[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1739 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1739

To amend section 35 of the Internal Revenue Code of 1986 to improve the 
          health coverage tax credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 28, 2007

 Mr. Rockefeller (for himself and Mr. Brown) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend section 35 of the Internal Revenue Code of 1986 to improve the 
          health coverage tax credit, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``TAA Health 
Coverage Improvement Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Improvement of the affordability of the credit.
Sec. 3. 100 percent credit and payment for monthly premiums paid prior 
                            to certification of eligibility for the 
                            credit.
Sec. 4. Eligibility for certain pension plan participants; presumptive 
                            eligibility.
Sec. 5. Clarification of 3-month creditable coverage requirement.
Sec. 6. TAA pre-certification period rule for purposes of determining 
                            whether there is a 63-day lapse in 
                            creditable coverage.
Sec. 7. Continued qualification of family members after certain events.
Sec. 8. Offering of Federal group coverage.
Sec. 9. Additional requirements for individual health insurance costs.
Sec. 10. Alignment of COBRA coverage with TAA period for TAA-eligible 
                            individuals.
Sec. 11. Notice requirements.
Sec. 12. Annual report on enhanced TAA benefits.
Sec. 13. Extension of national emergency grants.

SEC. 2. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

    (a) Improvement of Affordability.--
            (1) In general.--Section 35(a) of the Internal Revenue Code 
        of 1986 (relating to credit for health insurance costs of 
        eligible individuals) is amended by striking ``65'' and 
        inserting ``95''.
            (2) Conforming amendment.--Section 7527(b) of such Code 
        (relating to advance payment of credit for health insurance 
        costs of eligible individuals) is amended by striking ``65'' 
        and inserting ``95''.
    (b) Effective Date.--The amendments made by this section apply to 
taxable years beginning after December 31, 2007.

SEC. 3. 100 PERCENT CREDIT AND PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR 
              TO CERTIFICATION OF ELIGIBILITY FOR THE CREDIT.

    (a) In General.--Subsection (a) of section 35 of the Internal 
Revenue Code of 1986, as amended by section 2(a)(1), is amended--
            (1) by striking the subsection heading and all that follows 
        through ``In case'' and inserting ``Amount of Credit.--
            ``(1) In general.--In case''; and
            (2) by adding at the end the following new paragraph:
            ``(2) 100 percent credit for months prior to issuance of 
        eligibility certificate.--The amount allowed as a credit 
        against the tax imposed by subtitle A shall be equal to 100 
        percent in the case of the taxpayer's first eligible coverage 
        months occurring prior to the issuance of a qualified health 
        insurance costs credit eligibility certificate.''.
    (b) Payment for Premiums Due Prior to Certification of Eligibility 
for the Credit.--Section 7527 of the Internal Revenue Code of 1986 
(relating to advance payment of credit for health insurance costs of 
eligible individuals) is amended by adding at the end the following new 
subsection:
    ``(e) Payment for Premiums Due Prior to Issuance of Certificate.--
The program established under subsection (a) shall provide--
            ``(1) that the Secretary shall make payments on behalf of a 
        certified individual of an amount equal to 100 percent of the 
        premiums for coverage of the taxpayer and qualifying family 
        members under qualified health insurance for eligible coverage 
        months (as defined in section 35(b)) occurring prior to the 
        issuance of a qualified health insurance costs credit 
        eligibility certificate; and
            ``(2) that any payments made under paragraph (1) shall not 
        be included in the gross income of the taxpayer on whose behalf 
        such payments were made.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act 
in taxable years ending after such date.

SEC. 4. ELIGIBILITY FOR CERTAIN PENSION PLAN RECIPIENTS; PRESUMPTIVE 
              ELIGIBILITY.

    (a) Eligibility for Certain Pension Plan Recipients.--Subsection 
(c) of section 35 of the Internal Revenue Code of 1986 is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period and 
                inserting ``, and''; and
                    (C) by adding at the end the following:
                    ``(D) an eligible multiemployer pension 
                participant.''; and
            (2) by adding at the end the following new paragraph:
            ``(5) Eligible multiemployer pension recipient.--The term 
        `eligible multiemployer pension recipient' means, with respect 
        to any month, any individual--
                    ``(A) who has attained age 55 as of the first day 
                of such month,
                    ``(B) who is receiving a benefit from a 
                multiemployer plan (as defined in section 3(37)(A) of 
                the Employee Retirement Income Security Act of 1974), 
                and
                    ``(C) whose former employer has withdrawn from such 
                multiemployer plan pursuant to section 4203(a) of such 
                Act.''.
    (b) Presumptive Eligibility for Petitioners for Trade Adjustment 
Assistance.--Subsection (c) of section 35 of the Internal Revenue Code 
of 1986, as amended by subsection (a), is amended by adding at the end 
the following new paragraph:
            ``(6) Presumptive status as a taa recipient.--The term 
        `eligible individual' shall include any individual who is 
        covered by a petition filed with the Secretary of Labor under 
        section 221 of the Trade Act of 1974. This paragraph shall 
        apply to any individual only with respect to months which--
                    ``(A) end after the date that such petition is so 
                filed, and
                    ``(B) begin before the earlier of--
                            ``(i) the 90th day after the date of filing 
                        of such petition, or
                            ``(ii) the date on which the Secretary of 
                        Labor makes a final determination with respect 
                        to such petition.''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 7527(d) of such Code is 
        amended by striking ``or an eligible alternative TAA recipient 
        (as defined in section 35(c)(3))'' and inserting ``, an 
        eligible alternative TAA recipient (as defined in section 
        35(c)(3)), an eligible multiemployer pension recipient (as 
        defined in section 35(c)(5), or an individual who is an 
        eligible individual by reason of section 35(c)(6)''.
            (2) Section 173(f)(4) of the Workforce Investment Act of 
        1998 (29 U.S.C. 2918(f)(4)) is amended--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period and 
                inserting a comma; and
                    (C) by inserting after subparagraph (C), the 
                following new subparagraphs:
                    ``(D) an eligible multiemployer pension recipient 
                (as defined in section 35(c)(5) of the Internal Revenue 
                Code of 1986), and
                    ``(E) an individual who is an eligible individual 
                by reason of section 35(c)(6) of the Internal Revenue 
                Code of 1986.''.
    (d) Technical Amendment Clarifying Eligibility of Certain Displaced 
Workers Receiving a Benefit Under a Defined Benefit Pension Plan.--The 
first sentence of section 35(c)(2) of the Internal Revenue Code of 1986 
is amended by inserting before the period the following: ``, and shall 
include any such individual who would be eligible to receive such an 
allowance but for the fact that the individual is receiving a benefit 
under a defined benefit plan (as defined in section 3(35) of the 
Employee Retirement Income Security Act of 1974).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act 
in taxable years ending after such date.

SEC. 5. CLARIFICATION OF 3-MONTH CREDITABLE COVERAGE REQUIREMENT.

    (a) In General.--Clause (i) of section 35(e)(2)(B) of the Internal 
Revenue Code of 1986 (defining qualifying individual) is amended by 
inserting ``(prior to the employment separation necessary to attain the 
status of an eligible individual)'' after ``9801(c)''.
    (b) Conforming Amendment.--Section 173(f)(2)(B)(ii)(I) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2918(f)(2)(B)(ii)(I)) is 
amended by inserting ``(prior to the employment separation necessary to 
attain the status of an eligible individual)'' after ``1986''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act 
in taxable years ending after such date.

SEC. 6. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING 
              WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE.

    (a) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding 
at the end the following new subparagraph:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date that is 5 days after the postmark date 
                        of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 of the 
                        Internal Revenue Code of 1986 shall not be 
                        taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 605(b)(4)(C).''.
    (b) PHSA Amendment.--Section 2701(c)(2) of the Public Health 
Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the 
following new subparagraph:
                    ``(C) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date that is 5 days after the postmark date 
                        of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 of the 
                        Internal Revenue Code of 1986 shall not be 
                        taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 2205(b)(4)(C).''.
    (c) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code 
of 1986 (relating to not counting periods before significant breaks in 
creditable coverage) is amended by adding at the end the following new 
subparagraph:
                    ``(D) TAA-eligible individuals.--
                            ``(i) TAA pre-certification period rule.--
                        In the case of a TAA-eligible individual, the 
                        period beginning on the date the individual has 
                        a TAA-related loss of coverage and ending on 
                        the date which is 5 days after the postmark 
                        date of the notice by the Secretary (or by any 
                        person or entity designated by the Secretary) 
                        that the individual is eligible for a qualified 
                        health insurance costs credit eligibility 
                        certificate for purposes of section 7527 shall 
                        not be taken into account in determining the 
                        continuous period under subparagraph (A).
                            ``(ii) Definitions.--The terms `TAA-
                        eligible individual', and `TAA-related loss of 
                        coverage' have the meanings given such terms in 
                        section 4980B(f)(5)(C)(iv).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act 
in taxable years ending after such date.

SEC. 7. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN EVENTS.

    (a) In General.--Subsection (g) of section 35 of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph (9) as 
paragraph (10) and inserting after paragraph (8) the following new 
paragraph:
            ``(9) Continued qualification of family members after 
        certain events.--
                    ``(A) Eligible individual becomes medicare 
                eligible.--In the case of a month which would be an 
                eligible coverage month with respect to an eligible 
                individual but for subsection (f)(2)(A), such month 
                shall be treated as an eligible coverage month with 
                respect to any qualifying family member of such 
                eligible individual (but not with respect to such 
                eligible individual).
                    ``(B) Divorce.--In the case of a month which would 
                be an eligible coverage month with respect to a former 
                spouse of a taxpayer but for the finalization of a 
                divorce between the spouse and the taxpayer that occurs 
                during the period in which the taxpayer is an eligible 
                individual, such month shall be treated as an eligible 
                coverage month with respect to such former spouse.
                    ``(C) Death.--In the case of a month which would be 
                an eligible coverage month with respect to an eligible 
                individual but for the death of such individual, such 
                month shall be treated as an eligible coverage month 
                with respect to any qualifying family of such eligible 
                individual.''.
    (b) Conforming Amendment.--Section 173(f) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the 
end the following:
            ``(8) Continued qualification of family members after 
        certain events.--
                    ``(A) Eligible individual becomes medicare 
                eligible.--In the case of a month which would be an 
                eligible coverage month with respect to an eligible 
                individual but for subsection (f)(2)(A), such month 
                shall be treated as an eligible coverage month with 
                respect to any qualifying family member of such 
                eligible individual (but not with respect to such 
                eligible individual).
                    ``(B) Divorce.--In the case of a month which would 
                be an eligible coverage month with respect to a former 
                spouse of a taxpayer but for the finalization of a 
                divorce between the spouse and the taxpayer that occurs 
                during the period in which the taxpayer is an eligible 
                individual, such month shall be treated as an eligible 
                coverage month with respect to such former spouse.
                    ``(C) Death.--In the case of a month which would be 
                an eligible coverage month with respect to an eligible 
                individual but for the death of such individual, such 
                month shall be treated as an eligible coverage month 
                with respect to any qualifying family of such eligible 
                individual.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act 
in taxable years ending after such date.

SEC. 8. OFFERING OF FEDERAL GROUP COVERAGE.

    (a) Provision of Group Coverage.--
            (1) In general.--The Director of the Office of Personnel 
        Management jointly with the Secretary of the Treasury shall 
        establish a program under which eligible individuals (as 
        defined in section 35(c) of the Internal Revenue Code of 1986) 
        are offered enrollment under health benefit plans that are made 
        available under FEHBP.
            (2) Terms and conditions.--The terms and conditions of 
        health benefits plans offered under paragraph (1) shall be the 
        same as the terms and coverage offered under FEHBP, except that 
        the percentage of the premium charged to eligible individuals 
        (as so defined) for such health benefit plans shall be equal to 
        5 percent.
            (3) Study.--The Director of the Office of Personnel 
        Management jointly with the Secretary of the Treasury shall 
        conduct a study of the impact of the offering of health benefit 
        plans under this subsection on the terms and conditions, 
        including premiums, for health benefit plans offered under 
        FEHBP and shall submit to Congress, not later than 2 years 
        after the date of the enactment of this Act, a report on such 
        study. Such report may contain such recommendations regarding 
        the establishment of separate risk pools for individuals 
        covered under FEHBP and eligible individuals covered under 
        health benefit plans offered under paragraph (1) as may be 
        appropriate to protect the interests of individuals covered 
        under FEHBP and alleviate any adverse impact on FEHBP that may 
        result from the offering of such health benefit plans.
            (4) FEHBP defined.--In this section, the term ``FEHBP'' 
        means the Federal Employees Health Benefits Program offered 
        under chapter 89 of title 5, United States Code.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 35(e) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        subparagraph:
                    ``(K) Coverage under a health benefits plan offered 
                under section 8(a)(1) of the TAA Health Coverage 
                Improvement Act of 2007.''.
            (2) Section 173(f)(2)(A) of the Workforce Investment Act of 
        1998 (29 U.S.C. 2918(f)(2)(A)) is amended by adding at the end 
        the following new clause:
                            ``(xi) Coverage under a health benefits 
                        plan offered under section 8(a)(1) of the TAA 
                        Health Coverage Improvement Act of 2007.''.

SEC. 9. ADDITIONAL REQUIREMENTS FOR INDIVIDUAL HEALTH INSURANCE COSTS.

    (a) In General.--Subparagraph (A) of section 35(e)(2) of such Code 
is amended by striking ``subparagraphs (B) through (H) of paragraph 
(1)'' and inserting ``paragraph (1) (other than subparagraphs (A), (I), 
and (K) thereof)''.
    (b) Rating System Requirement.--Subparagraph (J) of section 
35(e)(1) of such Code is amended by adding at the end the following: 
``For purposes of this subparagraph and clauses (ii), (iii), and (iv) 
of subparagraph (F), such term does not include any insurance unless 
the premiums for such insurance are restricted based on a community 
rating system (determined other than on the basis of age).''.
    (c) Clarification of Congressional Intent To Limit Use of 
Individual Health Insurance Coverage Option.--Section 35(e)(1)(J) 
(relating to qualified health insurance) is amended in the matter 
preceding clause (i), by inserting ``, but only'' after ``under 
individual health insurance''.
    (d) Conforming Amendments.--Section 173(f)(2) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)(2)) is amended--
            (1) in subparagraph (A)(x), by adding at the end the 
        following: ``Such term does not include any insurance unless 
        the premiums for such insurance are restricted based on a 
        community rating system (determined other than on the basis of 
        age).''; and
            (2) in subparagraph (B)--
                    (A) in the matter preceding subclause (I), by 
                inserting ``, but only'' after ``under individual 
                health insurance''; and
                    (B) in clause (i), by striking ``clauses (ii) 
                through (viii) of subparagraph (A)'' and inserting 
                ``subparagraph (A) (other than clauses (i), (x), and 
                (xi) thereof)''.

SEC. 10. ALIGNMENT OF COBRA COVERAGE WITH TAA PERIOD FOR TAA-ELIGIBLE 
              INDIVIDUALS.

    (a) ERISA.--Section 605(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1165(b)) is amended--
            (1) in the subsection heading, by inserting ``and 
        Coverage'' after ``Election''; and
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by inserting ``and 
                period'' after ``Commencement'';
                    (B) by striking ``and shall'' and inserting ``, 
                shall''; and
                    (C) by inserting ``, and in no event shall the 
                maximum period required under section 602(2)(A) be less 
                than the period during which the individual is a TAA-
                eligible individual'' before the period at the end.
    (b) Internal Revenue Code of 1986.--Section 4980B(f)(5)(C) of the 
Internal Revenue Code of 1986 is amended--
            (1) in the subparagraph heading, by inserting ``and 
        coverage'' after ``election''; and
            (2) in clause (ii)--
                    (A) in the clause heading, by inserting ``and 
                period'' after ``Commencement'';
                    (B) by striking ``and shall'' and inserting ``, 
                shall''; and
                    (C) by inserting ``, and in no event shall the 
                maximum period required under paragraph (2)(B)(i) be 
                less than the period during which the individual is a 
                TAA-eligible individual'' before the period at the end.
    (c) Public Health Service Act.--Section 2205(b) of the Public 
Health Service Act (42 U.S.C. 300bb-5(b)) is amended--
            (1) in the subsection heading, by inserting ``and 
        Coverage'' after ``Election''; and
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by inserting ``and 
                period'' after ``Commencement'';
                    (B) by striking ``and shall'' and inserting ``, 
                shall''; and
                    (C) by inserting ``, and in no event shall the 
                maximum period required under section 2202(2)(A) be 
                less than the period during which the individual is a 
                TAA-eligible individual'' before the period at the end.

SEC. 11. NOTICE REQUIREMENTS.

    Section 7527 of the Internal Revenue Code of 1986 (relating to 
advance payment of credit for health insurance costs of eligible 
individuals), as amended by section 3(b), is amended by adding at the 
end the following new subsection:
    ``(f) Inclusion of Certain Information.--The notice by the 
Secretary (or by any person or entity designated by the Secretary) that 
an individual is eligible for a qualified health insurance costs credit 
eligibility certificate shall include--
            ``(1) information explaining how the program established 
        under subsection (a) works with the credit established under 
        section 35,
            ``(2) the name, address, and telephone number of the State 
        office or offices responsible for determining that the 
        individual is eligible for such certificate and for providing 
        the individual with assistance with enrollment in qualified 
        health insurance (as defined in section 35(e)),
            ``(3) a list of the coverage options that are treated as 
        qualified health insurance (as so defined) by the State in 
        which the individual resides, and
            ``(4) in the case of a TAA-eligible individual (as defined 
        in section 4980B(f)(5)(C)(iv)(II)), a statement informing the 
        individual that the individual has 63 days from the date that 
        is 5 days after the postmark date of such notice to enroll in 
        such insurance without a lapse in creditable coverage (as 
        defined in section 9801(c)).''.

SEC. 12. ANNUAL REPORT ON ENHANCED TAA BENEFITS.

    Not later than October 1 of each year (beginning in 2008) the 
Secretary of the Treasury, after consultation with the Secretary of 
Labor, shall report to the Committee on Finance and the Committee on 
Health, Education, Labor, and Pensions of the Senate and the Committee 
on Ways and Means and the Committee on Education and the Workforce of 
the House of Representatives the following information with respect to 
the most recent taxable year ending before such date:
            (1) The total number of participants utilizing the health 
        insurance tax credit under section 35 of the Internal Revenue 
        Code of 1986, including a measurement of such participants 
        identified--
                    (A) by State, and
                    (B) by coverage under COBRA continuation provisions 
                (as defined in section 9832(d)(1) of such Code) and by 
                non-COBRA coverage (further identified by group and 
                individual market).
            (2) The range of monthly health insurance premiums offered 
        and the average and median monthly health insurance premiums 
        offered to TAA-eligible individuals (as defined in section 
        4980B(f)(5)(C)(iv)(II) of such Code) under COBRA continuation 
        provisions (as defined in section 9832(d)(1) of such Code), 
        State-based continuation coverage provided under a State law 
        that requires such coverage, and each category of coverage 
        described in section 35(e)(1) of such Code, identified by State 
        and by the actuarial value of such coverage and the specific 
        benefits provided and cost-sharing imposed under such coverage.
            (3) The number of States applying for and receiving 
        national emergency grants under section 173(f) of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2918(f)) and the time 
        necessary for application approval of such grants.
            (4) The cost of administering the health credit program 
        under section 35 of such Code, by function, including the cost 
        of subcontractors.

SEC. 13. EXTENSION OF NATIONAL EMERGENCY GRANTS.

    (a) In General.--Section 173(f) of the Workforce Investment Act of 
1998 (29 U.S.C. 2918(f)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Use of funds.--
                    ``(A) Health insurance coverage for eligible 
                individuals in order to obtain qualified health 
                insurance that has guaranteed issue and other consumer 
                protections.--Funds made available to a State or entity 
                under paragraph (4)(A) of subsection (a) shall be used 
                to provide an eligible individual described in 
                paragraph (4)(C) and such individual's qualifying 
                family members with health insurance coverage for the 
                3-month period that immediately precedes the first 
                eligible coverage month (as defined in section 35(b) of 
                the Internal Revenue Code of 1986) in which such 
                eligible individual and such individual's qualifying 
                family members are covered by qualified health 
                insurance that meets the requirements described in 
                clauses (i) through (iv) of section 35(e)(2)(A) of the 
                Internal Revenue Code of 1986 (or such longer minimum 
                period as is necessary in order for such eligible 
                individual and such individual's qualifying family 
                members to be covered by qualified health insurance 
                that meets such requirements).
                    ``(B) Additional uses.--Funds made available to a 
                State or entity under paragraph (4)(A) of subsection 
                (a) may be used by the State or entity for the 
                following:
                            ``(i) Health insurance coverage.--To assist 
                        an eligible individual and such individual's 
                        qualifying family members with enrolling in 
                        health insurance coverage and qualified health 
                        insurance or paying premiums for such coverage 
                        or insurance.
                            ``(ii) Administrative expenses and start-up 
                        expenses to establish group health plan 
                        coverage options for qualified health 
                        insurance.--To pay the administrative expenses 
                        related to the enrollment of eligible 
                        individuals and such individuals' qualifying 
                        family members in health insurance coverage and 
                        qualified health insurance, including--
                                    ``(I) eligibility verification 
                                activities;
                                    ``(II) the notification of eligible 
                                individuals of available health 
                                insurance and qualified health 
                                insurance options;
                                    ``(III) processing qualified health 
                                insurance costs credit eligibility 
                                certificates provided for under section 
                                7527 of the Internal Revenue Code of 
                                1986;
                                    ``(IV) providing assistance to 
                                eligible individuals in enrolling in 
                                health insurance coverage and qualified 
                                health insurance;
                                    ``(V) the development or 
                                installation of necessary data 
                                management systems; and
                                    ``(VI) any other expenses 
                                determined appropriate by the 
                                Secretary, including start-up costs and 
                                on going administrative expenses, in 
                                order for the State to treat the 
                                coverage described in subparagraph (C), 
                                (D), (E), or (F)(i) of section 35(e)(1) 
                                of the Internal Revenue Code of 1986, 
                                or, only if the coverage is under a 
                                group health plan, the coverage 
                                described in subparagraph (F)(ii), 
                                (F)(iii), (F)(iv), (G), or (H) of such 
                                section, as qualified health insurance 
                                under that section.
                            ``(iii) Outreach.--To pay for outreach to 
                        eligible individuals to inform such individuals 
                        of available health insurance and qualified 
                        health insurance options, including outreach 
                        consisting of notice to eligible individuals of 
                        such options made available after the date of 
                        enactment of this clause and direct assistance 
                        to help potentially eligible individuals and 
                        such individual's qualifying family members 
                        qualify and remain eligible for the credit 
                        established under section 35 of the Internal 
                        Revenue Code of 1986 and advance payment of 
                        such credit under section 7527 of such Code.
                            ``(iv) Bridge funding.--To assist 
                        potentially eligible individuals purchase 
                        qualified health insurance coverage prior to 
                        issuance of a qualified health insurance costs 
                        credit eligibility certificate under section 
                        7527 of the Internal Revenue Code of 1986 and 
                        commencement of advance payment, and receipt of 
                        expedited payment, under subsections (a) and 
                        (e), respectively, of that section.
                    ``(C) Rule of construction.--The inclusion of a 
                permitted use under this paragraph shall not be 
                construed as prohibiting a similar use of funds 
                permitted under subsection (g).''; and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) Qualified health insurance.--For purposes of this 
        subsection and subsection (g), the term `qualified health 
        insurance' has the meaning given that term in section 35(e) of 
        the Internal Revenue Code of 1986.''.
    (b) Funding.--Section 174(c)(1) of the Workforce Investment Act of 
1998 (29 U.S.C. 2919(c)(1)) is amended--
            (1) in the paragraph heading, by striking ``Authorization 
        and appropriation for fiscal year 2002'' and inserting 
        ``Appropriations''; and
            (2) by striking subparagraph (A) and inserting the 
        following new subparagraph:
                    ``(A) to carry out subsection (a)(4)(A) of section 
                173--
                            ``(i) $10,000,000 for fiscal year 2002; and
                            ``(ii) $300,000,000 for the period of 
                        fiscal years 2008 through 2010; and''.
    (c) Report Regarding Failure To Comply With Requirements for 
Expedited Approval Procedures.--Section 173(f) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the 
end the following new paragraph:
            ``(8) Report for failure to comply with requirements for 
        expedited approval procedures.--If the Secretary fails to make 
        the notification required under clause (i) of paragraph (3)(A) 
        within the 15-day period required under that clause, or fails 
        to provide the technical assistance required under clause (ii) 
        of such paragraph within a timely manner so that a State or 
        entity may submit an approved application within 2 months of 
        the date on which the State or entity's previous application 
        was disapproved, the Secretary shall submit a report to 
        Congress explaining such failure.''.
    (d) Technical Amendment.--Effective as if included in the enactment 
of the Trade Act of 2002 (Public Law 107-210; 116 Stat. 933), 
subsection (f) of section 203 of that Act is repealed.
                                 <all>