri21 pled unless said taxes have been deposited in the separate 

22 segregated account or remitted to the sales tax admin23 istering authority within 16 days of the date said deposit 

24 was due. 


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1 ‘‘(m) JOINT AND SEVERAL LIABILITY FOR TAX MAT2 TERS PERSON AND RESPONSIBLE OFFICERS.—The tax 

3 matters person (designated pursuant to section 502(c)) 

4 and responsible officers or partners of a firm shall be 

5 jointly and severally liable for the tax imposed by this sub6 title and penalties imposed by this subtitle. 

7 ‘‘(n) RIGHT OF CONTRIBUTION.—If more than 1 per8 son is liable with respect to any tax or penalty imposed 

9 by this subtitle, each person who paid such tax or penalty 

10 shall be entitled to recover from other persons who are 

11 liable for such tax or penalty an amount equal to the ex12 cess of the amount paid by such person over such person’s 

13 proportionate share of the tax or penalty. 

14 ‘‘(o) CIVIL PENALTIES AND CRIMINAL FINES NOT

15 EXCLUSIVE.— 

16 ‘‘(1) CIVIL PENALTY.—The fact that a civil 

17 penalty has been imposed shall not prevent the im18 position of a criminal fine. 

19 ‘‘(2) CRIMINAL FINE.—The fact that a criminal 

20 fine has been imposed shall not prevent the imposi21 tion of a civil penalty. 

22 ‘‘(p) CONFIDENTIALITY.—Any person who violates 

23 the requirements relating to confidentiality of tax informa24 tion (as provided in section 605(e)) may be fined up to 


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1 $10,000 or imprisoned for a period of not more than 1 

2 year, or both. 

3 ‘‘(q) CROSS REFERENCE.—For interest due on late 

4 payments, see section 6601. 

5 ‘‘SEC. 505. BURDEN OF PERSUASION AND BURDEN OF PRO6 DUCTION. 

7 ‘‘In all disputes concerning taxes imposed by this sub8 title, the person engaged in a dispute with the sales tax 

9 administering authority or the Secretary, as the case may 

10 be, shall have the burden of production of documents and 

11 records but the sales tax administering authority or the 

12 Secretary shall have the burden of persuasion. In all dis13 putes concerning an exemption claimed by a purchaser, 

14 if the seller has on file an intermediate sale or export sale 

15 certificate from the purchaser and did not have reasonable 

16 cause to believe that the certificate was improperly pro17 vided by the purchaser with respect to such purchase 

18 (within the meaning of section 103), then the burden of 

19 production of documents and records relating to that ex20 emption shall rest with the purchaser and not with the 

21 seller. 

22 ‘‘SEC. 506. ATTORNEYS’ AND ACCOUNTANCY FEES. 

23 ‘‘In all disputes concerning taxes imposed by this sub24 title, the person engaged in a dispute with the sales tax 

25 administering authority or the Secretary, as the case may 


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1 be, shall be entitled to reasonable attorneys’ fees, account2 ancy fees, and other reasonable professional fees incurred 

3 in direct relation to the dispute unless the sales tax admin4 istering authority or the Secretary establishes that its po5 sition was substantially justified. 

6 ‘‘SEC. 507. SUMMONS, EXAMINATIONS, AUDITS, ETC. 

7 ‘‘(a) SUMMONS.—Persons are subject to administra8 tive summons by the sales tax administering authority for 

9 records, documents, and testimony required by the sales 

10 tax administering authority to accurately determine liabil11 ity for tax under this subtitle. A summons shall be served 

12 by the sales tax administering authority by an attested 

13 copy delivered in hand to the person to whom it is directed 

14 or left at his last known address. The summons shall de15 scribe with reasonable certainty what is sought. 

16 ‘‘(b) EXAMINATIONS AND AUDITS.—The sales tax ad17 ministering authority has the authority to conduct at a 

18 reasonable time and place examinations and audits of per19 sons who are or may be liable to collect and remit tax 

20 imposed by this subtitle and to examine the books, papers, 

21 records, or other data of such persons which may be rel22 evant or material to the determination of tax due. 

23 ‘‘(c) LIMITATION ON AUTHORITY IN CASE OF REFER24 RAL.—No administrative summons may be issued by the 

25 sales tax administering authority and no action be comVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00202 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 menced to enforce an administrative summons with re2 spect to any person if a Justice Department referral or 

3 referral to a State Attorney General’s Office is in effect 

4 with respect to such person relating to a tax imposed by 

5 this subtitle. Such referral is in effect with respect to any 

6 person if the sales tax administering authority or the Sec7 retary has recommended to the Justice Department or a 

8 State Attorney General’s Office a grand jury investigation 

9 of such person or a criminal prosecution of such person 

10 that contemplates criminal sanctions under this title. A 

11 referral shall be terminated when— 

12 ‘‘(1) the Justice Department or a State Attor13 ney General’s Office notifies the sales tax admin14 istering authority or the Secretary that he will not— 

15 ‘‘(A) prosecute such person for any offense 

16 connected with the internal revenue laws, 

17 ‘‘(B) authorize a grand jury investigation 

18 of such person with respect to such offense, or 

19 ‘‘(C) continue such a grand jury investiga20 tion, or 

21 ‘‘(2) a final disposition has been made of any 

22 criminal proceeding connected with the internal rev23 enue laws, or conforming State sales tax, against 

24 such person. 


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1 ‘‘SEC. 508. RECORDS. 

2 ‘‘Any person liable to remit taxes pursuant to this 

3 subtitle shall keep records (including a record of all section 

4 509 receipts provided, complete records of intermediate 

5 and export sales, including purchaser’s intermediate and 

6 export sales certificates and tax number and the net of 

7 tax amount of purchase) sufficient to determine the 

8 amounts reported, collected, and remitted for a period of 

9 6 years after the latter of the filing of the report for which 

10 the records formed the basis or when the report was due 

11 to be filed. Any purchaser who purchased taxable property 

12 or services but did not pay tax by reason of asserting an 

13 intermediate and export sales exemption shall keep records 

14 sufficient to determine whether said exemption was valid 

15 for a period of 7 years after the purchase of taxable prop16 erty or services. 

17 ‘‘SEC. 509. TAX TO BE SEPARATELY STATED AND CHARGED. 

18 ‘‘(a) IN GENERAL.—For each purchase of taxable 

19 property or services for which a tax is imposed by section 

20 101, the seller shall charge the tax imposed by section 101 

21 separately from the purchase. For purchase of taxable 

22 property or services for which a tax is imposed by section 

23 101, the seller shall provide to the purchaser a receipt for 

24 each transaction that includes— 

25 ‘‘(1) the property or services price exclusive of 

26 tax, 


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1 ‘‘(2) the amount of tax paid, 

2 ‘‘(3) the property or service price inclusive of 

3 tax, 

4 ‘‘(4) the tax rate (the amount of tax paid (per 

5 paragraph (2)) divided by the property or service 

6 price inclusive of tax (per paragraph (3)), 

7 ‘‘(5) the date that the good or service was sold, 

8 ‘‘(6) the name of the vendor, and 

9 ‘‘(7) the vendor registration number. 

10 ‘‘(b) VENDING MACHINE EXCEPTION.—The require11 ments of subsection (a) shall be inapplicable in the case 

12 of sales by vending machines. Vending machines for pur13 poses of this subsection are machines— 

14 ‘‘(1) that dispense taxable property in exchange 

15 for coins or currency, and 

16 ‘‘(2) that sell no single item exceeding $10 per 

17 unit in price. 

18 ‘‘(c) FINANCIAL INTERMEDIATION SERVICES EXCEP19 TION.—The requirements of subsection (a) shall be inap20 plicable in the case of sales financial intermediation serv21 ice. Receipts shall be issued when the tax is imposed (in 

22 accordance with section 803 (relating to timing of tax on 

23 financial intermediation services)). 


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1 ‘‘SEC. 510. COORDINATION WITH TITLE 11. 

2 ‘‘No addition to tax shall be made under section 504 

3 with respect to a period during which a case is pending 

4 under title 11, United States Code— 

5 ‘‘(1) if such tax was incurred by the estate and 

6 the failure occurred pursuant to an order of the 

7 court finding probable insufficiency of funds of the 

8 estate to pay administrative expenses, or 

9 ‘‘(2) if— 

10 ‘‘(A) such tax was incurred by the debtor 

11 before the earlier of the order for relief or (in 

12 the involuntary case) the appointment of a 

13 trustee, and 

14 ‘‘(B) the petition was filed before the due 

15 date prescribed by law (including extensions) 

16 for filing a return of such tax, or the date for 

17 making the addition to tax occurs on or after 

18 the date the petition was filed. 

19 ‘‘SEC. 511. APPLICABLE INTEREST RATE. 

20 ‘‘(a) IN GENERAL.— 

21 ‘‘(1) FEDERAL SHORT-TERM RATE.—In the 

22 case of a debt instrument, investment, financing 

23 lease, or account with a term of not over 3 years, 

24 the applicable interest rate is the Federal short-term 

25 rate. 


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1 ‘‘(2) FEDERAL MID-TERM RATE.—In the case 

2 of a debt instrument, investment, financing lease, or 

3 account with a term of over 3 years but not over 9 

4 years, the applicable interest rate is the Federal 

5 mid-term rate. 

6 ‘‘(3) FEDERAL LONG-TERM RATE.—In the case 

7 of a debt instrument, investment, financing lease, or 

8 account with a term of over 9 years, the applicable 

9 interest rate is the Federal long-term rate. 

10 ‘‘(b) FEDERAL SHORT-TERM RATE.—The Federal 

11 short-term rate shall be the rate determined by the Sec12 retary based on the average market yield (selected by the 

13 Secretary and ending in the calendar month in which the 

14 determination is made during any one month) on out15 standing marketable obligations of the United States with 

16 remaining periods to maturity of 3 years or fewer. 

17 ‘‘(c) FEDERAL MID-TERM RATE.—The Federal mid18 term rate shall be the rate determined by the Secretary 

19 based on the average market yield (selected by the Sec20 retary and ending in the calendar month in which the de21 termination is made during any 1 month) on outstanding 

22 marketable obligations of the United States with remain23 ing periods to maturity of more than 3 years and not over 

24 9 years. 


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1 ‘‘(d) FEDERAL LONG-TERM RATE.—The Federal 

2 long-term rate shall be the rate determined by the Sec3 retary based on the average market yield (selected by the 

4 Secretary and ending in the calendar month in which the 

5 determination is made during any 1 month) on out6 standing marketable obligations of the United States with 

7 remaining periods to maturity of over 9 years. 

8 ‘‘(e) DETERMINATION OF RATES.—During each cal9 endar month, the Secretary shall determine the Federal 

10 short-term rate, the Federal mid-term rate and the Fed11 eral long-term rate which shall apply during the following 

12 calendar month. 

13 ‘‘CHAPTER 6—COLLECTIONS; APPEALS; 

14 TAXPAYER RIGHTS 

‘‘Sec. 601. Collections. 

‘‘Sec. 602. Power to levy, etc. 

‘‘Sec. 603. Problem resolution offices. 

‘‘Sec. 604. Appeals. 

‘‘Sec. 605. Taxpayer rights. 

‘‘Sec. 606. Installment agreements; compromises. 

15 ‘‘SEC. 601. COLLECTIONS. 

16 ‘‘The sales tax administering authority shall collect 

17 the taxes imposed by this subtitle, except as provided in 

18 section 404 (relating to Federal administration in certain 

19 States). 

20 ‘‘SEC. 602. POWER TO LEVY, ETC. 

21 ‘‘(a) IN GENERAL.—The sales tax administering au22 thority may levy and seize property, garnish wages or salVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00208 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 ary and file liens to collect amounts due under this sub2 title, pursuant to enforcement of— 

3 ‘‘(1) a judgment duly rendered by a court of 

4 law, 

5 ‘‘(2) an amount due if the taxpayer has failed 

6 to exercise his appeals rights under section 604, or 

7 ‘‘(3) an amount due if the appeals process de8 termined that an amount remained due and the tax9 payer has failed to timely petition the Tax Court for 

10 relief. 

11 ‘‘(b) EXEMPTION FROM LEVY, SEIZURE, AND GAR12 NISHMENTS.—There shall be exempt from levy, seizure, 

13 and garnishment or penalty in connection with any tax 

14 imposed by this subtitle— 

15 ‘‘(1) wearing apparel, school books, fuel, provi16 sions, furniture, personal effects, tools of a trade or 

17 profession, livestock in a household up to an aggre18 gate value of $15,000, and 

19 ‘‘(2) monthly money income equal to 150 per20 cent of the monthly poverty level (as defined in sec21 tion 303). 

22 ‘‘(c) LIENS TO BE TIMELY RELEASED.—Subject to 

23 such reasonable regulations as the Secretary may provide, 

24 any lien imposed with respect to a tax imposed by this 

25 title shall be released not later than 30 days after— 


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1 ‘‘(1) the liability was satisfied or became unen2 forceable, or 

3 ‘‘(2) a bond was accepted as security. 

4 ‘‘SEC. 603. PROBLEM RESOLUTION OFFICES. 

5 ‘‘(a) PROBLEM RESOLUTION OFFICE TO BE ESTAB6 LISHED.—Each sales tax administering authority shall es7 tablish an independent Problem Resolution Office and ap8 point an adequate number of problem resolution officers. 

9 The head of the problem resolution office must be ap10 pointed by, and serve at the pleasure of either the State 

11 Governor (in the case of an administering State) or the 

12 President of the United States. 

13 ‘‘(b) AUTHORITY OF PROBLEM RESOLUTION OFFI14 CERS.—Problem resolution officers shall have the author15 ity to investigate complaints and issue a Taxpayer Assist16 ance Order to administratively enjoin any collection activ17 ity if, in the opinion of the problem resolution officer, said 

18 collection activity is reasonably likely to not be in compli19 ance with law or to prevent hardship (other than by reason 

20 of having to pay taxes lawfully due). Problem resolution 

21 officers shall also have the authority to issue Taxpayer As22 sistance Orders releasing or returning property that has 

23 been levied upon or seized, ordering that a lien be released 

24 and that garnished wages be returned. A Taxpayer Assist25 ance Order may only be rescinded or modified by the probVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00210 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 lem resolution officer that issued it, by the highest official 

2 in the relevant sales tax administering authority or by its 

3 general counsel upon a finding that the collection activity 

4 is justified by clear and convincing evidence. The authority 

5 to reverse this Taxpayer Assistance Order may not be del6 egated. 

7 ‘‘(c) FORM OF REQUEST FOR TAXPAYER ASSISTANCE

8 ORDER.—The Secretary shall establish a form and proce9 dure to aid persons requesting the assistance of the Prob10 lem Resolution Office and to aid the Problem Resolution 

11 Office in understanding the needs of the person seeking 

12 assistance. The use of this form, however, shall not be a 

13 prerequisite to a problem resolution officer taking action, 

14 including issuing a Taxpayer Assistance Order. 

15 ‘‘(d) CONTENT OF TAXPAYER ASSISTANCE ORDER.— 

16 A Taxpayer Assistance Order shall contain the name of 

17 the problem resolution officer, any provision relating to 

18 the running of any applicable period of limitation, the 

19 name of the person that the Taxpayer Assistance Order 

20 assists, the government office (or employee or officer of 

21 said government office) to whom it is directed and the ac22 tion or cessation of action that the Taxpayer Assistance 

23 Order requires of said government officer (or employee or 

24 officer of said government office). The Taxpayer Assist25 ance Order need not contain findings of fact or its legal 


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1 basis; however, the problem resolution officer must provide 

2 findings of fact and the legal basis for the issuance of the 

3 Taxpayer Assistance Order to the sales tax administering 

4 authority upon the request of an officer of said authority 

5 within 2 weeks of the receipt of such request. 

6 ‘‘(e) INDEPENDENCE PROTECTED.—Problem resolu7 tion officers shall not be disciplined or adversely affected 

8 for the issuance of administrative injunctions unless a pat9 tern of issuing injunctions that are manifestly unreason10 able is proven in an administrative hearing by a prepon11 derance of the evidence. 

12 ‘‘(f) OTHER RIGHTS NOT LIMITED.—Nothing in this 

13 section shall limit the authority of the sales tax admin14 istering authority, the registered person or other person 

15 from pursuing any legal remedy in any court with jurisdic16 tion over the dispute at issue. 

17 ‘‘(g) LIMITATIONS.—The running of any applicable 

18 period of limitation shall be suspended for a period of 8 

19 weeks following the issuance of a Taxpayer Assistance 

20 Order or, if specified, for a longer period set forth in the 

21 Taxpayer Assistance Order provided the suspension does 

22 not exceed 6 months. 

23 ‘‘SEC. 604. APPEALS. 

24 ‘‘(a) ADMINISTRATIVE APPEALS.—The sales tax ad25 ministering authority shall establish an administrative apVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00212 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 peals process wherein the registered person or other per2 son in disagreement with a decision of the sales tax admin3 istering authority asserting liability for tax is provided a 

4 full and fair hearing in connection with any disputes said 

5 person has with the sales tax administering authority. 

6 ‘‘(b) TIMING OF ADMINISTRATIVE APPEALS.—Said 

7 administrative appeal must be made within 60 days of re8 ceiving a final notice of amount due pursuant to section 

9 605(d) unless leave for an extension is granted by the ap10 peals officer in a form prescribed by the Secretary. Leave 

11 shall be granted to avoid hardship. 

12 ‘‘SEC. 605. TAXPAYER RIGHTS. 

13 ‘‘(a) RIGHTS TO BE DISCLOSED.—The sales tax ad14 ministering authority shall provide to any person against 

15 whom it has— 

16 ‘‘(1) commenced an audit or investigation, 

17 ‘‘(2) issued a final notice of amount due, 

18 ‘‘(3) filed an administrative lien, levy, or gar19 nishment, 

20 ‘‘(4) commenced other collection action, 

21 ‘‘(5) commenced an action for civil penalties, or 

22 ‘‘(6) any other legal action, 

23 a document setting forth in plain English the rights of 

24 the person. The document shall explain the administrative 

25 appeals process, the authority of the Problem Resolution 


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1 Office (established pursuant to section 603) and how to 

2 contact that Office, the burden of production and persua3 sion that the person and the sales tax administering au4 thority bear (pursuant to section 505), the right of the 

5 person to professional fees (pursuant to section 506), the 

6 right to record interviews and such other rights as the per7 son may possess under this subtitle. Said document will 

8 also set forth the procedures for entering into an install9 ment agreement. 

10 ‘‘(b) RIGHT TO PROFESSIONAL ASSISTANCE.—In all 

11 dealings with the sales tax administering authority, a per12 son shall have the right to assistance, at their own ex13 pense, of one or more professional advisors. 

14 ‘‘(c) RIGHT TO RECORD INTERVIEWS.—Any person 

15 who is interviewed by an agent of the sales tax admin16 istering authority shall have the right to video or audio 

17 tape the interview at the person’s own expense. 

18 ‘‘(d) RIGHT TO FINAL NOTICE OF AMOUNT DUE.— 

19 No collection or enforcement action will be commenced 

20 against a person until 30 days after they have been pro21 vided with a final notice of amount due under this subtitle 

22 by the sales tax administering authority. The final notice 

23 of amount due shall set forth the amount of tax due (along 

24 with any interest and penalties due) and the factual and 

25 legal basis for such amounts being due with sufficient 


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1 specificity that such basis can be understood by a reason2 able person who is not a tax professional reading the no3 tice. The final notice shall be sent by certified mail, return 

4 receipt requested, to— 

5 ‘‘(1) the address last provided by a registered 

6 seller, or 

7 ‘‘(2) the best available address to a person who 

8 is not a registered seller. 

9 ‘‘(e) CONFIDENTIALITY OF TAX INFORMATION.— 

10 ‘‘(1) IN GENERAL.—All reports and report in11 formation (related to any internal revenue law) shall 

12 be confidential and except as authorized by this 

13 title— 

14 ‘‘(A) no officer or employee (including 

15 former officers and employees) of the United 

16 States, 

17 ‘‘(B) no officer or employee (including 

18 former officers and employees) of any State or 

19 local agency who has had access to returns or 

20 return information, and 

21 ‘‘(C) no other person who has had access 

22 to returns or return information, 

23 shall disclose any report or report information ob24 tained by him in any manner in connection with his 

25 service as such officer or employee or otherwise. 


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1 ‘‘(2) DESIGNEES.—The sales tax administering 

2 authority may, subject to such requirements as the 

3 Secretary may impose, disclose the report and report 

4 information of a person to that person or persons as 

5 that person may designate to receive said informa6 tion or return. 

7 ‘‘(3) OTHER SALES TAX ADMINISTERING AU8 THORITIES.—A sales tax administering authority 

9 may impose, disclose the report and report informa10 tion to another sales tax administering authority. 

11 ‘‘(4) INCOMPETENCY.—A sales tax admin12 istering authority may, subject to such requirements 

13 as the Secretary may impose, disclose the report and 

14 report information to the committee, trustee, or 

15 guardian of a person who is incompetent. 

16 ‘‘(5) DECEASED PERSONS.—A sales tax admin17 istering authority may, subject to such requirements 

18 as the Secretary may impose, disclose the report and 

19 report information to the decedent’s— 

20 ‘‘(A) administrator, executor, estate trust21 ee, or 

22 ‘‘(B) heir at law, next of kin, or beneficiary 

23 under a will who has a material interest that 

24 will be affected by the information. 


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1 ‘‘(6) BANKRUPTCY.—A sales tax administering 

2 authority may, subject to such requirements as the 

3 Secretary may impose, disclose the report and report 

4 information to a person’s trustee in bankruptcy. 

5 ‘‘(7) CONGRESS.—Upon written request from 

6 the Chairman of the Committee on Ways and 

7 Means, the Chairman of the Committee on Finance 

8 of the Senate, or the Chairman or Chief of Staff of 

9 the Joint Committee on Taxation, a sales tax admin10 istering authority shall disclose the report and report 

11 information, except that any report or report infor12 mation that can be associated with or otherwise 

13 identify a particular person shall be furnished to 

14 such committee only when sitting in closed executive 

15 session unless such person otherwise consents in 

16 writing to such disclosure. 

17 ‘‘(8) WAIVER OF PRIVACY RIGHTS.—A person 

18 may waive confidentiality rights provided by this sec19 tion. Such waiver must be in writing. 

20 ‘‘(9) INTERNAL USE.—Disclosure of the report 

21 or report information by officers or employees of a 

22 sales tax administering authority to other officers or 

23 employees of a sales tax administering authority in 

24 the ordinary course of tax administration activities 


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1 shall not constitute unlawful disclosure of the report 

2 or report information. 

3 ‘‘(10) STATISTICAL USE.—Upon request in 

4 writing by the Secretary of Commerce, the Secretary 

5 shall furnish such reports and report information to 

6 officers and employees of the Department of Com7 merce as the Secretary may prescribe by regulation 

8 for the purposes of, and only to the extent necessary 

9 in, the structuring of censuses and national eco10 nomic accounts and conducting related statistical ac11 tivities authorized by law. 

12 ‘‘(11) DEPARTMENT OF THE TREASURY.—Re13 turns and return information shall be open for in14 spection by officers and employees of the Depart15 ment of the Treasury whose official duties require 

16 such inspection or disclosure for the purpose of, and 

17 only to the extent necessary for, preparing economic 

18 or financial forecasts, projections, analyses, or esti19 mates. Such inspection or disclosure shall be per20 mitted only upon written request that sets forth the 

21 reasons why such inspection or disclosure is nec22 essary and is signed by the head of the bureau or 

23 office of the Department of the Treasury requesting 

24 the inspection or disclosure. 


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1 ‘‘SEC. 606. INSTALLMENT AGREEMENTS; COMPROMISES. 

2 ‘‘The sales tax administering authority is authorized 

3 to enter into written agreements with any person under 

4 which the person is allowed to satisfy liability for payment 

5 of any tax under this subtitle (and penalties and interest 

6 relating thereto) in installment payments if the sales tax 

7 administering authority determines that such agreement 

8 will facilitate the collection of such liability. The agree9 ment shall remain in effect for the term of the agreement 

10 unless the information that the person provided to the 

11 sales tax administering authority was materially inac12 curate or incomplete. The sales tax administering author13 ity may compromise any amounts alleged to be due. 

14 ‘‘CHAPTER 7—SPECIAL RULES 

‘‘Sec. 701. Hobby activities. 

‘‘Sec. 702. Gaming activities. 

‘‘Sec. 703. Government purchases. 

‘‘Sec. 704. Government enterprises. 

‘‘Sec. 705. Mixed use property. 

‘‘Sec. 706. Not-for-profit organizations. 

15 ‘‘SEC. 701. HOBBY ACTIVITIES. 

16 ‘‘(a) HOBBY ACTIVITIES.—Neither the exemption af17 forded by section 102 for intermediate sales nor the cred18 its available pursuant to section 202 or 203 shall be avail19 able for any taxable property or service purchased for use 

20 in an activity if that activity is not engaged in for-profit. 


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1 ‘‘(b) STATUS DEEMED.—If the activity has received 

2 gross payments for the sale of taxable property or services 

3 that exceed the sum of— 

4 ‘‘(1) taxable property and services purchased, 

5 ‘‘(2) wages and salary paid, and 

6 ‘‘(3) taxes (of any type) paid, 

7 in two or more of the most recent 3 calendar years during 

8 which it operated then the business activity shall be con9 clusively deemed to be engaged in for profit. 

10 ‘‘SEC. 702. GAMING ACTIVITIES. 

11 ‘‘(a) REGISTRATION.—Any person selling one or 

12 more chances is a gaming sponsor and shall register, in 

13 a form prescribed by the Secretary, with the sales tax ad14 ministering authority as a gaming sponsor. 

15 ‘‘(b) CHANCE DEFINED.—For purposes of this sec16 tion, the term ‘chance’ means a lottery ticket, a raffle tick17 et, chips, other tokens, a bet or bets placed, a wager or 

18 wagers placed, or any similar device where the purchase 

19 of the right gives rise to an obligation by the gaming spon20 sor to pay upon the occurrence of— 

21 ‘‘(1) a random or unpredictable event, or 

22 ‘‘(2) an event over which neither the gaming 

23 sponsor nor the person purchasing the chance has 

24 control over the outcome. 


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1 ‘‘(c) CHANCES NOT TAXABLE PROPERTY OR SERV2 ICE.—Notwithstanding any other provision in this sub3 title, a chance is not taxable property or services for pur4 poses of section 101. 

5 ‘‘(d) TAX ON GAMING SERVICES IMPOSED.—A 23- 

6 percent tax is hereby imposed on the taxable gaming serv7 ices of a gaming sponsor. This tax shall be paid and remit8 ted by the gaming sponsor. The tax shall be remitted by 

9 the 15th day of each month with respect to taxable gaming 

10 services during the previous calendar month. 

11 ‘‘(e) TAXABLE GAMING SERVICES DEFINED.—For 

12 purposes of this section, the term ‘taxable gaming services’ 

13 means— 

14 ‘‘(1) gross receipts of the gaming sponsor from 

15 the sale of chances, minus 

16 ‘‘(2) the sum of— 

17 ‘‘(A) total gaming payoffs to chance pur18 chasers (or their designees), and 

19 ‘‘(B) gaming specific taxes (other than the 

20 tax imposed by this section) imposed by the 

21 Federal, State, or local government. 

22 ‘‘SEC. 703. GOVERNMENT PURCHASES. 

23 ‘‘(a) GOVERNMENT PURCHASES.— 

24 ‘‘(1) PURCHASES BY THE FEDERAL GOVERN25 MENT.—Purchases by the Federal Government of 


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1 taxable property and services shall be subject to the 

2 tax imposed by section 101. 

3 ‘‘(2) PURCHASE BY STATE GOVERNMENTS AND

4 THEIR POLITICAL SUBDIVISIONS.—Purchases by 

5 State governments and their political subdivisions of 

6 taxable property and services shall be subject to the 

7 tax imposed by section 101. 

8 ‘‘(b) CROSS REFERENCES.—For purchases by gov9 ernment enterprises see section 704. 

10 ‘‘SEC. 704. GOVERNMENT ENTERPRISES. 

11 ‘‘(a) GOVERNMENT ENTERPRISES TO COLLECT AND

12 REMIT TAXES ON SALES.—Nothing in this subtitle shall 

13 be construed to exempt any Federal, State, or local gov14 ernmental unit or political subdivision (whether or not the 

15 State is an administering State) operating a government 

16 enterprise from collecting and remitting tax imposed by 

17 this subtitle on any sale of taxable property or services. 

18 Government enterprises shall comply with all duties im19 posed by this subtitle and shall be liable for penalties and 

20 subject to enforcement action in the same manner as pri21 vate persons that are not government enterprises. 

22 ‘‘(b) GOVERNMENT ENTERPRISE.—Any entity owned 

23 or operated by a Federal, State, or local governmental unit 

24 or political subdivision that receives gross payments from 

25 private persons is a government enterprise, except that a 


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1 government-owned entity shall not become a government 

2 enterprise for purposes of this section unless in any quar3 ter it has revenues from selling taxable property or serv4 ices that exceed $2,500. 

5 ‘‘(c) GOVERNMENT ENTERPRISES INTERMEDIATE

6 SALES.— 

7 ‘‘(1) IN GENERAL.—Government enterprises 

8 shall not be subject to tax on purchases that would 

9 not be subject to tax pursuant to section 102(b) if 

10 the government enterprise were a private enterprise. 

11 ‘‘(2) EXCEPTION.—Government enterprises 

12 may not use the exemption afforded by section 

13 102(b) to serve as a conduit for tax-free purchases 

14 by government units that would otherwise be subject 

15 to taxation on purchases pursuant to section 703. 

16 Transfers of taxable property or services purchased 

17 exempt from tax from a government enterprise to 

18 such government unit shall be taxable. 

19 ‘‘(d) SEPARATE BOOKS OF ACCOUNT.—Any govern20 ment enterprise must maintain books of account, separate 

21 from the nonenterprise government accounts, maintained 

22 in accordance with generally accepted accounting prin23 ciples. 


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1 ‘‘(e) TRADE OR BUSINESS.—A government enterprise 

2 shall be treated as a trade or business for purposes of this 

3 subtitle. 

4 ‘‘(f) ENTERPRISE SUBSIDIES CONSTITUTE TAXABLE

5 PURCHASE.—A transfer of funds to a government enter6 prise by a government entity without full consideration 

7 shall constitute a taxable government purchase with the 

8 meaning of section 703 to the extent that the transfer of 

9 funds exceeds the fair market value of the consideration. 

10 ‘‘SEC. 705. MIXED USE PROPERTY. 

11 ‘‘(a) MIXED USE PROPERTY OR SERVICE.— 

12 ‘‘(1) MIXED USE PROPERTY OR SERVICE DE13 FINED.—For purposes of this section, the term 

14 ‘mixed use property or service’ is a taxable property 

15 or taxable service used for both taxable use or con16 sumption and for a purpose that would not be sub17 ject to tax pursuant to section 102(a)(1). 

18 ‘‘(2) TAXABLE THRESHOLD.—Mixed use prop19 erty or service shall be subject to tax notwith20 standing section 102(a)(1) unless such property or 

21 service is used more than 95 percent for purposes 

22 that would give rise to an exemption pursuant to 

23 section 102(a)(1) during each calendar year (or por24 tions thereof) it is owned. 


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1 ‘‘(3) MIXED USE PROPERTY OR SERVICES

2 CREDIT.—A person registered pursuant to section 

3 502 is entitled to a business use conversion credit 

4 (pursuant to section 202) equal to the product of— 

5 ‘‘(A) the mixed use property amount, 

6 ‘‘(B) the business use ratio, and 

7 ‘‘(C) the rate of tax imposed by section 

8 101. 

9 ‘‘(4) MIXED USE PROPERTY AMOUNT.—The 

10 mixed use property amount for each month (or frac11 tion thereof) in which the property was owned shall 

12 be— 

13 ‘‘(A) one-three-hundred-sixtieth of the 

14 gross payments for real property for 360 

15 months or until the property is sold, 

16 ‘‘(B) one-eighty-fourth of the gross pay17 ments for tangible personal property for 84 

18 months or until the property is sold, 

19 ‘‘(C) one-sixtieth of the gross payments for 

20 vehicles for 60 months or until the property is 

21 sold, or 

22 ‘‘(D) for other types of taxable property or 

23 services, a reasonable amount or in accordance 

24 with regulations prescribed by the Secretary. 


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1 ‘‘(5) BUSINESS USE RATIO.—For purposes of 

2 this section, the term ‘business use ratio’ means the 

3 ratio of business use to total use for a particular cal4 endar month (or portion thereof if the property was 

5 owned for only part of said calendar month). For ve6 hicles, the business use ratio will be the ratio of 

7 business purpose miles to total miles in a particular 

8 calendar month. For real property, the business use 

9 ratio is the ratio of floor space used primarily for 

10 business purposes to total floor space in a particular 

11 calendar month. For tangible personal property (ex12 cept for vehicles), the business use ratio is the ratio 

13 of total time used for business purposes to total time 

14 used in a particular calendar year. For other prop15 erty or services, the business ratio shall be cal16 culated using a reasonable method. Reasonable 

17 records must be maintained to support a person’s 

18 business use of the mixed use property or service. 

19 ‘‘(b) TIMING OF BUSINESS USE CONVERSION CRED20 IT ARISING OUT OF OWNERSHIP OF MIXED USE PROP21 ERTY.—A person entitled to a credit pursuant to sub22 section (a)(3) arising out of the ownership of mixed use 

23 property must account for the mixed use on a calendar 

24 year basis, and may file for the credit with respect to 


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1 mixed use property in any month following the calendar 

2 year giving rise to the credit. 

3 ‘‘(c) CROSS REFERENCE.—For business use conver4 sion credit, see section 202. 

5 ‘‘SEC. 706. NOT-FOR-PROFIT ORGANIZATIONS. 

6 ‘‘(a) NOT-FOR-PROFIT ORGANIZATIONS.—Dues, con7 tributions, and similar payments to qualified not-for-profit 

8 organizations shall not be considered gross payments for 

9 taxable property or services for purposes of this subtitle. 

10 ‘‘(b) DEFINITION.—For purposes of this section, the 

11 term ‘qualified not-for-profit organization’ means a not12 for-profit organization organized and operated exclu13 sively— 

14 ‘‘(1) for religious, charitable, scientific, testing 

15 for public safety, literary, or educational purposes, 

16 ‘‘(2) as civic leagues or social welfare organiza17 tions, 

18 ‘‘(3) as labor, agricultural, or horticultural or19 ganizations, 

20 ‘‘(4) as chambers of commerce, business 

21 leagues, or trade associations, or 

22 ‘‘(5) as fraternal beneficiary societies, orders, or 

23 associations, 

24 no part of the net earnings of which inures to the benefit 

25 of any private shareholder or individual. 


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1 ‘‘(c) QUALIFICATION CERTIFICATES.—Upon applica2 tion in a form prescribed by the Secretary, the sales tax 

3 administering authority shall provide qualification certifi4 cates to qualified not-for-profit organizations. 

5 ‘‘(d) TAXABLE TRANSACTIONS.—If a qualified not6 for-profit organization provides taxable property or serv7 ices in connection with contributions, dues, or similar pay8 ments to the organization, then it shall be required to 

9 treat the provision of said taxable property or services as 

10 a purchase taxable pursuant to this subtitle at the fair 

11 market value of said taxable property or services. 

12 ‘‘(e) EXEMPTIONS.—Taxable property and services 

13 purchased by a qualified not-for-profit organization shall 

14 be eligible for the exemptions provided in section 102. 

15 ‘‘CHAPTER 8—FINANCIAL 

16 INTERMEDIATION SERVICES 

‘‘Sec. 801. Determination of financial intermediation services amount. 

‘‘Sec. 802. Bad debts. 

‘‘Sec. 803. Timing of tax on financial intermediation services. 

‘‘Sec. 804. Financing leases. 

‘‘Sec. 805. Basic interest rate. 

‘‘Sec. 806. Foreign financial intermediation services. 

17 ‘‘SEC. 801. DETERMINATION OF FINANCIAL INTERMEDI18 ATION SERVICES AMOUNT. 

19 ‘‘(a) FINANCIAL INTERMEDIATION SERVICES.—For 

20 purposes of this subtitle— 

21 ‘‘(1) IN GENERAL.—The term ‘financial inter22 mediation services’ means the sum of— 


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1 ‘‘(A) explicitly charged fees for financial 

2 intermediation services, and 

3 ‘‘(B) implicitly charged fees for financial 

4 intermediation services. 

5 ‘‘(2) EXPLICITLY CHARGED FEES FOR FINAN6 CIAL INTERMEDIATION SERVICES.—The term ‘explic7 itly charged fees for financial intermediation serv8 ices’ includes— 

9 ‘‘(A) brokerage fees, 

10 ‘‘(B) explicitly stated banking, loan origi11 nation, processing, documentation, credit check 

12 fees, or other similar fees, 

13 ‘‘(C) safe-deposit box fees, 

14 ‘‘(D) insurance premiums, to the extent 

15 such premiums are not allocable to the invest16 ment account of the underlying insurance pol17 icy, 

18 ‘‘(E) trustees’ fees, and 

19 ‘‘(F) other financial services fees (includ20 ing mutual fund management, sales, and exit 

21 fees). 

22 ‘‘(3) IMPLICITLY CHARGED FEES FOR FINAN23 CIAL INTERMEDIATION SERVICES.— 

24 ‘‘(A) IN GENERAL.—The term ‘implicitly 

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1 ices’ includes the gross imputed amount in rela2 tion to any underlying interest-bearing invest3 ment, account, or debt. 

4 ‘‘(B) GROSS IMPUTED AMOUNT.—For pur5 poses of subparagraph (A), the term ‘gross im6 puted amount’ means— 

7 ‘‘(i) with respect to any underlying in8 terest-bearing investment or account, the 

9 product of— 

10 ‘‘(I) the excess (if any) of the 

11 basic interest rate (as defined in sec12 tion 805) over the rate paid on such 

13 investment, and 

14 ‘‘(II) the amount of the invest15 ment or account, and 

16 ‘‘(ii) with respect to any underlying 

17 interest-bearing debt, the product of— 

18 ‘‘(I) the excess (if any) of the 

19 rate paid on such debt over the basic 

20 interest rate (as defined in section 

21 805), and 

22 ‘‘(II) the amount of the debt. 

23 ‘‘(b) SELLER OF FINANCIAL INTERMEDIATION SERV24 ICES.—For purposes of section 103(a), the seller of finan25 cial intermediation services shall be— 


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1 ‘‘(1) in the case of explicitly charged fees for fi2 nancial intermediation services, the seller shall be 

3 the person who receives the gross payments for the 

4 charged financial intermediation services, 

5 ‘‘(2) in the case of implicitly charged fees for fi6 nancial intermediation services with respect to any 

7 underlying interest-bearing investment or account, 

8 the person making the interest payments on the in9 terest-bearing investment or account, and 

10 ‘‘(3) in the case of implicitly charged fees for fi11 nancial intermediation services with respect to any 

12 interest-bearing debt, the person receiving the inter13 est payments on the interest-bearing debt. 

14 ‘‘SEC. 802. BAD DEBTS. 

15 ‘‘(a) IN GENERAL.—For purposes of section 205(a), 

16 a bad debt shall be a business debt that becomes wholly 

17 or partially worthless to the payee. 

18 ‘‘(b) BUSINESS LOAN.—For purposes of subsection 

19 (a), a business loan or debt is a bona fide loan or debt 

20 made for a business purpose that both parties intended 

21 be repaid. 

22 ‘‘(c) DETERMINATION OF WORTHLESSNESS.— 

23 ‘‘(1) IN GENERAL.—No loan or debt shall be 

24 considered wholly or partially worthless unless it has 

25 been in arrears for 180 days or more, except that if 


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1 a debt is discharged wholly or partially in bank2 ruptcy before 180 days has elapsed, then it shall be 

3 deemed wholly or partially worthless on the date of 

4 discharge. 

5 ‘‘(2) DETERMINATION BY HOLDER.—A loan or 

6 debt that has been in arrears for 180 days or more 

7 may be deemed wholly or partially worthless by the 

8 holder unless a payment schedule has been entered 

9 into between the debtor and the lender. 

10 ‘‘(d) CROSS REFERENCE.—See section 205(c) for tax 

11 on subsequent payments. 

12 ‘‘SEC. 803. TIMING OF TAX ON FINANCIAL INTERMEDIATION 

13 SERVICES. 

14 ‘‘The tax on financial intermediation services pro15 vided by section 801 with respect to an underlying invest16 ment account or debt shall be imposed and collected with 

17 the same frequency that statements are rendered by the 

18 financial institution in connection with the investment ac19 count or debt but not less frequently than quarterly. 

20 ‘‘SEC. 804. FINANCING LEASES. 

21 ‘‘(a) DEFINITION.—For purposes of this section, the 

22 term ‘financing lease’ means any lease under which the 

23 lessee has the right to acquire the property for 50 percent 

24 or less of its fair market value at the end of the lease 

25 term. 


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1 ‘‘(b) GENERAL RULE.—Financing leases shall be 

2 taxed in the method set forth in this section. 

3 ‘‘(c) DETERMINATION OF PRINCIPAL AND INTEREST

4 COMPONENTS OF FINANCING LEASE.—The Secretary 

5 shall promulgate rules for disaggregating the principal 

6 and interest components of a financing lease. The prin7 cipal amount shall be determined to the extent possible 

8 by examination of the contemporaneous sales price or 

9 prices of property the same or similar as the leased prop10 erty. 

11 ‘‘(d) ALTERNATIVE METHOD.—In the event that con12 temporaneous sales prices or property the same or similar 

13 as the leased property are not available, the principal and 

14 interest components of a financing lease shall be 

15 disaggregated using the applicable interest rate (as de16 fined in section 511) plus 4 percent. 

17 ‘‘(e) PRINCIPAL COMPONENT.—The principal compo18 nent of the financing lease shall be subject to tax as if 

19 a purchase in the amount of the principal component had 

20 been made on the day on which said lease was executed. 

21 ‘‘(f) INTEREST COMPONENT.—The financial inter22 mediation services amount with respect to the interest 

23 component of the financing lease shall be subject to tax 

24 under this subtitle. 


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1 ‘‘(g) COORDINATION.—If the principal component 

2 and financial intermediation services amount with respect 

3 to the interest component of a lease have been taxed pur4 suant to this section, then the gross lease or rental pay5 ments shall not be subject to additional tax. 

6 ‘‘SEC. 805. BASIC INTEREST RATE. 

7 ‘‘For purposes of this chapter, the basic interest rate 

8 with respect to a debt instrument, investment, financing 

9 lease, or account shall be the applicable interest rate (as 

10 determined in section 511). For debt instruments, invest11 ments, or accounts of contractually fixed interest, the ap12 plicable interest rate of the month of issuance shall apply. 

13 For debt instruments, investments, or accounts of variable 

14 interest rates and which have no reference interest rate, 

15 the applicable interest shall be the Federal short-term in16 terest rate for each month. For debt instruments, invest17 ments, or accounts of variable interest rates and which 

18 have a reference interest rate, the applicable interest shall 

19 be the applicable interest rate for the reference interest 

20 rate for each month. 

21 ‘‘SEC. 806. FOREIGN FINANCIAL INTERMEDIATION SERV22 ICES. 

23 ‘‘(a) SPECIAL RULES RELATING TO INTERNATIONAL

24 FINANCIAL INTERMEDIATION SERVICES.—Financial 

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1 sumed within the United States if the person (or any re2 lated party as defined in section 205(e)) purchasing the 

3 services is a resident of the United States. 

4 ‘‘(b) DESIGNATION OF TAX REPRESENTATIVE.—Any 

5 person that provides financial intermediation services to 

6 United States residents must, as a condition of lawfully 

7 providing such services, designate, in a form prescribed 

8 by the Secretary, a tax representative for purposes of this 

9 subtitle. The tax representative shall be responsible for en10 suring that the taxes imposed by this subtitle are collected 

11 and remitted and shall be jointly and severally liable for 

12 collecting and remitting these taxes. The Secretary may 

13 require reasonable bond of the tax representative. The 

14 Secretary or a sales tax administering authority may bring 

15 an action seeking a temporary restraining order, an in16 junction, or such other order as may be appropriate to 

17 enforce this section. 

18 ‘‘(c) CROSS REFERENCES.—For definition of person, 

19 see section 901. 

20 ‘‘CHAPTER 9—ADDITIONAL MATTERS 

‘‘Sec. 901. Additional matters. 

‘‘Sec. 902. Transition matters. 

‘‘Sec. 903. Wages to be reported to Social Security Administration. 

‘‘Sec. 904. Trust Fund revenue. 

‘‘Sec. 905. Withholding of tax on nonresident aliens and foreign corporations. 

21 ‘‘SEC. 901. ADDITIONAL MATTERS. 

22 ‘‘(a) INTANGIBLE PROPERTY ANTIAVOIDANCE

23 RULE.—Notwithstanding section 2(a)(14)(a)(i), the sale 


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1 of a copyright or trademark shall be treated as the sale 

2 of taxable services (within the meaning of section 101(a)) 

3 if the substance of the sales of copyright or trademark 

4 constituted the sale of the services that produced the copy5 righted material or the trademark. 

6 ‘‘(b) DE MINIMIS PAYMENTS.—Up to $400 of gross 

7 payments per calendar year shall be exempt from the tax 

8 imposed by section 101 if— 

9 ‘‘(1) made by a person not in connection with 

10 a trade or business at any time during such calendar 

11 year prior to making said gross payments, and 

12 ‘‘(2) made to purchase any taxable property or 

13 service which is imported into the United States by 

14 such person for use or consumption by such person 

15 in the United States. 

16 ‘‘(c) DE MINIMIS SALES.—Up to $1,200 per calendar 

17 year of gross payments shall be exempt from the tax im18 posed by section 101 if received— 

19 ‘‘(1) by a person not in connection with a trade 

20 or business during such calendar year prior to the 

21 receipt of said gross payments, and 

22 ‘‘(2) in connection with a casual or isolated 

23 sale. 

24 ‘‘(d) DE MINIMIS SALE OF FINANCIAL INTERMEDI25 ATION SERVICES.—Up to $10,000 per calendar year of 


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1 gross payments received by a person from the sale of fi2 nancial intermediation services (as determined in accord3 ance with section 801) shall be exempt from the tax im4 posed by section 101. The exemption provided by this sub5 section is in addition to other exemptions afforded by this 

6 chapter. The exemption provided by this subsection shall 

7 not be available to large sellers (as defined in section 

8 501(e)(3)). 

9 ‘‘(e) PROXY BUYING TAXABLE.—If a registered per10 son provides taxable property or services to a person either 

11 as a gift, prize, reward, or as remuneration for employ12 ment, and such taxable property or services were not pre13 viously subject to tax pursuant to section 101, then the 

14 provision of such taxable property or services by the reg15 istered person shall be deemed the conversion of such tax16 able property or services to personal use subject to tax 

17 pursuant to section 103(c) at the tax inclusive fair market 

18 value of such taxable property or services. 

19 ‘‘(f) SUBSTANCE OVER FORM.—The substance of a 

20 transaction will prevail over its form if the transaction has 

21 no bona fide economic purpose and is designed to evade 

22 tax imposed by this subtitle. 

23 ‘‘(g) CERTAIN EMPLOYEE DISCOUNTS TAXABLE.— 

24 ‘‘(1) EMPLOYEE DISCOUNT.—For purposes of 

25 this subsection, the term ‘employee discount’ means 


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1 an employer’s offer of taxable property or services 

2 for sale to its employees or their families (within the 

3 meaning of section 302(b)) for less than the offer of 

4 such taxable property or services to the general pub5 lic. 

6 ‘‘(2) EMPLOYEE DISCOUNT AMOUNT.—For pur7 poses of this subsection, the employee discount 

8 amount is the amount by which taxable property or 

9 services are sold pursuant to an employee discount 

10 below the amount for which such taxable property or 

11 services would have been sold to the general public. 

12 ‘‘(3) TAXABLE AMOUNT.—If the employee dis13 count amount exceeds 20 percent of the price that 

14 the taxable property or services would have been sold 

15 to the general public, then the sale of such taxable 

16 property or services by the employer shall be deemed 

17 the conversion of such taxable property or services 

18 to personal use and tax shall be imposed on the tax19 able employee discount amount. The taxable em20 ployee discount amount shall be— 

21 ‘‘(A) the employee discount amount, minus 

22 ‘‘(B) 20 percent of the amount for which 

23 said taxable property or services would have 

24 been sold to the general public. 


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1 ‘‘(h) SATURDAY, SUNDAY, OR LEGAL HOLIDAY.— 

2 When the last day prescribed for performing any act re3 quired by this subtitle falls on a Saturday, Sunday, or 

4 legal holiday (in the jurisdiction where the return is to 

5 be filed), the performance of such act shall be considered 

6 timely if it is performed on the next day which is not a 

7 Saturday, Sunday, or legal holiday (in the jurisdiction 

8 where the return is to be filed). 

9 ‘‘SEC. 902. TRANSITION MATTERS. 

10 ‘‘(a) INVENTORY.— 

11 ‘‘(1) QUALIFIED INVENTORY.—Inventory held 

12 by a trade or business on the close of business on 

13 December 31, 2020, shall be qualified inventory if it 

14 is sold— 

15 ‘‘(A) before December 31, 2021, 

16 ‘‘(B) by a registered person, and 

17 ‘‘(C) subject to the tax imposed by section 

18 101. 

19 ‘‘(2) COSTS.—For purposes of this section, 

20 qualified inventory shall have the cost that it had for 

21 Federal income tax purposes for the trade or busi22 ness as of December 31, 2020 (including any 

23 amounts capitalized by reason of section 263A of the 

24 Internal Revenue Code of 1986 as in effect on De25 cember 31, 2020). 


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1 ‘‘(3) TRANSITIONAL INVENTORY CREDIT.—The 

2 trade or business which held the qualified inventory 

3 on the close of business on December 31, 2020, shall 

4 be entitled to a transitional inventory credit equal to 

5 the cost of the qualified inventory (determined in ac6 cordance with paragraph (2)) times the rate of tax 

7 imposed by section 101. 

8 ‘‘(4) TIMING OF CREDIT.—The credit provided 

9 under paragraph (3) shall be allowed with respect to 

10 the month when the inventory is sold subject to the 

11 tax imposed by this subtitle. Said credit shall be re12 ported as an intermediate and export sales credit 

13 and the person claiming said credit shall attach sup14 porting schedules in the form that the Secretary 

15 may prescribe. 

16 ‘‘(b) WORK-IN-PROCESS.—For purposes of this sec17 tion, inventory shall include work-in-process. 

18 ‘‘(c) QUALIFIED INVENTORY HELD BY BUSINESSES

19 NOT SELLING SAID QUALIFIED INVENTORY AT RE20 TAIL.— 

21 ‘‘(1) IN GENERAL.—Qualified inventory held by 

22 businesses that sells said qualified inventory not sub23 ject to tax pursuant to section 102(a) shall be eligi24 ble for the transitional inventory credit only if that 

25 business (or a business that has successor rights 


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1 pursuant to paragraph (2)) receives certification in 

2 a form satisfactory to the Secretary that the quali3 fied inventory was subsequently sold subject to the 

4 tax imposed by this subtitle. 

5 ‘‘(2) TRANSITIONAL INVENTORY CREDIT RIGHT

6 MAY BE SOLD.—The business entitled to the transi7 tional inventory credit may sell the right to receive 

8 said transitional inventory credit to the purchaser of 

9 the qualified inventory that gave rise to the credit 

10 entitlement. Any purchaser of such qualified inven11 tory (or property or services into which the qualified 

12 inventory has been incorporated) may sell the right 

13 to said transitional inventory credit to a subsequent 

14 purchaser of said qualified inventory (or property or 

15 services into which the qualified inventory has been 

16 incorporated). 

17 ‘‘SEC. 903. WAGES TO BE REPORTED TO SOCIAL SECURITY 

18 ADMINISTRATION. 

19 ‘‘(a) IN GENERAL.—Employers shall submit such in20 formation to the Social Security Administration as is re21 quired by the Social Security Administration to calculate 

22 Social Security benefits under title II of the Social Secu23 rity Act, including wages paid, in a form prescribed by 

24 the Secretary. A copy of the employer submission to the 


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1 Social Security Administration relating to each employee 

2 shall be provided to each employee by the employer. 

3 ‘‘(b) WAGES.—For purposes of this section, the term 

4 ‘wages’ means all cash remuneration for employment (in5 cluding tips to an employee by third parties provided that 

6 the employer or employee maintains records documenting 

7 such tips) including self-employment income; except that 

8 such term shall not include— 

9 ‘‘(1) any insurance benefits received (including 

10 death benefits), 

11 ‘‘(2) pension or annuity benefits received, 

12 ‘‘(3) tips received by an employee over $5,000 

13 per year, and 

14 ‘‘(4) benefits received under a government enti15 tlement program (including Social Security benefits 

16 and unemployment compensation benefits). 

17 ‘‘(c) SELF-EMPLOYMENT INCOME.—For purposes of 

18 subsection (b), the term ‘self-employment income’ means 

19 gross payments received for taxable property or services 

20 minus the sum of— 

21 ‘‘(1) gross payments made for taxable property 

22 or services (without regard to whether tax was paid 

23 pursuant to section 101 on such taxable property or 

24 services), and 


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1 ‘‘(2) wages paid by the self-employed person to 

2 employees of the self-employed person. 

3 ‘‘SEC. 904. TRUST FUND REVENUE. 

4 ‘‘(a) SECRETARY TO MAKE ALLOCATION OF SALES

5 TAX REVENUE.—The Secretary shall allocate the revenue 

6 received by virtue of the tax imposed by section 101 in 

7 accordance with this section. The revenue shall be allo8 cated among— 

9 ‘‘(1) the general revenue, 

10 ‘‘(2) the old-age and survivors insurance trust 

11 fund, 

12 ‘‘(3) the disability insurance trust fund, 

13 ‘‘(4) the hospital insurance trust fund, and 

14 ‘‘(5) the Federal supplementary medical insur15 ance trust fund. 

16 ‘‘(b) GENERAL RULE.— 

17 ‘‘(1) GENERAL REVENUE.—The proportion of 

18 total revenue allocated to the general revenue shall 

19 be the same proportion as the rate in section 

20 101(b)(4) bears to the combined Federal tax rate 

21 percentage (as defined in section 101(b)(3)). 

22 ‘‘(2) The amount of revenue allocated to the 

23 old-age and survivors insurance and disability insur24 ance trust funds shall be the same proportion as the 

25 old-age, survivors and disability insurance rate (as 


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1 defined in subsection (d)) bears to the combined 

2 Federal tax rate percentage (as defined in section 

3 101(b)(3)). 

4 ‘‘(3) The amount of revenue allocated to the 

5 hospital insurance and Federal supplementary med6 ical insurance trust funds shall be the same propor7 tion as the hospital insurance rate (as defined in 

8 subsection (e)) bears to the combined Federal tax 

9 rate percentage (as defined in section 101(b)(3)). 

10 ‘‘(c) CALENDAR YEAR 2021.—Notwithstanding sub11 section (b), the revenue allocation pursuant to subsection 

12 (a) for calendar year 2021 shall be as follows: 

13 ‘‘(1) 64.83 percent of total revenue to general 

14 revenue, 

15 ‘‘(2) 27.43 percent of total revenue to the old16 age and survivors insurance and disability insurance 

17 trust funds, and 

18 ‘‘(3) 7.74 percent of total revenue to the hos19 pital insurance and Federal supplementary medical 

20 insurance trust funds. 

21 ‘‘(d) OLD-AGE, SURVIVORS AND DISABILITY INSUR22 ANCE RATE.—The old-age, survivors and disability insur23 ance rate shall be determined by the Social Security Ad24 ministration. The old-age, survivors and disability insur25 ance rate shall be that sales tax rate which is necessary 


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1 to raise the same amount of revenue that would have been 

2 raised by imposing a 12.4 percent tax on the Social Secu3 rity wage base (including self-employment income) as de4 termined in accordance with chapter 21 of the Internal 

5 Revenue Code most recently in effect prior to the enact6 ment of this Act. The rate shall be determined using actu7 arially sound methodology and announced at least 6 

8 months prior to the beginning of the calendar year for 

9 which it applies. 

10 ‘‘(e) HOSPITAL INSURANCE RATE.—The hospital in11 surance rate shall be determined by the Social Security 

12 Administration. The hospital insurance rate shall be that 

13 sales tax rate which is necessary to raise the same amount 

14 of revenue that would have been raised by imposing a 2.9 

15 percent tax on the Medicare wage base (including self-em16 ployment income) as determined in accordance with chap17 ter 21 of the Internal Revenue Code most recently in effect 

18 prior to the enactment of this Act. The rate shall be deter19 mined using actuarially sound methodology and an20 nounced at least 6 months prior to the beginning of the 

21 calendar year for which it applies. 

22 ‘‘(f) ASSISTANCE.—The Secretary shall provide such 

23 technical assistance as the Social Security Administration 

24 shall require to determine the old-age, survivors and dis25 ability insurance rate and the hospital insurance rate. 


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1 ‘‘(g) FURTHER ALLOCATIONS.— 

2 ‘‘(1) OLD-AGE, SURVIVORS AND DISABILITY IN3 SURANCE.—The Secretary shall allocate revenue re4 ceived because of the old-age, survivors and dis5 ability insurance rate to the old-age and survivors 

6 insurance trust fund and the disability insurance 

7 trust fund in accordance with law or, in the absence 

8 of other statutory provision, in the same proportion 

9 that the old-age and survivors insurance trust fund 

10 receipts bore to the sum of the old-age and survivors 

11 insurance trust fund receipts and the disability in12 surance trust fund receipts in calendar year 2020 

13 (taking into account only receipts pursuant to chap14 ter 21 of the Internal Revenue Code). 

15 ‘‘(2) HOSPITAL INSURANCE.—The Secretary 

16 shall allocate revenue received because of the hos17 pital insurance rate to the hospital insurance trust 

18 fund and the Federal supplementary medical insur19 ance trust fund in accordance with law or, in the ab20 sence of other statutory provision, in the same pro21 portion that hospital insurance trust fund receipts 

22 bore to the sum of the hospital insurance trust fund 

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1 ing into account only receipts pursuant to chapter 

2 21 of the Internal Revenue Code). 

3 ‘‘SEC. 905. WITHHOLDING OF TAX ON NONRESIDENT ALIENS 

4 AND FOREIGN CORPORATIONS. 

5 ‘‘(a) IN GENERAL.—All persons, in whatever capacity 

6 acting (including lessees or mortgagors or real or personal 

7 property, fiduciaries, employers, and all officers and em8 ployees of the United States) having control, receipt, cus9 tody, disposal, or payment of any income to the extent 

10 such income constitutes gross income from sources within 

11 the United States of any nonresident alien individual, for12 eign partnership, or foreign corporation shall deduct and 

13 withhold from that income a tax equal to 23 percent there14 of. 

15 ‘‘(b) EXCEPTION.—No tax shall be required to be de16 ducted from interest on portfolio debt investments. 

17 ‘‘(c) TREATY COUNTRIES.—In the case of payments 

18 to nonresident alien individuals, foreign partnerships, or 

19 foreign corporations that have a residence in (or the na20 tionality of a country) that has entered into a tax treaty 

21 with the United States, then the rate of withholding tax 

22 prescribed by the treaty shall govern.’’. 

23 SEC. 202. CONFORMING AND TECHNICAL AMENDMENTS. 

24 (a) REPEALS.—The following provisions of the Inter25 nal Revenue Code of 1986 are repealed: 


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1 (1) Subchapter A of chapter 61 of subtitle D 

2 (as redesignated by section 104) (relating to infor3 mation and returns). 

4 (2) Sections 6103 through 6116 of subchapter 

5 B of chapter 61 of subtitle D (as so redesignated). 

6 (3) Section 6157 (relating to unemployment 

7 taxes). 

8 (4) Section 6163 (relating to estate taxes). 

9 (5) Section 6164 (relating to corporate taxes). 

10 (6) Section 6166 (relating to estate taxes). 

11 (7) Section 6167 (relating to foreign expropria12 tion losses). 

13 (8) Sections 6201, 6205, and 6207 (relating to 

14 assessments). 

15 (9) Subchapter C of chapter 63 of subtitle D 

16 (as so redesignated) (relating to tax treatment of 

17 partnership items). 

18 (10) Section 6305 (relating to collections of cer19 tain liabilities). 

20 (11) Sections 6314, 6315, 6316, and 6317 (re21 lating to payments of repealed taxes). 

22 (12) Sections 6324, 6324A, and 6324B (relat23 ing to liens for estate and gift taxes). 

24 (13) Section 6344 (relating to cross references). 

25 (14) Section 6411 (relating to carrybacks). 


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1 (15) Section 6413 (relating to employment 

2 taxes). 

3 (16) Section 6414 (relating to withheld income 

4 taxes). 

5 (17) Section 6422 (relating to cross references). 

6 (18) Section 6425 (relating to overpayment of 

7 corporate estimated taxes). 

8 (19) Section 6504 (relating to cross references). 

9 (20) Section 6652 (relating to failure to file 

10 certain information returns). 

11 (21) Sections 6654 and 6655 (relating to fail12 ure to payment estimated income tax). 

13 (22) Section 6662 (relating to penalties). 

14 (23) Sections 6677 through 6711 (relating to 

15 income tax related penalties). 

16 (24) Part II of subchapter B of chapter 68 (re17 lating to certain information returns). 

18 (25) Part I of subchapter A of chapter 70 (re19 lating to termination of taxable year). 

20 (26) Section 6864 (relating to certain 

21 carrybacks). 

22 (27) Section 7103 (relating to cross references). 

23 (28) Section 7204 (relating to withholding 

24 statements). 

25 (29) Section 7211 (relating certain statements). 


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1 (30) Section 7231 (relating to failure to obtain 

2 certain licenses). 

3 (31) Section 7270 (relating to insurance poli4 cies). 

5 (32) Section 7404 (relating to estate taxes). 

6 (33) Section 7407 (relating to income tax pre7 parers). 

8 (34) Section 7408 (relating to income tax shel9 ters). 

10 (35) Section 7409 (relating to 501(c)(3) organi11 zations). 

12 (36) Section 7427 (relating to income tax pre13 parers). 

14 (37) Section 7428 (relating to 501(c)(3) organi15 zations). 

16 (38) Section 7476 (relating to declaratory judg17 ments relating to retirement plans). 

18 (39) Section 7478 (relating to declaratory judg19 ments relating to certain tax-exempt obligations). 

20 (40) Section 7508 (relating to postponing time 

21 for certain actions required by the income, estate, 

22 and gift tax). 

23 (41) Section 7509 (relating to Postal Service 

24 payroll taxes). 

25 (42) Section 7512 (relating to payroll taxes). 


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1 (43) Section 7517 (relating to estate and gift 

2 tax evaluation). 

3 (44) Section 7518 (relating to Merchant Marine 

4 tax incentives). 

5 (45) Section 7519 (relating to taxable years). 

6 (46) Section 7520 (relating to insurance and 

7 annuity valuation tables). 

8 (47) Section 7523 (relating to reporting Fed9 eral income and outlays on Form 1040s). 

10 (48) Section 7611 (relating to church income 

11 tax exemptions and church unrelated business in12 come tax inquiries). 

13 (49) Section 7654 (relating to possessions’ in14 come taxes). 

15 (50) Section 7655 (relating to cross references). 

16 (51) Section 7701(a)(16). 

17 (52) Section 7701(a)(19). 

18 (53) Section 7701(a)(20). 

19 (54) Paragraphs (32) through (38) of section 

20 7701(a). 

21 (55) Paragraphs (41) through (46) of section 

22 7701(a). 

23 (56) Section 7701(b). 

24 (57) Subsections (e) through (m) of section 

25 7701. 


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1 (58) Section 7702 (relating to life insurance 

2 contracts). 

3 (59) Section 7702A (relating to modified en4 dowment contracts). 

5 (60) Section 7702B (relating to long-term care 

6 insurance). 

7 (61) Section 7703 (relating to the determina8 tion of marital status). 

9 (62) Section 7704 (relating to publicly traded 

10 partnerships). 

11 (63) Section 7805. 

12 (64) Section 7851. 

13 (65) Section 7872. 

14 (66) Section 7873. 

15 (b) OTHER CONFORMING AND TECHNICAL AMEND16 MENTS.— 

17 (1) Section 6151 of such Code is amended by 

18 striking subsection (b) and by redesignating sub19 section (c) as subsection (b). 

20 (2) Section 6161 of such Code is amended to 

21 read as follows: 

22 ‘‘SEC. 6161. EXTENSION OF TIME FOR PAYING TAX. 

23 ‘‘The Secretary, except as otherwise provided in this 

24 title, may extend the time for payment of the amount of 

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1 port, or declaration required under authority of this title 

2 for a reasonable period not to exceed 6 months (12 months 

3 in the case of a taxpayer who is abroad).’’. 

4 (3) Section 6211(a) of such Code is amended— 

5 (A) by striking ‘‘income, estate, and gift 

6 taxes imposed by subtitles A and B and’’, 

7 (B) by striking ‘‘subtitle A or B, or’’, and 

8 (C) by striking ‘‘, as defined in subsection 

9 (b)(2),’’ in paragraph (2). 

10 (4) Section 6211(b) of such Code is amended to 

11 read as follows: 

12 ‘‘(b) REBATE DEFINED.—For purposes of subsection 

13 (a)(2), the term ‘rebate’ means so much of an abatement, 

14 credit, refund, or other payment, as was made on the 

15 ground that the tax imposed by chapter 41, 42, 43, or 

16 44 was less than the excess of the amount specified in 

17 subsection (a)(1) over the rebates previously made.’’. 

18 (5) Section 6212(b) of such Code is amended to 

19 read as follows: 

20 ‘‘(b) ADDRESS FOR NOTICE OF DEFICIENCY.—In the 

21 absence of notice to the Secretary under section 6903 of 

22 the existence of a fiduciary relationship, notice of a defi23 ciency in respect of a tax imposed by chapter 42, 43, or 

24 44 if mailed to the taxpayer at his last known address, 

25 shall be sufficient for purposes of such chapter and this 


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1 chapter even if such taxpayer is deceased, or is under a 

2 legal disability, or, in the case of a corporation has termi3 nated its existence.’’. 

4 (6) Section 6302(b) of such Code is amended 

5 by striking ‘‘21,’’. 

6 (7) Section 6302 of such Code is amended by 

7 striking subsections (g) and (i) and by redesignating 

8 subsection (h) as subsection (g). 

9 (8) Section 6325 of such Code is amended by 

10 striking subsection (c) and by redesignating sub11 sections (d) through (h) as subsections (c) through 

12 (g), respectively. 

13 (9) Section 6402(d) of such Code is amended 

14 by striking paragraph (3). 

15 (10) Section 6402 of such Code is amended by 

16 striking subsection (j) and by redesignating sub17 section (k) as subsection (j). 

18 (11) Section 6501(b) of such Code is amend19 ed— 

20 (A) by striking ‘‘except tax imposed by 

21 chapter 3, 4, 21, or 24,’’ in paragraph (1), and 

22 (B) by striking paragraph (2) and by re23 designating paragraphs (3) and (4) as para24 graphs (2) and (3), respectively. 


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1 (12) Section 6501(c) of such Code is amended 

2 by striking paragraphs (5) through (9). 

3 (13) Section 6501(e) of such Code is amended 

4 by striking ‘‘subsection (c)—’’ and all that follows 

5 through ‘‘subtitle D’’ in paragraph (3) and inserting 

6 ‘‘subsection (c), in the case of a return of a tax im7 posed under a provision of subtitle B’’. 

8 (14) Section 6501 of such Code is amended by 

9 striking subsections (f) through (k) and subsections 

10 (m) and (n) and by redesignating subsection (1) as 

11 subsection (f). 

12 (15) Section 6503(a) of such Code is amend13 ed— 

14 (A) by striking paragraph (2), 

15 (B) by striking ‘‘DEFICIENCY.—’’ and all 

16 that follows through ‘‘The running’’ and insert17 ing ‘‘DEFICIENCY.—The running’’, and 

18 (C) by striking ‘‘income, estate, gift and’’. 

19 (16) Section 6503 of such Code is amended by 

20 striking subsections (e), (f), (i), and (k) and by re21 designating subsections (g), (h), and (j) as sub22 sections (e), (f), and (g), respectively. 

23 (17) Section 6511 of such Code is amended by 

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1 nating subsections (f) and (h) as subsections (d) and 

2 (e), respectively. 

3 (18) Section 6512(b)(1) of such Code is amend4 ed by striking ‘‘of income tax for the same taxable 

5 year, of gift tax for the same calendar year or cal6 endar quarter, of estate tax in respect of the taxable 

7 estate of the same decedent, or’’. 

8 (19) Section 6513 of such Code is amended— 

9 (A) by striking ‘‘(a) EARLY RETURN OR

10 ADVANCE PAYMENT OF TAX.—’’, and 

11 (B) by striking subsections (b) and (e). 

12 (20) Chapter 67 of such Code is amended by 

13 striking subchapters A through D and inserting the 

14 following: 

15 ‘‘SEC. 6601. INTEREST ON OVERPAYMENTS AND UNDER16 PAYMENT. 

17 ‘‘(a) UNDERPAYMENTS.—If any amount of tax im18 posed by this title is not paid on or before the last date 

19 prescribed for payment, interest on such amount at the 

20 Federal short-term rate (as defined in section 511(b)) 

21 shall be paid from such last date to the date paid. 

22 ‘‘(b) OVERPAYMENTS.—Interest shall be allowed and 

23 paid upon any overpayment in respect of any internal rev24 enue tax at the Federal short-term rate (as defined in secVerDate Sep 11 2014 20:33 Feb 19, 2021 Jkt 019200 PO 00000 Frm 00256 Fmt 6652 Sfmt 6201 E:\BILLS\H9064.IH H9064

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1 tion 511(b)) from 60 days after the date of the overpay2 ment until the date the overpayment is refunded.’’. 

3 (21) Section 6651(a)(1) of such Code is amend4 ed by striking ‘‘subchapter A of chapter 61 (other 

5 than part III thereof),’’. 

6 (22) Section 6656 of such Code is amended by 

7 striking subsection (c) and by redesignating sub8 section (d) as subsection (c). 

9 (23) Section 6663 of such Code is amended by 

10 striking subsection (c). 

11 (24) Section 6664(c) of such Code is amend12 ed— 

13 (A) by striking ‘‘Exception.—’’ and all 

14 that follows through ‘‘No penalty’’ and insert15 ing ‘‘Exception.—No penalty’’, and 

16 (B) by striking paragraphs (2) and (3). 

17 (25) Chapter 72 of such Code is amended by 

18 striking all matter preceding section 7011. 

19 (26) Section 7422 of such Code is amended by 

20 striking subsections (h) and (i) and by redesignating 

21 subsections (j) and (k) as subsections (h) and (i), re22 spectively. 

23 (27) Section 7451 of such Code is amended to 

24 read as follows: 


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1 ‘‘SEC. 7451. FEE FOR FILING PETITION. 

2 ‘‘The Tax Court is authorized to impose a fee in an 

3 amount not in excess of $60 to be fixed by the Tax Court 

4 for the filing of any petition for the redetermination of 

5 a deficiency.’’. 

6 (28) Section 7454 of such Code is amended by 

7 striking subsection (b) and by redesignating sub8 section (c) as subsection (b). 

9 (29) Section 7463(a) of such Code is amend10 ed— 

11 (A) by striking paragraphs (2) and (3), 

12 (B) by redesignating paragraph (4) as 

13 paragraph (2), and 

14 (C) by striking ‘‘D’’ in paragraph (2) (as 

15 so redesignated) and inserting ‘‘B’’. 

16 (30) Section 7463(c) of such Code is amended 

17 by striking ‘‘sections 6214(a) and’’ and inserting 

18 ‘‘section’’. 

19 (31) Section 7463(e) of such Code is amended 

20 by striking ‘‘, to the extent that the procedures de21 scribed in subchapter B of chapter 63 apply’’. 

22 (32) Section 7481 of such Code is amended by 

23 striking subsection (d). 

24 (33) Section 7608 of such Code is amended by 

25 striking ‘‘subtitle E’’ each place it appears and in26 serting ‘‘subtitle C’’. 


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1 (34) Section 7701(a)(29) of such Code is 

2 amended by striking ‘‘1986’’ and inserting ‘‘2019’’. 

3 (35) Section 7809(c) of such Code is amended 

4 by striking paragraphs (1) and (4) and by redesig5 nating paragraphs (2) and (3) as paragraphs (1) 

6 and (2), respectively. 

7 (36) Section 7871(a) of such Code is amended 

8 by striking paragraphs (1) and (3) through (6) and 

9 by redesignating paragraphs (2) and (7) as para10 graphs (1) and (2), respectively. 

11 (37) Section 7871 of such Code is amended by 

12 striking subsection (c) and by redesignating sub13 sections (d) and (e) as subsections (c) and (d), re14 spectively. 

15 (38) Section 8021 of such Code is amended by 

16 striking subsection (a) and by redesignating sub17 sections (b) through (f) as subsections (a) through 

18 (e), respectively. 

19 (39) Section 8022(2)(A) of such Code is 

20 amended by striking ‘‘, particularly the income tax’’. 

21 (40) Section 8023 of such Code is amended by 

22 striking ‘‘Internal Revenue Service’’ each place it ap23 pears and inserting ‘‘Department of the Treasury’’. 

24 (41) Section 9501(b)(2) of such Code is amend25 ed by striking subparagraph (C). 


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1 (42) Section 9702(a) of such Code is amended 

2 by striking paragraph (4). 

3 (43) Section 9705(a) of such Code is amended 

4 by striking paragraph (4) and by redesignating 

5 paragraph (5) as paragraph (4). 

6 (44) Section 9706(d)(2)(A) of such Code is 

7 amended by striking ‘‘6103’’ and inserting ‘‘605(e)’’. 

8 (45) Section 9707 of such Code is amended by 

9 striking subsection (f). 

10 (46) Section 9712(d) of such Code is amended 

11 by striking paragraph (5) and by redesignating 

12 paragraph (6) as paragraph (5). 

13 (47) Section 9803(a) of such Code is amended 

14 by striking ‘‘(as defined in section 414(f))’’. 

15 TITLE III—OTHER MATTERS 

16 SEC. 301. PHASE-OUT OF ADMINISTRATION OF REPEALED 

17 FEDERAL TAXES. 

18 (a) APPROPRIATIONS.—Appropriations for any ex19 penses of the Internal Revenue Service including proc20 essing tax returns for years prior to the repeal of the taxes 

21 repealed by title I of this Act, revenue accounting, man22 agement, transfer of payroll and wage data to the Social 

23 Security Administration for years after fiscal year 2023 

24 shall not be authorized. 


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1 (b) RECORDS.—Federal records related to the admin2 istration of taxes repealed by title I of this Act shall be 

3 destroyed by the end of fiscal year 2023, except that any 

4 records necessary to calculate Social Security benefits 

5 shall be retained by the Social Security Administration 

6 and any records necessary to support ongoing litigation 

7 with respect to taxes owed or refunds due shall be retained 

8 until final disposition of such litigation. 

9 (c) CONFORMING AMENDMENTS.—Section 7802 of 

10 the Internal Revenue Code of 1986 is amended— 

11 (1) by striking subsections (a) and (b) and by 

12 redesignating subsections (c) and (d) as subsections 

13 (a) and (b), 

14 (2) by striking ‘‘Internal Revenue Service’’ each 

15 place it appears and inserting ‘‘Department of the 

16 Treasury’’, and 

17 (3) by striking ‘‘Commissioner’’ or ‘‘Commis18 sioner of Internal Revenue’’ each place they appear 

19 and inserting ‘‘Secretary’’. 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 subsection (c) shall take effect on January 1, 2023. 

22 SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES. 

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1 partment of the Treasury) is amended by adding at the 

2 end the following: 

3 ‘‘(d) EXCISE TAX BUREAU.—There shall be in the 

4 Department of the Treasury an Excise Tax Bureau to ad5 minister those excise taxes not administered by the Bu6 reau of Alcohol, Tobacco and Firearms. 

7 ‘‘(e) SALES TAX BUREAU.—There shall be in the De8 partment of the Treasury a Sales Tax Bureau to admin9 ister the national sales tax in those States where it is re10 quired pursuant to section 404, and to discharge other 

11 Federal duties and powers relating to the national sales 

12 tax (including those required by sections 402, 403, and 

13 405). The Office of Revenue Allocation shall be within the 

14 Sales Tax Bureau.’’. 

15 (b) ASSISTANT GENERAL COUNSELS.—Section 

16 7801(a)(2) of such Code is amended to read as follows: 

17 ‘‘(2) ASSISTANT GENERAL COUNSELS.—The 

18 Secretary of the Treasury may appoint, without re19 gard to the provisions of the civil service laws, and 

20 fix the duties of not more than 5 assistant general 

21 counsels.’’. 

22 SEC. 303. SALES TAX INCLUSIVE SOCIAL SECURITY BENE23 FITS INDEXATION. 

24 Subparagraph (D) of section 215(i)(1) of the Social 

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1 ing increases in Social Security benefits) is amended to 

2 read as follows: 

3 ‘‘(D)(i) the term ‘CPI increase percentage’, 

4 with respect to a base quarter or cost-of-living quar5 ter in any calendar year, means the percentage 

6 (rounded to the nearest one-tenth of 1 percent) by 

7 which the Consumer Price Index for that quarter (as 

8 prepared by the Department of Labor) exceeds such 

9 index for the most recent prior calendar quarter 

10 which was a base quarter under subparagraph 

11 (A)(ii) or, if later, the most recent cost-of-living 

12 computation quarter under subparagraph (B), 

13 ‘‘(ii) if the Consumer Price Index (as so pre14 pared) does not include the national sales tax paid, 

15 then the term ‘CPI increase percentage’, with re16 spect to a base quarter or cost-of-living quarter in 

17 any calendar year, means the percentage (rounded 

18 to the nearest one-tenth of 1 percent) by which the 

19 product of— 

20 ‘‘(I) the Consumer Price Index for that 

21 quarter (as so prepared), and 

22 ‘‘(II) the national sales tax factor, 

23 exceeds such index for the most recent prior cal24 endar quarter which was a base quarter under sub25 paragraph (A)(ii) or, if later, the most recent cost 


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1 of living computation quarter under subparagraph 

2 (B), and 

3 ‘‘(iii) the national sales tax factor is equal to 

4 one plus the quotient that is— 

5 ‘‘(I) the sales tax rate imposed by section 

6 101 of the Internal Revenue Code of 2019, di7 vided by 

8 ‘‘(II) the quantity that is one minus such 

9 sales tax rate.’’. 

10 TITLE IV—SUNSET OF SALES 

11 TAX IF SIXTEENTH AMEND12 MENT NOT REPEALED 

13 SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH 

14 AMENDMENT NOT REPEALED. 

15 If the Sixteenth Amendment to the Constitution of 

16 the United States is not repealed before the end of the 

17 7-year period beginning on the date of the enactment of 

18 this Act, then all provisions of, and amendments made by, 

19 this Act shall not apply to any use or consumption in any 

20 year beginning after December 31 of the calendar year 

21 in which or with which such period ends, except that the 

22 Sales Tax Bureau of the Department of the Treasury shall 

23 not be terminated until 6 months after such December 31. 


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1 DIVISION C—CONSTITUTIONAL 

2 AMENDMENTS 

3 TITLE I—REPEAL OF 16TH 

4 AMENDMENT 

5 SEC. That the following article is proposed as an amendment to 

6 the Constitution of the United States, which shall 

7 be valid to all intents and purposes as part of the 

8 Constitution when ratified by the legislatures of 

9 three-fourths of the several States within seven 

10 years after the date of its submission for ratifica11 tion: 

12 ‘‘ARTICLE— 

13 ‘‘The sixteenth article of amendment to the Constitu14 tion of the United States is hereby repealed.’’. 


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1 TITLE II—APPORTIONMENT OF 

2 REPRESENTATIVES 

3 SEC. That the following article is proposed as an amendment to 

4 the Constitution of the United States, which shall 

5 be valid to all intents and purposes as part of the 

6 Constitution when ratified by the legislatures of 

7 three-fourths of the several States within seven 

8 years after the date of its submission for ratifica9 tion: 

10 ‘‘ARTICLE— 

11 ‘‘Representatives shall be apportioned among the sev12 eral States according to their respective numbers, which 

13 shall be determined by counting the number of persons 

14 in each State who are citizens of the United States.’’. 

Æ 


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