H.R. 3897: To amend the Internal Revenue Code of 1986 to strengthen the rules for approved structured settlement factoring transactions.

113th Congress · introduced 2014-01-16 · Taxation · Latest: Referred to the House Committee on Ways and Means.

federal

Follow this bill, step by step

Where it came from: introduced 2014-01-16 · official record
Who proposed it: Rep. Cartwright, Matt [D-PA-17] · what a sponsor is
What happened next: no floor votes in our records yet. Why?
Where it stands now: Referred to the House Committee on Ways and Means. Not final yet: this can still change. We check for updates every day.
If it becomes law and spends money: follow the money to money laws, then agencies and contracts and grants.

What does this mean?

Official title

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

Plain summary

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.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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PSI Sci description of the legislative step (not an opinion).

What does this mean? (plain words)

Official text

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

Source: Congressional Research Service summary (Introduced in House)

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How did my representative vote? · This bill's floor votes

Officials and money

Sponsor: Rep. Cartwright, Matt [D-PA-17] · 9 cosponsors

Cost estimate: No cost estimate published yet.

Cosponsors on this site

Janice D. Schakowsky (D-IL), Richard E. Neal (D-MA)

No linked floor roll calls in our collected records yet. This does not mean the bill has never had a vote. Check the official bill history.

Words on this page, explained (2)

Exemption: A rule that removes certain people, property or activities from a tax or requirement.
Rulemaking: The process agencies use to write regulations that carry out laws passed by Congress or a legislature. Usually an agency publishes a proposed rule, takes public comments, then publishes a final rule.

Plain meanings written from linked sources. All words.

Sources

Congressional Research Service summary (Introduced in House)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-113hr3897.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/113/hr>

Record fed-us-cong113-hr3897 · catalog fed-us-congress-bills-cong113 · updated 2026-11-15 by psicol fed-bills-cong113