1389 
tion 1848(b) that is not less than 70 percent 
of the payment that would apply to such 
services if they were furnished under part B 
of title XVIII during such fiscal year. 
‘‘(ii) 
APPLICATION
TO
MANAGED 
CARE.—In certifying whether Puerto Rico 
has established a reimbursement floor under 
a directed payment arrangement plan that 
satisfies the requirements of clause (i)— 
‘‘(I) for fiscal year 2020, the Sec-
retary shall apply such requirements to 
payments for physician services under 
a managed care contract entered into 
or renewed after the date of enactment 
of this paragraph and disregard pay-
ments for physician services under any 
managed care contract that was en-
tered into prior to such date; and 
‘‘(II) for each of fiscal years 2020 
through 2021— 
‘‘(aa) the Secretary shall dis-
regard payments made under sub- 
capitated arrangements for serv-
ices such as primary care case 
management; and
1390 
‘‘(bb) if the reimbursement 
floor for physician services appli-
cable under a managed care con-
tract satisfies the requirements of 
clause (i) for the fiscal year in 
which the contract is entered into 
or renewed, such reimbursement 
floor shall be deemed to satisfy 
such requirements for the subse-
quent fiscal year. 
‘‘(7) PUERTO
RICO
PROGRAM
INTEGRITY
RE-
QUIREMENTS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) PROGRAM INTEGRITY LEAD.—Not 
later than 6 months after the date of enact-
ment of this paragraph, the agency respon-
sible for the administration of Puerto Rico’s 
Medicaid program under title XIX shall 
designate an officer (other than the director 
of such agency) to serve as the Program In-
tegrity Lead for such program. 
‘‘(ii) PERM REQUIREMENT.—Not later 
than 18 months after the date of enactment 
of this paragraph, Puerto Rico shall publish 
a plan, developed by Puerto Rico in coordi-
1391 
nation with the Administrator of the Cen-
ters for Medicare & Medicaid Services and 
approved by the Administrator, for how 
Puerto Rico will develop measures to satisfy 
the 
payment 
error 
rate 
measurement 
(PERM) requirements under subpart Q of 
part 431 of title 42, Code of Federal Regu-
lations (or any successor regulation). 
‘‘(iii) 
CONTRACTING
REFORM.—Not 
later than 12 months after the date of enact-
ment of this paragraph, Puerto Rico shall 
publish a contracting reform plan to combat 
fraudulent, wasteful, or abusive contracts 
under Puerto Rico’s Medicaid program 
under title XIX that includes— 
‘‘(I) metrics for evaluating the 
success of the plan; and 
‘‘(II) a schedule for publicly re-
leasing status reports on the plan. 
‘‘(iv) MEQC.—Not later than 18 
months after the date of enactment of this 
paragraph, Puerto Rico shall publish a 
plan, developed by Puerto Rico in coordina-
tion with the Administrator of the Centers 
for Medicare & Medicaid Services and ap-
1392 
proved by the Administrator, for how Puer-
to Rico will comply with the Medicaid eligi-
bility quality control (MEQC) requirements 
of subpart P of part 431 of title 42, Code 
of Federal Regulations (or any successor 
regulation). 
‘‘(B) FMAP REDUCTION FOR FAILURE TO 
MEET ADDITIONAL REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—For each fiscal 
quarter during the period beginning on 
January 1, 2020, and ending on September 
30, 2021: 
‘‘(I) For every clause under sub-
paragraph (A) with respect to which 
Puerto Rico does not fully satisfy the 
requirements described in the clause 
(including requirements imposed under 
the terms of a plan described in the 
clause) in the fiscal quarter, the Fed-
eral medical assistance percentage ap-
plicable to Puerto Rico under section 
1905(ff) shall be reduced by the number 
of percentage points determined for the 
clause and fiscal quarter under sub-
clause (II).
1393 
‘‘(II) The number of percentage 
points determined under this subclause 
with respect to a clause under subpara-
graph (A) and a fiscal quarter shall be 
the number of percentage points (not to 
exceed 2.5 percentage points) equal 
to— 
‘‘(aa) 0.25 percentage points; 
multiplied by 
‘‘(bb) the total number of 
consecutive fiscal quarters for 
which Puerto Rico has not fully 
satisfied 
the 
requirements 
de-
scribed in such clause. 
‘‘(ii) EXCEPTION
FOR
EXTENUATING 
CIRCUMSTANCES
OR
REASONABLE 
PROGRESS.—For purposes of clause (i), 
Puerto Rico shall be deemed to have fully 
satisfied the requirements of a clause under 
subparagraph (A) (including requirements 
imposed under the terms of a plan described 
in the clause) for a fiscal quarter if— 
‘‘(I) the Secretary approves an 
application from Puerto Rico describ-
ing extenuating circumstances that
1394 
prevented Puerto Rico from fully satis-
fying the requirements of the clause; or 
‘‘(II) in the case of a requirement 
imposed under the terms of a plan de-
scribed in a clause under subpara-
graph (A), Puerto Rico has made objec-
tively reasonable progress towards sat-
isfying such terms and has submitted a 
timely request for an exception to the 
imposition of a penalty to the Sec-
retary. 
‘‘(8) PROGRAM INTEGRITY LEAD REQUIREMENT 
FOR
THE
VIRGIN
ISLANDS, GUAM, THE
NORTHERN 
MARIANA ISLANDS, AND AMERICAN SAMOA.— 
‘‘(A) PROGRAM INTEGRITY LEAD REQUIRE-
MENT.—Not later than October 1, 2020, the 
agency responsible for the administration of the 
Medicaid program under title XIX of each terri-
tory specified in subparagraph (C) shall des-
ignate an officer (other than the director of such 
agency) to serve as the Program Integrity Lead 
for such program. 
‘‘(B) FMAP REDUCTION.—For each fiscal 
quarter during fiscal year 2021, if the territory 
fails to satisfy the requirement of subparagraph
1395 
(A) for the fiscal quarter, the Federal medical as-
sistance percentage applicable to the territory 
under section 1905(ff) for such fiscal quarter 
shall be reduced by the number of percentage 
points (not to exceed 5 percentage points) equal 
to— 
‘‘(i) 0.25 percentage points; multiplied 
by 
‘‘(ii) the total number of fiscal quarters 
during the fiscal year in which the territory 
failed to satisfy such requirement. 
‘‘(C) SCOPE.—This paragraph shall apply 
to the Virgin Islands, Guam, the Northern Mar-
iana Islands, and American Samoa.’’. 
(b) TREATMENT OF FUNDING UNDER ENHANCED AL-
LOTMENT PROGRAM.—Section 1935(e) of the Social Secu-
rity Act (42 U.S.C. 1396u–5(e)) is amended— 
(1) in paragraph (1)(B), by striking ‘‘if the 
State’’ and inserting ‘‘subject to paragraph (4), if the 
State’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by inserting after paragraph (3) the fol-
lowing new paragraph:
1396 
‘‘(4) TREATMENT OF FUNDING FOR CERTAIN FIS-
CAL YEARS.—Notwithstanding paragraph (1)(B), in 
the case that Puerto Rico, the Virgin Islands, Guam, 
the Northern Mariana Islands, or American Samoa 
establishes and submits to the Secretary a plan de-
scribed in paragraph (2) with respect to any of fiscal 
years 2020 through 2021, the amount specified for 
such a year in paragraph (3) for Puerto Rico, the 
Virgin Islands, Guam, the Northern Mariana Islands, 
or American Samoa, as the case may be, shall be 
taken into account in applying, as applicable, sub-
paragraph (A)(ii), (B)(ii), (C)(ii), (D)(ii), or (E)(ii) 
of section 1108(g)(2) for such year.’’. 
(c) INCREASED FMAP.—Subsection (ff) of section 
1905 of the Social Security Act (42 U.S.C. 1396d) is 
amended to read as follows: 
‘‘(ff) TEMPORARY INCREASE IN FMAP FOR TERRI-
TORIES FOR CERTAIN FISCAL YEARS.—Notwithstanding 
subsection (b) or (z)(2)— 
‘‘(1) for the period beginning October 1, 2019, 
and ending December 20, 2019, the Federal medical 
assistance percentage for Puerto Rico, the Virgin Is-
lands, Guam, the Northern Mariana Islands, and 
American Samoa shall be equal to 100 percent;
1397 
‘‘(2) subject to section 1108(g)(7)(C), for the pe-
riod beginning December 21, 2019, and ending Sep-
tember 30, 2021, the Federal medical assistance per-
centage for Puerto Rico shall be equal to 76 percent; 
and 
‘‘(3) subject to section 1108(g)(8)(B), for the pe-
riod beginning December 21, 2019, and ending Sep-
tember 30, 2021, the Federal medical assistance per-
centage for the Virgin Islands, Guam, the Northern 
Mariana Islands, and American Samoa shall be equal 
to 83 percent.’’. 
(d) ANNUAL REPORT.—Section 1108(g) of the Social 
Security Act (42 U.S.C. 1308(g)), as amended by subsection 
(a), is further amended by adding at the end the following 
new paragraph: 
‘‘(9) ANNUAL REPORT.— 
‘‘(A) IN GENERAL.—Not later than the date 
that is 30 days after the end of each fiscal year 
(beginning with fiscal year 2020 and ending 
with fiscal year 2021), in the case that a speci-
fied territory receives a Medicaid cap increase, 
or an increase in the Federal medical assistance 
percentage for such territory under section 
1905(ff), for such fiscal year, such territory shall 
submit to the Chair and Ranking Member of the
1398 
Committee on Energy and Commerce of the 
House of Representatives and the Chair and 
Ranking Member of the Committee on Finance of 
the Senate a report, employing the most up-to- 
date information available, that describes how 
such territory has used such Medicaid cap in-
crease, or such increase in the Federal medical 
assistance percentage, as applicable, to increase 
access to health care under the State Medicaid 
plan of such territory under title XIX (or a 
waiver of such plan). Such report may include— 
‘‘(i) the extent to which such territory 
has, with respect to such plan (or waiver)— 
‘‘(I) increased payments to health 
care providers; 
‘‘(II) increased covered benefits; 
‘‘(III) expanded health care pro-
vider networks; or 
‘‘(IV) improved in any other 
manner the carrying out of such plan 
(or waiver); and 
‘‘(ii) any other information as deter-
mined necessary by such territory. 
‘‘(B) DEFINITIONS.—In this paragraph:
1399 
‘‘(i) MEDICAID
CAP
INCREASE.—The 
term ‘Medicaid cap increase’ means, with 
respect to a specified territory and fiscal 
year, any increase in the amounts otherwise 
determined under this subsection for such 
territory for such fiscal year by reason of 
the amendments made by section 202 of di-
vision N of the Further Consolidated Appro-
priations Act, 2020. 
‘‘(ii) 
SPECIFIED
TERRITORY.—The 
term ‘specified territory’ means Puerto 
Rico, the Virgin Islands, Guam, the North-
ern 
Mariana 
Islands, 
and 
American 
Samoa.’’. 
(e) APPLICATION OF CERTAIN DATA REPORTING AND 
PROGRAM INTEGRITY REQUIREMENTS TO NORTHERN MAR-
IANA ISLANDS, AMERICAN SAMOA, AND GUAM.— 
(1) IN GENERAL.—Section 1902 of the Social Se-
curity Act (42 U.S.C. 1396a) is amended by adding 
at the end the following new subsection: 
‘‘(qq) APPLICATION OF CERTAIN DATA REPORTING 
AND PROGRAM INTEGRITY REQUIREMENTS TO NORTHERN 
MARIANA ISLANDS, AMERICAN SAMOA, AND GUAM.—
1400 
‘‘(1) IN GENERAL.—Not later than October 1, 
2021, the Northern Mariana Islands, American 
Samoa, and Guam shall— 
‘‘(A) demonstrate progress in implementing 
methods, satisfactory to the Secretary, for the 
collection and reporting of reliable data to the 
Transformed Medicaid Statistical Information 
System (T–MSIS) (or a successor system); and 
‘‘(B) demonstrate progress in establishing a 
State medicaid fraud control unit described in 
section 1903(q). 
‘‘(2) DETERMINATION OF PROGRESS.—For pur-
poses of paragraph (1), the Secretary shall deem that 
a territory described in such paragraph has dem-
onstrated satisfactory progress in implementing meth-
ods for the collection and reporting of reliable data or 
establishing a State medicaid fraud control unit if the 
territory has made a good faith effort to implement 
such methods or establish such a unit, given the cir-
cumstances of the territory.’’. 
(2) CONFORMING AMENDMENT.—Section 1902(j) 
of the Social Security Act (42 U.S.C. 1396a(j)) is 
amended— 
(A) by striking ‘‘or the requirement’’ and 
inserting ‘‘, the requirement’’; and
1401 
(B) by inserting before the period at the end 
the following: ‘‘, or the requirement under sub-
section (qq)(1) (relating to data reporting)’’. 
(3) REEVALUATION OF WAIVERS OF MEDICAID 
FRAUD CONTROL UNIT REQUIREMENT.— 
(A) IN GENERAL.—Not later than the date 
that is 1 year after the date of enactment of this 
Act, the Secretary of Health and Human Serv-
ices shall reevaluate any waiver approved (and 
in effect as of the date of enactment of this Act) 
for Guam, the Northern Mariana Islands, or 
American Samoa under subsection (a)(61) or 
subsection (j) of section 1902 of the Social Secu-
rity Act (42 U.S.C.1396a) with respect to the re-
quirement to establish a State medicaid fraud 
control unit (as described in section 1903(q) of 
such Act (42 U.S.C. 1396b(q))). 
(B) RULE OF CONSTRUCTION.—Nothing in 
this paragraph shall be construed as requiring 
the Secretary of Health and Human Services to 
terminate or refuse to extend a waiver described 
in subparagraph (A). 
(f) ADDITIONAL
PROGRAM
INTEGRITY
REQUIRE-
MENTS.— 
(1) DEFINITIONS.—In this subsection:
1402 
(A) INSPECTOR GENERAL.—The term ‘‘In-
spector General’’ means the Inspector General of 
the Department of Health and Human Services. 
(B) PUERTO RICO’S MEDICAID PROGRAM.— 
The term ‘‘Puerto Rico’s Medicaid program’’ 
means, collectively, Puerto Rico’s State plan 
under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.) and any waiver of such 
plan. 
(2) REPORT ON CONTRACTING OVERSIGHT AND 
APPROVAL.—Not later than 1 year after the date of 
enactment of this Act, the Comptroller General of the 
United States shall issue, and submit to the Chair 
and Ranking Member of the Committee on Energy 
and Commerce of the House of Representatives and 
the Chair and Ranking Member of the Committee on 
Finance of the Senate, a report on contracting over-
sight and approval with respect to Puerto Rico’s 
State plan under title XIX of the Social Security Act 
(42 U.S.C. 1396 et seq.) (or a waiver of such plan). 
Such report shall— 
(A) examine— 
(i) the process used by Puerto Rico to 
evaluate bids and award contracts under 
such plan (or waiver);
1403 
(ii) which contracts are not subject to 
competitive bidding or requests for pro-
posals under such plan (or waiver); and 
(iii) oversight by the Centers for Medi-
care & Medicaid Services of contracts 
awarded under such plan (or waiver); and 
(B) include any recommendations for Con-
gress, the Secretary of Health and Human Serv-
ices, or Puerto Rico relating to changes that the 
Comptroller General determines necessary to im-
prove the program integrity of such plan (or 
waiver). 
(3) AUDITS OF MANAGED CARE PAYMENTS.—Not 
later than the date that is 1 year after the date of en-
actment of this Act, the Inspector General shall de-
velop and submit to Congress— 
(A) a report identifying payments made 
under Puerto Rico’s Medicaid program to man-
aged care organizations that the Inspector Gen-
eral determines to be at high risk for waste, 
fraud, or abuse; and 
(B) a plan for auditing and investigating 
such payments. 
(4) SYSTEM FOR TRACKING FEDERAL FUNDING 
PROVIDED
TO
PUERTO
RICO; MEDICAID
AND
CHIP
1404 
SCORECARD REPORTING.—Section 1902 of the Social 
Security Act (42 U.S.C. 1396a), as amended by sub-
section (e), is further amended by adding at the end 
the following new subsection: 
‘‘(rr) PROGRAM
INTEGRITY
REQUIREMENTS
FOR 
PUERTO RICO.— 
‘‘(1) SYSTEM FOR TRACKING FEDERAL MEDICAID 
FUNDING PROVIDED TO PUERTO RICO.— 
‘‘(A) IN GENERAL.—Puerto Rico shall estab-
lish and maintain a system, which may include 
the use of a quarterly Form CMS–64, for track-
ing any amounts paid by the Federal Govern-
ment to Puerto Rico with respect to the State 
plan of Puerto Rico (or a waiver of such plan). 
Under such system, Puerto Rico shall ensure that 
information is available, with respect to each 
quarter in a fiscal year (beginning with the first 
quarter beginning on or after the date that is 1 
year after the date of the enactment of this sub-
section), on the following: 
‘‘(i) In the case of a quarter other than 
the first quarter of such fiscal year— 
‘‘(I) the total amount expended by 
Puerto Rico during any previous quar-
ter of such fiscal year under the State
1405 
plan of Puerto Rico (or a waiver of 
such plan); and 
‘‘(II) a description of how such 
amount was so expended. 
‘‘(ii) The total amount that Puerto 
Rico expects to expend during the quarter 
under the State plan of Puerto Rico (or a 
waiver of such plan), and a description of 
how Puerto Rico expects to expend such 
amount. 
‘‘(B) REPORT TO CMS.—For each quarter 
with respect to which Puerto Rico is required 
under subparagraph (A) to ensure that informa-
tion described in such subparagraph is available, 
Puerto Rico shall submit to the Administrator of 
the Centers for Medicare & Medicaid Services a 
report on such information for such quarter, 
which may include the submission of a quarterly 
Form CMS–37. 
‘‘(2) SUBMISSION OF DOCUMENTATION ON CON-
TRACTS UPON REQUEST.—Puerto Rico shall, upon re-
quest, submit to the Administrator of the Centers for 
Medicare & Medicaid Services all documentation re-
quested with respect to contracts awarded under the 
State plan of Puerto Rico (or a waiver of such plan).
1406 
‘‘(3) REPORTING ON MEDICAID AND CHIP SCORE-
CARD
MEASURES.—Beginning 12 months after the 
date of enactment of this subsection, Puerto Rico shall 
begin to report to the Administrator of the Centers for 
Medicare & Medicaid Services on selected measures 
included in the Medicaid and CHIP Scorecard devel-
oped by the Centers for Medicare & Medicaid Serv-
ices.’’. 
(5) APPROPRIATION.—Out of any funds in the 
Treasury not otherwise appropriated, there is appro-
priated to the Secretary of Health and Human Serv-
ices $5,000,000 for each of fiscal years 2020 through 
2021 to carry out this subsection. 
SEC. 203. DELAY OF DSH REDUCTIONS. 
Section 1923(f)(7)(A) of the Social Security Act (42 
U.S.C. 1396r–4(f)(7)(A)) is amended by striking ‘‘December 
21, 2019’’ each place it appears and inserting ‘‘May 23, 
2020’’. 
SEC. 204. EXTENSION OF SPOUSAL IMPOVERISHMENT PRO-
TECTIONS. 
(a) IN GENERAL.—Section 2404 of Public Law 111– 
148 (42 U.S.C. 1396r–5 note) is amended by striking ‘‘De-
cember 31, 2019’’ and inserting ‘‘May 22, 2020’’. 
(b) RULE
OF CONSTRUCTION.—Nothing in section 
2404 of Public Law 111–148 (42 U.S.C. 1396r–5 note) or
1407 
section 1902(a)(17) or 1924 of the Social Security Act (42 
U.S.C. 1396a(a)(17), 1396r–5) shall be construed as prohib-
iting a State from— 
(1) applying an income or resource disregard 
under a methodology authorized under section 
1902(r)(2) of such Act (42 U.S.C. 1396a(r)(2))— 
(A) to the income or resources of an indi-
vidual 
described 
in 
section 
1902(a)(10)(A)(ii)(VI) of such Act (42 U.S.C. 
1396a(a)(10)(A)(ii)(VI)) (including a disregard 
of the income or resources of such individual’s 
spouse); or 
(B) on the basis of an individual’s need for 
home and community-based services authorized 
under subsection (c), (d), (i), or (k) of section 
1915 of such Act (42 U.S.C. 1396n) or under sec-
tion 1115 of such Act (42 U.S.C. 1315); or 
(2) disregarding an individual’s spousal income 
and assets under a plan amendment to provide med-
ical assistance for home and community-based serv-
ices for individuals by reason of being determined eli-
gible under section 1902(a)(10)(C) of such Act (42 
U.S.C. 1396a(a)(10)(C)) or by reason of section 
1902(f) of such Act (42 U.S.C. 1396a(f)) or otherwise 
on the basis of a reduction of income based on costs
1408 
incurred for medical or other remedial care under 
which the State disregarded the income and assets of 
the individual’s spouse in determining the initial and 
ongoing financial eligibility of an individual for such 
services in place of the spousal impoverishment provi-
sions applied under section 1924 of such Act (42 
U.S.C. 1396r–5). 
SEC. 205. EXTENSION OF THE MONEY FOLLOWS THE PER-
SON REBALANCING DEMONSTRATION PRO-
GRAM. 
Section 6071(h) of the Deficit Reduction Act of 2005 
(42 U.S.C. 1396a note) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (E), by striking ‘‘and’’ 
after the semicolon; 
(B) in subparagraph (F), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(G) subject to paragraph (3), $176,000,000 
for the period beginning on January 1, 2020, 
and ending on May 22, 2020.’’; and 
(2) in paragraph (3)— 
(A) in the paragraph header, by striking 
‘‘FOR FY 2019’’; and
1409 
(B) by striking ‘‘paragraph (1)(F)’’ and in-
serting ‘‘subparagraphs (F) and (G) of para-
graph (1)’’. 
Subtitle C—Human Services and 
Other Health Programs 
SEC. 301. EXTENSION OF DEMONSTRATION PROJECTS TO 
ADDRESS 
HEALTH 
PROFESSIONS 
WORK-
FORCE NEEDS. 
Activities authorized by section 2008 of the Social Se-
curity Act shall continue through May 22, 2020, in the 
manner authorized for fiscal year 2019, and out of any 
money in the Treasury of the United States not otherwise 
appropriated, there are hereby appropriated such sums as 
may be necessary for such purpose. Grants and payments 
may be made pursuant to this authority through the date 
so specified at the pro rata portion of the total amount au-
thorized for such activities in fiscal year 2019. 
SEC. 302. EXTENSION OF THE TEMPORARY ASSISTANCE 
FOR NEEDY FAMILIES PROGRAM AND RE-
LATED PROGRAMS. 
Activities authorized by part A of title IV and section 
1108(b) of the Social Security Act shall continue through 
May 22, 2020, in the manner authorized for fiscal year 
2019, and out of any money in the Treasury of the United
1410 
States not otherwise appropriated, there are hereby appro-
priated such sums as may be necessary for such purpose. 
SEC. 303. EXTENSION OF SEXUAL RISK AVOIDANCE EDU-
CATION PROGRAM. 
Section 510 of the Social Security Act (42 U.S.C. 710) 
is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘December 
20, 2019’’ and inserting ‘‘May 22, 2020’’; 
(B) in paragraph (2)(A), by striking ‘‘De-
cember 20, 2019’’ and inserting ‘‘May 22, 2020’’; 
and 
(2) in subsection (f)(1), by striking ‘‘$16,643,836 
for the period beginning October 1, 2019, and ending 
December 20, 2019’’ and inserting ‘‘$48,287,671 for 
the period beginning October 1, 2019, and ending 
May 22, 2020’’. 
SEC. 304. EXTENSION OF PERSONAL RESPONSIBILITY EDU-
CATION PROGRAM. 
Section 513 of the Social Security Act (42 U.S.C. 713) 
is amended— 
(1) in subsection (a)(1)—
1411 
(A) in subparagraph (A), in the matter pre-
ceding clause (i), by striking ‘‘December 20, 
2019’’ and inserting ‘‘May 22, 2020’’; 
(B) in subparagraph (B)(i), by striking by 
striking ‘‘December 20, 2019’’ and inserting 
‘‘May 22, 2020’’; and 
(2) in subsection (f), by striking ‘‘$16,643,836 
for the period beginning October 1, 2019, and ending 
December 20, 2019’’ and inserting ‘‘$48,287,671 for 
the period beginning October 1, 2019, and ending 
May 22, 2020’’. 
Subtitle D—Public Health 
Provisions 
SEC. 401. EXTENSION FOR COMMUNITY HEALTH CENTERS, 
THE NATIONAL HEALTH SERVICE CORPS, AND 
TEACHING HEALTH CENTERS THAT OPERATE 
GME PROGRAMS. 
(a) 
COMMUNITY
HEALTH
CENTERS.—Section 
10503(b)(1)(F) of the Patient Protection and Affordable 
Care Act (42 U.S.C. 254b–2(b)(1)(F)) is amended by— 
(1) 
striking 
‘‘$887,671,223’’ 
and 
inserting 
‘‘$2,575,342,466’’; and 
(2) striking ‘‘December 20, 2019’’ and inserting 
‘‘May 22, 2020’’.
1412 
(b) NATIONAL HEALTH SERVICE CORPS.—Section 
10503(b)(2)(G) of the Patient Protection and Affordable 
Care Act (42 U.S.C. 254b–2(b)(2)(G)) is amended— 
(1) by striking ‘‘$68,794,521’’ and inserting 
‘‘$199,589,041’’; and 
(2) by striking ‘‘December 20, 2019’’ and insert-
ing ‘‘May 22, 2020’’. 
(c) TEACHING HEALTH CENTERS THAT OPERATE 
GRADUATE
MEDICAL
EDUCATION
PROGRAMS.—Section 
340H(g)(1) of the Public Health Service Act (42 U.S.C. 
256h(g)(1)) is amended— 
(1) by striking ‘‘$28,072,603’’ and inserting 
‘‘$81,445,205’’; and 
(2) by striking ‘‘December 20, 2019’’ and insert-
ing ‘‘May 22, 2020’’. 
(d) APPLICATION OF PROVISIONS.—Amounts appro-
priated pursuant to the amendments made by this section 
for the period beginning on October 1, 2019, and ending 
on May 22, 2020, shall be subject to the requirements con-
tained in Public Law 115–245 for funds for programs au-
thorized under sections 330 through 340 of the Public 
Health Service Act (42 U.S.C. 254 through 256). 
(e) CONFORMING AMENDMENT.—Paragraph (4) of sec-
tion 3014(h) of title 18, United States Code, as amended 
by section 1101(e) of division B of Public Law 116–69, is
1413 
amended by striking ‘‘section 1101(d) of division B of the 
Continuing Appropriations Act, 2020, and Health Extend-
ers Act of 2019, and section 1101(d) of the Further Con-
tinuing Appropriations Act, 2020, and Further Health Ex-
tenders Act of 2019’’ and inserting ‘‘, and section 401(d) 
of division N of the Further Consolidated Appropriations 
Act, 2020’’. 
SEC. 402. DIABETES PROGRAMS. 
(a) TYPE I.—Section 330B(b)(2)(D) of the Public 
Health Service Act (42 U.S.C. 254c–2(b)(2)(D)) is amend-
ed— 
(1) by striking ‘‘$33,287,671’’ and inserting 
‘‘$96,575,342’’; and 
(2) by striking ‘‘December 20, 2019’’ and insert-
ing ‘‘May 22, 2020’’. 
(b) INDIANS.—Section 330C(c)(2)(D) of the Public 
Health Service Act (42 U.S.C. 254c–3(c)(2)(D)) is amend-
ed— 
(1) by striking ‘‘$33,287,671’’ and inserting 
‘‘$96,575,342’’; and 
(2) by striking ‘‘December 20, 2019’’ and insert-
ing ‘‘May 22, 2020’’.
1414 
SEC. 403. POISON CENTER NETWORK ENHANCEMENT. 
(a) NATIONAL TOLL-FREE NUMBER.—Section 1271 of 
the Public Health Service Act (42 U.S.C. 300d–71) is 
amended— 
(1) in the section heading, by inserting before the 
period the following: ‘‘AND OTHER COMMUNICA-
TION CAPABILITIES’’; and 
(2) by striking subsection (a) and inserting the 
following: 
‘‘(a) IN GENERAL.—The Secretary— 
‘‘(1) shall provide coordination and assistance to 
poison control centers for the establishment and main-
tenance of a nationwide toll-free phone number, to be 
used to access such centers; and 
‘‘(2) may provide coordination and assistance to 
poison control centers and consult with professional 
organizations for the establishment, implementation, 
and maintenance of other communication technologies 
to be used to access such centers.’’; 
(3) by redesignating subsection (b) as subsection 
(c); 
(4) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) ROUTING CONTACTS WITH POISON CONTROL 
CENTERS.—Not later than 18 months after the date of en-
actment of this subsection, the Secretary shall coordinate
1415 
with the Chairman of the Federal Communications Com-
mission, to the extent technically and economically feasible, 
to ensure that communications with the national toll-free 
number are routed to the appropriate poison control center 
based on the physical location of the contact rather than 
the area code of the contact device.’’; and 
(5) in subsection (c), as so redesignated— 
(A) by striking ‘‘2015 through 2019’’ and 
inserting ‘‘2020 through 2024’’; and 
(B) by striking ‘‘maintenance of the nation-
wide toll free phone number under subsection 
(a)’’ and inserting ‘‘establishment, implementa-
tion, and maintenance activities carried out 
under subsections (a) and (b)’’. 
(b) NATIONWIDE MEDIA CAMPAIGN.—Section 1272 of 
the Public Health Service Act (42 U.S.C. 300d–72) is 
amended— 
(1) in the section heading, by striking ‘‘NA-
TIONWIDE MEDIA CAMPAIGN TO PROMOTE’’ and 
inserting ‘‘PROMOTING’’; 
(2) in subsection (a)— 
(A) by inserting ‘‘and support outreach to’’ 
after ‘‘educate’’;
1416 
(B) by striking ‘‘poison prevention’’ and in-
serting ‘‘poisoning and toxic exposure preven-
tion’’; and 
(C) by striking ‘‘established under’’ and in-
serting ‘‘and other available communication 
technologies established, implemented, or main-
tained under’’; 
(3) in subsection (b)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘nationwide poison prevention’’ and 
inserting ‘‘nationwide poisoning and toxic expo-
sure prevention’’; and 
(B) in paragraph (1), by striking ‘‘poison 
prevention and poison control center’’ and in-
serting ‘‘poisoning and toxic exposure prevention 
awareness materials, applicable public health 
emergency preparedness and response informa-
tion, and poison control center’’ after ‘‘distribu-
tion of’’; and 
(4) by striking subsection (c); 
(5) by redesignating subsection (d) as subsection 
(c); and 
(6) in subsection (c) (as so redesignated), by 
striking ‘‘2015 through 2019’’ and inserting ‘‘2020 
through 2024’’.
1417 
(c) MAINTENANCE OF PROGRAM.—Section 1273 of the 
Public Health Service Act (42 U.S.C. 300d–73) is amend-
ed— 
(1) in subsection (a), by inserting ‘‘and toxic ex-
posures’’ after ‘‘poisonings’’; and 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘for poison’’ and insert-
ing ‘‘for poisoning and toxic exposure’’; and 
(ii) by striking ‘‘and preparedness’’ 
and inserting ‘‘preparedness and response’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘United States and’’ 
and inserting ‘‘United States,’’; and 
(ii) by inserting before the semicolon 
the following: ‘‘, and other government 
agencies as determined to be appropriate 
and nonduplicative by the Secretary’’; and 
(C) in paragraph (8), by striking ‘‘calls’’ 
and inserting ‘‘contacts’’; 
(3) in subsection (d) , by striking paragraph (3) 
and inserting the following: 
‘‘(3) LIMITATION.— 
‘‘(A) IN GENERAL.—The sum of the number 
of years for a waiver under paragraph (1) and
1418 
a renewal under paragraph (2) may not exceed 
5 years. 
‘‘(B) PUBLIC
HEALTH
EMERGENCY.—Not-
withstanding any previous waivers, in the case 
of a poison control center whose accreditation is 
affected by a public health emergency declared 
pursuant to section 319, the Secretary may, as 
the circumstances of the emergency reasonably 
require, provide a waiver under paragraph (1) 
or a renewal under paragraph (2), not to exceed 
2 years. The Secretary may require quarterly re-
ports and other information related to such a 
waiver or renewal under this paragraph.’’; 
(4) by striking subsection (f) and inserting the 
following: 
‘‘(f) MAINTENANCE OF EFFORT.—With respect to ac-
tivities for which a grant is awarded under this section, 
the Secretary may require that poison control centers agree 
to maintain the expenditures of the center for such activities 
at a level that is not less than the level of expenditures 
maintained by the center for the fiscal year preceding the 
fiscal year for which the grant is received.’’; 
(5) In subsection (g), by striking ‘‘2015 through 
2019’’ and inserting ‘‘2020 through 2024’’; and 
(6) by adding at the end the following:
1419 
‘‘(h) BIENNIAL REPORT
TO CONGRESS.—Not later 
than 2 years after the date of enactment of this subsection, 
and every 2 years thereafter, the Secretary shall submit to 
the Committee on Health, Education, Labor, and Pensions 
of the Senate and Committee on Energy and Commerce of 
the House of Representatives a report concerning the oper-
ations of, and trends identified by, the Poison Control Net-
work. Such report shall include— 
‘‘(1) descriptions of the activities carried out 
pursuant to sections 1271, 1272, and 1273, and the 
alignment of such activities with the purposes pro-
vided under subsection (a); 
‘‘(2) a description of trends in volume of contacts 
to poison control centers; 
‘‘(3) a description of trends in poisonings and 
toxic exposures reported to poison control centers, as 
applicable and appropriate; 
‘‘(4) an assessment of the impact of the public 
awareness campaign, including any geographic vari-
ations; 
‘‘(5) a description of barriers, if any, preventing 
poison control centers from achieving the purposes 
and programs under this section and sections 1271 
and 1272;
1420 
‘‘(6) a description of the standards for accredita-
tion described in subsection (c), including any vari-
ations in those standards, and any efforts to create 
and maintain consistent standards across organiza-
tions that accredit poison control centers; and 
‘‘(7) the number of and reason for any waivers 
provided under subsection (d).’’. 
SEC. 404. KAY HAGAN TICK ACT. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Kay Hagan Tick Act’’. 
(b) COMBATING VECTOR-BORNE DISEASES.—Title III 
of the Public Health Service Act is amended by inserting 
after section 317T (42 U.S.C. 247b–22) the following: 
‘‘SEC. 317U. NATIONAL STRATEGY AND REGIONAL CENTERS 
OF 
EXCELLENCE 
IN 
VECTOR-BORNE 
DIS-
EASES. 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1)(A) ensure the development and implementa-
tion of a national strategy to address vector-borne 
diseases, including tick-borne diseases, that— 
‘‘(i) identifies and assesses gaps and any 
unnecessary duplication in federally-funded pro-
grams; and 
‘‘(ii) identifies strategic goals to address 
such diseases and appropriate benchmarks to
1421 
measure progress toward achieving such goals; 
and 
‘‘(B) update such strategy, as appropriate; and 
‘‘(2) coordinate programs and activities, includ-
ing related to data collection, research, and the devel-
opment of diagnostics, treatments, vaccines, and other 
related activities, to address vector-borne diseases, in-
cluding tick-borne diseases, across the Department of 
Health and Human Services and with other Federal 
agencies or departments, as appropriate. 
‘‘(b) CONSULTATION.—In carrying out subsection 
(a)(1), the Secretary shall consult with the Tick-Borne Dis-
ease Working Group established under section 2062 of the 
21st Century Cures Act (42 U.S.C. 284s) and other individ-
uals, as appropriate, such as— 
‘‘(1) epidemiologists with experience in vector- 
borne diseases; 
‘‘(2) representatives of patient advocacy and re-
search organizations that focus on vector-borne dis-
eases, including such organizations that have dem-
onstrated experience in related research, public health, 
data collection, or patient access to care; 
‘‘(3) health information technology experts or 
other information management specialists;
1422 
‘‘(4) clinicians, entomologists, vector manage-
ment professionals, public health professionals, and 
others with expertise in vector-borne diseases; and 
‘‘(5) researchers, including researchers with expe-
rience conducting translational research. 
‘‘(c) CENTERS OF EXCELLENCE.—The Secretary, in 
coordination with the Director of the Centers for Disease 
Control and Prevention, shall award grants, contracts, or 
cooperative agreements to institutions of higher education 
for the establishment or continued support of regional cen-
ters of excellence in vector-borne diseases to address vector- 
borne diseases, including tick-borne diseases, by— 
‘‘(1) facilitating collaboration between academia 
and public health organizations for public health sur-
veillance, prevention, and response activities related 
to vector-borne diseases, including tick-borne diseases; 
‘‘(2) providing training for public health ento-
mologists and other health care professionals, as ap-
propriate, to address vector-borne diseases, including 
tick-borne diseases; 
‘‘(3) conducting research to develop and validate 
prevention and control tools and methods, including 
evidence-based and innovative, evidence-informed 
tools and methods to anticipate and respond to dis-
ease outbreaks; or
1423 
‘‘(4) preparing for and responding to outbreaks 
of vector-borne diseases, including tick-borne diseases. 
‘‘(d) ELIGIBILITY.—To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (c), an 
entity shall submit to the Secretary an application at such 
time, in such manner, and containing such information as 
the Secretary may require, including a description of how 
the entity will conduct the activities described in such sub-
section. 
‘‘(e) REPORTS.— 
‘‘(1) PROGRAM SUMMARY.—An entity receiving 
an award under subsection (c) shall, not later than 
one year after receiving such award, and annually 
thereafter, submit to the Secretary a summary of pro-
grams and activities funded under the award. 
‘‘(2) PROGRESS REPORT.—Not later than 4 years 
after the date of enactment of this section, the Sec-
retary shall submit to the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and the 
Committee on Energy and Commerce of the House of 
Representatives, a report on the progress made in ad-
dressing vector-borne diseases, including tick-borne 
diseases, through activities carried out under this sec-
tion.
1424 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of carrying out this section, there are authorized 
to be appropriated $10,000,000 for each of fiscal years 2021 
through 2025.’’. 
(c) ENHANCING CAPACITY
TO ADDRESS VECTOR- 
BORNE DISEASES.—Subtitle C of title XXVIII of the Public 
Health Service Act (42 U.S.C. 300hh-31 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 2822. ENHANCED SUPPORT TO ASSIST HEALTH DE-
PARTMENTS IN ADDRESSING VECTOR-BORNE 
DISEASES. 
‘‘(a) IN GENERAL.—The Secretary, acting through the 
Director of the Centers for Disease Control and Prevention, 
may enter into cooperative agreements with health depart-
ments of States, political subdivisions of States, and Indian 
Tribes and Tribal organizations in areas at high risk of 
vector-borne diseases in order to increase capacity to iden-
tify, report, prevent, and respond to such diseases and re-
lated outbreaks. 
‘‘(b) ELIGIBILITY.—To be eligible to enter into a coop-
erative agreement under this section, an entity described in 
subsection (a) shall prepare and submit to the Secretary 
an application at such time, in such manner, and con-
taining such information as the Secretary may require, in-
cluding a plan that describes—
1425 
‘‘(1) how the applicant proposes to develop or ex-
pand programs to address vector-borne disease risks, 
including through— 
‘‘(A) related training and workforce devel-
opment; 
‘‘(B) programmatic efforts to improve ca-
pacity to identify, report, prevent, and respond 
to such disease and related outbreaks; and 
‘‘(C) other relevant activities identified by 
the Director of the Centers for Disease Control 
and Prevention, as appropriate; 
‘‘(2) the manner in which the applicant will co-
ordinate with other Federal, Tribal, and State agen-
cies and programs, as applicable, related to vector- 
borne diseases, as well as other relevant public and 
private organizations or agencies; and 
‘‘(3) the manner in which the applicant will 
evaluate the effectiveness of any program carried out 
under the cooperative agreement. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of carrying out this section, there are authorized 
to be appropriated $20,000,000 for each of fiscal years 2021 
through 2025.’’.
1426 
Subtitle E—Revenue Provisions 
SEC. 501. REPEAL OF MEDICAL DEVICE EXCISE TAX. 
(a) IN GENERAL.—Chapter 32 of the Internal Revenue 
Code of 1986 is amended by striking subchapter E. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 4221 of the Internal 
Revenue Code of 1986 is amended by striking the last 
sentence. 
(2) Paragraph (2) of section 6416(b) of such 
Code is amended by striking the last sentence. 
(c) CLERICAL AMENDMENT.—The table of subchapters 
for chapter 32 of the Internal Revenue Code of 1986 is 
amended by striking the item relating to subchapter E. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to sales after December 31, 2019. 
SEC. 502. REPEAL OF ANNUAL FEE ON HEALTH INSURANCE 
PROVIDERS. 
(a) IN GENERAL.—Subtitle A of title IX of the Patient 
Protection and Affordable Care Act is amended by striking 
section 9010. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to calendar years beginning after De-
cember 31, 2020.
1427 
SEC. 503. REPEAL OF EXCISE TAX ON HIGH COST EM-
PLOYER-SPONSORED HEALTH COVERAGE. 
(a) IN GENERAL.—Chapter 43 of the Internal Revenue 
Code of 1986 is amended by striking section 4980I. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6051 of such Code is amended— 
(A) by striking ‘‘section 4980I(d)(1)’’ in 
subsection (a)(14) and inserting ‘‘subsection (g)’’, 
and 
(B) by adding at the end the following new 
subsection: 
‘‘(g) 
APPLICABLE
EMPLOYER-SPONSORED
COV-
ERAGE.—For purposes of subsection (a)(14)— 
‘‘(1) IN
GENERAL.—The term ‘applicable em-
ployer-sponsored coverage’ means, with respect to any 
employee, coverage under any group health plan made 
available to the employee by an employer which is ex-
cludable from the employee’s gross income under sec-
tion 106, or would be so excludable if it were em-
ployer-provided coverage (within the meaning of such 
section 106). 
‘‘(2) EXCEPTIONS.—The term ‘applicable em-
ployer-sponsored coverage’ shall not include— 
‘‘(A) any coverage (whether through insur-
ance or otherwise) described in section 9832(c)(1)
1428 
(other than subparagraph (G) thereof) or for 
long-term care, 
‘‘(B) any coverage under a separate policy, 
certificate, or contract of insurance which pro-
vides benefits substantially all of which are for 
treatment of the mouth (including any organ or 
structure within the mouth) or for treatment of 
the eye, or 
‘‘(C) any coverage described in section 
9832(c)(3) the payment for which is not exclud-
able from gross income and for which a deduc-
tion under section 162(l) is not allowable. 
‘‘(3) COVERAGE INCLUDES EMPLOYEE PAID POR-
TION.—Coverage shall be treated as applicable em-
ployer-sponsored coverage without regard to whether 
the employer or employee pays for the coverage. 
‘‘(4) GOVERNMENTAL PLANS INCLUDED.—Appli-
cable employer-sponsored coverage shall include cov-
erage under any group health plan established and 
maintained primarily for its civilian employees by 
the Government of the United States, by the govern-
ment of any State or political subdivision thereof, or 
by any agency or instrumentality of any such govern-
ment.’’.
1429 
(2) Section 9831(d)(1) of such Code is amended 
by 
striking 
‘‘except 
as 
provided 
in 
section 
4980I(f)(4)’’. 
(3) The table of sections for chapter 43 of such 
Code is amended by striking the item relating to sec-
tion 4980I. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
Subtitle F—Miscellaneous 
Provisions 
SEC. 601. ALASKA NATIVE REGIONAL HEALTH ENTITIES. 
Section 424(a) of the Consolidated Appropriations Act, 
2014 (Public Law 113–76), as amended by section 428 of 
the Consolidated Appropriations Act, 2018 (Public Law 
115–141), shall be applied by substituting ‘‘May 22, 2020’’ 
for ‘‘October 1, 2019’’. 
SEC. 602. ADDRESSING EXPIRATION OF CHILD WELFARE 
DEMONSTRATION 
PROJECTS 
AND 
SUP-
PORTING FAMILY FIRST IMPLEMENTATION. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Family First Transition Act’’. 
(b) EVIDENCE STANDARD TRANSITION.— 
(1) TEMPORARY SUSPENSION OF REQUIREMENT 
THAT AT LEAST 50 PERCENT OF A STATE’S REIM-
1430 
BURSEMENT FOR PREVENTION AND FAMILY SERVICES 
AND PROGRAMS BE FOR PROGRAMS AND SERVICES 
THAT
MEET
THE
WELL-SUPPORTED
PRACTICE
RE-
QUIREMENT.—With respect to quarters in fiscal years 
2020 and 2021, section 474(a)(6)(A) of the Social Se-
curity Act (42 U.S.C. 674(a)(6)(A)) shall be applied 
without regard to clause (ii) of such section. 
(2) 
SUPPORTED
PRACTICES
TEMPORARILY 
TREATED AS WELL-SUPPORTED PRACTICES.—With re-
spect to quarters in fiscal years 2022 and 2023, prac-
tices that meet the criteria specified for supported 
practices in section 471(e)(4)(C) of the Social Secu-
rity Act (42 U.S.C. 671(e)(4)(C)) shall be considered 
well-supported practices for purposes of section 
474(a)(6)(A)(ii) 
of 
such 
Act 
(42 
U.S.C. 
674(a)(6)(A)(ii)). 
(c) ENHANCED FUNDING
FOR TRANSITION ACTIVI-
TIES.— 
(1) TRANSITION FUNDING.— 
(A) APPROPRIATION.—Out of any money in 
the Treasury of the United States not otherwise 
appropriated, there are appropriated to the Sec-
retary of Health and Human Services (in this 
section referred to as the ‘‘Secretary’’) to carry 
out this subsection $500,000,000 for fiscal year
1431 
2020, which shall remain available through fiscal 
year 2021. 
(B) DISTRIBUTION OF FUNDS.— 
(i) IN GENERAL.—The Secretary shall 
allot the amount appropriated by subpara-
graph (A) of this paragraph in accordance 
with section 423 of the Social Security Act 
(42 U.S.C. 623), and shall pay each State 
to which an allotment is so made, the total 
amount so allotted, subject to clause (ii) of 
this subparagraph. 
(ii) RESERVATION OF FUNDS FOR IN-
DIAN
TRIBES
AND
TRIBAL
ORGANIZA-
TIONS.—Before applying clause (i) of this 
subparagraph, the Secretary shall reserve 3 
percent of the amount appropriated by sub-
paragraph (A) of this paragraph for allot-
ment to the Indian tribes and tribal organi-
zations with a plan approved under subpart 
1 of part B of title IV of the Social Security 
Act, based on each tribe or tribal organiza-
tion’s share of the total tribal child popu-
lation among all such tribes and tribal or-
ganizations.
1432 
(2) FUNDING CERTAINTY FOR STATES WITH EX-
PIRING DEMONSTRATION PROJECTS.— 
(A) IN GENERAL.—Out of any money in the 
Treasury of the United States not otherwise ap-
propriated, there are appropriated to the Sec-
retary, for payment to each State that was oper-
ating a demonstration project approved under 
section 1130 of the Social Security Act on Sep-
tember 30, 2019, for each fiscal year specified in 
subparagraph (B) of this paragraph, an amount 
equal to the amount (if any) by which— 
(i)(I) the applicable percentage for the 
fiscal year so specified of the maximum 
capped allocation due to the State or sub- 
State jurisdiction for fiscal year 2019 for 
foster care maintenance, administration, or 
training costs, under the demonstration 
project, as specified in section 4.3 of the 
State waiver terms and conditions docu-
ment capped allocation payment table in ef-
fect on August 31, 2019; or 
(II) if the terms and conditions do not 
specify a maximum amount payable for fis-
cal year 2019 for the State or sub-State ju-
risdiction (due to the use of a comparison
1434 
(ii) 75 percent, in the case of fiscal 
year 2021. 
(C) SPECIAL RULE.—The calculation under 
subparagraph (A) with respect to a State shall 
be made without regard to— 
(i) any change approved after August 
31, 2019, in the capped allocation or the 
terms and conditions referred to in clause 
(i) of subparagraph (A) with respect to the 
State; or 
(ii) any change made after such date 
to the financial form submitted by the State 
that is used in determining the capped allo-
cation. 
(D) DISTRIBUTION OF FUNDS.—Each State 
that receives funds under this paragraph shall 
distribute the funds to jurisdictions in the State 
that were operating demonstration projects under 
section 1130 of the Social Security Act in a 
manner consistent with each sub-State jurisdic-
tion’s proportionate loss as compared with fiscal 
year 2019. 
(E) 
RECONCILIATION
PROCESS.—Each 
State seeking a payment under this paragraph 
shall report expenditures pursuant to part E of
1435 
title IV of the Social Security Act (42 U.S.C. 
670 et seq.) in a manner determined by the Sec-
retary and the Secretary shall account for any 
revisions to spending for fiscal years 2020 and 
2021 after the end of the respective fiscal year 
that are reported by the State agency admin-
istering the State plan approved under such 
part, and received by the Department of Health 
and Human Services, within 2 years after the 
last day of the fiscal quarter in which the ex-
penditure was made. 
(F) AVAILABILITY OF FUNDS.—The amounts 
made available for payments to States under this 
paragraph for a fiscal year shall remain avail-
able through the end of the third succeeding fiscal 
year. 
(3) USE OF FUNDS.— 
(A) IN GENERAL.—In addition to the pur-
poses specified in part B of title IV of the Social 
Security Act (42 U.S.C. 671 et seq.), a State 
may use funds provided under this subsection for 
activities previously funded under a demonstra-
tion project under section 1130 of such Act (42 
U.S.C. 1320a–9) to reduce any adverse fiscal im-
pacts as jurisdictions transition funding sources
1436 
for the projects, and for activities directly associ-
ated with the implementation of title VII of divi-
sion E of Public Law 115–123 (also known as 
the Family First Prevention Services Act). 
(B) LIMITATION.—None of the funds pro-
vided under this subsection may be used to 
match Federal funds under any program. 
(d) REPORTING ON ENHANCED FUNDING FOR TRANSI-
TION ACTIVITIES.— 
(1) IN GENERAL.—Each State to which funds 
are paid under subsection (c) of this section shall sub-
mit to the Secretary, in a manner specified by the 
Secretary, a written report on— 
(A) how the grant is used to implement 
each part of title VII of division E of Public 
Law 115–123 (also known as the Family First 
Prevention Services Act), with a separate state-
ment with respect to each such part; 
(B) all programs, services, and operational 
costs to which the grant is put; 
(C) the characteristics of the families and 
children served by use of the grant; and 
(D)(i) the use by the State of amounts pro-
vided for each fiscal year to continue activities 
previously funded under a waiver provided
1437 
under section 1130 of the Social Security Act (42 
U.S.C. 1320a–9); and 
(ii)(I) the plan of the State to transition the 
activities so that needed activities can be pro-
vided under the State plan approved under part 
E of title IV of the Social Security Act (42 
U.S.C. 670 et seq.); or 
(II) if expenditures for the activities would 
not be eligible for payment under the State plan 
approved under such part E— 
(aa) the reason therefor; and 
(bb) the funding sources the State 
plans to use to cover the costs of needed ac-
tivities. 
(2) APPLICABILITY OF OTHER LAWS.—For pur-
poses of subpart 2 of part B of title IV of the Social 
Security Act (42 U.S.C. 629 et seq.), each report re-
quired by paragraph (1) of this subsection shall be 
considered to be required by section 432(a)(8) of such 
Act (42 U.S.C. 629b(a)(8)), and shall contain such 
additional information as the Secretary may require. 
(e) DEFINITION OF STATE.—In this section, the term 
‘‘State’’ has the meaning given the term in section 431(a)(4) 
of the Social Security Act (42 U.S.C. 629a(a)(4)).
1438 
(f) RENAMING OF TITLE IV–B–2 OF THE SOCIAL SE-
CURITY ACT.—The subpart heading for subpart 2 of part 
B of title IV of the Social Security Act is amended by strik-
ing ‘‘Promoting Safe and Stable Families’’ and 
inserting ‘‘MaryLee Allen Promoting Safe and 
Stable Families Program’’. 
(g) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect as if included 
in the Bipartisan Budget Act of 2018 on the date of the 
enactment of such Act. 
(h) TECHNICAL CORRECTION.—Section 50701 of the 
Bipartisan Budget Act of 2018 (42 U.S.C. 1305 note; Public 
Law 115–123) is amended by striking ‘‘Bipartisan Budget 
Act of 2018’’ and inserting ‘‘Family First Prevention Serv-
ices Act’’. 
SEC. 603. MINIMUM AGE OF SALE OF TOBACCO PRODUCTS. 
(a) IN GENERAL.—Section 906(d) of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 387f(d)) is amended— 
(1) in paragraph (3)(A)(ii), by striking ‘‘18 
years’’ and inserting ‘‘21 years’’; and 
(2) by adding at the end the following: 
‘‘(5) MINIMUM AGE OF SALE.—It shall be unlaw-
ful for any retailer to sell a tobacco product to any 
person younger than 21 years of age.’’. 
(b) REGULATIONS.—
1439 
(1) IN GENERAL.—Not later than 180 days after 
the date of enactment of this Act, the Secretary of 
Health and Human Services (referred to in this sec-
tion as the ‘‘Secretary’’) shall publish in the Federal 
Register a final rule to update the regulations issued 
under chapter IX of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 387 et seq.) as appropriate, only 
to carry out the amendments made by subsection (a), 
including to update all references to persons younger 
than 18 years of age in subpart B of part 1140 of 
title 21, Code of Federal Regulations, and to update 
the relevant age verification requirements under such 
part 1140 to require age verification for individuals 
under the age of 30. Such final rule shall— 
(A) take full effect not later than 90 days 
after the date on which such final rule is pub-
lished; and 
(B) be deemed to be in compliance with all 
applicable provisions of chapter 5 of title 5, 
United States Code and all other provisions of 
law relating to rulemaking procedures. 
(2) OTHER
REGULATIONS.—Prior to making 
amendments to part 1140 of title 21, Code of Federal 
Regulations other than the amendments described in 
paragraph (1), the Secretary shall promulgate a pro-
1440 
posed rule in accordance with chapter 5 of title 5, 
United States Code. 
(c) NOTIFICATION.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall provide 
written notification to the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and the Com-
mittee on Energy and Commerce of the House of Represent-
atives regarding the progress of the Department of Health 
and Human Services towards promulgating the final rule 
under subsection (b). If, 180 days after the date of enact-
ment of this Act, such rule has not been promulgated in 
accordance with subsection (b), the Secretary shall provide 
a written notification and a justification for the delay in 
rulemaking to such committees. 
(d) PENALTIES FOR VIOLATIONS.— 
(1) IN GENERAL.—Section 103(q)(2) of the Fam-
ily Smoking Prevention and Tobacco Control Act 
(Public Law 111–31) is amended— 
(A) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘section 906(d)(5) 
or of’’ after ‘‘violations of’’; and 
(B) in subparagraph (C), by inserting ‘‘sec-
tion 906(d)(5) or of’’ after ‘‘a retailer of’’. 
(2) REPEATED
VIOLATIONS.—Section 303(f)(8) 
of the Federal Food, Drug, and Cosmetic Act (21
1441 
U.S.C. 333(f)(8)) is amended by inserting ‘‘section 
906(d)(5) or of’’ after ‘‘repeated violations of’’. 
(3) 
MISBRANDED
PRODUCTS.—Section 
903(a)(7)(B) of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 387c) is amended by inserting ‘‘sec-
tion 906(d)(5) or of’’ after ‘‘violation of’’. 
SEC. 604. SALE OF TOBACCO PRODUCTS TO INDIVIDUALS 
UNDER THE AGE OF 21. 
(a) IN GENERAL.—Section 1926 of the Public Health 
Service Act (42 U.S.C. 300x–26) is amended— 
(1) in the heading— 
(A) by striking ‘‘STATE
LAW
REGARD-
ING’’; and 
(B) by striking ‘‘18’’ and inserting ‘‘21’’; 
(2) by striking subsections (a) and (d); 
(3) by redesignating subsections (b) and (c) as 
subsections (a) and (b), respectively; 
(4) by amending subsection (a), as so redesig-
nated, to read as follows: 
‘‘(a) IN GENERAL.—A funding agreement for a grant 
under section 1921 is that the State involved will— 
‘‘(1) annually conduct random, unannounced in-
spections to ensure that retailers do not sell tobacco 
products to individuals under the age of 21; and
1442 
‘‘(2) annually submit to the Secretary a report 
describing— 
‘‘(A) the activities carried out by the State 
to ensure that retailers do not sell tobacco prod-
ucts to individuals under the age of 21; 
‘‘(B) the extent of success the State has 
achieved in ensuring that retailers do not sell to-
bacco products to individuals under the age of 
21; and 
‘‘(C) the strategies to be utilized by the 
State to ensure that retailers do not sell tobacco 
products to individuals under the age of 21 dur-
ing the fiscal year for which the grant is 
sought.’’; 
(5) in subsection (b), as so redesignated— 
(A) by striking paragraphs (1), (2), (3), 
and (4); 
(B) by striking ‘‘Before making’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—Before making’’; 
(C) by striking ‘‘for the first applicable fis-
cal year or any subsequent fiscal year’’; 
(D) by striking ‘‘subsections (a) and (b)’’ 
and inserting ‘‘subsection (a)’’;
1443 
(E) by striking ‘‘equal to—’’ and inserting 
‘‘up to 10 percent of the amount determined 
under section 1933 for the State for the applica-
ble fiscal year.’’; and 
(F) by adding at the end the following: 
‘‘(2) LIMITATION.— 
‘‘(A) IN GENERAL.—A State shall not have 
funds withheld pursuant to paragraph (1) if 
such State for which the Secretary has made a 
determination of noncompliance under such 
paragraph— 
‘‘(i) certifies to the Secretary by May 
1 of the fiscal year for which the funds are 
appropriated, consistent with subparagraph 
(B), that the State will commit additional 
State funds, in accordance with paragraph 
(1), to ensure that retailers do not sell to-
bacco products to individuals under 21 
years of age; 
‘‘(ii) agrees to comply with a nego-
tiated agreement for a corrective action 
plan that is approved by the Secretary and 
carried out in accordance with guidelines 
issued by the Secretary; or
1444 
‘‘(iii) is a territory that receives less 
than $1,000,000 for a fiscal year under sec-
tion 1921. 
‘‘(B) CERTIFICATION.— 
‘‘(i) IN
GENERAL.—The amount of 
funds to be committed by a State pursuant 
to subparagraph (A)(i) shall be equal to 1 
percent of such State’s substance abuse allo-
cation determined under section 1933 for 
each percentage point by which the State 
misses the retailer compliance rate goal es-
tablished by the Secretary. 
‘‘(ii) STATE
EXPENDITURES.—For a 
fiscal year in which a State commits funds 
as described in clause (i), such State shall 
maintain State expenditures for tobacco 
prevention programs and for compliance ac-
tivities at a level that is not less than the 
level of such expenditures maintained by the 
State for the preceding fiscal year, plus the 
additional funds for tobacco compliance ac-
tivities required under clause (i). The State 
shall submit a report to the Secretary on all 
State obligations of funds for such fiscal 
year and all State expenditures for the pre-
1445 
ceding fiscal year for tobacco prevention 
and compliance activities by program activ-
ity by July 31 of such fiscal year. 
‘‘(iii) 
DISCRETION.—The 
Secretary 
shall exercise discretion in enforcing the 
timing of the State obligation of the addi-
tional funds required by the certification 
described in subparagraph (A)(i) as late as 
July 31 of such fiscal year. 
‘‘(C) FAILURE TO CERTIFY.—If a State de-
scribed in subparagraph (A) fails to certify to 
the Secretary pursuant to subparagraph (A)(i) 
or enter into, or comply with, a negotiated agree-
ment under subparagraph (A)(ii), the Secretary 
may take action pursuant to paragraph (1).’’; 
and 
(6) by adding at the end the following: 
‘‘(c) IMPLEMENTATION
OF
REPORTING
REQUIRE-
MENTS.— 
‘‘(1) 
TRANSITION
PERIOD.—The 
Secretary 
shall— 
‘‘(A) not withhold amounts under subsection 
(b) for the 3-year period immediately following 
the date of enactment of division N of the Fur-
ther Consolidated Appropriations Act, 2020; and
1446 
‘‘(B) use discretion in exercising its author-
ity under subsection (b) during the 2-year period 
immediately following the 3-year period de-
scribed in subparagraph (A), to allow for a tran-
sition period for implementation of the reporting 
requirements under subsection (a)(2). 
‘‘(2) REGULATIONS
OR
GUIDANCE.—Not later 
than 180 days after the date of enactment of division 
N of the Further Consolidated Appropriations Act, 
2020, the Secretary shall update regulations under 
part 96 of title 45, Code of Federal Regulations or 
guidance on the retailer compliance rate goal under 
subsection (b), the use of funds provided under section 
1921 for purposes of meeting the requirements of this 
section, and reporting requirements under subsection 
(a)(2). 
‘‘(3) COORDINATION.—The Secretary shall ensure 
the Assistant Secretary for Mental Health and Sub-
stance Use coordinates, as appropriate, with the Com-
missioner of Food and Drugs to ensure that the tech-
nical assistance provided to States under subsection 
(e) is consistent with applicable regulations for retail-
ers issued under part 1140 of title 21, Code of Federal 
Regulations. 
‘‘(d) TRANSITIONAL GRANTS.—
1447 
‘‘(1) IN GENERAL.—The Secretary shall award 
grants under this subsection to each State that re-
ceives funding under section 1921 to ensure compli-
ance of each such State with this section. 
‘‘(2) USE OF FUNDS.—A State receiving a grant 
under this subsection— 
‘‘(A) shall use amounts received under such 
grant for activities to plan for or ensure compli-
ance in the State with subsection (a); and 
‘‘(B) in the case of a State for which the 
Secretary has made a determination under sub-
section (b) that the State is prepared to meet, or 
has met, the requirements of subsection (a), may 
use such funds for tobacco cessation activities, 
strategies to prevent the use of tobacco products 
by individuals under the age of 21, or allowable 
uses under section 1921. 
‘‘(3) 
SUPPLEMENT
NOT
SUPPLANT.—Grants 
under this subsection shall be used to supplement and 
not supplant other Federal, State, and local public 
funds provided for activities under paragraph (2). 
‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—To 
carry out this subsection, there are authorized to be 
appropriated $18,580,790 for each of fiscal years 
2020 through 2024.
1448 
‘‘(5) SUNSET.—This subsection shall have no 
force or effect after September 30, 2024. 
‘‘(e) TECHNICAL ASSISTANCE.—The Secretary shall 
provide technical assistance to States related to the activi-
ties required under this section.’’. 
(b) REPORT TO CONGRESS.—Not later than 3 years 
after the date of enactment of this Act, the Secretary shall 
submit to the Committee on Health, Education, Labor, and 
Pensions of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report on the 
status of implementing the requirements of section 1926 of 
the Public Health Service Act (42 U.S.C. 300x–26), as 
amended by subsection (a), and a description of any tech-
nical assistance provided under subsection (e) of such sec-
tion, including the number of meetings requested and held 
related to technical assistance. 
(c) CONFORMING AMENDMENT.—Section 212 of divi-
sion D of the Consolidated Appropriations Act, 2010 (Pub-
lic Law 111–117) is repealed. 
SEC. 605. BIOLOGICAL PRODUCT DEFINITION. 
Section 351(i)(1) of the Public Health Service Act (42 
U.S.C. 262(i)(1)) is amended by striking ‘‘(except any 
chemically synthesized polypeptide)’’.
1449 
SEC. 606. PROTECTING ACCESS TO BIOLOGICAL PRODUCTS. 
Section 351(k)(7) of the Public Health Service Act (42 
U.S.C. 262(k)(7)) is amended by adding at the end the fol-
lowing: 
‘‘(D) DEEMED LICENSES.— 
‘‘(i) 
NO
ADDITIONAL
EXCLUSIVITY 
THROUGH DEEMING.—An approved appli-
cation that is deemed to be a license for a 
biological product under this section pursu-
ant to section 7002(e)(4) of the Biologics 
Price Competition and Innovation Act of 
2009 shall not be treated as having been 
first licensed under subsection (a) for pur-
poses of subparagraphs (A) and (B). 
‘‘(ii) APPLICATION OF LIMITATIONS ON 
EXCLUSIVITY.—Subparagraph 
(C) 
shall 
apply with respect to a reference product re-
ferred to in such subparagraph that was the 
subject of an approved application that was 
deemed to be a license pursuant to section 
7002(e)(4) of the Biologics Price Competi-
tion and Innovation Act of 2009. 
‘‘(iii) APPLICABILITY.—The exclusivity 
periods described in section 527, section 
505A(b)(1)(A)(ii), 
and 
section 
505A(c)(1)(A)(ii) of the Federal Food,
1450 
Drug, and Cosmetic Act shall continue to 
apply to a biological product after an ap-
proved application for the biological prod-
uct is deemed to be a license for the biologi-
cal product under subsection (a) pursuant 
to section 7002(e)(4) of the Biologics Price 
Competition and Innovation Act of 2009.’’. 
SEC. 607. STREAMLINING THE TRANSITION OF BIOLOGICAL 
PRODUCTS. 
Section 7002(e)(4) of the Biologics Price Competition 
and Innovation Act of 2009 (Public Law 111–148) is 
amended— 
(1) by striking ‘‘An approved application’’ and 
inserting the following: 
‘‘(A) IN GENERAL.—An approved applica-
tion’’; and 
(2) by adding at the end the following: 
‘‘(B) TREATMENT
OF
CERTAIN
APPLICA-
TIONS.— 
‘‘(i) IN GENERAL.—With respect to an 
application for a biological product sub-
mitted under subsection (b) or (j) of section 
505 of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 355) that is filed not 
later than March 23, 2019, and is not ap-
1451 
proved as of March 23, 2020, the Secretary 
shall continue to review such application 
under such section 505 after March 23, 
2020. 
‘‘(ii) EFFECT
ON
LISTED
DRUGS.— 
Only for purposes of carrying out clause (i), 
with respect to any applicable listed drug 
with respect to such application, the fol-
lowing shall apply: 
‘‘(I) Any drug that is a biological 
product that has been deemed licensed 
under section 351 of the Public Health 
Service Act (42 U.S.C. 262) pursuant 
to subparagraph (A) and that is ref-
erenced in an application described in 
clause (i), shall continue to be identi-
fied as a listed drug on the list pub-
lished pursuant to section 505(j)(7) of 
the Federal Food, Drug, and Cosmetic 
Act, and the information for such drug 
on such list shall not be revised after 
March 20, 2020, until— 
‘‘(aa) such drug is removed 
from such list in accordance with
1452 
subclause (III) or subparagraph 
(C) of such section 505(j)(7); or 
‘‘(bb) this subparagraph no 
longer has force or effect. 
‘‘(II) Any drug that is a biologi-
cal product that has been deemed li-
censed under section 351 of the Public 
Health Service Act (42 U.S.C. 262) 
pursuant to subparagraph (A) and 
that is referenced in an application de-
scribed in clause (i) shall be subject 
only to requirements applicable to bio-
logical products licensed under such 
section. 
‘‘(III) Upon approval under sub-
section (c) or (j) of section 505 of the 
Federal Food, Drug, and Cosmetic Act 
of an application described in clause 
(i), the Secretary shall remove from the 
list published pursuant to section 
505(j)(7) of the Federal Food, Drug, 
and Cosmetic Act any listed drug that 
is a biological product that has been 
deemed licensed under section 351 of 
the Public Health Service Act pursuant
1453 
to subparagraph (A) and that is ref-
erenced in such approved application, 
unless such listed drug is referenced in 
one or more additional applications 
described in clause (i). 
‘‘(iii) DEEMED LICENSURE.—Upon ap-
proval of an application described in clause 
(i), such approved application shall be 
deemed to be a license for the biological 
product under section 351 of the Public 
Health Service Act. 
‘‘(iv) RULE OF CONSTRUCTION.— 
‘‘(I) APPLICATION
OF
CERTAIN 
PROVISIONS.— 
‘‘(aa) 
PATENT
CERTIFI-
CATION OR STATEMENT.—An ap-
plication described in clause (i) 
shall contain a patent certifi-
cation or statement described in, 
as applicable, section 505(b)(2) of 
the Federal Food, Drug, and Cos-
metic Act or clauses (vii) and 
(viii) of section 505(j)(2)(A) of 
such Act and, with respect to any 
listed drug referenced in such ap-
1454 
plication, comply with related re-
quirements concerning any timely 
filed patent information listed 
pursuant to section 505(j)(7) of 
such Act. 
‘‘(bb) DATE OF APPROVAL.— 
The earliest possible date on 
which any pending application 
described in clause (i) may be ap-
proved shall be determined based 
on— 
‘‘(AA) the last expira-
tion date of any applicable 
period of exclusivity that 
would prevent such approval 
and that is described in sec-
tion 
505(c)(3)(E), 
505(j)(5)(B)(iv), 
505(j)(5)(F), 505A, 505E, or 
527 of the Federal Food, 
Drug, and Cosmetic Act; and 
‘‘(BB) if the application 
was submitted pursuant to 
section 505(b)(2) of the Fed-
eral Food, Drug, and Cos-
1455 
metic Act and references any 
listed drug, the last applica-
ble date determined under 
subparagraph (A), (B), or 
(C) of section 505(c)(3) of 
such Act, or, if the applica-
tion was submitted under 
section 505(j) of such Act, the 
last applicable date deter-
mined under clause (i), (ii), 
or 
(iii) 
of 
section 
505(j)(5)(B) of such Act. 
‘‘(II) EXCLUSIVITY.—Nothing in 
this subparagraph shall be construed to 
affect section 351(k)(7)(D) of the Pub-
lic Health Service Act. 
‘‘(v) LISTING.—The Secretary may 
continue to review an application after 
March 23, 2020, pursuant to clause (i), and 
continue to identify any applicable listed 
drug pursuant to clause (ii) on the list pub-
lished pursuant to section 505(j)(7) of the 
Federal Food, Drug, and Cosmetic Act, even 
if such review or listing may reveal the ex-
istence of such application and the identity
1456 
of any listed drug for which the investiga-
tions described in section 505(b)(1)(A) of 
the Federal Food, Drug, and Cosmetic Act 
are relied upon by the applicant for ap-
proval of the pending application. Nothing 
in this subparagraph shall be construed as 
authorizing the Secretary to disclose any 
other information that is a trade secret or 
confidential information described in sec-
tion 552(b)(4) of title 5, United States 
Code. 
‘‘(vi) SUNSET.—Beginning on October 
1, 2022, this subparagraph shall have no 
force or effect and any applications de-
scribed in clause (i) that have not been ap-
proved shall be deemed withdrawn.’’. 
SEC. 608. REENROLLMENT OF CERTAIN INDIVIDUALS IN 
QUALIFIED HEALTH PLANS IN CERTAIN EX-
CHANGES. 
Section 1311(c) of the Patient Protection and Afford-
able Care Act (42 U.S.C. 18031(c)) is amended by adding 
the end the following new paragraph: 
‘‘(7) REENROLLMENT OF CERTAIN INDIVIDUALS 
IN
QUALIFIED
HEALTH
PLANS
IN
CERTAIN
EX-
CHANGES.—
1457 
‘‘(A) IN GENERAL.—In the case of an Ex-
change that the Secretary operates pursuant to 
section 1321(c)(1), the Secretary shall establish a 
process under which an individual described in 
subparagraph (B) is reenrolled for plan year 
2021 in a qualified health plan offered through 
such Exchange. Such qualified health plan under 
which such individual is so reenrolled shall be— 
‘‘(i) if available for plan year 2021, 
the qualified health plan under which such 
individual is enrolled during the annual 
open enrollment period for such plan year; 
and 
‘‘(ii) if such qualified health plan is 
not available for plan year 2021, a quali-
fied health plan offered through such Ex-
change determined appropriate by the Sec-
retary. 
‘‘(B) INDIVIDUAL
DESCRIBED.—An indi-
vidual described in this subsection is an indi-
vidual who, with respect to plan year 2020— 
‘‘(i) resides in a State with an Ex-
change described in subparagraph (A); 
‘‘(ii) is enrolled in a qualified health 
plan during such plan year and does not
1458 
enroll in a qualified health plan for plan 
year 2021 during the annual open enroll-
ment period for such plan year 2021; and 
‘‘(iii) does not elect to disenroll under 
a qualified health plan for plan year 2021 
during such annual open enrollment pe-
riod.’’. 
SEC. 609. PROTECTION OF SILVER LOADING PRACTICE. 
With respect to plan year 2021, the Secretary of 
Health and Human Services may not take any action to 
prohibit or otherwise restrict the practice commonly known 
as ‘‘silver loading’’ (as described in the rule entitled ‘‘Pa-
tient Protection and Affordable Care Act; HHS Notice of 
Benefit and Payment Parameters for 2020’’ published on 
April 25, 2019 (84 Fed. Reg. 17533)). 
SEC. 610. ACTIONS FOR DELAYS OF GENERIC DRUGS AND 
BIOSIMILAR BIOLOGICAL PRODUCTS. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘commercially reasonable, market- 
based terms’’ means— 
(A) a nondiscriminatory price for the sale 
of the covered product at or below, but not great-
er than, the most recent wholesale acquisition 
cost for the drug, as defined in section
1459 
1847A(c)(6)(B) of the Social Security Act (42 
U.S.C. 1395w–3a(c)(6)(B)); 
(B) a schedule for delivery that results in 
the transfer of the covered product to the eligible 
product developer consistent with the timing 
under subsection (b)(2)(A)(iv); and 
(C) no additional conditions are imposed 
on the sale of the covered product; 
(2) the term ‘‘covered product’’— 
(A) means— 
(i) any drug approved under sub-
section (c) or (j) of section 505 of the Fed-
eral Food, Drug, and Cosmetic Act (21 
U.S.C. 355) or biological product licensed 
under subsection (a) or (k) of section 351 of 
the Public Health Service Act (42 U.S.C. 
262); 
(ii) any combination of a drug or bio-
logical product described in clause (i); or 
(iii) when reasonably necessary to sup-
port approval of an application under sec-
tion 505 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 355), or section 
351 of the Public Health Service Act (42 
U.S.C. 262), as applicable, or otherwise
1460 
meet the requirements for approval under 
either such section, any product, including 
any device, that is marketed or intended for 
use with such a drug or biological product; 
and 
(B) does not include any drug or biological 
product that appears on the drug shortage list in 
effect under section 506E of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 356e), un-
less— 
(i) the drug or biological product has 
been on the drug shortage list in effect 
under such section 506E continuously for 
more than 6 months; or 
(ii) the Secretary determines that in-
clusion of the drug or biological product as 
a covered product is likely to contribute to 
alleviating or preventing a shortage. 
(3) the term ‘‘device’’ has the meaning given the 
term in section 201 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 321); 
(4) the term ‘‘eligible product developer’’ means 
a person that seeks to develop a product for approval 
pursuant to an application for approval under sub-
section (b)(2) or (j) of section 505 of the Federal
1461 
Food, Drug, and Cosmetic Act (21 U.S.C. 355) or for 
licensing pursuant to an application under section 
351(k) of the Public Health Service Act (42 U.S.C. 
262(k)); 
(5) the term ‘‘license holder’’ means the holder of 
an application approved under subsection (c) or (j) of 
section 505 of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 355) or the holder of a license under 
subsection (a) or (k) of section 351 of the Public 
Health Service Act (42 U.S.C. 262) for a covered 
product; 
(6) the term ‘‘REMS’’ means a risk evaluation 
and mitigation strategy under section 505–1 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
355–1); 
(7) the term ‘‘REMS with ETASU’’ means a 
REMS that contains elements to assure safe use under 
section 505–1(f) of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 355–1(f)); 
(8) the term ‘‘Secretary’’ means the Secretary of 
Health and Human Services; 
(9) the term ‘‘single, shared system of elements to 
assure safe use’’ means a single, shared system of ele-
ments to assure safe use under section 505–1(f) of the
1462 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
355–1(f)); and 
(10) the term ‘‘sufficient quantities’’ means an 
amount of a covered product that the eligible product 
developer determines allows it to— 
(A) conduct testing to support an applica-
tion under— 
(i) subsection (b)(2) or (j) of section 
505 of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 355); or 
(ii) section 351(k) of the Public Health 
Service Act (42 U.S.C. 262(k)); and 
(B) fulfill any regulatory requirements re-
lating to approval of such an application. 
(b) CIVIL ACTION FOR FAILURE TO PROVIDE SUFFI-
CIENT QUANTITIES OF A COVERED PRODUCT.— 
(1) IN GENERAL.—An eligible product developer 
may bring a civil action against the license holder for 
a covered product seeking relief under this subsection 
in an appropriate district court of the United States 
alleging that the license holder has declined to provide 
sufficient quantities of the covered product to the eli-
gible product developer on commercially reasonable, 
market-based terms. 
(2) ELEMENTS.—
1463 
(A) IN GENERAL.—To prevail in a civil ac-
tion brought under paragraph (1), an eligible 
product developer shall prove, by a preponder-
ance of the evidence— 
(i) that— 
(I) the covered product is not sub-
ject to a REMS with ETASU; or 
(II) if the covered product is sub-
ject to a REMS with ETASU— 
(aa) the eligible product de-
veloper has obtained a covered 
product authorization from the 
Secretary in accordance with sub-
paragraph (B); and 
(bb) the eligible product de-
veloper has provided a copy of the 
covered product authorization to 
the license holder; 
(ii) that, as of the date on which the 
civil action is filed, the eligible product de-
veloper has not obtained sufficient quan-
tities of the covered product on commer-
cially reasonable, market-based terms; 
(iii) that the eligible product developer 
has submitted a written request to purchase
1464 
sufficient quantities of the covered product 
to the license holder, and such request— 
(I) was sent to a named corporate 
officer of the license holder; 
(II) was made by certified or reg-
istered mail with return receipt re-
quested; 
(III) specified an individual as 
the point of contact for the license 
holder to direct communications re-
lated to the sale of the covered product 
to the eligible product developer and a 
means for electronic and written com-
munications with that individual; and 
(IV) specified an address to which 
the covered product was to be shipped 
upon reaching an agreement to trans-
fer the covered product; and 
(iv) that the license holder has not de-
livered to the eligible product developer suf-
ficient quantities of the covered product on 
commercially 
reasonable, 
market-based 
terms— 
(I) for a covered product that is 
not subject to a REMS with ETASU,
1465 
by the date that is 31 days after the 
date on which the license holder re-
ceived the request for the covered prod-
uct; and 
(II) for a covered product that is 
subject to a REMS with ETASU, by 
31 days after the later of— 
(aa) the date on which the li-
cense holder received the request 
for the covered product; or 
(bb) the date on which the li-
cense holder received a copy of the 
covered 
product 
authorization 
issued by the Secretary in accord-
ance with subparagraph (B). 
(B) AUTHORIZATION FOR COVERED PROD-
UCT SUBJECT TO A REMS WITH ETASU.— 
(i) REQUEST.—An eligible product de-
veloper may submit to the Secretary a writ-
ten request for the eligible product developer 
to be authorized to obtain sufficient quan-
tities of an individual covered product sub-
ject to a REMS with ETASU. 
(ii) AUTHORIZATION.—Not later than 
120 days after the date on which a request
1466 
under clause (i) is received, the Secretary 
shall, by written notice, authorize the eligi-
ble product developer to obtain sufficient 
quantities of an individual covered product 
subject to a REMS with ETASU for pur-
poses of— 
(I) development and testing that 
does not involve human clinical trials, 
if the eligible product developer has 
agreed to comply with any conditions 
the Secretary determines necessary; or 
(II) development and testing that 
involves human clinical trials, if the 
eligible product developer has— 
(aa)(AA) submitted protocols, 
informed consent documents, and 
informational materials for test-
ing that include protections that 
provide safety protections com-
parable to those provided by the 
REMS for the covered product; or 
(BB) otherwise satisfied the 
Secretary that such protections 
will be provided; and
1467 
(bb) met any other require-
ments the Secretary may estab-
lish. 
(iii) NOTICE.—A covered product au-
thorization issued under this subparagraph 
shall state that the provision of the covered 
product by the license holder under the 
terms of the authorization will not be a vio-
lation of the REMS for the covered product. 
(3) AFFIRMATIVE DEFENSE.—In a civil action 
brought under paragraph (1), it shall be an affirma-
tive defense, on which the defendant has the burden 
of persuasion by a preponderance of the evidence— 
(A) that, on the date on which the eligible 
product developer requested to purchase sufficient 
quantities of the covered product from the license 
holder— 
(i) neither the license holder nor any of 
its agents, wholesalers, or distributors was 
engaged in the manufacturing or commer-
cial marketing of the covered product; and 
(ii) neither the license holder nor any 
of its agents, wholesalers, or distributors 
otherwise had access to inventory of the cov-
ered product to supply to the eligible prod-
1468 
uct developer on commercially reasonable, 
market-based terms; 
(B) that— 
(i) the license holder sells the covered 
product through agents, distributors, or 
wholesalers; 
(ii) the license holder has placed no re-
strictions, explicit or implicit, on its agents, 
distributors, or wholesalers to sell covered 
products to eligible product developers; and 
(iii) the covered product can be pur-
chased by the eligible product developer in 
sufficient quantities on commercially rea-
sonable, 
market-based 
terms 
from 
the 
agents, distributors, or wholesalers of the li-
cense holder; or 
(C) that the license holder made an offer to 
the individual specified pursuant to paragraph 
(2)(A)(iii)(III), by a means of communication 
(electronic, written, or both) specified pursuant 
to such paragraph, to sell sufficient quantities of 
the covered product to the eligible product devel-
oper at commercially reasonable market-based 
terms—
1469 
(i) for a covered product that is not 
subject to a REMS with ETASU, by the 
date that is 14 days after the date on which 
the license holder received the request for the 
covered product, and the eligible product de-
veloper did not accept such offer by the date 
that is 7 days after the date on which the 
eligible product developer received such offer 
from the license holder; or 
(ii) for a covered product that is sub-
ject to a REMS with ETASU, by the date 
that is 20 days after the date on which the 
license holder received the request for the 
covered product, and the eligible product de-
veloper did not accept such offer by the date 
that is 10 days after the date on which the 
eligible product developer received such offer 
from the license holder. 
(4) REMEDIES.— 
(A) IN GENERAL.—If an eligible product de-
veloper prevails in a civil action brought under 
paragraph (1), the court shall— 
(i) order the license holder to provide 
to the eligible product developer without 
delay sufficient quantities of the covered
1470 
product on commercially reasonable, mar-
ket-based terms; 
(ii) award to the eligible product devel-
oper reasonable attorney’s fees and costs of 
the civil action; and 
(iii) award to the eligible product de-
veloper a monetary amount sufficient to 
deter the license holder from failing to pro-
vide eligible product developers with suffi-
cient quantities of a covered product on 
commercially 
reasonable, 
market-based 
terms, if the court finds, by a preponder-
ance of the evidence— 
(I) that the license holder delayed 
providing sufficient quantities of the 
covered product to the eligible product 
developer without a legitimate business 
justification; or 
(II) that the license holder failed 
to comply with an order issued under 
clause (i). 
(B) 
MAXIMUM
MONETARY
AMOUNT.—A 
monetary amount awarded under subparagraph 
(A)(iii) shall not be greater than the revenue that
1471 
the license holder earned on the covered product 
during the period— 
(i) beginning on— 
(I) for a covered product that is 
not subject to a REMS with ETASU, 
the date that is 31 days after the date 
on which the license holder received the 
request; or 
(II) for a covered product that is 
subject to a REMS with ETASU, the 
date that is 31 days after the later of— 
(aa) the date on which the li-
cense holder received the request; 
or 
(bb) the date on which the li-
cense holder received a copy of the 
covered 
product 
authorization 
issued by the Secretary in accord-
ance with paragraph (2)(B); and 
(ii) ending on the date on which the el-
igible product developer received sufficient 
quantities of the covered product. 
(C) AVOIDANCE OF DELAY.—The court may 
issue an order under subparagraph (A)(i) before 
conducting further proceedings that may be nec-
1472 
essary to determine whether the eligible product 
developer is entitled to an award under clause 
(ii) or (iii) of subparagraph (A), or the amount 
of any such award. 
(c) LIMITATION OF LIABILITY.—A license holder for a 
covered product shall not be liable for any claim under Fed-
eral, State, or local law arising out of the failure of an 
eligible product developer to follow adequate safeguards to 
assure safe use of the covered product during development 
or testing activities described in this section, including 
transportation, handling, use, or disposal of the covered 
product by the eligible product developer. 
(d) NO VIOLATION OF REMS.—Section 505–1 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355–1) 
is amended by adding at the end the following new sub-
section: 
‘‘(l) PROVISION OF SAMPLES NOT A VIOLATION OF 
STRATEGY.—The provision of samples of a covered product 
to an eligible product developer (as those terms are defined 
in section 610(a) of division N of the Further Consolidated 
Appropriations Act, 2020) shall not be considered a viola-
tion of the requirements of any risk evaluation and mitiga-
tion strategy that may be in place under this section for 
such drug.’’. 
(e) RULE OF CONSTRUCTION.—
1473 
(1) DEFINITION.—In this subsection, the term 
‘‘antitrust laws’’— 
(A) has the meaning given the term in sub-
section (a) of the first section of the Clayton Act 
(15 U.S.C. 12); and 
(B) includes section 5 of the Federal Trade 
Commission Act (15 U.S.C. 45) to the extent that 
such section applies to unfair methods of com-
petition. 
(2) ANTITRUST LAWS.—Nothing in this section 
shall be construed to limit the operation of any provi-
sion of the antitrust laws. 
(f) REMS APPROVAL PROCESS FOR SUBSEQUENT FIL-
ERS.—Section 505–1 of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 355–1), as amended by subsection (d), 
is further amended— 
(1) in subsection (g)(4)(B)— 
(A) in clause (i) by striking ‘‘or’’ after the 
semicolon; 
(B) in clause (ii) by striking the period at 
the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(iii) accommodate different, com-
parable aspects of the elements to assure 
safe use for a drug that is the subject of an
1474 
application under section 505(j), and the 
applicable listed drug.’’; 
(2) in subsection (i)(1), by striking subpara-
graph (C) and inserting the following: 
‘‘(C)(i) Elements to assure safe use, if re-
quired under subsection (f) for the listed drug, 
which, subject to clause (ii), for a drug that is 
the subject of an application under section 505(j) 
may use— 
‘‘(I) a single, shared system with the 
listed drug under subsection (f); or 
‘‘(II) a different, comparable aspect of 
the elements to assure safe use under sub-
section (f). 
‘‘(ii) The Secretary may require a drug that 
is the subject of an application under section 
505(j) and the listed drug to use a single, shared 
system under subsection (f), if the Secretary de-
termines that no different, comparable aspect of 
the elements to assure safe use could satisfy the 
requirements of subsection (f).’’; 
(3) in subsection (i), by adding at the end the 
following: 
‘‘(3) SHARED REMS.—If the Secretary approves, 
in accordance with paragraph (1)(C)(i)(II), a dif-
1475 
ferent, comparable aspect of the elements to assure 
safe use under subsection (f) for a drug that is the 
subject of an abbreviated new drug application under 
section 505(j), the Secretary may require that such 
different comparable aspect of the elements to assure 
safe use can be used with respect to any other drug 
that is the subject of an application under section 
505(j) or 505(b) that references the same listed drug.’’; 
and 
(4) by adding at the end the following: 
‘‘(m) SEPARATE REMS.—When used in this section, 
the term ‘different, comparable aspect of the elements to as-
sure safe use’ means a risk evaluation and mitigation strat-
egy for a drug that is the subject of an application under 
section 505(j) that uses different methods or operational 
means than the strategy required under subsection (a) for 
the applicable listed drug, or other application under sec-
tion 505(j) with the same such listed drug, but achieves the 
same level of safety as such strategy.’’. 
(g) RULE OF CONSTRUCTION.—Nothing in this section, 
the amendments made by this section, or in section 505– 
1 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
355–1), shall be construed as— 
(1) prohibiting a license holder from providing 
an eligible product developer access to a covered prod-
1476 
uct in the absence of an authorization under this sec-
tion; or 
(2) in any way negating the applicability of a 
REMS with ETASU, as otherwise required under 
such section 505–1, with respect to such covered prod-
uct. 
DIVISION 
O—SETTING 
EVERY 
COMMUNITY UP FOR RETIRE-
MENT ENHANCEMENT 
SEC. 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Set-
ting Every Community Up for Retirement Enhancement 
Act of 2019’’. 
(b) TABLE OF CONTENTS.—The table of contents of this 
Act is as follows: 
Sec. 1. Short title, etc. 
TITLE I—EXPANDING AND PRESERVING RETIREMENT SAVINGS 
Sec. 101. Multiple employer plans; pooled employer plans. 
Sec. 102. Increase in 10 percent cap for automatic enrollment safe harbor after 
1st plan year. 
Sec. 103. Rules relating to election of safe harbor 401(k) status. 
Sec. 104. Increase in credit limitation for small employer pension plan startup 
costs. 
Sec. 105. Small employer automatic enrollment credit. 
Sec. 106. Certain taxable non-tuition fellowship and stipend payments treated as 
compensation for IRA purposes. 
Sec. 107. Repeal of maximum age for traditional IRA contributions. 
Sec. 108. Qualified employer plans prohibited from making loans through credit 
cards and other similar arrangements. 
Sec. 109. Portability of lifetime income options. 
Sec. 110. Treatment of custodial accounts on termination of section 403(b) plans. 
Sec. 111. Clarification of retirement income account rules relating to church-con-
trolled organizations. 
Sec. 112. Qualified cash or deferred arrangements must allow long-term employ-
ees working more than 500 but less than 1,000 hours per year 
to participate.
1477 
Sec. 113. Penalty-free withdrawals from retirement plans for individuals in case 
of birth of child or adoption. 
Sec. 114. Increase in age for required beginning date for mandatory distributions. 
Sec. 115. Special rules for minimum funding standards for community news-
paper plans. 
Sec. 116. Treating excluded difficulty of care payments as compensation for deter-
mining retirement contribution limitations. 
TITLE II—ADMINISTRATIVE IMPROVEMENTS 
Sec. 201. Plan adopted by filing due date for year may be treated as in effect 
as of close of year. 
Sec. 202. Combined annual report for group of plans. 
Sec. 203. Disclosure regarding lifetime income. 
Sec. 204. Fiduciary safe harbor for selection of lifetime income provider. 
Sec. 205. Modification of nondiscrimination rules to protect older, longer service 
participants. 
Sec. 206. Modification of PBGC premiums for CSEC plans. 
TITLE III—OTHER BENEFITS 
Sec. 301. Benefits provided to volunteer firefighters and emergency medical re-
sponders. 
Sec. 302. Expansion of section 529 plans. 
TITLE IV—REVENUE PROVISIONS 
Sec. 401. Modification of required distribution rules for designated beneficiaries. 
Sec. 402. Increase in penalty for failure to file. 
Sec. 403. Increased penalties for failure to file retirement plan returns. 
Sec. 404. Increase information sharing to administer excise taxes. 
TITLE V—TAX RELIEF FOR CERTAIN CHILDREN 
Sec. 501. Modification of rules relating to the taxation of unearned income of cer-
tain children. 
TITLE VI—ADMINISTRATIVE PROVISIONS 
Sec. 601. Provisions relating to plan amendments. 
TITLE I—EXPANDING AND PRE-
SERVING RETIREMENT SAV-
INGS 
SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER 
PLANS. 
(a) QUALIFICATION REQUIREMENTS.—
1478 
(1) IN GENERAL.—Section 413 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(e) APPLICATION OF QUALIFICATION REQUIREMENTS 
FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH POOLED 
PLAN PROVIDERS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if a defined contribution plan to which 
subsection (c) applies— 
‘‘(A) is maintained by employers which 
have a common interest other than having adopt-
ed the plan, or 
‘‘(B) in the case of a plan not described in 
subparagraph (A), has a pooled plan provider, 
then the plan shall not be treated as failing to meet 
the requirements under this title applicable to a plan 
described in section 401(a) or to a plan that consists 
of individual retirement accounts described in section 
408 (including by reason of subsection (c) thereof), 
whichever is applicable, merely because one or more 
employers of employees covered by the plan fail to 
take such actions as are required of such employers 
for the plan to meet such requirements. 
‘‘(2) LIMITATIONS.—
1479 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any plan unless the terms of the 
plan provide that in the case of any employer in 
the plan failing to take the actions described in 
paragraph (1)— 
‘‘(i) the assets of the plan attributable 
to employees of such employer (or bene-
ficiaries of such employees) will be trans-
ferred to a plan maintained only by such 
employer (or its successor), to an eligible re-
tirement 
plan 
as 
defined 
in 
section 
402(c)(8)(B) for each individual whose ac-
count is transferred, or to any other ar-
rangement that the Secretary determines is 
appropriate, unless the Secretary deter-
mines it is in the best interests of the em-
ployees of such employer (and the bene-
ficiaries of such employees) to retain the as-
sets in the plan, and 
‘‘(ii) such employer (and not the plan 
with respect to which the failure occurred or 
any other employer in such plan) shall, ex-
cept to the extent provided by the Secretary, 
be liable for any liabilities with respect to 
such plan attributable to employees of such
1480 
employer (or beneficiaries of such employ-
ees). 
‘‘(B) FAILURES
BY
POOLED
PLAN
PRO-
VIDERS.—If the pooled plan provider of a plan 
described in paragraph (1)(B) does not perform 
substantially all of the administrative duties 
which are required of the provider under para-
graph (3)(A)(i) for any plan year, the Secretary 
may provide that the determination as to wheth-
er the plan meets the requirements under this 
title applicable to a plan described in section 
401(a) or to a plan that consists of individual 
retirement accounts described in section 408 (in-
cluding by reason of subsection (c) thereof), 
whichever is applicable, shall be made in the 
same manner as would be made without regard 
to paragraph (1). 
‘‘(3) POOLED PLAN PROVIDER.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘pooled plan provider’ 
means, with respect to any plan, a person who— 
‘‘(i) is designated by the terms of the 
plan as a named fiduciary (within the 
meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of
1481 
1974), as the plan administrator, and as 
the person responsible to perform all admin-
istrative duties (including conducting prop-
er testing with respect to the plan and the 
employees of each employer in the plan) 
which are reasonably necessary to ensure 
that— 
‘‘(I) the plan meets any require-
ment applicable under the Employee 
Retirement Income Security Act of 
1974 or this title to a plan described in 
section 401(a) or to a plan that con-
sists of individual retirement accounts 
described in section 408 (including by 
reason of subsection (c) thereof), which-
ever is applicable, and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
such person determines are necessary 
for the plan to meet the requirements 
described in subclause (I), including 
providing to such person any disclo-
sures or other information which the 
Secretary may require or which such 
person otherwise determines are nec-
1482 
essary to administer the plan or to 
allow the plan to meet such require-
ments, 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides such 
other information to the Secretary as the 
Secretary may require, before beginning op-
erations as a pooled plan provider, 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary (within 
the meaning of section 402(a)(2) of the Em-
ployee Retirement Income Security Act of 
1974), and the plan administrator, with re-
spect to the plan, and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who are 
fiduciaries of, the plan are bonded in ac-
cordance with section 412 of the Employee 
Retirement Income Security Act of 1974. 
‘‘(B) AUDITS, EXAMINATIONS
AND
INVES-
TIGATIONS.—The Secretary may perform audits, 
examinations, and investigations of pooled plan 
providers as may be necessary to enforce and 
carry out the purposes of this subsection.
1483 
‘‘(C) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a per-
son meets the requirements of this paragraph to 
be a pooled plan provider with respect to any 
plan, all persons who perform services for the 
plan and who are treated as a single employer 
under subsection (b), (c), (m), or (o) of section 
414 shall be treated as one person. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the adminis-
trative duties of the pooled plan provider de-
scribed in subparagraph (A)(i), each employer in 
a plan which has a pooled plan provider shall 
be treated as the plan sponsor with respect to the 
portion of the plan attributable to employees of 
such employer (or beneficiaries of such employ-
ees). 
‘‘(4) GUIDANCE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
issue such guidance as the Secretary determines 
appropriate to carry out this subsection, includ-
ing guidance— 
‘‘(i) to identify the administrative du-
ties and other actions required to be per-
1486 
‘‘(3) There is a separate accounting for any in-
terest of an employee or member (or spouse of an em-
ployee or member) in a Roth IRA.’’. 
(b) NO COMMON INTEREST REQUIRED FOR POOLED 
EMPLOYER PLANS.—Section 3(2) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(2)) is 
amended by adding at the end the following: 
‘‘(C) A pooled employer plan shall be treat-
ed as— 
‘‘(i) a single employee pension benefit 
plan or single pension plan; and 
‘‘(ii) a plan to which section 210(a) 
applies.’’. 
(c) POOLED EMPLOYER PLAN AND PROVIDER DE-
FINED.— 
(1) IN GENERAL.—Section 3 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1002) is amended by adding at the end the following: 
‘‘(43) POOLED EMPLOYER PLAN.— 
‘‘(A) IN GENERAL.—The term ‘pooled em-
ployer plan’ means a plan— 
‘‘(i) which is an individual account 
plan established or maintained for the pur-
pose of providing benefits to the employees 
of 2 or more employers;
1487 
‘‘(ii) which is a plan described in sec-
tion 401(a) of the Internal Revenue Code of 
1986 which includes a trust exempt from 
tax under section 501(a) of such Code or a 
plan that consists of individual retirement 
accounts described in section 408 of such 
Code (including by reason of subsection (c) 
thereof); and 
‘‘(iii) the terms of which meet the re-
quirements of subparagraph (B). 
Such term shall not include a plan maintained 
by employers which have a common interest 
other than having adopted the plan. 
‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 
The requirements of this subparagraph are met 
with respect to any plan if the terms of the 
plan— 
‘‘(i) designate a pooled plan provider 
and provide that the pooled plan provider is 
a named fiduciary of the plan; 
‘‘(ii) designate one or more trustees 
meeting 
the 
requirements 
of 
section 
408(a)(2) of the Internal Revenue Code of 
1986 (other than an employer in the plan) 
to be responsible for collecting contributions
1488 
to, and holding the assets of, the plan and 
require such trustees to implement written 
contribution collection procedures that are 
reasonable, diligent, and systematic; 
‘‘(iii) provide that each employer in 
the plan retains fiduciary responsibility 
for— 
‘‘(I) the selection and monitoring 
in accordance with section 404(a) of 
the person designated as the pooled 
plan provider and any other person 
who, in addition to the pooled plan 
provider, is designated as a named fi-
duciary of the plan; and 
‘‘(II) to the extent not otherwise 
delegated to another fiduciary by the 
pooled plan provider and subject to the 
provisions of section 404(c), the invest-
ment and management of the portion 
of the plan’s assets attributable to the 
employees of the employer (or bene-
ficiaries of such employees); 
‘‘(iv) provide that employers in the 
plan, and participants and beneficiaries, 
are not subject to unreasonable restrictions,
1489 
fees, or penalties with regard to ceasing 
participation, receipt of distributions, or 
otherwise transferring assets of the plan in 
accordance with section 208 or paragraph 
(44)(C)(i)(II); 
‘‘(v) require— 
‘‘(I) the pooled plan provider to 
provide to employers in the plan any 
disclosures or other information which 
the Secretary may require, including 
any disclosures or other information to 
facilitate the selection or any moni-
toring of the pooled plan provider by 
employers in the plan; and 
‘‘(II) each employer in the plan to 
take such actions as the Secretary or 
the pooled plan provider determines 
are necessary to administer the plan or 
for the plan to meet any requirement 
applicable under this Act or the Inter-
nal Revenue Code of 1986 to a plan de-
scribed in section 401(a) of such Code 
or to a plan that consists of individual 
retirement accounts described in sec-
tion 408 of such Code (including by
1490 
reason of subsection (c) thereof), which-
ever is applicable, including providing 
any disclosures or other information 
which the Secretary may require or 
which the pooled plan provider other-
wise determines are necessary to ad-
minister the plan or to allow the plan 
to meet such requirements; and 
‘‘(vi) provide that any disclosure or 
other information required to be provided 
under clause (v) may be provided in elec-
tronic form and will be designed to ensure 
only reasonable costs are imposed on pooled 
plan providers and employers in the plan. 
‘‘(C) EXCEPTIONS.—The term ‘pooled em-
ployer plan’ does not include— 
‘‘(i) a multiemployer plan; or 
‘‘(ii) a plan established before the date 
of the enactment of the Setting Every Com-
munity Up for Retirement Enhancement 
Act of 2019 unless the plan administrator 
elects that the plan will be treated as a 
pooled employer plan and the plan meets 
the requirements of this title applicable to a
1491 
pooled employer plan established on or after 
such date. 
‘‘(D) TREATMENT OF EMPLOYERS AS PLAN 
SPONSORS.—Except with respect to the adminis-
trative duties of the pooled plan provider de-
scribed in paragraph (44)(A)(i), each employer 
in a pooled employer plan shall be treated as the 
plan sponsor with respect to the portion of the 
plan attributable to employees of such employer 
(or beneficiaries of such employees). 
‘‘(44) POOLED PLAN PROVIDER.— 
‘‘(A) IN GENERAL.—The term ‘pooled plan 
provider’ means a person who— 
‘‘(i) is designated by the terms of a 
pooled employer plan as a named fiduciary, 
as the plan administrator, and as the per-
son responsible for the performance of all 
administrative duties (including conducting 
proper testing with respect to the plan and 
the employees of each employer in the plan) 
which are reasonably necessary to ensure 
that— 
‘‘(I) the plan meets any require-
ment applicable under this Act or the 
Internal Revenue Code of 1986 to a
1492 
plan described in section 401(a) of 
such Code or to a plan that consists of 
individual retirement accounts de-
scribed in section 408 of such Code (in-
cluding by reason of subsection (c) 
thereof), whichever is applicable; and 
‘‘(II) each employer in the plan 
takes such actions as the Secretary or 
pooled plan provider determines are 
necessary for the plan to meet the re-
quirements described in subclause (I), 
including providing the disclosures and 
information described in paragraph 
(43)(B)(v)(II); 
‘‘(ii) registers as a pooled plan pro-
vider with the Secretary, and provides to 
the Secretary such other information as the 
Secretary may require, before beginning op-
erations as a pooled plan provider; 
‘‘(iii) acknowledges in writing that 
such person is a named fiduciary, and the 
plan administrator, with respect to the 
pooled employer plan; and 
‘‘(iv) is responsible for ensuring that 
all persons who handle assets of, or who are
1493 
fiduciaries of, the pooled employer plan are 
bonded in accordance with section 412. 
‘‘(B) AUDITS, EXAMINATIONS
AND
INVES-
TIGATIONS.—The Secretary may perform audits, 
examinations, and investigations of pooled plan 
providers as may be necessary to enforce and 
carry out the purposes of this paragraph and 
paragraph (43). 
‘‘(C) GUIDANCE.—The Secretary shall issue 
such guidance as the Secretary determines ap-
propriate to carry out this paragraph and para-
graph (43), including guidance— 
‘‘(i) to identify the administrative du-
ties and other actions required to be per-
formed by a pooled plan provider under ei-
ther such paragraph; and 
‘‘(ii) which requires in appropriate 
cases that if an employer in the plan fails 
to take the actions required under subpara-
graph (A)(i)(II)— 
‘‘(I) the assets of the plan attrib-
utable to employees of such employer 
(or beneficiaries of such employees) are 
transferred to a plan maintained only 
by such employer (or its successor), to
1494 
an eligible retirement plan as defined 
in section 402(c)(8)(B) of the Internal 
Revenue Code of 1986 for each indi-
vidual whose account is transferred, or 
to any other arrangement that the Sec-
retary determines is appropriate in 
such guidance; and 
‘‘(II) such employer (and not the 
plan with respect to which the failure 
occurred or any other employer in such 
plan) shall, except to the extent pro-
vided in such guidance, be liable for 
any liabilities with respect to such 
plan attributable to employees of such 
employer (or beneficiaries of such em-
ployees). 
The Secretary shall take into account under 
clause (ii) whether the failure of an em-
ployer or pooled plan provider to provide 
any disclosures or other information, or to 
take any other action, necessary to admin-
ister a plan or to allow a plan to meet re-
quirements 
described 
in 
subparagraph 
(A)(i)(II) has continued over a period of 
time that demonstrates a lack of commit-
1495 
ment to compliance. The Secretary may 
waive the requirements of subclause (ii)(I) 
in appropriate circumstances if the Sec-
retary determines it is in the best interests 
of the employees of the employer referred to 
in such clause (and the beneficiaries of such 
employees) to retain the assets in the plan 
with respect to which the employer’s failure 
occurred. 
‘‘(D) GOOD FAITH COMPLIANCE WITH LAW 
BEFORE
GUIDANCE.—An employer or pooled 
plan provider shall not be treated as failing to 
meet a requirement of guidance issued by the 
Secretary under subparagraph (C) if, before the 
issuance of such guidance, the employer or pooled 
plan provider complies in good faith with a rea-
sonable interpretation of the provisions of this 
paragraph, or paragraph (43), to which such 
guidance relates. 
‘‘(E) AGGREGATION RULES.—For purposes 
of this paragraph, in determining whether a per-
son meets the requirements of this paragraph to 
be a pooled plan provider with respect to any 
plan, all persons who perform services for the 
plan and who are treated as a single employer
1496 
under subsection (b), (c), (m), or (o) of section 
414 of the Internal Revenue Code of 1986 shall 
be treated as one person.’’. 
(2) BONDING REQUIREMENTS FOR POOLED EM-
PLOYER PLANS.—The last sentence of section 412(a) 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1112(a)) is amended by inserting 
‘‘or in the case of a pooled employer plan (as defined 
in section 3(43))’’ after ‘‘section 407(d)(1))’’. 
(3) 
CONFORMING
AND
TECHNICAL
AMEND-
MENTS.—Section 3 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1002) is 
amended— 
(A) in paragraph (16)(B)— 
(i) by striking ‘‘or’’ at the end of clause 
(ii); and 
(ii) by striking the period at the end 
and inserting ‘‘, or (iv) in the case of a 
pooled employer plan, the pooled plan pro-
vider.’’; and 
(B) by striking the second paragraph (41). 
(d) POOLED EMPLOYER AND MULTIPLE EMPLOYER 
PLAN REPORTING.—
1497 
(1) ADDITIONAL INFORMATION.—Section 103 of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1023) is amended— 
(A) in subsection (a)(1)(B), by striking 
‘‘applicable subsections (d), (e), and (f)’’ and in-
serting ‘‘applicable subsections (d), (e), (f), and 
(g)’’; and 
(B) by amending subsection (g) to read as 
follows: 
‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO 
POOLED EMPLOYER AND MULTIPLE EMPLOYER PLANS.— 
An annual report under this section for a plan year shall 
include— 
‘‘(1) with respect to any plan to which section 
210(a) applies (including a pooled employer plan), a 
list of employers in the plan and a good faith esti-
mate of the percentage of total contributions made by 
such employers during the plan year and the aggre-
gate account balances attributable to each employer in 
the plan (determined as the sum of the account bal-
ances of the employees of such employer (and the 
beneficiaries of such employees)); and 
‘‘(2) with respect to a pooled employer plan, the 
identifying information for the person designated
1498 
under the terms of the plan as the pooled plan pro-
vider.’’. 
(2) SIMPLIFIED
ANNUAL
REPORTS.—Section 
104(a) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1024(a)) is amended by strik-
ing paragraph (2)(A) and inserting the following: 
‘‘(2)(A) With respect to annual reports required to be 
filed with the Secretary under this part, the Secretary may 
by regulation prescribe simplified annual reports for any 
pension plan that— 
‘‘(i) covers fewer than 100 participants; or 
‘‘(ii) is a plan described in section 210(a) that 
covers fewer than 1,000 participants, but only if no 
single employer in the plan has 100 or more partici-
pants covered by the plan.’’. 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply to plan years beginning after 
December 31, 2020. 
(2) RULE OF CONSTRUCTION.—Nothing in the 
amendments made by subsection (a) shall be con-
strued as limiting the authority of the Secretary of 
the Treasury or the Secretary’s delegate (determined 
without regard to such amendment) to provide for the 
proper treatment of a failure to meet any requirement
1499 
applicable under the Internal Revenue Code of 1986 
with respect to one employer (and its employees) in 
a multiple employer plan. 
SEC. 102. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC 
ENROLLMENT SAFE HARBOR AFTER 1ST PLAN 
YEAR. 
(a) IN GENERAL.—Section 401(k)(13)(C)(iii) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘does 
not exceed 10 percent’’ and inserting ‘‘does not exceed 15 
percent (10 percent during the period described in subclause 
(I))’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2019. 
SEC. 103. RULES RELATING TO ELECTION OF SAFE HARBOR 
401(k) STATUS. 
(a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE TO 
MATCHING CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
401(k)(12) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘if such arrangement’’ and all 
that follows and inserting ‘‘if such arrangement— 
‘‘(i) meets the contribution require-
ments of subparagraph (B) and the notice 
requirements of subparagraph (D), or
1500 
‘‘(ii) meets the contribution require-
ments of subparagraph (C).’’. 
(2) 
AUTOMATIC
CONTRIBUTION
ARRANGE-
MENTS.—Subparagraph (B) of section 401(k)(13) of 
such Code is amended by striking ‘‘means’’ and all 
that follows and inserting ‘‘means a cash or deferred 
arrangement— 
‘‘(i) which is described in subpara-
graph (D)(i)(I) and meets the applicable re-
quirements of subparagraphs (C) through 
(E), or 
‘‘(ii) which is described in subpara-
graph (D)(i)(II) and meets the applicable 
requirements of subparagraphs (C) and 
(D).’’. 
(b) 
NONELECTIVE
CONTRIBUTIONS.—Section 
401(k)(12) of the Internal Revenue Code of 1986 is amended 
by redesignating subparagraph (F) as subparagraph (G), 
and by inserting after subparagraph (E) the following new 
subparagraph: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR EM-
PLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a plan may be amended after
1501 
the beginning of a plan year to provide that 
the requirements of subparagraph (C) shall 
apply to the arrangement for the plan year, 
but only if the amendment is adopted— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION
WHERE
PLAN
PRO-
VIDED
FOR
MATCHING
CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the 
plan year that the requirements of subpara-
graph (B) or paragraph (13)(D)(i)(I) ap-
plied to the plan year. 
‘‘(iii) 4-PERCENT
CONTRIBUTION
RE-
QUIREMENT.—Clause (i)(II) shall not apply 
to an arrangement unless the amount of the 
contributions described in subparagraph (C) 
which the employer is required to make 
under the arrangement for the plan year 
with respect to any employee is an amount
1502 
equal to at least 4 percent of the employee’s 
compensation.’’. 
(c) AUTOMATIC
CONTRIBUTION
ARRANGEMENTS.— 
Section 401(k)(13) of the Internal Revenue Code of 1986 
is amended by adding at the end the following: 
‘‘(F) TIMING OF PLAN AMENDMENT FOR EM-
PLOYER
MAKING
NONELECTIVE
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a plan may be amended after 
the beginning of a plan year to provide that 
the requirements of subparagraph (D)(i)(II) 
shall apply to the arrangement for the plan 
year, but only if the amendment is adopt-
ed— 
‘‘(I) at any time before the 30th 
day before the close of the plan year, or 
‘‘(II) at any time before the last 
day under paragraph (8)(A) for dis-
tributing excess contributions for the 
plan year. 
‘‘(ii) EXCEPTION
WHERE
PLAN
PRO-
VIDED
FOR
MATCHING
CONTRIBUTIONS.— 
Clause (i) shall not apply to any plan year 
if the plan provided at any time during the
1503 
plan year that the requirements of subpara-
graph (D)(i)(I) or paragraph (12)(B) ap-
plied to the plan year. 
‘‘(iii) 4-PERCENT
CONTRIBUTION
RE-
QUIREMENT.—Clause (i)(II) shall not apply 
to an arrangement unless the amount of the 
contributions described in subparagraph 
(D)(i)(II) which the employer is required to 
make under the arrangement for the plan 
year with respect to any employee is an 
amount equal to at least 4 percent of the 
employee’s compensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2019. 
SEC. 104. INCREASE IN CREDIT LIMITATION FOR SMALL EM-
PLOYER PENSION PLAN STARTUP COSTS. 
(a) IN GENERAL.—Paragraph (1) of section 45E(b) of 
the Internal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(1) for the first credit year and each of the 2 
taxable years immediately following the first credit 
year, the greater of— 
‘‘(A) $500, or 
‘‘(B) the lesser of—
1504 
‘‘(i) $250 for each employee of the eli-
gible employer who is not a highly com-
pensated employee (as defined in section 
414(q)) and who is eligible to participate in 
the eligible employer plan maintained by 
the eligible employer, or 
‘‘(ii) $5,000, and’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 105. SMALL EMPLOYER AUTOMATIC ENROLLMENT 
CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of subchapter 
A of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section: 
‘‘SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT 
SAVINGS OPTIONS PROVIDED BY SMALL EM-
PLOYERS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in the 
case of an eligible employer, the retirement auto-enrollment 
credit determined under this section for any taxable year 
is an amount equal to— 
‘‘(1) $500 for any taxable year occurring during 
the credit period, and 
‘‘(2) zero for any other taxable year.
1505 
‘‘(b) CREDIT PERIOD.—For purposes of subsection 
(a)— 
‘‘(1) IN GENERAL.—The credit period with re-
spect to any eligible employer is the 3-taxable-year 
period beginning with the first taxable year for which 
the employer includes an eligible automatic contribu-
tion arrangement (as defined in section 414(w)(3)) in 
a qualified employer plan (as defined in section 
4972(d)) sponsored by the employer. 
‘‘(2) MAINTENANCE OF ARRANGEMENT.—No tax-
able year with respect to an employer shall be treated 
as occurring within the credit period unless the ar-
rangement described in paragraph (1) is included in 
the plan for such year. 
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this sec-
tion, the term ‘eligible employer’ has the meaning given 
such term in section 408(p)(2)(C)(i).’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘plus’’ at the 
end of paragraph (31), by striking the period at the end 
of paragraph (32) and inserting ‘‘, plus’’, and by adding 
at the end the following new paragraph:
1506 
‘‘(33) in the case of an eligible employer (as de-
fined in section 45T(c)), the retirement auto-enroll-
ment credit determined under section 45T(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
subpart D of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting 
after the item relating to section 45S the following new 
item: 
‘‘Sec. 45T. Auto-enrollment option for retirement savings options provided by 
small employers.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 106. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 
AND STIPEND PAYMENTS TREATED AS COM-
PENSATION FOR IRA PURPOSES. 
(a) IN GENERAL.—Paragraph (1) of section 219(f) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: ‘‘The term ‘compensation’ shall in-
clude any amount which is included in the individual’s 
gross income and paid to the individual to aid the indi-
vidual in the pursuit of graduate or postdoctoral study.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019.
1507 
SEC. 107. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
CONTRIBUTIONS. 
(a) IN GENERAL.—Paragraph (1) of section 219(d) of 
the Internal Revenue Code of 1986 is repealed. 
(b) COORDINATION WITH QUALIFIED CHARITABLE 
DISTRIBUTIONS.—Add at the end of section 408(d)(8)(A) 
of such Code the following: ‘‘The amount of distributions 
not includible in gross income by reason of the preceding 
sentence for a taxable year (determined without regard to 
this sentence) shall be reduced (but not below zero) by an 
amount equal to the excess of— 
‘‘(i) the aggregate amount of deduc-
tions allowed to the taxpayer under section 
219 for all taxable years ending on or after 
the date the taxpayer attains age 701⁄2, over 
‘‘(ii) the aggregate amount of reduc-
tions under this sentence for all taxable 
years preceding the current taxable year.’’. 
(c) CONFORMING AMENDMENT.—Subsection (c) of sec-
tion 408A of the Internal Revenue Code of 1986 is amended 
by striking paragraph (4) and by redesignating paragraphs 
(5), (6), and (7) as paragraphs (4), (5), and (6), respec-
tively. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
1508 
apply to contributions made for taxable years begin-
ning after December 31, 2019. 
(2) SUBSECTION (b).—The amendment made by 
subsection (b) shall apply to distributions made for 
taxable years beginning after December 31, 2019. 
SEC. 108. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 
MAKING LOANS THROUGH CREDIT CARDS 
AND OTHER SIMILAR ARRANGEMENTS. 
(a) IN GENERAL.—Paragraph (2) of section 72(p) of 
the Internal Revenue Code of 1986 is amended by redesig-
nating subparagraph (D) as subparagraph (E) and by in-
serting after subparagraph (C) the following new subpara-
graph: 
‘‘(D) PROHIBITION
OF
LOANS
THROUGH 
CREDIT CARDS AND OTHER SIMILAR ARRANGE-
MENTS.—Subparagraph (A) shall not apply to 
any loan which is made through the use of any 
credit card or any other similar arrangement.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to loans made after the date of the 
enactment of this Act. 
SEC. 109. PORTABILITY OF LIFETIME INCOME OPTIONS. 
(a) IN GENERAL.—Subsection (a) of section 401 of the 
Internal Revenue Code of 1986 is amended by inserting 
after paragraph (37) the following new paragraph:
1510 
designed to provide an employee with elec-
tion rights— 
‘‘(I) which are not uniformly 
available with respect to other invest-
ment options under the plan, and 
‘‘(II) which are to a lifetime in-
come feature available through a con-
tract or other arrangement offered 
under the plan (or under another eligi-
ble retirement plan (as so defined), if 
paid by means of a direct trustee-to- 
trustee transfer described in paragraph 
(31)(A) to such other eligible retire-
ment plan), 
‘‘(iii) the term ‘lifetime income feature’ 
means— 
‘‘(I) a feature which guarantees a 
minimum level of income annually (or 
more frequently) for at least the re-
mainder of the life of the employee or 
the joint lives of the employee and the 
employee’s designated beneficiary, or 
‘‘(II) an annuity payable on be-
half of the employee under which pay-
ments are made in substantially equal
1511 
periodic payments (not less frequently 
than annually) over the life of the em-
ployee or the joint lives of the employee 
and the employee’s designated bene-
ficiary, and 
‘‘(iv) the term ‘qualified plan distribu-
tion annuity contract’ means an annuity 
contract purchased for a participant and 
distributed to the participant by a plan or 
contract described in subparagraph (B) of 
section 402(c)(8) (without regard to clauses 
(i) and (ii) thereof).’’. 
(b) CASH OR DEFERRED ARRANGEMENT.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
401(k)(2)(B) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of subclause 
(IV), by striking ‘‘and’’ at the end of subclause (V) 
and inserting ‘‘or’’, and by adding at the end the fol-
lowing new subclause: 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect to 
amounts invested in a lifetime income 
investment (as defined in subsection 
(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
1512 
time income investment may no longer 
be held as an investment option under 
the arrangement, and’’. 
(2) 
DISTRIBUTION
REQUIREMENT.—Subpara-
graph (B) of section 401(k)(2) of such Code, as 
amended by paragraph (1), is amended by striking 
‘‘and’’ at the end of clause (i), by striking the semi-
colon at the end of clause (ii) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(iii) except as may be otherwise pro-
vided by regulations, in the case of amounts 
described in clause (i)(VI), will be distrib-
uted only in the form of a qualified dis-
tribution 
(as 
defined 
in 
subsection 
(a)(38)(B)(i)) or a qualified plan distribu-
tion annuity contract (as defined in sub-
section (a)(38)(B)(iv)),’’. 
(c) SECTION 403(b) PLANS.— 
(1) ANNUITY
CONTRACTS.—Paragraph (11) of 
section 403(b) of the Internal Revenue Code of 1986 
is amended by striking ‘‘or’’ at the end of subpara-
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, or’’, and by inserting 
after subparagraph (C) the following new subpara-
graph:
1513 
‘‘(D) except as may be otherwise provided 
by regulations, with respect to amounts invested 
in a lifetime income investment (as defined in 
section 401(a)(38)(B)(ii))— 
‘‘(i) on or after the date that is 90 
days prior to the date that such lifetime in-
come investment may no longer be held as 
an investment option under the contract, 
and 
‘‘(ii) in the form of a qualified dis-
tribution 
(as 
defined 
in 
section 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(2) CUSTODIAL ACCOUNTS.—Subparagraph (A) 
of section 403(b)(7) of such Code is amended by strik-
ing ‘‘if—’’ and all that follows and inserting ‘‘if the 
amounts are to be invested in regulated investment 
company stock to be held in that custodial account, 
and under the custodial account— 
‘‘(i) no such amounts may be paid or 
made available to any distributee (unless 
such amount is a distribution to which sec-
tion 72(t)(2)(G) applies) before— 
‘‘(I) the employee dies,
1514 
‘‘(II) the employee attains age 
591⁄2, 
‘‘(III) the employee has a sever-
ance from employment, 
‘‘(IV) the employee becomes dis-
abled (within the meaning of section 
72(m)(7)), 
‘‘(V) in the case of contributions 
made pursuant to a salary reduction 
agreement (within the meaning of sec-
tion 3121(a)(5)(D)), the employee en-
counters financial hardship, or 
‘‘(VI) except as may be otherwise 
provided by regulations, with respect to 
amounts invested in a lifetime income 
investment (as defined in section 
401(a)(38)(B)(ii)), the date that is 90 
days prior to the date that such life-
time income investment may no longer 
be held as an investment option under 
the contract, and 
‘‘(ii) in the case of amounts described 
in clause (i)(VI), such amounts will be dis-
tributed only in the form of a qualified dis-
tribution 
(as 
defined 
in 
section
1515 
401(a)(38)(B)(i)) or a qualified plan dis-
tribution annuity contract (as defined in 
section 401(a)(38)(B)(iv)).’’. 
(d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
457(d)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of clause (ii), by 
inserting ‘‘or’’ at the end of clause (iii), and by add-
ing after clause (iii) the following: 
‘‘(iv) except as may be otherwise pro-
vided by regulations, in the case of a plan 
maintained by an employer described in 
subsection 
(e)(1)(A), 
with 
respect 
to 
amounts invested in a lifetime income in-
vestment 
(as 
defined 
in 
section 
401(a)(38)(B)(ii)), the date that is 90 days 
prior to the date that such lifetime income 
investment may no longer be held as an in-
vestment option under the plan,’’. 
(2) DISTRIBUTION
REQUIREMENT.—Paragraph 
(1) of section 457(d) of such Code is amended by 
striking ‘‘and’’ at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) 
and inserting ‘‘, and’’, and by inserting after sub-
paragraph (C) the following new subparagraph:
1516 
‘‘(D) except as may be otherwise provided 
by regulations, in the case of amounts described 
in subparagraph (A)(iv), such amounts will be 
distributed only in the form of a qualified dis-
tribution (as defined in section 401(a)(38)(B)(i)) 
or a qualified plan distribution annuity contract 
(as defined in section 401(a)(38)(B)(iv)).’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2019. 
SEC. 110. TREATMENT OF CUSTODIAL ACCOUNTS ON TER-
MINATION OF SECTION 403(b) PLANS. 
Not later than six months after the date of enactment 
of this Act, the Secretary of the Treasury shall issue guid-
ance to provide that, if an employer terminates the plan 
under which amounts are contributed to a custodial account 
under subparagraph (A) of section 403(b)(7), the plan ad-
ministrator or custodian may distribute an individual cus-
todial account in kind to a participant or beneficiary of 
the plan and the distributed custodial account shall be 
maintained by the custodian on a tax-deferred basis as a 
section 403(b)(7) custodial account, similar to the treatment 
of fully-paid individual annuity contracts under Revenue 
Ruling 2011–7, until amounts are actually paid to the par-
ticipant or beneficiary. The guidance shall provide further
1517 
(i) that the section 403(b)(7) status of the distributed custo-
dial account is generally maintained if the custodial ac-
count thereafter adheres to the requirements of section 
403(b) that are in effect at the time of the distribution of 
the account and (ii) that a custodial account would not be 
considered distributed to the participant or beneficiary if 
the employer has any material retained rights under the 
account (but the employer would not be treated as retaining 
material rights simply because the custodial account was 
originally opened under a group contract). Such guidance 
shall be retroactively effective for taxable years beginning 
after December 31, 2008. 
SEC. 111. CLARIFICATION OF RETIREMENT INCOME AC-
COUNT RULES RELATING TO CHURCH-CON-
TROLLED ORGANIZATIONS. 
(a) IN
GENERAL.—Subparagraph (B) of section 
403(b)(9) of the Internal Revenue Code of 1986 is amended 
by inserting ‘‘(including an employee described in section 
414(e)(3)(B))’’ after ‘‘employee described in paragraph 
(1)’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to years beginning before, on, or after 
the date of the enactment of this Act.
1518 
SEC. 112. QUALIFIED CASH OR DEFERRED ARRANGEMENTS 
MUST ALLOW LONG-TERM EMPLOYEES WORK-
ING MORE THAN 500 BUT LESS THAN 1,000 
HOURS PER YEAR TO PARTICIPATE. 
(a) PARTICIPATION REQUIREMENT.— 
(1) IN GENERAL.—Section 401(k)(2)(D) of the 
Internal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(D) which does not require, as a condition 
of participation in the arrangement, that an em-
ployee complete a period of service with the em-
ployer (or employers) maintaining the plan ex-
tending beyond the close of the earlier of— 
‘‘(i) the period permitted under section 
410(a)(1) (determined without regard to 
subparagraph (B)(i) thereof), or 
‘‘(ii) subject to the provisions of para-
graph (15), the first period of 3 consecutive 
12-month periods during each of which the 
employee has at least 500 hours of service.’’. 
(2) SPECIAL
RULES.—Section 401(k) of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(15) SPECIAL RULES FOR PARTICIPATION RE-
QUIREMENT FOR LONG-TERM, PART-TIME WORKERS.— 
For purposes of paragraph (2)(D)(ii)—
1519 
‘‘(A) AGE REQUIREMENT MUST BE MET.— 
Paragraph (2)(D)(ii) shall not apply to an em-
ployee unless the employee has met the require-
ment of section 410(a)(1)(A)(i) by the close of the 
last of the 12-month periods described in such 
paragraph. 
‘‘(B) NONDISCRIMINATION AND TOP-HEAVY 
RULES NOT TO APPLY.— 
‘‘(i) NONDISCRIMINATION
RULES.—In 
the case of employees who are eligible to 
participate in the arrangement solely by 
reason of paragraph (2)(D)(ii)— 
‘‘(I) notwithstanding subsection 
(a)(4), an employer shall not be re-
quired to make nonelective or matching 
contributions on behalf of such employ-
ees even if such contributions are made 
on behalf of other employees eligible to 
participate in the arrangement, and 
‘‘(II) an employer may elect to ex-
clude such employees from the applica-
tion of subsection (a)(4), paragraphs 
(3), (12), and (13), subsection (m)(2), 
and section 410(b).
1520 
‘‘(ii) TOP-HEAVY
RULES.—An em-
ployer may elect to exclude all employees 
who are eligible to participate in a plan 
maintained by the employer solely by rea-
son of paragraph (2)(D)(ii) from the appli-
cation of the vesting and benefit require-
ments under subsections (b) and (c) of sec-
tion 416. 
‘‘(iii) VESTING.—For purposes of de-
termining whether an employee described in 
clause (i) has a nonforfeitable right to em-
ployer contributions (other than contribu-
tions described in paragraph (3)(D)(i)) 
under the arrangement, each 12-month pe-
riod for which the employee has at least 500 
hours of service shall be treated as a year of 
service, and section 411(a)(6) shall be ap-
plied by substituting ‘at least 500 hours of 
service’ for ‘more than 500 hours of service’ 
in subparagraph (A) thereof. 
‘‘(iv) EMPLOYEES WHO BECOME FULL- 
TIME
EMPLOYEES.—This 
subparagraph 
(other than clause (iii)) shall cease to apply 
to any employee as of the first plan year be-
ginning after the plan year in which the
1521 
employee meets the requirements of section 
410(a)(1)(A)(ii) without regard to para-
graph (2)(D)(ii). 
‘‘(C) EXCEPTION
FOR
EMPLOYEES
UNDER 
COLLECTIVELY BARGAINED PLANS, ETC.—Para-
graph (2)(D)(ii) shall not apply to employees de-
scribed in section 410(b)(3). 
‘‘(D) SPECIAL RULES.— 
‘‘(i) TIME
OF
PARTICIPATION.—The 
rules of section 410(a)(4) shall apply to an 
employee eligible to participate in an ar-
rangement solely by reason of paragraph 
(2)(D)(ii). 
‘‘(ii) 12-MONTH
PERIODS.—12-month 
periods shall be determined in the same 
manner as under the last sentence of section 
410(a)(3)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 
2020, 
except 
that, 
for 
purposes 
of 
section 
401(k)(2)(D)(ii) of the Internal Revenue Code of 1986 (as 
added by such amendments), 12-month periods beginning 
before January 1, 2021, shall not be taken into account.
1522 
SEC. 113. PENALTY-FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR INDIVIDUALS IN CASE OF 
BIRTH OF CHILD OR ADOPTION. 
(a) IN GENERAL.—Section 72(t)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(H) DISTRIBUTIONS
FROM
RETIREMENT 
PLANS IN CASE OF BIRTH OF CHILD OR ADOP-
TION.— 
‘‘(i) IN GENERAL.—Any qualified birth 
or adoption distribution. 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount which may be treated as qualified 
birth or adoption distributions by any indi-
vidual with respect to any birth or adoption 
shall not exceed $5,000. 
‘‘(iii) QUALIFIED BIRTH OR ADOPTION 
DISTRIBUTION.—For purposes of this sub-
paragraph— 
‘‘(I) 
IN
GENERAL.—The 
term 
‘qualified birth or adoption distribu-
tion’ means any distribution from an 
applicable eligible retirement plan to 
an individual if made during the 1- 
year period beginning on the date on 
which a child of the individual is born
1523 
or on which the legal adoption by the 
individual of an eligible adoptee is fi-
nalized. 
‘‘(II) ELIGIBLE
ADOPTEE.—The 
term ‘eligible adoptee’ means any indi-
vidual (other than a child of the tax-
payer’s spouse) who has not attained 
age 18 or is physically or mentally in-
capable of self-support. 
‘‘(iv) TREATMENT OF PLAN DISTRIBU-
TIONS.— 
‘‘(I) IN GENERAL.—If a distribu-
tion to an individual would (without 
regard to clause (ii)) be a qualified 
birth or adoption distribution, a plan 
shall not be treated as failing to meet 
any requirement of this title merely be-
cause the plan treats the distribution 
as a qualified birth or adoption dis-
tribution, unless the aggregate amount 
of such distributions from all plans 
maintained by the employer (and any 
member of any controlled group which 
includes the employer) to such indi-
vidual exceeds $5,000.
1524 
‘‘(II) CONTROLLED
GROUP.—For 
purposes of subclause (I), the term 
‘controlled group’ means any group 
treated as a single employer under sub-
section (b), (c), (m), or (o) of section 
414. 
‘‘(v) AMOUNT
DISTRIBUTED
MAY
BE 
REPAID.— 
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a qualified birth or 
adoption distribution may make one or 
more contributions in an aggregate 
amount not to exceed the amount of 
such distribution to an applicable eli-
gible retirement plan of which such in-
dividual is a beneficiary and to which 
a rollover contribution of such dis-
tribution could be made under section 
402(c), 403(a)(4), 403(b)(8), 408(d)(3), 
or 457(e)(16), as the case may be. 
‘‘(II) LIMITATION ON CONTRIBU-
TIONS
TO
APPLICABLE
ELIGIBLE
RE-
TIREMENT
PLANS
OTHER
THAN 
IRAS.—The aggregate amount of con-
tributions made by an individual
1525 
under subclause (I) to any applicable 
eligible retirement plan which is not 
an individual retirement plan shall 
not exceed the aggregate amount of 
qualified birth or adoption distribu-
tions which are made from such plan 
to such individual. Subclause (I) shall 
not apply to contributions to any ap-
plicable eligible retirement plan which 
is not an individual retirement plan 
unless the individual is eligible to 
make contributions (other than those 
described in subclause (I)) to such ap-
plicable eligible retirement plan. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS
OF
DISTRIBUTIONS
FROM
AP-
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAs.—If a con-
tribution is made under subclause (I) 
with respect to a qualified birth or 
adoption distribution from an applica-
ble eligible retirement plan other than 
an individual retirement plan, then 
the taxpayer shall, to the extent of the 
amount of the contribution, be treated
1526 
as having received such distribution in 
an eligible rollover distribution (as de-
fined in section 402(c)(4)) and as hav-
ing transferred the amount to the ap-
plicable eligible retirement plan in a 
direct trustee to trustee transfer within 
60 days of the distribution. 
‘‘(IV) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—If a contribution is made 
under subclause (I) with respect to a 
qualified birth or adoption distribution 
from an individual retirement plan, 
then, to the extent of the amount of the 
contribution, such distribution shall be 
treated as a distribution described in 
section 408(d)(3) and as having been 
transferred to the applicable eligible re-
tirement plan in a direct trustee to 
trustee transfer within 60 days of the 
distribution. 
‘‘(vi) 
DEFINITION
AND
SPECIAL 
RULES.—For purposes of this subpara-
graph—
1527 
‘‘(I) APPLICABLE
ELIGIBLE
RE-
TIREMENT PLAN.—The term ‘applica-
ble eligible retirement plan’ means an 
eligible retirement plan (as defined in 
section 402(c)(8)(B)) other than a de-
fined benefit plan. 
‘‘(II) EXEMPTION
OF
DISTRIBU-
TIONS
FROM
TRUSTEE
TO
TRUSTEE 
TRANSFER
AND
WITHHOLDING 
RULES.—For 
purposes 
of 
sections 
401(a)(31), 402(f), and 3405, a quali-
fied birth or adoption distribution 
shall not be treated as an eligible roll-
over distribution. 
‘‘(III) TAXPAYER MUST INCLUDE 
TIN.—A distribution shall not be treat-
ed as a qualified birth or adoption dis-
tribution with respect to any child or 
eligible adoptee unless the taxpayer in-
cludes the name, age, and TIN of such 
child or eligible adoptee on the tax-
payer’s return of tax for the taxable 
year. 
‘‘(IV) DISTRIBUTIONS
TREATED 
AS MEETING PLAN DISTRIBUTION RE-
1528 
QUIREMENTS.—Any qualified birth or 
adoption distribution shall be treated 
as meeting the requirements of sections 
401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 
403(b)(11), and 457(d)(1)(A).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after December 31, 
2019. 
SEC. 114. INCREASE IN AGE FOR REQUIRED BEGINNING 
DATE FOR MANDATORY DISTRIBUTIONS. 
(a) IN GENERAL.—Section 401(a)(9)(C)(i)(I) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘age 
701⁄2’’ and inserting ‘‘age 72’’. 
(b) SPOUSE BENEFICIARIES; SPECIAL RULE
FOR 
OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec-
tion 401(a)(9) of such Code are each amended by striking 
‘‘age 701⁄2’’ and inserting ‘‘age 72’’. 
(c) CONFORMING AMENDMENTS.—The last sentence of 
section 408(b) of such Code is amended by striking ‘‘age 
701⁄2’’ and inserting ‘‘age 72’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions required to be made 
after December 31, 2019, with respect to individuals who 
attain age 701⁄2 after such date.
1529 
SEC. 115. SPECIAL RULES FOR MINIMUM FUNDING STAND-
ARDS FOR COMMUNITY NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Section 430 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after De-
cember 31, 2017, may elect to have the alternative 
standards described in paragraph (3) apply to such 
plan, and any plan sponsored by any member of the 
same controlled group. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary. Such election, once 
made with respect to a plan year, shall apply to all 
subsequent plan years unless revoked with the consent 
of the Secretary. 
‘‘(3) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.—
1530 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third 
segment rates in effect for any month for 
purposes of this section shall be 8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the United States Treasury obli-
gation yield curve for the day that is the 
valuation date of such plan for such plan 
year. 
‘‘(iii) UNITED STATES TREASURY OBLI-
GATION YIELD CURVE.—For purposes of this 
subsection, the term ‘United States Treas-
ury obligation yield curve’ means, with re-
spect to any day, a yield curve which shall 
be prescribed by the Secretary for such day 
on interest-bearing obligations of the United 
States.
1531 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears.
1532 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained by an employer which, 
as of December 31, 2017— 
‘‘(i) publishes and distributes daily, ei-
ther electronically or in printed form, 1 or 
more community newspapers in a single 
State, 
‘‘(ii) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, 
‘‘(iii) is controlled, directly or indi-
rectly—
1533 
‘‘(I) by 1 or more persons residing 
primarily in the State in which the 
community newspaper is published, 
‘‘(II) for not less than 30 years by 
individuals who are members of the 
same family, 
‘‘(III) by a trust created or orga-
nized in the State in which the com-
munity newspaper is published, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), 
‘‘(IV) by an entity which is de-
scribed in section 501(c)(3) and exempt 
from taxation under section 501(a), 
which is organized and operated in the 
State in which the community news-
paper is published, and the primary 
purpose of which is to benefit commu-
nities in such State, or 
‘‘(V) by a combination of persons 
described in subclause (I), (III), or 
(IV), and 
‘‘(iv) does not control, directly or indi-
rectly, any newspaper in any other State.
1534 
‘‘(B) COMMUNITY
NEWSPAPER.—The term 
‘community newspaper’ means a newspaper 
which primarily serves a metropolitan statistical 
area, as determined by the Office of Management 
and Budget, with a population of not less than 
100,000. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
direct or cause the direction and management of 
such person (including the power to elect a ma-
jority of the members of the board of directors of 
such person) through the ownership of voting se-
curities. 
‘‘(5) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 as of the date of 
the enactment of this subsection.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Section 303 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1083) is 
amended by adding at the end the following new subsection: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.—
1535 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
munity newspaper plan under which no participant 
has had the participant’s accrued benefit increased 
(whether because of service or compensation) after De-
cember 31, 2017, may elect to have the alternative 
standards described in paragraph (3) apply to such 
plan, and any plan sponsored by any member of the 
same controlled group. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary of the Treasury. Such 
election, once made with respect to a plan year, shall 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury. 
‘‘(3) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third 
segment rates in effect for any month for 
purposes of this section shall be 8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes
1536 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the United States Treasury obli-
gation yield curve for the day that is the 
valuation date of such plan for such plan 
year. 
‘‘(iii) UNITED STATES TREASURY OBLI-
GATION YIELD CURVE.—For purposes of this 
subsection, the term ‘United States Treas-
ury obligation yield curve’ means, with re-
spect to any day, a yield curve which shall 
be prescribed by the Secretary of the Treas-
ury for such day on interest-bearing obliga-
tions of the United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
1537 
stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply.
1538 
‘‘(4) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained by an employer which, 
as of December 31, 2017— 
‘‘(i) publishes and distributes daily, ei-
ther electronically or in printed form— 
‘‘(I) a community newspaper, or 
‘‘(II) 1 or more community news-
papers in the same State, 
‘‘(ii) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, 
‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons residing 
primarily in the State in which the 
community newspaper is published, 
‘‘(II) for not less than 30 years by 
individuals who are members of the 
same family,
1539 
‘‘(III) by a trust created or orga-
nized in the State in which the com-
munity newspaper is published, the 
sole trustees of which are persons de-
scribed in subclause (I) or (II), 
‘‘(IV) by an entity which is de-
scribed in section 501(c)(3) of the In-
ternal Revenue Code of 1986 and ex-
empt from taxation under section 
501(a) of such Code, which is orga-
nized and operated in the State in 
which the community newspaper is 
published, and the primary purpose of 
which is to benefit communities in 
such State, or 
‘‘(V) by a combination of persons 
described in subclause (I), (III), or 
(IV), and 
‘‘(iv) does not control, directly or indi-
rectly, any newspaper in any other State. 
‘‘(B) COMMUNITY
NEWSPAPER.—The term 
‘community newspaper’ means a newspaper 
which primarily serves a metropolitan statistical 
area, as determined by the Office of Management
1540 
and Budget, with a population of not less than 
100,000. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
direct or cause the direction and management of 
such person (including the power to elect a ma-
jority of the members of the board of directors of 
such person) through the ownership of voting se-
curities. 
‘‘(5) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 of the Internal Rev-
enue Code of 1986 as of the date of the enactment of 
this subsection. 
‘‘(6) EFFECT
ON
PREMIUM
RATE
CALCULA-
TION.—Notwithstanding any other provision of law 
or any regulation issued by the Pension Benefit 
Guaranty Corporation, in the case of a plan for 
which an election is made to apply the alternative 
standards described in paragraph (3), the additional 
premium under section 4006(a)(3)(E) shall be deter-
mined as if such election had not been made.’’.
1541 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years ending after December 31, 
2017. 
SEC. 116. TREATING EXCLUDED DIFFICULTY OF CARE PAY-
MENTS 
AS 
COMPENSATION 
FOR 
DETER-
MINING RETIREMENT CONTRIBUTION LIMI-
TATIONS. 
(a) INDIVIDUAL RETIREMENT ACCOUNTS.— 
(1) IN GENERAL.—Section 408(o) of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(5) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS EXCLUDED FROM GROSS INCOME.—In the 
case of an individual who for a taxable year excludes 
from gross income under section 131 a qualified foster 
care payment which is a difficulty of care payment, 
if— 
‘‘(A) the deductible amount in effect for the 
taxable year under subsection (b), exceeds 
‘‘(B) the amount of compensation includible 
in the individual’s gross income for the taxable 
year, 
the individual may elect to increase the nondeductible 
limit under paragraph (2) for the taxable year by an
1542 
amount equal to the lesser of such excess or the 
amount so excluded.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to contributions after 
the date of the enactment of this Act. 
(b) DEFINED CONTRIBUTION PLANS.— 
(1) IN GENERAL.—Section 415(c) of such Code is 
amended by adding at the end the following new 
paragraph: 
‘‘(8) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS EXCLUDED FROM GROSS INCOME.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(B), in the case of an individual who 
for a taxable year excludes from gross income 
under section 131 a qualified foster care pay-
ment which is a difficulty of care payment, the 
participant’s compensation, or earned income, as 
the case may be, shall be increased by the 
amount so excluded. 
‘‘(B) CONTRIBUTIONS ALLOCABLE TO DIF-
FICULTY
OF
CARE
PAYMENTS
TREATED
AS 
AFTER-TAX.—Any contribution by the partici-
pant which is allowable due to such increase— 
‘‘(i) shall be treated for purposes of this 
title as investment in the contract, and
1543 
‘‘(ii) shall not cause a plan (and any 
arrangement which is part of such plan) to 
be treated as failing to meet any require-
ments of this chapter solely by reason of al-
lowing any such contributions.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to plan years beginning 
after December 31, 2015. 
TITLE II—ADMINISTRATIVE 
IMPROVEMENTS 
SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 
MAY BE TREATED AS IN EFFECT AS OF CLOSE 
OF YEAR. 
(a) IN GENERAL.—Subsection (b) of section 401 of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘RETROACTIVE CHANGES
IN 
PLAN.—A stock bonus’’ and inserting ‘‘PLAN AMEND-
MENTS.— 
‘‘(1) 
CERTAIN
RETROACTIVE
CHANGES
IN 
PLAN.—A stock bonus’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) ADOPTION OF PLAN.—If an employer adopts 
a stock bonus, pension, profit-sharing, or annuity 
plan after the close of a taxable year but before the
1544 
time prescribed by law for filing the return of the em-
ployer for the taxable year (including extensions 
thereof), the employer may elect to treat the plan as 
having been adopted as of the last day of the taxable 
year.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plans adopted for taxable years begin-
ning after December 31, 2019. 
SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF 
PLANS. 
(a) IN GENERAL.—The Secretary of the Treasury and 
the Secretary of Labor shall, in cooperation, modify the re-
turns required under section 6058 of the Internal Revenue 
Code of 1986 and the reports required by section 104 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1024) so that all members of a group of plans de-
scribed in subsection (c) may file a single aggregated an-
nual return or report satisfying the requirements of both 
such sections. 
(b) ADMINISTRATIVE REQUIREMENTS.—In developing 
the consolidated return or report under subsection (a), the 
Secretary of the Treasury and the Secretary of Labor may 
require such return or report to include any information 
regarding each plan in the group as such Secretaries deter-
mine is necessary or appropriate for the enforcement and
1545 
administration of the Internal Revenue Code of 1986 and 
the Employee Retirement Income Security Act of 1974 and 
shall require such information as will enable a participant 
in a plan to identify any aggregated return or report filed 
with respect to the plan. 
(c) PLANS DESCRIBED.—A group of plans is described 
in this subsection if all plans in the group— 
(1) are individual account plans or defined con-
tribution plans (as defined in section 3(34) of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(34)) or in section 414(i) of the Inter-
nal Revenue Code of 1986); 
(2) have— 
(A) the same trustee (as described in section 
403(a) of such Act (29 U.S.C. 1103(a))); 
(B) the same one or more named fiduciaries 
(as described in section 402(a) of such Act (29 
U.S.C. 1102(a))); 
(C) the same administrator (as defined in 
section 3(16)(A) of such Act (29 U.S.C. 
1002(16)(A))) and plan administrator (as de-
fined in section 414(g) of the Internal Revenue 
Code of 1986); and 
(D) plan years beginning on the same date; 
and
1546 
(3) provide the same investments or investment 
options to participants and beneficiaries. 
A plan not subject to title I of the Employee Retirement 
Income Security Act of 1974 shall be treated as meeting 
the requirements of paragraph (2) as part of a group of 
plans if the same person that performs each of the functions 
described in such paragraph, as applicable, for all other 
plans in such group performs each of such functions for such 
plan. 
(d) CLARIFICATION RELATING TO ELECTRONIC FILING 
OF RETURNS FOR DEFERRED COMPENSATION PLANS.— 
(1) IN GENERAL.—Section 6011(e) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(6) APPLICATION OF NUMERICAL LIMITATION TO 
RETURNS
RELATING
TO
DEFERRED
COMPENSATION 
PLANS.—For purposes of applying the numerical lim-
itation under paragraph (2)(A) to any return re-
quired under section 6058, information regarding 
each plan for which information is provided on such 
return shall be treated as a separate return.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
paragraph (1) shall apply to returns required to be 
filed with respect to plan years beginning after De-
cember 31, 2019.
1547 
(e) EFFECTIVE DATE.—The modification required by 
subsection (a) shall be implemented not later than January 
1, 2022, and shall apply to returns and reports for plan 
years beginning after December 31, 2021. 
SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME. 
(a) IN
GENERAL.—Subparagraph (B) of section 
105(a)(2) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1025(a)(2)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking ‘‘diversification.’’ 
and inserting ‘‘diversification, and’’; and 
(3) by inserting at the end the following: 
‘‘(iii) the lifetime income disclosure de-
scribed in subparagraph (D)(i). 
In the case of pension benefit statements de-
scribed in clause (i) of paragraph (1)(A), a life-
time income disclosure under clause (iii) of this 
subparagraph shall be required to be included in 
only one pension benefit statement during any 
one 12-month period.’’. 
(b) LIFETIME INCOME.—Paragraph (2) of section 
105(a) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1025(a)) is amended by adding at the end 
the following new subparagraph: 
‘‘(D) LIFETIME INCOME DISCLOSURE.—
1548 
‘‘(i) IN GENERAL.— 
‘‘(I) DISCLOSURE.—A lifetime in-
come disclosure shall set forth the life-
time income stream equivalent of the 
total benefits accrued with respect to 
the participant or beneficiary. 
‘‘(II) LIFETIME INCOME STREAM 
EQUIVALENT OF THE TOTAL BENEFITS 
ACCRUED.—For purposes of this sub-
paragraph, the term ‘lifetime income 
stream equivalent of the total benefits 
accrued’ means the amount of monthly 
payments the participant or bene-
ficiary would receive if the total ac-
crued benefits of such participant or 
beneficiary were used to provide life-
time income streams described in sub-
clause (III), based on assumptions 
specified in rules prescribed by the Sec-
retary. 
‘‘(III) 
LIFETIME
INCOME 
STREAMS.—The 
lifetime 
income 
streams described in this subclause are 
a qualified joint and survivor annuity 
(as defined in section 205(d)), based on
1549 
assumptions specified in rules pre-
scribed by the Secretary, including the 
assumption that the participant or 
beneficiary has a spouse of equal age, 
and a single life annuity. Such lifetime 
income streams may have a term cer-
tain or other features to the extent per-
mitted under rules prescribed by the 
Secretary. 
‘‘(ii) MODEL DISCLOSURE.—Not later 
than 1 year after the date of the enactment 
of the Setting Every Community Up for Re-
tirement Enhancement Act of 2019, the Sec-
retary shall issue a model lifetime income 
disclosure, written in a manner so as to be 
understood by the average plan participant, 
which— 
‘‘(I) explains that the lifetime in-
come stream equivalent is only pro-
vided as an illustration; 
‘‘(II) explains that the actual 
payments under the lifetime income 
stream described in clause (i)(III) 
which may be purchased with the total 
benefits accrued will depend on numer-
1550 
ous factors and may vary substantially 
from the lifetime income stream equiv-
alent in the disclosures; 
‘‘(III) explains the assumptions 
upon which the lifetime income stream 
equivalent was determined; and 
‘‘(IV) provides such other similar 
explanations as the Secretary considers 
appropriate. 
‘‘(iii) ASSUMPTIONS AND RULES.—Not 
later than 1 year after the date of the enact-
ment of the Setting Every Community Up 
for Retirement Enhancement Act of 2019, 
the Secretary shall— 
‘‘(I) prescribe assumptions which 
administrators of individual account 
plans may use in converting total ac-
crued benefits into lifetime income 
stream equivalents for purposes of this 
subparagraph; and 
‘‘(II) issue interim final rules 
under clause (i). 
In prescribing assumptions under subclause 
(I), the Secretary may prescribe a single set 
of specific assumptions (in which case the
1551 
Secretary may issue tables or factors which 
facilitate such conversions), or ranges of 
permissible assumptions. To the extent that 
an accrued benefit is or may be invested in 
a lifetime income stream described in clause 
(i)(III), the assumptions prescribed under 
subclause (I) shall, to the extent appro-
priate, permit administrators of individual 
account plans to use the amounts payable 
under such lifetime income stream as a life-
time income stream equivalent. 
‘‘(iv) LIMITATION
ON
LIABILITY.—No 
plan fiduciary, plan sponsor, or other per-
son shall have any liability under this title 
solely by reason of the provision of lifetime 
income stream equivalents which are de-
rived in accordance with the assumptions 
and rules described in clause (iii) and 
which include the explanations contained in 
the model lifetime income disclosure de-
scribed in clause (ii). This clause shall 
apply without regard to whether the provi-
sion of such lifetime income stream equiva-
lent is required by subparagraph (B)(iii).
1552 
‘‘(v) EFFECTIVE
DATE.—The require-
ment in subparagraph (B)(iii) shall apply 
to pension benefit statements furnished more 
than 12 months after the latest of the 
issuance by the Secretary of— 
‘‘(I) interim final rules under 
clause (i); 
‘‘(II) the model disclosure under 
clause (ii); or 
‘‘(III) 
the 
assumptions 
under 
clause (iii).’’. 
SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF 
LIFETIME INCOME PROVIDER. 
Section 404 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1104) is amended by adding 
at the end the following: 
‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 
‘‘(1) IN GENERAL.—With respect to the selection 
of an insurer for a guaranteed retirement income con-
tract, the requirements of subsection (a)(1)(B) will be 
deemed to be satisfied if a fiduciary— 
‘‘(A) engages in an objective, thorough, and 
analytical search for the purpose of identifying 
insurers from which to purchase such contracts;
1553 
‘‘(B) with respect to each insurer identified 
under subparagraph (A)— 
‘‘(i) considers the financial capability 
of such insurer to satisfy its obligations 
under the guaranteed retirement income 
contract; and 
‘‘(ii) considers the cost (including fees 
and commissions) of the guaranteed retire-
ment income contract offered by the insurer 
in relation to the benefits and product fea-
tures of the contract and administrative 
services to be provided under such contract; 
and 
‘‘(C) on the basis of such consideration, con-
cludes that— 
‘‘(i) at the time of the selection, the in-
surer is financially capable of satisfying its 
obligations under the guaranteed retirement 
income contract; and 
‘‘(ii) the relative cost of the selected 
guaranteed retirement income contract as 
described in subparagraph (B)(ii) is reason-
able.
1554 
‘‘(2) FINANCIAL CAPABILITY OF THE INSURER.— 
A fiduciary will be deemed to satisfy the requirements 
of paragraphs (1)(B)(i) and (1)(C)(i) if— 
‘‘(A) the fiduciary obtains written represen-
tations from the insurer that— 
‘‘(i) the insurer is licensed to offer 
guaranteed retirement income contracts; 
‘‘(ii) the insurer, at the time of selec-
tion and for each of the immediately pre-
ceding 7 plan years— 
‘‘(I) operates under a certificate of 
authority from the insurance commis-
sioner of its domiciliary State which 
has not been revoked or suspended; 
‘‘(II) has filed audited financial 
statements in accordance with the laws 
of its domiciliary State under applica-
ble statutory accounting principles; 
‘‘(III) maintains (and has main-
tained) reserves which satisfies all the 
statutory requirements of all States 
where the insurer does business; and 
‘‘(IV) is not operating under an 
order of supervision, rehabilitation, or 
liquidation;
1555 
‘‘(iii) the insurer undergoes, at least 
every 5 years, a financial examination 
(within the meaning of the law of its domi-
ciliary State) by the insurance commis-
sioner of the domiciliary State (or rep-
resentative, designee, or other party ap-
proved by such commissioner); and 
‘‘(iv) the insurer will notify the fidu-
ciary of any change in circumstances occur-
ring after the provision of the representa-
tions in clauses (i), (ii), and (iii) which 
would preclude the insurer from making 
such representations at the time of issuance 
of the guaranteed retirement income con-
tract; and 
‘‘(B) after receiving such representations 
and as of the time of selection, the fiduciary has 
not received any notice described in subpara-
graph (A)(iv) and is in possession of no other in-
formation which would cause the fiduciary to 
question the representations provided. 
‘‘(3) NO
REQUIREMENT
TO
SELECT
LOWEST 
COST.—Nothing in this subsection shall be construed 
to require a fiduciary to select the lowest cost con-
tract. A fiduciary may consider the value of a con-
1557 
‘‘(B) PERIODIC REVIEW.—A fiduciary will 
be deemed to have conducted the periodic review 
described in subparagraph (A)(ii) if the fidu-
ciary obtains the written representations de-
scribed in clauses (i), (ii), and (iii) of paragraph 
(2)(A) from the insurer on an annual basis, un-
less the fiduciary receives any notice described in 
paragraph (2)(A)(iv) or otherwise becomes aware 
of facts that would cause the fiduciary to ques-
tion such representations. 
‘‘(5) LIMITED
LIABILITY.—A fiduciary which 
satisfies the requirements of this subsection shall not 
be liable following the distribution of any benefit, or 
the investment by or on behalf of a participant or 
beneficiary pursuant to the selected guaranteed retire-
ment income contract, for any losses that may result 
to the participant or beneficiary due to an insurer’s 
inability to satisfy its financial obligations under the 
terms of such contract. 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) INSURER.—The term ‘insurer’ means 
an insurance company, insurance service, or in-
surance organization, including affiliates of such 
companies.
1558 
‘‘(B) GUARANTEED
RETIREMENT
INCOME 
CONTRACT.—The term ‘guaranteed retirement in-
come contract’ means an annuity contract for a 
fixed term or a contract (or provision or feature 
thereof) which provides guaranteed benefits an-
nually (or more frequently) for at least the re-
mainder of the life of the participant or the joint 
lives of the participant and the participant’s 
designated beneficiary as part of an individual 
account plan.’’. 
SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES 
TO PROTECT OLDER, LONGER SERVICE PAR-
TICIPANTS. 
(a) IN GENERAL.—Section 401 of the Internal Revenue 
Code of 1986 is amended— 
(1) by redesignating subsection (o) as subsection 
(p); and 
(2) by inserting after subsection (n) the following 
new subsection: 
‘‘(o) SPECIAL RULES FOR APPLYING NONDISCRIMINA-
TION RULES TO PROTECT OLDER, LONGER SERVICE AND 
GRANDFATHERED PARTICIPANTS.— 
‘‘(1) TESTING OF DEFINED BENEFIT PLANS WITH 
CLOSED CLASSES OF PARTICIPANTS.—
1559 
‘‘(A) BENEFITS, RIGHTS, OR
FEATURES 
PROVIDED TO CLOSED CLASSES.—A defined ben-
efit plan which provides benefits, rights, or fea-
tures to a closed class of participants shall not 
fail to satisfy the requirements of subsection 
(a)(4) by reason of the composition of such closed 
class or the benefits, rights, or features provided 
to such closed class, if— 
‘‘(i) for the plan year as of which the 
class closes and the 2 succeeding plan years, 
such benefits, rights, and features satisfy the 
requirements of subsection (a)(4) (without 
regard to this subparagraph but taking into 
account the rules of subparagraph (I)), 
‘‘(ii) after the date as of which the 
class was closed, any plan amendment 
which modifies the closed class or the bene-
fits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iii) the class was closed before April 
5, 2017, or the plan is described in sub-
paragraph (C).
1560 
‘‘(B) AGGREGATE TESTING WITH DEFINED 
CONTRIBUTION PLANS PERMITTED ON A BENE-
FITS BASIS.— 
‘‘(i) IN GENERAL.—For purposes of de-
termining compliance with subsection (a)(4) 
and section 410(b), a defined benefit plan 
described in clause (iii) may be aggregated 
and tested on a benefits basis with 1 or 
more defined contribution plans, including 
with the portion of 1 or more defined con-
tribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contributions 
or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a tax 
credit employee stock ownership plan 
(within the meaning of section 409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—For purposes of clause
1561 
(i), if a defined benefit plan is aggregated 
with a portion of a defined contribution 
plan providing matching contributions— 
‘‘(I) such defined benefit plan 
must also be aggregated with any por-
tion of such defined contribution plan 
which provides elective deferrals de-
scribed in subparagraph (A) or (C) of 
section 402(g)(3), and 
‘‘(II) such matching contributions 
shall be treated in the same manner as 
nonelective contributions, including for 
purposes of applying the rules of sub-
section (l). 
‘‘(iii) PLANS
DESCRIBED.—A defined 
benefit plan is described in this clause if— 
‘‘(I) the plan provides benefits to 
a closed class of participants, 
‘‘(II) for the plan year as of which 
the class closes and the 2 succeeding 
plan years, the plan satisfies the re-
quirements of section 410(b) and sub-
section (a)(4) (without regard to this 
subparagraph but taking into account 
the rules of subparagraph (I)),
1562 
‘‘(III) after the date as of which 
the class was closed, any plan amend-
ment which modifies the closed class or 
the benefits provided to such closed 
class does not discriminate signifi-
cantly in favor of highly compensated 
employees, and 
‘‘(IV) the class was closed before 
April 5, 2017, or the plan is described 
in subparagraph (C). 
‘‘(C) PLANS
DESCRIBED.—A plan is de-
scribed in this subparagraph if, taking into ac-
count any predecessor plan— 
‘‘(i) such plan has been in effect for at 
least 5 years as of the date the class is 
closed, and 
‘‘(ii) during the 5-year period pre-
ceding the date the class is closed, there has 
not been a substantial increase in the cov-
erage or value of the benefits, rights, or fea-
tures described in subparagraph (A) or in 
the coverage or benefits under the plan de-
scribed in subparagraph (B)(iii) (whichever 
is applicable).
1563 
‘‘(D) DETERMINATION OF SUBSTANTIAL IN-
CREASE
FOR
BENEFITS, 
RIGHTS, 
AND
FEA-
TURES.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (A)(iii), a plan shall 
be treated as having had a substantial increase 
in coverage or value of the benefits, rights, or fea-
tures described in subparagraph (A) during the 
applicable 5-year period only if, during such pe-
riod— 
‘‘(i) the number of participants covered 
by such benefits, rights, or features on the 
date such period ends is more than 50 per-
cent greater than the number of such par-
ticipants on the first day of the plan year 
in which such period began, or 
‘‘(ii) such benefits, rights, and features 
have been modified by 1 or more plan 
amendments in such a way that, as of the 
date the class is closed, the value of such 
benefits, rights, and features to the closed 
class as a whole is substantially greater 
than the value as of the first day of such 5- 
year period, solely as a result of such 
amendments.
1564 
‘‘(E) DETERMINATION OF SUBSTANTIAL IN-
CREASE FOR AGGREGATE TESTING ON BENEFITS 
BASIS.—In applying subparagraph (C)(ii) for 
purposes of subparagraph (B)(iii)(IV), a plan 
shall be treated as having had a substantial in-
crease in coverage or benefits during the applica-
ble 5-year period only if, during such period— 
‘‘(i) the number of participants benefit-
ting under the plan on the date such period 
ends is more than 50 percent greater than 
the number of such participants on the first 
day of the plan year in which such period 
began, or 
‘‘(ii) the average benefit provided to 
such participants on the date such period 
ends is more than 50 percent greater than 
the average benefit provided on the first day 
of the plan year in which such period 
began. 
‘‘(F) 
CERTAIN
EMPLOYEES
DIS-
REGARDED.—For purposes of subparagraphs (D) 
and (E), any increase in coverage or value or in 
coverage or benefits, whichever is applicable, 
which is attributable to such coverage and value 
or coverage and benefits provided to employees—
1565 
‘‘(i) who became participants as a re-
sult of a merger, acquisition, or similar 
event which occurred during the 7-year pe-
riod preceding the date the class is closed, or 
‘‘(ii) who became participants by rea-
son of a merger of the plan with another 
plan which had been in effect for at least 5 
years as of the date of the merger, 
shall be disregarded, except that clause (ii) shall 
apply for purposes of subparagraph (D) only if, 
under the merger, the benefits, rights, or features 
under 1 plan are conformed to the benefits, 
rights, or features of the other plan prospectively. 
‘‘(G) RULES RELATING TO AVERAGE BEN-
EFIT.—For purposes of subparagraph (E)— 
‘‘(i) the average benefit provided to 
participants under the plan will be treated 
as having remained the same between the 2 
dates described in subparagraph (E)(ii) if 
the benefit formula applicable to such par-
ticipants has not changed between such 
dates, and 
‘‘(ii) if the benefit formula applicable 
to 1 or more participants under the plan 
has changed between such 2 dates, then the
1566 
average benefit under the plan shall be con-
sidered to have increased by more than 50 
percent only if— 
‘‘(I) the total amount determined 
under section 430(b)(1)(A)(i) for all 
participants benefitting under the plan 
for the plan year in which the 5-year 
period described in subparagraph (E) 
ends, exceeds 
‘‘(II) the total amount determined 
under section 430(b)(1)(A)(i) for all 
such participants for such plan year, 
by using the benefit formula in effect 
for each such participant for the first 
plan year in such 5-year period, 
by more than 50 percent. In the case of a 
CSEC plan (as defined in section 414(y)), 
the normal cost of the plan (as determined 
under section 433(j)(1)(B)) shall be used in 
lieu of the amount determined under section 
430(b)(1)(A)(i). 
‘‘(H) TREATMENT
AS
SINGLE
PLAN.—For 
purposes of subparagraphs (E) and (G), a plan 
described in section 413(c) shall be treated as a
1567 
single plan rather than as separate plans main-
tained by each employer in the plan. 
‘‘(I) SPECIAL RULES.—For purposes of sub-
paragraphs (A)(i) and (B)(iii)(II), the following 
rules shall apply: 
‘‘(i) In applying section 410(b)(6)(C), 
the closing of the class of participants shall 
not be treated as a significant change in 
coverage under section 410(b)(6)(C)(i)(II). 
‘‘(ii) 2 or more plans shall not fail to 
be eligible to be aggregated and treated as 
a single plan solely by reason of having dif-
ferent plan years. 
‘‘(iii) Changes in the employee popu-
lation shall be disregarded to the extent at-
tributable to individuals who become em-
ployees or cease to be employees, after the 
date the class is closed, by reason of a merg-
er, acquisition, divestiture, or similar event. 
‘‘(iv) Aggregation and all other testing 
methodologies otherwise applicable under 
subsection (a)(4) and section 410(b) may be 
taken into account. 
The rule of clause (ii) shall also apply for pur-
poses of determining whether plans to which sub-
1568 
paragraph (B)(i) applies may be aggregated and 
treated as 1 plan for purposes of determining 
whether such plans meet the requirements of sub-
section (a)(4) and section 410(b). 
‘‘(J) SPUN-OFF
PLANS.—For purposes of 
this paragraph, if a portion of a defined benefit 
plan described in subparagraph (A) or (B)(iii) 
is spun off to another employer and the spun-off 
plan continues to satisfy the requirements of— 
‘‘(i) 
subparagraph 
(A)(i) 
or 
(B)(iii)(II), whichever is applicable, if the 
original plan was still within the 3-year pe-
riod described in such subparagraph at the 
time of the spin off, and 
‘‘(ii) 
subparagraph 
(A)(ii) 
or 
(B)(iii)(III), whichever is applicable, 
the treatment under subparagraph (A) or (B) of 
the spun-off plan shall continue with respect to 
such other employer. 
‘‘(2) 
TESTING
OF
DEFINED
CONTRIBUTION 
PLANS.— 
‘‘(A) TESTING ON A BENEFITS BASIS.—A 
defined contribution plan shall be permitted to 
be tested on a benefits basis if—
1569 
‘‘(i) such defined contribution plan 
provides make-whole contributions to a 
closed class of participants whose accruals 
under a defined benefit plan have been re-
duced or eliminated, 
‘‘(ii) for the plan year of the defined 
contribution plan as of which the class eli-
gible to receive such make-whole contribu-
tions closes and the 2 succeeding plan years, 
such closed class of participants satisfies the 
requirements of section 410(b)(2)(A)(i) (de-
termined by applying the rules of para-
graph (1)(I)), 
‘‘(iii) after the date as of which the 
class was closed, any plan amendment to 
the defined contribution plan which modi-
fies the closed class or the allocations, bene-
fits, rights, and features provided to such 
closed class does not discriminate signifi-
cantly in favor of highly compensated em-
ployees, and 
‘‘(iv) the class was closed before April 
5, 2017, or the defined benefit plan under 
clause (i) is described in paragraph (1)(C)
1570 
(as applied for purposes of paragraph 
(1)(B)(iii)(IV)). 
‘‘(B) AGGREGATION WITH PLANS INCLUDING 
MATCHING CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—With respect to 1 
or more defined contribution plans de-
scribed in subparagraph (A), for purposes of 
determining compliance with subsection 
(a)(4) and section 410(b), the portion of 
such plans which provides make-whole con-
tributions or other nonelective contributions 
may be aggregated and tested on a benefits 
basis with the portion of 1 or more other de-
fined contribution plans which— 
‘‘(I) provides matching contribu-
tions 
(as 
defined 
in 
subsection 
(m)(4)(A)), 
‘‘(II) provides annuity contracts 
described in section 403(b) which are 
purchased with matching contributions 
or nonelective contributions, or 
‘‘(III) consists of an employee 
stock ownership plan (within the 
meaning of section 4975(e)(7)) or a tax
1571 
credit employee stock ownership plan 
(within the meaning of section 409(a)). 
‘‘(ii) SPECIAL RULES FOR MATCHING 
CONTRIBUTIONS.—Rules similar to the rules 
of paragraph (1)(B)(ii) shall apply for pur-
poses of clause (i). 
‘‘(C) SPECIAL
RULES
FOR
TESTING
DE-
FINED
CONTRIBUTION
PLAN
FEATURES
PRO-
VIDING MATCHING CONTRIBUTIONS TO CERTAIN 
OLDER, LONGER SERVICE PARTICIPANTS.—In the 
case of a defined contribution plan which pro-
vides benefits, rights, or features to a closed class 
of participants whose accruals under a defined 
benefit plan have been reduced or eliminated, the 
plan shall not fail to satisfy the requirements of 
subsection (a)(4) solely by reason of the composi-
tion of the closed class or the benefits, rights, or 
features provided to such closed class if the de-
fined contribution plan and defined benefit plan 
otherwise meet the requirements of subparagraph 
(A) but for the fact that the make-whole con-
tributions under the defined contribution plan 
are made in whole or in part through matching 
contributions.
1572 
‘‘(D) SPUN-OFF
PLANS.—For purposes of 
this paragraph, if a portion of a defined con-
tribution plan described in subparagraph (A) or 
(C) is spun off to another employer, the treat-
ment under subparagraph (A) or (C) of the 
spun-off plan shall continue with respect to the 
other employer if such plan continues to comply 
with the requirements of clauses (ii) (if the origi-
nal plan was still within the 3-year period de-
scribed in such clause at the time of the spin off) 
and (iii) of subparagraph (A), as determined for 
purposes of subparagraph (A) or (C), whichever 
is applicable. 
‘‘(3) DEFINITIONS
AND
SPECIAL
RULE.—For 
purposes of this subsection— 
‘‘(A) MAKE-WHOLE
CONTRIBUTIONS.—Ex-
cept as otherwise provided in paragraph (2)(C), 
the term ‘make-whole contributions’ means non-
elective allocations for each employee in the class 
which are reasonably calculated, in a consistent 
manner, to replace some or all of the retirement 
benefits which the employee would have received 
under the defined benefit plan and any other 
plan or qualified cash or deferred arrangement 
under subsection (k)(2) if no change had been
1573 
made to such defined benefit plan and such other 
plan or arrangement. For purposes of the pre-
ceding sentence, consistency shall not be required 
with respect to employees who were subject to dif-
ferent benefit formulas under the defined benefit 
plan. 
‘‘(B) REFERENCES
TO
CLOSED
CLASS
OF 
PARTICIPANTS.—References to a closed class of 
participants and similar references to a closed 
class shall include arrangements under which 1 
or more classes of participants are closed, except 
that 1 or more classes of participants closed on 
different dates shall not be aggregated for pur-
poses of determining the date any such class was 
closed. 
‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 
The term ‘highly compensated employee’ has the 
meaning given such term in section 414(q).’’. 
(b) PARTICIPATION REQUIREMENTS.—Paragraph (26) 
of section 401(a) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(I) PROTECTED PARTICIPANTS.—
1574 
‘‘(i) IN
GENERAL.—A plan shall be 
deemed to satisfy the requirements of sub-
paragraph (A) if— 
‘‘(I) the plan is amended— 
‘‘(aa) to cease all benefit ac-
cruals, or 
‘‘(bb) to provide future ben-
efit accruals only to a closed class 
of participants, 
‘‘(II) the plan satisfies subpara-
graph (A) (without regard to this sub-
paragraph) as of the effective date of 
the amendment, and 
‘‘(III) the amendment was adopt-
ed before April 5, 2017, or the plan is 
described in clause (ii). 
‘‘(ii) PLANS
DESCRIBED.—A plan is 
described in this clause if the plan would be 
described in subsection (o)(1)(C), as applied 
for purposes of subsection (o)(1)(B)(iii)(IV) 
and by treating the effective date of the 
amendment as the date the class was closed 
for purposes of subsection (o)(1)(C). 
‘‘(iii) SPECIAL RULES.—For purposes 
of clause (i)(II), in applying section
1575 
410(b)(6)(C), the amendments described in 
clause (i) shall not be treated as a signifi-
cant change in coverage under section 
410(b)(6)(C)(i)(II). 
‘‘(iv) SPUN-OFF PLANS.—For purposes 
of this subparagraph, if a portion of a plan 
described in clause (i) is spun off to another 
employer, the treatment under clause (i) of 
the spun-off plan shall continue with respect 
to the other employer.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
take effect on the date of the enactment of this Act, 
without regard to whether any plan modifications re-
ferred to in such amendments are adopted or effective 
before, on, or after such date of enactment. 
(2) SPECIAL RULES.— 
(A) ELECTION OF EARLIER APPLICATION.— 
At the election of the plan sponsor, the amend-
ments made by this section shall apply to plan 
years beginning after December 31, 2013. 
(B) CLOSED CLASSES OF PARTICIPANTS.— 
For 
purposes 
of 
paragraphs 
(1)(A)(iii), 
(1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o)
1576 
of the Internal Revenue Code of 1986 (as added 
by this section), a closed class of participants 
shall be treated as being closed before April 5, 
2017, if the plan sponsor’s intention to create 
such closed class is reflected in formal written 
documents and communicated to participants be-
fore such date. 
(C) 
CERTAIN
POST-ENACTMENT
PLAN 
AMENDMENTS.—A plan shall not be treated as 
failing to be eligible for the application of section 
401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 
such Code (as added by this section) to such plan 
solely because in the case of— 
(i) such section 401(o)(1)(A), the plan 
was amended before the date of the enact-
ment of this Act to eliminate 1 or more ben-
efits, rights, or features, and is further 
amended after such date of enactment to 
provide such previously eliminated benefits, 
rights, or features to a closed class of par-
ticipants, or 
(ii) such section 401(o)(1)(B)(iii) or 
section 401(a)(26), the plan was amended 
before the date of the enactment of this Act 
to cease all benefit accruals, and is further
1577 
amended after such date of enactment to 
provide benefit accruals to a closed class of 
participants. 
Any such section shall only apply if the plan 
otherwise meets the requirements of such section 
and in applying such section, the date the class 
of participants is closed shall be the effective date 
of the later amendment. 
SEC. 206. MODIFICATION OF PBGC PREMIUMS FOR CSEC 
PLANS. 
(a) FLAT RATE PREMIUM.—Subparagraph (A) of sec-
tion 4006(a)(3) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1306(a)(3)) is amended— 
(1) in clause (i), by striking ‘‘plan,’’ and insert-
ing ‘‘plan other than a CSEC plan (as defined in sec-
tion 210(f)(1))’’; 
(2) in clause (v), by striking ‘‘or’’ at the end; 
(3) in clause (vi), by striking the period at the 
end and inserting ‘‘, or’’; and 
(4) by adding at the end the following new 
clause: 
‘‘(vii) in the case of a CSEC plan (as 
defined in section 210(f)(1)), for plan years 
beginning after December 31, 2018, for each 
individual who is a participant in such
1578 
plan during the plan year an amount equal 
to the sum of— 
‘‘(I) the additional premium (if 
any) determined under subparagraph 
(E), and 
‘‘(II) $19.’’. 
(b) VARIABLE RATE PREMIUM.— 
(1) UNFUNDED VESTED BENEFITS.— 
(A) IN
GENERAL.—Subparagraph (E) of 
section 4006(a)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)) is amended by adding at the end the 
following new clause: 
‘‘(v) For purposes of clause (ii), in the case 
of a CSEC plan (as defined in section 210(f)(1)), 
the term ‘unfunded vested benefits’ means, for 
plan years beginning after December 31, 2018, 
the excess (if any) of— 
‘‘(I) the funding liability of the plan as 
determined under section 306(j)(5)(C) for 
the plan year by only taking into account 
vested benefits, over 
‘‘(II) the fair market value of plan as-
sets for the plan year which are held by the 
plan on the valuation date.’’.
1579 
(B) 
CONFORMING
AMENDMENT.—Clause 
(iii) of section 4006(a)(3)(E) of such Act (29 
U.S.C. 1306(a)(3)(E)) is amended by striking 
‘‘For purposes’’ and inserting ‘‘Except as pro-
vided in clause (v), for purposes’’. 
(2) APPLICABLE DOLLAR AMOUNT.— 
(A) IN GENERAL.—Paragraph (8) of section 
4006(a) of such Act (29 U.S.C. 1306(a)) is 
amended by adding at the end the following new 
subparagraph: 
‘‘(E) CSEC PLANS.—In the case of a CSEC 
plan (as defined in section 210(f)(1)), the appli-
cable dollar amount shall be $9.’’. 
(B) CONFORMING
AMENDMENT.—Subpara-
graph (A) of section 4006(a)(8) of such Act (29 
U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 
and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 
TITLE III—OTHER BENEFITS 
SEC. 301. BENEFITS PROVIDED TO VOLUNTEER FIRE-
FIGHTERS AND EMERGENCY MEDICAL RE-
SPONDERS. 
(a) INCREASE IN DOLLAR LIMITATION ON QUALIFIED 
PAYMENTS.—Subparagraph (B) of section 139B(c)(2) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘$30’’ and inserting ‘‘$50’’.
1580 
(b) EXTENSION.—Section 139B(d) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘beginning after 
December 31, 2010.’’ and inserting ‘‘beginning— 
‘‘(1) after December 31, 2010, and before Janu-
ary 1, 2020, or 
‘‘(2) after December 31, 2020.’’. 
(c) TECHNICAL CORRECTION.—Section 3121(a)(23) of 
such Code is amended by striking ‘‘139B(b)’’ and inserting 
‘‘section 139B(a)’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 302. EXPANSION OF SECTION 529 PLANS. 
(a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSOCI-
ATED WITH REGISTERED APPRENTICESHIP PROGRAMS.— 
Section 529(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph: 
‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSOCI-
ATED
WITH
REGISTERED
APPRENTICESHIP
PRO-
GRAMS.—Any reference in this subsection to the term 
‘qualified higher education expense’ shall include a 
reference to expenses for fees, books, supplies, and 
equipment required for the participation of a des-
ignated beneficiary in an apprenticeship program 
registered and certified with the Secretary of Labor
1581 
under section 1 of the National Apprenticeship Act 
(29 U.S.C. 50).’’. 
(b) DISTRIBUTIONS FOR QUALIFIED EDUCATION LOAN 
REPAYMENTS.— 
(1) IN GENERAL.—Section 529(c) of such Code, 
as amended by subsection (a), is amended by adding 
at the end the following new paragraph: 
‘‘(9) TREATMENT
OF
QUALIFIED
EDUCATION 
LOAN REPAYMENTS.— 
‘‘(A) IN GENERAL.—Any reference in this 
subsection to the term ‘qualified higher education 
expense’ shall include a reference to amounts 
paid as principal or interest on any qualified 
education loan (as defined in section 221(d)) of 
the designated beneficiary or a sibling of the des-
ignated beneficiary. 
‘‘(B) LIMITATION.—The amount of distribu-
tions treated as a qualified higher education ex-
pense under this paragraph with respect to the 
loans of any individual shall not exceed $10,000 
(reduced by the amount of distributions so treat-
ed for all prior taxable years). 
‘‘(C) SPECIAL RULES FOR SIBLINGS OF THE 
DESIGNATED BENEFICIARY.—
1582 
‘‘(i) 
SEPARATE
ACCOUNTING.—For 
purposes of subparagraph (B) and sub-
section (d), amounts treated as a qualified 
higher education expense with respect to the 
loans of a sibling of the designated bene-
ficiary shall be taken into account with re-
spect to such sibling and not with respect to 
such designated beneficiary. 
‘‘(ii) SIBLING DEFINED.—For purposes 
of this paragraph, the term ‘sibling’ means 
an individual who bears a relationship to 
the designated beneficiary which is de-
scribed in section 152(d)(2)(B).’’. 
(2) COORDINATION WITH DEDUCTION FOR STU-
DENT
LOAN
INTEREST.—Section 221(e)(1) of such 
Code is amended by adding at the end the following: 
‘‘The deduction otherwise allowable under subsection 
(a) (prior to the application of subsection (b)) to the 
taxpayer for any taxable year shall be reduced (but 
not below zero) by so much of the distributions treated 
as a qualified higher education expense under section 
529(c)(9) with respect to loans of the taxpayer as 
would be includible in gross income under section 
529(c)(3)(A) for such taxable year but for such treat-
ment.’’.
1583 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions made after December 31, 
2018. 
TITLE IV—REVENUE 
PROVISIONS 
SEC. 401. 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 Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new subparagraph: 
‘‘(H) SPECIAL
RULES
FOR
CERTAIN
DE-
FINED 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 sub-
stituting ‘10 years’ for ‘5 years’, and 
‘‘(II) shall apply whether or not 
distributions of the employee’s interests
1584 
have begun in accordance with sub-
paragraph (A). 
‘‘(ii) EXCEPTION FOR ELIGIBLE DES-
IGNATED
BENEFICIARIES.—Subparagraph 
(B)(iii) shall apply only in the case of an 
eligible designated beneficiary. 
‘‘(iii) RULES UPON DEATH OF ELIGI-
BLE DESIGNATED BENEFICIARY.—If an eli-
gible designated beneficiary dies before the 
portion of the employee’s interest to which 
this subparagraph applies is entirely dis-
tributed, the exception under clause (ii) 
shall not apply to any beneficiary of such 
eligible designated beneficiary and the re-
mainder of such portion shall be distributed 
within 10 years after the death of such eli-
gible designated beneficiary. 
‘‘(iv) SPECIAL RULE IN CASE OF CER-
TAIN
TRUSTS
FOR
DISABLED
OR
CHRON-
ICALLY ILL BENEFICIARIES.—In the case of 
an applicable multi-beneficiary trust, if 
under the terms of the trust— 
‘‘(I) it is to be divided imme-
diately upon the death of the employee
1585 
into separate trusts for each bene-
ficiary, or 
‘‘(II) no individual (other than a 
eligible 
designated 
beneficiary 
de-
scribed in subclause (III) or (IV) of 
subparagraph (E)(ii)) has any right to 
the employee’s interest in the plan 
until the death of all such eligible des-
ignated beneficiaries with respect to the 
trust, 
for purposes of a trust described in sub-
clause (I), clause (ii) shall be applied sepa-
rately with respect to the portion of the em-
ployee’s interest that is payable to any eli-
gible designated beneficiary described in 
subclause (III) or (IV) of subparagraph 
(E)(ii); and, for purposes of a trust de-
scribed in subclause (II), subparagraph 
(B)(iii) shall apply to the distribution of 
the employee’s interest and any beneficiary 
who is not such an eligible designated bene-
ficiary shall be treated as a beneficiary of 
the eligible designated beneficiary upon the 
death of such eligible designated beneficiary.
1586 
‘‘(v) APPLICABLE
MULTI-BENEFICIARY 
TRUST.—For purposes of this subpara-
graph, the term ‘applicable multi-bene-
ficiary trust’ means a trust— 
‘‘(I) which has more than one ben-
eficiary, 
‘‘(II) all of the beneficiaries of 
which are treated as designated bene-
ficiaries for purposes of determining 
the distribution period pursuant to 
this paragraph, and 
‘‘(III) at least one of the bene-
ficiaries of which is an eligible des-
ignated beneficiary described in sub-
clause (III) or (IV) of subparagraph 
(E)(ii). 
‘‘(vi) APPLICATION TO CERTAIN ELIGI-
BLE RETIREMENT PLANS.—For purposes of 
applying the provisions of this subpara-
graph 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
1587 
of a defined benefit plan) shall be treated as 
a defined contribution plan.’’. 
(2) DEFINITION OF ELIGIBLE DESIGNATED BENE-
FICIARY.—Section 401(a)(9)(E) of such Code is 
amended to read as follows: 
‘‘(E) DEFINITIONS
AND
RULES
RELATING 
TO DESIGNATED BENEFICIARIES.—For purposes 
of this paragraph— 
‘‘(i) DESIGNATED
BENEFICIARY.—The 
term ‘designated beneficiary’ means any in-
dividual designated as a beneficiary by the 
employee. 
‘‘(ii) ELIGIBLE
DESIGNATED
BENE-
FICIARY.—The term ‘eligible designated ben-
eficiary’ means, with respect to any em-
ployee, 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 mean-
ing of section 72(m)(7)),
1588 
‘‘(IV) a chronically ill individual 
(within 
the 
meaning 
of 
section 
7702B(c)(2), except that the require-
ments 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 indi-
vidual 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. 
The determination of whether a designated 
beneficiary is an eligible designated bene-
ficiary shall be made as of the date of death 
of the employee. 
‘‘(iii) 
SPECIAL
RULE
FOR
CHIL-
DREN.—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 major-
ity and any remainder of the portion of the