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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 397 Received in Senate (RDS)]

<DOC>
116th CONGRESS
  1st Session
                                H. R. 397

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2019

                                Received

_______________________________________________________________________

                                 AN ACT

 
    To amend the Internal Revenue Code of 1986 to create a Pension 
   Rehabilitation Trust Fund, to establish a Pension Rehabilitation 
 Administration within the Department of the Treasury to make loans to 
      multiemployer defined benefit plans, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rehabilitation for Multiemployer 
Pensions Act of 2019''.

SEC. 2. PENSION REHABILITATION ADMINISTRATION; ESTABLISHMENT; POWERS.

    (a) Establishment.--There is established in the Department of the 
Treasury an agency to be known as the ``Pension Rehabilitation 
Administration''.
    (b) Director.--
            (1) Establishment of position.--There shall be at the head 
        of the Pension Rehabilitation Administration a Director, who 
        shall be appointed by the President.
            (2) Term.--
                    (A) In general.--The term of office of the Director 
                shall be 5 years.
                    (B) Service until appointment of successor.--An 
                individual serving as Director at the expiration of a 
                term may continue to serve until a successor is 
                appointed.
            (3) Powers.--
                    (A) Appointment of deputy directors, officers, and 
                employees.--The Director may appoint Deputy Directors, 
                officers, and employees, including attorneys, in 
                accordance with chapter 51 and subchapter III of 
                chapter 53 of title 5, United States Code.
                    (B) Contracting.--
                            (i) In general.--The Director may contract 
                        for financial and administrative services 
                        (including those related to budget and 
                        accounting, financial reporting, personnel, and 
                        procurement) with the General Services 
                        Administration, or such other Federal agency as 
                        the Director determines appropriate, for which 
                        payment shall be made in advance, or by 
                        reimbursement, from funds of the Pension 
                        Rehabilitation Administration in such amounts 
                        as may be agreed upon by the Director and the 
                        head of the Federal agency providing the 
                        services.
                            (ii) Subject to appropriations.--Contract 
                        authority under clause (i) shall be effective 
                        for any fiscal year only to the extent that 
                        appropriations are available for that purpose.

SEC. 3. PENSION REHABILITATION TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. PENSION REHABILITATION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Pension 
Rehabilitation Trust Fund' (hereafter in this section referred to as 
the `Fund'), consisting of such amounts as may be appropriated or 
credited to the Fund as provided in this section and section 9602(b).
    ``(b) Transfers to Fund.--
            ``(1) Amounts attributable to treasury bonds.--There shall 
        be credited to the Fund the amounts transferred under section 6 
        of the Rehabilitation for Multiemployer Pensions Act of 2019.
            ``(2) Loan interest and principal.--
                    ``(A) In general.--The Director of the Pension 
                Rehabilitation Administration established under section 
                2 of the Rehabilitation for Multiemployer Pensions Act 
                of 2019 shall deposit in the Fund any amounts received 
                from a plan as payment of interest or principal on a 
                loan under section 4 of such Act.
                    ``(B) Interest.--For purposes of subparagraph (A), 
                the term `interest' includes points and other similar 
                amounts.
            ``(3) Availability of funds.--Amounts credited to or 
        deposited in the Fund shall remain available until expended.
    ``(c) Expenditures From Fund.--Amounts in the Fund are available 
without further appropriation to the Pension Rehabilitation 
Administration--
            ``(1) for the purpose of making the loans described in 
        section 4 of the Rehabilitation for Multiemployer Pensions Act 
        of 2019,
            ``(2) for the payment of principal and interest on 
        obligations issued under section 6 of such Act, and
            ``(3) for administrative and operating expenses of such 
        Administration.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9512. Pension Rehabilitation Trust Fund.''.

SEC. 4. LOAN PROGRAM FOR MULTIEMPLOYER DEFINED BENEFIT PLANS.

    (a) Loan Authority.--
            (1) In general.--The Pension Rehabilitation Administration 
        established under section 2 is authorized--
                    (A) to make loans to multiemployer plans (as 
                defined in section 414(f) of the Internal Revenue Code 
                of 1986) which are defined benefit plans (as defined in 
                section 414(j) of such Code) and which--
                            (i) are in critical and declining status 
                        (within the meaning of section 432(b)(6) of 
                        such Code and section 305(b)(6) of the Employee 
                        Retirement and Income Security Act) as of the 
                        date of the enactment of this section, or with 
                        respect to which a suspension of benefits has 
                        been approved under section 432(e)(9) of such 
                        Code and section 305(e)(9) of such Act as of 
                        such date;
                            (ii) as of such date of enactment, are in 
                        critical status (within the meaning of section 
                        432(b)(2) of such Code and section 305(b)(2) of 
                        such Act), have a modified funded percentage of 
                        less than 40 percent, and have a ratio of 
                        active to inactive participants which is less 
                        than 2 to 5; or
                            (iii) are insolvent for purposes of section 
                        418E of such Code as of such date of enactment, 
                        if they became insolvent after December 16, 
                        2014, and have not been terminated; and
                    (B) subject to subsection (b), to establish 
                appropriate terms for such loans.
        For purposes of subparagraph (A)(ii), the term ``modified 
        funded percentage'' means the percentage equal to a fraction 
        the numerator of which is current value of plan assets (as 
        defined in section 3(26) of such Act) and the denominator of 
        which is current liabilities (as defined in section 
        431(c)(6)(D) of such Code and section 304(c)(6)(D) of such 
        Act).
            (2) Consultation.--The Director of the Pension 
        Rehabilitation Administration shall consult with the Secretary 
        of the Treasury, the Secretary of Labor, and the Director of 
        the Pension Benefit Guaranty Corporation before making any loan 
        under paragraph (1), and shall share with such persons the 
        application and plan information with respect to each such 
        loan.
            (3) Establishment of loan program.--
                    (A) In general.--A program to make the loans 
                authorized under this section shall be established not 
                later than September 30, 2019, with guidance regarding 
                such program to be promulgated by the Director of the 
                Pension Rehabilitation Administration, in consultation 
                with the Director of the Pension Benefit Guaranty 
                Corporation, the Secretary of the Treasury, and the 
                Secretary of Labor, not later than December 31, 2019.
                    (B) Loans authorized before program date.--Without 
                regard to whether the program under subparagraph (A) 
                has been established, a plan may apply for a loan under 
                this section before either date described in such 
                subparagraph, and the Pension Rehabilitation 
                Administration shall approve the application and make 
                the loan before establishment of the program if 
                necessary to avoid any suspension of the accrued 
                benefits of participants.
    (b) Loan Terms.--
            (1) In general.--The terms of any loan made under 
        subsection (a) shall state that--
                    (A) the plan shall make payments of interest on the 
                loan for a period of 29 years beginning on the date of 
                the loan (or 19 years in the case of a plan making the 
                election under subsection (c)(5));
                    (B) final payment of interest and principal shall 
                be due in the 30th year after the date of the loan 
                (except as provided in an election under subsection 
                (c)(5)); and
                    (C) as a condition of the loan, the plan sponsor 
                stipulates that--
                            (i) except as provided in clause (ii), the 
                        plan will not increase benefits, allow any 
                        employer participating in the plan to reduce 
                        its contributions, or accept any collective 
                        bargaining agreement which provides for reduced 
                        contribution rates, during the 30-year period 
                        described in subparagraphs (A) and (B);
                            (ii) in the case of a plan with respect to 
                        which a suspension of benefits has been 
                        approved under section 432(e)(9) of the 
                        Internal Revenue Code of 1986 and section 
                        305(e)(9) of the Employee Retirement Income 
                        Security Act of 1974, or under section 418E of 
                        such Code, before the loan, the plan will 
                        reinstate the suspended benefits (or will not 
                        carry out any suspension which has been 
                        approved but not yet implemented);
                            (iii) the plan sponsor will comply with the 
                        requirements of section 6059A of the Internal 
                        Revenue Code of 1986;
                            (iv) the plan will continue to pay all 
                        premiums due under section 4007 of the Employee 
                        Retirement Income Security Act of 1974; and
                            (v) the plan and plan administrator will 
                        meet such other requirements as the Director of 
                        the Pension Rehabilitation Administration 
                        provides in the loan terms.
                The terms of the loan shall not make reference to 
                whether the plan is receiving financial assistance 
                under section 4261(d) of the Employee Retirement Income 
                Security Act of 1974 (29 U.S.C. 1431(d)) or to any 
                adjustment of the loan amount under subsection 
                (d)(2)(A)(ii).
            (2) Interest rate.--Except as provided in the second 
        sentence of this paragraph and subsection (c)(5), loans made 
        under subsection (a) shall have as low an interest rate as is 
        feasible. Such rate shall be determined by the Pension 
        Rehabilitation Administration and shall--
                    (A) not be lower than the rate of interest on 30-
                year Treasury securities on the first day of the 
                calendar year in which the loan is issued; and
                    (B) not exceed the greater of--
                            (i) a rate 0.2 percentage points higher 
                        than such rate of interest on such date; or
                            (ii) the rate necessary to collect revenues 
                        sufficient to administer the program under this 
                        section.
    (c) Loan Application.--
            (1) In general.--In applying for a loan under subsection 
        (a), the plan sponsor shall--
                    (A) demonstrate that, except as provided in 
                subparagraph (C)--
                            (i) the loan will enable the plan to avoid 
                        insolvency for at least the 30-year period 
                        described in subparagraphs (A) and (B) of 
                        subsection (b)(1) or, in the case of a plan 
                        which is already insolvent, to emerge from 
                        insolvency within and avoid insolvency for the 
                        remainder of such period; and
                            (ii) the plan is reasonably expected to be 
                        able to pay benefits and the interest on the 
                        loan during such period and to accumulate 
                        sufficient funds to repay the principal when 
                        due;
                    (B) provide the plan's most recently filed Form 
                5500 as of the date of application and any other 
                information necessary to determine the loan amount 
                under subsection (d);
                    (C) stipulate whether the plan is also applying for 
                financial assistance under section 4261(d) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1431(d)) in combination with the loan to enable 
                the plan to avoid insolvency and to pay benefits, or is 
                already receiving such financial assistance as a result 
                of a previous application;
                    (D) state in what manner the loan proceeds will be 
                invested pursuant to subsection (d), the person from 
                whom any annuity contracts under such subsection will 
                be purchased, and the person who will be the investment 
                manager for any portfolio implemented under such 
                subsection; and
                    (E) include such other information and 
                certifications as the Director of the Pension 
                Rehabilitation Administration shall require.
            (2) Standard for accepting actuarial and plan sponsor 
        determinations and demonstrations in the application.--In 
        evaluating the plan sponsor's application, the Director of the 
        Pension Rehabilitation Administration shall accept the 
        determinations and demonstrations in the application unless the 
        Director, in consultation with the Director of the Pension 
        Benefit Guaranty Corporation, the Secretary of the Treasury, 
        and the Secretary of Labor, concludes that any such 
        determinations or demonstrations in the application (or any 
        underlying assumptions) are unreasonable or are inconsistent 
        with any rules issued by the Director pursuant to subsection 
        (g).
            (3) Required actions; deemed approval.--The Director of the 
        Pension Rehabilitation Administration shall approve or deny any 
        application under this subsection within 90 days after the 
        submission of such application. An application shall be deemed 
        approved unless, within such 90 days, the Director notifies the 
        plan sponsor of the denial of such application and the reasons 
        for such denial. Any approval or denial of an application by 
        the Director of the Pension Rehabilitation Administration shall 
        be treated as a final agency action for purposes of section 704 
        of title 5, United States Code. The Pension Rehabilitation 
        Administration shall make the loan pursuant to any application 
        promptly after the approval of such application.
            (4) Certain plans required to apply.--The plan sponsor of 
        any plan with respect to which a suspension of benefits has 
        been approved under section 432(e)(9) of the Internal Revenue 
        Code of 1986 and section 305(e)(9) of the Employee Retirement 
        Income Security Act of 1974 or under section 418E of such Code, 
        before the date of the enactment of this Act shall apply for a 
        loan under this section. The Director of the Pension 
        Rehabilitation Administration shall provide for such plan 
        sponsors to use the simplified application under subsection 
        (d)(2)(B).
            (5) Incentive for early repayment.--The plan sponsor may 
        elect at the time of the application to repay the loan 
        principal, along with the remaining interest, at least as 
        rapidly as equal installments over the 10-year period beginning 
        with the 21st year after the date of the loan. In the case of a 
        plan making this election, the interest on the loan shall be 
        reduced by 0.5 percentage points.
    (d) Loan Amount and Use.--
            (1) Amount of loan.--
                    (A) In general.--Except as provided in subparagraph 
                (B) and paragraph (2), the amount of any loan under 
                subsection (a) shall be, as demonstrated by the plan 
                sponsor on the application under subsection (c), the 
                amount needed to purchase annuity contracts or to 
                implement a portfolio described in paragraph (3)(C) (or 
                a combination of the two) sufficient to provide 
                benefits of participants and beneficiaries of the plan 
                in pay status, and terminated vested benefits, at the 
                time the loan is made.
                    (B) Plans with suspended benefits.--In the case of 
                a plan with respect to which a suspension of benefits 
                has been approved under section 432(e)(9) of the 
                Internal Revenue Code of 1986 and section 305(e)(9) of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1085(e)(9)) or under section 418E of such Code--
                            (i) the suspension of benefits shall not be 
                        taken into account in applying subparagraph 
                        (A); and
                            (ii) the loan amount shall be the amount 
                        sufficient to provide benefits of participants 
                        and beneficiaries of the plan in pay status and 
                        terminated vested benefits at the time the loan 
                        is made, determined without regard to the 
                        suspension, including retroactive payment of 
                        benefits which would otherwise have been 
                        payable during the period of the suspension.
            (2) Coordination with pbgc financial assistance.--
                    (A) In general.--In the case of a plan which is 
                also applying for financial assistance under section 
                4261(d) of the Employee Retirement Income Security Act 
                of 1974 (29 U.S.C. 1431(d))--
                            (i) the plan sponsor shall submit the loan 
                        application and the application for financial 
                        assistance jointly to the Pension 
                        Rehabilitation Administration and the Pension 
                        Benefit Guaranty Corporation with the 
                        information necessary to determine the 
                        eligibility for and amount of the loan under 
                        this section and the financial assistance under 
                        section 4261(d) of such Act; and
                            (ii) if such financial assistance is 
                        granted, the amount of the loan under 
                        subsection (a) shall not exceed an amount equal 
                        to the excess of--
                                    (I) the amount determined under 
                                paragraph (1)(A) or (1)(B)(ii) 
                                (whichever is applicable); over
                                    (II) the amount of such financial 
                                assistance.
                    (B) Plans already receiving pbgc assistance.--The 
                Director of the Pension Rehabilitation Administration 
                shall provide for a simplified application for the loan 
                under this section which may be used by an insolvent 
                plan which has not been terminated and which is already 
                receiving financial assistance (other than under 
                section 4261(d) of such Act) from the Pension Benefit 
                Guaranty Corporation at the time of the application for 
                the loan under this section.
            (3) Use of loan funds.--
                    (A) In general.--Notwithstanding section 
                432(f)(2)(A)(ii) of the Internal Revenue Code of 1986 
                and section 305(f)(2)(A)(ii) of such Act, the loan 
                received under subsection (a) shall only be used to 
                purchase annuity contracts which meet the requirements 
                of subparagraph (B) or to implement a portfolio 
                described in subparagraph (C) (or a combination of the 
                two) to provide the benefits described in paragraph 
                (1).
                    (B) Annuity contract requirements.--The annuity 
                contracts purchased under subparagraph (A) shall be 
                issued by an insurance company which is licensed to do 
                business under the laws of any State and which is rated 
                A or better by a nationally recognized statistical 
                rating organization, and the purchase of such contracts 
                shall meet all applicable fiduciary standards under the 
                Employee Retirement Income Security Act of 1974.
                    (C) Portfolio.--
                            (i) In general.--A portfolio described in 
                        this subparagraph is--
                                    (I) a cash matching portfolio or 
                                duration matching portfolio consisting 
                                of investment grade (as rated by a 
                                nationally recognized statistical 
                                rating organization) fixed income 
                                investments, including United States 
                                dollar-denominated public or private 
                                debt obligations issued or guaranteed 
                                by the United States or a foreign 
                                issuer, which are tradeable in United 
                                States currency and are issued at fixed 
                                or zero coupon rates; or
                                    (II) any other portfolio prescribed 
                                by the Secretary of the Treasury in 
                                regulations which has a similar risk 
                                profile to the portfolios described in 
                                subclause (I) and is equally protective 
                                of the interests of participants and 
                                beneficiaries.
                        Once implemented, such a portfolio shall be 
                        maintained until all liabilities to 
                        participants and beneficiaries in pay status, 
                        and terminated vested participants, at the time 
                        of the loan are satisfied.
                            (ii) Fiduciary duty.--Any investment 
                        manager of a portfolio under this subparagraph 
                        shall acknowledge in writing that such person 
                        is a fiduciary under the Employee Retirement 
                        Income Security Act of 1974 with respect to the 
                        plan.
                            (iii) Treatment of participants and 
                        beneficiaries.--Participants and beneficiaries 
                        covered by a portfolio under this subparagraph 
                        shall continue to be treated as participants 
                        and beneficiaries of the plan, including for 
                        purposes of title IV of the Employee Retirement 
                        Income Security Act of 1974.
                    (D) Accounting.--
                            (i) In general.--Annuity contracts 
                        purchased and portfolios implemented under this 
                        paragraph shall be used solely to provide the 
                        benefits described in paragraph (1) until all 
                        such benefits have been paid and shall be 
                        accounted for separately from the other assets 
                        of the plan.
                            (ii) Oversight of non-annuity 
                        investments.--
                                    (I) In general.--Any portfolio 
                                implemented under this paragraph shall 
                                be subject to oversight by the Pension 
                                Rehabilitation Administration, 
                                including a mandatory triennial review 
                                of the adequacy of the portfolio to 
                                provide the benefits described in 
                                paragraph (1) and approval (to be 
                                provided within a reasonable period of 
                                time) of any decision by the plan 
                                sponsor to change the investment 
                                manager of the portfolio.
                                    (II) Remedial action.--If the 
                                oversight under subclause (I) 
                                determines an inadequacy, the plan 
                                sponsor shall take remedial action to 
                                ensure that the inadequacy will be 
                                cured within 2 years of such 
                                determination.
                    (E) Ombudsperson.--The Participant and Plan Sponsor 
                Advocate established under section 4004 of the Employee 
                Retirement Income Security Act of 1974 shall act as 
                ombudsperson for participants and beneficiaries on 
                behalf of whom annuity contracts are purchased or who 
                are covered by a portfolio under this paragraph.
    (e) Collection of Repayment.--Except as provided in subsection (f), 
the Pension Rehabilitation Administration shall make every effort to 
collect repayment of loans under this section in accordance with 
section 3711 of title 31, United States Code.
    (f) Loan Default.--If a plan is unable to make any payment on a 
loan under this section when due, the Pension Rehabilitation 
Administration shall negotiate with the plan sponsor revised terms for 
repayment (including installment payments over a reasonable period or 
forgiveness of a portion of the loan principal), but only to the extent 
necessary to avoid insolvency in the subsequent 18 months.
    (g) Authority To Issue Rules, Etc.--The Director of the Pension 
Rehabilitation Administration, in consultation with the Director of the 
Pension Benefit Guaranty Corporation, the Secretary of the Treasury, 
and the Secretary of Labor, is authorized to issue rules regarding the 
form, content, and process of applications for loans under this 
section, actuarial standards and assumptions to be used in making 
estimates and projections for purposes of such applications, and 
assumptions regarding interest rates, mortality, and distributions with 
respect to a portfolio described in subsection (d)(3)(C).
    (h) Report to Congress on Status of Certain Plans With Loans.--Not 
later than 1 year after the date of the enactment of this Act, and 
annually thereafter, the Director of the Pension Rehabilitation 
Administration shall submit to the Committee on Ways and Means and the 
Committee on Education and Labor of the House of Representatives, and 
the Committee on Finance and the Committee on Health, Education, Labor 
and Pensions of the Senate, a report identifying any plan that--
            (1) has failed to make any scheduled payment on a loan 
        under this section;
            (2) has negotiated revised terms for repayment of such loan 
        (including any installment payments or forgiveness of a portion 
        of the loan principal); or
            (3) the Director has determined is no longer reasonably 
        expected to be able to--
                    (A) pay benefits and the interest on the loan; or
                    (B) accumulate sufficient funds to repay the 
                principal when due.
Such report shall include the details of any such failure, revised 
terms, or determination, as the case may be.
    (i) Coordination With Taxation of Unrelated Business Income.--
Subparagraph (A) of section 514(c)(6) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii)(II) 
        and inserting ``, or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) indebtedness with respect to a 
                        multiemployer plan under a loan made by the 
                        Pension Rehabilitation Administration pursuant 
                        to section 4 of the Rehabilitation for 
                        Multiemployer Pensions Act of 2019.''.

SEC. 5. COORDINATION WITH WITHDRAWAL LIABILITY AND FUNDING RULES.

    (a) Amendment to Internal Revenue Code of 1986.--Section 432 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(k) Special Rules for Plans Receiving Pension Rehabilitation 
Loans.--
            ``(1) Determination of withdrawal liability.--
                    ``(A) In general.--If any employer participating in 
                a plan at the time the plan receives a loan under 
                section 4(a) of the Rehabilitation for Multiemployer 
                Pensions Act of 2019 withdraws from the plan before the 
                end of the 30-year period beginning on the date of the 
                loan, the withdrawal liability of such employer shall 
                be determined under the Employee Retirement Income 
                Security Act of 1974--
                            ``(i) by applying section 4219(c)(1)(D) of 
                        the Employee Retirement Income Security Act of 
                        1974 as if the plan were terminating by the 
                        withdrawal of every employer from the plan, and
                            ``(ii) by determining the value of 
                        nonforfeitable benefits under the plan at the 
                        time of the deemed termination by using the 
                        interest assumptions prescribed for purposes of 
                        section 4044 of the Employee Retirement Income 
                        Security Act of 1974, as prescribed in the 
                        regulations under section 4281 of the Employee 
                        Retirement Income Security Act of 1974 in the 
                        case of such a mass withdrawal.
                    ``(B) Annuity contracts and investment portfolios 
                purchased with loan funds.--Annuity contracts purchased 
                and portfolios implemented under section 4(d)(3) of the 
                Rehabilitation for Multiemployer Pensions Act of 2019 
                shall not be taken into account as plan assets in 
                determining the withdrawal liability of any employer 
                under subparagraph (A), but the amount equal to the 
                greater of--
                            ``(i) the benefits provided under such 
                        contracts or portfolios to participants and 
                        beneficiaries, or
                            ``(ii) the remaining payments due on the 
                        loan under section 4(a) of such Act,
                shall be taken into account as unfunded vested benefits 
                in determining such withdrawal liability.
            ``(2) Coordination with funding requirements.--In the case 
        of a plan which receives a loan under section 4(a) of the 
        Rehabilitation for Multiemployer Pensions Act of 2019--
                    ``(A) annuity contracts purchased and portfolios 
                implemented under section 4(d)(3) of such Act, and the 
                benefits provided to participants and beneficiaries 
                under such contracts or portfolios, shall not be taken 
                into account in determining minimum required 
                contributions under section 412,
                    ``(B) payments on the interest and principal under 
                the loan, and any benefits owed in excess of those 
                provided under such contracts or portfolios, shall be 
                taken into account as liabilities for purposes of such 
                section, and
                    ``(C) if such a portfolio is projected due to 
                unfavorable investment or actuarial experience to be 
                unable to fully satisfy the liabilities which it 
                covers, the amount of the liabilities projected to be 
                unsatisfied shall be taken into account as liabilities 
                for purposes of such section.''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Section 305 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1085) is amended by adding at the end the following new 
subsection:
    ``(k) Special Rules for Plans Receiving Pension Rehabilitation 
Loans.--
            ``(1) Determination of withdrawal liability.--
                    ``(A) In general.--If any employer participating in 
                a plan at the time the plan receives a loan under 
                section 4(a) of the Rehabilitation for Multiemployer 
                Pensions Act of 2019 withdraws from the plan before the 
                end of the 30-year period beginning on the date of the 
                loan, the withdrawal liability of such employer shall 
                be determined--
                            ``(i) by applying section 4219(c)(1)(D) as 
                        if the plan were terminating by the withdrawal 
                        of every employer from the plan, and
                            ``(ii) by determining the value of 
                        nonforfeitable benefits under the plan at the 
                        time of the deemed termination by using the 
                        interest assumptions prescribed for purposes of 
                        section 4044, as prescribed in the regulations 
                        under section 4281 in the case of such a mass 
                        withdrawal.
                    ``(B) Annuity contracts and investment portfolios 
                purchased with loan funds.--Annuity contracts purchased 
                and portfolios implemented under section 4(d)(3) of the 
                Rehabilitation for Multiemployer Pensions Act of 2019 
                shall not be taken into account in determining the 
                withdrawal liability of any employer under subparagraph 
                (A), but the amount equal to the greater of--
                            ``(i) the benefits provided under such 
                        contracts or portfolios to participants and 
                        beneficiaries, or
                            ``(ii) the remaining payments due on the 
                        loan under section 4(a) of such Act,
                shall be taken into account as unfunded vested benefits 
                in determining such withdrawal liability.
            ``(2) Coordination with funding requirements.--In the case 
        of a plan which receives a loan under section 4(a) of the 
        Rehabilitation for Multiemployer Pensions Act of 2019--
                    ``(A) annuity contracts purchased and portfolios 
                implemented under section 4(d)(3) of such Act, and the 
                benefits provided to participants and beneficiaries 
                under such contracts or portfolios, shall not be taken 
                into account in determining minimum required 
                contributions under section 302,
                    ``(B) payments on the interest and principal under 
                the loan, and any benefits owed in excess of those 
                provided under such contracts or portfolios, shall be 
                taken into account as liabilities for purposes of such 
                section, and
                    ``(C) if such a portfolio is projected due to 
                unfavorable investment or actuarial experience to be 
                unable to fully satisfy the liabilities which it 
                covers, the amount of the liabilities projected to be 
                unsatisfied shall be taken into account as liabilities 
                for purposes of such section.''.

SEC. 6. ISSUANCE OF TREASURY BONDS.

    The Secretary of the Treasury shall from time to time transfer from 
the general fund of the Treasury to the Pension Rehabilitation Trust 
Fund established under section 9512 of the Internal Revenue Code of 
1986 such amounts as are necessary to fund the loan program under 
section 4 of this Act, including from proceeds from the Secretary's 
issuance of obligations under chapter 31 of title 31, United States 
Code.

SEC. 7. REPORTS OF PLANS RECEIVING PENSION REHABILITATION LOANS.

    (a) In General.--Subpart E of part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 6059A. REPORTS OF PLANS RECEIVING PENSION REHABILITATION LOANS.

    ``(a) In General.--In the case of a plan receiving a loan under 
section 4(a) of the Rehabilitation for Multiemployer Pensions Act of 
2019, with respect to the first plan year beginning after the date of 
the loan and each of the 29 succeeding plan years, not later than the 
90th day of each such plan year the plan sponsor shall file with the 
Secretary a report (including appropriate documentation and actuarial 
certifications from the plan actuary, as required by the Secretary) 
that contains--
            ``(1) the funded percentage (as defined in section 
        432(j)(2)) as of the first day of such plan year, and the 
        underlying actuarial value of assets (determined with regard, 
        and without regard, to annuity contracts purchased and 
        portfolios implemented with proceeds of such loan) and 
        liabilities (including any amounts due with respect to such 
        loan) taken into account in determining such percentage,
            ``(2) the market value of the assets of the plan 
        (determined as provided in paragraph (1)) as of the last day of 
        the plan year preceding such plan year,
            ``(3) the total value of all contributions made by 
        employers and employees during the plan year preceding such 
        plan year,
            ``(4) the total value of all benefits paid during the plan 
        year preceding such plan year,
            ``(5) cash flow projections for such plan year and the 9 
        succeeding plan years, and the assumptions used in making such 
        projections,
            ``(6) funding standard account projections for such plan 
        year and the 9 succeeding plan years, and the assumptions 
        relied upon in making such projections,
            ``(7) the total value of all investment gains or losses 
        during the plan year preceding such plan year,
            ``(8) any significant reduction in the number of active 
        participants during the plan year preceding such plan year, and 
        the reason for such reduction,
            ``(9) a list of employers that withdrew from the plan in 
        the plan year preceding such plan year, and the resulting 
        reduction in contributions,
            ``(10) a list of employers that paid withdrawal liability 
        to the plan during the plan year preceding such plan year and, 
        for each employer, a total assessment of the withdrawal 
        liability paid, the annual payment amount, and the number of 
        years remaining in the payment schedule with respect to such 
        withdrawal liability,
            ``(11) any material changes to benefits, accrual rates, or 
        contribution rates during the plan year preceding such plan 
        year, and whether such changes relate to the terms of the loan,
            ``(12) details regarding any funding improvement plan or 
        rehabilitation plan and updates to such plan,
            ``(13) the number of participants during the plan year 
        preceding such plan year who are active participants, the 
        number of participants and beneficiaries in pay status, and the 
        number of terminated vested participants and beneficiaries,
            ``(14) the amount of any financial assistance received 
        under section 4261 of the Employee Retirement Income Security 
        Act of 1974 to pay benefits during the preceding plan year, and 
        the total amount of such financial assistance received for all 
        preceding years,
            ``(15) the information contained on the most recent annual 
        funding notice submitted by the plan under section 101(f) of 
        the Employee Retirement Income Security Act of 1974,
            ``(16) the information contained on the most recent annual 
        return under section 6058 and actuarial report under section 
        6059 of the plan, and
            ``(17) copies of the plan document and amendments, other 
        retirement benefit or ancillary benefit plans relating to the 
        plan and contribution obligations under such plans, a breakdown 
        of administrative expenses of the plan, participant census data 
        and distribution of benefits, the most recent actuarial 
        valuation report as of the plan year, copies of collective 
        bargaining agreements, and financial reports, and such other 
        information as the Secretary, in consultation with the Director 
        of the Pension Rehabilitation Administration, may require.
    ``(b) Electronic Submission.--The report required under subsection 
(a) shall be submitted electronically.
    ``(c) Information Sharing.--The Secretary shall share the 
information in the report under subsection (a) with the Secretary of 
Labor and the Director of the Pension Benefit Guaranty Corporation.
    ``(d) Report to Participants, Beneficiaries, and Employers.--Each 
plan sponsor required to file a report under subsection (a) shall, 
before the expiration of the time prescribed for the filing of such 
report, also provide a summary (written in a manner so as to be 
understood by the average plan participant) of the information in such 
report to participants and beneficiaries in the plan and to each 
employer with an obligation to contribute to the plan.''.
    (b) Penalty.--Subsection (e) of section 6652 of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``, 6059A (relating to reports of plans 
        receiving pension rehabilitation loans)'' after ``deferred 
        compensation)'';
            (2) by inserting ``($100 in the case of failures under 
        section 6059A)'' after ``$25''; and
            (3) by adding at the end the following: ``In the case of a 
        failure with respect to section 6059A, the amount imposed under 
        this subsection shall not be paid from the assets of the 
        plan.''.
    (c) Clerical Amendment.--The table of sections for subpart E of 
part III of subchapter A of chapter 61 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 6059A. Reports of plans receiving pension rehabilitation 
                            loans.''.

SEC. 8. PBGC FINANCIAL ASSISTANCE.

    (a) In General.--Section 4261 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1431) is amended by adding at the end 
the following new subsection:
    ``(d)(1) The plan sponsor of a multiemployer plan--
            ``(A) which is in critical and declining status (within the 
        meaning of section 305(b)(6)) as of the date of the enactment 
        of this subsection, or with respect to which a suspension of 
        benefits has been approved under section 305(e)(9) as of such 
        date;
            ``(B) which, as of such date of enactment, is in critical 
        status (within the meaning of section 305(b)(2)), has a 
        modified funded percentage of less than 40 percent (as defined 
        in section 4(a)(1) of the Rehabilitation for Multiemployer 
        Pensions Act of 2019), and has a ratio of active to inactive 
        participants which is less than 2 to 5; or
            ``(C) which is insolvent for purposes of section 418E of 
        the Internal Revenue Code of 1986 as of such date of enactment, 
        if the plan became insolvent after December 16, 2014, and has 
        not been terminated;
and which is applying for a loan under section 4(a) of the 
Rehabilitation for Multiemployer Pensions Act of 2019 may also apply to 
the corporation for financial assistance under this subsection, by 
jointly submitting such applications in accordance with section 4(d)(2) 
of such Act. The application for financial assistance under this 
subsection shall demonstrate, based on projections by the plan actuary, 
that after the receipt of the anticipated loan amount under section 
4(a) of such Act, the plan will still become (or remain) insolvent 
within the 30-year period beginning on the date of the loan.
    ``(2) In reviewing an application under paragraph (1), the 
corporation shall review the determinations and demonstrations 
submitted with the loan application under section 4(c) of the 
Rehabilitation for Multiemployer Pensions Act of 2019 and provide 
guidance regarding such determinations and demonstrations prior to 
approving any application for financial assistance under this 
subsection. The corporation may deny any application if any such 
determinations or demonstrations (or any underlying assumptions) are 
unreasonable, or inconsistent with rules issued by the corporation, and 
the plan and the corporation are unable to reach agreement on such 
determinations or demonstrations. The corporation shall prescribe any 
such rules or guidance not later than December 31, 2019.
    ``(3)(A) In the case of a plan described in paragraph (1)(A) or 
(1)(B), the total financial assistance provided under this subsection 
shall be an amount equal to the smallest portion of the loan amount 
with respect to the plan under paragraph (1)(A) or (1)(B)(ii) of 
section 4(d) of the Rehabilitation for Multiemployer Pensions Act of 
2019 (determined without regard to paragraph (2) thereof) that, if 
provided as financial assistance under this subsection instead of a 
loan, would allow the plan to avoid the projected insolvency.
    ``(B) Such amount shall not exceed the present value of the maximum 
guaranteed benefit with respect to all participants and beneficiaries 
of the plan under sections 4022A and 4022B. For purposes of the 
preceding sentence, the present value of the maximum guaranteed benefit 
amount shall be determined by disregarding any loan available from the 
Pension Rehabilitation Administration and shall be determined as if the 
plan were insolvent on the date of the application, and the present 
value of the maximum guaranteed benefit amount with respect to such 
participants and beneficiaries may be calculated in the aggregate, 
rather than by reference to the benefit of each such participant or 
beneficiary.
    ``(4) In the case of a plan described in paragraph (1)(C), the 
financial assistance provided pursuant to such application under this 
subsection shall be the present value of the amount (determined by the 
plan actuary and submitted on the application) that, if such amount 
were paid by the corporation in combination with the loan and any other 
assistance being provided to the plan by the corporation at the time of 
the application, would enable the plan to emerge from insolvency and 
avoid any other insolvency projected under paragraph (1).
    ``(5)(A)(i) Except as provided in subparagraph (B), if the 
corporation determines at the time of approval, or at the beginning of 
any plan year beginning thereafter, that the plan's 5-year expenditure 
projection (determined without regard to loan payments described in 
clause (iii)(III)) exceeds the fair market value of the plan's assets, 
the corporation shall (subject to the total amount of financial 
assistance approved under this subsection) provide such assistance in 
an amount equal to the lesser of--
                    ``(I) the amount by which the plan's 5-year 
                expenditure projection exceeds such fair market value; 
                or
                    ``(II) the plan's expected expenditures for the 
                plan year.
    ``(ii) For purposes of this subparagraph, the term `5-year 
expenditure projection' means, with respect to any plan for a plan 
year, an amount equal to 500 percent of the plan's expected 
expenditures for the plan year.
    ``(iii) For purposes of this subparagraph, the term `expected 
expenditures' means, with respect to any plan for a plan year, an 
amount equal to the sum of--
            ``(I) expected benefit payments for the plan year;
            ``(II) expected administrative expense payments for the 
        plan year; plus
            ``(III) payments on the loan scheduled during the plan year 
        pursuant to the terms of the loan under section 4(b) of the 
        Rehabilitation for Multiemployer Pensions Act of 2019.
    ``(iv) For purposes of this subparagraph, in the case of any plan 
year during which a plan is approved for a loan under section 4 of such 
Act, but has not yet received the proceeds, such proceeds shall be 
included in determining the fair market value of the plan's assets for 
the plan year. The preceding sentence shall not apply in the case of 
any plan that for the plan year beginning in 2015 was certified 
pursuant to section 305(b)(3) as being in critical and declining 
status, and had more than 300,000 participants.
    ``(B) The financial assistance under this subsection shall be 
provided in a lump sum if the plan sponsor demonstrates in the 
application, and the corporation determines, that such a lump sum 
payment is necessary for the plan to avoid the insolvency to which the 
application relates. In the case of a plan described in paragraph 
(1)(C), such lump sum shall be provided not later than December 31, 
2020.
    ``(6) Subsections (b) and (c) shall apply to financial assistance 
under this subsection as if it were provided under subsection (a), 
except that the terms for repayment under subsection (b)(2) shall not 
require the financial assistance to be repaid before the date on which 
the loan under section 4(a) of the Rehabilitation for Multiemployer 
Pensions Act of 2019 is repaid in full.
    ``(7) The corporation may forgo repayment of the financial 
assistance provided under this subsection if necessary to avoid any 
suspension of the accrued benefits of participants.''.
    (b) Appropriations.--There is appropriated to the Director of the 
Pension Benefit Guaranty Corporation such sums as may be necessary for 
each fiscal year to provide the financial assistance described in 
section 4261(d) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1431(d)) (as added by this section) (including necessary 
administrative and operating expenses relating to such assistance).

SEC. 9. MODIFICATION OF REQUIRED DISTRIBUTION RULES FOR DESIGNATED 
              BENEFICIARIES.

    (a) Modification of Rules Where Employee Dies Before Entire 
Distribution.--
            (1) In general.--Section 401(a)(9) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        subparagraph:
                    ``(H) Special rules for certain defined 
                contribution plans.--In the case of a defined 
                contribution plan, if an employee dies before the 
                distribution of the employee's entire interest--
                            ``(i) In general.--Except in the case of a 
                        beneficiary who is not a designated 
                        beneficiary, subparagraph (B)(ii)--
                                    ``(I) shall be applied by 
                                substituting `10 years' for `5 years', 
                                and
                                    ``(II) shall apply whether or not 
                                distributions of the employee's 
                                interests have begun in accordance with 
                                subparagraph (A).
                            ``(ii) Exception only for eligible 
                        designated beneficiaries.--Subparagraph 
                        (B)(iii) shall apply only in the case of an 
                        eligible designated beneficiary.
                            ``(iii) Rules upon death of eligible 
                        designated beneficiary.--If an eligible 
                        designated beneficiary dies before the portion 
                        of the employee's interest to which this 
                        subparagraph applies is entirely distributed, 
                        the exception under clause (iii) shall not 
                        apply to any beneficiary of such eligible 
                        designated beneficiary and the remainder of 
                        such portion shall be distributed within 10 
                        years after the death of such eligible 
                        designated beneficiary.
                            ``(iv) Application to certain eligible 
                        retirement plans.--For purposes of applying the 
                        provisions of this subparagraph in determining 
                        amounts required to be distributed pursuant to 
                        this paragraph, all eligible retirement plans 
                        (as defined in section 402(c)(8)(B), other than 
                        a defined benefit plan described in clause (iv) 
                        or (v) thereof or a qualified trust which is a 
                        part of a defined benefit plan) shall be 
                        treated as a defined contribution plan.''.
            (2) Definition of eligible designated beneficiary.--Section 
        401(a)(9)(E) of such Code is amended to read as follows:
                    ``(E) Definitions and rules relating to designated 
                beneficiary.--For purposes of this paragraph--
                            ``(i) Designated beneficiary.--The term 
                        `designated beneficiary' means any individual 
                        designated as a beneficiary by the employee.
                            ``(ii) Eligible designated beneficiary.--
                        The term `eligible designated beneficiary' 
                        means, with respect to any employee, any 
                        designated beneficiary who is--
                                    ``(I) the surviving spouse of the 
                                employee,
                                    ``(II) subject to clause (iii), a 
                                child of the employee who has not 
                                reached majority (within the meaning of 
                                subparagraph (F)),
                                    ``(III) disabled (within the 
                                meaning of section 72(m)(7)),
                                    ``(IV) a chronically ill individual 
                                (within the meaning of section 
                                7702B(c)(2), except that the 
                                requirements of subparagraph (A)(i) 
                                thereof shall only be treated as met if 
                                there is a certification that, as of 
                                such date, the period of inability 
                                described in such subparagraph with 
                                respect to the individual is an 
                                indefinite one which is reasonably 
                                expected to be lengthy in nature), or
                                    ``(V) an individual not described 
                                in any of the preceding subclauses who 
                                is not more than 10 years younger than 
                                the employee.
                            ``(iii) Special rule for children.--Subject 
                        to subparagraph (F), an individual described in 
                        clause (ii)(II) shall cease to be an eligible 
                        designated beneficiary as of the date the 
                        individual reaches majority and any remainder 
                        of the portion of the individual's interest to 
                        which subparagraph (H)(ii) applies shall be 
                        distributed within 10 years after such date.
                            ``(iv) Time for determination of eligible 
                        designated beneficiary.--The determination of 
                        whether a designated beneficiary is an eligible 
                        designated beneficiary shall be made as of the 
                        date of death of the employee.''.
            (3) Effective dates.--
                    (A) In general.--Except as provided in this 
                paragraph and paragraphs (4) and (5), the amendments 
                made by this subsection shall apply to distributions 
                with respect to employees who die after December 31, 
                2019.
                    (B) Collective bargaining exception.--In the case 
                of a plan maintained pursuant to one or more collective 
                bargaining agreements between employee representatives 
                and one or more employers ratified before the date of 
                enactment of this Act, the amendments made by this 
                subsection shall apply to distributions with respect to 
                employees who die in calendar years beginning after the 
                earlier of--
                            (i) the later of--
                                    (I) the date on which the last of 
                                such collective bargaining agreements 
                                terminates (determined without regard 
                                to any extension thereof agreed to on 
                                or after the date of the enactment of 
                                this Act); or
                                    (II) December 31, 2019; or
                            (ii) December 31, 2021.
                For purposes of clause (i)(I), any plan amendment made 
                pursuant to a collective bargaining agreement relating 
                to the plan which amends the plan solely to conform to 
                any requirement added by this section shall not be 
                treated as a termination of such collective bargaining 
                agreement.
                    (C) Governmental plans.--In the case of a 
                governmental plan (as defined in section 414(d) of the 
                Internal Revenue Code of 1986), subparagraph (A) shall 
                be applied by substituting ``December 31, 2021'' for 
                ``December 31, 2019''.
            (4) Exception for certain existing annuity contracts.--
                    (A) In general.--The amendments made by this 
                subsection shall not apply to a qualified annuity which 
                is a binding annuity contract in effect on the date of 
                enactment of this Act and at all times thereafter.
                    (B) Qualified annuity.--For purposes of this 
                paragraph, the term ``qualified annuity'' means, with 
                respect to an employee, an annuity--
                            (i) which is a commercial annuity (as 
                        defined in section 3405(e)(6) of the Internal 
                        Revenue Code of 1986);
                            (ii) under which the annuity payments are 
                        made over the life of the employee or over the 
                        joint lives of such employee and a designated 
                        beneficiary (or over a period not extending 
                        beyond the life expectancy of such employee or 
                        the joint life expectancy of such employee and 
                        a designated beneficiary) in accordance with 
                        the regulations described in section 
                        401(a)(9)(A)(ii) of such Code (as in effect 
                        before such amendments) and which meets the 
                        other requirements of section 401(a)(9) of such 
                        Code (as so in effect) with respect to such 
                        payments; and
                            (iii) with respect to which--
                                    (I) annuity payments to the 
                                employee have begun before the date of 
                                enactment of this Act, and the employee 
                                has made an irrevocable election before 
                                such date as to the method and amount 
                                of the annuity payments to the employee 
                                or any designated beneficiaries; or
                                    (II) if subclause (I) does not 
                                apply, the employee has made an 
                                irrevocable election before the date of 
                                enactment of this Act as to the method 
                                and amount of the annuity payments to 
                                the employee or any designated 
                                beneficiaries.
            (5) Exception for certain beneficiaries.--
                    (A) In general.--If an employee dies before the 
                effective date, then, in applying the amendments made 
                by this subsection to such employee's designated 
                beneficiary who dies after such date--
                            (i) such amendments shall apply to any 
                        beneficiary of such designated beneficiary; and
                            (ii) the designated beneficiary shall be 
                        treated as an eligible designated beneficiary 
                        for purposes of applying section 
                        401(a)(9)(H)(ii) of the Internal Revenue Code 
                        of 1986 (as in effect after such amendments).
                    (B) Effective date.--For purposes of this 
                paragraph, the term ``effective date'' means the first 
                day of the first calendar year to which the amendments 
                made by this subsection apply to a plan with respect to 
                employees dying on or after such date.
    (b) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any plan 
        amendment--
                    (A) such plan shall be treated as being operated in 
                accordance with the terms of the plan during the period 
                described in paragraph (2)(B)(i); and
                    (B) except as provided by the Secretary of the 
                Treasury, such plan shall not fail to meet the 
                requirements of section 411(d)(6) of the Internal 
                Revenue Code of 1986 and section 204(g) of the Employee 
                Retirement Income Security Act of 1974 by reason of 
                such amendment.
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or which is made--
                            (i) pursuant to any amendment made by this 
                        section or pursuant to any regulation issued by 
                        the Secretary of the Treasury under this 
                        section or such amendments; and
                            (ii) on or before the last day of the first 
                        plan year beginning after December 31, 2021, or 
                        such later date as the Secretary of the 
                        Treasury may prescribe.
                In the case of a governmental or collectively bargained 
                plan to which subparagraph (B) or (C) of subsection 
                (a)(4) applies, clause (ii) shall be applied by 
                substituting the date which is 2 years after the date 
                otherwise applied under such clause.
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) during the period--
                                    (I) beginning on the date the 
                                legislative or regulatory amendment 
                                described in paragraph (1)(A) takes 
                                effect (or in the case of a plan 
                                amendment not required by such 
                                legislative or regulatory amendment, 
                                the effective date specified by the 
                                plan); and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan amendment is 
                                adopted),
                        the plan is operated as if such plan amendment 
                        were in effect; and
                            (ii) such plan amendment applies 
                        retroactively for such period.

SEC. 10. INCREASE IN PENALTY FOR FAILURE TO FILE.

    (a) In General.--The second sentence of section 6651(a) of the 
Internal Revenue Code of 1986, as amended by the Taxpayer First Act, is 
amended by striking ``$330'' and inserting ``$435''.
    (b) Inflation Adjustment.--Section 6651(j)(1) of such Code, as 
amended by such Act, is amended by striking ``$330'' and inserting 
``$435''.
    (c) Effective Date.--The amendments made by this section shall 
apply to returns the due date for which (including extensions) is after 
December 31, 2019.

SEC. 11. INCREASED PENALTIES FOR FAILURE TO FILE RETIREMENT PLAN 
              RETURNS.

    (a) In General.--Subsection (e) of section 6652 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``$25'' and inserting ``$250''; and
            (2) by striking ``$15,000'' and inserting ``$150,000''.
    (b) Annual Registration Statement and Notification of Changes.--
Subsection (d) of section 6652 of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``$1'' both places it appears in paragraphs 
        (1) and (2) and inserting ``$10'';
            (2) by striking ``$5,000'' in paragraph (1) and inserting 
        ``$50,000''; and
            (3) by striking ``$1,000'' in paragraph (2) and inserting 
        ``$10,000''.
    (c) Failure To Provide Notice.--Subsection (h) of section 6652 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$10'' and inserting ``$100''; and
            (2) by striking ``$5,000'' and inserting ``$50,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to returns, statements, and notifications required to be filed, 
and notices required to be provided, after December 31, 2019.

SEC. 12. INCREASE INFORMATION SHARING TO ADMINISTER EXCISE TAXES.

    (a) In General.--Section 6103(o) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(3) Taxes imposed by section 4481.--Returns and return 
        information with respect to taxes imposed by section 4481 shall 
        be open to inspection by or disclosure to officers and 
        employees of United States Customs and Border Protection of the 
        Department of Homeland Security whose official duties require 
        such inspection or disclosure for purposes of administering 
        such section.''.
    (b) Conforming Amendments.--Paragraph (4) of section 6103(p) of the 
Internal Revenue Code of 1986 is amended by striking ``or (o)(1)(A)'' 
each place it appears and inserting ``, (o)(1)(A), or (o)(3)''.

            Passed the House of Representatives July 24, 2019.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.
```