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<bill bill-stage="Introduced-in-House" bill-type="olc" dms-id="HABB19A3B716647E6909092DF92BAE8E8" public-private="public">
<metadata xmlns:dc="http://purl.org/dc/elements/1.1/">
<dublinCore>
<dc:title>110 HR 2147 IH: To amend titles XXI and XIX of the Social Security Act to
</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2007-05-03</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
</dublinCore>
</metadata>
	<form>
		<distribution-code display="yes">I</distribution-code>
		<congress>110th CONGRESS</congress>
		<session>1st Session</session>
		<legis-num>H. R. 2147</legis-num>
		<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber>
		<action>
			<action-date date="20070503">May 3, 2007</action-date>
			<action-desc><sponsor name-id="E000287">Mr. Emanuel</sponsor> (for
			 himself, <cosponsor name-id="R000033">Mr. Ramstad</cosponsor>,
			 <cosponsor name-id="L000552">Mr. LaHood</cosponsor>,
			 <cosponsor name-id="R000573">Mr. Ross</cosponsor>, <cosponsor name-id="S001162">Ms. Schwartz</cosponsor>, <cosponsor name-id="S001170">Ms.
			 Shea-Porter</cosponsor>, <cosponsor name-id="E000172">Mrs. Emerson</cosponsor>,
			 <cosponsor name-id="K000113">Mr. Kennedy</cosponsor>,
			 <cosponsor name-id="C001069">Mr. Courtney</cosponsor>,
			 <cosponsor name-id="P000585">Mr. Platts</cosponsor>,
			 <cosponsor name-id="S001150">Mr. Schiff</cosponsor>,
			 <cosponsor name-id="M000309">Mrs. McCarthy of New York</cosponsor>,
			 <cosponsor name-id="M000590">Mr. McNulty</cosponsor>,
			 <cosponsor name-id="A000361">Mr. Alexander</cosponsor>,
			 <cosponsor name-id="H001042">Ms. Hirono</cosponsor>,
			 <cosponsor name-id="B001231">Ms. Berkley</cosponsor>,
			 <cosponsor name-id="S001168">Mr. Sarbanes</cosponsor>,
			 <cosponsor name-id="C001068">Mr. Cohen</cosponsor>,
			 <cosponsor name-id="M000933">Mr. Moran of Virginia</cosponsor>,
			 <cosponsor name-id="N000147">Ms. Norton</cosponsor>,
			 <cosponsor name-id="J000283">Mr. Jackson of Illinois</cosponsor>,
			 <cosponsor name-id="D000602">Mr. Davis of Alabama</cosponsor>,
			 <cosponsor name-id="S000510">Mr. Smith of Washington</cosponsor>,
			 <cosponsor name-id="K000188">Mr. Kind</cosponsor>, <cosponsor name-id="T000057">Mrs. Tauscher</cosponsor>, <cosponsor name-id="C001038">Mr.
			 Crowley</cosponsor>, <cosponsor name-id="R000515">Mr. Rush</cosponsor>,
			 <cosponsor name-id="H001040">Mr. Hare</cosponsor>, <cosponsor name-id="H001038">Mr. Higgins</cosponsor>, <cosponsor name-id="B001259">Mr.
			 Braley of Iowa</cosponsor>, <cosponsor name-id="S000672">Mr.
			 Snyder</cosponsor>, <cosponsor name-id="M001137">Mr. Meeks of New
			 York</cosponsor>, and <cosponsor name-id="C001061">Mr. Cleaver</cosponsor>)
			 introduced the following bill; which was referred to the
			 <committee-name committee-id="HIF00">Committee on Energy and
			 Commerce</committee-name>, and in addition to the Committee on
			 <committee-name committee-id="HWM00">Ways and Means</committee-name>, for a
			 period to be subsequently determined by the Speaker, in each case for
			 consideration of such provisions as fall within the jurisdiction of the
			 committee concerned</action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To amend titles XXI and XIX of the Social Security Act to
		  extend the State Children’s Health Insurance Program (SCHIP) and streamline
		  enrollment under SCHIP and Medicaid and to amend the Internal Revenue Code of
		  1986 to provide for a healthy savings tax credit for purchase of children’s
		  health coverage.</official-title>
	</form>
	<legis-body id="H749A3D5526A743BCA9C9D237E6B7385C" style="OLC">
		<section id="H09D48F37888743A9BF1EC6017D21C885" section-type="section-one"><enum>1.</enum><header>Short title; table of
			 contents; findings</header>
			<subsection id="H31B94CC267F94F0D99EBFB9B76F24207"><enum>(a)</enum><header>Short
			 title</header><text>This Act may be cited as the <quote>Healthy Kids Act of
			 2007</quote>.</text>
			</subsection><subsection id="H5FE5EF132DA14FAD9D455074BB87E133"><enum>(b)</enum><header>Table of
			 contents</header><text>The table of contents of this Act is as follows:</text>
				<toc container-level="legis-body-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
					<toc-entry idref="H09D48F37888743A9BF1EC6017D21C885" level="section">Sec. 1. Short title; table of contents; findings.</toc-entry>
					<toc-entry idref="H0DAA70ED478143009DD1EBE5C5B9839" level="title">Title I—SCHIP Extension</toc-entry>
					<toc-entry idref="HAF2E8E6973AE4B579B1EE5CEF4841F08" level="section">Sec. 101.  Extension of SCHIP program.</toc-entry>
					<toc-entry idref="H728F9D86DA264AFAAC80562241A6439E" level="section">Sec. 102. 1-year initial availability of SCHIP
				allotments.</toc-entry>
					<toc-entry idref="HFC5F29D9052E4303B242433BEAEA3FE8" level="section">Sec. 103. Redistribution of unused allotments to address State
				funding shortfalls.</toc-entry>
					<toc-entry idref="HB7BC76B93AF14ECF990056DA2F00F330" level="title">Title II—Increasing Enrollment Under SCHIP and
				Medicaid</toc-entry>
					<toc-entry idref="H907624FF5EEA4E6796AD47F178D252D4" level="section">Sec. 201. Bonus payments for States that implement
				administrative policies to streamline enrollment process.</toc-entry>
					<toc-entry idref="H349057E1D1AA464EBC5F6BF9186687D6" level="section">Sec. 202. State option to provide for <quote>express
				lane</quote> and simplified determinations of a child’s financial eligibility
				for medical assistance under Medicaid or child health assistance under
				SCHIP.</toc-entry>
					<toc-entry idref="HAD1B87AB12F14D178B2F5410D7B66207" level="section">Sec. 203. Information technology connections to improve health
				coverage determinations.</toc-entry>
					<toc-entry idref="HB4BA288979AD438CA6D7FF8BC0F53DAB" level="section">Sec. 204. State option to expand or add coverage of certain
				pregnant women under SCHIP.</toc-entry>
					<toc-entry idref="HC247478C7FED43D5A302205909A03684" level="section">Sec. 205. Optional coverage of legal immigrants under the
				medicaid program and SCHIP.</toc-entry>
					<toc-entry idref="H9BE6D968C9FA4ECE94D5EE8EB117B99B" level="section">Sec. 206. Authorizing adjustment of SCHIP allotment due to
				increased outreach.</toc-entry>
					<toc-entry idref="HD6F166638DCA4CB49685A8864B42FEE7" level="section">Sec. 207. Grants to promote innovative outreach and enrollment
				under Medicaid and SCHIP.</toc-entry>
					<toc-entry idref="HC6A094A737C9485F8B8B130051378FD2" level="section">Sec. 208. Model of Interstate coordinated enrollment and
				coverage process.</toc-entry>
					<toc-entry idref="HD20C065CCA0943C5BE6928EC50589DC5" level="section">Sec. 209. Authority for qualifying States to use portion of
				SCHIP allotment for any fiscal year for certain medicaid
				expenditures.</toc-entry>
					<toc-entry idref="H5E55C8B936C94CDD00F52B093792EB6" level="section">Sec. 210. Application of medicaid outreach procedures to all
				pregnant women and children.</toc-entry>
					<toc-entry idref="H52F4227DED1D406EB51FBB9926DC99AC" level="section">Sec. 211. No impact on section 1115 waivers.</toc-entry>
					<toc-entry idref="H7D02BDDD35314F64936482B46718345D" level="section">Sec. 212. Elimination of counting medicaid child presumptive
				eligibility costs against title XXI allotment.</toc-entry>
					<toc-entry idref="H5D36A47B5D3147D400D79E591BCA5EFE" level="section">Sec. 213. Prohibiting limitations on enrollment.</toc-entry>
					<toc-entry idref="H1C28AE88AA3341299940EDFEF0F25F59" level="title">Title III—Healthy savings tax credit</toc-entry>
					<toc-entry idref="HDBF54CBA0CAC4B75BDB6E502D9B86B59" level="section">Sec. 301. Healthy savings tax credit.</toc-entry>
					<toc-entry idref="H38F63556EEC4498D8FF4EFF68B892511" level="title">Title IV—Broker reporting of customer’s basis in securities
				transactions</toc-entry>
					<toc-entry idref="HE937C1E5E78D44D2BA004912DABDE8DC" level="section">Sec. 401. Broker reporting of customer's basis in securities
				transactions.</toc-entry>
				</toc>
			</subsection><subsection id="H50ED124A0D524D20B9FA8E080566D2CA"><enum>(c)</enum><header>Findings
			 regarding the need for universal health coverage for
			 children</header><text>Congress finds the following:</text>
				<paragraph id="HAF7D1E82045349AB944B2959D9DCB45"><enum>(1)</enum><text display-inline="yes-display-inline">Currently, there are more than 9 million
			 children who are uninsured in the United States.</text>
				</paragraph><paragraph id="H6F42363E79EB4E0EBCE576BBB4C53D23"><enum>(2)</enum><text>Approximately 75
			 percent of uninsured children are eligible for Medicaid or the State Children’s
			 Health Insurance Program (SCHIP).</text>
				</paragraph><paragraph id="HB67257AD528D4447A2AD956C18971028"><enum>(3)</enum><text>As the wealthiest
			 nation in the world, the United States can and should be doing a better job to
			 improve the health of children.</text>
				</paragraph><paragraph id="HC542DBB928F24E43AF3200C3BD9E8000"><enum>(4)</enum><text>In 2004, according
			 to the World Health Organization, the United States ranked 35th on infant
			 mortality, behind Korea and Cuba.</text>
				</paragraph><paragraph id="H023A30B7216B4500BCA1846654437700"><enum>(5)</enum><text>Two-thirds of
			 nations have lower rates of children dying from injuries than does the United
			 States.</text>
				</paragraph><paragraph id="H7BFFF05F28A148C6B8ABAB6D2BF12F3E"><enum>(6)</enum><text>One-third of
			 uninsured children in the United States went without any medical care for the
			 entire year in 2003, while 88 percent of insured children received care.</text>
				</paragraph><paragraph id="HE2A7215CE0F54CBFA618C47E57B9598B"><enum>(7)</enum><text>Uninsured children
			 more often have unmet health care needs and delay seeking care, resulting in
			 poorer health.</text>
				</paragraph><paragraph id="H96801305A48C4384B3341DA26411873C"><enum>(8)</enum><text>Uninsured children
			 are less likely to have access to and receive appropriate preventive care, such
			 as immunizations, hearing and vision screens, and monitoring of growth and
			 development.</text>
				</paragraph><paragraph id="H808D7E6BFB174DB9867EB58EE6B2629F"><enum>(9)</enum><text>Uninsured children
			 are between three and five times more likely to have an unmet medical need than
			 are insured children.</text>
				</paragraph><paragraph id="HAB6B0D55B13F4CC09E7B90637FAF7775"><enum>(10)</enum><text>Uninsured
			 children may delay necessary care because they visit a doctor only when their
			 care needs become urgent.</text>
				</paragraph><paragraph id="H80829A545022462B94EAC5A2FF003EE4"><enum>(11)</enum><text>Uninsured
			 children are four times more likely than insured children to seek care in an
			 emergency department with conditions that could have been avoided.</text>
				</paragraph><paragraph id="H130A68B68DF248D8B7AFD14C36556393"><enum>(12)</enum><text>The cost of unmet
			 health needs among children extends beyond measurable health system
			 costs.</text>
				</paragraph><paragraph id="HAE9ABEFDE3D046C9A53E01AE59D85619"><enum>(13)</enum><text display-inline="yes-display-inline">Recognizing that children whose parents
			 have health insurance are more likely to obtain preventive and necessary care,
			 many States are employing strategies to promote coverage of the entire family
			 and offer programs that leverage employer sponsored insurance.</text>
				</paragraph><paragraph id="H538F0A390EAF4EF889A7E6247F9B4462"><enum>(14)</enum><text>Problems that
			 should be managed or cured with regular access to health care result in lower
			 school attendance.</text>
				</paragraph><paragraph id="HFF8CDAB02C804A0EB986B5CF7148861B"><enum>(15)</enum><text>In 2004, asthma
			 alone accounted for an estimate 14 million lost school days among
			 children.</text>
				</paragraph><paragraph id="HB6C8C5A2D58F45B7BA38A16F4D14C418"><enum>(16)</enum><text>Recurrent ear
			 infections, which could be addressed through regular access to health care,
			 reduce children’s ability to communicate and thus school readiness and
			 performance.</text>
				</paragraph></subsection><subsection id="HE5FDEDA4CCEA46AA9CEECC80489D4D9E"><enum>(d)</enum><header>Findings
			 regarding the role of Medicaid and SCHIP in covering
			 children</header><text>Congress finds the following:</text>
				<paragraph id="HF8CFD31684AE40779D965801B2A48E9B"><enum>(1)</enum><text display-inline="yes-display-inline">Since SCHIP was created, enormous progress
			 has been made in reducing disparities in children’s coverage rates.</text>
				</paragraph><paragraph id="H31E878D164D546178617EAD620BC33CF"><enum>(2)</enum><text>SCHIP and Medicaid
			 have improved children’s coverage rates and access to needed health care
			 services.</text>
				</paragraph><paragraph id="HBDD5DACB66B7470D908DAAD3147114C1"><enum>(3)</enum><text>SCHIP and Medicaid
			 account for the 30 percent decline in the number of uninsured children since
			 1998, even as employer-based coverage decreased and the overall rate of
			 uninsured people grew.</text>
				</paragraph><paragraph id="H0A03BCD9DC064036A254B3FBCF7FDCEB"><enum>(4)</enum><text>Children enrolled
			 in SCHIP or Medicaid are three times more likely to have a usual source of care
			 than are uninsured children.</text>
				</paragraph><paragraph id="HB2C88E837DCE4E449D1EB567AA659077"><enum>(5)</enum><text>SCHIP reduces the
			 percent of children with an unmet health care need.</text>
				</paragraph><paragraph id="H52D8E8C7125143139E10775B5D7BAAED"><enum>(6)</enum><text>According to a
			 Federal evaluation of SCHIP, uninsured children who gained coverage through
			 SCHIP received more preventive care, and their parents reported better access
			 to providers and improved communications with their children’s doctors.</text>
				</paragraph><paragraph id="H9B7E19D3EFB147799E85BFD67D61DCA1"><enum>(7)</enum><text>SCHIP covers
			 children who would otherwise be uninsured.</text>
				</paragraph><paragraph id="H94DF6A28A3DD448A89D88E82382E436"><enum>(8)</enum><text>Most newly enrolled
			 children in SCHIP were previously uninsured or had recently lost their Medicaid
			 or private health coverage for involuntary reasons.</text>
				</paragraph><paragraph id="HED8901B186CC47D0BD2B00558F3F8545"><enum>(9)</enum><text display-inline="yes-display-inline">SCHIP established important strategies to
			 avoid “crowd out” of existing health insurance coverage, and research suggests
			 that these measures remain critical to the effective use of public
			 dollars.</text>
				</paragraph></subsection></section><title id="H0DAA70ED478143009DD1EBE5C5B9839"><enum>I</enum><header>SCHIP
			 Extension</header>
			<section id="HAF2E8E6973AE4B579B1EE5CEF4841F08"><enum>101.</enum><header>Extension of
			 SCHIP program</header><text display-inline="no-display-inline">Section 2104 of
			 the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397dd">42 U.S.C. 1397dd</external-xref>) is amended—</text>
				<paragraph id="H3E36D53C54254290AD829FF51DE481CF"><enum>(1)</enum><text>in subsection
			 (a)—</text>
					<subparagraph id="H774262561065491D8C28B3067E6320D0"><enum>(A)</enum><text>by striking
			 <quote>and</quote> at the end of paragraph (9);</text>
					</subparagraph><subparagraph id="HF5D2FF7A63E4480898511347C71F8CA4"><enum>(B)</enum><text>by striking the
			 period at the end of paragraph (10) and inserting <quote>; and</quote>;
			 and</text>
					</subparagraph><subparagraph id="H7227772F5B4F44229DA8C63B00A9A91"><enum>(C)</enum><text>by adding at the
			 end the following new paragraph:</text>
						<quoted-block display-inline="no-display-inline" id="HB6EAEE33381B472F8FEC0062D993D2C5" style="OLC">
							<paragraph id="HF7CFB511787942E796061C13C623008E"><enum>(11)</enum><text>for each fiscal
				year 2008 and each subsequent fiscal year, $7,500,000,000 multiplied by the
				population and cost inflation factor for that fiscal year, as determined under
				subsection (i).</text>
							</paragraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</subparagraph></paragraph><paragraph id="H826F46465F0C42009677141C35D75C1E"><enum>(2)</enum><text>by adding at the
			 end the following new subsection:</text>
					<quoted-block display-inline="no-display-inline" id="H3D8379A731A849F59F5436007C13CD8D" style="OLC">
						<subsection id="H6F2D53A7B5004A719F1F61F3004B0C"><enum>(i)</enum><header>Population and
				cost inflation factor</header><text display-inline="yes-display-inline">For
				purposes of subsection (a)(11), the population and cost inflation factor for a
				fiscal year is equal to the product of the following:</text>
							<paragraph id="HDD794457710049D580001F201956ABAC"><enum>(1)</enum><header>Child population
				growth factor</header><text>One plus the percentage increase in the population
				of children under 20 years of age in the United States from July 1, 2007, to
				July 1 during the fiscal year involved, as projected by the Secretary based on
				the most recent published estimates of the Bureau of the Census before the
				beginning of the fiscal year involved.</text>
							</paragraph><paragraph id="H05541EC3CDDC4207BFE6DB2F7E65C9CF"><enum>(2)</enum><header>Per capita
				health care growth factor</header><text>One plus the percentage increase in the
				projected per capita amount of National Health Expenditures from fiscal year
				2007 to the fiscal year involved, as most recently published by the Secretary
				before the beginning of the fiscal year
				involved.</text>
							</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section><section display-inline="no-display-inline" id="H728F9D86DA264AFAAC80562241A6439E"><enum>102.</enum><header>1-year initial
			 availability of SCHIP allotments</header><text display-inline="no-display-inline">Section 2104(e) of the Social Security Act
			 (<external-xref legal-doc="usc" parsable-cite="usc/42/1397dd">42 U.S.C. 1397dd(e)</external-xref>) is amended to read as follows:</text>
				<quoted-block display-inline="no-display-inline" id="H452F9C80602E41058DAF621500FE3F28" style="OLC">
					<subsection id="H175C33E1640A4EE000374C27624D8312"><enum>(e)</enum><header>Availability of
				amounts allotted</header>
						<paragraph id="H82FDFFBACB314013B3722B69CD458ECC"><enum>(1)</enum><header>In
				general</header><text>Except as provided in paragraphs (2) and (3), amounts
				allotted to a State pursuant to this section—</text>
							<subparagraph id="HDDB7D2E5DD4A41FCB11977451B063777"><enum>(A)</enum><text>for each of fiscal
				years 1998 through 2007, shall remain available for expenditure by the State
				through the end of the second succeeding fiscal year; and</text>
							</subparagraph><subparagraph id="HF69D55BB346C4827B9DFE0EDEB16B34E"><enum>(B)</enum><text>for fiscal year
				2008 and each fiscal year thereafter, shall remain available for expenditure by
				the State through the end of the fiscal year involved.</text>
							</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H48E369813279470F9271059B84DA9446"><enum>(2)</enum><header>Availability of
				amounts reallotted</header><text>Subject to paragraph (3), amounts reallotted
				to a State under subsection (f) shall be available for expenditure by the State
				through the end of the fiscal year in which they are reallotted.</text>
						</paragraph><paragraph id="HA6DE1522DC0141F6B4F4F41BC1C743E2"><enum>(3)</enum><header>Permanent
				availability of unused funds</header><text>Reallotted funds that are not used
				by the end of the fiscal year described in paragraph (2) shall be subject to
				reallotment under subsection (f) in subsequent fiscal years subject to such
				paragraph and shall remain available for subsequent reallotment until
				expended.</text>
						</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
			</section><section id="HFC5F29D9052E4303B242433BEAEA3FE8"><enum>103.</enum><header>Redistribution
			 of unused allotments to address State funding shortfalls</header><text display-inline="no-display-inline">Section 2104(f) of the Social Security Act
			 (<external-xref legal-doc="usc" parsable-cite="usc/42/1397dd">42 U.S.C. 1397dd(f)</external-xref>) is amended—</text>
				<paragraph id="HCC443314C4A845F597B56FD3083BF9D7"><enum>(1)</enum><text>by striking
			 <quote>The Secretary</quote> and inserting the following:</text>
					<quoted-block display-inline="no-display-inline" id="H40D11643128F4A1E9DC02F1D1FE417B3" style="OLC">
						<paragraph id="HAF051A91106A4F9EAAC2CCD447EF467"><enum>(1)</enum><header>In
				general</header><text>The
				Secretary</text>
						</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
				</paragraph><paragraph id="H128047F9EDF3418FAD89249E9F5D9150"><enum>(2)</enum><text>by striking
			 <quote>States that have fully expended the amount of their allotments under
			 this section</quote> and inserting <quote>States that the Secretary determines
			 with respect to the fiscal year for which unused allotments are available for
			 redistribution under this subsection, are shortfall States described in
			 paragraph (2) for such fiscal year</quote>; and</text>
				</paragraph><paragraph id="H185084C1549644D8B83783D4FA51CFB9"><enum>(3)</enum><text>by adding at the
			 end the following new paragraph:</text>
					<quoted-block display-inline="no-display-inline" id="H5F608EE7B81F439CA573E0751600C6B2" style="OLC">
						<paragraph id="H0F136CAD9D674CFF83C00447BCA0A735"><enum>(2)</enum><header>Shortfall states
				described</header>
							<subparagraph id="HBFC363DD091F40D8BFA8D1B44E1F00C8"><enum>(A)</enum><header>In
				general</header><text>For purposes of paragraph (1), with respect to a fiscal
				year, a shortfall State described in this subparagraph is a State with a State
				child health plan approved under this title for which the Secretary estimates
				on the basis of the most recent data available to the Secretary, that the
				projected expenditures under such plan for the State for the fiscal year will
				exceed the sum of—</text>
								<clause id="HF7F170667EB64606948255D830C0B8BA"><enum>(i)</enum><text>the amount of the
				State's allotments for any preceding fiscal years that remain available for
				expenditure and that will not be expended by the end of the immediately
				preceding fiscal year; and</text>
								</clause><clause id="H87B2EFBBD35040A099DF147F413050D1"><enum>(ii)</enum><text>the amount of the
				State's allotment for the fiscal year (taking into account any increase made in
				such allotment under section 2104(j), as added by section 205(a) of the Healthy
				Kids Act of 2007).</text>
								</clause></subparagraph><subparagraph id="H4F8F0B75E82A4FCDB11366B77B862C4C"><enum>(B)</enum><header>Proration
				rule</header><text>If the amounts available for redistribution under paragraph
				(1) for a fiscal year are less than the total amounts of the estimated
				shortfalls determined for the year under subparagraph (A), the amount to be
				reallotted under such paragraph for each shortfall State shall be reduced
				proportionally.</text>
							</subparagraph><subparagraph id="H2E3A16737FC3499FAD4B4CC8B18D7CB3"><enum>(C)</enum><header>Retrospective
				adjustment</header><text>The Secretary may adjust the estimates and
				determinations made under paragraph (1) and this paragraph with respect to a
				fiscal year as necessary on the basis of the amounts reported by States not
				later than November 30 of the succeeding fiscal year, as approved by the
				Secretary.</text>
							</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section></title><title id="HB7BC76B93AF14ECF990056DA2F00F330"><enum>II</enum><header>Increasing
			 Enrollment Under SCHIP and Medicaid</header>
			<section id="H907624FF5EEA4E6796AD47F178D252D4"><enum>201.</enum><header>Bonus payments
			 for States that implement administrative policies to streamline enrollment
			 process</header>
				<subsection id="HB67078390AB94D09AD005B61B67938B"><enum>(a)</enum><header>Bonus in FMAP and
			 enhanced FMAP for application of streamline enrollment procedures under
			 Medicaid and SCHIP</header><text>Section 2102 of the Social Security Act (42
			 U.S.C. 1397bb) is amended by adding at the end the following new
			 subsection:</text>
					<quoted-block display-inline="no-display-inline" id="H60FCB5FCD6AF4D14AA6729710001397D" style="OLC">
						<subsection id="H92045D25F8CE4E84A400A3907E5E599"><enum>(d)</enum><header>Streamline
				enrollment procedures</header>
							<paragraph id="H00E86AFB862642B8A200054847EDCE5"><enum>(1)</enum><header>Increase in
				Federal matching rate</header>
								<subparagraph id="HA65598759548453D9839C0CF00D362E9"><enum>(A)</enum><header>In
				general</header><text>In the case of a State that meets the condition described
				in subparagraph (B) (relating to agreeing to implement administrative
				enrollment policies under this title and title XIX) for a fiscal year, the
				Federal medical assistance percentage (for purposes of title XIX only) and the
				enhanced FMAP (for purposes of this title, but determined without regard to the
				application of this subsection to the Federal medical assistance percentage
				under title XIX) otherwise computed for such fiscal year as applied to medical
				assistance for children and child health assistance, respectively, shall be
				increased by 2 percentage points.</text>
								</subparagraph><subparagraph id="H654DCBBF171E4EEDB136B8141BA4F232"><enum>(B)</enum><header>Agreeing to
				remove enrollment and access barriers</header><text>The condition described in
				this subparagraph, for a State for a fiscal year is that the State agrees to do
				the following:</text>
									<clause id="HF380E94B45A846CCB62CE44EDC27CE2"><enum>(i)</enum><header>Presumptive
				eligibility for children</header><text display-inline="yes-display-inline">The
				State agrees—</text>
										<subclause id="H3E874AA05E8E4790BF8FCFD18F1CD734"><enum>(I)</enum><text>to provide
				presumptive eligibility for children under this title and title XIX in
				accordance with section 1920A; and</text>
										</subclause><subclause id="H132CB1D928B1477E99F8B1207F16E111"><enum>(II)</enum><text>to treat any
				items or services that are provided to an uncovered child (as defined in
				section 2110(c)(8)) who is determined ineligible for medical assistance under
				title XIX as child health assistance for purposes of paying a provider of such
				items or services, so long as such items or services would be considered child
				health assistance for a targeted low-income child under this title.</text>
										</subclause></clause><clause id="H53CD8E2D73D34C58BD6160BE2F133C46"><enum>(ii)</enum><header>12-month
				continuous eligibility</header><text display-inline="yes-display-inline">The
				State agrees to provide that eligibility of children for assistance under this
				title and title XIX shall not be regularly redetermined more often than once
				every year.</text>
									</clause><clause id="H62857ABB015A4E40AAA5412DDA64C6BC"><enum>(iii)</enum><header>Automatic
				renewal</header><text display-inline="yes-display-inline">The State agrees to
				provide for the automatic renewal of the eligibility of children for assistance
				under this title and under title XIX if the child’s family does not report any
				changes to family income or other relevant circumstances, subject to
				verification of information from databases available to the State for such
				purpose.</text>
									</clause><clause id="H2CB59E1FC3C946A1B72EE5866C1E4454"><enum>(iv)</enum><header>Elimination of
				asset test</header><text display-inline="yes-display-inline">The State has
				amended its plans under this title and title XIX so that no asset or resource
				test is applied for eligibility under this title or title XIX with respect to
				children.</text>
									</clause><clause id="H49D5C0740AC84BFABC98A350250603AF"><enum>(v)</enum><header>Administrative
				verification of income</header><text display-inline="yes-display-inline">The
				State agrees to permit the family of a child applying for child health
				assistance under this title or medical assistance under title XIX to declare
				and certify, by signature under penalty of perjury, the family income for
				purposes of collecting financial eligibility
				information.</text>
									</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H6D36338EF21E4386B75E7E279E9850A7"><enum>(b)</enum><header>Conforming
			 medicaid amendments</header>
					<paragraph id="H43D7DCFE85244C4895674FF56B5CDC94"><enum>(1)</enum><header>In
			 general</header><text>Section 1905(b) of the Social Security Act (42 U.S.C.
			 1396d(b)) is amended by inserting <quote>and section 2102(d)(1)</quote> after
			 <quote>section 1933(d)</quote>.</text>
					</paragraph><paragraph id="H0C9256366AFC4DF8A8FB00144E6B1CE4"><enum>(2)</enum><header>Increase in
			 medicaid cap for territories</header><text>Section 1108(g) of such Act (42
			 U.S.C. 1308(g)) is amended—</text>
						<subparagraph id="HB2D994B190014624A8B2AA92002CC9E3"><enum>(A)</enum><text>in paragraph (2),
			 by striking <quote>paragraph (3)</quote> and inserting <quote>paragraphs (3)
			 and (4)</quote>; and</text>
						</subparagraph><subparagraph id="H39AC02A01855429EAB45F6A5DA8DC7E0"><enum>(B)</enum><text>by adding at the
			 end the following new paragraph:</text>
							<quoted-block display-inline="no-display-inline" id="H746235781D374E9986ACCFFF653318F9" style="OLC">
								<paragraph id="H9DD729D52FDF41C0AD2EE3E97344E756"><enum>(4)</enum><header>Disregard of
				increased expenditures directly attributable to increase in FMAP for
				application of streamlined enrollment procedures</header><text>The limitation
				of paragraph (2) shall not apply to payment under title XIX to a territory
				insofar as such payment is attributable to an increase in the Federal medical
				assistance percentage under subparagraph (A) of section
				2102(d)(1).</text>
								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph></subsection><subsection id="H1D37B14D702A4F9FBEE41EE0277BCE63"><enum>(c)</enum><header>Effective
			 date</header><text>The amendments made by this section shall apply beginning
			 with fiscal year 2007.</text>
				</subsection></section><section display-inline="no-display-inline" id="H349057E1D1AA464EBC5F6BF9186687D6"><enum>202.</enum><header>State option to
			 provide for <quote>express lane</quote> and simplified determinations of a
			 child’s financial eligibility for medical assistance under Medicaid or child
			 health assistance under SCHIP</header>
				<subsection id="HAF2902D977144C3AA8FAB2352C2E3217"><enum>(a)</enum><header>Medicaid</header><text>Section
			 1902(e) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(e)</external-xref>) is amended by adding at
			 the end the following:</text>
					<quoted-block act-name="Social" id="H2AE39F4794DA47049EC318A7EDBAC8EA" style="traditional">
						<paragraph id="H2B3E337A1514428AACBC539841E46EEA" indent="up1"><enum>(13)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HCF15DA95E3F9499B8256E49735B019B5"><enum>(A)</enum><text display-inline="yes-display-inline">At the option of the State, the plan may
				provide that eligibility requirements (including such requirements applicable
				to redeterminations or renewals of eligibility) for medical assistance relating
				to income, assets (or resources), or citizenship status are met for a child who
				is under an age specified by the State (not to exceed 21 years of age) by using
				a determination made within a reasonable period (as determined by the State)
				before its use for this purpose, of the child’s family or household income, or
				if applicable for purposes of determining eligibility under this title or title
				XXI, assets or resources, or citizenship status, respectively, (notwithstanding
				any other provision of law, including sections 1902(a)(46)(B), 1903(x), and
				1137(d)), by a Federal or State agency, or a public or private entity making
				such determination on behalf of such agency, specified by the plan, including
				an agency administering the <act-name parsable-cite="FSA77">State program
				funded under part A of title IV, the Food Stamp Act of 1977</act-name>, the
				Richard B. Russell <act-name parsable-cite="NSLA">National School Lunch
				Act</act-name>, or the <act-name parsable-cite="CNA66">Child Nutrition Act of
				1966</act-name>, notwithstanding any differences in budget unit, disregard,
				deeming, or other methodology, but only if—</text>
								<clause id="H7F606444AB694A36B1A2A4B0D8F1D7A" indent="up1"><enum>(i)</enum><text>the agency has fiscal liabilities or
				responsibilities affected by such determination; and</text>
								</clause><clause display-inline="no-display-inline" id="H7EEB4DA6A28E4DFD8EA2F48411A98DB4" indent="up1"><enum>(ii)</enum><text>the agency or entity notifies the
				child's family—</text>
									<subclause id="H73B5063DA10446BF80FBB151D37AB10"><enum>(I)</enum><text>of the information which shall be
				disclosed in accordance with this subparagraph;</text>
									</subclause><subclause id="HEFF4F0CA399749B7A49B1EAABB3110F4"><enum>(II)</enum><text>that the information disclosed
				will be used solely for purposes of determining eligibility for medical
				assistance under this title or for child health assistance under title XXI;
				and</text>
									</subclause><subclause id="H3D5C6B0539684FFE9507BD02229C2117"><enum>(III)</enum><text>that interagency agreements limit
				the use of such information to that purpose; and</text>
									</subclause></clause><clause id="H466F78BA9D1D40F28BECD4120ABDF5E" indent="up1"><enum>(iii)</enum><text>the requirements of section 1939 are
				satisfied.</text>
								</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H9C800920CDC7412D92F270A6A5E5ADBD" indent="up1"><enum>(B)</enum><text>Nothing in this paragraph shall be
				construed to relieve a State of the obligation to determine, on another basis,
				eligibility for medical assistance under this title or for child health
				assistance under title XXI if a child is determined ineligible for such
				assistance on the basis of information furnished pursuant to this
				paragraph.</text>
							</subparagraph><subparagraph display-inline="no-display-inline" id="H6C8FC5CCD4A948A4918527055CD74DDF" indent="up1"><enum>(C)</enum><text>If a State applies the eligibility
				process described in subparagraph (A) to individuals eligible under this title
				and to individuals eligible under title XXI, the State may, at its option,
				implement its duties under subparagraphs (A) and (B) of section 2102(b)(3)
				using either or both of the following approaches:</text>
								<clause id="HADF8800D95D5416ABA85DC1C685FD9F0"><enum>(i)</enum><text>The State may—</text>
									<subclause id="H1CA001EFBB534940873D9297792C61C5"><enum>(I)</enum><text>establish a threshold percentage of
				the Federal poverty level (that shall exceed the income eligibility level
				applicable for a population of individuals under this title by 30 percentage
				points (as a fraction of the Federal poverty level) or such other higher number
				of percentage points as the State determines reflects the typical application
				of income methodologies by the non-health program and the State plan under this
				title); and</text>
									</subclause><subclause id="H32F4E3E1CC4E4D689DDA4ED708157719"><enum>(II)</enum><text>provide that, with respect to any
				individual within such population whom a non-health agency determines has
				income that does not exceed such threshold percentage for such population, such
				individual is eligible for medical assistance under this title (regardless of
				whether such individual would otherwise be determined to be eligible to receive
				such assistance).</text>
									</subclause><continuation-text continuation-text-level="clause">In exercising
				the approach under this clause, a State shall inform families whose children
				are enrolled in a State child health plan under title XXI based on having
				family income above the threshold described in subclause (I) that they may
				qualify for medical assistance under this title and, at their option, can seek
				a regular eligibility determination for such assistance for their child.</continuation-text></clause><clause id="HE193F714F4E64E1CAE556F91F9CE0000"><enum>(ii)</enum><text>Regardless of whether a State
				otherwise provides for presumptive eligibility under section 1920A, a State may
				provide presumptive eligibility under this title, consistent with subsection
				(e) of section 1920A, to a child who, based on a determination by a non-health
				agency, would qualify for child health assistance under a State child health
				plan under title XXI. During such presumptive eligibility period, the State may
				determine the child’s eligibility for medical assistance under this title,
				pursuant to subparagraph (A) of section 2102(b)(3), based on telephone contact
				with family members, access to data available in electronic or paper form, and
				other means of gathering information that are less burdensome to the family
				than completing an application form on behalf of the child. The procedures
				described in the previous sentence may be used regardless of whether the State
				uses similar procedures under other circumstances for purposes of determining
				eligibility for medical assistance under this title.</text>
								</clause></subparagraph><subparagraph id="H27963C1952BD4791BEF13F1B87B9FA01" indent="up1"><enum>(D)</enum><text>At the option of a State, the
				eligibility process described in subparagraph (A) may apply to an individual
				who is not a child.</text>
							</subparagraph><subparagraph display-inline="no-display-inline" id="HCAF4474042B147BC96D380451ECC802C" indent="up1"><enum>(E)</enum><clause commented="no" display-inline="yes-display-inline" id="HC08B264FD4A248A28995E8019D150000"><enum>(i)</enum><text>At the option of a
				State, an individual determined to be eligible for medical assistance or child
				health assistance pursuant to subparagraph (A), (C), or (D) or other procedures
				through which eligibility is determined based on data obtained from sources
				other than the individual may receive medical assistance under this title if
				such individual (or, in the case of an individual under age 19 (or if the State
				elects the option under subparagraph (A), age 20 or 21) who is not authorized
				to consent to medical care, the individual’s parent, guardian, or other
				caretaker relative) has acknowledged notice of such determination and has
				consented to such eligibility determination. The State (at its option) may
				waive any otherwise applicable requirements for signatures by or on behalf of
				an individual who has so consented.</text>
								</clause><clause id="H8313E249BE474D8FB900512710DD92A1" indent="up1"><enum>(ii)</enum><text>In the case of an individual
				enrolled pursuant to clause (i), the State shall inform the individual (or, in
				the case of an individual under age 19 (or if the State elects the option under
				subparagraph (A), age 20 or 21), the individual’s parent, guardian, or other
				caretaker relative) about the significance of such enrollment, including
				appropriate methods to access covered services.</text>
								</clause></subparagraph><subparagraph id="H9F2012A9EE574193A5D4AD14B33892D6" indent="up1"><enum>(F)</enum><text>For purposes of this
				paragraph—</text>
								<clause id="HA2F00A1D8752452BB7BDBE1B95F8DB36"><enum>(i)</enum><text>the term <term>non-health
				agency</term> means an agency or entity described in subparagraph (A);
				and</text>
								</clause><clause id="HFE58C9BAAD764F5196FFABFBA9FEB078"><enum>(ii)</enum><text>the term <term>non-health
				benefits</term> means the benefits or assistance provided by a non-health
				agency.</text>
								</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="HD5B4C606DEF54D5DB08C3065E8A727DB"><enum>(b)</enum><header>SCHIP</header><text display-inline="yes-display-inline">Section 2107(e)(1) of such Act (42 U.S.C.
			 1397gg(e)(1)) is amended by redesignating subparagraphs (B) through (E) as
			 subparagraphs (C) through (F) and by inserting after subparagraph (B) the
			 following new subparagraph:</text>
					<quoted-block act-name="Social" id="H21B35A4E7206422B86368C899CD33F55">
						<subparagraph id="H3A093E8EFE474A969002A3C546FA00E1"><enum>(C)</enum><text>Section
				1902(e)(13) (relating to the State option to base a determination of a child's
				eligibility for assistance on determinations made by a program providing
				nutrition or other public assistance (except that the State option under
				subparagraph (D) of such section shall apply under this title only if an
				individual is
				pregnant)).</text>
						</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H2EA0DC3DAAA1436F91895224DCB90069"><enum>(c)</enum><header>Presumptive
			 eligibility</header><text>Section 1920A of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-1a">42 U.S.C. 1396r–1a</external-xref>) is
			 amended—</text>
					<paragraph id="H4AF47F286F514B209E8B9035CE219398"><enum>(1)</enum><text>in subsection
			 (b)(3)(A)(i), is amended by striking <quote>or (IV)</quote> and inserting
			 <quote>(IV) is an agency or entity described in section 1902(e)(13)(A), or
			 (V)</quote>; and</text>
					</paragraph><paragraph id="H3CD8CB2666ED4A97946B8436EFC2D78"><enum>(2)</enum><text>by
			 adding at the end the following:</text>
						<quoted-block display-inline="no-display-inline" id="H9618E268C2464E82B5BA7FC2FF7E5B91" style="OLC">
							<subsection id="H3265ADDD308549C384489CFF30CB7E6C"><enum>(e)</enum><text>In the case of a
				State with a child health plan under title XXI that provides for presumptive
				eligibility under such plan for children, the State shall make a reasonable
				effort to place each presumptively eligible child in the program under this
				title or title XXI for which the child appears most likely to qualify. During
				the child's period of presumptive eligibility, the State shall receive Federal
				matching funds under section 1903 or section 2105, depending on the program in
				which the child has been placed. If at the conclusion of such period, the child
				is found to qualify for, and is enrolled in, the program established under this
				title or title XXI when the child was enrolled in the program under the other
				such title during such period, the State’s receipt of Federal matching funds
				shall be adjusted both retroactively and prospectively so that Federal matching
				funds are provided, both during and following such period of presumptive
				eligibility, based on the program in which the child is
				enrolled.</text>
							</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection display-inline="no-display-inline" id="H9237A4E89670401091489E92B55C03F8"><enum>(d)</enum><header>Signature
			 requirements</header><text>Section 1902(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)</external-xref>) is
			 amended by adding at the end the following: “Notwithstanding any other
			 provision of law, a signature under penalty of perjury shall not be required on
			 an application form for medical assistance as to any element of eligibility for
			 which eligibility is based on information received from a source other than
			 applicant, rather than on representations from the applicant. Notwithstanding
			 any other provision of law, any signature requirement for an application for
			 medical assistance may be satisfied through an electronic signature, as defined
			 in section 1710(1) of the Government Paperwork Elimination Act (44 U.S.C. 3504
			 note).”.</text>
				</subsection></section><section display-inline="no-display-inline" id="HAD1B87AB12F14D178B2F5410D7B66207"><enum>203.</enum><header>Information
			 technology connections to improve health coverage determinations</header>
				<subsection id="HF5452EA12A16429A00A508ECE7B54C00"><enum>(a)</enum><header>Enhanced federal
			 funding for improvements related to implementation of certain model outreach
			 and enrollment practices</header>
					<paragraph id="H55A6F610CE4C4FDC9B46585FDDCE89B6"><enum>(1)</enum><header>In
			 general</header><text>Section 1903(a)(3)(A) of the Social Security Act (42
			 U.S.C. 1396b(a)(3)(A)) is amended—</text>
						<subparagraph id="H398CC7E089E7405CB8B3FB7883CEC345"><enum>(A)</enum><text>by striking
			 <quote>and</quote> at the end of clause (i); and</text>
						</subparagraph><subparagraph id="HE917E01B8966457E88EEEC4C7C001FC5"><enum>(B)</enum><text>by adding at the
			 end the following new clause:</text>
							<quoted-block display-inline="no-display-inline" id="HB61C8FB92CF74C3B8F5F6FF1661A89D" style="traditional">
								<clause id="HA8BA494584664DA6917577D587890447" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">75 percent of so much of the sums expended
				during such quarter as are attributable to the design, development, or
				installation of such mechanized claims processing and information retrieval
				systems and the implementation of administrative systems and processes
				(including modification of eligibility computer systems to permit the exchange
				of electronic information with other Federal or State programs) as the
				Secretary determines are directly related to the implementation of a model
				outreach and enrollment practice described in subparagraph (B), (C), (D), (E),
				or (F) of section 1905(y)(3),
				and</text>
								</clause><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph><paragraph id="H55096CC56FD34F739B992CCA2895F801"><enum>(2)</enum><header>Conforming
			 amendment to ensure availability for territories</header><text>Section 1108(g)
			 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1308">42 U.S.C. 1308(g)</external-xref>), as amended by section 201(b)(2)(B), is
			 amended—</text>
						<subparagraph id="HF7E77843702545B08951D7C26391D5A5"><enum>(A)</enum><text>in paragraph (2),
			 by striking <quote>and (4)</quote> and inserting <quote>, (4), and (5)</quote>;
			 and</text>
						</subparagraph><subparagraph id="H8450E7E5856E408A85E156786F5D379"><enum>(B)</enum><text>by adding at the
			 end the following new paragraph:</text>
							<quoted-block display-inline="no-display-inline" id="H755662450494423F83E3D33091EC39BD" style="OLC">
								<paragraph id="HFDEF0BD174DE4AC387E44CF0BCED5533"><enum>(5)</enum><header>Additional
				increase for certain expenditures</header><text>With respect to fiscal year
				2008 and each fiscal year thereafter, if Puerto Rico, the Virgin Islands, Guam,
				the Northern Mariana Islands, or American Samoa qualify for a payment under
				section 1903(a)(3)(A)(iii) for a calendar quarter of such fiscal year, the
				additional Federal financial participation under such section shall not be
				counted towards the limitation on expenditures under title XIX for such
				commonwealth or territory otherwise determined under subsection (f) and this
				subsection for such fiscal
				year.</text>
								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph></subsection><subsection id="H951E64463F414D0FA4013639D0F9B630"><enum>(b)</enum><header>Authorization of
			 information disclosure</header>
					<paragraph id="HEF71FF950F834182A0B594B0E308E94"><enum>(1)</enum><header>In
			 general</header><text>Title XIX of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396">42 U.S.C. 1396 et seq.</external-xref>) is
			 amended—</text>
						<subparagraph id="H72F4B52568D94549AD3E2E8638537D5F"><enum>(A)</enum><text>by redesignating
			 section 1939 as section 1940; and</text>
						</subparagraph><subparagraph id="H1D1D051CF7C545A9BD5580DDFC3D1C00"><enum>(B)</enum><text>by inserting after
			 section 1938 the following:</text>
							<quoted-block display-inline="no-display-inline" id="HCC3B76C9BA12442C00A3D18704B55C14" style="traditional">
								<section id="HBEF0A571E2934C05A278F6F41FC42F04"><enum>1939.</enum><header>Authorization to receive pertinent
		  information</header><subsection commented="no" display-inline="yes-display-inline" id="H30D76A6F717C4D2F8F91AD869B89D55C"><enum>(a)</enum><header>In
				general</header><text>Notwithstanding any other provision of law, a Federal or
				State agency or private entity in possession of the sources of data potentially
				pertinent to eligibility determinations under this title or title XXI
				(including eligibility files maintained by programs described in section
				1902(e)(13)(A), information described in paragraph (2) or (3) of section
				1137(a), vital records information about births in any State, and information
				described in sections 453(i) and 1902(a)(25)(I)) is authorized to convey such
				data or information to a State agency administering a State plan under this
				title or title XXI, if—</text>
										<paragraph id="H392A9AC41E2C4931B53EA8F2BDE071EC"><enum>(1)</enum><text>such data or
				information are used only to establish or verify eligibility or provide
				coverage under this title or title XXI; and</text>
										</paragraph><paragraph id="HCE2A1531073D4D5F944B611C64D42C12"><enum>(2)</enum><text>an interagency or
				other agreement, consistent with standards developed by the Secretary, prevents
				the unauthorized use, disclosure, or modification of such data and otherwise
				meets applicable Federal requirements safeguarding privacy and data
				security.</text>
										</paragraph></subsection><subsection id="H0606E14469434DE088E000A3B1735BF2"><enum>(b)</enum><header>Requirements for
				conveyance</header><text>Data or information may be conveyed pursuant to this
				section only if the following requirements are met:</text>
										<paragraph id="H80B4018F7E894E98BB1E5EA297ABAD8B"><enum>(1)</enum><text>The individual
				whose circumstances are described in the data or information (or such
				individual’s parent, guardian, caretaker relative, or authorized
				representative) has either provided advance consent to disclosure or has not
				objected to disclosure after receiving advance notice of disclosure and a
				reasonable opportunity to object.</text>
										</paragraph><paragraph id="HBC16A6CCB48D4FB88FBF39083046DCB4"><enum>(2)</enum><text>Such data or
				information are used solely for the purposes of—</text>
											<subparagraph id="H2FB27547CBFE4DB28FE62CAB4D5333F"><enum>(A)</enum><text>identifying
				individuals who are eligible or potentially eligible for assistance under this
				title or title XXI and enrolling such individuals in the State plans
				established under such titles; and</text>
											</subparagraph><subparagraph id="HCDA39202D84443D183321B3C66A60394"><enum>(B)</enum><text>verifying the
				eligibility of individuals for assistance under the State plans established
				under this title or title XXI.</text>
											</subparagraph></paragraph><paragraph id="H14B8AB0602F34E69BD38182D10B2BB59"><enum>(3)</enum><text>An interagency or
				other agreement, consistent with standards developed by the Secretary—</text>
											<subparagraph id="H94F2F86A31AA4C40897BB58C35155592"><enum>(A)</enum><text>prevents the
				unauthorized use, disclosure, or modification of such data and otherwise meets
				applicable Federal requirements safeguarding privacy and data security;
				and</text>
											</subparagraph><subparagraph id="HCF51FA4B6532412190D44FCDDD82BD34"><enum>(B)</enum><text>requires the State
				agencies administering the State plans established under this title and title
				XXI to use the data and information obtained under this section to seek to
				enroll individuals in such plans.</text>
											</subparagraph></paragraph></subsection><subsection id="HBBA503776F1C441697A2C213A0C92488"><enum>(c)</enum><header>Criminal
				penalty</header><text>A person described in the subsection (a) who publishes,
				divulges, discloses, or makes known in any manner, or to any extent not
				authorized by Federal law, any information obtained under this section shall be
				fined not more than $1,000 or imprisoned not more than 1 year, or both for each
				such unauthorized activity.</text>
									</subsection><subsection id="H86EDA983348640EAAAC51BA86FC03BEF"><enum>(d)</enum><header>Rule of
				construction</header><text>The limitations and requirements that apply to
				disclosure pursuant to this section shall not be construed to prohibit the
				conveyance or disclosure of data or information otherwise permitted under
				Federal law (without regard to this
				section).</text>
									</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph><paragraph id="H77C6C7D1151C47DCBAD8489995483727"><enum>(2)</enum><header>Conforming
			 amendment to assure access to national new hires database</header><text>Section
			 453(i)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/653">42 U.S.C. 653(i)(1)</external-xref>) is amended by striking <quote>and
			 programs funded under part A</quote> and inserting <quote>, programs funded
			 under part A, and State plans approved under title XIX or XXI</quote>.</text>
					</paragraph><paragraph id="H8B07951A129A40A39BF061365880C568"><enum>(3)</enum><header>Conforming
			 amendment to provide schip programs with access to national income
			 data</header><text>Section 6103(l)(7)(D)(ii) of the Internal Revenue Code of
			 1986 is amended by inserting <quote>or title XXI</quote> after <quote>title
			 XIX</quote>.</text>
					</paragraph><paragraph id="HB5AF4EBC9E7E42D1B482EABA86091FD2"><enum>(4)</enum><header>Conforming
			 amendment to provide access to data about enrollment in insurance for purposes
			 of evaluating applications and for SCHIP</header><text>Section
			 1902(a)(25)(I)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(25)(I)(i)</external-xref>) is
			 amended—</text>
						<subparagraph id="HD2283FFF43EB4E8C85FC46A23B156ECB"><enum>(A)</enum><text>by inserting
			 <quote>(and, at State option, individuals who are potentially eligible or who
			 apply)</quote> after <quote>with respect to individuals who are
			 eligible</quote>; and</text>
						</subparagraph><subparagraph id="H920A2C7BFD4043F9A6F354724F3674F0"><enum>(B)</enum><text>by inserting
			 <quote>under this title (and, at State option, child health assistance under
			 title XXI)</quote> after <quote>the State plan</quote>.</text>
						</subparagraph></paragraph></subsection></section><section id="HB4BA288979AD438CA6D7FF8BC0F53DAB"><enum>204.</enum><header>State option to
			 expand or add coverage of certain pregnant women under SCHIP</header>
				<subsection id="HFB1AC94051334E3D8581E0176FB26460"><enum>(a)</enum><header>SCHIP</header>
					<paragraph id="HC5DC5EB4A2A740239677A4C375116BD5"><enum>(1)</enum><header>Coverage</header><text>Title
			 XXI of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397aa">42 U.S.C. 1397aa et seq.</external-xref>) is amended by adding
			 at the end the following new section:</text>
						<quoted-block act-name="Social" id="HA8D9FC0E22AC41DF96C654C6749D7978">
							<section id="H62BC889E72FB4C668424685887A779BF"><enum>2111.</enum><header>Optional
				coverage of targeted low-income pregnant women</header>
								<subsection id="HD54E5B8F3F8A420EB6787DD6383E07F9"><enum>(a)</enum><header>Optional
				coverage</header><text>Notwithstanding any other provision of this title, a
				State may provide for coverage, through an amendment to its State child health
				plan under section 2102, of pregnancy-related assistance for targeted
				low-income pregnant women in accordance with this section, but only if—</text>
									<paragraph id="H46DD6A583BE047A1A9CB45EAFBF4E1E"><enum>(1)</enum><text>the State has
				established an income eligibility level—</text>
										<subparagraph id="H001C7D42C3444EFBB6AD3123AA2E432"><enum>(A)</enum><text>for pregnant women
				under subsection (a)(10)(A)(i)(III) or (l)(2)(A) of section 1902 that is at
				least 185 percent of the poverty line; and</text>
										</subparagraph><subparagraph id="HABCE1773401A4EFC00EB561015916635"><enum>(B)</enum><text>for children under
				this title that is at least 200 percent of the poverty line; and</text>
										</subparagraph></paragraph><paragraph id="H84D70F8B9E5E4DB5AC69C0F274C32D62"><enum>(2)</enum><text>the State meets
				the requirement of section 2105(i)(2) (relating to no waiting list for
				children).</text>
									</paragraph></subsection><subsection id="H6A46EF9B562D4A6F9E17B87746530006"><enum>(b)</enum><header>Definitions</header><text>For
				purposes of this title:</text>
									<paragraph id="H34B19EC72B3943B9B3004C74EB4E8B82"><enum>(1)</enum><header>Pregnancy-related
				assistance</header><text>The term <term>pregnancy-related assistance</term> 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 pregnant women.</text>
									</paragraph><paragraph id="HDFB0B64149924555AFB139920069F300"><enum>(2)</enum><header>Targeted
				low-income pregnant woman</header><text>The term <term>targeted low-income
				pregnant woman</term> means a woman—</text>
										<subparagraph id="H17CEF92C445949A68F39D53290B3F032"><enum>(A)</enum><text>during pregnancy
				and through the end of the month in which the 60-day period (beginning on the
				last day of her pregnancy) ends;</text>
										</subparagraph><subparagraph id="H9D05424CB6474B7DBE4CB1118E5E0056"><enum>(B)</enum><text>whose family
				income exceeds 185 percent of the poverty level applicable to a family of the
				size involved, but does not exceed the income eligibility level established
				under the State child health plan under this title for a targeted low-income
				child; and</text>
										</subparagraph><subparagraph id="H5BB188F83C9743DDB8271883032FE8DF"><enum>(C)</enum><text>who satisfies the
				requirements of paragraphs (1)(A), (1)(C), (2), and (3) of section
				2110(b).</text>
										</subparagraph></paragraph></subsection><subsection id="HF50E6697461044C9A59F99002DF2C301"><enum>(c)</enum><header>References to
				terms and special rules</header><text>In the case of, and with respect to, a
				State providing for coverage of pregnancy-related assistance to targeted
				low-income pregnant women under subsection (a), the following special rules
				apply:</text>
									<paragraph id="H1D86322E9DBB41E3A5600059484D256C"><enum>(1)</enum><text>Any reference in
				this title (other than in subsection (b)) to a targeted low-income child is
				deemed to include a reference to a targeted low-income pregnant woman.</text>
									</paragraph><paragraph id="HE7DB94FF371A4334B800367512CFAF57"><enum>(2)</enum><text>Any such reference
				to child health assistance with respect to such women is deemed a reference to
				pregnancy-related assistance.</text>
									</paragraph><paragraph id="H966E623423EB4BC1A686BCD8DC39D392"><enum>(3)</enum><text>Any such reference
				to a child is deemed a reference to a woman during pregnancy and the period
				described in subsection (b)(2)(A).</text>
									</paragraph><paragraph id="HB37A46BA7063460691F171B5C84FBA1D"><enum>(4)</enum><text>In applying
				section 2102(b)(3)(B), any reference to children found through screening to be
				eligible for medical assistance under the State medicaid plan under title XIX
				is deemed a reference to pregnant women.</text>
									</paragraph><paragraph id="H390F78AEF8AC49069E5B1D9755997FE"><enum>(5)</enum><text>There shall be no
				exclusion of benefits for services described in subsection (b)(1) based on any
				preexisting condition and no waiting period (including any waiting period
				imposed to carry out section 2102(b)(3)(C)) shall apply.</text>
									</paragraph><paragraph id="H91EACC5F77784272AFB7E1B91E631569"><enum>(6)</enum><text>In applying
				section 2103(e)(3)(B) in the case of a pregnant woman provided coverage under
				this section, the limitation on total annual aggregate cost-sharing shall be
				applied to such pregnant woman.</text>
									</paragraph><paragraph id="H8ADFF5ADD7844DC08B15EF004411229E"><enum>(7)</enum><text>In applying
				section 2104(i)—</text>
										<subparagraph id="H2442A7DB5F1E4A9D8B2BF4701EC99759"><enum>(A)</enum><text>in the case of
				State which did not provide for coverage for pregnant women under this title
				(under a waiver or otherwise) during fiscal year 2007, the allotment amount
				otherwise computed for the first fiscal year in which the State elects to
				provide coverage under this section shall be increased by an amount (determined
				by the Secretary) equal to the enhanced FMAP of the expenditures under this
				title for such coverage, based upon projected enrollment and per capita costs
				of such enrollment; and</text>
										</subparagraph><subparagraph id="H8E58A7440A7E45968EEA878F1477C6A3"><enum>(B)</enum><text>in the case of a
				State which provided for coverage of pregnant women under this title for the
				previous fiscal year—</text>
											<clause id="H9F4BFAD5C24048A2AB07E8AC80A4CB3"><enum>(i)</enum><text>in
				applying paragraph (1)(B)(ii) of such section, there shall also be taken into
				account (in an appropriate proportion) the percentage increase in births in the
				United States for the relevant period; and</text>
											</clause><clause id="H8B04471D0D3546C0A086007CA22DCC9F"><enum>(ii)</enum><text>in applying
				paragraph (1)(C), pregnant women (and per capita expenditures for such women)
				shall be accounted for separately from children, but shall be included in the
				total amount of any allotment adjustment under such paragraph.</text>
											</clause></subparagraph></paragraph></subsection><subsection id="HD590FE5F0F0C44119FECEB5DD84B8D6F"><enum>(d)</enum><header>Automatic
				enrollment for children born to women receiving pregnancy-related
				assistance</header><text display-inline="yes-display-inline">If a child is born
				to a targeted low-income pregnant woman who was receiving pregnancy-related
				assistance under this section on the date of the child’s birth, the child shall
				be deemed to have applied for child health assistance under the State child
				health plan and to have been found eligible for such assistance under such plan
				or to have applied for medical assistance under title XIX and to have been
				found eligible for such assistance under such title, as appropriate, on the
				date of such birth and to remain eligible for such assistance until the child
				attains 1 year of age. During the period in which a child is deemed under the
				preceding sentence to be eligible for child health or medical assistance, the
				child health or medical assistance eligibility identification number of the
				mother shall also serve as the identification number of the child, and all
				claims shall be submitted and paid under such number (unless the State issues a
				separate identification number for the child before such period
				expires).</text>
								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="HE050C80FD7534429A2007FA0980C692"><enum>(2)</enum><header>No cost-sharing
			 for pregnancy-related benefits</header><text>Section 2103(e)(2) of such Act (42
			 U.S.C. 1397cc(e)(2)) is amended—</text>
						<subparagraph id="H0F21649717AC4970BF369E4674469F4D"><enum>(A)</enum><text>in the heading, by
			 inserting <quote><header-in-text level="paragraph" style="OLC">or
			 pregnancy-related services</header-in-text></quote> after
			 <quote><header-in-text level="paragraph" style="OLC">preventive
			 services</header-in-text></quote>; and</text>
						</subparagraph><subparagraph id="H53BC3098DF0B4D46814E7CDC6973432C"><enum>(B)</enum><text>by inserting
			 before the period at the end the following: <quote>or for pregnancy-related
			 services</quote>.</text>
						</subparagraph></paragraph><paragraph id="HE51C0AD00CE648E485F8A7582BB12940"><enum>(3)</enum><header>Additional
			 amendment</header><text>Section 2107(e)(1)(F) of such Act (42 U.S.C.
			 1397gg(e)(1)(G)), as redesignated by section 202(b), is amended to read as
			 follows:</text>
						<quoted-block display-inline="no-display-inline" id="H0DEF253228B94FAA87F2DDBF2407006B" style="OLC">
							<subparagraph id="H89A7C4E0CC7245BBB73900125F11FC06"><enum>(F)</enum><text>Sections 1920 and
				1920A (relating to presumptive eligibility for pregnant women and
				children).</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="H89A460D36B0943B598655900AAAE79CB"><enum>(b)</enum><header>Amendments to
			 medicaid</header>
					<paragraph id="H8A7F841C2E2A4D60991BC34EBC44AD00"><enum>(1)</enum><header>Eligibility of a
			 newborn</header><text>Section 1902(e)(4) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(e)(4)</external-xref>) is
			 amended in the first sentence by striking <quote>so long as the child is a
			 member of the woman’s household and the woman remains (or would remain if
			 pregnant) eligible for such assistance</quote>.</text>
					</paragraph><paragraph id="HFA664EDCCB594601A4CD70FA5687C344"><enum>(2)</enum><header>Application of
			 qualified entities to presumptive eligibility for pregnant women under
			 medicaid</header><text>Section 1920(b) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-1">42 U.S.C. 1396r–1(b)</external-xref>) is
			 amended by adding after paragraph (2) the following flush sentence:</text>
						<quoted-block display-inline="no-display-inline" id="H0C40572A51BA49289806212C78D84069" style="OLC">
							<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">The term
				<term>qualified provider</term> includes a qualified entity, as defined in
				section
				1920A(b)(3).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection></section><section display-inline="no-display-inline" id="HC247478C7FED43D5A302205909A03684" section-type="subsequent-section"><enum>205.</enum><header>Optional coverage of
			 legal immigrants under the medicaid program and SCHIP</header>
				<subsection id="H85960A3292E244ABB7B132CDDC45E260"><enum>(a)</enum><header>Medicaid
			 program</header><text>Section 1903(v) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(v)</external-xref>) is
			 amended—</text>
					<paragraph id="H8CA739DEB98747AF800086FBA3E689C7"><enum>(1)</enum><text>in paragraph (1),
			 by striking <quote>paragraph (2)</quote> and inserting <quote>paragraphs (2)
			 and (4)</quote>; and</text>
					</paragraph><paragraph id="HB7EA0299C6CF424B96009F4E6F700018"><enum>(2)</enum><text>by adding at the
			 end the following new paragraph:</text>
						<quoted-block id="H7792C68E491C400EADA8B4541FF71570">
							<paragraph id="HE2307DAF537A4FF0B6C51102DC3DACEE" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H5DA4127CC308477B89812E2FF521B4A4"><enum>(A)</enum><text>A State may elect (in a
				plan amendment under this title) to provide medical assistance under this
				title, notwithstanding sections 401(a), 402(b), 403, and 421 of the Personal
				Responsibility and Work Opportunity Reconciliation Act of 1996, for aliens who
				are lawfully residing in the United States (including battered aliens described
				in section 431(c) of such Act) and who are otherwise eligible for such
				assistance, within either or both of the following eligibility
				categories:</text>
									<clause id="H85883A20738F4F6DB89E6E88D86BFD74" indent="up1"><enum>(i)</enum><header>Pregnant women</header><text>Women
				during pregnancy (and during the 60-day period beginning on the last day of the
				pregnancy).</text>
									</clause><clause id="HE73E275F0B4B4C2ABA19B4D0E4ED247E" indent="up1"><enum>(ii)</enum><header>Children</header><text display-inline="yes-display-inline">Individuals under 21 years of age,
				including optional targeted low-income children described in section
				1905(u)(2)(B).</text>
									</clause></subparagraph><subparagraph id="H28397E68921C429B009066C2DE498051" indent="up1"><enum>(B)</enum><text>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.</text>
								</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="H0D0DEA3459A4404186158E05F59FC6EF"><enum>(b)</enum><header>SCHIP</header><text>Section
			 2107(e)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397gg">42 U.S.C. 1397gg(e)(1)</external-xref>), as amended by sections 202(b)
			 and 204(a)(3), is amended by redesignating subparagraphs (D) through (F) as
			 subparagraph (E) through (G), respectively, and by inserting after subparagraph
			 (C) the following new subparagraph:</text>
					<quoted-block id="H581408F64A7343168C85733D102E786B">
						<subparagraph id="HA236BBEF7AEF423CB22E8E60C6122754"><enum>(D)</enum><text>Section 1903(v)(4)
				(relating to optional coverage of categories of lawfully residing immigrant
				children), but only if the State has elected to apply such section to the
				category of children under title
				XIX.</text>
						</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H34AE89B3B3C541BDB5E0A6D047B998C4"><enum>(c)</enum><header>Effective
			 date</header><text>The amendments made by this section take effect on October
			 1, 2007, and apply to medical assistance and child health assistance furnished
			 on or after such date.</text>
				</subsection><subsection id="H4CBA433CBB594E3100DEB01A39B13F"><enum>(d)</enum><header>Construction</header><text>Nothing
			 in this section shall be construed as affecting eligibility of aliens who are
			 not lawfully residing in the United States to benefits under the Medicaid
			 program under title XIX of the Social Security Act or under the State
			 children’s health insurance program (SCHIP) under title XXI of such Act.</text>
				</subsection></section><section id="H9BE6D968C9FA4ECE94D5EE8EB117B99B"><enum>206.</enum><header>Authorizing
			 adjustment of SCHIP allotment due to increased outreach</header>
				<subsection id="HD8F895B7D40140A7910940F4C5C16396"><enum>(a)</enum><header>In
			 general</header><text>Section 2104 of the Social Security Act (42 U.S.C.
			 1397dd), as amended by section 101, is further amended by adding at the end the
			 following new subsection:</text>
					<quoted-block display-inline="no-display-inline" id="H4090619258144814B13958B47A5D08E" style="OLC">
						<subsection id="H4BA083111A6144D98DC519A938B53B55"><enum>(j)</enum><header>Authorizing
				allotment adjustment due to increased outreach</header>
							<paragraph id="H358DA0A9EC1E4328953F18E2CEB8122"><enum>(1)</enum><header>In
				general</header><text>Notwithstanding the previous provisions of this section,
				if the Secretary determines that—</text>
								<subparagraph id="H5A62DCC1D8D441F28B13E5A078281570"><enum>(A)</enum><text>a State has an
				increase in the average number of children enrolled under its State child
				health plan in a fiscal year that exceeds the enrollment of children projected
				under paragraph (2) for the State for such fiscal year, and</text>
								</subparagraph><subparagraph commented="no" id="H8791323FBFE64228B77D5BAD30C519BD"><enum>(B)</enum><text display-inline="yes-display-inline">the total Federal expenditures under the
				State child health plan (or waiver) under this title exceeds the amount of the
				allotment made available to the State for the fiscal year,</text>
								</subparagraph><continuation-text continuation-text-level="paragraph">the
				Secretary shall increase the allotment under this section for the State for the
				fiscal year by the amount specified in paragraph (3). There are hereby
				appropriated, out of any money in the Treasury not otherwise appropriated, such
				sums as may be necessary to provide for such increase in allotment.</continuation-text></paragraph><paragraph id="H094FE883A3784E309F864F4D4615BECC"><enum>(2)</enum><header>Projected
				enrollment of children</header><text>The projected enrollment of children for a
				State under this paragraph for a fiscal year is equal to the average number of
				children enrolled under the State child health plan in fiscal year 2007
				increased, for each subsequent fiscal year through the fiscal year involved, by
				a factor equal to the population growth of children in the State for such
				fiscal year, as projected by the Secretary before the beginning of the fiscal
				year involved.</text>
							</paragraph><paragraph id="H8F990D26D690462CA9FA29250407113E"><enum>(3)</enum><header>Amount of
				allotment increase</header>
								<subparagraph id="HCD8329AB91F94121834BE8D038CE8800"><enum>(A)</enum><header>In
				general</header><text display-inline="yes-display-inline">Subject to
				subparagraph (B), the amount of the allotment increase under this subsection
				for a State for a fiscal year shall be an amount equal to the product
				of—</text>
									<clause id="H7E0FAA18DE40432AB500064175C6144E"><enum>(i)</enum><text display-inline="yes-display-inline">the number by which the average number of
				children enrolled under the State child health plan in the fiscal year exceeds
				the enrollment of children projected under paragraph (2) for such State for
				such fiscal year; and</text>
									</clause><clause id="HCEB39D36977B4DB4823BA35D4DCE87D9"><enum>(ii)</enum><text>the per capita
				expenditures for children under the State child health plan for the previous
				year, increased by the average annual rate of increase (for the three previous
				fiscal years) in the amount of such per capita expenditures.</text>
									</clause><continuation-text continuation-text-level="subparagraph">The
				amount of the allotment increase under this subsection shall not be subject to
				administrative or judicial review.</continuation-text></subparagraph><subparagraph id="HB934C0E29D154D238C17AC299486F4D"><enum>(B)</enum><header>Limitation</header>
									<clause id="H4202EE135F4348AFA0DD1C4EF9B12515"><enum>(i)</enum><header>In
				general</header><text>Subject to clause (ii), in no case shall the sum of the
				allotment increases for all States under this subsection for a fiscal year
				exceed an amount equal to 20 percent of the total Federal payments to all of
				the States otherwise made under this title for the fiscal year. If such sum
				exceeds such amount, subject to clause (ii), the allotment increase for each
				State under this subsection for the fiscal year shall be reduced in a pro rata
				manner in order that such sum does not exceed such amount.</text>
									</clause><clause id="H8258BBC49C6F40C388801CD8624EC7A7"><enum>(ii)</enum><header>Congressional
				approval of additional amounts</header><text>If the Secretary estimates that
				the allotment increases that should be provided under this subsection, but for
				clause (i), would exceed the limitation established under such clause, the
				Secretary shall submit to Congress a request for supplemental appropriations
				for the purpose of meeting such shortfall.</text>
									</clause></subparagraph></paragraph><paragraph id="H56C5084990E046638608AC39960157CA"><enum>(4)</enum><header>Clarification</header><text>An
				adjustment in an allotment shall not be made under this subsection due to
				excess State expenditures resulting from a growth in per capita costs,
				increased reimbursement to providers, or other factors not directly related to
				outreach to eligible, but previously unenrolled
				children.</text>
							</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H34F4B3E92F7043CDA8588E92C57300E0"><enum>(b)</enum><header>Effective
			 date</header><text>The amendments made by subsection (a) shall take effect
			 beginning with allotments for fiscal year 2008.</text>
				</subsection></section><section id="HD6F166638DCA4CB49685A8864B42FEE7" section-type="subsequent-section"><enum>207.</enum><header>Grants to promote
			 innovative outreach and enrollment under Medicaid and SCHIP</header><text display-inline="no-display-inline">Title XXI of the Social Security Act (42
			 U.S.C. 1397aa et seq.), as amended by section 204(a), is amended by adding at
			 the end the following:</text>
				<quoted-block display-inline="no-display-inline" id="HE7C2857E29914C95B6B794C624916991" style="OLC">
					<section id="HB6ED0E456D8D47B5AF45C22F46A0007"><enum>2112.</enum><header>Expanded
				outreach activities through grants to conduct innovative outreach and
				enrollment efforts</header>
						<subsection id="H82B5187A8B6E400EBCBB41C84B18397F"><enum>(a)</enum><header>In
				general</header><text>The Secretary shall award grants to eligible entities
				to—</text>
							<paragraph id="H02210FFFB0204D60B56DF857E4EE007"><enum>(1)</enum><text>conduct innovative
				outreach and enrollment efforts that are designed to increase the enrollment
				and participation of eligible children under this title and title XIX;
				and</text>
							</paragraph><paragraph id="H8A8E74D8B75147BCAE7BC06E254CB9B3"><enum>(2)</enum><text>promote
				understanding of the importance of health insurance coverage for prenatal care
				and children. `</text>
							</paragraph></subsection><subsection id="HD9531EDAF8E64FF3895D1431393F57F6"><enum>(b)</enum><header>Priority for
				award of grants</header>
							<paragraph id="H28E40AE677A94728A78D00A900D4467B"><enum>(1)</enum><header>In
				general</header><text>In making grants under subsection (a), the Secretary
				shall give priority to—</text>
								<subparagraph id="H8FC9AF3F749145B9B1D5CA4F6B93151B"><enum>(A)</enum><text>eligible entities
				that propose to target geographic areas with high rates of—</text>
									<clause id="HAC20C81D9C2D4C52AC7B6D76AFBFE09F"><enum>(i)</enum><text>eligible but
				unenrolled children, including such children who reside in rural areas;
				or</text>
									</clause><clause id="HAE76136FF547422B947BC51CAE31E7F0"><enum>(ii)</enum><text>racial and ethnic
				minorities and health disparity populations, including those proposals that
				address cultural and linguistic barriers to enrollment; and</text>
									</clause></subparagraph><subparagraph id="H205CC0C96DD14C16BBBDCAA2A16B3665"><enum>(B)</enum><text>eligible entities
				that plan to engage in outreach efforts with respect to individuals described
				in subparagraph (A) and that are—</text>
									<clause id="H12ADD256599641BD9D3451655FE71EB4"><enum>(i)</enum><text>Federal health
				safety net organizations; or</text>
									</clause><clause id="H849489B227444A3AACA7C47C69126B9F"><enum>(ii)</enum><text>faith-based
				organizations or consortia.</text>
									</clause></subparagraph></paragraph></subsection><subsection id="HF1216AB414C44A31ABA169236BB92C80"><enum>(c)</enum><header>Application</header><text>An
				eligible entity that desires to receive a grant under subsection (a) shall
				submit an application to the Secretary in such form and manner, and containing
				such information, as the Secretary may decide. Such application shall
				include—</text>
							<paragraph id="H8822AF1844D84D9EA37BEA5200A5679F"><enum>(1)</enum><text>quality and
				outcomes performance measures to evaluate the effectiveness of activities
				funded by a grant awarded under this section to ensure that the activities are
				meeting their goals; and</text>
							</paragraph><paragraph id="H3DD8BF57379647C4BF309EB060C981D7"><enum>(2)</enum><text>an assurance that
				the entity shall—</text>
								<subparagraph id="HAFB1DB3ED34946C0AF876DEFCE2F08C0"><enum>(A)</enum><text>conduct an
				assessment of the effectiveness of such activities against such performance
				measures;</text>
								</subparagraph><subparagraph id="H026884DD0B7243C988DE00754EDBF217"><enum>(B)</enum><text>cooperate with the
				collection and reporting of enrollment data and other information determined as
				a result of conducting such assessments to the Secretary, in such form and
				manner as the Secretary shall require; and</text>
								</subparagraph><subparagraph id="HB8D997B25A3C498FA0D692BA665F6D15"><enum>(C)</enum><text>conduct work under
				the grant in conjunction with the States involved.</text>
								</subparagraph></paragraph></subsection><subsection id="HD66B3513821B46899200BDDB2D1FA613"><enum>(d)</enum><header>Dissemination of
				enrollment data and information determined from effectiveness assessments;
				annual report</header><text>The Secretary shall—</text>
							<paragraph id="H6AFB53FE3A0A49C59890D8BF199009F"><enum>(1)</enum><text>disseminate to
				eligible entities and make publicly available the enrollment data and
				information collected and reported in accordance with subsection (c)(2)(B);
				and</text>
							</paragraph><paragraph id="HB8AAA26E0AED4390BDE5EF1C14659999"><enum>(2)</enum><text>submit an annual
				report to Congress on the outreach activities funded by grants awarded under
				this section.</text>
							</paragraph></subsection><subsection id="HC077ACDA9B0F428299E1E427D4B5B638"><enum>(e)</enum><header>Supplement, not
				supplant</header><text>Federal funds awarded under this section shall be used
				to supplement, not supplant, non-Federal funds that are otherwise available for
				activities funded under this section.</text>
						</subsection><subsection id="HE03B1FDD6EAC416ABA1D57200356C05C"><enum>(f)</enum><header>Definitions</header><text>In
				this section:</text>
							<paragraph id="H73BC4AAC8C43411D853F00DF43002F21"><enum>(1)</enum><header>Eligible
				entity</header><text>The term <quote>eligible entity</quote> means any of the
				following:</text>
								<subparagraph id="HEBD22B20BB7B4AF200BCCF758E00EF6B"><enum>(A)</enum><text>A local
				government.</text>
								</subparagraph><subparagraph id="H89071E8B01A04EFC8742920576A70000"><enum>(B)</enum><text>A Federal health
				safety net organization.</text>
								</subparagraph><subparagraph id="H1B068A44ABA1471DB043C4C39C7EAA20"><enum>(C)</enum><text>A national, local,
				or community-based public or nonprofit private organization, including
				community health workers.</text>
								</subparagraph><subparagraph id="HE2AD5144A87347FD86B0A8521FD300CE"><enum>(D)</enum><text>A faith-based
				organization or consortia, to the extent that a grant awarded to such an entity
				is consistent with the requirements of section 1955 of the Public Health
				Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300x-65">42 U.S.C. 300x–65</external-xref>) relating to a grant award to non-governmental
				entities.</text>
								</subparagraph><subparagraph id="HB2B756A150364B979C6CF2003000A044"><enum>(E)</enum><text>An elementary or
				secondary school.</text>
								</subparagraph></paragraph><paragraph id="HC46FC0E9A2944785B07D8B3D18A8B854"><enum>(2)</enum><header>Federal health
				safety net organization</header><text>The term <quote>Federal health safety net
				organization</quote> means—</text>
								<subparagraph id="H8B3B34AA9231409E80E5E12FFBC41F7"><enum>(A)</enum><text>an Indian tribe,
				tribal organization, or an urban Indian organization receiving funds under
				title V of the Indian Health Care Improvement Act (<external-xref legal-doc="usc" parsable-cite="usc/25/1651">25 U.S.C. 1651 et seq.</external-xref>), or
				an Indian Health Service provider;</text>
								</subparagraph><subparagraph id="H751AAA889E12424E8D67AFA2CB9E380"><enum>(B)</enum><text>a
				Federally-qualified health center (as defined in section 1905(l)(2)(B));</text>
								</subparagraph><subparagraph id="H189EB9844A444EFD814320E6E9002770"><enum>(C)</enum><text>a hospital defined
				as a disproportionate share hospital for purposes of section 1923;</text>
								</subparagraph><subparagraph id="HBE4017AB560543CDB662C49B79A8831B"><enum>(D)</enum><text>a covered entity
				described in section 340B(a)(4) of the Public Health Service Act (42 U.S.C.
				256b(a)(4)); and</text>
								</subparagraph><subparagraph id="HE987F936489D4D0DB61991DD66AB07D5"><enum>(E)</enum><text>any other entity
				or a consortium that serves children under a federally-funded program,
				including the special supplemental nutrition program for women, infants, and
				children (WIC) established under section 17 of the Child Nutrition Act of 1966
				(<external-xref legal-doc="usc" parsable-cite="usc/42/1786">42 U.S.C. 1786</external-xref>), the head start and early head start programs under the Head
				Start Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9801">42 U.S.C. 9801 et seq.</external-xref>), the school lunch program established under
				the Richard B. Russell National School Lunch Act, and an elementary or
				secondary school.</text>
								</subparagraph></paragraph><paragraph id="HAD9B5C548E29417B85B51B4601E08661"><enum>(3)</enum><header>Indians; indian
				tribe; tribal organization; urban indian organization</header><text>The terms
				<quote>Indian</quote>, <quote>Indian tribe</quote>, <quote>tribal
				organization</quote>, and <quote>urban Indian organization</quote> have the
				meanings given such terms in section 4 of the Indian Health Care Improvement
				Act (<external-xref legal-doc="usc" parsable-cite="usc/25/1603">25 U.S.C. 1603</external-xref>).</text>
							</paragraph></subsection><subsection id="H57465790CECB43EAA6EFDF41999FA2F5"><enum>(g)</enum><header>Appropriation</header><text>There
				is appropriated, out of any money in the Treasury not otherwise appropriated,
				$50,000,000 for each of fiscal years 2008 through 2012 for the purpose of
				awarding grants under this section. Amounts appropriated and paid under the
				authority of this section shall be in addition to amounts appropriated under
				section 2104 and paid to States in accordance with section 2105, including with
				respect to expenditures for outreach activities in accordance with subsection
				(a)(1)(D)(iii) of such
				section.</text>
						</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
			</section><section id="HC6A094A737C9485F8B8B130051378FD2"><enum>208.</enum><header>Model of
			 Interstate coordinated enrollment and coverage process</header><text display-inline="no-display-inline">In order to assure continuity of coverage of
			 low-income children under the Medicaid program and the State Children’s Health
			 Insurance Program (SCHIP), the Secretary of Health and Human Services, in
			 consultation with State Medicaid and SCHIP directors, shall develop and
			 disseminate a model process for the coordination of the enrollment and coverage
			 under such programs of children who, because of migration of families,
			 emergency evacuations, educational needs, or otherwise, frequently change their
			 State of residency or otherwise are temporarily present outside of the State of
			 their residency.</text>
			</section><section commented="no" display-inline="no-display-inline" id="HD20C065CCA0943C5BE6928EC50589DC5" section-type="subsequent-section"><enum>209.</enum><header>Authority for
			 qualifying States to use portion of SCHIP allotment for any fiscal year for
			 certain medicaid expenditures</header><text display-inline="no-display-inline">Section 2105(g)(1)(A) of the Social Security
			 Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397ee">42 U.S.C. 1397ee(g)(1)(A)</external-xref>), as amended by section 201(b) of the National
			 Institutes of Health Reform Act of 2006 (<external-xref legal-doc="public-law" parsable-cite="pl/109/482">Public Law 109–482</external-xref>) is amended by
			 striking <quote>fiscal year 1998, 1999, 2000, 2001, 2004, 2005, 2006, or
			 2007</quote> and inserting <quote>a fiscal year</quote>.</text>
			</section><section id="H5E55C8B936C94CDD00F52B093792EB6"><enum>210.</enum><header>Application of
			 medicaid outreach procedures to all pregnant women and children</header>
				<subsection id="H7C48BFFDA20B448CB1D6A2858B377074"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 1902(a)(55)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(55)</external-xref>) is amended by striking
			 <quote>individuals for medical assistance under subsection (a)(10)(A)(i)(IV),
			 (a)(10)(A)(i)(VI), (a)(10)(A)(i)(VII), or (a)(10)(A)(ii)(IX)</quote> and
			 inserting <quote>child and pregnant women for medical assistance (including
			 under clauses (i)(IV), (i)(VI), (i)(VII), and (ii)(IX) of paragraph
			 (10)(A))</quote>.</text>
				</subsection><subsection id="H207BE62303C147FC9FE1C3E22CB30008"><enum>(b)</enum><header>Effective
			 date</header>
					<paragraph id="HDD6BA729CD29463FA4CF4E40402727AB"><enum>(1)</enum><header>In
			 general</header>
					</paragraph><paragraph id="HAB730AD37DF2410AA7AE43E1F7690600"><enum>(2)</enum><header>Exception for
			 State legislation</header><text>In the case of a State plan under title XIX of
			 the Social Security Act, which the Secretary of Health and Human Services
			 determines requires State legislation in order for the plan to meet the
			 additional requirements imposed by the amendment made by subsection (a), the
			 State plan shall not be regarded as failing to comply with the requirements of
			 such Act solely on the basis of its failure to meet these additional
			 requirements before the first day of the first calendar quarter beginning after
			 the close of the first regular session of the State legislature that begins
			 after the date of enactment of this Act. For purposes of the previous sentence,
			 in the case of a State that has a 2-year legislative session, each year of the
			 session shall be considered to be a separate regular session of the State
			 legislature.</text>
					</paragraph></subsection></section><section id="H52F4227DED1D406EB51FBB9926DC99AC"><enum>211.</enum><header>No impact on
			 section 1115 waivers</header><text display-inline="no-display-inline">Nothing
			 in this Act shall be construed to affect waivers regarding State flexibility on
			 eligibility previously approved by the Secretary of Health and Human Services
			 under section 1115 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1315">42 U.S.C. 1315</external-xref>).</text>
			</section><section id="H7D02BDDD35314F64936482B46718345D"><enum>212.</enum><header>Elimination of
			 counting medicaid child presumptive eligibility costs against title XXI
			 allotment</header><text display-inline="no-display-inline">Section 2105(a)(1)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397ee">42 U.S.C. 1397ee(a)(1)</external-xref>) is amended—</text>
				<paragraph id="H5431A80D51A4415B8B03575F6D9C1F11"><enum>(1)</enum><text>in the matter
			 preceding subparagraph (A), by striking <quote>(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)))</quote>; and</text>
				</paragraph><paragraph id="HD4945005D3584C25901355A1762275B"><enum>(2)</enum><text>by
			 amending subparagraph (B) to read as follows:</text>
					<quoted-block display-inline="no-display-inline" id="H4249040E3BE949CFB2B6D05832B58893" style="OLC">
						<subparagraph id="H02E697B68EF84FB19F09867F53C5BE4"><enum>(B)</enum><text>[reserved]</text>
						</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section><section id="H5D36A47B5D3147D400D79E591BCA5EFE"><enum>213.</enum><header>Prohibiting
			 limitations on enrollment</header>
				<subsection id="HDF3E62ACA57D4589A71BF1E9DC300083"><enum>(a)</enum><header>In
			 general</header><text>Section 2102(b)(3)(B) of the Social Security Act (42
			 U.S.C. 1397bb(b)(3)(B)) is amended—</text>
					<paragraph id="H67F89D583D42491DB5E83BCC1961D8D6"><enum>(1)</enum><text>by striking
			 <quote>and</quote> at the end of clause (i);</text>
					</paragraph><paragraph id="H7A04092565E14C17A955E203CF286512"><enum>(2)</enum><text>by striking the
			 period at the end of clause (ii) and inserting <quote>; and</quote>; and</text>
					</paragraph><paragraph id="H8A1F70B72B6245D9965FE5C0BF50FC8"><enum>(3)</enum><text>by
			 adding at the end the following new clause:</text>
						<quoted-block display-inline="no-display-inline" id="H78E11F11154A43EBB6DFC1AB9B0601C0" style="OLC">
							<clause id="HD4460B1BCF674FFBB4E700DE8BD0C924"><enum>(iii)</enum><text display-inline="yes-display-inline">shall not impose, with respect to
				enrollment of targeted low-income children under the State child health plan,
				any enrollment cap or other numerical limitation on enrollment, any waiting
				list, any procedures designed to delay the consideration of applications for
				enrollment, or similar limitation with respect to
				enrollment.</text>
							</clause><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="H43C6B1DE433B4EB9B5AAC2CEBDA90EF"><enum>(b)</enum><header>Effective
			 date</header><text>The amendments made by subsection (a) shall apply to State
			 child health plans as of October 1, 2007.</text>
				</subsection></section></title><title id="H1C28AE88AA3341299940EDFEF0F25F59"><enum>III</enum><header>Healthy savings
			 tax credit</header>
			<section display-inline="no-display-inline" id="HDBF54CBA0CAC4B75BDB6E502D9B86B59" section-type="subsequent-section"><enum>301.</enum><header>Healthy savings tax
			 credit</header>
				<subsection id="H151B8E2BB5264155ABC3A9D21E1083A5"><enum>(a)</enum><header>In
			 general</header><text>Subpart C of part IV of subchapter A of chapter 1 of the
			 Internal Revenue Code of 1986 (relating to refundable personal credits) is
			 amended by redesignating section 36 as section 37 and by inserting after
			 section 35 the following new section:</text>
					<quoted-block id="H7F3296CD733C4D72001EBD8901CEABA">
						<section id="H9D2193DA8A734D9DB339F8FD4F27ABE2"><enum>36.</enum><header>Health insurance
				for qualifying children</header>
							<subsection id="H1CFE34F0E8A440D89BF0257DA1A41EC1"><enum>(a)</enum><header>In
				general</header><text>In the case of an individual, there shall be allowed as a
				credit against the tax imposed by subtitle A an amount equal to the applicable
				percentage of the amount paid by the taxpayer for coverage of qualifying
				children of the taxpayer under qualified health insurance for eligible coverage
				months beginning in the taxable year.</text>
							</subsection><subsection id="HBC6A2871B6CE4070AD72FBA850E11063"><enum>(b)</enum><header>Eligible
				coverage month</header><text>For purposes of this section, the term
				<quote>eligible coverage month</quote> means, with respect to any qualifying
				child of the taxpayer, any month with respect to which the designated State
				agency has certified that, as of the first day of such month, such
				child—</text>
								<paragraph id="HBA77D543B6294911B6A57FC196EC3681"><enum>(1)</enum><text>is covered by
				qualified health insurance,</text>
								</paragraph><paragraph id="H8E95EE167390461AB5079736D16266EE"><enum>(2)</enum><text>does not have
				access to other specified coverage for such month (as determined under
				subsection (f)), and</text>
								</paragraph><paragraph id="H4B80180C47764E06963F7D4F1B8E8631"><enum>(3)</enum><text>is not imprisoned
				under Federal, State, or local authority.</text>
								</paragraph></subsection><subsection id="HC531375053564817B1E87E1F7EF3755E"><enum>(c)</enum><header>Applicable
				percentage</header>
								<paragraph id="H50DD9906C710406098416BCEEA24D231"><enum>(1)</enum><header>In
				general</header><text>For purposes of this section, the term <quote>applicable
				percentage</quote> means the percentage determined in accordance with the
				following table:</text>
									<table align-to-level="section" blank-lines-before="1" frame="none" line-rules="no-gen" rule-weights="4.4.4.0.0.0" subformat="S6211" table-type="2-Generic:-2-text,-1st-longer">
										<tgroup cols="2" grid-typeface="1.1" no-carding="1" thead-tbody-ldg-size="10.10.12" ttitle-size="0"><colspec align="left" coldef="txt" colname="col1" colsep="1" colwidth="310" min-data-value="200" rowsep="0"></colspec><colspec align="left" coldef="txt-no-ldr" colname="col2" colsep="1" colwidth="155" min-data-value="100"></colspec>
											<thead>
												<row><entry align="center" colname="col1" rowsep="0">In the case
						of a taxpayer whose adjusted gross income for the taxable year
						is:</entry><entry align="center" colname="col2" rowsep="0">The applicable
						percentage is:</entry>
												</row>
											</thead>
											<tbody>
												<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">200 percent of the
						poverty line or less</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">0 percent</entry>
												</row>
												<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 200 percent,
						but not more than 225 percent, of the poverty line</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">75 percent</entry>
												</row>
												<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 225 percent,
						but not more than 250 percent, of the poverty line</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">65 percent</entry>
												</row>
												<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 250 percent,
						but not more than 300 percent, of the poverty line</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">55 percent</entry>
												</row>
												<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 300 percent,
						but not more than 350 percent, of the poverty line</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">50 percent</entry>
												</row>
												<row><entry align="left" colname="col1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 350 percent
						of the poverty line</entry><entry align="left" colname="col2" leader-modify="clr-ldr" rowsep="0">0 percent.</entry>
												</row>
											</tbody>
										</tgroup>
									</table>
								</paragraph><paragraph id="H23B36379ACB54110B25392D046E3E000"><enum>(2)</enum><header>Poverty
				line</header><text display-inline="yes-display-inline">For purposes of
				paragraph (1), the term <quote>poverty line</quote> means 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 Community Services Block
				Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>) applicable to a family of the size
				involved.</text>
								</paragraph></subsection><subsection id="H6CA82FB0FE7E432C9F00C555DDAB0243"><enum>(d)</enum><header>Qualifying
				child</header><text>For purposes of this section, the term <quote>qualifying
				child</quote> means, with respect to any taxpayer, any qualifying child of the
				taxpayer (as defined in section 152(c)).</text>
							</subsection><subsection id="HA8BA267595444E3E9B00BA00194D29C6"><enum>(e)</enum><header>Qualified health
				insurance</header><text>For purposes of this section—</text>
								<paragraph id="HCF0D18B81E03472AB14C40A300827E7F"><enum>(1)</enum><header>In
				general</header><text>The term <quote>qualified health insurance</quote> means,
				with respect to any qualifying child of the taxpayer—</text>
									<subparagraph id="HF0778BCC3426445A877E43A2B10C18"><enum>(A)</enum><text>coverage under any
				insurance constituting medical care which is certified by the designated State
				agency as being—</text>
										<clause id="H3136D5A3F30C4FBB9EBB7B2668007409"><enum>(i)</enum><text>provided under a
				group health plan (as defined in section 5000(b)(1)), and</text>
										</clause><clause id="H2501D0B31B90401CB2D986BD7112CC51"><enum>(ii)</enum><text>at least
				actuarially equivalent in benefits coverage to the plan described in paragraph
				(2), or</text>
										</clause></subparagraph><subparagraph id="H9C8C5696213449A299665B502039C711"><enum>(B)</enum><text>in the case of a
				qualifying child who is certified by the designated State agency as not
				eligible for coverage under any insurance described in subparagraph (A),
				coverage under any of the following plans if such coverage has been certified
				by the designated State agency as being at least actuarially equivalent in
				benefits coverage to the plan described in paragraph (2):</text>
										<clause display-inline="no-display-inline" id="HCB23D36B8C8D47B1AFA592FC06AC4BFB"><enum>(i)</enum><header>Coverage offered
				through HMO</header><text display-inline="yes-display-inline">The health
				insurance coverage plan that—</text>
											<subclause id="H0116B31DFA3D4A6B888BEB3852792E43"><enum>(I)</enum><text>is offered by a
				health maintenance organization (as defined in section 2791(b)(3) of the Public
				Health Service Act), and</text>
											</subclause><subclause id="H6FDA01280CF24BBD9FDD7553ADBD1B48"><enum>(II)</enum><text>has the largest
				insured commercial, nonmedicaid enrollment of covered lives of such coverage
				plans offered by such a health maintenance organization in the State.</text>
											</subclause></clause><clause id="HE04B5DB55C2446C0A571CDB09286A7BD"><enum>(ii)</enum><header>State employee
				coverage</header><text display-inline="yes-display-inline">The health insurance
				plan that is offered to State employees and has the largest enrollment of
				covered lives of any such plan.</text>
										</clause><clause id="H090F5B444B1F4610ACF3694482F61051"><enum>(iii)</enum><header>SCHIP
				coverage</header><text display-inline="yes-display-inline">Coverage provided
				under the State plan approved under the State children’s health insurance
				program under title XXI of Social Security Act (without regard to coverage
				provided under a waiver of the requirements of such program).</text>
										</clause><clause id="HE808B80DF98F4E549893FAC8D63849BC"><enum>(iv)</enum><header>State certified
				actuarially equivalent coverage</header><text>A State-based health insurance
				program.</text>
										</clause></subparagraph></paragraph><paragraph id="H5912D70F1E7644A190F36DF7FEE119A4"><enum>(2)</enum><header>FEHBP
				actuarially equivalent health benefits coverage</header>
									<subparagraph id="H90FFA1599BA04B95B2E0E45230347B9E"><enum>(A)</enum><header>In
				general</header><text display-inline="yes-display-inline">The plan described in
				and offered under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/89">chapter 89</external-xref> of title 5, United States Code with the highest
				number of enrollees under such section for the year preceding the year in which
				the coverage described in paragraph (1) is provided.</text>
									</subparagraph><subparagraph id="HCF618C1D23CE4A0B9E1FF71C64113580"><enum>(B)</enum><header>Application of
				benchmark standard</header><text display-inline="yes-display-inline">Coverage
				is actuarially equivalent to benefits coverage under the plan described in
				subparagraph (A) if such coverage covers all items and services offered by the
				benchmark plan, with out-of-pocket cost-sharing for such items and services
				that is not greater than under the benchmark plan.</text>
									</subparagraph></paragraph><paragraph id="H121D702EAE634ECC9DC08FA6E9F78450"><enum>(3)</enum><header>Insurance which
				covers other individuals</header><text>In the case of any contract for
				qualified health insurance under which amounts are payable for coverage of any
				individual other than one or more qualifying children, the amount treated as
				paid for coverage of qualifying children under such insurance shall be the
				greater of—</text>
									<subparagraph id="H352B5AD14A8240D5007B003313A404D1"><enum>(A)</enum><text>the amount which
				would be so treated under rules similar to the rules of section 213(d)(6),
				or</text>
									</subparagraph><subparagraph id="HEB32C94B4DAC43F9BAE4D1DB3108F009"><enum>(B)</enum><text>30 percent of the
				amounts payable for coverage of all individuals covered under the contract
				under qualified health insurance.</text>
									</subparagraph></paragraph><paragraph id="HE5D1DCCF5A0C4D08A9FD7D8289F8E41"><enum>(4)</enum><header>Only one policy
				taken into account per child</header><text>With respect to any qualifying child
				for any period, coverage under not more than one contract for qualified health
				insurance may be taken into account under subsection (a).</text>
								</paragraph><paragraph id="H33FF2CAC490448F799D8F953B9857080"><enum>(5)</enum><header>Exception</header><text>The
				term <quote>qualified health insurance</quote> shall not include—</text>
									<subparagraph id="H6E2A59200D4E43EDA274118263366007"><enum>(A)</enum><text>a flexible
				spending or similar arrangement, and</text>
									</subparagraph><subparagraph id="H4FF35B5696CF4EDABA5DCD9710E3A5FD"><enum>(B)</enum><text>any insurance if
				substantially all of its coverage is of excepted benefits described in section
				9832(c).</text>
									</subparagraph></paragraph><paragraph id="HD93DC0A175B846AB9FEFADDD49655FCD"><enum>(6)</enum><header>Other
				requirements</header><text>The term <quote>qualified health
				insurance</quote>shall not include any insurance unless such insurance meets
				the following requirements:</text>
									<subparagraph id="HBE380E77607D4063AC1DE2A9FF7ECE5C"><enum>(A)</enum><header>Group health
				plan requirements</header><text>The health benefits coverage provided meets the
				requirements applicable to a group health plan under chapter 100 of this title,
				part 7 of subtitle B of title I of the Employee Retirement Income Security Act
				of 1974, and State law.</text>
									</subparagraph><subparagraph id="H5FA27FF767EB4102B9CB3D4492395D99"><enum>(B)</enum><header>Guaranteed issue
				and renewable</header><text>The arrangement does not deny coverage (including
				renewal of coverage) with respect to any qualifying child on the basis of
				health status of such qualifying child or any other factor, condition or
				requirement.</text>
									</subparagraph><subparagraph id="HE1450D65CE074D74B1DAAAE4528DC8B2"><enum>(C)</enum><header>No preexisting
				condition exclusion</header><text>The arrangement does not permit a preexisting
				condition exclusion as defined under section 9801(b)(1).</text>
									</subparagraph><subparagraph id="H8D8D7758B18C45A8BC50A9A3E19EEE96"><enum>(D)</enum><header>No underwriting;
				community-rated premiums</header>
										<clause id="HC187055D1ECB4E23BFF9A9CFAE154F1"><enum>(i)</enum><header>Underwriting</header><text>Subject
				to subparagraph (B), the arrangement does not permit underwriting, through a
				preexisting condition limitation, differential benefits, or different premium
				levels, or otherwise, with respect to such coverage for any qualifying
				child.</text>
										</clause><clause id="HDBB181DE1C0246BFB9C2A100F72E921E"><enum>(ii)</enum><header>Community-rated
				premiums</header><text>The premiums charged for such coverage are
				community-rated for individuals without regard to health status.</text>
										</clause></subparagraph><subparagraph id="H29DD1C1D07F6461B9B6B742EAA928E00"><enum>(E)</enum><header>No
				riders</header><text>The arrangement does not permit riders to the health
				benefits coverage.</text>
									</subparagraph></paragraph></subsection><subsection id="H98B2CF283D8541ED8787EDCB15DF17D4"><enum>(f)</enum><header>Other specified
				coverage</header><text>For purposes of this section, an individual has access
				to other specified coverage for any month if, as of the first day of such
				month—</text>
								<paragraph id="HF48EB511142C489BA4E5392B04C46366"><enum>(1)</enum><header>Medicare,
				Medicaid, and SCHIP</header><text>Such individual—</text>
									<subparagraph id="H52E89719253A408993ADC18C55B47809"><enum>(A)</enum><text>is entitle to
				benefits under part A of title XVIII of the Social Security Act or is enrolled
				under part B of such title, or</text>
									</subparagraph><subparagraph id="HA8243D986D9B4B788EB7B69783B06F2B"><enum>(B)</enum><text>is eligible to
				participate in any program under title XIX or XXI of such Act (other than under
				section 1928 of such Act).</text>
									</subparagraph></paragraph><paragraph id="H546CA1F085EC47D8A946ECB8041BF97B"><enum>(2)</enum><header>Certain other
				coverage</header><text>Such individual—</text>
									<subparagraph id="H906DCF02CE444B77A481DEEC4E3F7733"><enum>(A)</enum><text>is enrolled in a
				health benefits plan under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/89">chapter 89</external-xref> of title 5, United States Code, or</text>
									</subparagraph><subparagraph id="H3A9F7F58B44E4617BCB48EA257E800F3"><enum>(B)</enum><text>is entitle to
				receive benefits under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/55">chapter 55</external-xref> of title 10, United States Code.</text>
									</subparagraph></paragraph></subsection><subsection id="H211FB08535044478B3697D7B587C1383"><enum>(g)</enum><header>Designated State
				agency</header><text display-inline="yes-display-inline">For purposes of this
				section, the term <quote>designated State agency</quote> means, with respect to
				any State, the agency responsible for administering the State children’s health
				insurance program under title XXI of Social Security Act in such State. For
				purposes of carrying out any responsibility under this section, such agency may
				utilize eligibility procedures under title XIX or XXI of such Act to the extent
				not inconsistent with this section.</text>
							</subsection><subsection id="HD2FF03CBD88C4BC8911D5306F3982AF"><enum>(h)</enum><header>Special
				rules</header>
								<paragraph id="H5C63F6AE3CA244D28D8983F6A9DDD9D5"><enum>(1)</enum><header>Coordination
				with advance payment</header><text>With respect to any taxable year, the amount
				which would (but for this subsection) be allowed as a credit under subsection
				(a) shall be reduced (but not below zero) by the aggregate amount paid on
				behalf of such taxpayer under section 7529 for such taxable year.</text>
								</paragraph><paragraph id="H6DA5D7F9177E4162B1CFD976798E23DF"><enum>(2)</enum><header>Coordination
				with other health insurance credit</header><text>Amounts taken into account
				under subsection (a) shall not be taken into account under section
				35(a).</text>
								</paragraph><paragraph id="HB50D017E7750432182A9141F87814EAD"><enum>(3)</enum><header>Application of
				other rules</header><text>Rules similar to the rules of paragraphs (2), (3),
				(4), (8), and (9) of section 35(g) shall apply for purposes of this
				section.</text>
								</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="HAF947E858D9D480E909B6F556FA437F8"><enum>(b)</enum><header>Advance payment
			 of credit</header><text>Chapter 77 of such Code (relating to miscellaneous
			 provisions) is amended by adding at the end the following new section:</text>
					<quoted-block id="H7CE649DE30FD4FDCB386B0100542FC8">
						<section id="H357B66442F8940F7922059040937EEED"><enum>7529.</enum><header>Advance
				payment of credit for health insurance for qualifying children</header><text display-inline="no-display-inline">The Secretary shall establish a program for
				making payments to providers of qualified health insurance (as defined in
				section 36) on behalf of taxpayers eligible for the credit under section 36.
				Except as otherwise provided by the Secretary, such payments shall be made on
				the basis of the adjusted gross income of the taxpayer for the preceding
				taxable
				year.</text>
						</section><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection display-inline="no-display-inline" id="HEAA4E7C1945241A2831FDDD473585E3B"><enum>(c)</enum><header>Disclosure of
			 return information for purposes of advance payment of credit as premiums for
			 health insurance for qualifying children</header>
					<paragraph id="H5F46FF8AD2D646819E82D7EF4CA5B1EF"><enum>(1)</enum><header>In
			 general</header><text>Subsection (l) of section 6103 of such Code is amended by
			 adding at the end the following new paragraph:</text>
						<quoted-block display-inline="no-display-inline" id="H5A61C482817C454B82A6A16F1D3D9BE6" style="OLC">
							<paragraph id="H41316BAF898F4006938CC8FFF7170783"><enum>(21)</enum><header>Disclosure of
				return information for purposes of advance payment of credit as premiums for
				health insurance for qualifying children</header><text display-inline="yes-display-inline">The Secretary may, on behalf of taxpayers
				eligible for the credit under section 36, disclose to a provider of qualified
				health insurance (as defined in such section), and persons acting on behalf of
				such provider, return information with respect to any such taxpayer only to the
				extent necessary (as prescribed by regulations issued by the Secretary) to
				carry out the program established by section 7529 (relating to advance payment
				of credit as premium payment for health insurance for qualifying
				children).</text>
							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H8674ACF95C0C4D6E8017C1FE4290AC35"><enum>(2)</enum><header>Confidentiality
			 of information</header><text>Paragraph (3) of section 6103(a) of such Code is
			 amended by striking <quote>or (20)</quote> and inserting <quote>(20), or
			 (21)</quote>.</text>
					</paragraph><paragraph commented="no" id="HA157ADE275FC4941912DBCBABA3E2FF"><enum>(3)</enum><header>Unauthorized
			 disclosure</header><text display-inline="yes-display-inline">Paragraph (2) of
			 section 7213(a) of such Code is amended by striking <quote>or (20)</quote> and
			 inserting <quote>(20), or (21)</quote>.</text>
					</paragraph></subsection><subsection display-inline="no-display-inline" id="HE52900F409FE42CFBA9DB63C8CEF2EE"><enum>(d)</enum><header>Information
			 reporting</header>
					<paragraph id="H059F0BB9B609481C9151A65E71B1F56C"><enum>(1)</enum><header>In
			 general</header><text>Subpart B of part III of subchapter A of chapter 61 of
			 such Code (relating to information concerning transactions with other persons)
			 is amended by adding at the end the following new section:</text>
						<quoted-block display-inline="no-display-inline" id="H4059AB89D3704375883DDF2B6F0463F9" style="OLC">
							<section id="H029A7ACE99C5407A8FD000885D26C706"><enum>6050W.</enum><header>Returns
				relating to credit for health insurance for qualifying children</header>
								<subsection id="HDF93B16593074296AAF52B301BC43D22"><enum>(a)</enum><header>Requirement of
				reporting</header><text display-inline="yes-display-inline">Every person who is
				entitled to receive payments for any month of any calendar year under section
				7529 (relating to advance payment of credit as premium payment for qualified
				health insurance) with respect to any individual shall, at such time as the
				Secretary may prescribe, make the return described in subsection (b) with
				respect to each such individual.</text>
								</subsection><subsection id="HBE594C4782474341BF55781682C82633"><enum>(b)</enum><header>Form and manner
				of returns</header><text>A return is described in this subsection if such
				return—</text>
									<paragraph id="HFABE4C90D03D403EB7164EC0E24F3CE9"><enum>(1)</enum><text>is in such form as
				the Secretary may prescribe, and</text>
									</paragraph><paragraph id="H4BA7A0D41CB04AC1A974B97625364E3"><enum>(2)</enum><text>contains—</text>
										<subparagraph id="HA50706DC841448AE871FFF488186A15B"><enum>(A)</enum><text>the name, address,
				and TIN of each individual referred to in subsection (a),</text>
										</subparagraph><subparagraph id="H98B98D873D304EF9BDFC4DDEE6B1B53F"><enum>(B)</enum><text display-inline="yes-display-inline">the number of months for which amounts were
				entitled to be received with respect to such individual under section 7529
				(relating to advance payment of credit as premium payment for health insurance
				for qualifying children),</text>
										</subparagraph><subparagraph id="HD735234314B643F7ACF16DBAD4D07400"><enum>(C)</enum><text>the amount
				entitled to be received for each such month, and</text>
										</subparagraph><subparagraph id="H6A504CA9F7914A26A53C37D2EB22B9AE"><enum>(D)</enum><text>such other
				information as the Secretary may prescribe.</text>
										</subparagraph></paragraph></subsection><subsection id="H47734267EC2A4CED00E300E45E7B33CC"><enum>(c)</enum><header>Statements To be
				furnished to individuals with respect to whom information is
				required</header><text>Every person required to make a return under subsection
				(a) shall furnish to each individual whose name is required to be set forth in
				such return a written statement showing—</text>
									<paragraph id="H4C73F2A721BA44A580AF58D734E68244"><enum>(1)</enum><text>the name and
				address of the person required to make such return and the phone number of the
				information contact for such person, and</text>
									</paragraph><paragraph id="HACFD14482424419CBEDF95D79FFC37B4"><enum>(2)</enum><text>the information
				required to be shown on the return with respect to such individual.</text>
									</paragraph><continuation-text continuation-text-level="subsection">The
				written statement required under the preceding sentence shall be furnished on
				or before January 31 of the year following the calendar year for which the
				return under subsection (a) is required to be
				made.</continuation-text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="HFF7C17FF2D3E4152ABAB7D00EDB3D17B"><enum>(2)</enum><header>Assessable
			 penalties</header>
						<subparagraph id="H04D59E9C1E7E42919B58461BF43C0021"><enum>(A)</enum><text>Subparagraph (B)
			 of section 6724(d)(1) of such Code (relating to definitions) is amended by
			 striking <quote>or</quote> at the end of clause (xix), by striking
			 <quote>and</quote> at the end of clause (xx) and inserting <quote>or</quote>,
			 and by inserting after clause (xx) the following new clause:</text>
							<quoted-block display-inline="no-display-inline" id="H524C8947BB1C49C4AF355EEE005E8C1F" style="OLC">
								<clause id="H84198939466044EABC23CE7E7F8100DB"><enum>(xxi)</enum><text display-inline="yes-display-inline">section 6050W (relating to returns relating
				to credit for health insurance for qualifying children),
				and</text>
								</clause><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph><subparagraph id="H1F27C132F62D48EBA8656B4407CAF320"><enum>(B)</enum><text>Paragraph (2) of
			 section 6724(d) of such Code is amended by striking <quote>or</quote> at the
			 end of subparagraph (BB), by striking the period at the end of subparagraph
			 (CC) and inserting <quote>, or</quote>, and by adding after subparagraph (CC)
			 the following new subparagraph:</text>
							<quoted-block display-inline="no-display-inline" id="H9A358A3A864A4E9EBDBE340077CEE8D3" style="OLC">
								<subparagraph id="HCB0CE6BB4D7F451D9BEE7CC55138EDA"><enum>(DD)</enum><text display-inline="yes-display-inline">section 6050W (relating to returns relating
				to credit for health insurance for qualifying
				children).</text>
								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph></subsection><subsection id="H527438396D81429EAE689326C1B8A5F"><enum>(e)</enum><header>Conforming
			 amendments</header>
					<paragraph id="H416B0B532AFF49CD00DE00E59C974EAA"><enum>(1)</enum><text>Paragraph (2) of
			 <external-xref legal-doc="usc" parsable-cite="usc/31/1324">section 1324(b)</external-xref> of title 31, United States Code, is amended by inserting
			 <quote>or 36</quote> after <quote>section 35</quote>.</text>
					</paragraph><paragraph id="HB204236F87CB43DEB94418AF40071B"><enum>(2)</enum><text>The
			 table of sections for subpart C of part IV of subchapter A of chapter 1 of the
			 Internal Revenue Code of 1986 is amended by redesignating the item relating to
			 section 36 as an item relating to section 37 and by inserting after the item
			 relating to section 35 the following new item:</text>
						<quoted-block display-inline="no-display-inline" id="H87856B29F2474117A66BD537DE461BE" style="OLC">
							<toc container-level="quoted-block-container" idref="H7F3296CD733C4D72001EBD8901CEABA" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
								<toc-entry idref="H9D2193DA8A734D9DB339F8FD4F27ABE2" level="section">Sec. 36. Health insurance for qualifying
				children.</toc-entry>
							</toc>
							<after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph display-inline="no-display-inline" id="H63B9559BF2D541F98D630000DDAA6129"><enum>(3)</enum><text>The table of
			 sections for subpart B of part III of subchapter A of chapter 61 of such Code
			 is amended by adding at the end the following new item:</text>
						<quoted-block display-inline="no-display-inline" id="H7158B54D0DD64500AF06001C27F1007E" style="OLC">
							<toc container-level="quoted-block-container" idref="H749A3D5526A743BCA9C9D237E6B7385C" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
								<toc-entry idref="H749A3D5526A743BCA9C9D237E6B7385C" level="section">Sec. 6050W. Returns relating to credit for health insurance for
				qualifying
				children.</toc-entry>
							</toc>
							<after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="HADAF952D603246C2ACC58BF4B17BF223"><enum>(4)</enum><text>The table of
			 sections for chapter 77 of such Code is amended by adding at the end the
			 following new item:</text>
						<quoted-block display-inline="no-display-inline" id="HFA0ADEDA8ACD4614A7FD25D2F3E42E87" style="OLC">
							<toc container-level="quoted-block-container" idref="H7CE649DE30FD4FDCB386B0100542FC8" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
								<toc-entry idref="H357B66442F8940F7922059040937EEED" level="section">Sec. 7529. Advance payment of credit for health insurance of
				qualifying
				children.</toc-entry>
							</toc>
							<after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="H0746D2870CCC424AAC85D2EF562C39DD"><enum>(f)</enum><header>Effective
			 date</header><text>The amendments made by this section shall apply to taxable
			 years beginning after December 31, 2008.</text>
				</subsection><subsection id="H70181E51E98E4AA28CA74079D2B0F5DA"><enum>(g)</enum><header>Reimbursement
			 for administrative costs incurred in determining eligibility for
			 credit</header>
					<paragraph id="H10942783BC46431EA464C5CA52C19E42"><enum>(1)</enum><header>In
			 general</header><text>The Secretary of Health and Human Services shall
			 reimburse States for all reasonable administrative costs incurred in making
			 eligibility determinations in accordance with section 36 of the Internal
			 Revenue Code of 1986 (as added by subsection (a)). Such reimbursement shall not
			 apply to State costs incurred under the State children's health insurance
			 programs or Medicaid.</text>
					</paragraph><paragraph id="H7DFBD9276D0941FAA42693AE73F2524"><enum>(2)</enum><header>Appropriation</header><text>Out
			 of any money in the Treasury of the United States not otherwise appropriated,
			 there are appropriated such sums as may be necessary to carry out this
			 subsection.</text>
					</paragraph></subsection></section></title><title id="H38F63556EEC4498D8FF4EFF68B892511"><enum>IV</enum><header>Broker reporting
			 of customer’s basis in securities transactions</header>
			<section id="HE937C1E5E78D44D2BA004912DABDE8DC" section-type="subsequent-section"><enum>401.</enum><header>Broker reporting of
			 customer's basis in securities transactions</header>
				<subsection id="HC17EC4A1E3EE4B1BA85C9EC36E6023F"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 6045 of the
			 Internal Revenue Code of 1986 (relating to returns of brokers) is amended by
			 adding at the end the following new subsection:</text>
					<quoted-block display-inline="no-display-inline" id="H35A9DA6B6B8E4505B15DAF7B74D897B1" style="OLC">
						<subsection id="H4D4FEDCF64564B7EB76F00E4C5983123"><enum>(g)</enum><header>Additional
				information required in the case of securities transactions</header>
							<paragraph id="H8689C6ECCAF8461FA200922B2EEAB68F"><enum>(1)</enum><header>In
				general</header><text>If a broker is otherwise required to make a return under
				subsection (a) with respect to any applicable security, the broker shall
				include in such return the information described in paragraph (2).</text>
							</paragraph><paragraph id="HD15F5A7A4C5146CD95C46BD3C3CAA46D"><enum>(2)</enum><header>Additional
				information required</header>
								<subparagraph id="H7C76F1EBF38542F3B008DF9FB840D8A"><enum>(A)</enum><header>In
				general</header><text>The information required under paragraph (1) to be shown
				on a return with respect to an applicable security of a customer shall include
				for each reported applicable security the customer's adjusted basis in such
				security.</text>
								</subparagraph><subparagraph id="H9A3A695A94364A2785CE3D660024ABE2"><enum>(B)</enum><header>Exemption from
				requirement</header><text>The Secretary shall issue such regulations or
				guidance as necessary concerning the application of the requirement under
				subparagraph (A) in cases in which a broker in making a return does not have
				sufficient information to meet such requirement with respect to the reported
				applicable security. Such regulations or guidance may—</text>
									<clause id="HE9839873C78D481AB93D21535D6E4EDC"><enum>(i)</enum><text>require such other
				information related to such adjusted basis as the Secretary may prescribe,
				and</text>
									</clause><clause id="HF1C5A191A087455D84C1F69C05D721E3"><enum>(ii)</enum><text>exempt classes of
				cases in which the broker does not have sufficient information to meet either
				the requirement under subparagraph (A) or the requirement under clause
				(i).</text>
									</clause></subparagraph></paragraph><paragraph id="H45338025A5264ABB9D5B3950E2E5E75B"><enum>(3)</enum><header>Information
				transfers</header><text>To the extent provided in regulations, there shall be
				such exchanges of information between brokers as such regulations may require
				for purposes of enabling such brokers to meet the requirements of this
				subsection.</text>
							</paragraph><paragraph id="HCFCD317DC86D46D4A9C0FF13242300D4"><enum>(4)</enum><header>Definitions</header><text>For
				purposes of this subsection, the term <term>applicable security</term> means
				any—</text>
								<subparagraph id="H0E472291E25B4007AFD19F07D600064C"><enum>(A)</enum><text>security described
				in subparagraph (A) or (C) of section 475(c)(2),</text>
								</subparagraph><subparagraph id="H8F70CBF2CB65421C8B538562EDB082F6"><enum>(B)</enum><text>interest in a
				regulated investment company (as defined in section 851), or</text>
								</subparagraph><subparagraph id="H72A0E6E1834D4F75ACA3672538346B5B"><enum>(C)</enum><text>other financial
				instrument designated in regulations prescribed by the
				Secretary.</text>
								</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="HCAF010B9A52C401D8BDE37BA9C40E036"><enum>(b)</enum><header>Effective
			 date</header><text>The amendment made by this section shall apply to returns
			 the due date for which (determined without regard to extensions) is after
			 December 31, 2009, with respect to securities acquired after December 31,
			 2008.</text>
				</subsection></section></title></legis-body>
</bill>


