[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1947 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 1947

     To amend title XIX of the Social Security Act to clarify the 
circumstances under which a hold harmless provision does not exist with 
           respect to a broad-based health care related tax.


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                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2002

 Mrs. Carnahan introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend title XIX of the Social Security Act to clarify the 
circumstances under which a hold harmless provision does not exist with 
           respect to a broad-based health care related tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF CIRCUMSTANCES UNDER WHICH A HOLD HARMLESS 
              PROVISION DOES NOT EXIST WITH RESPECT TO A BROAD-BASED 
              HEALTH CARE RELATED TAX.

    (a) Amendment to Social Security Act.--Section 1903(w)(4)(C) of the 
Social Security Act (42 U.S.C. 1396b(w)(4)(C)) is amended--
            (1) by striking ``The'' and inserting ``(i) Subject to 
        clause (ii), the''; and
            (2) by adding at the end the following:
            ``(ii) The State shall not be considered to have provided 
        an indirect guarantee to hold taxpayers harmless with respect 
        to a tax imposed on a class of health care items and services 
        if the tax is applied at a rate that produces revenues that do 
        not exceed 6 percent of the revenues received by the taxpayers 
        with respect to the fiscal year involved.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if enacted on September 13, 1993.
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