S. 953Senate113th Congress (2013-2015)Failed

Student Loan Affordability Act

Sponsored by Jack ReedSen. Jack Reed (D-RI)
Introduced May 14, 2013

Legislative Activity

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5 earlier actions
SenateFloor Latest Action

Cloture on the motion to proceed to measure not invoked in Senate by Yea-Nay Vote. 51 - 46. Record Vote Number: 143. (consideration: CR S3977-3978)

June 6, 2013

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SenateIntro Referral

Introduced in Senate

May 14, 2013

SenateCalendars

Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.

May 14, 2013

SenateCalendars

Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 74.

May 15, 2013

SenateFloor

Motion to proceed to consideration of measure, by unanimous consent, made in Senate. (consideration: CR S3949)

June 4, 2013

SenateFloor

Cloture motion on the motion to proceed to measure presented in Senate. (consideration: CR S3949; text: CR S3949)

June 4, 2013

SenateFloor

Cloture on the motion to proceed to measure not invoked in Senate by Yea-Nay Vote. 51 - 46. Record Vote Number: 143. (consideration: CR S3977-3978)

June 6, 2013

Floor Debate

22 members

What members said about S. 953 on the floor

8 Republicans13 Democrats1 Independent
Tom Coburn
Sen. Tom CoburnR-OK · Jun 4, 2013

Mr. President, I somewhat associate myself with the remarks of the Senator from Louisiana. We have unwound because we don't want to have real debates and real votes. We just fixed the flood insurance…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Jun 4, 2013

Madam President, I would like to yield 5 minutes to my friend Senator Blunt and then reclaim the floor. Madam President, American summertime is when we celebrate and commemorate the patriots who…

Robert Menendez
Sen. Robert MenendezD-NJ · Jun 11, 2013

Madam President, let me first recognize the incredible work of the distinguished chairman of the Judiciary Committee who worked through a very open, transparent, fair process that led to 130-…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jun 11, 2013

Mr. President, I call up my amendment No. 1183, which is at the desk. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with. Mr. President, I note that…

Bernard Sanders
Sen. Bernard SandersI-VT · Jun 4, 2013

Madam President, I ask unanimous consent the order for the quorum call be rescinded. Madam President, I rise this afternoon to say a few words about the immigration reform bill that, as I understand…

Show 8 more
Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Jun 13, 2013

Mr. President, I take this time to speak in strong support of the immigration bill currently on the floor of the Senate. First and foremost, we need an immigration system that is fair. We are a…

John Barrasso
Sen. John BarrassoR-WY · Jun 4, 2013

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I ask unanimous consent that the Senator from Ohio, Mr. Brown, speak after me for up to 10…

Mazie K. Hirono
Sen. Mazie K. HironoD-HI · Jun 13, 2013

Mr. President, I believe hope and fairness lie at the core of what makes our country great. Fifty years ago, President Kennedy called on the country to embrace civil rights legislation that would end…

Debbie Stabenow
Sen. Debbie StabenowD-MI · Jun 4, 2013

Madam President, I suggest the absence of a quorum. Mr. President, will the Senator yield for a question? I thank the Senator. Mr. President, I thank my friend. Before the Senator proceeds with his…

Richard Burr
Sen. Richard BurrR-NC · Jun 13, 2013

Madam President, reserving the right to object, my good friend and colleague from Massachusetts stated that students in Massachusetts have come up and said: Senator, fix the student loan program. Fix…

Elizabeth Warren
Sen. Elizabeth WarrenD-MA · Jun 13, 2013

Madam President, in less than 3 weeks the interest rates on subsidized student loans will double if Congress fails to act. This is not only wrong, it is unnecessary. Senator Harkin and Senator Reed…

Jeff Flake
Sen. Jeff FlakeR-AZ · Jun 4, 2013

Madam President, the Senate, I am learning, is an institution bound by tradition and precedent. One of the time-honored and worthwhile traditions in this body is that new Senators, for at least the…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Jun 4, 2013

Mr. President, I object. Reserving the right to object, I have some difficulty with the amendment the Senator from Arizona wishes to discuss. I have been trying to get a vote on amendment No. 1113 on…

Show 11 more
Lamar Alexander
Sen. Lamar AlexanderR-TN · Jun 6, 2013

Mr. President, I would like to congratulate the Senator from North Carolina for his proposal. The two votes we are having today are like the opening act at the circus, and hopefully the main event…

Richard Burr
Sen. Richard BurrR-NC · Jun 6, 2013

Mr. President, I am here to say to my colleagues that although we are going to go through a very expedited process of voting on two options on student loans, I want to urge my colleagues to take this…

Christopher Murphy
Sen. Christopher MurphyD-CT · Jun 4, 2013

Madam President, first let me congratulate Senator Flake on his maiden speech. It was very thoughtful and I think a challenge to this body to get back to the work it has been given by the American…

Jeff Flake
Sen. Jeff FlakeR-AZ · Jun 11, 2013

Madam President, I ask unanimous consent that the quorum call be rescinded. Madam President, the Senate has taken an important and historic step today by adopting a motion to proceed to legislation…

John McCain
Sen. John McCainR-AZ · Jun 4, 2013

Mr. President, I say to the Senator from Vermont that I appreciate much of what he had to say, and I look forward to working with him to see how we can best address some of his very legitimate…

Michael F. Bennet
Sen. Michael F. BennetD-CO · Jun 11, 2013

Madam President, I want to first thank the Senator from South Dakota for his indulgence for 5 minutes or so to do this, and the Senator from Indiana for yielding his time to me. We got a little out…

Sherrod Brown
Sen. Sherrod BrownD-OH · Jun 4, 2013

I thank the Senator from Wyoming for his unanimous consent request, and I ask unanimous consent that after I conclude my remarks, the Senator from Rhode Island Mr. Whitehouse be recognized for up to…

Jack Reed
Sen. Jack ReedD-RI · Jun 11, 2013

Mr. President, I ask through the Chair if the Senator from Vermont would yield for the purpose of a unanimous consent request. Mr. President, July 1 is less than 3 weeks away, and unless Congress…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Jun 11, 2013

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent that the pending amendment be set aside to call up amendment No. 1195. I…

Maria Cantwell
Sen. Maria CantwellD-WA · Jun 4, 2013

Mr. President, I have been listening to this debate with my colleagues, but I came to share a few thoughts about the passing of our dear friend Senator Frank Lautenberg. He was a dear friend, a…

John Thune
Sen. John ThuneR-SD · Jun 11, 2013

Madam President, I also would like to thank the Senator from Colorado for his generosity with his time and for giving me the opportunity to make some remarks. I have an amendment I filed which I do…

Bill Text

Latest available legislative text

Reading Mode
Latest
Placed on Calendar SenateIssued May 15, 2013

II

Calendar No. 74

113th CONGRESS

1st Session

S. 953

IN THE SENATE OF THE UNITED STATES

May 14, 2013

Mr. Reed (for himself, Mr. Harkin, Mr. Reid, Mrs. Murray, Mr. Rockefeller, Ms. Baldwin, Mr. Schumer, Mr. Franken, Mr. Brown, Mr. Murphy, Mr. Durbin, Mrs. Gillibrand, Ms. Stabenow, Mr. Lautenberg, Mr. Whitehouse, Mr. Kaine, Ms. Warren, and Mr. Johnson of South Dakota) introduced the following bill; which was read the first time

May 15, 2013

Read the second time and placed on the calendar

A BILL

To amend the Higher Education Act of 1965 to extend the reduced interest rate for undergraduate Federal Direct Stafford Loans, to modify required distribution rules for pension plans, to limit earnings stripping by expatriated entities, to provide for modifications related to the Oil Spill Liability Trust Fund, and for other purposes.

1.

Short title

This Act may be cited as the Student Loan Affordability Act.

2.

Interest rate extension

Section 455(b)(7)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)(7)(D)) is amended—

(1)

in the matter preceding clause (i), by striking and before July 1, 2013, and inserting and before July 1, 2015,; and

(2)

in clause (v), by striking and before July 1, 2013, and inserting and before July 1, 2015,.

3.

Modifications of required distribution rules for pension plans

(a)

In general

Section 401(a)(9)(B) of the Internal Revenue Code of 1986 is amended to read as follows:

(B)

Required distributions where employee dies before entire interest is distributed

(i)

5-year general rule

A trust shall not constitute a qualified trust under this section unless the plan provides that, if an employee dies before the distribution of the employee's interest (whether or not such distribution has begun in accordance with subparagraph (A)), the entire interest of the employee will be distributed within 5 years after the death of such employee.

(ii)

Exception for eligible designated beneficiaries

If—

(I)

any portion of the employee's interest is payable to (or for the benefit of) an eligible designated beneficiary,

(II)

such portion will be distributed (in accordance with regulations) over the life of such eligible designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and

(III)

such distributions begin not later than 1 year after the date of the employee's death or such later date as the Secretary may by regulations prescribe,

then, for purposes of clause (i) and except as provided in clause (iv) or subparagraph (E)(iii), the portion referred to in subclause (I) shall be treated as distributed on the date on which such distributions begin.
(iii)

Special rule for surviving spouse of employee

If the eligible designated beneficiary referred to in clause (ii)(I) is the surviving spouse of the employee—

(I)

the date on which the distributions are required to begin under clause (ii)(III) shall not be earlier than the date on which the employee would have attained age 70½, and

(II)

if the surviving spouse dies before the distributions to such spouse begin, this subparagraph shall be applied as if the surviving spouse were the employee.

(iv)

Rules upon death of eligible designated beneficiary

If an eligible designated beneficiary dies before the portion of an employee's interest described in clause (ii) is entirely distributed, clause (ii) shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within 5 years after the death of such beneficiary.

.

(b)

Definition of eligible designated beneficiary

Section 401(a)(9)(E) of the Internal Revenue Code of 1986 is amended to read as follows:

(E)

Definitions and rules relating to designated beneficiary

For purposes of this paragraph—

(i)

Designated beneficiary

The term designated beneficiary means any individual designated as a beneficiary by the employee.

(ii)

Eligible designated beneficiary

The term eligible designated beneficiary means, with respect to any employee, any designated beneficiary who, as of the date of death of the employee, is—

(I)

the surviving spouse of the employee,

(II)

subject to clause (iii), a child of the employee who has not reached majority (within the meaning of subparagraph (F)),

(III)

disabled (within the meaning of section 72(m)(7)),

(IV)

a chronically ill individual (within the meaning of section 7702B(c)(2), except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one that is reasonably expected to be lengthy in nature), or

(V)

an individual not described in any of the preceding subparagraphs who is not more than 10 years younger than the employee.

(iii)

Special rule for children

Subject to subparagraph (F), an individual described in clause (ii)(II) shall cease to be an eligible designated beneficiary as of the date the individual reaches majority and the requirement of subparagraph (B)(i) shall not be treated as met with respect to any remaining portion of an employee's interest payable to the individual unless such portion is distributed within 5 years after such date.

.

(c)

Required beginning date

Section 401(a)(9)(C) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:

(v)

Employees becoming 5-percent owners after age 701/2

If an employee becomes a 5-percent owner (as defined in section 416) with respect to a plan year ending in a calendar year after the calendar year in which the employee attains age 701/2, then clause (i)(II) shall be applied by substituting the calendar year in which the employee became such an owner for the calendar year in which the employee retires.

.

(d)

Effective dates

(1)

In general

Except as provided in this subsection, the amendments made by this section shall apply to distributions with respect to employees who die after December 31, 2013.

(2)

Required beginning date

(A)

In general

The amendment made by subsection (c) shall apply to employees becoming a 5-percent owner with respect to plan years ending in calendar years beginning before, on, or after the date of the enactment of this Act.

(B)

Special rule

If—

(i)

an employee became a 5-percent owner with respect to a plan year ending in a calendar year which began before January 1, 2013, and

(ii)

the employee has not retired before calendar year 2014,

such employee shall be treated as having become a 5-percent owner with respect to a plan year ending in 2013 for purposes of applying section 401(a)(9)(C)(v) of the Internal Revenue Code of 1986 (as added by the amendment made by subsection (c)).
(3)

Exception for certain beneficiaries

If a designated beneficiary of an employee who dies before January 1, 2014, dies after December 31, 2013—

(A)

the amendments made by this section shall apply to any beneficiary of such designated beneficiary, and

(B)

the designated beneficiary shall be treated as an eligible designated beneficiary for purposes of applying section 401(a)(9)(B)(iv) of such Code (as in effect after the amendments made by this section).

(4)

Exception for certain existing annuity contracts

(A)

In general

The amendments made by this section shall not apply to a qualified annuity which is a binding annuity contract in effect on the date of the enactment of this Act and at all times thereafter.

(B)

Qualified annuity contract

For purposes of this paragraph, the term qualified annuity means, with respect to an employee, an annuity—

(i)

which is a commercial annuity (as defined in section 3405(e)(6) of such Code) or payable by a defined benefit plan,

(ii)

under which the annuity payments are substantially equal periodic payments (not less frequently than annually) over the lives of such employee and a designated beneficiary (or over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and a designated beneficiary) in accordance with the regulations described in section 401(a)(9)(A)(ii) of such Code (as in effect before such amendments) and which meets the other requirements of this section 401(a)(9) of such Code (as so in effect) with respect to such payments, and

(iii)

with respect to which—

(I)

annuity payments to the employee have begun before January 1, 2014, and the employee has made an irrevocable election before such date as to the method and amount of the annuity payments to the employee or any designated beneficiaries, or

(II)

if subclause (I) does not apply, the employee has made an irrevocable election before the date of the enactment of this Act as to the method and amount of the annuity payments to the employee or any designated beneficiaries.

4.

Limitation on earnings stripping by expatriated entities

(a)

In general

Subsection (j) of section 163 of the Internal Revenue Code of 1986 is amended—

(1)

by redesignating paragraph (9) as paragraph (10), and

(2)

by inserting after paragraph (8) the following new paragraph:

(9)

Special rules for expatriated entities

(A)

In general

In the case of a corporation to which this subsection applies which is an expatriated entity, this subsection shall apply to such corporation with the following modifications:

(i)

Paragraph (2)(A) shall be applied without regard to clause (ii) thereof.

(ii)

Paragraph (1)(B) shall be applied—

(I)

without regard to the parenthetical, and

(II)

by substituting in the 1st succeeding taxable year and in the 2nd through 10th succeeding taxable years to the extent not previously taken into account under this subparagraph for in the succeeding taxable year.

(iii)

Paragraph (2)(B) shall be applied—

(I)

without regard to clauses (ii) and (iii), and

(II)

by substituting 25 percent of the adjusted taxable income of the corporation for such taxable year for the matter of clause (i)(II) thereof.

(B)

Expatriated entity

For purposes of this paragraph—

(i)

In general

With respect to a corporation and a taxable year, the term expatriated entity has the meaning given such term by section 7874(a)(2), determined as if such section and the regulations under such section as in effect on the first day of such taxable year applied to all taxable years of the corporation beginning after July 10, 1989.

(ii)

Exception for surrogates treated as a domestic corporation

The term expatriated entity does not include a surrogate foreign corporation which is treated as a domestic corporation by reason of section 7874(b).

.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

5.

Modifications related to the Oil Spill Liability Trust Fund

(a)

Definition of crude oil

Paragraph (1) of section 4612(a) of the Internal Revenue Code of 1986 is amended to read as follows:

(1)

Crude oil

The term crude oil includes crude oil condensates, natural gasoline, any bitumen or bituminous mixture, and any oil derived from a bitumen or bituminous mixture.

.

(b)

Removing restrictions relating to oil wells and extraction methods

Paragraph (2) of section 4612(a) of the Internal Revenue Code of 1986 is amended by striking from a well located.

(c)

Permanent extension of oil spill liability trust fund financing rate

Section 4611(f) is amended by striking subsection (f).

(d)

Clerical amendment

Subclause (I) of section 4612(e)(2)(B)(ii) of the Internal Revenue Code of 1986 is amended by striking tranferred and inserting transferred.

(e)

Effective date

The amendments made by subsections (a) and (b) shall apply to crude oil and petroleum products received or entered during calendar quarters beginning more than 60 days after the date of the enactment of this Act.

6.

Reserving resulting surpluses for deficit reduction

(a)

Paygo scorecard

The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)).

(b)

Senate paygo scorecard

The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

May 15, 2013

Read the second time and placed on the calendar