[House Report 113-429]
[From the U.S. Government Publishing Office]
113th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 113-429
======================================================================
PERMANENT S CORPORATION BUILT-IN GAINS RECOGNITION PERIOD ACT OF 2014
_______
May 2, 2014.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Camp, from the Committee on Ways and Means, submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 4453]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 4453) to amend the Internal Revenue Code of 1986 to
make permanent the reduced recognition period for built-in
gains of S corporations, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................2
A. Purpose and Summary................................. 2
B. Background and Need for Legislation................. 2
C. Legislative History................................. 3
II. EXPLANATION OF THE BILL..........................................3
A. Reduced Recognition Period for Built-In Gains of S
Corporations Made Permanent (sec. 1374 of the Code) 3
III. VOTES OF THE COMMITTEE...........................................6
IV. BUDGET EFFECTS OF THE BILL.......................................7
A. Committee Estimate of Budgetary Effects............. 7
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 7
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 7
D. Macroeconomic Impact Analysis....................... 8
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......8
A. Committee Oversight Findings and Recommendations.... 8
B. Statement of General Performance Goals and
Objectives......................................... 8
C. Information Relating to Unfunded Mandates........... 9
D. Applicability of House Rule XXI 5(b)................ 9
E. Tax Complexity Analysis............................. 9
F. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 9
G. Duplication of Federal Programs..................... 9
H. Disclosure of Directed Rule Makings................. 10
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........10
VII. DISSENTING VIEWS................................................12
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Permanent S Corporation Built-in Gains
Recognition Period Act of 2014''.
SEC. 2. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S CORPORATIONS
MADE PERMANENT.
(a) In General.--Paragraph (7) of section 1374(d) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(7) Recognition period.--
``(A) In general.--The term `recognition period'
means the 5-year period beginning with the 1st day of
the 1st taxable year for which the corporation was an S
corporation. For purposes of applying this section to
any amount includible in income by reason of
distributions to shareholders pursuant to section
593(e), the preceding sentence shall be applied without
regard to the phrase `5-year'.
``(B) Installment sales.--If an S corporation sells
an asset and reports the income from the sale using the
installment method under section 453, the treatment of
all payments received shall be governed by the
provisions of this paragraph applicable to the taxable
year in which such sale was made.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
Identical to a provision contained in the discussion draft
of the ``Tax Reform Act of 2014'' released on February 26,
2014, the bill, H.R. 4453, reported by the Committee on Ways
and Means, provides a permanent five-year recognition period
for built-in gains of an S corporation. A temporary provision,
which expired for taxable years beginning after December 31,
2013, also provided a five-year recognition period for built-in
gains of an S corporation. With the expiration of that
temporary provision, however, the recognition period is
currently ten years for taxable years beginning after December
31, 2013.
B. Background and Need for Legislation
While the Committee continues actively to pursue
comprehensive tax reform as a critical means of promoting
economic growth and job creation, the Committee also believes
that it is important to provide small businesses permanent,
immediate tax relief to help encourage economic growth and job
creation. By providing small businesses organized as S
corporations with a permanent five-year period for the
recognition of certain built-in gains, H.R. 4453 will provide
much needed certainty for S corporations that have contended
with temporary changes to the recognition period for years.
Additionally, H.R. 4453 will eliminate a significant deterrent
that often discourages C corporations from electing to be S
corporations, and will provide additional flexibility for S
corporations to access capital by selling unproductive assets
to finance expansion of their businesses and create jobs.
C. Legislative History
BACKGROUND
H.R. 4453 was introduced on April 10, 2014, and was
referred to the Committee on Ways and Means.
COMMITTEE ACTION
The Committee on Ways and Means marked up H.R. 4453, the
Permanent S Corporation Built-in Gains Recognition Period Act
of 2014, on April 29, 2014, and ordered the bill, as amended,
favorably reported (with a quorum being present).
COMMITTEE HEARINGS
The need for a permanent five-year recognition period for
built-in gains of S corporations was discussed at no fewer than
four hearings during the 112th and 113th Congresses:
Full Committee hearing on Fundamental Tax
Reform (January 20, 2011);
Full Committee hearing on the Treatment of
Closely-Held Businesses in the Context of Tax Reform (March 7,
2012);
Select Revenue Measures Subcommittee hearing on
the Small Business and Pass-Through Entity Tax Reform
Discussion Draft (May 15, 2013); and
Full Committee hearing on the Benefits of
Permanent Tax Policy for America's Job Creators (April 8,
2014).
II. EXPLANATION OF THE BILL
A. Reduced Recognition Period for Built-In Gains of S Corporations Made
Permanent (sec. 1374 of the Code)
PRESENT LAW
In general
S corporations
A small business corporation\1\ may elect to be treated as
an S corporation. Unlike C corporations, S corporations
generally pay no corporate-level tax. Instead, items of income
and loss of an S corporation pass through to its shareholders.
Each shareholder takes into account separately its share of
these items on its own income tax return.\2\
---------------------------------------------------------------------------
\1\This term is defined in section 1361(b).
\2\Sec. 1366.
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A corporate level built-in gains tax, at the highest
marginal rate applicable to corporations (currently 35
percent), is imposed on an S corporation's net recognized
built-in gain\3\ that arose prior to the conversion of the C
corporation to an S corporation and is recognized by the S
corporation during the recognition period, (i.e., the 10-year
period beginning with the first day of the first taxable year
for which the S election is in effect).\4\ If the taxable
income of the S corporation is less than the amount of net
recognized built-in gain in the year such built-in gain is
recognized (for example, because of post-conversion losses), no
built-in gain tax is imposed on the excess of such built-in
gain over taxable income for that year. However, the untaxed
excess of net recognized built-in gain over taxable income for
that year is treated as recognized built-in gain in the
succeeding taxable year.\5\ Treasury regulations provide that
if a corporation sells an asset before or during the
recognition period and reports the income from the sale using
the installment method\6\ during or after the recognition
period, that income is subject to the built-in gain tax.\7\
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\3\Certain built-in income items are treated as recognized built-in
gain for this purpose. Sec. 1374(d)(5).
\4\Sec. 1374(d)(7)(A). The 10-year period refers to ten calendar
years from the first day of the first taxable year for which the
corporation was an S corporation. Treas. Reg. sec. 1.1374-1(d).
\5\Sec. 1374(d)(2).
\6\Sec. 453.
\7\Treas. Reg. sec. 1.1374-4(h).
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The built-in gain tax also applies to net recognized built-
in gain attributable to any asset received by an S corporation
from a C corporation in a transaction in which the S
corporation's basis in the asset is determined (in whole or in
part) by reference to the basis of such asset (or other
property) in the hands of the C corporation.\8\ In the case of
such a transaction, the recognition period for any asset
transferred by the C corporation starts on the date the asset
was acquired by the S corporation in lieu of the beginning of
the first taxable year for which the corporation was an S
corporation.\9\
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\8\Sec. 1374(d)(8).
\9\Sec. 1374(d)(8)(B).
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The amount of the built-in gains tax is treated as a loss
by each of the S corporation shareholders in computing its own
income tax.\10\
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\10\Sec. 1366(f)(2). Shareholders continue to take into account all
items of gain and loss under section 1366.
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For any taxable year beginning in 2009 and 2010, no tax was
imposed on the net recognized built-in gain of an S corporation
under section 1374 if the seventh taxable year in the
corporation's recognition period preceded such taxable
year.\11\ Thus, with respect to gain that arose prior to the
conversion of a C corporation to an S corporation, no tax was
imposed under section 1374 if the seventh taxable year that the
S corporation election was in effect preceded the taxable year
beginning in 2009 or 2010.
---------------------------------------------------------------------------
\11\Sec. 1374(d)(7)(B).
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For any taxable year beginning in 2011, no tax was imposed
on the net recognized built-in gain of an S corporation under
section 1374 if the fifth year in the corporation's recognition
period preceded such taxable year.\12\ Thus, with respect to
gain that arose prior to the conversion of a C corporation to
an S corporation, no tax was imposed under section 1374 if the
S corporation election was in effect for five years preceding
the taxable year beginning in 2011.
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\12\Sec. 1374(d)(7)(C).
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For taxable years beginning in 2012 and 2013, the term
``recognition period'' in section 1374, for purposes of
determining the net recognized built-in gain, is applied by
substituting a five-year period\13\ for the otherwise
applicable 10-year period. Thus, for such taxable years, the
recognition period is the five-year period beginning with the
first day of the first taxable year for which the corporation
was an S corporation (or beginning with the date of acquisition
of assets if the rules applicable to assets acquired from a C
corporation apply). If an S corporation with assets subject to
section 1374 disposes of such assets in a taxable year
beginning in 2012 or 2013 and the disposition occurs more than
five years after the first day of the relevant recognition
period, gain or loss on the disposition will not be taken into
account in determining the net recognized built-in gain.
---------------------------------------------------------------------------
\13\The five-year period refers to five calendar years from the
first day of the first taxable year for which the corporation was an S
corporation.
---------------------------------------------------------------------------
If an S corporation subject to section 1374 sells a built-
in gain asset and reports the income from the sale using the
installment method under section 453, the treatment of all
payments received will be governed by the provisions of section
1374(d)(7) applicable to the taxable year in which the sale was
made.
Application to real estate investment trusts and regulated
investment corporations
Under Treasury regulations, a regulated investment company
(``RIC'') or a real estate investment trust (``REIT'') that was
formerly a C corporation not taxed as a REIT or RIC (or that
acquired assets from such a C corporation) generally is subject
to the built-in gain tax rules as if the RIC or REIT were an S
corporation, unless the relevant C corporation elects ``deemed
sale'' treatment, requiring recognition of all C corporation
built-in gain and loss at the time of the conversion or asset
acquisition.\14\ Deemed sale treatment is not permitted if its
application would result in the recognition of a net loss.\15\
For this purpose, net loss is the excess of aggregate losses
over aggregate gains (including items of income), without
regard to character.\16\
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\14\Treas. Reg. secs. 1.337(d)-7(a) and 1.337(d)-7(b).
\15\Treas. Reg. sec. 1.337(d)-7(c)(1).
\16\Treas. Reg. sec. 1.337(d)-7(c)(1).
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REASONS FOR CHANGE
The Committee believes that a five-year recognition period
for built-in gains adequately protects the corporate tax base
while allowing greater flexibility for S corporations to
replace and reposition assets, allowing S corporations to
access capital to expand business operations and create jobs.
The Committee also believes that making the five-year
recognition period permanent will provide needed certainty and
remove a significant deterrent that often discourages C
corporations from electing to be S corporations.
EXPLANATION OF PROVISION
The provision makes permanent the five-year recognition
period for built-in gains of S corporations. Under current
Treasury regulations, this five-year recognition period also
will apply to real estate investment trusts and regulated
investment companies that do not elect ``deemed sale''
treatment.
EFFECTIVE DATE
The provision is effective for taxable years beginning
after December 31, 2013.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 4453, as
reported.
The bill, as reported, is estimated to have the following
effects on Federal budget receipts for fiscal years 2014-2024:
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By fiscal years in billions of dollars--
---------------------------------------------------------------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-19 2014-24
--------------------------------------------------------------------------------------------------------------------------------------------------------
- - - -0.2 -0.2 -0.3 -0.2 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -1.0 -1.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: Details do not add to totals due to rounding.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority. The
Committee further states that whether or not the bill increases
a tax expenditure is ambiguous because the existence of
subchapter S does not create any tax expenditures, but
distributions from a C corporation generally give rise to tax
liability.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 1, 2014.
Hon. Dave Camp,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4453, the
Permanent S Corporation Built-in Gains Recognition Period Act
of 2014.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Logan
Timmerhoff.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 4453--Permanent S Corporation Built-in Gains Recognition Period
Act of 2014
H.R. 4453 would amend the Internal Revenue Code to make
permanent a five-year recognition period for built-in gains of
S corporations, retroactive to January 1, 2014. Under current
law, a corporation that meets certain requirements may elect to
be taxed as an S corporation, which generally pays no
corporate-level tax, unlike a C corporation. For corporations
that convert from C corporations to S corporations, or S
corporations that receive assets under certain conditions from
C corporations, there is a corporate-level tax on certain
built-in gains of certain assets, with a 10-year recognition
period under current law. This legislation makes permanent the
five-year recognition period for S corporation built-in gains
that was generally in effect for taxable years from 2011
through 2013. The legislation also applies to regulated
investment companies and real estate investment trusts.
The staff of the Joint Committee on Taxation (JCT)
estimates that enacting H.R. 4453 would reduce revenues, thus
increasing federal deficits, by $1.5 billion over the 2014-2024
period.
The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting
direct spending and revenues. Enacting H.R. 4453 would result
in revenue losses in each year beginning in 2015. The estimated
increases in the deficit are shown in the following table.
JCT has determined that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Logan
Timmerhoff. The estimate was approved by David Weiner,
Assistant Director for Tax Analysis.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4453, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON APRIL 29, 2014
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By fiscal year, in millions of dollars--
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-2019 2014-2024
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NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Effects............ 0 155 221 287 225 148 104 84 82 86 93 1,036 1,485
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
Source: Staff of the Joint Committee on Taxation.
D. Macroeconomic Impact Analysis
In compliance with clause 3(h)(2) of rule XIII of the Rules
of the House of Representatives, the following statement is
made by the Joint Committee on Taxation with respect to the
provisions of the bill amending the Internal Revenue Code of
1986: the effects of the bill on economic activity are so small
as to be incalculable within the context of a model of the
aggregate economy.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives (relating to oversight findings),
the Committee advises that it was as a result of the
Committee's review of the provisions of H.R. 4453 that the
Committee concluded that it is appropriate to report the bill,
as amended, favorably to the House of Representatives with the
recommendation that the bill do pass.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill contains no measure that authorizes funding, so no
statement of general performance goals and objectives for which
any measure authorizes funding is required.
C. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
D. Applicability of House Rule XXI 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
involve any Federal income tax rate increases within the
meaning of the rule.
E. Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'')
requires the staff of the Joint Committee on Taxation (in
consultation with the Internal Revenue Service and the Treasury
Department) to provide a tax complexity analysis. The
complexity analysis is required for all legislation reported by
the Senate Committee on Finance, the House Committee on Ways
and Means, or any committee of conference if the legislation
includes a provision that directly or indirectly amends the
Internal Revenue Code and has widespread applicability to
individuals or small businesses.
Pursuant to clause 3(h)(1) of rule XIII of the Rules of the
House of Representatives, the staff of the Joint Committee on
Taxation has determined that a complexity analysis is not
required under section 4022(b) of the IRS Reform Act because
the bill contains no provisions that amend the Code and that
have ``widespread applicability'' to individuals or small
businesses, within the meaning of the rule.
F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
G. Duplication of Federal Programs
In compliance with Sec. 3(j)(2) of H. Res. 5 (113th
Congress), the Committee states that no provision of the bill
establishes or reauthorizes: (1) a program of the Federal
Government known to be duplicative of another Federal program,
(2) a program included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or (3) a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance, published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169).
H. Disclosure of Directed Rule Makings
In compliance with Sec. 3(k) of H. Res. 5 (113th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that the bill requires no
directed rule makings within the meaning of such section.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECTION 1374 OF THE INTERNAL REVENUE CODE OF 1986
SEC. 1374. TAX IMPOSED ON CERTAIN BUILT-IN GAINS.
(a) * * *
* * * * * * *
(d) Definitions and Special Rules.--For purposes of this
section--
(1) * * *
* * * * * * *
[(7) Recognition period.--
[(A) In general.--The term ``recognition
period'' means the 10-year period beginning
with the 1st day of the 1st taxable year for
which the corporation was an S corporation.
[(B) Special rules for 2009, 2010, and
2011.--No tax shall be imposed on the net
recognized built-in gain of an S corporation--
[(i) in the case of any taxable year
beginning in 2009 or 2010, if the 7th
taxable year in the recognition period
preceded such taxable year, or
[(ii) in the case of any taxable year
beginning in 2011, if the 5th year in
the recognition period preceded such
taxable year.
The preceding sentence shall be applied
separately with respect to any asset to which
paragraph (8) applies.
[(C) Special rule for 2012 and 2013.--For
purposes of determining the net recognized
built-in gain for taxable years beginning in
2012 or 2013, subparagraphs (A) and (D) shall
be applied by substituting ``5-year'' for ``10-
year''.
[(D) Special rule for distributions to
shareholders.--For purposes of applying this
section to any amount includible in income by
reason of distributions to shareholders
pursuant to section 593(e)--
[(i) subparagraph (A) shall be
applied without regard to the phrase
``10-year'', and
[(ii) subparagraph (B) shall not
apply.
[(E) Installment sales.--If an S corporation
sells an asset and reports the income from the
sale using the installment method under section
453, the treatment of all payments received
shall be governed by the provisions of this
paragraph applicable to the taxable year in
which such sale was made.]
(7) Recognition period.--
(A) In general.--The term ``recognition
period'' means the 5-year period beginning with
the 1st day of the 1st taxable year for which
the corporation was an S corporation. For
purposes of applying this section to any amount
includible in income by reason of distributions
to shareholders pursuant to section 593(e), the
preceding sentence shall be applied without
regard to the phrase ``5-year''.
(B) Installment sales.--If an S corporation
sells an asset and reports the income from the
sale using the installment method under section
453, the treatment of all payments received
shall be governed by the provisions of this
paragraph applicable to the taxable year in
which such sale was made.
* * * * * * *
VII. DISSENTING VIEWS
These bills would add a combined $310 billion to the
deficit. Even though these bills were introduced individually
with some bipartisan support, the opposition to these bills was
based on the position that these tax provisions should not be
made permanent by adding to the deficit without any revenue
offset.
To put the combined cost ($310 billion) into context, this
total represents more than one-half of the entire federal
deficit this year--the lowest it has been since President Obama
took office. It represents nearly two-thirds of all non-defense
domestic discretionary spending in 2014. It is more than three
times what we spend annually on education, job training, and
social services. It is five times more than we spend on
veterans. And, it is five times more than we spend on medical
research and public health.
We also opposed the manner in which Republicans were
proceeding--selecting six to make permanent without any offset
from the approximately 60 tax provisions that expired last
year. This approach was both fiscally irresponsible and
fundamentally hypocritical.
We found it hypocritical that, four months ago, Republicans
let emergency unemployment insurance expire for more than 1.3
million Americans by arguing that an adequate offset had yet to
be proposed. In early April, the Senate came to a bipartisan
agreement on an offset after months of painstaking
negotiations. Yet House Republicans still refuse to act.
Further, we found it also hypocritical that the Republicans
were in favor of passing these six tax bills at a cost of $310
billion without an offset at the same time that they were
requiring an offset for a provision stripped from another bill
under consideration at the markup that helped foster children
at a cost of $12 million.
The consideration of these six tax bills should have been
part of the consideration of all the expired tax provisions
commonly referred to as ``tax extenders.'' The Republicans did
not take up other tax extenders that also are important to
Democratic Committee Members. Left to an uncertain fate are
provisions like the Work Opportunity Tax Credit, the New
Markets Tax Credit, and the renewable energy tax credits, as
well as the long-term status of the Earned Income Tax Credit,
the Child Tax Credit, and the American Opportunity Tax Credit.
Sincerely,
Sander M. Levin
Ranking Member.