Responsible Relief for Americans Act

I 116TH CONGRESS 2D SESSION H. R. 6396 To provide tax and regulatory relief and health care flexibility to individuals and businesses affected by the 2020 coronavirus pandemic. IN THE HOUSE OF REPRESENTATIVES MARCH 26, 2020 Mr. BIGGS (for himself, Mr. HARRIS, Mr. PERRY, Mr. ROY, and Mr. WEBER of Texas) introduced the following bill; which was referred to the Com- mittee on Ways and Means, and in addition to the Committees on Edu- cation and Labor, Oversight and Reform, House Administration, Energy and Commerce, Small Business, the Judiciary, Financial Services, Vet- erans’ Affairs, and Agriculture, for a period to be subsequently deter- mined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide tax and regulatory relief and health care flexi- bility to individuals and businesses affected by the 2020 coronavirus pandemic. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as ‘‘Responsible Relief for 4 Americans Act’’. 5 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 6396 IH TITLE I—ELIMINATING PAID 1 LEAVE MANDATE 2 SECTION 1. ELIMINATING PAID LEAVE MANDATE. 3 (a) Strike section 102(a)(1)(F) of the Family Medical 4 Leave Act of 1993 (29 U.S.C. 2612(a)(1)(F)). 5 (b) Strike section 110 of the Family Medical Leave 6 Act of 1993 (29 U.S.C. 2920). 7 (c) Strike division E of Public Law 116–127. 8 TITLE II—ADDRESSING PHARMA- 9 CEUTICAL SUPPLY CHAIN 10 SECTION 1. SUPPLY CHAIN REPORTING. 11 (a) Section 506C of the Federal Food, Drug, and 12 Cosmetic Act (21 U.S.C. 356c) is amended— 13 (1) in subsection (a)— 14 (A) in paragraph (1)(C), by inserting ‘‘or 15 any such drug that is critical to the public 16 health during a public health emergency deter- 17 mined under section 319 of the Public Health 18 Service Act’’ after ‘‘during surgery’’; and 19 (B) in the flush text at the end— 20 (i) by inserting ‘‘, or a discontinuance 21 or an interruption in the manufacture of 22 the active pharmaceutical ingredients of 23 such drug,’’ before ‘‘that is likely’’; and 24 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 6396 IH (ii) by adding at the end the fol- 1 lowing: ‘‘Notification under this subsection 2 shall include disclosure of reasons for the 3 discontinuation or interruption, as applica- 4 ble; if an active pharmaceutical ingredient 5 is a reason for, or risk factor in, such dis- 6 continuation or interruption, the source of 7 the active pharmaceutical ingredient and 8 any alternative sources for the active phar- 9 maceutical ingredient known by the manu- 10 facturer; whether any associated medical 11 devices used for preparation or administra- 12 tion included in the finished dosage form is 13 a reason for, or a risk factor in, such dis- 14 continuation or interruption; the expected 15 duration of the interruption; and such 16 other information as the Secretary may re- 17 quire.’’; and 18 (2) by adding at the end the following: 19 ‘‘(j) ADDITIONAL MANUFACTURER REPORTING FOR 20 ESSENTIAL DRUGS AND DEVICES.—Each manufacturer 21 of a drug described in subsection (a) shall provide to the 22 Food and Drug Administration, on an annual basis, or 23 more frequently at the request of the Secretary, informa- 24 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 6396 IH tion related to the manufacturing capacity of such drug. 1 Such information shall include— 2 ‘‘(1) details about— 3 ‘‘(A) all locations of production; 4 ‘‘(B) the sourcing of all component parts; 5 ‘‘(C) the sourcing of any active pharma- 6 ceutical ingredients; and 7 ‘‘(D) the use of any scarce or raw mate- 8 rials; and 9 ‘‘(2) any other information determined by the 10 Secretary to be relevant to the security of the supply 11 chain of the drug or device.’’. 12 TITLE III—SMALL BUSINESS 13 PROSPERITY ACT 14 SECTION 1. INCREASE AND EXPANSION OF DEDUCTION 15 FOR QUALIFIED BUSINESS INCOME. 16 (a) DEDUCTION MADE PERMANENT.—Section 199A 17 of the Internal Revenue Code of 1986 is amended by strik- 18 ing subsection (i). 19 (b) DEDUCTION TO ACHIEVE A TOP RATE ON 20 QUALIFIED BUSINESS INCOME OF 21 PERCENT.—Sub- 21 sections (a)(2), (b)(1)(B), and (b)(2)(A) of section 199A 22 of such Code are each amended by striking ‘‘20 percent’’ 23 and inserting ‘‘43 percent (47 percent in the case of any 24 taxable year beginning after December 31, 2025)’’. 25 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 6396 IH (c) REPEAL OF LIMITATION BASED ON W–2 WAGES 1 PAID WITH RESPECT TO THE TRADE OR BUSINESS.— 2 Section 199A(b)(2) of section 199A of such Code, as 3 amended by subsection (a), is amended to read as follows: 4 ‘‘(2) DETERMINATION OF DEDUCTIBLE 5 AMOUNT FOR EACH TRADE OR BUSINESS.—The 6 amount determined under this paragraph with re- 7 spect to any qualified trade or business is 43 percent 8 (47 percent in the case of any taxable year begin- 9 ning after December 31, 2025) of the taxpayer’s 10 qualified business income with respect to the quali- 11 fied trade or business.’’. 12 (d) REPEAL OF EXCLUSION OF SPECIFIED SERVICE 13 TRADES OR BUSINESSES.—Section 199A(d) of such Code 14 is amended to read as follows: 15 ‘‘(d) QUALIFIED TRADE OR BUSINESS.—For pur- 16 poses of this section, the term ‘qualified trade or business’ 17 means any trade or business other than the trade or busi- 18 ness of performing services as an employee.’’. 19 (e) CONFORMING AMENDMENTS.— 20 (1) Section 199A(b) of such Code, as amended 21 by subsection (d), is amended— 22 (A) by striking paragraphs (3), (4), and 23 (6), and redesignating paragraphs (5) and (7) 24 as paragraphs (3) and (4); and 25 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 6396 IH (B) by striking ‘‘the lesser of—’’ and all 1 that follows in paragraph (4) (as so redesig- 2 nated) and inserting ‘‘9 percent of so much of 3 the qualified business income with respect to 4 such trade or business as is properly allocable 5 to qualified payments received from such coop- 6 erative’’. 7 (2) Section 199A(e) of such Code is amended 8 by striking paragraph (2). 9 (3) Section 199A(f)(1) of such Code is amended 10 to read as follows: 11 ‘‘(1) APPLICATION TO PARTNERSHIPS AND S 12 CORPORATIONS.— 13 ‘‘(A) IN GENERAL.—In the case of a part- 14 nership or S corporation— 15 ‘‘(i) this section shall be applied at the 16 partner or shareholder level, and 17 ‘‘(ii) each partner or shareholder shall 18 take into account such person’s allocable 19 share of each qualified item of income, 20 gain, deduction, and loss. 21 For purposes of this subparagraph, in the case 22 of an S corporation, an allocable share shall be 23 the shareholder’s pro rata share of an item. 24 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 6396 IH ‘‘(B) TREATMENT OF TRADES OR BUSI- 1 NESS IN PUERTO RICO.—In the case of any tax- 2 payer with qualified business income from 3 sources within the commonwealth of Puerto 4 Rico, if all such income is taxable under section 5 1 for such taxable year, then for purposes of 6 determining the qualified business income of 7 such taxpayer for such taxable year, the term 8 ‘United States’ shall include the Commonwealth 9 of Puerto Rico.’’. 10 (4) Section 199A(f)(4)(A) of such Code is 11 amended by striking ‘‘and wages’’. 12 (5) Section 199A(g)(1) of such Code is amend- 13 ed by striking subparagraph (B) and redesignating 14 subparagraph (C) as subparagraph (B). 15 (6) Section 199A of such Code is amended by 16 striking subsection (h). 17 (f) EFFECTIVE DATE.—The amendments made by 18 this section shall apply to taxable years beginning after 19 December 31, 2019. 20 SEC. 2. NO TAXABLE EVENT FOR CHANGE OF CORPORATE 21 FORM. 22 Notwithstanding any provision of the Internal Rev- 23 enue Code of 1986, a change in the organizational struc- 24 ture of a corporation, however organized, into another or- 25 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 6396 IH ganizational structure is not a taxable event for the pur- 1 poses of such Code if there is no change among the own- 2 ers, their ownership interests, or the assets of the organi- 3 zation (other than a de minimis change in such assets). 4 The preceding sentence shall apply to changes in organiza- 5 tional structure occurring after December 31, 2019. 6 SEC. 3. REPEAL OF ESTATE TAX AND RETENTION OF BASIS 7 STEP-UP. 8 Effective for estates of decedents dying after Decem- 9 ber 31, 2019, chapter 11 of the Internal Revenue Code 10 of 1986 is repealed. 11 TITLE IV—KEEPING AMERICAN 12 WORKERS EMPLOYED AND 13 PAID ACT 14 SECTION 1. DEFINITIONS. 15 In this title— 16 (1) the terms ‘‘Administration’’ and ‘‘Adminis- 17 trator’’ mean the Small Business Administration 18 and the Administrator thereof, respectively; 19 (2) the term ‘‘covered small business concern’’ 20 means a small business concern that has experi- 21 enced, as a result of COVID–19— 22 (A) supply chain disruptions, including 23 changes in— 24 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 6396 IH (i) quantity and lead time, including 1 the number of shipments of components 2 and delays in shipments; 3 (ii) quality, including shortages in 4 supply for quality control reasons; and 5 (iii) technology, including a com- 6 promised payment network; 7 (B) staffing challenges; 8 (C) a decrease in sales or customers; or 9 (D) a closure; and 10 (3) the term ‘‘small business concern’’ has the 11 meaning given the term in section 3 of the Small 12 Business Act (15 U.S.C. 636). 13 SEC. 2. PAYCHECK PROTECTION PROGRAM. 14 (a) IN GENERAL.—Section 7(a) of the Small Busi- 15 ness Act (15 U.S.C. 636(a)) is amended— 16 (1) in paragraph (2)— 17 (A) in subparagraph (A), in the matter 18 preceding clause (i), by striking ‘‘and (E)’’ and 19 inserting ‘‘(E), and (F)’’; and 20 (B) by adding at the end the following: 21 ‘‘(F) PARTICIPATION IN THE PAYCHECK 22 PROTECTION PROGRAM.—In an agreement to 23 participate in a loan on a deferred basis under 24 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 6396 IH paragraph (36), the participation by the Admin- 1 istration shall be 100 percent.’’; and 2 (2) by adding at the end the following: 3 ‘‘(36) PAYCHECK PROTECTION PROGRAM.— 4 ‘‘(A) DEFINITIONS.—In this paragraph— 5 ‘‘(i) the terms ‘appropriate Federal 6 banking agency’ and ‘insured depository 7 institution’ have the meanings given those 8 terms in section 3 of the Federal Deposit 9 Insurance Act (12 U.S.C. 1813); 10 ‘‘(ii) the term ‘covered loan’ means a 11 loan made under this paragraph during the 12 covered period; 13 ‘‘(iii) the term ‘covered period’ means 14 the period beginning on February 15, 15 2020, and ending on June 30, 2020; 16 ‘‘(iv) the term ‘eligible recipient’ 17 means an individual or entity that is eligi- 18 ble to receive a covered loan; 19 ‘‘(v) the term ‘eligible self-employed 20 individual’ has the meaning given the term 21 in section 7002(b) of the Families First 22 Coronavirus Response Act (Public Law 23 116–127); 24 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 6396 IH ‘‘(vi) the term ‘nonprofit organization’ 1 means an organization that is described in 2 section 501(c)(3) of the Internal Revenue 3 Code of 1986 and that is exempt from tax- 4 ation under section 501(a) of such Code; 5 ‘‘(vii) the term ‘payroll costs’— 6 ‘‘(I) means— 7 ‘‘(aa) the sum of payments 8 of any compensation with respect 9 to employees that is a— 10 ‘‘(AA) salary or wage; 11 ‘‘(BB) payment of cash 12 tip or equivalent; 13 ‘‘(CC) payment for va- 14 cation, parental, family, 15 medical, or sick leave; 16 ‘‘(DD) allowance for 17 dismissal or separation; 18 ‘‘(EE) payment re- 19 quired for the provisions of 20 group health care benefits, 21 including insurance pre- 22 miums; 23 ‘‘(FF) payment of any 24 retirement benefit; or 25 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 6396 IH ‘‘(GG) payment of 1 State or local tax assessed 2 on the compensation of em- 3 ployees; and 4 ‘‘(bb) the sum of payments 5 of any compensation to a sole 6 proprietor or independent con- 7 tractor that is a wage, commis- 8 sion, or similar compensation and 9 that is in an amount that is not 10 more than $100,000 in 1 year, as 11 prorated for the covered period; 12 and 13 ‘‘(II) shall not include— 14 ‘‘(aa) the compensation of 15 an individual employee in excess 16 of an annual salary of $100,000, 17 as prorated for the covered pe- 18 riod; 19 ‘‘(bb) taxes imposed or with- 20 held under chapters 21, 22, or 24 21 of the Internal Revenue Code of 22 1986 during the covered period; 23 ‘‘(cc) any compensation of 24 an employee whose principal 25 VerDate Sep 11 2014 21:29 May 14, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H6396.IH H6396 pbinns on DSKJLVW7X2PROD with BILLS 13 •HR 6396 IH place of residence is outside of 1 the United States; 2 ‘‘(dd) qualified sick leave 3 wages for which a credit is al- 4 lowed under section 7001 of the 5 Families First Coronavirus Re- 6 sponse Act (Public Law 116– 7 127); or 8 ‘‘(ee) qualified family leave 9 wages for which a credit is al- 10 lowed under section 7003 of the 11 Families First Coronavirus Re- 12 sponse Act (Public Law 116– 13 127); and 14 ‘‘(viii) the term ‘veterans organization’ 15 means an organization that is described in 16 section 501(c)(19) of the Internal Revenue 17 Code that is exempt from taxation under 18 section 501(a) of such Code. 19 ‘‘(B) SMALL BUSINESS INTERRUPTION 20 LOANS.—Except as otherwise provided in this 21 paragraph, the Administrator may guarantee 22 covered loans under the same terms, conditions, [Text truncated for display. 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