United StatesEmployee ownership plan managers may use appraisals for certain closely held shares
For certain shares in companies with few owners, employee stock ownership plan managers may rely in good faith on independent appraisals, while keeping their other legal duties.
What it does
Employee stock ownership plan managers may rely in good faith on independent appraisals of certain closely held company shares. Appraisers must follow IRS methods, and managers keep their other legal duties.
Argument forPermission to rely on independent experts could give plan managers more confidence when valuing covered shares in companies with few owners.
Argument againstRelying on expert appraisals for these shares could expose workers’ retirement savings to valuation errors, despite required methods and continuing legal duties.
More detail
People legally responsible for employee stock ownership plans may rely in good faith on an independent expert’s valuation of covered shares. The permission covers certain closely held shares—shares in companies with few owners—under section 3(18)(A)(ii). The expert must follow IRS Revenue Ruling 59–60, including IRS updates. Plan managers keep their other legal duties. The Secretary may issue rules interpreting this permission, but it does not expand the Secretary’s existing rulemaking authority. The permission applies to covered value determinations made on or after October 15, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 15Signed by President.Became Law
- Oct 15Became Public Law No: 119-124.Minor
- Oct 5Presented to President.To President
- Sep 16Mr. Walberg moved to suspend the rules and pass the bill.
- Vote recorded On Motion to Suspend the Rules and Pass. Result: Passed.House
- Sep 16Considered under suspension of the rules. (consideration: CR H5905-5906)
- Sep 16DEBATE - The House proceeded with forty minutes of debate on S. 2403.
- Sep 16At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
- Sep 16Considered as unfinished business. (consideration: CR H5960)
- Sep 16Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 401 - 14 (Roll no. 314). (text: CR H5905)Passed House
- Sep 16Motion to reconsider laid on the table Agreed to without objection.
- 2025
- Oct 17Received in the House.
- Oct 17Held at the desk.
- Oct 16Message on Senate action sent to the House.
- Oct 9Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent. (consideration: CR S7103; text: CR S7103)Passed Senate
- Sep 11Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.
- Sep 11Placed on Senate Legislative Calendar under General Orders. Calendar No. 158.
- Jul 30Committee on Health, Education, Labor, and Pensions. Ordered to be reported with an amendment in the nature of a substitute favorably.
- Jul 23Introduced in Senate
- Jul 23Read twice and referred to the Committee on Health, Education, Labor, and Pensions.Introduced
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