[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 8 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 8
To improve the economic security of workers, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 22, 2001
Mr. Daschle (for himself, Mr. Kennedy, Mr. Dodd, Ms. Mikulski, Mr.
Wellstone, Mrs. Murray, Mrs. Clinton, Mr. Akaka, Mr. Breaux, Mrs.
Boxer, Mr. Corzine, Mr. Dayton, Mr. Durbin, Mr. Kerry, Mr. Leahy, Mr.
Lieberman, Mr. Rockefeller, Mr. Schumer, Mr. Wyden, and Mr. Johnson)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To improve the economic security of workers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Enhancing Economic
Security for America's Working Families Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MINIMUM WAGE
Sec. 101. Short title.
Sec. 102. Minimum wage increase.
Sec. 103. Applicability of minimum wage to the Commonwealth of the
Northern Mariana Islands.
TITLE II--PAYCHECK FAIRNESS
Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Enhanced enforcement of equal pay requirements.
Sec. 204. Training.
Sec. 205. Research, education, and outreach.
Sec. 206. Technical assistance and employer recognition program.
Sec. 207. Establishment of the National Award for Pay Equity in the
Workplace.
Sec. 208. Collection of pay information by the Equal Employment
Opportunity Commission.
Sec. 209. Authorization of appropriations.
TITLE III--LIFELONG LEARNING
Sec. 301. Demonstration programs and projects to provide technical
skills training for workers.
TITLE IV--FAMILYCARE
Sec. 401. Short title of title.
Sec. 402. Renaming of title XXI program.
Sec. 403. Familycare coverage of parents under the medicaid program and
title XXI.
Sec. 404. Automatic enrollment of children born to title XXI parents.
Sec. 405. Optional coverage of legal immigrants under the medicaid
program and title XXI.
Sec. 406. Optional coverage of children through age 20 under the
medicaid program and title XXI.
Sec. 407. Application of simplified title XXI procedures under the
medicaid program.
Sec. 408. Improving welfare-to-work transition under the medicaid
program.
Sec. 409. Elimination of 100 hour rule and other AFDC-related
eligibility restrictions.
Sec. 410. State grant program for market innovation.
Sec. 411. Limitations on conflicts of interest.
Sec. 412. Increase in CHIP allotment for each of fiscal years 2002
through 2004.
Sec. 413. Demonstration programs to improve medicaid and CHIP outreach
to homeless individuals and families.
Sec. 414. Technical and conforming amendments to authority to pay
medicaid expansion costs from title XXI
appropriation.
TITLE V--TAX RELIEF FOR WORKING FAMILIES
Sec. 501. Increased earned income tax credit for 2 or more qualifying
children.
Sec. 502. Simplification of definition of earned income.
Sec. 503. Simplification of definition of child dependent.
Sec. 504. Other modifications to earned income tax credit.
TITLE VI--RESTORING FOOD STAMPS FOR LEGAL IMMIGRANTS AND THEIR FAMILIES
Sec. 601. Restoration of food stamp benefits for aliens.
TITLE I--MINIMUM WAGE
SEC. 101. SHORT TITLE.
This title may be cited as the ``Fair Minimum Wage Act of 2001''.
SEC. 102. MINIMUM WAGE INCREASE.
(a) Wage.--Paragraph (1) of section 6(a) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as
follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) except as provided in subparagraphs (B) and
(C), $5.75 an hour beginning 30 days after the date of
enactment of the Fair Minimum Wage Act of 2001;
``(B) $6.25 an hour during the year beginning on
January 1, 2002; and
``(C) $6.65 an hour beginning on January 1,
2003;''.
(b) Effective Date.--The amendment made by subsection (a) takes
effect on the earlier of--
(1) 30 days after the date of enactment of this Act; and
(2) January 1, 2002.
SEC. 103. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH OF THE
NORTHERN MARIANA ISLANDS.
(a) In General.--Subject to subsection (b), the provisions of
section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) shall
apply to the Commonwealth of the Northern Mariana Islands.
(b) Transition.--
(1) In general.--Notwithstanding subsection (a), the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be $3.55 an
hour beginning on the date that is 30 days after the date of
enactment of this section.
(2) Increases in minimum wage.--
(A) In general.--On the date that is 6 months after
the date of enactment of this Act, and every 6 months
thereafter, the minimum wage applicable to the
Commonwealth of the Northern Mariana Islands under
section 6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)) shall be increased by $0.50 per
hour (or such a lesser amount as may be necessary to
equal the minimum wage under such section) until such
time as the minimum wage applicable to the Commonwealth
of the Northern Mariana Islands under this subsection
is equal to the minimum wage set forth in section
6(a)(1) of such Act for the date involved.
(B) Further increases.--With respect to dates
beginning after the minimum wage applicable to the
Commonwealth of the Northern Mariana Islands is equal
to the minimum wage set forth in section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)),
as provided in subparagraph (A), such applicable
minimum wage shall be immediately increased so as to
remain equal to the minimum wage set forth in section
6(a)(1) of such Act for the date involved.
TITLE II--PAYCHECK FAIRNESS
SEC. 201. SHORT TITLE.
This title may be cited as the ``Paycheck Fairness Act''.
SEC. 202. FINDINGS.
Congress makes the following findings:
(1) Women have entered the workforce in record numbers.
(2) Even today, women earn significantly lower pay than men
for work on jobs that require equal skill, effort, and
responsibility and that are performed under similar working conditions.
These pay disparities exist in both the private and governmental
sectors. In many instances, the pay disparities can only be due to
continued intentional discrimination or the lingering effects of past
discrimination.
(3) The existence of such pay disparities--
(A) depresses the wages of working families who
rely on the wages of all members of the family to make
ends meet;
(B) prevents the optimum utilization of available
labor resources;
(C) has been spread and perpetuated, through
commerce and the channels and instrumentalities of
commerce, among the workers of the several States;
(D) burdens commerce and the free flow of goods in
commerce;
(E) constitutes an unfair method of competition in
commerce;
(F) leads to labor disputes burdening and
obstructing commerce and the free flow of goods in
commerce;
(G) interferes with the orderly and fair marketing
of goods in commerce; and
(H) in many instances, may deprive workers of equal
protection on the basis of sex in violation of the 5th
and 14th amendments.
(4)(A) Artificial barriers to the elimination of
discrimination in the payment of wages on the basis of sex
continue to exist more than 3 decades after the enactment of
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.)
and the Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.).
(B) Elimination of such barriers would have positive
effects, including--
(i) providing a solution to problems in the economy
created by unfair pay disparities;
(ii) substantially reducing the number of working
women earning unfairly low wages, thereby reducing the
dependence on public assistance; and
(iii) promoting stable families by enabling all
family members to earn a fair rate of pay;
(iv) remedying the effects of past discrimination
on the basis of sex and ensuring that in the future
workers are afforded equal protection on the basis of
sex; and
(v) ensuring equal protection pursuant to Congress'
power to enforce the 5th and 14th amendments.
(5) With increased information about the provisions added
by the Equal Pay Act of 1963 and wage data, along with more
effective remedies, women will be better able to recognize and
enforce their rights to equal pay for work on jobs that require
equal skill, effort, and responsibility and that are performed
under similar working conditions.
(6) Certain employers have already made great strides in
eradicating unfair pay disparities in the workplace and their
achievements should be recognized.
SEC. 203. ENHANCED ENFORCEMENT OF EQUAL PAY REQUIREMENTS.
(a) Required Demonstration for Affirmative Defense.--Section
6(d)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(d)(1))
is amended by striking ``(iv) a differential'' and all that follows
through the period and inserting the following: ``(iv) a differential
based on a bona fide factor other than sex, such as education, training
or experience, except that this clause shall apply only if--
``(I) the employer demonstrates that--
``(aa) such factor--
``(AA) is job-related with
respect to the position in
question; or
``(BB) furthers a
legitimate business purpose,
except that this item shall not
apply where the employee
demonstrates that an
alternative employment practice
exists that would serve the
same business purpose without
producing such differential and
that the employer has refused
to adopt such alternative
practice; and
``(bb) such factor was actually
applied and used reasonably in light of
the asserted justification; and
``(II) upon the employer succeeding under
subclause (I), the employee fails to
demonstrate that the differential produced by
the reliance of the employer on such factor is
itself the result of discrimination on the
basis of sex by the employer.
``An employer that is not otherwise in compliance with this
paragraph may not reduce the wages of any employee in order to
achieve such compliance.''.
(b) Application of Provisions.--Section 6(d)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(d)(1)) is amended by adding at the
end the following: ``The provisions of this subsection shall apply to
applicants for employment if such applicants, upon employment by the
employer, would be subject to any provisions of this section.''.
(c) Elimination of Establishment Requirement.--Section 6(d) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206(d)) is amended--
(1) by striking ``, within any establishment in which such
employees are employed,''; and
(2) by striking ``in such establishment'' each place it
appears.
(d) Nonretaliation Provision.--Section 15(a)(3) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
(1) by striking ``or has'' each place it appears and
inserting ``has''; and
(2) by inserting before the semicolon the following: ``, or
has inquired about, discussed, or otherwise disclosed the wages
of the employee or another employee, or because the employee
(or applicant) has made a charge, testified, assisted, or
participated in any manner in an investigation, proceeding,
hearing, or action under section 6(d)''.
(e) Enhanced Penalties.--Section 16(b) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 216(b)) is amended--
(1) by inserting after the first sentence the following:
``Any employer who violates section 6(d) shall additionally be
liable for such compensatory or punitive damages as may be
appropriate, except that the United States shall not be liable
for punitive damages.'';
(2) in the sentence beginning ``An action to'', by striking
``either of the preceding sentences'' and inserting ``any of
the preceding sentences of this subsection'';
(3) in the sentence beginning ``No employees shall'', by
striking ``No employees'' and inserting ``Except with respect
to class actions brought to enforce section 6(d), no
employee'';
(4) by inserting after the sentence referred to in
paragraph (3), the following: ``Notwithstanding any other
provision of Federal law, any action brought to enforce section
6(d) may be maintained as a class action as provided by the
Federal Rules of Civil Procedure.''; and
(5) in the sentence beginning ``The court in''--
(A) by striking ``in such action'' and inserting
``in any action brought to recover the liability
prescribed in any of the preceding sentences of this
subsection''; and
(B) by inserting before the period the following:
``, including expert fees''.
(f) Action by Secretary.--Section 16(c) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 216(c)) is amended--
(1) in the first sentence--
(A) by inserting ``or, in the case of a violation
of section 6(d), additional compensatory or punitive
damages,'' before ``and the agreement''; and
(B) by inserting before the period the following:
``, or such compensatory or punitive damages, as
appropriate'';
(2) in the second sentence, by inserting before the period
the following: ``and, in the case of a violation of section
6(d), additional compensatory or punitive damages'';
(3) in the third sentence, by striking ``the first
sentence'' and inserting ``the first or second sentence''; and
(4) in the last sentence--
(A) by striking ``commenced in the case'' and
inserting ``commenced--
``(1) in the case'';
(B) by striking the period and inserting
``; or''; and
(C) by adding at the end the following:
``(2) in the case of a class action brought to enforce
section 6(d), on the date on which the individual becomes a
party plaintiff to the class action''.
SEC. 204. TRAINING.
The Equal Employment Opportunity Commission and the Office of
Federal Contract Compliance Programs, subject to the availability of
funds appropriated under section 209(b), shall provide training to
Commission employees and affected individuals and entities on matters
involving discrimination in the payment of wages.
SEC. 205. RESEARCH, EDUCATION, AND OUTREACH.
The Secretary of Labor shall conduct studies and provide
information to employers, labor organizations, and the general public
concerning the means available to eliminate pay disparities between men
and women, including--
(1) conducting and promoting research to develop the means
to correct expeditiously the conditions leading to the pay
disparities;
(2) publishing and otherwise making available to employers,
labor organizations, professional associations, educational
institutions, the media, and the general public the findings
resulting from studies and other materials, relating to eliminating the
pay disparities;
(3) sponsoring and assisting State and community
informational and educational programs;
(4) providing information to employers, labor
organizations, professional associations, and other interested
persons on the means of eliminating the pay disparities;
(5) recognizing and promoting the achievements of
employers, labor organizations, and professional associations
that have worked to eliminate the pay disparities; and
(6) convening a national summit to discuss, and consider
approaches for rectifying, the pay disparities.
SEC. 206. TECHNICAL ASSISTANCE AND EMPLOYER RECOGNITION PROGRAM.
(a) Guidelines.--
(1) In general.--The Secretary of Labor shall develop
guidelines to enable employers to evaluate job categories based
on objective criteria such as educational requirements, skill
requirements, independence, working conditions, and responsibility,
including decisionmaking responsibility and de facto supervisory
responsibility.
(2) Use.--The guidelines developed under paragraph (1)
shall be designed to enable employers voluntarily to compare
wages paid for different jobs to determine if the pay scales
involved adequately and fairly reflect the educational
requirements, skill requirements, independence, working
conditions, and responsibility for each such job with the goal
of eliminating unfair pay disparities between occupations
traditionally dominated by men or women.
(3) Publication.--The guidelines shall be developed under
paragraph (1) and published in the Federal Register not later
than 180 days after the date of enactment of this Act.
(b) Employer Recognition.--
(1) Purpose.--It is the purpose of this subsection to
emphasize the importance of, encourage the improvement of, and
recognize the excellence of employer efforts to pay wages to
women that reflect the real value of the contributions of such
women to the workplace.
(2) In general.--To carry out the purpose of this
subsection, the Secretary of Labor shall establish a program
under which the Secretary shall provide for the recognition of
employers who, pursuant to a voluntary job evaluation conducted
by the employer, adjust their wage scales (such adjustments
shall not include the lowering of wages paid to men) using the
guidelines developed under subsection (a) to ensure that women
are paid fairly in comparison to men.
(3) Technical assistance.--The Secretary of Labor may
provide technical assistance to assist an employer in carrying
out an evaluation under paragraph (2).
(c) Regulations.--The Secretary of Labor shall promulgate such
rules and regulations as may be necessary to carry out this section.
SEC. 207. ESTABLISHMENT OF THE NATIONAL AWARD FOR PAY EQUITY IN THE
WORKPLACE.
(a) In General.--There is established the Alexis Herman National
Award for Pay Equity in the Workplace, which shall be evidenced by a
medal bearing the inscription ``Alexis Herman National Award for Pay
Equity in the Workplace''. The medal shall be of such design and
materials, and bear such additional inscriptions, as the Secretary of
Labor may prescribe.
(b) Criteria for Qualification.--To qualify to receive an award
under this section a business shall--
(1) submit a written application to the Secretary of Labor,
at such time, in such manner, and containing such information
as the Secretary may require, including at a minimum
information that demonstrates that the business has made
substantial effort to eliminate pay disparities between men and
women, and deserves special recognition as a consequence; and
(2) meet such additional requirements and specifications as
the Secretary of Labor determines to be appropriate.
(c) Making and Presentation of Award.--
(1) Award.--After receiving recommendations from the
Secretary of Labor, the President or the designated
representative of the President shall annually present the
award described in subsection (a) to businesses that meet the
qualifications described in subsection (b).
(2) Presentation.--The President or the designated
representative of the President shall present the award under
this section with such ceremonies as the President or the
designated representative of the President may determine to be
appropriate.
(d) Business.--In this section, the term ``business'' includes--
(1)(A) a corporation, including a nonprofit corporation;
(B) a partnership;
(C) a professional association;
(D) a labor organization; and
(E) a business entity similar to an entity described in any
of subparagraphs (A) through (D);
(2) an entity carrying out an education referral program, a
training program, such as an apprenticeship or management
training program, or a similar program; and
(3) an entity carrying out a joint program, formed by a
combination of any entities described in paragraph (1) or (2).
SEC. 208. COLLECTION OF PAY INFORMATION BY THE EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION.
Section 709 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-8) is
amended by adding at the end the following:
``(f)(1) Not later than 18 months after the date of enactment of
this subsection, the Commission shall--
``(A) complete a survey of the data that is currently
available to the Federal Government relating to employee pay
information for use in the enforcement of Federal laws
prohibiting pay discrimination and, in consultation with other
relevant Federal agencies, identify additional data collections
that will enhance the enforcement of such laws; and
``(B) based on the results of the survey and consultations
under subparagraph (A), issue regulations to provide for the
collection of pay information data from employers as described
by the sex, race, and national origin of employees.
``(2) In implementing paragraph (1), the Commission shall have as
its primary consideration the most effective and efficient means for
enhancing the enforcement of Federal laws prohibiting pay
discrimination. For this purpose, the Commission shall consider factors
including the imposition of burdens on employers, the frequency of
required reports (including which employers should be required to
prepare reports), appropriate protections for maintaining data
confidentiality, and the most effective format for the data collection
reports.''.
SEC. 209. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary to carry out this title.
TITLE III--LIFELONG LEARNING
SEC. 301. DEMONSTRATION PROGRAMS AND PROJECTS TO PROVIDE TECHNICAL
SKILLS TRAINING FOR WORKERS.
(a) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) Small business.--The term ``small business'' means a
business with not more than 100 employees.
(b) Programs and projects.--The Secretary shall carry out
demonstration programs or projects to provide technical skills training
for workers, including both employed and unemployed workers.
(c) Grants.--In carrying out programs or projects described in
subsection (b), the Secretary shall, in consultation with the Secretary
of Commerce, make grants to eligible partnerships.
(d) Eligible Partnerships.--
(1) In general.--To be eligible to receive such a grant, a
partnership shall be a local or regional public-private
partnership consisting of at least--
(A) 1 local workforce investment board established
under section 117 of the Workforce Investment Act of
1998 (29 U.S.C. 2832) (including a consortium of such
boards in a region);
(B) 1 institution of higher education (including a
consortium of such institutions);
(C) 1 business (including a consortium of such
businesses) or nonprofit employer; and
(D) 1 community-based organization, labor union, or
trade association.
(2) Designation of responsible fiscal agents.--Each
partnership described in paragraph (1) shall designate a
responsible fiscal agent to receive and disburse grant funds
under this section.
(e) Training.--
(1) Participants.--A partnership that receives a grant
under subsection (c) shall provide training through a program
or project described in subsection (b) to persons who are
employed and who wish to obtain and upgrade skills and to
persons who are unemployed.
(2) Preparation.--Such training shall not be limited to
upgrading skills to levels commensurate with a baccalaureate
degree, but shall, to the extent practicable, include the
preparation of workers for a broad range of positions along a
career ladder.
(f) Start-Up Activities.--
(1) In general.--Except as provided in paragraph (2), not
more than 5 percent, or $75,000, whichever is less, of the
funds made available through a single grant made under this
section may be used toward the start-up costs of a partnership
or training program or project.
(2) Exception.--In the case of partnerships consisting
primarily of small businesses, not more than 10 percent, or
$150,000, whichever is less, of the funds made available
through a single grant made under this section may be used
toward the start-up costs of a partnership or training program
or project.
(3) Duration of start-up period.--For purposes of this
subsection, a start-up period consists of a period of not more
than 2 months, beginning on the first day of the grant period.
At the end of the start-up period, training shall immediately
begin and no further Federal funds may be used for start-up
costs.
(g) Applications.--
(1) In general.--To be eligible to receive a grant under
this section, a partnership shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(2) Contents.--Each application for such a grant shall--
(A) provide evidence of the need for the training
to be provided through the grant, by providing evidence
of skill shortages as demonstrated through reliable
regional, State, or local data;
(B) articulate the level of skills that workers
will be trained for, the manner by which attainment of
those skills will be measured, and the number of
workers to be trained;
(C) include an agreement that the program or
project will be subject to evaluation by the Secretary
to measure the effectiveness of the program or project;
and
(D) show how the training provided through the
grant, and the learning that results, will have an
impact on how workers move up a career ladder and
influence the competitiveness of a business involved in
the partnership.
(3) Matching funds.--Each application for a grant to carry
out a program or project described in subsection (b) shall
state the manner by which the partnership will--
(A) make available, with respect to the costs to be
incurred by the partnership in carrying out the program
or project, non-Federal contributions (in cash or in
kind) in an amount equal to not less than 50 percent of
the Federal funds provided under the grant; and
(B) make the contributions available directly or
through donations from public or private entities, and
ensure that at least \1/2\ of the contributions will be
from businesses or nonprofit employers involved in the
partnership.
(h) Considerations.--
(1) Programs and projects with commitments.--In making
grants under this section, the Secretary shall give
consideration to an applicant that provides a specific,
measurable commitment--
(A) upon successful completion of a training course
by a participant--
(i) who is unemployed, to hire or
effectuate the hiring of the participant (where
applicable);
(ii) who is an incumbent worker, to
increase the wages or salary of the worker and
to provide other benefits described by the
applicant (where applicable); or
(iii) to provide skill certification to the
participant;
(B) to provide training that is linked to industry-
accepted occupational skill standards, certificates, or
licensing requirements; or
(C) to provide a program or project that will lead
to attainment of baccalaureate and associate degrees.
(2) Expanded and collaborative programs and projects.--In
making grants under this section, the Secretary shall give
consideration to an applicant that proposes to use grant funds--
(A) to demonstrate a significant ability to expand
a training program or project through such means as
training more workers or offering more courses;
(B) to carry out a training program or project
resulting from a collaboration, especially with more
than 1 small business or with an entity carrying out a
labor-management training program or project.
(3) Partnerships involving small businesses.--In making
grants under this section, the Secretary shall give
consideration to an applicant that involves and directly
benefits more than 1 small business.
(4) Donations from public or private entities.--In making
grants under this section, the Secretary shall give
consideration to an applicant that provides a specific
commitment that a portion of the non-Federal contribution
described in subsection (g)(3) will be made available through
donations from other public or private entities, so as to
demonstrate the long-term sustainability of the program or
project after the expiration of the grant period involved.
(i) Administrative Costs.--A partnership that receives a grant to
carry out a program or project described in subsection (b) may not use
more than 10 percent of the funds made available through the grant to
pay for administrative costs associated with the program or project.
(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this title $100,000,000 for fiscal year 2002
and such sums as may be necessary for each subsequent fiscal year.
TITLE IV--FAMILYCARE
SEC. 401. SHORT TITLE OF TITLE.
This title may be cited as the ``FamilyCare Act of 2001''.
SEC. 402. RENAMING OF TITLE XXI PROGRAM.
(a) In General.--The heading of title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.) is amended to read as follows:
``TITLE XXI--FAMILYCARE PROGRAM''.
(b) Program References.--Any reference in any provision of Federal
law or regulation to ``SCHIP'' or ``State children's health insurance
program'' under title XXI of the Social Security Act shall be deemed a
reference to the FamilyCare program under such title.
SEC. 403. FAMILYCARE COVERAGE OF PARENTS UNDER THE MEDICAID PROGRAM AND
TITLE XXI.
(a) Incentives To Implement FamilyCare Coverage.--
(1) Under medicaid.--
(A) Establishment of new optional eligibility
category.--Section 1902(a)(10)(A)(ii) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as
amended by section 2(a)(1) of the Breast and Cervical
Cancer Prevention and Treatment Act of 2000 (Public Law
106-354; 114 Stat. 1381), is amended--
(i) by striking ``or'' at the end of
subclause (XVII);
(ii) by adding ``or'' at the end of
subclause (XVIII); and
(iii) by adding at the end the following:
``(XIX) who are parents described
in subsection (k)(1), but only if the
State meets the conditions described in
subsection (k)(2);''.
(B) Conditions for coverage.--Section 1902 of the
Social Security Act is further amended by inserting
after subsection (j) the following:
``(k)(1)(A) Parents described in this paragraph are the parents of
an individual who is under 19 years of age (or such higher age as the
State may have elected under section 1902(l)(1)(D)) and who is eligible
and enrolled for medical assistance under subsection (a)(10)(A), if--
``(i) such parents are not otherwise eligible for such
assistance under such subsection; and
``(ii) the income of the family that includes such parents
does not exceed an income level specified by the State
consistent with paragraph (2)(B).
``(B) In this subsection, the term `parent' has the meaning given
the term `caretaker' for purposes of carrying out section 1931.
``(2) The conditions for a State to provide medical assistance
under subsection (a)(10)(A)(ii)(XIX) are as follows:
``(A) The State has a State child health plan under title
XXI which (whether implemented under such title or under this
title)--
``(i) has an income standard (or will establish an
income standard that is effective at the time
additional allotments are available to the State under
section 2104(d), as amended by the FamilyCare Act of
2001) for children that is at least 200 percent of the
poverty line; and
``(ii) does not limit the acceptance of
applications, does not use a waiting list for children
who meet eligibility standards to qualify for
assistance, and provides benefits to all children in
the State who apply for and meet eligibility standards.
``(B) The income level specified under paragraph (1)(A)(ii)
for parents in a family exceeds the income level applicable
under section 1931 but does not exceed the highest income level
applicable to a child in the family under this title. A State
may not cover such parents with higher family income without
covering parents with a lower family income.
``(3) In the case of a parent described in paragraph (1) who is
also the parent of a child who is eligible and enrolled for child
health assistance under title XXI, the State may elect (on a uniform
basis) to cover all such parents under section 2111 or under subsection
(a)(10)(A).''.
(C) Enhanced matching funds available.--Section
1905 of the Social Security Act (42 U.S.C. 1396d) is
amended--
(i) in the fourth sentence of subsection
(b), by striking ``or subsection (u)(3)'' and
inserting ``, (u)(3), or (u)(4)''; and
(ii) in subsection (u)--
(I) by redesignating paragraph (4)
as paragraph (6), and
(II) by inserting after paragraph
(3) the following:
``(4) For purposes of subsection (b) and section 2105(a)(1):
``(A) FamilyCare parents.--The expenditures described in
this subparagraph are the following:
``(i) Parents.--Expenditures for medical assistance
made available under section 1931, or under section
1902(a)(10)(A)(ii)(XIX) for parents described in
section 1902(k)(1), in a family the income of which
exceeds the income level applicable under such section
1931 to a family of the size involved as of January 1,
2000.
``(ii) Certain pregnant women.--Expenditures for
medical assistance for pregnant women under section
1902(l)(1)(A) in a family the income of which exceeds
the income level applicable under section 1902(l)(2)(A)
to a family of the size involved as of January 1,
2000.''.
(D) Appropriation from title xxi allotment for
certain medicaid expansion costs.--Subparagraph (C) of
section 2105(a)(1) of the Social Security Act, as
amended by section 414(a), is amended to read as
follows:
``(C) FamilyCare parents.--Expenditures for medical
assistance that is attributable to expenditures
described in section 1905(u)(4)(A).''.
(E) Only counting enhanced portion for coverage of
additional pregnant women.--Section 1905 of the Social
Security Act (42 U.S.C. 1396d) is amended--
(i) in the fourth sentence of subsection
(b), by inserting ``(except in the case of
expenditures described in subsection (u)(5))''
after ``do not exceed'';
(ii) in subsection (u), by inserting after
paragraph (4) (as inserted by subparagraph
(C)), the following:
``(5) For purposes of the fourth sentence of subsection (b) and
section 2105(a), the following payments under this title do not count
against a State's allotment under section 2104:
``(A) Regular fmap for expenditures for pregnant women with
income above january 1, 2000 income level and below 185 percent
of poverty.--The portion of the payments made for expenditures
described in paragraph (4)(A)(ii) that represents the amount
that would have been paid if the enhanced FMAP had not been
substituted for the Federal medical assistance percentage.''.
(2) Under title xxi.--
(A) FamilyCare coverage.--Title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.) is amended by
adding at the end the following:
``SEC. 2111. OPTIONAL FAMILYCARE COVERAGE OF PARENTS OF TARGETED LOW-
INCOME CHILDREN.
``(a) Optional Coverage.--Notwithstanding any other provision of
this title, a State child health plan may provide for coverage, through
an amendment to its State child health plan under section 2102, of
FamilyCare assistance for targeted low-income parents in accordance
with this section, but only if--
``(1) the State meets the conditions described in section
1902(k)(2); and
``(2) the State elects to provide medical assistance under
section 1902(a)(10)(A)(ii)(XIX) and elects an applicable income
limit that is not lower than the limit described in subsection
(b)(2)(A).
``(b) Definitions.--For purposes of this section:
``(1) FamilyCare assistance.--The term `FamilyCare
assistance' has the meaning given the term child health
assistance in section 2110(a) as if any reference to targeted
low-income children were a reference to targeted low-income
parents.
``(2) Targeted low-income parent.--The term `targeted low-
income parent' has the meaning given the term targeted low-
income child in section 2110(b) as if the reference to a child
were deemed a reference to a parent (as defined in paragraph
(3)) of the child; except that in applying such section--
``(A) there shall be substituted for the income
limit described in paragraph (1)(B)(ii)(I) the
applicable income limit in effect for a targeted low-
income child;
``(B) in paragraph (3), January 1, 2000, shall be
substituted for July 1, 1997; and
``(C) in paragraph (4), January 1, 2000, shall be
substituted for March 31, 1997.
``(3) Parent.--The term `parent' has the meaning given the
term `caretaker' for purposes of carrying out section 1931.
``(4) Optional treatment of pregnant women as parents.--A
State child health plan may treat a pregnant woman who is not
otherwise a parent as a targeted low-income parent for purposes
of this section but only if the State has established an income
level under section 1902(l)(2)(A)(i) for pregnant women that is
at least 185 percent of the income official poverty line
described in such section.
``(c) References to Terms and Special Rules.--In the case of, and
with respect to, a State providing for coverage of FamilyCare
assistance to targeted low-income parents under subsection (a), the
following special rules apply:
``(1) Any reference in this title (other than subsection
(b)) to a targeted low-income child is deemed to include a
reference to a targeted low-income parent.
``(2) Any such reference to child health assistance with
respect to such parents is deemed a reference to FamilyCare
assistance.
``(3) In applying section 2103(e)(3)(B) in the case of a
family provided coverage under this section, the limitation on
total annual aggregate cost-sharing shall be applied to the
entire family.
``(4) In applying section 2110(b)(4), any reference to
`section 1902(l)(2) or 1905(n)(2) (as selected by a State)' is
deemed a reference to the income level applicable to parents
under section 1931, or, in the case of a pregnant woman
described in subsection (b)(4), the income level established
under section 1902(l)(2)(A).''.
(B) Additional allotment for states providing
familycare.--
(i) In general.--Section 2104 of the Social
Security Act (42 U.S.C. 1397dd), as amended by
section 802(b) of the Medicare, Medicaid, and
SCHIP Benefits Improvement and Protection Act
of 2000 (as enacted into law by section 1(a)(6)
of Public Law 106-554), is amended by inserting
after subsection (c) the following:
``(d) Additional Allotments for State Providing FamilyCare.--
``(1) Appropriation; total allotment.--For the purpose of
providing additional allotments to States electing to provide
FamilyCare coverage under section 2111, there is appropriated,
out of any money in the Treasury not otherwise appropriated--
``(A) for fiscal year 2002, $2,000,000,000;
``(B) for fiscal year 2003, $2,000,000,000;
``(C) for fiscal year 2004, $3,000,000,000;
``(D) for fiscal year 2005, $3,000,000,000;
``(E) for fiscal year 2006, $6,000,000,000;
``(F) for fiscal year 2007, $7,000,000,000;
``(G) for fiscal year 2008, $8,000,000,000;
``(H) for fiscal year 2009, $9,000,000,000;
``(I) for fiscal year 2010, $10,000,000,000; and
``(J) for fiscal year 2011 and each fiscal year
thereafter, the amount of the allotment provided under
this paragraph for the preceding fiscal year increased
by the percentage increase (if any) in the medical care
expenditure category of the Consumer Price Index for
All Urban Consumers (United States city average).
``(2) State and territorial allotments.--
``(A) In general.--In addition to the allotments
provided under subsections (b) and (c), subject to
paragraph (3), of the amount available for the
additional allotments under paragraph (1) for a fiscal
year, the Secretary shall allot to each State with a
State child health plan approved under this title and
which has elected to provide coverage under section
2111 during the fiscal year--
``(i) in the case of such a State other
than a commonwealth or territory described in
clause (ii), the same proportion as the
proportion of the State's allotment under
section 2104(b) (determined without regard to
section 2104(f)) to 98.95 percent of the total
amount of the allotments under such section for
such States eligible for an allotment under
this subparagraph for such fiscal year; and
``(ii) in the case of a commonwealth or
territory described in section 2104(c)(3), the
same proportion as the proportion of the
commonwealth's or territory's allotment under
section 2104(c) (determined without regard to
section 2104(f)) to 1.05 percent of the total
amount of the allotments under such section for
commonwealths and territories eligible for an
allotment under this subparagraph for such
fiscal year.
``(B) Redistribution of unused allotments.--In
applying subsection (f) with respect to additional
allotments made available under this subsection, the
procedures established under such subsection shall
ensure such additional allotments are only made
available to States which have elected to provide
coverage under section 2111.
``(3) Use of additional allotment.--Additional allotments
provided under this subsection are not available for amounts
expended before October 1, 2001. Such amounts are available for
amounts expended on or after such date for child health
assistance for targeted low-income children, as well as for
FamilyCare assistance.''.
(ii) Conforming amendments.--Section 2104
of the Social Security Act (42 U.S.C. 1397dd),
as amended by section 802(d)(3) of the
Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as
enacted into law by section 1(a)(6) of Public
Law 106-554), is amended--
(I) in subsection (a), by inserting
``subject to subsection (d),'' after
``under this section,'';
(II) in subsection (b)(1), by
inserting ``and subsection (d)'' after
``Subject to paragraph (4)''; and
(III) in subsection (c)(1), by
inserting ``subject to subsection
(d),'' after ``for a fiscal year,''.
(C) No cost-sharing for pregnancy-related
benefits.--Section 2103(e)(2) of the Social Security
Act (42 U.S.C. 1397cc(e)(2)) is amended--
(i) in the heading, by inserting ``and
pregnancy-related services'' after ``preventive
services''; and
(ii) by inserting before the period at the
end the following: ``and for pregnancy-related
services''.
(3) Effective date.--The amendments made by this subsection
apply to items and services furnished on or after October 1,
2001.
(b) Rules for Implementation Beginning With Fiscal Year 2006.--
(1) Required coverage of familycare parents.--Section
1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(i)) is amended--
(A) by striking ``or'' at the end of subclause
(VI);
(B) by striking the semicolon at the end of
subclause (VII) and insert ``, or''; and
(C) by adding at the end the following:
``(VIII) who would be parents
described in subsection (k)(1) if the
income level specified in subsection
(k)(2)(B) were equal to at least 100
percent of the poverty line referred to
in such subsection;''.
(2) Expansion of availability of enhanced match under
medicaid for pre-chip expansions.--Paragraph (4) of section
1905(u) of the Social Security Act (42 U.S.C. 1396d(u)), as
inserted by subsection (a)(1)(C), is amended--
(A) by amending clause (ii) of subparagraph (A) to
read as follows:
``(ii) Certain pregnant women.--Expenditures for
medical assistance for pregnant women under section
1902(l)(1)(A) in a family the income of which exceeds
the 133 percent of the income official poverty line.'';
and
(B) by adding at the end the following:
``(B) Parents with income above 100 percent of poverty but
below january 1, 2000 income level.--The expenditures described
in this subparagraph are expenditures for medical assistance
made available for any parents described in section
1902(a)(10)(A)(i)(VIII), whose income exceeds 100 percent of
the income official poverty line applicable to a family of the
size involved but does not exceed the applicable income level
established under this title (under section 1931 or otherwise)
for a parent in a family of the size involved as of January 1,
2000.
``(C) Children in families with income above medicaid
mandatory level not previously described.--The expenditures
described in this subparagraph are expenditures (other than
expenditures described in paragraph (2) or (3)) for medical
assistance made available to any child who is eligible for
assistance under section 1902(a)(10)(A) and the income of whose
family exceeds the minimum income level required under
subsection 1902(l)(2) for a child of the age involved (treating
any child who is 19 or 20 years of age as being 18 years of
age).''.
(3) Offset of additional expenditures for enhanced match
for pre-chip expansion; elimination of offset for required
coverage of familycare parents.--
(A) In general.--Section 1905(u)(5) of the Social
Security Act (42 U.S.C. 1396d(u)(5)), as added by
subsection (a)(1)(E), is amended--
(i) by amending subparagraph (A) to read as
follows:
``(A) Regular fmap for expenditures for pregnant women with
income above 133 percent of poverty.--The portion of the
payments made for expenditures described in paragraph
(4)(A)(ii) that represents the amount that would have been paid
if the enhanced FMAP had not been substituted for the Federal
medical assistance percentage.''; and
(ii) by adding at the end the following:
``(B) FamilyCare parents under 100 percent of poverty.--
Payments for expenditures described in paragraph (4)(A)(i) in
the case of parents whose income does not exceed 100 percent of
the income official poverty line applicable to a family of the
size involved.
``(C) Regular fmap for expenditures for parents with income
above 100 percent of poverty but below january 1, 2000 income
level.--The portion of the payments made for expenditures
described in paragraph (4)(B) that represents the amount that
would have been paid if the enhanced FMAP had not been
substituted for the Federal medical assistance percentage.
``(D) Regular fmap for expenditures for certain children in
families with income above medicaid mandatory level.--The
portion of the payments made for expenditures described in
paragraph (4)(C) that represents the amount that would have
been paid if the enhanced FMAP had not been substituted for the
Federal medical assistance percentage.''.
(B) Conforming amendments.--Subparagraph (C) of
section 2105(a)(1) of the Social Security Act, as
amended by section 414(a) and subsection (a)(1)(D), is
amended to read as follows:
``(C) Certain familycare parents and others.--
Expenditures for medical assistance that is
attributable to expenditures described in section
1905(u)(4), except as provided in section
1905(u)(5).''.
(4) Effective date.--The amendments made by this subsection
apply as of October 1, 2005, to fiscal years beginning on or
after such date and to expenditures under the State plan on and
after such date.
(c) Making Title XXI Base Allotments Permanent.--Section 2104(a) of
the Social Security Act (42 U.S.C. 1397dd(a)) is amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10) and
inserting ``; and''; and
(3) by adding at the end the following:
``(11) for fiscal year 2008 and each fiscal year
thereafter, the amount of the allotment provided under this
subsection for the preceding fiscal year increased by the
percentage increase (if any) in the medical care expenditure
category of the Consumer Price Index for All Urban Consumers
(United States city average).''.
(d) Optional Application of Presumptive Eligibility Provisions to
Parents.--Section 1920A of the Social Security Act (42 U.S.C. 1396r-1a)
is amended by adding at the end the following:
``(e) In accordance with regulations, a State may elect to apply
the previous provisions of this section to provide for a period of
presumptive eligibility for medical assistance for a parent of a child
with respect to whom such a period is provided under this section.''.
(e) Conforming Amendments.--
(1) Eligibility categories.--Section 1905(a) of the Social
Security Act (42 U.S.C. 1396d(a)), as amended by section
2(a)(4) of the Breast and Cervical Cancer Prevention and
Treatment Act of 2000, is amended, in the matter before
paragraph (1)--
(A) by striking ``or'' at the end of clause (xii);
(B) by inserting ``or'' at the end of clause
(xiii); and
(C) by inserting after clause (xiii) the following:
``(xiv) who are parents described (or treated as if
described) in section 1902(k)(1),''.
(2) Income limitations.--Section 1903(f)(4) of the Social
Security Act (42 U.S.C. 1396b(f)(4)), as amended by section
702(a) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by
section 1(a)(6) of Public Law 106-554), is amended--
(A) effective October 1, 2005, by inserting
``1902(a)(10)(A)(i)(VIII),'' after
``1902(a)(10)(A)(i)(VII),''; and
(B) by inserting ``1902(a)(10)(A)(ii)(XIX),'' after
``1902(a)(10)(A)(ii)(XVIII),''.
(3) Conforming amendment relating to no waiting period for
certain women.--Section 2102(b)(1)(B) of the Social Security
Act (42 U.S.C. 1397bb(b)(1)(B)) is amended--
(A) by striking ``, and'' at the end of clause (i)
and inserting a semicolon;
(B) by striking the period at the end of clause
(ii) and inserting ``; and''; and
(C) by adding at the end the following:
``(iii) may not apply a waiting period
(including a waiting period to carry out
paragraph (3)(C)) in the case of targeted low-
income women who are pregnant.''.
SEC. 404. AUTOMATIC ENROLLMENT OF CHILDREN BORN TO TITLE XXI PARENTS.
Section 2102(b)(1) of the Social Security Act (42 U.S.C.
1397bb(b)(1)) is amended by adding at the end the following:
``(C) Automatic eligibility of children born to a
parent being provided familycare.--Such eligibility
standards shall provide for automatic coverage of a
child born to an individual who is provided assistance
under this title in the same manner as medical
assistance would be provided under section 1902(e)(4)
to a child described in such section.''.
SEC. 405. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID
PROGRAM AND TITLE XXI.
(a) Medicaid Program.--Section 1903(v) of the Social Security Act
(42 U.S.C. 1396b(v)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)''; and
(2) by adding at the end the following:
``(4)(A) A State may elect (in a plan amendment under this title)
to provide medical assistance under this title for aliens who are
lawfully residing in the United States (including battered aliens
described in section 431(c) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996) and who are otherwise eligible
for such assistance, within any of the following eligibility
categories:
``(i) Pregnant women.--Women during pregnancy (and during
the 60-day period beginning on the last day of the pregnancy).
``(ii) Children.--Children (as defined under such plan),
including optional targeted low-income children described in
section 1905(u)(2)(B).
``(iii) Parents.--If the State has elected the eligibility
category described in clause (ii), caretaker relatives who are
parents (as defined by the State) of children (described in
such clause or otherwise) who are eligible for medical
assistance under the plan.
``(B)(i) In the case of a State that has elected to provide medical
assistance to a category of aliens under subparagraph (A), no debt
shall accrue under an affidavit of support against any sponsor of such
an alien on the basis of provision of assistance to such category and
the cost of such assistance shall not be considered as an unreimbursed
cost.
``(ii) The provisions of sections 401(a), 402(b), 403, and 421 of
the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 shall not apply to a State that makes an election under
subparagraph (A).''.
(b) Title XXI.--Section 2107(e)(1) of the Social Security Act (42
U.S.C. 1397gg(e)(1)), as amended by section 803 of the Medicare,
Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (as
enacted into law by section 1(a)(6) of Public Law 106-554), is amended
by adding at the end the following:
``(E) Section 1903(v)(4) (relating to optional
coverage of categories of permanent resident alien
children and parents), but only, with respect to an
eligibility category under this title, if the same
eligibility category has been elected under such
section for purposes of title XIX.''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2001, and apply to medical assistance and child
health assistance furnished on or after such date.
SEC. 406. OPTIONAL COVERAGE OF CHILDREN THROUGH AGE 20 UNDER THE
MEDICAID PROGRAM AND TITLE XXI.
(a) Medicaid.--
(1) In general.--Section 1902(l)(1)(D) of the Social
Security Act (42 U.S.C. 1396a(l)(1)(D)) is amended by inserting
``(or, at the election of a State, 20 or 21 years of age)''
after ``19 years of age''.
(2) Conforming amendments.--
(A) Section 1902(e)(3)(A) of the Social Security
Act (42 U.S.C. 1396a(e)(3)(A)) is amended by inserting
``(or 1 year less than the age the State has elected
under subsection (l)(1)(D))'' after ``18 years of
age''.
(B) Section 1902(e)(12) of the Social Security Act
(42 U.S.C. 1396a(e)(12)) is amended by inserting ``or
such higher age as the State has elected under
subsection (l)(1)(D)'' after ``19 years of age''.
(C) Section 1902(l)(5) of the Social Security Act
(42 U.S.C. 1396a(l)(5)), as added by section
407(a)(1)(B), is amended by inserting ``(or such higher
age as the State has elected under paragraph (1)(D))''
after ``19 years of age''.
(D) Section 1920A(b)(1) of the Social Security Act
(42 U.S.C. 1396r-1a(b)(1)) is amended by inserting ``or
such higher age as the State has elected under section
1902(l)(1)(D)'' after ``19 years of age''.
(E) Section 1928(h)(1) of the Social Security Act
(42 U.S.C. 1396s(h)(1)) is amended by inserting ``or 1
year less than the age the State has elected under
section 1902(l)(1)(D)'' before the period at the end.
(F) Section 1932(a)(2)(A) of the Social Security
Act (42 U.S.C. 1396u-2(a)(2)(A)) is amended by
inserting ``(or such higher age as the State has
elected under section 1902(l)(1)(D))'' after ``19 years
of age''.
(b) Title XXI.--Section 2110(c)(1) of the Social Security Act (42
U.S.C. 1397jj(c)(1)) is amended by inserting ``(or such higher age as
the State has elected under section 1902(l)(1)(D))''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2001, and apply to medical assistance and child
health assistance provided on or after such date.
SEC. 407. APPLICATION OF SIMPLIFIED TITLE XXI PROCEDURES UNDER THE
MEDICAID PROGRAM.
(a) Application Under Medicaid.--
(1) In general.--Section 1902(l) of the Social Security Act
(42 U.S.C. 1396a(l)) is amended--
(A) in paragraph (3), by inserting ``subject to
paragraph (5)'', after ``Notwithstanding subsection
(a)(17),''; and
(B) by adding at the end the following:
``(5) With respect to determining the eligibility of individuals
under 19 years of age (or such higher age as the State has elected
under paragraph (1)(D)) for medical assistance under subsection
(a)(10)(A) and, separately, with respect to determining the eligibility
of individuals for medical assistance under subsection
(a)(10)(A)(i)(VIII) or (a)(10)(A)(ii)(XIX), notwithstanding any other
provision of this title, if the State has established a State child
health plan under title XXI--
``(A) the State may not apply a resource standard if the
State does not apply such a standard under such child health
plan with respect to such individuals;
``(B) the State shall use the same simplified eligibility
form (including, if applicable, permitting application other
than in person) as the State uses under such State child health
plan with respect to such individuals;
``(C) the State shall provide for initial eligibility
determinations and redeterminations of eligibility using the
same verification policies, forms, and frequency as the State
uses for such purposes under such State child health plan with
respect to such individuals; and
``(D) the State shall not require a face-to-face interview
for purposes of initial eligibility determinations and
redeterminations unless the State requires such an interview
for such purposes under such child health plan with respect to
such individuals.''.
(2) Effective date.--The amendments made by paragraph (1)
apply to determinations of eligibility made on or after the
date that is 1 year after the date of the enactment of this
Act.
(b) Presumptive Eligibility.--
(1) In general.--Section 1920A(b)(3)(A)(i) of the Social
Security Act (42 U.S.C. 1396r-1a(b)(3)(A)(i)), as amended by
section 708(a) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by
section 1(a)(6) of Public Law 106-554), is amended by inserting
``a child care resource and referral agency,'' after ``a State
or tribal child support enforcement agency,''.
(2) Application to presumptive eligibility for pregnant
women under medicaid.--Section 1920(b) of the Social Security
Act (42 U.S.C. 1396r-1(b)) is amended by adding at the end
after and below paragraph (2) the following flush sentence:
``The term `qualified provider' includes a qualified entity as defined
in section 1920A(b)(3).''.
(3) Application under title xxi.--
(A) In general.--Section 2107(e)(1)(D) of the
Social Security Act (42 U.S.C. 1397gg(e)(1)), as added
by section 803 of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (as
enacted into law by section 1(a)(6) of Public Law 106-
554), is amended to read as follows:
``(D) Sections 1920 and 1920A (relating to
presumptive eligibility).''.
(B) Exception from limitation on administrative
expenses.--Section 2105(c)(2) of the Social Security
Act (42 U.S.C. 1397ee(c)(2)) is amended by adding at
the end the following:
``(C) Exception for presumptive eligibility
expenditures.--The limitation under subparagraph (A) on
expenditures shall not apply to expenditures
attributable to the application of section 1920A
(pursuant to section 2107(e)(1)(D)), regardless of
whether the child is determined to be ineligible for
the program under this title or title XIX.''.
(c) Automatic Reassessment of Eligibility for Title XXI and
Medicaid Benefits for Children Losing Medicaid or Title XXI
Eligibility.--
(1) Loss of medicaid eligibility.--Section 1902(a) of the
Social Security Act (42 U.S.C. 1396a(a)) is amended--
(A) by striking the period at the end of paragraph
(65) and inserting ``; and'', and
(B) by inserting after paragraph (65) the
following:
``(66) provide, by not later than the first day of the
first month that begins more than 1 year after the date of the
enactment of this paragraph and in the case of a State with a
State child health plan under title XXI, that before medical
assistance to a child (or a parent of a child) is discontinued
under this title, a determination of whether the child (or
parent) is eligible for benefits under title XXI shall be made
and, if determined to be so eligible, the child (or parent)
shall be automatically enrolled in the program under such title
without the need for a new application.''.
(2) Loss of title xxi eligibility.--Section 2102(b)(3) (42
U.S.C. 1397bb(b)(3)) is amended by redesignating subparagraphs
(D) and (E) as subparagraphs (E) and (F), respectively, and by
inserting after subparagraph (C) the following:
``(D) that before health assistance to a child (or
a parent of a child) is discontinued under this title,
a determination of whether the child (or parent) is
eligible for benefits under title XIX is made and, if
determined to be so eligible, the child (or parent) is
automatically enrolled in the program under such title
without the need for a new application;''.
(3) Effective date.--The amendments made by paragraphs (1)
and (2) apply to individuals who lose eligibility under the
medicaid program under title XIX, or under a State child health
insurance plan under title XXI, respectively, of the Social
Security Act on or after the date that is 60 days after the
date of the enactment of this Act.
(d) Provision of Medicaid and CHIP Applications and Information
Under the School Lunch Program.--Section 9(b)(2)(B) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(B)) is
amended--
(1) by striking ``(B) Applications'' and inserting ``(B)(i)
Applications''; and
(2) by adding at the end the following:
``(ii)(I) Applications for free and reduced price lunches that are
distributed pursuant to clause (i) to parents or guardians of children
in attendance at schools participating in the school lunch program
under this Act shall also contain information on the availability of
medical assistance under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) (commonly referred to as the `medicaid program')
and of child health assistance under title XXI of such Act (commonly
referred to as `CHIP'), including information on how to obtain an
application for assistance under such program.
``(II) Information on the medicaid program and CHIP under subclause
(I) shall be provided on a form separate from the application form for
free and reduced price lunches under clause (i).''.
SEC. 408. IMPROVING WELFARE-TO-WORK TRANSITION UNDER THE MEDICAID
PROGRAM.
(a) Making Provision Permanent.--
(1) In general.--Subsection (f) of section 1925 of the
Social Security Act (42 U.S.C. 1396r-6) is repealed.
(2) Conforming amendment.--Section 1902(e)(1) of the Social
Security Act (42 U.S.C. 1396a(e)(1)) is repealed.
(b) State Option of Initial 12-Month Eligibility.--Section 1925 of
the Social Security Act (42 U.S.C. 1396r-6) is amended--
(1) in subsection (a), by adding at the end the following:
``(5) Option of 12-month initial eligibility period.--A
State may elect to treat any reference in this subsection to a
6-month period (or 6 months) as a reference to a 12-month
period (or 12 months). In the case of such an election,
subsection (b) shall not apply.''; and
(2) in subsection (b)(1), by inserting ``and subsection
(a)(5)'' after ``paragraph (3)''.
(c) Simplification Options.--
(1) Removal of administrative reporting requirements for
additional 6-month extension.--Section 1925(b)(2) of the Social
Security Act (42 U.S.C. 1396r-6(b)(2)) is amended--
(A) by striking subparagraph (B);
(B) in subparagraph (A)(i)--
(i) by striking ``(I)'' and all that
follows through ``(II)'' and inserting ``(i)'';
(ii) by striking ``, and (III)'' and
inserting ``and (ii)''; and
(iii) by redesignating such subparagraph as
subparagraph (A) (with appropriate
indentation); and
(C) in subparagraph (A)(ii)--
(i) by striking ``notify the family of the
reporting requirement under subparagraph
(B)(ii) and'' and inserting ``provide the
family with notification of''; and
(ii) by redesignating such subparagraph as
subparagraph (B) (with appropriate
indentation).
(2) Removal of requirement for previous receipt of medical
assistance.--Section 1925(a)(1) of the Social Security Act (42
U.S.C. 1396r-6(a)(1)) is amended--
(A) by redesignating the matter after
``Requirement.--'' as a subparagraph (A) with the
heading ``In general.--'' and with appropriate
indentation; and
(B) by adding at the end the following:
``(B) State option to waive requirement for
previous receipt of medical assistance.--A State may
elect to apply subparagraph (A) to any family whose
eligibility for assistance under section 1931 would
otherwise terminate because of hours of, or income
from, employment, without regard to the period of
previous receipt of assistance or aid.''.
(3) Permitting increase or waiver of 185 percent of poverty
earning limit.--Section 1925(b)(3)(A)(iii)(III) of the Social
Security Act (42 U.S.C. 1396r-6(b)(3)(A)(iii)(III)) is
amended--
(A) by inserting ``(at its option)'' after ``the
State''; and
(B) by inserting ``(or such higher percent as the
State may specify)'' after ``185 percent''.
(4) Exemption for states covering needy families up to 185
percent of poverty.--Section 1925 of the Social Security Act
(42 U.S.C. 1396r-6), as amended by subsection (a), is amended--
(A) in each of subsections (a)(1) and (b)(1), by
inserting ``but subject to subsection (f),'' after
``Notwithstanding any other provision of this title,'';
and
(B) by adding at the end the following:
``(f) Exemption for State Covering Needy Families Up to 185 Percent
of Poverty.--
``(1) In general.--At State option, the provisions of this
section shall not apply to a State that uses the authority
under section 1902(a)(10)(A)(ii)(XIX) or 1931(b)(2)(C) to make
medical assistance available under the State plan under this
title to all individuals who are parents described in section
1902(k)(1), or all individuals described in section 1931(b)(1),
and who are in families with gross incomes (determined without
regard to work-related child care expenses of such individuals)
at or below 185 percent of the income official poverty line (as
defined by the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981) applicable to a family of
the size involved.
``(2) Application to other provisions of this title.--The
State plan of a State described in paragraph (1) shall be
deemed to meet the requirements of sections
1902(a)(10)(A)(i)(I) and 1902(e)(1).''.
(d) Effective Date.--The amendments made by this section take
effect on October 1, 2001.
SEC. 409. ELIMINATION OF 100 HOUR RULE AND OTHER AFDC-RELATED
ELIGIBILITY RESTRICTIONS.
(a) In General.--Section 1931(b)(1)(A)(ii) of the Social Security
Act (42 U.S.C. 1396u-1(b)(1)(A)(ii)) is amended by inserting ``other
than the requirement that the child be deprived of parental support or
care by reason of the death, continued absence from the home,
incapacity, or unemployment of a parent,'' after ``section 407(a),''.
(b) Conforming Amendment.--Section 1905(a) of the Social Security
Act (42 U.S.C. 1396d(a)) is amended, in the matter before paragraph
(1), in clause (ii), by striking ``if such child is (or would, if
needy, be) a dependent child under part A of title IV''.
(c) Effective Date.--The amendments made by this section apply to
eligibility determinations made on or after October 1, 2001.
SEC. 410. STATE GRANT PROGRAM FOR MARKET INNOVATION.
(a) In General.--The Secretary of Health and Human Services (in
this section referred to as the ``Secretary'') shall establish a
program (in this section referred to as the ``program'') to award
demonstration grants under this section to States to allow States to
demonstrate the effectiveness of innovative ways to increase access to
health insurance through market reforms and other innovative means.
Such innovative means may include any of the following:
(1) Alternative group purchasing or pooling arrangements,
such as purchasing cooperatives for small businesses,
reinsurance pools, or high risk pools.
(2) Individual or small group market reforms.
(3) Consumer education and outreach.
(4) Subsidies to individuals, employers, or both, in
obtaining health insurance.
(b) Scope; Duration.--The program shall be limited to not more than
10 States and to a total period of 5 years, beginning on the date the
first demonstration grant is made.
(c) Conditions for Demonstration Grants.--
(1) In general.--The Secretary may not provide for a
demonstration grant to a State under the program unless the
Secretary finds that under the proposed demonstration grant--
(A) the State will provide for demonstrated
increase of access for some portion of the existing
uninsured population through a market innovation (other
than merely through a financial expansion of a program
initiated before the date of the enactment of this
Act);
(B) the State will comply with applicable Federal
laws;
(C) the State will not discriminate among
participants on the basis of any health status-related
factor (as defined in section 2791(d)(9) of the Public
Health Service Act (42 U.S.C. 300gg-91(d)(9)), except
to the extent a State wishes to focus on populations
that otherwise would not obtain health insurance
because of such factors; and
(D) the State will provide for such evaluation, in
coordination with the evaluation required under
subsection (d), as the Secretary may specify.
(2) Application.--The Secretary shall not provide a
demonstration grant under the program to a State unless--
(A) the State submits to the Secretary such an
application, in such a form and manner, as the
Secretary specifies;
(B) the application includes information regarding
how the demonstration grant will address issues such as
governance, targeted population, expected cost, and the
continuation after the completion of the demonstration
grant period; and
(C) the Secretary determines that the demonstration
grant will be used consistent with this section.
(3) Focus.--A demonstration grant proposal under this
section need not cover all uninsured individuals in a State or
all health care benefits with respect to such individuals.
(d) Evaluation.--The Secretary shall enter into a contract with an
appropriate entity outside the Department of Health and Human Services
to conduct an overall evaluation of the program at the end of the
program period. Such evaluation shall include an analysis of
improvements in access, costs, quality of care, or choice of coverage,
under different demonstration grants.
(e) Option To Provide for Initial Planning Grants.--Notwithstanding
the previous provisions of this section, under the program the
Secretary may provide for a portion of the amounts appropriated under
subsection (f) (not to exceed $5,000,000) to be made available to any
State for initial planning grants to permit States to develop
demonstration grant proposals under the previous provisions of this
section.
(f) Authorization of Appropriations.--There are authorized to be
appropriated $100,000,000 for each fiscal year to carry out this
section. Amounts appropriated under this subsection shall remain
available until expended.
(g) State Defined.--In this section, the term ``State'' has the
meaning given such term for purposes of title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
SEC. 411. LIMITATIONS ON CONFLICTS OF INTEREST.
(a) Limitation on Conflicts of Interest in Marketing Activities.--
(1) Title xxi.--Section 2105(c) of the Social Security Act
(42 U.S.C. 300aa-5(c)) is amended by adding at the end the
following:
``(8) Limitation on expenditures for marketing
activities.--Amounts expended by a State for the use of an
administrative vendor in marketing health benefits coverage to
low-income children under this title shall not be considered,
for purposes of subsection (a)(2)(D), to be reasonable costs to
administer the plan unless the following conditions are met
with respect to the vendor:
``(A) The vendor is independent of any entity
offering the coverage in the same area of the State in
which the vendor is conducting marketing activities.
``(B) No person who is an owner, employee,
consultant, or has a contract with the vendor either
has any direct or indirect financial interest with such
an entity or has been excluded from participation in
the program under this title or title XVIII or XIX or
debarred by any Federal agency, or subject to a civil
money penalty under this Act.''.
(b) Prohibition of Affiliation With Debarred Individuals.--
(1) Medicaid.--Section 1903(i) of the Social Security Act
(42 U.S.C. 1396b(i))is amended--
(A) by striking the period at the end of paragraph
(20) and inserting ``; or''; and
(B) by inserting after paragraph (20) the
following:
``(21) with respect to any amounts expended for an entity
that receives payments under the plan unless--
``(A) no person with an ownership or control
interest (as defined in section 1124(a)(3)) in the
entity is a person that is debarred, suspended, or
otherwise excluded from participating in procurement or
non-procurement activities under the Federal
Acquisition Regulation; and
``(B) such entity has not entered into an
employment, consulting, or other agreement for the
provision of items or services that are material to
such entity's obligations under the plan with a person
described in subparagraph (A).''.
(2) Title xxi.--Section 2107(e)(1) of the Social Security
Act (42 U.S.C. 1397gg(e)(1)), as amended by sections 405(b) and
407(b)(3), is further amended by adding at the end the
following:
``(F) Section 1902(a)(67) (relating to prohibition
of affiliation with debarred individuals).''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures made on or after the date of the enactment of
this Act.
SEC. 412. INCREASE IN CHIP ALLOTMENT FOR EACH OF FISCAL YEARS 2002
THROUGH 2004.
Paragraphs (5), (6), and (7) of Section 2104(a) of the Social
Security Act (42 U.S.C. 1397dd(a)) are amended by striking
``$3,150,000,000'' each place it appears and inserting
``$4,150,000,000''.
SEC. 413. DEMONSTRATION PROGRAMS TO IMPROVE MEDICAID AND CHIP OUTREACH
TO HOMELESS INDIVIDUALS AND FAMILIES.
(a) Authority.--The Secretary of Health and Human Services may
award demonstration grants to not more than 7 States (or other
qualified entities) to conduct innovative programs that are designed to
improve outreach to homeless individuals and families under the
programs described in subsection (b) with respect to enrollment of such
individuals and families under such programs and the provision of
services (and coordinating the provision of such services) under such
programs.
(b) Programs for Homeless Described.--The programs described in
this subsection are as follows:
(1) Medicaid.--The program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
(2) CHIP.--The program under title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.).
(3) TANF.--The program under part of A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
(4) SAMHSA block grants.--The program of grants under part
B of title XIX of the Public Health Service Act (42 U.S.C.
300x-1 et seq.).
(5) Food stamp program.--The program under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.).
(6) Workforce investment act.--The program under the
Workforce Investment Act of 1999 (29 U.S.C. 2801 et seq.).
(7) Welfare-to-work.--The welfare-to-work program under
section 403(a)(5) of the Social Security Act (42 U.S.C.
603(a)(5)).
(8) Other programs.--Other public and private benefit
programs that serve low-income individuals.
(c) Appropriations.--For the purposes of carrying out this section,
there is appropriated, out of any funds in the Treasury not otherwise
appropriated, $10,000,000, to remain available until expended.
SEC. 414. TECHNICAL AND CONFORMING AMENDMENTS TO AUTHORITY TO PAY
MEDICAID EXPANSION COSTS FROM TITLE XXI APPROPRIATION.
(a) Authority To Pay Medicaid Expansion Costs From Title XXI
Appropriation.--Section 2105(a) of the Social Security Act (42 U.S.C.
1397ee(a)) is amended to read as follows:
``(a) Allowable Expenditures.--
``(1) In general.--Subject to the succeeding provisions of
this section, the Secretary shall pay to each State with a plan
approved under this title, from its allotment under section
2104, an amount for each quarter equal to the enhanced FMAP
(or, in the case of expenditures described in subparagraph (B),
the Federal medical assistance percentage (as defined in the
first sentence of section 1905(b))) of the following
expenditures in the quarter:
``(A) Child health assistance under medicaid.--
Expenditures for child health assistance under the plan
for targeted low-income children in the form of
providing medical assistance for expenditures described
in the fourth sentence of section 1905(b).
``(B) Medicaid presumptive eligibility for
children.--Expenditures for the provision of medical
assistance on behalf of a child during a presumptive
eligibility period under section 1920A.
``(C) Reserved.--[reserved].
``(D) Child health assistance under this title.--
Expenditures for child health assistance under the plan
for targeted low-income children in the form of
providing health benefits coverage that meets the requirements of
section 2103.
``(E) Assistance and administrative expenditures
subject to limit.--Expenditures only to the extent
permitted consistent with subsection (c)--
``(i) for other child health assistance for
targeted low-income children;
``(ii) for expenditures for health services
initiatives under the plan for improving the
health of children (including targeted low-
income children and other low-income children);
``(iii) for expenditures for outreach
activities as provided in section 2102(c)(1)
under the plan; and
``(iv) for other reasonable costs incurred
by the State to administer the plan.
``(2) Order of payments.--Payments under a subparagraph of
paragraph (1) from a State's allotment for expenditures
described in each such subparagraph shall be made on a
quarterly basis in the order of such subparagraph in such
paragraph.
``(3) No duplicative payment.--In the case of expenditures
for which payment is made under paragraph (1), no payment shall
be made under title XIX.''.
(b) Conforming Amendments.--
(1) Section 1905(u).--Section 1905(u)(1)(B) of the Social
Security Act (42 U.S.C. 1396d(u)(1)(B)), as amended by section
801(d)(2) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by
section 1(a)(6) of Public Law 106-554), is amended by inserting
``and section 2105(a)(1)'' after ``subsection (b)''.
(2) Section 2105(c).--Section 2105(c) of the Social
Security Act (42 U.S.C. 1397ee(c)), as amended by section
801(d)(4) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by
section 1(a)(6) of Public Law 106-554), is amended--
(A) in paragraph (2)(A)--
(i) by striking ``paragraph (1)(D)'' and
inserting ``paragraph (1)(E)''; and
(ii) by striking ``subparagraphs (A), (C),
and (D) of paragraph (1) of such subsection''
and inserting ``paragraph (1) of such
subsection (other than subparagraph (B))''; and
(B) in paragraph (2)(B), by striking ``subsection
(a)(1)(D)'' and inserting ``subsection (a)(1)(E)''.
(3) Section 2110(a).--Section 2110(a) of the Social
Security Act (42 U.S.C. 1397jj) is amended by striking
``section 2105(a)(1)(D)(i)'' and inserting ``section
2105(a)(1)(E)(i)''.
(4) Section 802(c) of bipa.--Section 802(c) of the
Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000 (as enacted into law by section 1(a)(6)
of Public Law 106-554) is amended by striking ``subparagraph
(C) or (D)'' and inserting ``subparagraph (D) or (E)''.
(c) Effective Date.--The amendments made by this section shall be
effective as if included in the enactment of the Balanced Budget Act of
1997 (Public Law 105-33; 111 Stat. 251).
TITLE V--TAX RELIEF FOR WORKING FAMILIES
SEC. 501. INCREASED EARNED INCOME TAX CREDIT FOR 2 OR MORE QUALIFYING
CHILDREN.
(a) In General.--The table in section 32(b)(1)(A) of the Internal
Revenue Code of 1986 (relating to percentages) is amended--
(1) in the second item--
(A) by striking ``or more'', and
(B) by striking ``21.06'' and inserting ``19.06'',
and
(2) by inserting after the second item the following new
item:
``3 or more qualifying children.... 45.................................. 19.06''
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 502. SIMPLIFICATION OF DEFINITION OF EARNED INCOME.
(a) In General.--Section 32(c)(2)(A)(i) of the Internal Revenue
Code of 1986 (defining earned income) is amended by inserting ``, but
only if such amounts are includible in gross income for the taxable
year'' after ``other employee compensation''.
(b) Conforming Amendment.--Section 32(c)(2)(B) of the Internal
Revenue Code of 1986 is amended by striking ``and'' at the end of
clause (iv), by striking the period at the end of clause (v) and
inserting ``, and'', and by adding at the end the following new clause:
``(vi) the requirement under subparagraph
(A)(i) that an amount be includible in gross
income shall not apply if such amount is exempt
from tax under section 7873 or is derived
directly from restricted and allotted land
under the Act of February 8, 1887 (commonly
known as the Indian General Allotment Act) (25
U.S.C. 331 et seq.) or from land held under
Acts or treaties containing an exception
provision similar to the Indian General
Allotment Act.''
(c) Effective Date.--The amendment made by this section shall apply
to amounts received in taxable years beginning after December 31, 2001.
SEC. 503. SIMPLIFICATION OF DEFINITION OF CHILD DEPENDENT.
(a) Removal of Support Test for Certain Individuals.--Section
152(a) of the Internal Revenue Code of 1986 (relating to definition of
dependent) is amended to read as follows:
``(a) General Definition.--For purposes of this subtitle--
``(1) Dependent.--The term `dependent' means--
``(A) any individual described in paragraph (2)
over half of whose support, for the calendar year in
which the taxable year of the taxpayer begins, was
received from the taxpayer (or is treated under
subsection (c) as received from the taxpayer), or
``(B) any individual described in subsection (f).
``(2) Individuals.--An individual is described in this
paragraph if such individual is--
``(A) a brother, sister, stepbrother, or stepsister
of the taxpayer,
``(B) the father or mother of the taxpayer, or an
ancestor of either,
``(C) a stepfather or stepmother of the taxpayer,
``(D) a son or daughter of a brother or sister of
the taxpayer,
``(E) a brother or sister of the father or mother
of the taxpayer,
``(F) a son-in-law, daughter-in-law, father-in-law,
mother-in-law, brother-in-law, or sister-in-law of the
taxpayer, or
``(G) an individual (other than an individual who
at any time during the taxable year was the spouse,
determined without regard to section 7703, of the
taxpayer) who, for the taxable year of the taxpayer,
has as their principal place of abode the home of the
taxpayer and is a member of the taxpayer's
household.''.
(b) Other Modifications.--Section 152 of the Internal Revenue Code
of 1986 is amended by adding at the end the following:
``(f) Subsection (f) Dependents.--
``(1) In general.--An individual is described in this
subsection for the taxable year if such individual--
``(A) bears a relationship to the taxpayer
described in paragraph (2),
``(B) except in the case of an eligible foster
child or as provided in subsection (e), has the same
principal place of abode as the taxpayer for more than
one-half of such taxable year, and
``(C)(i) has not attained the age of 19 at the
close of the calendar year in which the taxable year
begins, or
``(ii) is a student (within the meaning of section
151(c)(4)) who has not attained the age of 24 at the
close of such calendar year.
``(2) Relationship test.--An individual bears a
relationship to the taxpayer described in this paragraph if
such individual is--
``(A) a son or daughter of the taxpayer, or a
descendant of either, or
``(B) a stepson or stepdaughter of the taxpayer.
``(3) Special rules.--
``(A) 2 or more claiming dependent.--Except as
provided in subparagraph (B), if an individual may be
claimed as a dependent by 2 or more taxpayers (but for
this subparagraph) for a taxable year beginning in the
same calendar year, only the taxpayer with the highest
adjusted gross income for such taxable year shall be
allowed the deduction with respect to such individual.
``(B) Release of claim to exemption.--Subparagraph
(A) shall not apply with respect to an individual if--
``(i) the taxpayer with the highest
adjusted gross income under subparagraph (A),
for any calendar year signs a written
declaration (in such manner and form as the
Secretary may by regulations prescribe) that
such taxpayer will not claim such individual as
a dependent for any taxable year beginning in
such calendar year,
``(ii) the other taxpayer provides over
half of such individual's support for the
calendar year in which the taxable year of such
other taxpayer begins, and
``(iii) such other taxpayer attaches such
written declaration to such taxpayer's return
for the taxable year beginning during such
calendar year.''.
(c) Rules Relating to Foster Child.--Section 152(b)(2) (relating to
rules relating to general definition) is amended by striking ``a foster
child'' and all that follows through ``individual)'' and inserting ``an
eligible foster child (as defined in section 32(c)(3)(B)(iii)) of an
individual''.
(d) Exemption From Gross Income Test.--Section 151(c)(3) (relating
to definition of child) is amended by striking ``or stepdaughter'' and
inserting ``stepdaughter, or a descendant of such individual''.
(e) Waiver of Deduction for Divorced Parents.--
(1) In general.--So much of section 152(e) as precedes
paragraph (4) (relating to support test in case of child of
divorced parents, etc.) is amended to read as follows:
``(e) Special Rules for Child of Divorced Parents.--
``(1) Release of claim to exemption.--In the case of a
child (as defined in section 151(c)(3)) of parents--
``(A) who are divorced or legally separated under a
decree of divorce or separate maintenance,
``(B) who are separated under a written separation
agreement, or
``(C) who live apart at all times during the last 6
months of the calendar year,
the custodial parent who is entitled to the deduction under
section 151 for a taxable year with respect to such child may
release such deduction to the noncustodial parent.
``(2) Procedure.--The noncustodial parent may claim a child
described in paragraph (1) as a dependent for the taxable year
if--
``(A) the custodial parent signs a written
declaration (in such manner and form as the Secretary
may by regulations prescribe) that such custodial
parent will not claim such child as a dependent for any
taxable year beginning in such calendar year,
``(B) the custodial parent and the noncustodial
parent provide over half of such child's support for
the calendar year in which the taxable years of such
parents begin, and
``(C) the noncustodial parent attaches such written
declaration to such noncustodial parent's return for
the taxable year beginning during such calendar year.
``(3) Definitions.--For purposes of this subsection--
``(A) Custodial parent.--The term `custodial
parent' means, with regard to an individual, a parent
who has custody of such individual for a greater
portion of the calendar year than the noncustodial
parent.
``(B) Noncustodial parent.--The term `noncustodial
parent' means the parent who is not the custodial
parent.''.
(2) Pre-1985 instruments.--Section 152(e)(4)(A) of such
Code is amended by striking ``A child'' and all that follows
through ``noncustodial parent'' and inserting ``A noncustodial
parent described in paragraph (1) shall be entitled to the
deduction under section 151 for a taxable year with respect to
a child if''.
(f) Conforming Amendments.--
(1) Section 1(g)(5)(A) of the Internal Revenue Code of 1986
is amended by inserting ``as in effect on the day before the
date of the enactment of the Enhancing Economic Security for
America's Working Families Act'' after ``152(e)''.
(2) Section 2(b)(1)(A)(i) of such Code is amended by
striking ``paragraph (2) or (4) of''.
(3) Section 2(b)(3)(B)(i) of such Code is amended by
striking ``paragraph (9)'' and inserting ``paragraph (2)(G)''.
(4) Section 21(e)(5)(A) of such Code is amended by striking
``paragraph (2) or (4) of''.
(5) Section 21(e)(5) of such Code is amended in the matter
following subclause (B) by inserting ``as in effect on the day
before the date of the enactment of the Enhancing Economic
Security for America's Working Families Act'' after
``152(e)(1)''.
(6) Section 32(c)(1)(G) of such Code is amended by striking
``(3)(D).'' and inserting ``(1)(C). An individual whose
qualifying child or qualifying children are not taken into
account under subsection (b) solely by reason of paragraph
(3)(D) shall be treated as an eligible individual if such
individual otherwise meets the requirements of subparagraph
(A)(ii).''.
(7) Section 32(c)(3)(B)(ii) of such Code is amended by
striking ``paragraph (2) or (4) of''.
(8) Section 51(i)(1)(C) of such Code is amended by striking
``152(a)(9)'' and inserting ``152(a)(2)(G)''.
(9) Section 152(b) of such Code is amended by striking
``specified in subsection (a)'' and inserting ``specified in
subsection (a)(2) or (f)(2)''.
(10) Section 152(c) of such Code is amended by striking
``(a)'' and inserting ``(a)(1)''.
(11) Section 7703(b)(1) of such Code is amended by striking
``paragraph (2) or (4) of''.
(12) The following provisions of such Code are each amended
by striking ``paragraphs (1) through (8) of section 152(a)''
and inserting ``subparagraphs (A) through (F) of subsection
(a)(2) or subsection (f)(2) of section 152'':
(A) Section 170(g)(3).
(B) Subparagraphs (A) and (B) of section 51(i)(1).
(C) The second sentence of section 213(d)(11).
(D) Section 529(e)(2)(B).
(E) Section 7702B(f)(2)(C)(iii).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 504. OTHER MODIFICATIONS TO EARNED INCOME TAX CREDIT.
(a) Modification of Joint Return Requirement.--Subsection (d) of
section 32 of the Internal Revenue Code of 1986 is amended to read as
follows:
``(d) Married Individuals.--
``(1) In general.--If the taxpayer is married at the close
of the taxable year, the credit shall be allowed under
subsection (a) only if the taxpayer and his spouse file a joint
return for the taxable year.
``(2) Marital status.--For purposes of paragraph (1), an
individual legally separated from his spouse under a decree of
divorce or of separate maintenance shall not be considered as
married.
``(3) Certain married individuals living apart.--For
purposes of paragraph (1), if--
``(A) an individual --
``(i) is married and files a separate
return, and
``(ii) has a qualifying child who is a son,
daughter, stepson, or stepdaughter of such
individual, and
``(B) during the last 6 months of such taxable
year, such individual and such individual's spouse do
not have the same principal place of abode,
such individual shall not be considered as married.''
(b) Modification of Rule Where There Are 2 or More Eligible
Individuals.--Subparagraph (C) of section 32(c)(1) of such Code is
amended to read as follows:
``(C) 2 or more eligible individuals.--
``(i) In general.--Except as provided in
clause (ii), if 2 or more individuals would
(but for this subparagraph and after
application of subparagraph (B)) be treated as
eligible individuals with respect to the same
qualifying child for taxable years beginning in
the same calendar year, only the individual
with the highest modified adjusted gross income
for such taxable years shall be treated as an
eligible individual with respect to such
qualifying child.
``(ii) Exception for certain parents.--An
otherwise eligible individual who is not
treated under clause (i) as the only eligible
individual with respect to any qualifying child
shall be treated as an eligible individual with
respect to such child if--
``(I) such child is the son,
daughter, stepson, or stepdaughter of
such individual,
``(II) such child is not taken into
account under subsection (b) by any
other individual, and
``(III) the limitation under
subsection (a)(2) for the individual
who would (but for this clause) be
treated under clause (i) as the only
eligible individual with respect to
such child would be greater than zero
(determined as if such individual had 2
qualifying children).''
(c) Expansion of Mathematical Error Authority.--Paragraph (2) of
section 6213(g) of such Code is amended by striking ``and'' at the end
of subparagraph (K), by striking the period at the end of subparagraph
(L) and inserting ``, and'', and by inserting after subparagraph (L)
the following new subparagraph:
``(M) the entry on the return claiming the credit
under section 32 with respect to a child if, according
to the Federal Case Registry of Child Support Orders
established under section 453(h) of the Social Security
Act, the taxpayer is a noncustodial parent of such
child.''
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
TITLE VI--RESTORING FOOD STAMPS FOR LEGAL IMMIGRANTS AND THEIR FAMILIES
SEC. 601. RESTORATION OF FOOD STAMP BENEFITS FOR ALIENS.
(a) Limited Eligibility of Qualified Aliens for Certain Federal
Programs.--
(1) In general.--Section 402(a) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1612(a)) is amended--
(A) in paragraph (2)--
(i) in subparagraph (A), by striking
``Federal programs'' and inserting ``Federal
program'';
(ii) in subparagraph (D)--
(I) by striking clause (ii); and
(II) in clause (i)--
(aa) by striking ``(i)
SSI.--'' and all that follows
through ``paragraph (3)(A)''
and inserting the following:
``(i) In general.--With respect to the
specified Federal program described in
paragraph (3)'';
(bb) by redesignating
subclauses (II) through (IV) as
clauses (ii) through (iv) and
indenting appropriately;
(cc) by striking
``subclause (I)'' each place it
appears and inserting ``clause
(i)''; and
(dd) in clause (iv) (as
redesignated by item (bb)), by
striking ``this clause'' and
inserting ``this
subparagraph'';
(iii) in subparagraph (E), by striking
``paragraph (3)(A) (relating to the
supplemental security income program)'' and
inserting ``paragraph (3)'';
(iv) in subparagraph (F);
(I) by striking ``Federal
programs'' and inserting ``Federal
program'';
(II) in clause (ii)(I)--
(aa) by striking ``(I) in
the case of the specified
Federal program described in
paragraph (3)(A),''; and
(bb) by striking ``; and''
and inserting a period; and
(III) by striking subclause (II);
(v) in subparagraph (G), by striking
``Federal programs'' and inserting ``Federal
program'';
(vi) in subparagraph (H), by striking
``paragraph (3)(A) (relating to the
supplemental security income program)'' and
inserting ``paragraph (3)''; and
(vii) by striking subparagraphs (I), (J),
and (K); and
(B) in paragraph (3)--
(i) by striking ``means any'' and all that
follows through ``The supplemental'' and
inserting ``means the supplemental''; and
(ii) by striking subparagraph (B).
(2) Conforming amendment.--Section 402(b)(2)(F) of the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (8 U.S.C. 1612(b)(2)(F)) is amended by striking
``subsection (a)(3)(A)'' and inserting ``subsection (a)(3)''.
(b) Five-Year Limited Eligibility of Qualified Aliens for Federal
Means-Tested Public Benefit.--Section 403 of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1613) is amended--
(1) in subsection (c)(2), by adding at the end the
following:
``(L) Assistance or benefits under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.).''; and
(2) in subsection (d)--
(A) by striking ``not apply'' and all that follows
through ``(1) an individual'' and inserting ``not apply
to an individual''; and
(B) by striking ``; or'' and all that follows
through ``402(a)(3)(B)''.
(c) Authority for States To Provide for Attribution of Sponsor's
Income and Resources to the Alien With Respect to State Programs.--
Section 422(b) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1632(b)) is amended by adding at
the end the following:
``(8) Programs comparable to assistance or benefits under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).''.
(d) Requirements for Sponsor's Affidavit of Support.--Section
423(d) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1183a note; Public Law 104-193) is
amended by adding at the end the following:
``(12) Benefits under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.), if a sponsor is unable to make the reimbursement
because the sponsor experiences hardship (including bankruptcy,
disability, and indigence) or if the sponsor experiences severe
circumstances beyond the control of the sponsor, as determined
by the Secretary of Agriculture.''.
(e) Derivative Eligibility for Benefits.--Section 436 of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1646) is repealed.
(f) Application.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall apply to
assistance or benefits provided under the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.) for months beginning on or after
October 1, 2001.
(2) Refugees and asylees.--In the case of an alien
described in section 402(a)(2)(A) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1612(a)(2)(A)), this section and the amendments made
by this section shall apply to assistance or benefits provided
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) for
months beginning on or after April 1, 2000.
<all>