,i #aac? ,,congress #b;d ,session ,h4 ,r4 #ddcf ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #i1 #bjad ,mr4 ,petri introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committees on ,education & ! ,work=ce & ,f9ancial ,s]vices1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to provide ! legal framework necess>y = ! gr[? ( innovative private f9anc+ options = /ud5ts to fund po/second>y education1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,inve/+ 9 ,/ud5t ,success ,act ( #bjad4 ,i ,au?orization ( ,income ,%>e ,agreem5ts #aja4 ,purpose2 lawfulness ( in/rum5ts2 preemption ( ,/ate law 7a7 ,purpose ,x is ! purpose ( ?is title to au?orize individuals to ent] into income %>e agreem5ts = ! purposes ( obta9+ funds 9 ex*ange = agree+ to pay to ! hold] ( ! contract a specifi$ p]c5tage ( ! individual's future income4 7b7 ,lawfulness ( contracts2 preemption ,any income %>e agreem5t t complies ) ! requirem5ts ( section #ajb %all be a valid1 b9d+1 & en=ceable contract not)/&+ any ,/ate law limit+ or o!rwise regulat+ assignm5ts ( future wages or o!r income4 #ajb4 ,t]ms & conditions ( income %>e agreem5t contracts 7a7 ,def9ition ( income %>e agreem5t ,= purposes ( ?is title1 ! t]m income %>e agreem5t means an agreem5t betwe5 an individual & any o!r p]son "u :i* ! individual commits to pay a specifi$ p]c5tage ( ! individual's future income1 = a specifi$ p]iod ( "t1 9 ex*ange = paym5ts to or on behalf ( su* individual = po/second>y education1 work=ce developm5t1 or o!r purposes4 7b7 ,t]ms & conditions ( agreem5ts ,an income %>e agreem5t complies ) ! requirem5ts ( ?is section if ! contract complies ) ea* ( ! foll[+ conditions3 7#a7 ,specifi$ p]c5tage ( income ,an income %>e agreem5t %all specify ! p]c5tage ( future income :i* ! individual w be obligat$ to pay1 except t ! contract %all exempt1 at a m9imum1 ! fir/ #aj1jjj 7adju/$ ea* ye> to reflect *anges 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s publi%$ by ! ,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor = ! mo/ rec5t #ab-mon? p]iod = :i* su* data are available7 ( an individual's income :5 det]m9+ ! individual's obligation = a giv5 ye>4 7#b7 ,def9ition ( income ,an income %>e agreem5t %all specify ! def9ition ( income to be us$ = purposes ( calculat+ an individual's obligation "u ! contract4 7#c7 ,aggregate limitation on obligation ,no eligible individual may ent] into any income %>e agreem5t if ! total p]c5tage ( su* individual's future income t ! individual agrees to pay "u t contract1 & any o!r income %>e agreem5ts ( su* individual1 exce$s #ae p]c5t ( su* future income4 7#d7 ,specifi$ duration2 ext5sion ( p]iod ,an income %>e agreem5t %all specify ! maximum p]iod ( "t dur+ :i* ! individual w be obligat$ to pay a portion ( ! individual's future income1 except t-- 7,a7 except z provid$ 9 subp>agraph 7,b71 su* p]iod may n exce$ #cfj mon?s2 & 7,b7 su* contract may provide t su* p]iod may be ext5d$ by ! numb] ( ye>s dur+ :i* ! individual's income is bel[ ! exemption am\nt specifi$ 9 ! agreem5t "u p>agraph 7#a74 7#e7 ,e>ly t]m9ation ,an income %>e agreem5t %all specify ! t]ms & conditions by :i* ! individual may ext+ui% ! individual's obligations "u ! contract be=e ! end ( ! paym5t p]iod specifi$ 9 ! agreem5t1 bas$ on ! rema9+ t]m ( su* p]iod4 7c7 ,requir$ disclosures ,an income %>e agreem5t does n comply ) ! requirem5ts ( ?is section unless ! individual :o is committ+ to pay future income is provid$1 be=e entry into su* agreem5t1 a disclosure docum5t t cle>ly & simply discloses t-- 7#a7 ! agreem5t is n a debt in/rum5t1 & t ! am\nt ! individual w be requir$ to pay "u ! agreem5t-- 7,a7 may be m or less ?an ! am\nt provid$ to ! individual2 & 7,b7 w v>y 9 proportion to ! individual's future income2 7#b7 ! obligations ( ! individual "u ! agreem5t are n dis*>geable "u bankruptcy law2 7#c7 :e!r ! obligations ( ! individual "u ! agreem5t may be ext+ui%$ by accel]at+ paym5ts1 &1 if s1 "u :at t]ms2 7#d7 ! duration ( ! individual's obligations "u ! agreem5t 7abs5t su* accel]at+ paym5ts71 includ+ any circum/ances "u :i* ! contract w\ld be ext5d$2 7#e7 ! p]c5tage ( income ! individual is committ+ to pay & ! am\nt ( income t is exempt f ! calculation ( ! individual's obligation2 & 7#f7 ! def9ition ( income to be us$ = purposes ( calculat+ ! individual's obligation4 7d7 ,non-,int]f]5ce ,an income %>e agreem5t %all n be con/ru$ to give ! contract hold] any rights ov] an individual's actions--x simply repres5ts an obligation by ! individual pay ! specific p]c5tage ( future income4 #ajc4 ,def9itions ,z us$ 9 ?is title3 7#a7 ,/ate ,! t]m ,/ate includes1 9 addition to ! sev]al ,/ates ( ! ,union1 ! ,commonweal? ( ,pu]to ,rico1 ! ,di/rict ( ,columbia1 ,guam1 ,am]ican ,samoa1 ! ,virg9 ,isl&s1 ! gov]nm5t ( ! ,nor!rn ,m>iana ,isl&s1 & ! ,tru/ ,t]ritory ( ! ,pacific ,isl&s4 7#b7 ,/ate law ,! t]m ,/ate law means any law1 decision1 rule1 regulation1 or o!r action hav+ ! effect ( a law ( any ,/ate or any political subdivision ( a ,/ate1 or any ag5cy or in/rum5tality ( a ,/ate or political subdivision ( a ,/ate1 except t a law ( ! ,unit$ ,/ates applicable only to ! ,di/rict ( ,columbia %all be treat$ z a ,/ate law 7r ?an a law ( ! ,unit$ ,/ates74 #ajd4 ,preemption ( ,/ate ,law ) respect to usury ,income %>e agreem5ts %all n be subject to ,/ate usury laws4 ,,ii ,tax ,treatm5t ( ,income ,%>e ,agreem5ts #bja4 ,tax treatm5t ( income %>e agreem5ts 7a7 ,exclusion f gross income ( income %>e agreem5t proce$s ,paym5ts made "u an income %>e agreem5t to or on behalf ( ! individual :o commits to pay a specifi$ p]c5tage ( su* individual's future income to ano!r p]son "u su* agreem5t %all n be includible 9 ! gross income ( su* individual = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf4 7b7 ,treatm5t ( paym5ts ( future income ,paym5ts ( future income receiv$ by ano!r p]son "u an income %>e agreem5t %all be treat$ = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf-- 7#a7 fir/1 ) respect to s mu* ( su* paym5ts z does n exce$ ! am\nt ( ! paym5ts to :i* subsection 7a7 applies ) respect to su* agreem5t1 z a repaym5t ( inve/m5t 9 ! contract :i* r$uces ! hold]'s basis 9 su* agreem5t1 & 7#b7 second1 z int]e/ :i* is includible 9 gross income4 7c7 ,income %>e agreem5t ,= purposes ( ?is title1 ! t]m income %>e agreem5t has ! mean+ giv5 su* t]m "u title ,i4 ,,iii ,qualifi$ education loan #cja4 ,qualifi$ education loan 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #bba7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 ,su* t]m includes any income %>e agreem5t 7z def9$ 9 section #ajb ( ! ,inve/+ 9 ,/ud5t ,success ,act ( #bjad71 except t paym5ts made by ! taxpay] dur+ ! taxable ye> to meet an income %>e agreem5t obligation %all n be tak5 into acc\nt "u subsection 7a744 7b7 ,in=mation report+ n requir$ ,subsection 7e7 ( section #fjej,s ( su* ,code is am5d$ by ins]t+ 7)\t reg>d to ! la/ s5t5ce !re(7 aft] section #bba7;d77#a74 ,,iv ,f$]al ,individual ,assi/ance ,treatm5t ( ,income ,%>e ,agreem5ts #dja4 ,am\nts receiv$ n treat$ z income 9 calculation ( f9ancial ne$ "u ! ,high] ,education ,act ( #aife ,no portion ( any am\nts receiv$ by an individual = ent]+ into an income %>e agreem5t 7z su* t]m is def9$ 9 title ,i7 %all be includ$ z income or assets 9 ! computation ( expect$ family contribution = any program fund$ 9 :ole or 9 "p "u ! ,high] ,education ,act ( #aife4 ,v ,inve/m5t ,company treatm5t #eja4 ,bus9esses mak+ income %>e agreem5ts exclud$ f inve/m5t company treatm5t ,section #c7;c7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77 is am5d$-- 7#a7 9 p>agraph 7#d71 by ins]t+ aft] indu/rial bank+1 ! foll[+3 income %>e agreem5ts 7z def9$ "u section #ajb ( ! ,inve/+ 9 ,/ud5t ,success ,act ( #bjad712 & 7#b7 9 p>agraph 7#e71 by ins]t+ 1 includ+ income %>e agreem5ts aft] s]vices ea* place su* t]m appe>s4