,,ii  ,cal5d> ,no4 #gd  #aac? ,,congress
  #a/ ,session  ,s4 #iec  ,,9 ,,!       
,,s5ate ,,( ,,! ,,unit$ ,,/ates  ,may   
#ad1 #bjac ,mr4 ,re$ 7= himself1 ,mr4   
,h>k91 ,mr4 ,reid1 ,mrs4 ,murray1 ,mr4  
,rockefell]1 ,ms4 ,baldw91 ,mr4 ,s*um]1 
,mr4 ,frank51 ,mr4 ,br[n1 ,mr4 ,murphy1 
,mr4 ,durb91 ,mrs4 ,gillibr&1 ,ms4      
,/ab5[1 ,mr4 ,laut5b]g1 ,mr4 ,:iteh\se1 
,mr4 ,ka9e1 ,ms4 ,w>r51 & ,mr4 ,johnson 
( ,s\? ,dakota7 introduc$ ! foll[+ bill2
 :i* 0 read ! fir/ "t  ,may #ae1 #bjac  
,read ! second "t & plac$ on ! cal5d>   
,a ,,bill  ,to am5d ! ,high] ,education 
,act ( #aife to ext5d ! r$uc$ int]e/    
rate = und]graduate ,f$]al ,direct      
,/af=d ,loans1 to modify requir$        
di/ribution rules = p5sion plans1 to    
limit e>n+s /ripp+ by expatriat$        
entities1 to provide = modifications    
relat$ to ! ,oil ,spill ,liability ,tru/
 ,fund1 & = o!r purposes4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,/ud5t  
,loan ,af=dability ,act4  #b4 ,int]e/   
rate ext5sion ,section #dee7;b77#g77;,d7

 ( ! ,high] ,education ,act ( #aife 7#bj
 ,u4,s4,c4 #ajhg;e7b77#g77;,d77 is      
am5d$--  7#a7 9 ! matt] prec$+ clause   
7i71 by /rik+ & be=e ,july #a1 #bjac1 & 
ins]t+ & be=e ,july #a1 #bjae12 &  7#b7 
9 clause 7v71 by /rik+ & be=e ,july #a1 
#bjac1 & ins]t+ & be=e ,july #a1 #bjae14
  #c4 ,modifications ( requir$          
di/ribution rules = p5sion plans  7a7 ,9
 g5]al ,section #dja7;a77#i77;,b7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7,b7 ,requir$        
di/ributions :]e employee dies be=e     
entire int]e/ is di/ribut$  7i7 #e-ye>  
g5]al rule ,a tru/ %all n con/itute a   
qualifi$ tru/ "u ?is section unless !   
plan provides t1 if an employee dies    
be=e ! di/ribution ( ! employee's int]e/
 7:e!r or n su* di/ribution has begun 9 
accordance ) subp>agraph 7,a771 ! entire
 int]e/ ( ! employee w be di/ribut$ )9  
#e ye>s aft] ! dea? ( su* employee4     
7ii7 ,exception = eligible designat$    
b5efici>ies ,if--  7,i7 any portion ( ! 
employee's int]e/ is payable to 7or = ! 

b5efit (7 an eligible designat$         
b5efici>y1  7,,ii7 su* portion w be     
di/ribut$ 79 accordance ) regulations7  
ov] ! life ( su* eligible designat$     
b5efici>y 7or ov] a p]iod n ext5d+      
beyond ! life expectancy ( su*          
b5efici>y71 &  7,,iii7 su* di/ributions 
beg9 n lat] ?an #a ye> aft] ! date ( !  
employee's dea? or su* lat] date z !    
,secret>y may by regulations prescribe1 
!n1 = purposes ( clause 7i7 & except z  
provid$ 9 clause 7iv7 or subp>agraph    
7,e77iii71 ! portion ref]r$ to 9        
subclause 7,i7 %all be treat$ z         
di/ribut$ on ! date on :i* su*          
di/ributions beg94  7iii7 ,special rule 
= surviv+ sp\se ( employee ,if !        
eligible designat$ b5efici>y ref]r$ to 9
 clause 7ii77,i7 is ! surviv+ sp\se ( ! 
employee--  7,i7 ! date on :i* !        
di/ributions are requir$ to beg9 "u     
clause 7ii77,,iii7 %all n be e>li] ?an !
 date on :i* ! employee w\ld h atta9$   
age #gj1 &  7,,ii7 if ! surviv+ sp\se   
dies be=e ! di/ributions to su* sp\se   

beg91 ?is subp>agraph %all be appli$ z  
if ! surviv+ sp\se 7 ! employee4  7iv7  
,rules ^u dea? ( eligible designat$     
b5efici>y ,if an eligible designat$     
b5efici>y dies be=e ! portion ( an      
employee's int]e/ describ$ 9 clause 7ii7
 is entirely di/ribut$1 clause 7ii7 %all
 n apply to any b5efici>y ( su* eligible
 designat$ b5efici>y & ! rema9d] ( su*  
portion %all be di/ribut$ )9 #e ye>s    
aft] ! dea? ( su* b5efici>y4  4  7b7    
,def9ition ( eligible designat$         
b5efici>y ,section #dja7;a77#i77;,e7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 to read z foll[s3  7,e7 ,def9itions &  
rules relat+ to designat$ b5efici>y ,=  
purposes ( ?is p>agraph--  7i7          
,designat$ b5efici>y ,! t]m designat$   
b5efici>y means any individual designat$
 z a b5efici>y by ! employee4  7ii7     
,eligible designat$ b5efici>y ,! t]m    
eligible designat$ b5efici>y means1 )   
respect to any employee1 any designat$  
b5efici>y :o1 z ( ! date ( dea? ( !     
employee1 is--  7,i7 ! surviv+ sp\se ( !

 employee1  7,,ii7 subject to clause    
7iii71 a *ild ( ! employee :o has n     
rea*$ majority 7)9 ! mean+ ( subp>agraph
 7,f771  7,,iii7 disabl$ 7)9 ! mean+ (  
section #gb7m77#g771  7,,iv7 a          
*ronically ill individual 7)9 ! mean+ ( 
section #ggjb;,b7c77#b71 except t !     
requirem5ts ( subp>agraph 7,a77i7 !re(  
%all only be treat$ z met if !re is a   
c]tification t1 z ( su* date1 ! p]iod ( 
inability describ$ 9 su* subp>agraph )  
respect to ! individual is an indef9ite 
"o t is reasonably expect$ to be l5g?y 9
 nature71 or  7,v7 an individual n      
describ$ 9 any ( ! prec$+ subp>agraphs  
:o is n m ?an #aj ye>s y\ng] ?an !      
employee4  7iii7 ,special rule = *ildr5 
,subject to subp>agraph 7,f71 an        
individual describ$ 9 clause 7ii77,,ii7 
%all cease to be an eligible designat$  
b5efici>y z ( ! date ! individual rea*es
 majority & ! requirem5t ( subp>agraph  
7,b77i7 %all n be treat$ z met ) respect
 to any rema9+ portion ( an employee's  
int]e/ payable to ! individual unless   

su* portion is di/ribut$ )9 #e ye>s aft]
 su* date4  4  7c7 ,requir$ beg9n+ date 
,section #dja7;a77#i77;,c7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new clause3  7v7      
,employees becom+ #e-p]c5t own]s aft]   
age #gja_/b ,if an employee becomes a   
#e-p]c5t own] 7z def9$ 9 section #daf7 )
 respect to a plan ye> end+ 9 a cal5d>  
ye> aft] ! cal5d> ye> 9 :i* ! employee  
atta9s age #gja_/b1 !n clause 7i77,,ii7 
%all be appli$ by sub/itut+ ! cal5d> ye>
 9 :i* ! employee became su* an own] = !
 cal5d> ye> 9 :i* ! employee retires4  4
  7d7 ,effective dates  7#a7 ,9 g5]al   
,except z provid$ 9 ?is subsection1 !   
am5dm5ts made by ?is section %all apply 
to di/ributions ) respect to employees  
:o die aft] ,decemb] #ca1 #bjac4  7#b7  
,requir$ beg9n+ date  7,a7 ,9 g5]al ,!  
am5dm5t made by subsection 7c7 %all     
apply to employees becom+ a #e-p]c5t    
own] ) respect to plan ye>s end+ 9      
cal5d> ye>s beg9n+ be=e1 on1 or aft] !  
date ( ! enactm5t ( ?is ,act4  7,b7     

,special rule ,if--  7i7 an employee    
became a #e-p]c5t own] ) respect to a   
plan ye> end+ 9 a cal5d> ye> :i* began  
be=e ,janu>y #a1 #bjac1 &  7ii7 !       
employee has n retir$ be=e cal5d> ye>   
#bjad1  su* employee %all be treat$ z   
hav+ become a #e-p]c5t own] ) respect to
 a plan ye> end+ 9 #bjac = purposes (   
apply+ section #dja7;a77#i77;,c77v7 ( ! 
,int]nal ,rev5ue ,code ( #aihf 7z add$  
by ! am5dm5t made by subsection 7c774   
7#c7 ,exception = c]ta9 b5efici>ies ,if 
a designat$ b5efici>y ( an employee :o  
dies be=e ,janu>y #a1 #bjad1 dies aft]  
,decemb] #ca1 #bjac--  7,a7 ! am5dm5ts  
made by ?is section %all apply to any   
b5efici>y ( su* designat$ b5efici>y1 &  
7,b7 ! designat$ b5efici>y %all be      
treat$ z an eligible designat$ b5efici>y
 = purposes ( apply+ section            
#dja7;a77#i77;,b77iv7 ( su* ,code 7z 9  
effect aft] ! am5dm5ts made by ?is      
section74  7#d7 ,exception = c]ta9 exi/+
 annuity contracts  7,a7 ,9 g5]al ,!    
am5dm5ts made by ?is section %all n     

apply to a qualifi$ annuity :i* is a    
b9d+ annuity contract 9 effect on ! date
 ( ! enactm5t ( ?is ,act & at all times 
!reaft]4  7,b7 ,qualifi$ annuity        
contract ,= purposes ( ?is p>agraph1 !  
t]m qualifi$ annuity means1 ) respect to
 an employee1 an annuity--  7i7 :i* is a
 comm]cial annuity 7z def9$ 9 section   
#cdje7;e77#f7 ( su* ,code7 or payable by
 a def9$ b5efit plan1  7ii7 "u :i* !    
annuity paym5ts are sub/antially equal  
p]iodic paym5ts 7n less frequ5tly ?an   
annually7 ov] ! lives ( su* employee & a
 designat$ b5efici>y 7or ov] a p]iod n  
ext5d+ beyond ! life expectancy ( su*   
employee or ! life expectancy ( su*     
employee & a designat$ b5efici>y7 9     
accordance ) ! regulations describ$ 9   
section #dja7;a77#i77;,a77ii7 ( su*     
,code 7z 9 effect be=e su* am5dm5ts7 &  
:i* meets ! o!r requirem5ts ( ?is       
section #dja7;a77#i7 ( su* ,code 7z s 9 
effect7 ) respect to su* paym5ts1 &     
7iii7 ) respect to :i*--  7,i7 annuity  
paym5ts to ! employee h begun be=e      

,janu>y #a1 #bjad1 & ! employee has made
 an irrevocable election be=e su* date z
 to ! me?od & am\nt ( ! annuity paym5ts 
to ! employee or any designat$          
b5efici>ies1 or  7,,ii7 if subclause    
7,i7 does n apply1 ! employee has made  
an irrevocable election be=e ! date ( ! 
enactm5t ( ?is ,act z to ! me?od & am\nt
 ( ! annuity paym5ts to ! employee or   
any designat$ b5efici>ies4  #d4         
,limitation on e>n+s /ripp+ by          
expatriat$ entities  7a7 ,9 g5]al       
,subsection 7j7 ( section #afc ( !      
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by r$esignat+ p>agraph    
7#i7 z p>agraph 7#aj71 &  7#b7 by ins]t+
 aft] p>agraph 7#h7 ! foll[+ new        
p>agraph3  7#i7 ,special rules =        
expatriat$ entities  7,a7 ,9 g5]al ,9 ! 
case ( a corporation to :i* ?is         
subsection applies :i* is an expatriat$ 
entity1 ?is subsection %all apply to su*
 corporation ) ! foll[+ modifications3  
7i7 ,p>agraph 7#b77;,a7 %all be appli$  
)\t reg>d to clause 7ii7 !re(4  7ii7    

,p>agraph 7#a77;,b7 %all be appli$--    
7,i7 )\t reg>d to ! p>5!tical1 &  7,,ii7
 by sub/itut+ 9 ! #a/ succe$+ taxable   
ye> & 9 ! #bnd ?r\gh #aj? succe$+       
taxable ye>s to ! ext5t n previ\sly tak5
 into acc\nt "u ?is subp>agraph = 9 !   
succe$+ taxable ye>4  7iii7 ,p>agraph   
7#b77;,b7 %all be appli$--  7,i7 )\t    
reg>d to clauses 7ii7 & 7iii71 &  7,,ii7
 by sub/itut+ #be p]c5t ( ! adju/$      
taxable income ( ! corporation = su*    
taxable ye> = ! matt] ( clause 7i77,,ii7
 !re(4  7,b7 ,expatriat$ entity ,=      
purposes ( ?is p>agraph--  7i7 ,9 g5]al 
,) respect to a corporation & a taxable 
ye>1 ! t]m expatriat$ entity has ! mean+
 giv5 su* t]m by section #ghgd7;a77#b71 
det]m9$ z if su* section & ! regulations
 "u su* section z 9 effect on ! fir/ day
 ( su* taxable ye> appli$ to all taxable
 ye>s ( ! corporation beg9n+ aft] ,july 
#aj1 #aihi4  7ii7 ,exception =          
surrogates treat$ z a dome/ic           
corporation ,! t]m expatriat$ entity    
does n include a surrogate =eign        

corporation :i* is treat$ z a dome/ic   
corporation by reason ( section         
#ghgd7;b74  4  7b7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4  #e4 ,modifications
 relat$ to ! ,oil ,spill ,liability     
,tru/ ,fund  7a7 ,def9ition ( crude oil 
,p>agraph 7#a7 ( section #dfab7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7#a7 ,crude oil ,!   
t]m crude oil includes crude oil        
cond5sates1 natural gasol9e1 any bitum5 
or bitum9\s mixture1 & any oil d]iv$ f a
 bitum5 or bitum9\s mixture4  4  7b7    
,remov+ re/rictions relat+ to oil wells 
& extraction me?ods ,p>agraph 7#b7 (    
section #dfab7;a7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ f a well
 locat$4  7c7 ,p]man5t ext5sion ( oil   
spill liability tru/ fund f9anc+ rate   
,section #dfaa7;f7 is am5d$ by /rik+    
subsection 7f74  7d7 ,cl]ical am5dm5t   
,subclause 7,i7 ( section               
#dfab7;e77#b77;,b77ii7 ( ! ,int]nal     

,rev5ue ,code ( #aihf is am5d$ by /rik+ 
tranf]r$ & ins]t+ transf]r$4  7e7       
,effective date ,! am5dm5ts made by     
subsections 7a7 & 7b7 %all apply to     
crude oil & petroleum products receiv$  
or ent]$ dur+ cal5d> qu>t]s beg9n+ m ?an
 #fj days aft] ! date ( ! enactm5t ( ?is
 ,act4  #f4 ,res]v+ result+ surpluses = 
deficit r$uction  7a7 ,paygo scorec>d ,!
 budget>y effects ( ?is ,act %all n be  
ent]$ on ei!r ,,paygo scorec>d ma9ta9$  
pursuant to section #d7;d7 ( ! ,/atutory
 ,pay-,z-,y-,g ,act ( #bjaj 7#b         
,u4,s4,c4 #icc7;d774  7b7 ,s5ate paygo  
scorec>d ,! budget>y effects ( ?is ,act 
%all n be ent]$ on any ,,paygo scorec>d 
ma9ta9$ = purposes ( section #bja ( ,s4 
,con4 ,res4 #ba 7#aaj? ,congress74  ,may
 #ae1 #bjac ,read ! second "t & plac$ on
 ! cal5d>