I 
115TH CONGRESS 
1ST SESSION H. R. 3145 
To provide the legal framework and income tax treatment necessary for 
the growth of innovative private financing options, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2017 
Mr. MESSER (for himself, Mr. POLIS, Mr. HOLLINGSWORTH, Mrs. WALORSKI, 
Mr. PAULSEN, Mr. BANKS of Indiana, Ms. SINEMA, and Mr. HULTGREN) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services, and in addition to the Committees on Ways and Means, 
Education and the Workforce, Armed Services, and Veterans’ 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 com-
mittee concerned 
A BILL 
To provide the legal framework and income tax treatment 
necessary for the growth of innovative private financing 
options, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Investing in Student Achievement Act of 2017’’ or the 
‘‘ISA Act of 2017’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
TITLE I—TAX TREATMENT OF INCOME-SHARE AGREEMENTS 
Sec. 101. Tax treatment of proceeds and payments of future income. 
Sec. 102. Terms and conditions of income-share agreement contracts. 
Sec. 103. Rulemaking; model disclosure forms. 
Sec. 104. Truth in Lending Act. 
Sec. 105. Consent to continuing release of taxpayer information under income 
share agreement. 
TITLE II—TREATMENT OF INCOME-SHARE AGREEMENTS UNDER 
STATE LAW 
Sec. 201. Lawfulness of contracts; preemption of State law. 
Sec. 202. Preemption of State law with respect to usury. 
Sec. 203. Preemption pre-existing State laws with respect to ability-to-repay 
and licensing laws. 
TITLE III—QUALIFIED EDUCATION LOAN 
Sec. 301. Qualified education loan. 
TITLE IV—FEDERAL INDIVIDUAL ASSISTANCE TREATMENT OF 
INCOME-SHARE AGREEMENTS 
Sec. 401. Proceeds not treated as income in calculation of financial need under 
the Higher Education Act of 1965. 
TITLE V—TREATMENT UNDER SECURITIES LAWS 
Sec. 501. Income-share agreements not treated as securities. 
Sec. 502. Businesses making income-share agreements excluded from invest-
ment company treatment. 
TITLE VI—TREATMENT UNDER FEDERAL CONSUMER FINANCE 
LAWS 
Sec. 601. Income-share agreement anti-discrimination protections. 
Sec. 602. Prohibition on requiring preauthorized electronic fund transfers. 
Sec. 603. Treatment under the Fair Credit Reporting Act. 
Sec. 604. Application of the Military Lending Act. 
Sec. 605. Application of the Servicemembers Civil Relief Act. 
Sec. 606. Rulemaking. 
TITLE VII—TREATMENT UNDER OTHER LAWS 
Sec. 701. Insurance and wagering. 
Sec. 702. Payments not considered prepayments. 
SEC. 2. DEFINITIONS. 
For purposes of this Act: 
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(1) COMPARABLE
LOAN.—The term ‘‘com-
parable loan’’ means, with respect to an income- 
share agreement, a loan that— 
(A) has an original principal amount such 
that, after any origination fees on the loan are 
paid, the amount of loan financing received by 
the individual is equal to the total amount of 
funding provided under the income-share agree-
ment to or on behalf of the individual subject 
to the agreement; 
(B) has the same term to maturity as the 
duration of the income-share agreement; and 
(C) is fully amortized over such term with 
monthly payments of principal and interest. 
(2) INCOME-SHARE
AGREEMENT.—The term 
‘‘income-share agreement’’ means an agreement— 
(A) between an individual and an ISA 
funder; 
(B) which meets the requirements of sec-
tion 102; and 
(C) under which— 
(i) the ISA funder pays amounts to, 
or on behalf of, such individual for costs 
associated with a postsecondary training 
program, or any other program designed to 
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increase the individual’s human capital, 
employability, or earning potential (and 
not limited to programs eligible to partici-
pate in programs under title IV of the 
Higher Education Act of 1965), as well as 
any personal expenses (such as books, sup-
plies, transportation, and living costs) in-
curred by the individual while enrolled in 
such a program, or for the refinancing of 
debt used for these purposes (hereinafter 
in this Act referred to as ‘‘income-share 
funding’’); and 
(ii) such individual pays to such ISA 
funder (or the ISA funder’s successor in 
interest) amounts equal to a specified per-
centage of the individual’s future income, 
for a defined term (hereinafter in this Act 
referred to as ‘‘income-share payments’’). 
(3) ISA FUNDER.—With respect to an income- 
share agreement, the term ‘‘ISA funder’’ means the 
party to such agreement who— 
(A) pays amounts to, or on behalf of, an 
individual solely for the purposes specified in 
paragraph (2)(C)(i); and 
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