,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #cfge  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #a1 #bjae ,mr4
 ,de,saulnier 7= himself1 ,mr4 ,takano1 
,mr4 ,huffman1 ,ms4 ,judy ,*u (         
,cali=nia1 ,mr4 ,l[5?al1 & ,ms4         
,slaught]7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means1 & 9 addition to ! ,committee on 
,education & ! ,work=ce1 = 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 am5d ! ,high]   
,education ,act ( #aife to ensure t     
/ud5t loans are available at int]e/     
rates t d n exce$ ! int]e/ rates at :i* 
! ,f$]al ,gov]nm5t provides loans to    
banks ?r\gh ! disc\nt w9d[ op]at$ by !  
,f$]al ,res]ve ,sy/em1 & = o!r purposes4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,/ud5t ,borr[] ,fairness ,act4  #b4 
,availability ( /ud5t loans at ,f$]al   
,res]ve bank disc\nt rate  7a7          
,availability ( ,/ud5t ,loans ,section  

#dee7;b7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajhg;e7b77 is     
am5d$--  7#a7 by r$esignat+ p>agraphs   
7#i7 & 7#aj7 z p>agraphs 7#aj7 & 7#aa72 
&  7#b7 by ins]t+ aft] p>agraph 7#h7 !  
foll[+ new p>agraph3  7#i7  ,special    
rule = new loans on or aft] ,july #a1   
#bjae  7,a7 ,application ( l[] rate (   
int]e/ ,not)/&+ ! prec$+ p>agraphs ( ?is
 subsection1 if ! rate ( int]e/ det]m9$ 
"u subp>agraph 7,b7 ) respect to any    
loan = :i* ! fir/ disbursem5t is made on
 or aft] ,july #a1 #bjae1 is less ?an ! 
applicable rate ( int]e/ = ! loan "u    
p>agraph 7#h71 ! applicable rate (      
int]e/ = ! loan %all be ! rate det]m9$  
"u subp>agraph 7,b74  7,b7 ,det]m9ation 
( rate ,! rate ( int]e/ det]m9$ "u ?is  
subp>agraph is1 ) respect to a loan     
disburs$ dur+ any #ab-mon? p]iod beg9n+ 
on ,july #a & end+ on ,june #cj1 !      
prim>y cr$it rate *>g$ by ! ,f$]al      
,res]ve banks on ! prec$+ ,june #a =    
purposes ( sections #ac & #ac;,a ( !    
,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cdb 

et seq474  7,c7  ,consultation  ,!      
,secret>y %all det]m9e ! rate ( int]e/  
"u subp>agraph 7,b7 aft] consultation ) 
! ,secret>y ( ! ,treasury & %all publi% 
su* rate 9 ! ,f$]al ,regi/] z soon z    
practicable aft] ! date ( det]m9ation4  
7,d7 ,fix$ rate ,! applicable rate (    
int]e/ det]m9$ "u ?is p>agraph = a loan 
%all be fix$ = ! p]iod ( ! loan4  4  7b7
 ,borr[] ,modification ( ,int]e/ ,rates 
,section #dee7;b7 ( su* ,act 7#bj       
,u4,s4,c4 #ajhg;e7b771 z am5d$ by       
subsection 7a71 is fur!r am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#ab7  
,borr[] modification ( int]e/ rate  7,a7
 ,modification ,not)/&+ ! prec$+        
p>agraphs ( ?is subsection1 ! borr[] ( a
 ,f$]al ,direct ,/af=d ,loan1 a ,f$]al  
,direct ,unsubsidiz$ ,/af=d ,loan1 a    
,f$]al ,direct ,,plus ,loan1 or a ,f$]al
 ,direct ,consolidation ,loan may elect 
to modify ! int]e/ rate ( ! loan to be  
equal to ! int]e/ rate t w\ld be        
applicable to su* loan if su* loan 7    
fir/ disburs$ 7or 9 ! case ( a ,f$]al   

,direct ,consolidation ,loan1 fir/      
appli$ =7 on ! date on :i* su* borr[]   
elects to modify ! int]e/ rate ( su*    
loan4  7,b7 ,fix$ rate ,except z provid$
 9 subp>agraph 7,c71 an int]e/ rate     
elect$ "u subp>agraph 7,a7 = a loan %all
 be fix$ = ! life ( ! loan4  7,c7       
,cont9u+ au?ority to modify ,a borr[]   
may elect to modify ! int]e/ rate ( a   
loan 9 accordance ) subp>agraph 7,a7 at 
any "t dur+ ! life ( ! loan4  7,d7      
,con/ruction ,no?+ 9 ?is p>agraph %all  
be con/ru$ to au?orize any refund+ ( any
 repaym5t ( a loan4  4  #c4 ,income tax 
rate ( publicly trad$ corporations bas$ 
on comp5sation ratio  7a7 ,9 g5]al      
,section #aa ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+3  7e7 ,tax rate ( publicly trad$ 
corporations bas$ on comp5sation ratio  
7#a7 ,9 g5]al ,9 ! case ( a publicly    
trad$ corporation 7z def9$ 9 section    
#afb7m77#b771 ! am\nt ( tax "u          
subsection 7b7 %all be det]m9$--  7,a7  
by adju/+ ! highe/ rate ( tax applicable

 to ! taxpay] by ! p]c5tage po9t        
adju/m5t specifi$ 9 p>agraph 7#b71 &    
7,b7 by mak+ prop] adju/m5ts to-- 7i7 ! 
doll> am\nt 9 clause 7ii7 ( ! second    
s5t5ce ( p>agraph 7#a71 &  7ii7 ! doll> 
am\nt 9 clause 7ii7 ( ! ?ird s5t5ce (   
p>agraph 7#a74  7#b7 ,adju/m5t ( tax    
rate ,= purposes ( p>agraph 7#a71 !     
p]c5tage po9ts specifi$ 9 ?is p>agraph  
%all be det]m9$ z foll[s3  ,if !        
comp5sation ratio is3,! p]c5tage po9t   
adju/m5t is3  ,n m ?an #be #a p]c5tage  
po9ts ,m ?an #be b n m ?an #ejj4e       
p]c5tage po9ts ,m ?an #ej b n m ?an     
#ajjz]o ,m ?an #ajj b n m ?an #aejj4e   
p]c5tage po9ts ,m ?an #aej b n m ?an    
#bjja p]c5tage po9ts ,m ?an #bjj b n m  
?an #beja4e p]c5tage po9ts ,m ?an #bej b
 n m ?an #cjjb p]c5tage po9ts ,m ?an    
#cjj b n m ?an #djjb4e p]c5tage po9ts ,m
 ?an #djjc p]c5tage po9ts4  7#c7        
,def9itions ,= purposes ( ?is           
subsection-- 7,a7 ,comp5sation ratio ,! 
comp5sation ratio = a taxable ye> means 
a ratio--  7i7 ! num]ator ( :i* is !    

am\nt equal to ! great] ( ! comp5sation 
( ! *ief op]at+ (fic] or ! highe/ paid  
employee ( ! taxpay] = ! cal5d> ye>     
prec$+ ! beg9n+ ( ! taxable ye>1 &  7ii7
 ! d5om9ator ( :i* is ! am\nt equal to !
 m$ian comp5sation ( all employees      
employ$ by ! taxpay] 9 ! ,unit$ ,/ates =
 ! cal5d> ye> prec$+ ! beg9n+ ( !       
taxable ye>4  7,b7 ,comp5sation  7i7    
,employees ,9 ! case ( employees ( !    
taxpay] o!r ?an ! *ief op]at+ (fic] or !
 highe/ paid employee1 ! t]m comp5sation
 means wages 7z def9$ 9 section         
#caba7;a77 paid by ! taxpay] dur+ a     
cal5d> ye>4  7ii7 ,,ceo & highe/ paid   
employee ,9 ! case ( ! *ief op]at+ (fic]
 & ! highe/ paid employee ( ! taxpay]1 !
 t]m comp5sation means total comp5sation
 = ! cal5d> ye>1 z report$ 9 ! ,summ>y  
,comp5sation ,table report$ to !        
,securities & ,ex*ange ,commission      
pursuant to ,item #djb ( ,regulation    
,s-,k ( ! ,securities & ,ex*ange        
,commission4  7#d7 ,special rule if     
contract$ or =eign employee ratio       

increases  7,a7 ,9 g5]al ,if-- 7i7 !    
total numb] ( full-"t employees1 det]m9$
 on an annual full-"t equival5t basis1  
employ$ by ! taxpay] 9 ! ,unit$ ,/ates =
 a taxable ye> is r$uc$ by m ?an #aj    
p]c5t1 z comp>$ to ! total numb] (      
full-"t employees1 det]m9$ on an annual 
full-"t equival5t basis1 employ$ by !   
taxpay] 9 ! ,unit$ ,/ates = ! prec$+    
taxable ye>1 &  7ii7 ! total numb] (    
contract$ employees or =eign full-"t    
employees1 det]m9$ on an annual full-"t 
equival5t basis1 ( ! taxpay] = t taxable
 ye> has increas$1 z comp>$ ) ! total   
numb] ( contract$ employees or =eign    
full-"t employees1 det]m9$ on an annual 
full-"t equival5t basis1 ( ! taxpay] = !
 prec$+ taxable ye>1  !n ! applicable   
tax rate det]m9$ "u p>agraph 7#b7 %all  
be increas$ by #ej p]c5t4 ,= taxpay]s :o
 fir/ comm5ce do+ bus9ess dur+ ! taxable
 ye>1 ! numb] ( full-"t employees1      
contract$ employees1 & =eign full-"t    
employees = ! imm$iately prec$+ prior   
taxable ye> %all be z]o4  7,b7          

,def9itions ,= purposes ( ?is p>agraph--
 7i7 ,annual full-"t equival5t ,! t]m   
annual full-"t equival5t means--  7,i7 9
 ! case ( a full-"t employee paid h\rly 
qualifi$ wages1 ! total numb] ( h\rs    
work$ = ! taxpay] by ! employee1 n to   
exce$ #b1jjj h\rs p] employee1 divid$ by
 #b1jjj1 &  7,,ii7 9 ! case ( a sal>i$  
full-"t employee1 ! total numb] ( weeks 
work$ = ! taxpay] by ! employee divid$  
by #eb4  7ii7 ,contract$ full-"t        
employee ,! t]m contract$ full-"t       
employee means an individual engag$ by !
 taxpay] to provide a specific set (    
s]vices e/abli%$ pursuant to ! t]ms &   
conditions ( a writt5 employm5t contract
 t del9eates ! l5g? ( employm5t1 ! sal>y
 & bonuses 7if any7 to be paid1 & !     
b5efits t accrue to t individual4  7iii7
 ,=eign full-"t employee ,! t]m =eign   
full-"t employee means a full-"t        
employee ( ! taxpay] t is employ$ at a  
location o!r ?an ! ,unit$ ,/ates4  7iv7 
,full-"t employee ,! t]m full-"t        
employee means an employee ( ! taxpay] t

 ei!r-- 7,i7 is paid comp5sation by !   
taxpay] = s]vices ( n less ?an an av]age
 ( #ce h\rs p] week1 or  7,,ii7 is a    
sal>i$ employee ( ! taxpay] & is paid   
comp5sation dur+ ! taxable ye> = full-"t
 employm5t4  7#e7 ,controll$ gr\ps ,=   
purposes ( ?is subsection1 all p]sons   
treat$ z a s+le employ] "u subsection   
7b71 7c71 7m7 or 7o7 ( section #dad1    
%all be treat$ z "o p]son4  7#f7        
,reports ,! taxpay] %all furni% su*     
reports to ! ,secret>y ) respect to     
comp5sation & su* o!r matt]s z !        
,secret>y may require4 ,! reports       
requir$ by ?is subsection %all be fil$  
at su* "t & 9 su* mann] z may be requir$
 by ! ,secret>y4  7#g7 ,regulations ,!  
,secret>y %all prescribe su* regulations
 & o!r guidance z may be necess>y or    
appropriate to c>ry out ?is subsection1 
includ+ any guidel9es reg>d+ !          
det]m9ation ( wages1 av]age comp5sation1
 & comp5sation ratio4  4  7b7 ,effective
 date ,! am5dm5t made by subsection 7a7 
%all apply to taxable ye>s beg9n+ aft] !

 date ( ! enactm5t ( ?is ,act4