,,ib ,union ,calendar ,no4 #dga #aagth ,,congress #b;d ,session ,h4 ,r4 #gcaj ,report ,no4 #aag-eeg1 ,part ,i ,,in ,,the ,,house ,,of ,,representatives ,march #ca1 #bjbb,mrs4 ,mc,bath 7for herself1 ,mr4 ,scott of ,virginia1 ,mrs4 ,watson ,coleman1 ,mr4 ,courtney1 ,ms4 ,underwood1 and ,ms4 ,manning7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,november #ad1 #bjbb,reported from the ,committee on ,education and ,labor with an amendment,strike out all after the enacting clause and insert the part printed in italic,referral to the ,committee on ,ways and ,means1 extended grace period ending not later than ,january #b1 #bjbc;,for text of introduced bill1 see copy of bill as introduced on ,march #ca1 #bjbb ,november #ad1 #bjbb,referral to the ,committee on ,ways and ,means extended for a period ending not later than ,january #b1 #bjbc ,december #bj1 #bjbb;,additional sponsors3 ,mr4 ,levin of ,michigan1 ,ms4 ,leger ,fernandez1 ,mr4 ,sablan1 ,mr4 ,mfume1 ,ms4 ,bonamici1 ,mr4 ,mrvan1 ,mr4 ,takano1 ,mr4 ,espaillat1 ,mr4 ,de,saulnier1 ,ms4 ,stevens1 and ,mr4 ,pocan ,december #bj1 #bjbb;,committee on ,ways and ,means discharged2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed,for text of introduced bill1 see copy of bill as introduced on ,march #ca1 #bjbb ,a ,,bill ,to protect ,america's retirement security1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,protecting ,america's ,retirement ,security ,act of #bjbb4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,defined contribution plan fee disclosure improvements4,sec4 #c4 ,personal finance education portal4,sec4 #d4 ,increasing spousal protection under defined contribution plans4,sec4 #e4 ,automatic reenrollment4,sec4 #f4 ,employee ,ownership and ,participation ,initiative4,sec4 #g4 ,refund to ,rainy ,day ,savings ,program4 #b4 ,defined contribution plan fee disclosure improvements ,not later than #b years after the date of enactment of this ,act1 the ,secretary of ,labor shall review section #beej4djd;a-#e of title #bi1 ,code of ,federal ,regulations1 and explore how the content and design of the covered disclosures may be improved to enhance participants' understanding of fees and expenses as well as the cumulative effect of fees and expenses on retirement savings over time4 ,as part of such review1 the ,secretary shall conduct outreach to stakeholders1 including those representing plan sponsors and retirement plan participants4 #c4 ,personal finance education portal 7a7 ,in general ,not later than #c years after the date of enactment of this ,act1 the ,secretary of ,education1 in consultation with the ,director of the ,bureau of ,consumer ,financial ,protection1 the ,secretary of the ,treasury as chair of the ,financial ,literacy and ,education ,commission1 and the ,commissioner of ,internal ,revenue1 shall create a personal finance education portal on a centralized and publicly available website of the ,department of ,education pertaining to ,federal financial aid for voluntary use by recipients of aid awarded under title ,,iv of the ,higher ,education ,act of #aife4 7b7 ,content of personal finance education portal ,the personal finance education portal created under subsection 7a7 shall include information on personal finance concepts1 including the following3 7#a7 ,core personal finance concepts1 such as earning1 saving1 investing1 spending1 and borrowing1 including-- 7,a7 the concept of compound growth as it applies to savings and retirement savings1 with information about the different types of retirement savings accounts2 and 7,b7 budgeting and credit usage4 7#b7 ,managing student loan repayment1 including-- 7,a7 the interaction between savings and retirement decisions and ,federal student loan repayment plans2 7,b7 ,federal student loan discharge or forgiveness options2 7,c7 the types of voluntary benefits employers may use to help workers while they are paying down student loan debt2 7,d7 tax credits or deductions that are relevant to student loan borrowers in repayment2 and 7,e7 any other ,federal policies that significantly impact student loan borrowers in repayment1 as determined by the ,secretary4 7#c7 ,any other personal finance concepts determined relevant by the ,secretary of ,education1 in consultation with the ,director of the ,bureau of ,consumer ,financial ,protection1 the ,secretary of the ,treasury as chair of the ,financial ,literacy and ,education ,commission1 and the ,commissioner of ,internal ,revenue4 7c7 ,provision of content ,the personal finance content included under subsection 7b7 may be provided in an interactive format through text or video4 7d7 ,analytics ,the ,secretary of ,education1 in consultation with the ,director of the ,bureau of ,consumer ,financial ,protection1 the ,secretary of the ,treasury as chair of the ,financial ,literacy and ,education ,commission1 and the ,commissioner of ,internal ,revenue1 shall review not less than once every three years the utilization of the portal1 make recommendations to improve the portal1 and make such findings and recommendations publicly available4 7e7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out this section4 #d4 ,increasing spousal protection under defined contribution plans 7a7 ,amendments to ,employee ,retirement ,income ,security ,act of #aigd 7#a7 ,in general ,part #b of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajea et seq47 is amended by inserting after section #bje the following new section3 #bje;,a4 ,additional spousal consent requirements 7a7 ,in general ,each individual account plan to which section #bje does not apply 7but to which this title otherwise applies7 shall provide that1 except as provided in subsections 7c7 and 7d71 no distribution may be made under the plan unless the spousal consent requirements of subsection 7e7 are met4 7b7 ,coordination with section #bje ,nothing in this section shall be construed to exempt an individual account plan from the requirements of paragraph 7#a77;,b71 7#a77;,c71 or 7#b7 of section #bje7;b7 with respect to any participant4 7c7 ,exceptions for certain distributions ,subsection 7a7 shall not apply to-- 7#a7 any distribution that is-- 7,a7 a minimum required distribution described in section #digd7;b7 of the ,internal ,revenue ,code of #aihf2 or 7,b7 permitted under section #bjc7;e77#a7 to be made without the consent of the participant2 7#b7 any distribution in the form of a qualified joint and survivor annuity 7as defined in section #bje7;d77#a771 a qualified optional survivor annuity 7as defined in section #bje7;d77#b771 a qualified preretirement survivor annuity 7as defined in section #bje7;e771 or a series of substantially equal periodic payments 7not less frequently than annually7 made for the joint lives 7or life expectancies7 of the participant and the participant's spouse2 or 7#c7 in the case of a participant who does not elect a form of benefit described in paragraph 7#b7 under the plan or who is participating in a plan that does not provide such a form of benefit1 any distribution of the participant's entire nonforfeitable accrued benefit if #ej percent of such accrued benefit is transferred to an individual retirement plan 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 of the spouse of the participant4 ,a transfer described in paragraph 7#c7 to an individual retirement plan shall be treated in the same manner as a transfer under section #djh7;d77#f7 of the ,internal ,revenue ,code of #aihf4 7d7 ,exceptions for certain rollover contributions 7#a7 ,in general ,subsection 7a7 shall not apply to any distribution that is an eligible rollover distribution 7as defined in section #djb7;f77#b77;,a7 of the ,internal ,revenue ,code of #aihf7 made in the form of a direct trustee-to-trustee transfer within the meaning of section #dja7;a77#ca7 of the ,internal ,revenue ,code of #aihf-- 7,a7 to a plan to which this section or section #bje applies2 or 7,b7 to an individual retirement plan 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf7 if-- 7i7 the sole beneficiary of such plan is the spouse of the participant1 or the spousal consent requirements of subsection 7e7 are met with respect to any designation of #a or more other beneficiaries2 and 7ii7 under the terms of the individual retirement plan1 the beneficiary of such plan 7whether the spouse or other beneficiary designated under subparagraph 7,a77 may not be changed unless-- 7,i7 the spousal consent requirements of subsection 7e7 are met with respect to any such change2 or 7,,ii7 the spousal consent under clause 7i7 to the designation of a beneficiary other than the spouse expressly permits such designation to be changed without the further consent of the spouse4 7#b7 ,regulatory authority ,the ,secretary of the ,treasury and the ,secretary of ,labor may jointly issue regulations to implement subparagraphs 7,a7 and 7,b7 of paragraph 7#a74 7e7 ,spousal consent requirements 7#a7 ,in general ,for purposes of this section1 except as provided in paragraph 7#b71 the spousal consent requirements of this subsection are met with respect to any distribution or any designation or change of beneficiary if-- 7,a7 the plan provides to each participant1 within a reasonable period of time before such distribution or designation or change of beneficiary is made and consistent with such regulations as the ,secretary of the ,treasury may prescribe1 a written explanation of the rights of the participant and the participant's spouse under this section2 7,b7 the spouse of the participant consents in writing to the distribution or designation or change of beneficiary2 7,c7 in the case of a distribution1 the written consent under subparagraph 7,b7 is made during the consent period2 and 7,d7 the written consent under subparagraph 7,b7-- 7i7 acknowledges the effect of such distribution or designation or change of beneficiary2 and 7ii7 is witnessed by a plan representative or a notary public4 7#b7 ,exceptions ,the requirements of paragraph 7#a7 7other than subparagraph 7,a7 thereof7 shall not apply with respect to any distribution or designation or change of beneficiary if a participant establishes to the satisfaction of the administrator that-- 7,a7 there is no spouse2 7,b7 the participant and the participant's spouse have not been married for at least #a year as of the date of the distribution or designation or change of beneficiary2 or 7,c7 such consent cannot be obtained because-- 7i7 the spouse cannot be located after taking documented search efforts in accordance with guidance from the ,secretary of ,labor2 7ii7 due to exceptional circumstances1 requiring the participant to seek the spouse's consent would be inappropriate2 or 7iii7 of such other circumstances as the ,secretary of the ,treasury1 in consultation with the ,secretary of ,labor1 may by regulations prescribe4 ,the ,secretary of ,labor may issue regulations to implement this paragraph4 7#c7 ,consent limited to spouse and event ,any written consent by a spouse under paragraph 7#a71 or the establishment by a participant that an exception under paragraph 7#b7 applies with respect to a spouse1 shall be effective only with respect to that spouse and to the distribution or designation or change of beneficiary to which it relates4 7#d7 ,consent period ,for purposes of this subsection1 the term consent period means1 with respect to any distribution-- 7,a7 the #ij-;day period immediately preceding the date of such distribution2 or 7,b7 such other period as the ,secretary of the ,treasury may provide4 7f7 ,discharge of plan from liability ,rules similar to the rules of section #bje7;c77#f7 shall apply for purposes of this section4 4 7#b7 ,clerical amendment ,the table of sections of part #b of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd is amended by inserting after the item relating to section #bje the following new item3 ,sec4 #bje;,a4 ,additional spousal consent requirements4 4 7#c7 ,parallel amendment to section #bje ,section #bje7;c77#b77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajee7;c77#b77;,b77 is amended by inserting 1 because due to exceptional circumstances1 requiring the participant to seek the spouse's consent would be inappropriate after located4 7b7 ,conforming amendment to ,internal ,revenue ,code of #aihf ,section #dja7;a7 of the ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#ag7 the following new paragraph3 7#ah7 ,additional spousal consent requirements 7,a7 ,in general ,to the extent paragraph 7#aa7 does not apply to a defined contribution plan to which title ,i of the ,employee ,retirement ,income ,security ,act of #aigd applies1 except as provided in subparagraphs 7,c7 and 7,d71 a trust forming part of such plan shall not constitute a qualified trust under this section unless no distribution may be made under the plan unless the spousal consent requirements of subparagraph 7,e7 are met4 7,b7 ,coordination with paragraph 7#aa7 ,nothing in this paragraph shall be construed to exempt a defined contribution plan from the requirements of subparagraph 7,b77ii71 7,b77iii71 or 7,c7 of paragraph 7#aa7 with respect to any participant4 7,c7 ,exceptions for certain distributions ,subparagraph 7,a7 shall not apply to-- 7i7 any distribution that is-- 7,i7 a minimum required distribution described in section #digd7;b71 or 7,,ii7 permitted under section #daa7;a77#aa7 to be made without the consent of the participant1 7ii7 any distribution in the form of a qualified joint and survivor annuity 7as defined in section #dag7;b771 a qualified optional survivor annuity 7as defined in section #dag7;g771 a qualified preretirement survivor annuity 7as defined in section #dag7;c771 or a series of substantially equal periodic payments 7not less frequently than annually7 made for the joint lives 7or life expectancies7 of the participant and the participant's spouse1 or 7iii7 in the case of a participant who does not elect a form of benefit described in clause 7ii7 under the plan or who is participating in a plan that does not provide such a form of benefit1 any distribution of the participant's entire nonforfeitable accrued benefit if #ej percent of such accrued benefit is directly transferred to an individual retirement plan of the spouse of the participant4 ,a transfer described in clause 7iii7 to an individual retirement plan shall be treated in the same manner as a transfer under section #djh7;d77#f7 and shall be deemed not to violate paragraph 7#b7 or 7#ac74 7,d7 ,exceptions for certain rollover contributions 7i7 ,in general ,subparagraph 7,a7 shall not apply to any distribution1 involving a participant who has a spouse1 that is an eligible rollover distribution 7as defined in section #djb7;f77#b77;,a77 made in the form of a direct trustee-to-trustee transfer within the meaning of paragraph 7#ca7-- 7,i7 to a plan to which this paragraph or paragraph 7#aa7 applies2 or 7,,ii7 to an individual retirement plan if-- 7aa7 the sole beneficiary of such plan is the spouse of the participant1 or the spousal consent requirements of subparagraph 7,e7 are met with respect to any designation of #a or more other beneficiaries2 and 7bb7 under the terms of the individual retirement plan1 the beneficiary of such plan 7whether the spouse or other beneficiary designated under clause 7i77 may not be changed unless-- 7,,aa7 the spousal consent requirements of subparagraph 7,e7 are met with respect to any such change1 or 7,,bb7 the spousal consent under subclause 7,i7 to the designation of a beneficiary other than the spouse expressly permits such designation to be changed without the further consent of the spouse4 7ii7 ,regulatory authority ,the ,secretary of the ,treasury1 in consultation with the ,secretary of ,labor1 may issue regulations to implement subparagraphs subclauses 7,i7 and 7,,ii7 or clause 7i74 7,e7 ,spousal consent requirements 7i7 ,in general ,for purposes of this paragraph1 except as provided in clause 7ii71 the spousal consent requirements of this subparagraph are met with respect to any distribution or any designation or change of beneficiary if-- 7,i7 the plan provides to each participant1 within a reasonable period of time before such distribution or designation or change of beneficiary is made and consistent with such regulations as the ,secretary may prescribe1 a written explanation of the rights of the participant and the participant's spouse under this paragraph1 7,,ii7 the spouse of the participant consents in writing to the distribution or designation or change of beneficiary1 7,,iii7 in the case of a distribution1 the written consent under subclause 7,,ii7 is made during the consent period1 and 7,,iv7 the written consent under subclause 7ii7-- 7aa7 acknowledges the effect of such distribution or designation or change of beneficiary1 and 7bb7 is witnessed by a plan representative or a notary public4 7ii7 ,exceptions under section #dag7;a77#b77;b7 to apply ,the requirements of clause 7i7 7other than subclause 7,i7 thereof7 shall not apply with respect to any distribution or designation or change of beneficiary if a participant establishes to the satisfaction of the administrator that-- 7,i7 there is no spouse1 7,,ii7 the participant and the participant's spouse have not been married for at least #a year as of the date of the distribution or designation or change of beneficiary1 or 7,,iii7 such consent cannot be obtained because-- 7aa7 the spouse cannot be located after taking documented search efforts in accordance with guidance from the ,secretary of ,labor2 7bb7 due to exceptional circumstances1 requiring the participant to seek the spouse's consent would be inappropriate2 or 7cc7 of such other circumstances as the ,secretary1 in consultation with the ,secretary of ,labor1 may by regulations prescribe4 ,the ,secretary1 in consultation with the ,secretary of ,labor1 may issue regulations to implement this clause4 7iii7 ,consent limited to spouse and event ,any written consent by a spouse under clause 7i71 or the establishment by a participant that an exception under clause 7ii7 applies with respect to a spouse1 shall be effective only with respect to that spouse and to the distribution or designation or change of beneficiary to which it relates4 7iv7 ,consent period ,for purposes of this subparagraph1 the term consent period means1 with respect to any distribution-- 7,i7 the #ij-;day period immediately preceding the date of such distribution1 or 7,,ii7 such other period as the ,secretary may provide4 4 #e4 ,automatic reenrollment 7a7 ,eligible automatic contribution arrangements 7#a7 ,amendment to the ,employee ,retirement ,income ,security ,act of #aigd ,section #ead7;e77#b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aadd7;e77#b77 is amended-- 7,a7 by redesignating subparagraphs 7,a7 through 7,c7 as clauses 7i7 through 7iii71 respectively1 and moving the margins of such clauses #b ems to the right1 7,b7 by striking 7#b7 ,for purposes of and inserting 7#b77;,a7 ,for purposes of1 and 7,c7 by adding at the end the following3 7,b7 ,in the case of an automatic contribution arrangement taking effect after ,december #ca1 #bjbd1 the requirements of subparagraph 7,a77ii7 shall be treated as met only if1 under the arrangement1 at least every #c years each employee-- 7i7 who is eligible to participate in the arrangement1 and 7ii7 who1 at the time of the determination1 has in effect an affirmative election pursuant to subparagraph 7,a77ii7 not to have contributions described in such subparagraph made1 is treated as having made the election at the uniform percentage of compensation described in subparagraph 7,a77ii7 unless the employee makes a new election under such subparagraph4 ,such determination may be made at one time for all employees described in the preceding sentence for a plan year1 regardless of individual employee dates of enrollment4 4 7#b7 ,amendment to the ,internal ,revenue ,code of #aihf ,section #dad7w77#c7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating subparagraphs 7,a7 through 7,c7 as clauses 7i7 through 7iii71 respectively1 and moving the margins of such clauses #b ems to the right2 7,b7 by striking ,for purposes of and inserting the following3 7,a7 ,in general ,for purposes of 7,c7 by adding at the end the following new subparagraph3 7,b7 ,periodic automatic deferral required ,in the case of an eligible automatic contribution arrangement taking effect after ,december #ca1 #bjbd1 the requirements of this subsection shall be treated as met only if1 under the arrangement1 at least every #c plan years each employee-- 7i7 who is eligible to participate in the arrangement1 and 7ii7 who1 at the time of the determination1 has in effect an affirmative election under subparagraph 7,a77ii7 not to have such contributions described in such subparagraph made1 is treated as having made the election at the uniform percentage level described in subparagraph 7,a77ii7 unless the employee makes a new election under such subparagraph4 ,such determination may be made at one time for all employees described in the preceding sentence for a plan year1 regardless of individual employee dates of enrollment4 7b7 ,qualified automatic contribution arrangements 7#a7 ,in general ,section #dja7k77#ac77;,c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new clause3 7v7 ,periodic automatic deferral required for post-#bjbd arrangements ,in the case of a qualified automatic contribution arrangement which takes effect after ,december #ca1 #bjbd1 the requirements of this subparagraph shall be treated as met only if1 under the arrangement1 at least every #c plan years each employee-- 7,i7 who is eligible to participate in the arrangement1 and 7,,ii7 who1 at the time of the determination1 has in effect an affirmative election pursuant to clause 7ii7 not to have contributions described in clause 7i7 made1 is treated as having made the election described in clause 7i7 unless the employee makes a new affirmative election under clause 7ii74 ,such determination may be made at one time for all employees described in the preceding sentence for a plan year1 regardless of individual employee dates of enrollment4 7#b7 ,conforming amendments ,clause 7iv7 of section #dja7k77#ac77;,c7 of such ,code is amended-- 7,a7 in the heading1 by inserting for pre-#bjbe arrangements after required2 and 7,b7 by striking ,clause 7i7 and inserting ,in the case of a qualified automatic contribution arrangement in effect before ,january #a1 #bjbe1 clause 7i74 7c7 ,effective date ,the amendments made by this section shall apply to arrangements taking effect after ,december #ca1 #bjbd4 #f4 ,employee ,ownership and ,participation ,initiative 7a7 ,definitions ,in this section3 7#a7 ,existing program ,the term existing program means a program1 designed to promote employee ownership and employee participation in business decisionmaking1 that exists on the date on which the ,secretary is carrying out a responsibility authorized under this section4 7#b7 ,initiative ,the term ,initiative means the ,employee ,ownership and ,participation ,initiative established under subsection 7b74 7#c7 ,new program ,the term new program means a program1 designed to promote employee ownership and employee participation in business decisionmaking1 that does not exist on the date on which the ,secretary is carrying out a responsibility authorized under this section4 7#d7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#e7 ,state ,the term ,state has the meaning given the term under section #c of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cajb74 7b7 ,employee ownership and participation initiative 7#a7 ,establishment ,the ,secretary of ,labor shall establish within the ,department of ,labor an ,employee ,ownership and ,participation ,initiative to promote employee ownership and employee participation in business decisionmaking4 7#b7 ,functions ,in carrying out the ,initiative1 the ,secretary shall-- 7,a7 support within the ,states existing programs designed to promote employee ownership and employee participation in business decisionmaking2 and 7,b7 facilitate within the ,states the formation of new programs designed to promote employee ownership and employee participation in business decisionmaking4 7#c7 ,duties ,to carry out the functions enumerated in paragraph 7#b71 the ,secretary shall-- 7,a7 support new programs and existing programs by-- 7i7 making ,federal grants authorized under subsection 7d72 and 7ii7 acting as a clearinghouse on techniques employed by new programs and existing programs within the ,states1 and disseminating information relating to those techniques to the programs2 and 7,b7 facilitate the formation of new programs1 in ways that include holding or funding an annual conference of representatives from ,states with existing programs1 representatives from ,states developing new programs1 and representatives from ,states without existing programs4 7c7 ,programs regarding employee ownership and participation 7#a7 ,establishment of program ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall establish a program to encourage new programs and existing programs within the ,states to foster employee ownership and employee participation in business decisionmaking throughout the ,united ,states4 7#b7 ,purpose of program ,the purpose of the program established under paragraph 7#a7 is to encourage new and existing programs within the ,states that focus on-- 7,a7 providing education and outreach to inform employees and employers about the possibilities and benefits of employee ownership1 business ownership succession planning1 and employee participation in business decisionmaking1 including providing information about financial education1 employee teams1 open-book management1 and other tools that enable employees to share ideas and information about how their businesses can succeed2 7,b7 providing technical assistance to assist employee efforts to become business owners1 to enable employers and employees to explore and assess the feasibility of transferring full or partial ownership to employees1 and to encourage employees and employers to start new employee-owned businesses2 and 7,c7 training employees and employers with respect to methods of employee participation in open-book management1 work teams1 committees1 and other approaches for seeking greater employee input4 7#c7 ,program details ,the ,secretary may include1 in the program established under paragraph 7#a71 provisions that-- 7,a7 in the case of activities described in paragraph 7#b77;,a7-- 7i7 target key groups1 such as retiring business owners1 senior managers1 unions1 trade associations1 community organizations1 and economic development organizations2 7ii7 encourage cooperation in the organization of workshops and conferences2 and 7iii7 prepare and distribute materials concerning employee ownership and participation1 and business ownership succession planning2 7,b7 in the case of activities described in paragraph 7#b77;,b7-- 7i7 provide preliminary technical assistance to employee groups1 managers1 and retiring owners exploring the possibility of employee ownership2 7ii7 provide for the performance of preliminary feasibility assessments2 7iii7 assist in the funding of objective third-party feasibility studies and preliminary business valuations1 and in selecting and monitoring professionals qualified to conduct such studies2 and 7iv7 provide a data bank to help employees find legal1 financial1 and technical advice in connection with business ownership2 7,c7 in the case of activities described in paragraph 7#b77;,c7-- 7i7 provide for courses on employee participation2 and 7ii7 provide for the development and fostering of networks of employee-owned companies to spread the use of successful participation techniques2 and 7,d7 in the case of training described in paragraph 7#b77;,d7-- 7i7 provide for visits to existing programs by staff from new programs receiving funding under this section2 and 7ii7 provide materials to be used for such training4 7#d7 ,guidance ,the ,secretary shall issue formal guidance1 for recipients of grants awarded under subsection 7d7 and one-stop partners 7as defined in section #c of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cajb77 affiliated with the workforce development systems 7as so defined7 of the ,states1 proposing that programs and other activities funded under this section be-- 7,a7 proactive in encouraging actions and activities that promote employee ownership of1 and participation in1 businesses2 and 7,b7 comprehensive in emphasizing both employee ownership of1 and participation in1 businesses so as to increase productivity and broaden capital ownership4 7d7 ,grants 7#a7 ,in general ,in carrying out the program established under subsection 7c71 the ,secretary may make grants to ,states 7except as provided in paragraph 7#e77 for use in connection with new programs and existing programs within a ,state for-- 7,a7 education and outreach as provided in subsection 7c77#b77;,a72 7,b7 technical assistance as provided in subsection 7c77#b77;,b72 7,c7 training activities for employees and employers as provided in subsection 7c77#b77;,c72 7,d7 activities facilitating cooperation among employee-owned firms2 and 7,e7 training as provided in subsection 7c77#b77;,d7 for new programs provided by participants in existing programs dedicated to the objectives of this section1 except that1 for each fiscal year1 the amount of the grants made for such training shall not exceed #aj percent of the total amount of the grants made under this section4 7#b7 ,amounts and conditions ,the ,secretary shall determine the amount and any conditions for a grant made under this subsection4 ,the amount of the grant shall be subject to paragraph 7#f71 and shall reflect the capacity of the applicant for the grant4 7#c7 ,applications ,each entity desiring a grant under this subsection shall submit an application to the ,secretary at such time1 in such manner1 and accompanied by such information as the ,secretary may reasonably require4 7#d7 ,state applications ,each ,state may sponsor and submit an application under paragraph 7#c7 on behalf of any local entity consisting of a unit of ,state or local government1 ,state-supported institution of higher education1 or nonprofit organization1 meeting the requirements of this section4 7#e7 ,applications by entities 7,a7 ,entity applications ,if a ,state fails to support or establish a program pursuant to this section during any fiscal year1 the ,secretary shall1 in the subsequent fiscal years1 allow local entities described in paragraph 7#d7 from that ,state to make applications for grants under paragraph 7#c7 on their own initiative4 7,b7 ,application screening ,in any case in which a local entity makes an application for a grant pursuant to subparagraph 7,a71 the relevant ,state may take no actions to screen such application4 7#f7 ,limitations ,a recipient of a grant made under this subsection shall not receive1 during a fiscal year1 in the aggregate1 more than the following amounts3 7,a7 ,for fiscal year #bjbc1 #cjj1jjj4 7,b7 ,for fiscal year #bjbd1 #ccj1jjj4 7,c7 ,for fiscal year #bjbe1 #cfc1jjj4 7,d7 ,for fiscal year #bjbf1 #cii1cjj4 7,e7 ,for fiscal year #bjbg1 #dci1bjj4 7#g7 ,annual report ,for each year1 each recipient of a grant under this subsection shall submit to the ,secretary a report describing how grant funds allocated pursuant to this subsection were expended during the #ab-month period preceding the date of the submission of the report4 7e7 ,evaluations ,the ,secretary is authorized to reserve not more than #aj percent of the funds appropriated for a fiscal year to carry out this section for the purposes of conducting evaluations of the grant programs identified in subsection 7d7 and to provide related technical assistance4 7f7 ,reporting ,not later than #cf months after the date of enactment of this ,act1 the ,secretary shall prepare and submit to ,congress a report-- 7#a7 on progress related to employee ownership and participation in businesses in the ,united ,states2 and 7#b7 containing an analysis of critical costs and benefits of activities carried out under this section4 7g7 ,authorizations of appropriations 7#a7 ,in general ,there are authorized to be appropriated for the purpose of making grants pursuant to subsection 7d7 the following3 7,a7 ,for fiscal year #bjbc1 #d1jjj1jjj4 7,b7 ,for fiscal year #bjbd1 #g1jjj1jjj4 7,c7 ,for fiscal year #bjbe1 #aj1jjj1jjj4 7,d7 ,for fiscal year #bjbf1 #ac1jjj1jjj4 7,e7 ,for fiscal year #bjbg1 #af1jjj1jjj4 7#b7 ,administrative expenses ,there are authorized to be appropriated for the purpose of funding the administrative expenses related to the ,initiative1 for each of fiscal years #bjbb through #bjbf1 an amount not in excess of the lesser of-- 7,a7 #cej1jjj2 or 7,b7 #e4j percent of the maximum amount available under paragraph 7#a7 for that fiscal year4 #g4 ,refund to ,rainy ,day ,savings ,program 7a7 ,establishment 7#a7 ,in general ,not later than ,december #ca1 #bjbd1 the ,secretary of the ,treasury or the ,secretary's delegate 7referred to in this subsection as the ,secretary7 shall establish and implement a program 7referred to in this subsection as the ,refund to ,rainy ,day ,savings ,program7 to allow participating taxpayers1 pursuant to the requirements established under this section1 to defer payment on #bj percent of the amount which would otherwise be refunded to such taxpayer as an overpayment 7as described in section #fdja of the ,internal ,revenue ,code of #aihf74 7#b7 ,period of deferral ,except as provided under paragraph 7#c77;,e71 a participating taxpayer may elect to defer payment of the amount described in paragraph 7#a7 and have such amount deposited in the ,rainy ,day ,fund 7as described in paragraph 7#c774 7#c7 ,rainy day fund 7,a7 ,in general ,the ,secretary shall establish in the ,treasury a fund1 in such manner as the ,secretary determines to be appropriate1 to be known as the ,rainy ,day ,fund1 consisting of any amounts described in paragraph 7#a7 on which payment has been deferred by participating taxpayers4 7,b7 ,investment ,any amounts deposited in the ,rainy ,day ,fund shall be invested by the ,secretary1 in ,united ,states ,treasury securities issued under chapter #ca of title #ca1 ,united ,states ,code1 that are suitable for the needs of the ,rainy ,day ,fund4 7,c7 ,disbursements from fund 7i7 ,in general ,on the date that is #ahj days after the date of deposit in the ,rainy ,day ,fund of an amount deferred by such taxpayer under paragraph 7#a71 the amounts in the ,rainy ,day ,fund shall be made available to the ,secretary to distribute to such taxpayer in an amount equal to such amount plus any interest accrued on such amount 7as determined under subparagraph 7,d774 7ii7 ,distributed to taxpayers ,the amounts described in clause 7i7 shall be distributed to the account identified by the participating taxpayer under paragraph 7#d77;,b74 7,d7 ,interest accrued ,the amount of interest accrued on the amount deferred by a participating taxpayer under subsection 7a7 shall be determined by the ,secretary based upon the return on the investment of such amounts under subparagraph 7,b74 7,e7 ,early withdrawal 7i7 ,in general ,as soon as possible after receipt by the ,secretary of the individual income tax return of the participating taxpayer and ,october #ae of the applicable year1 such taxpayer may elect to terminate the deferral of the amount described under paragraph 7#a7 and receive a distribution from the ,rainy ,day ,fund equal to such amount and any interest which has accrued on such amount up to that date4 7ii7 ,complete withdrawal ,a participating taxpayer making an election under clause 7i7 must terminate deferral of the full amount described under paragraph 7#a71 and such amount shall be distributed to the bank account identified by the participating taxpayer under paragraph 7#d77;,b74 7#d7 ,participating taxpayer ,for purposes of this section1 the term participating taxpayer means a taxpayer who-- 7,a7 prior to the due date for filing the return of tax for such taxable year1 elects to participate in the ,refund to ,rainy ,day ,savings ,program1 in accordance with regulations to be issued by the ,secretary2 and 7,b7 provides the ,secretary with an account and routing number or any other financial information deemed necessary by the ,secretary for purposes of subparagraphs 7,c77ii7 and 7,e77ii7 of paragraph 7#c74 7#e7 ,forms ,the ,secretary shall ensure that the election to defer payment of the amount described in paragraph 7#a7 may be claimed on appropriate tax forms4 7#f7 ,implementation 7,a7 ,educational materials and outreach ,the ,secretary shall-- 7i7 design educational materials for taxpayers regarding financial savings and the ,refund to ,rainy ,day ,savings ,program1 7ii7 publicly disseminate and distribute such materials during the first calendar quarter of each calendar year and following disbursement of amounts described in paragraph 7#c77;,c71 and 7iii7 engage in outreach regarding the ,refund to ,rainy ,day ,savings ,program to the ,volunteer ,income ,tax ,assistance program and paid tax preparers4 7,b7 ,information for participating taxpayers ,the ,secretary shall ensure that a participating taxpayer is able to electronically verify the status of the amount deferred by such taxpayer under paragraph 7#a71 including any interest accrued on such amount and the status of any distribution4 7,c7 ,federally funded benefits ,any amounts described in paragraph 7#a7 that are distributed to a participating taxpayer1 including any interest accrued on such amount1 shall be treated in the same manner as any refund made to such taxpayer under section #cb of the ,internal ,revenue ,code of #aihf for purposes of determining the eligibility of such taxpayer for benefits or assistance1 or the amount or extent of benefits or assistance1 under any ,federal program or under any ,state or local program financed in whole or in part with ,federal funds4 7b7 ,assets for independence innovation demonstration projects 7#a7 ,reauthorization ,the ,assets for ,independence ,act 7#db ,u4,s4,c4 #fjd note7 is amended-- 7,a7 in section #daf1 by inserting 1 and1 subject to section #dag1 #be1jjj1jjj for each of fiscal years #bjbd1 #bjbe1 #bjbf1 #bjbg1 and #bjbh1 to remain available until expendedat the end before the period2 and 7,b7 by adding at the end the following new section3 #dag4 ,reservation of funds 7a7 ,in general ,subject to subsections 7b7 and 7c71 from the funds appropriated for each of fiscal years #bjbd1 #bjbe1 #bjbf1 #bjbg1 and #bjbh under section #daf1 the ,secretary shall reserve-- 7#a7 #c1jjj1jjj for general research and evaluation2 and 7#b7 any amounts remaining after application of paragraph 7#a7 to fund ,assets for ,independence innovation projects under section #dah4 7b7 ,pilot program funding ,from the amounts reserved under subsection 7a7 for each of fiscal years #bjbd1 #bjbe1 and #bjbf1 the ,secretary shall make available for operating the pilot program established under section #g7;c7 of the ,protecting ,america's ,retirement ,security ,act of #bjbb-- 7#a7 #ej percent of the amount reserved for the relevant fiscal year under paragraph 7#a7 of subsection 7a7 7after any adjustment under subsection 7c772 and 7#b7 #be percent of the amount reserved for the relevant fiscal year under paragraph 7#b7 of subsection 7a7 7after any adjustment under subsection 7c774 7c7 ,proportional adjustment ,in any of fiscal years #bjbd1 #bjbe1 #bjbf1 #bjbg1 and #bjbh1 if the amount appropriated for such fiscal year is greater or less than the amount authorized for such fiscal year under section #daf1 the amounts reserved under subsection 7a7 shall be increased or decreased for such fiscal year so that each such amount bears the same proportion to the amount appropriated as each of the amounts reserved under such subsection bears to the amount authorized4 4 7#b7 ,establishment of innovation program ,the ,assets for ,independence ,act 7#db ,u4,s4,c4 #fjd note71 as amended by paragraph 7#a71 is further amended by adding at the end the following new section3 #dah4 ,assets for ,independence innovation projects 7a7 ,in general ,the ,secretary is authorized to make grants to qualified entities to conduct ,assets for ,independence innovation projects under this section4 7b7 ,definitions ,for purposes of this section3 7#a7 ,assets for ,independence innovation project ,the term ,assets for ,independence innovation project means a demonstration project carried out by a qualified entity under this section4 7#b7 ,innovation development account ,the term innovation development account means an account that is established in a federally insured financial institution or a ,state insured financial institution and meets such other requirements as are established by the ,secretary4 7c7 ,application 7#a7 ,criteria and preferences 7,a7 ,in general ,subject to subparagraph 7,b71 in considering an application to conduct an ,assets for ,independence innovation project1 the ,secretary shall apply subsections 7c7 and 7d7 of section #dje to the application in the same manner that such subsections apply to an application to conduct a demonstration project under section #dje4 7,b7 ,modification ,for purposes of this paragraph1 paragraph 7#a7 of section #dje7;c7 shall be applied without regard to the phrase through activities requiring one or more qualified expenses4 7#b7 ,approval of ,assets for ,independence innovation projects ,not later than #ab months after the date of the enactment of this section1 the ,secretary shall1 on a competitive basis1 approve such applications to conduct ,assets for ,independence innovation projects as the ,secretary considers to be appropriate1 taking into account the considerations required by paragraph 7#a74 ,the ,secretary shall ensure1 to the maximum extent practicable1 that the applications that are approved involve a range of communities 7spread out both geographically and in rural and urban areas7 and diverse populations4 7d7 ,project duration and grant amount 7#a7 ,duration ,the ,secretary shall award grants under this section for a period not to exceed #e project years4 7#b7 ,grant amount ,for each project year of an ,assets for ,independence innovation project approved under this section1 the ,secretary may make a grant to the qualified entity authorized to conduct the project4 ,in making such a grant1 the ,secretary shall make the grant on the first day of the project year in an amount not to exceed the lesser of-- 7,a7 the aggregate amount of funds committed as matching contributions from non-,federal public or private sector sources2 or 7,b7 #a1jjj1jjj4 7e7 ,eligibility and selection of individuals to participate in an ,assets for ,independence innovation project 7#a7 ,eligibility criteria ,subject to the approval of the ,secretary1 each qualified entity conducting an ,assets for ,independence innovation project shall establish eligibility requirements for participants in the project4 ,such requirements shall-- 7,a7 be more expansive than the requirements established under section #djh2 and 7,b7 ensure that eligibility is limited to low-income individuals4 7#b7 ,selection of individuals to participate ,each qualified entity conducting an ,assets for ,independence innovation project shall select1 from among the individuals that meet the eligibility requirements established by the entity under paragraph 7#a71 the individuals-- 7,a7 that the qualified entity determines to be most appropriate to participate2 and 7,b7 to whom the qualified entity will make disbursements or deposits in accordance with subsection 7f74 7f7 ,disbursements by qualified entities 7#a7 ,in general ,each qualified entity conducting an ,assets for ,independence innovation project shall1 in a manner consistent with the program requirements established by such entity1 disburse to a third-party or deposit into the innovation development account of each individual participating in the project from the funds described in subsection 7d77#b71 a matching contribution of not less than #j4ej and not more than #h for every #a deposited in the account by a project participant1 except that the rate of matching shall be equal for all individuals participating in the project conducted by such qualified entity4 7#b7 ,limitation on disbursements for an individual ,not more than #e1jjj from a grant made under subsection 7d77#a7 shall be provided to any one individual over the course of the ,assets for ,independence innovation project4 7#c7 ,limitation on disbursements for a household ,not more than #aj1jjj from a grant made under subsection 7d77#a7 shall be provided to any one household over the course of the ,assets for ,independence innovation project4 7#d7 ,adjustment for inflation 7,a7 ,in general ,for each calendar year after #bjbc1 the dollar amounts in paragraphs 7#b7 and 7#c7 shall be increased by an amount equal to the product of-- 7i7 such dollar amount1 and 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 of the ,internal ,revenue ,code of #aihf for the calendar year1 determined by substituting #bjbb for #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,if any increase determined under subparagraph 7,a7 is not a multiple of #ej1 such increase shall be rounded up to the next lowest multiple of #ej4 4 7#c7 ,conforming amendments ,the ,assets for ,independence ,act 7#db ,u4,s4,c4 #fjd note71 as amended by paragraphs 7#a7 and 7#b71 is further amended-- 7,a7 in section #djd7b71 by inserting or section #dah before the period2 7,b7 in section #djf-- 7i7 in subsection 7a71 by striking to conduct a demonstration project under this title and inserting under section #dje2 and 7ii7 in subsection 7b71 by striking conducted under this title and inserting approved under section #dje2 7,c7 in section #djg-- 7i7 in subsection 7c7-- 7,i7 in paragraph 7#a7-- 7aa7 in subparagraph 7,a71 by inserting or1 in the case of a participant in a project conducted under section #dah1 other permitted expenses after qualified expenses2 and 7bb7 in subparagraph 7,b71 by inserting or subsection 7f7 of section #dah after section #daj2 and 7,,ii7 in paragraph 7#c71 by inserting or section #dah7;d77#a7;after section #djf7;b72 and 7ii7 in subsection 7d77#b77;,a71 by inserting or section #dah7;d77#a7 after section #djf7;b72 7,d7 in section #djh1 by striking conducted under this title each place it appears and inserting approved under section #dje2 7,e7 in section #dji1 by striking conducted under this title and inserting approved under section #dje2 7,f7 in section #daj1 by striking under this title and inserting conducting a demonstration project approved under section #dje2 7,g7 in section #dac7;a71 by inserting or section #dah7;c7 after under section #dje2 and 7,h7 in section #dae1 by inserting or innovation development account after individual development account4 7c7 ,matched refund to rainy day savings pilot program 7#a7 ,in general ,not later than #f months after the date of the enactment of this ,act and using the funds made available pursuant to section #dag7;b7 of the ,assets for ,independence ,act1 the ,secretary of ,health and ,human ,services1 acting through the ,director of ,community ,services 7in this section referred to as the ,secretary71 shall establish under this subsection a matched savings account pilot program to encourage saving by eligible individuals4 ,under the pilot program1 a qualified entity may apply to the ,secretary for a grant to conduct a pilot project described in paragraph 7#b7 7in this section referred to as a pilot project74 ,the pilot program shall operate for a period of #c years4 7#b7 ,pilot project described 7,a7 ,in general ,a pilot project is a project in which a qualified entity establishes a matched savings program that meets the requirements of subparagraph 7,b7 for eligible individuals who are selected by the entity to participate in the program4 7,b7 ,requirements 7i7 ,deposits into direct deposit accounts 7,i7 ,in general ,a matched savings program established as part of a pilot project shall match amounts saved by each eligible individual participating in the pilot project-- 7aa7 with the amount matched to be equal to or less than the amount of any payment deferred by such individual under the ,refund to ,rainy ,day ,savings ,program established in subsection 7a77#a72 and 7bb7 with the rate of matching to be equal for all eligible individuals participating in the program4 7,,ii7 ,timing ,any amount described in subclause 7,i7 shall not be distributed to an eligible individual until the amounts described in subparagraphs 7,c77ii7 or 7,e77ii7 of subsection 7a77#a7 have been distributed to the bank account identified by such individual4 7ii7 ,evaluation of program by independent research organization 7,i7 ,in general ,from amounts made available under section #dag7;b77#b7 of the ,assets for ,independence ,act1 as added by subsection 7b77#a77;,b71 the ,secretary shall enter into a contract with an independent research organization for purposes of evaluating pilot projects conducted under this section4 7,,ii7 ,coordination ,each qualified entity that establishes a matched savings program as part of a pilot project shall collaborate with the independent research organization described in subclause 7,i7 to evaluate the outcomes and impact of the project4 7,,iii7 ,impact ,the evaluation described in subclause 7,i7 shall include an examination of the demographic characteristics of the individuals participating in the pilot project1 such as gender1 race1 age1 geographic location1 and family makeup1 and how the impacts of the project vary among different demographic groups and the effects of the pilot program on retirement savings for eligible individuals4 7,,iv7 ,program features ,the program features to be evaluated through the pilot projects conducted under this section may include-- 7aa7 different levels of matching contributions by qualified entities2 7bb7 lock-out periods during which an eligible individual may not make withdrawals from their account2 and 7cc7 educational materials intended to promote savings4 7,v7 ,safeguarding privacy ,any contract entered into under this clause shall require the selected independent research organization to take all necessary and proper precautions to protect eligible individuals' privacy and personally identifiable information when conducting the evaluation4 7,c7 ,duration ,a pilot project shall be for a duration of not more than #c years4 7,d7 ,federally funded benefits ,any amounts described in subparagraph 7,b77i7 which are distributed to an eligible individual shall be treated in the same manner as any refund made to such taxpayer under section #cb of the ,internal ,revenue ,code of #aihf for purposes of determining the eligibility of such taxpayer for benefits or assistance1 or the amount or extent of benefits or assistance1 under any ,federal program or under any ,state or local program financed in whole or in part with ,federal funds4 7#c7 ,strategic communications plan ,the ,secretary shall devise a strategic communications plan to ensure a successful pilot program4 7#d7 ,annual report to congress ,the ,secretary shall submit an annual report to ,congress on the progress and outcomes of the pilot program established under this section4 7#e7 ,definitions ,in this subsection3 7,a7 ,eligible individual ,the term eligible individual means an individual who-- 7i7 has deferred payment of the amount described in subsection 7a77#a7 under the ,refund to ,rainy ,day ,savings ,program established in such subsection1 and 7ii7 meets the eligibility requirements under section #djh of the ,assets for ,independence ,act1 except that subsection 7a77#b7 of such section shall not apply4 7,b7 ,qualified entity 7i7 ,in general ,the term qualified entity means-- 7,i7 one or more not-for-profit organizations described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of such ,code2 7,,ii7 a ,state or local government agency1 or a tribal government1 submitting an application to conduct a pilot project jointly with an organization described in subclause 7,i72 7,,iii7 a site that offers free tax help to individuals who qualify through the ,internal ,revenue ,service's ,voluntary ,income ,tax ,assistance or ,tax ,counseling for the ,elderly programs2 or 7,,iv7 an entity that-- 7aa7 is-- 7,,aa7 a credit union designated as a low-income credit union by the ,national ,credit ,union ,administration2 or 7,,bb7 an organization designated as a community development financial institution by the ,secretary of the ,treasury 7or the ,community ,development ,financial ,institutions ,fund72 and 7bb7 can demonstrate a collaborative relationship with a local community-based organization whose activities are designed to address poverty in the community and the needs of community members for economic independence and stability4 7,v7 ,rule of construction ,nothing in this paragraph shall be construed as preventing an organization described in clause 7i77,i7 from collaborating with a financial institution or for-profit community development corporation to carry out the purposes of this section4 ,december #bj1 #bjbb;,committee on ,ways and ,means discharged2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed