US Congress House Bill 3897 (Prior Session Legislation)

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Spectrum: Partisan Bill (Democrat 10-0)
Status: Introduced on January 16 2014 - 25% progression, died in committee
Action: 2014-01-16 - Referred to the House Committee on Ways and Means.
Pending: House Ways And Means Committee
Text: Latest bill text (Introduced) [PDF]

Amends the Internal Revenue Code, with respect to the tax exemption for structured settlement factoring transactions (i.e., transfers of the right to receive periodic payments under a settlement of a legal claim for damages in exchange for a lump sum payment) to require that court orders approving such transfers include additional requirements, including that: (1) the annual discount rate of the consideration for a transfer does not exceed the prime interest rate plus 5%; (2) the aggregate amount of charges, fees, and other expenses payable by the payee of the lump sum payment do not exceed 2% of the value of the consideration to the payee; (3) the payee is not liable for any penalty or forfeiture if the transfer does not satisfy the additional requirements imposed by this Act; (4) the transferee (the entity receiving the right to the periodic payments) has given written notice of its name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of such notice with the state court or other authority issuing the order approving the transfer; (5) the transfer is fair and reasonable; and (6) the transferee makes certain disclosures to the payee.

To amend the Internal Revenue Code of 1986 to strengthen the rules for approved structured settlement factoring transactions.

Rep. Matthew Cartwright [D-PA]	Rep. Bruce Braley [D-IA]	Rep. Raul Grijalva [D-AZ]	Rep. Brian Higgins [D-NY]
Rep. Michael Honda [D-CA]	Rep. Barbara Lee [D-CA]	Rep. John Lewis [D-GA]	Rep. Jim McDermott [D-WA]
Rep. Richard Neal [D-MA]	Rep. Janice Schakowsky [D-IL]

Date	Chamber	Action
2014-01-16	House	Referred to the House Committee on Ways and Means.

Type	Source
Summary	https://www.congress.gov/bill/113th-congress/house-bill/3897/all-info
Text	https://www.congress.gov/113/bills/hr3897/BILLS-113hr3897ih.pdf