,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #chig  ,,in ,,the ,,house ,,of  
,,representatives  ,january #af1        
#bjad,mr4 ,cartwright 7for himself1 ,mr4
 ,grijalva1 ,mr4 ,higgins1 ,mr4 ,honda1 
,mr4 ,lewis1 ,ms4 ,lee of ,california1  
and ,ms4 ,schakowsky7 introduced the    
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to strengthen the rules 
for approved structured settlement      
factoring transactions4  #a4            
,modification of qualified order        
requirements for approved transactions  
7a7 ,in general ,subparagraph 7,a7 of   
section #ehia7;b77#b7 of the ,internal  
,revenue ,code of #aihf is amended by   
striking and at the end of clause 7i7   
and by adding at the end the following  
new clause3  7iii7 satisfies the        
requirements of paragraph 7#e71 and  4  
7b7 ,transaction requirements           
,subsection 7b7 of section #ehia of such
 ,code is amended by redesignating      

paragraph 7#e7 as paragraph 7#f7 and by 
inserting after paragraph 7#d7 the      
following new paragraph3  7#e7          
,transaction requirements  7,a7 ,in     
general ,a transfer of structured       
settlement payment rights shall be      
treated as satisfying the requirements  
of this paragraph only if the transfer  
meets the following requirements3 7i7   
,the annual discount rate of the        
consideration for the transfer1         
determined by taking into account       
charges1 fees1 and other expenses1 does 
not exceed the prime rate plus #e       
percentage points4  7ii7 ,the aggregate 
amount of charges1 fees1 and other      
expenses payable by the payee do not    
exceed #b percent of the value of the   
consideration to the payee 7net of such 
charges1 fees1 and other expenses74     
7iii7 ,the payee is not liable for any  
penalty1 and will not forfeit any       
amounts already paid or incurred1 if the
 transfer does not satisfy the          
requirements of this paragraph4  7iv7   

,the transferee has given written notice
 of the transferee's name1 address1 and 
taxpayer identification number to the   
annuity issuer and the structured       
settlement obligor and has filed a copy 
of such notice with the ,state court or 
responsible administrative authority    
issuing the qualified order4  7v7 ,the  
transfer is fair and reasonable4  7vi7  
,not later than #e days1 and not earlier
 than #ae days1 before the date on which
 the payee first incurs any obligations 
with respect to the transfer1 the       
transferee provides to the payee a      
disclosure statement which sets forth in
 a clear and conspicuous manner the     
following3 7,i7 ,the remaining amounts  
payable and payment dates under the     
structured settlement4  7,,ii7 ,the     
aggregate of such amounts4  7,,iii7 ,the
 discounted present value of the        
structured settlement payment rights    
determined by using a discount rate     
equal to the applicable ,federal rate1  
compounded annually4  7,,iv7 ,a         

statement of the total consideration    
made in exchange for the structured     
settlement payment rights4  7,v7 ,an    
itemized list of all charges1 fees1 and 
other expenses payable by the payee1 or 
deductible from the gross amount        
otherwise payable to the payee1 with    
respect to the transfer4  7,,vi7 ,the   
value of consideration to the payee net 
of the charges1 fees1 and other expenses
 described in subclause 7,v74  7,,vii7  
,the quotient 7expressed as a           
percentage7 of the amount of net        
consideration described in subclause    
7,,vi7 divided by the discounted present
 value of the structured settlement     
payment rights determined under         
subclause 7,,iii74  7,,viii7 ,the annual
 discount rate of the consideration for 
the transfer determined by taking into  
account charges1 fees1 and other        
expenses4  7,,ix7 ,the amount of any    
penalties 7including any liquidated     
damages7 payable by the payee in the    
case of any breach of the transfer      

agreement by the payee4  7,b7 ,prime    
rate ,for purposes of this paragraph1   
the term prime rate means the bank prime
 rate for the first day of the month in 
which the transfer agreement is         
executed1 as published in the ,federal  
,reserve ,statistical ,release on       
selected interest rates 7daily or       
weekly71 and commonly referred to as the
 ,h4#ae release 7or any successor       
publication74  4  7c7 ,effective date   
,the amendments made by this section    
shall apply to structured settlement    
factoring transactions 7as defined in   
section #ehia of such ,code7 entered    
into later than #ahj days after the date
 of the enactment of this ,act4