[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3636 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3636

 To amend title II of the Public Health Service Act to provide for an 
improved method to measure poverty so as to enable a better assessment 
of the effects of programs under the Public Health Service Act and the 
              Social Security Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 26 (legislative day, September 17), 2008

Mr. Dodd (for himself and Mr. Bingaman) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To amend title II of the Public Health Service Act to provide for an 
improved method to measure poverty so as to enable a better assessment 
of the effects of programs under the Public Health Service Act and the 
              Social Security Act, 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.

    This Act may be cited as the ``Measuring American Poverty Act of 
2008''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) On January 22, 2008, the House of Representatives, by 
        voice vote, passed House Concurrent Resolution 198 expressing 
        the sense of the Congress that the United States should set a 
        national goal of cutting poverty in half over the next 10 
        years.
            (2) The poverty rate is a critical indicator of how widely 
        shared prosperity is in the economy, and a key benchmark for 
        targeting resources towards the most disadvantaged.
            (3) The official poverty measure, while helpful, is based 
        on outdated assumptions and fails to accurately measure 
        economic deprivation or take into account the availability of 
        many economic resources.
            (4) The official poverty measure offers inadequate guidance 
        about the effectiveness of public anti-poverty efforts.
            (5) In 1995, the National Academy of Sciences' Panel on 
        Poverty and Family Assistance recommended adoption of an 
        improved poverty measure, which addresses many shortcomings of 
        the official poverty measure and which remains relevant and 
        offers a starting point for an improved measure.

SEC. 3. STATEMENT OF PURPOSE.

    The purpose of this Act is to provide for an improved and updated 
method for measuring the extent to which families in the United States 
have sufficient income to allow a minimal, socially acceptable, level 
of consumption that meets their basic physical needs, including food, 
shelter (including utilities), clothing, and other necessary items, in 
order to better assess the effects of certain policies and programs in 
reducing the prevalence and depth of poverty, to accurately gauge the 
level of economic deprivation, and to ensure appropriate targeting of 
public resources.

SEC. 4. MODERNIZATION OF THE MEASUREMENT OF POVERTY.

    Title II of the Public Health Service Act (42 U.S.C. 202 et seq.) 
is amended by adding at the end the following:

         ``PART D--MODERNIZATION OF THE MEASUREMENT OF POVERTY

``SEC. 271. MODERNIZATION OF THE MEASUREMENT OF POVERTY.

    ``(a) In General.--The Bureau of the Census, in collaboration with 
the Bureau of Labor Statistics, after consultation about methodology 
with other Federal statistical agencies and outside experts, shall, to 
the extent possible and based on the best available data, calculate 
modern poverty thresholds and modern poverty rates as provided for in 
subsection (c), for each calendar year (including any calendar year 
before 2009 for which the information needed to perform the 
calculations is available or can be estimated with a reasonable degree 
of confidence, as determined by the Bureau of the Census) in accordance 
with this section.
    ``(b) Modern Poverty Thresholds.--
            ``(1) Calculation for reference family.--
                    ``(A) In general.--The modern poverty threshold for 
                a reference family consisting of 2 adults and their 2 
                related children shall be an amount equal to the 
                average of 120 percent of the 33rd percentile of the 
                distribution of annual expenditures by such families on 
                food, clothing, and shelter (including utilities) 
                during each of the 3 most recent years for which data 
                is available from the Consumer Expenditure Survey, a 
                superior Federal government source of data, or some 
                combination of such sources.
                    ``(B) Special rule.--Notwithstanding any other 
                provision of this section, insofar as the amounts 
                described in subparagraphs (F) and (G) of subsection 
                (c)(3) are not easily included in the distribution of 
                expenditures referred to in subparagraph (A) of this 
                paragraph, the Bureau of the Census and the Bureau of 
                Labor Statistics shall develop methods for including, 
                and shall include, the actual or estimated amounts in 
                the distribution of expenditures
            ``(2) Adjustment for family size and composition, and for 
        geographic cost variation.--The Bureau of the Census shall 
        adjust the modern poverty threshold calculated under paragraph 
        (1)--
                    ``(A) for other family sizes and compositions, 
                using the best available equivalence scales that 
                consider economies of scale; and
                    ``(B) to the maximum extent possible, for 
                differences in the costs for the goods and services 
                included in the threshold among States, sub-State non-
                metropolitan areas, and metropolitan areas, based on 
                the best available data on the costs.
            ``(3) Accommodation of housing status.--To the maximum 
        extent possible, the calculation for the threshold for the 
        reference family described in paragraph (1) and the adjustments 
        to the modern poverty thresholds for varied family sizes and 
        compositions under paragraph (2)(A) shall be made separately 
        for each of the following categories of families:
                    ``(A) Families making rent payments for their 
                primary residence, or who own their primary residence 
                and have a mortgage secured by the residence.
                    ``(B) Families who own their primary residence and 
                do not have such a mortgage.
            ``(4) Annual publication of weighted average poverty 
        thresholds.--Not less often than annually, the Bureau of the 
        Census, in collaboration with the Bureau of Labor Statistics, 
        shall publish--
                    ``(A) the average poverty threshold for each family 
                size, determined by weighting each threshold by the 
                proportion of families of that size to which the 
                threshold applies, and
                    ``(B) the average poverty threshold for each family 
                size in each category described in paragraph (3), 
                determined by weighting each threshold by the 
                proportion of families of that size in that category 
                and to which the threshold applies.
    ``(c) Modern Poverty Rates.--
            ``(1) In general.--The Bureau of the Census shall use the 
        modern poverty thresholds calculated under subsection (b) to 
        calculate--
                    ``(A) the number and percentage of families in the 
                United States whose adjusted market income does not 
                exceed the applicable modern poverty threshold, and the 
                number and percentage of individuals in the United 
                States who are members of such families;
                    ``(B) the number and percentage of families in the 
                United States whose adjusted disposable income does not 
                exceed the applicable modern poverty threshold, and the 
                number and percentage of individuals in the United 
                States who are members of such families; and
                    ``(C) the numbers and percentages described in 
                subparagraphs (A) and (B) for various demographic, 
                geographic, and other subgroups of families in the 
                United States, and for individuals who are members of 
                such subgroups of families.
            ``(2) Adjusted market income.--For purposes of this 
        section, the adjusted market income of a family is--
                    ``(A) the total of the amounts received by any 
                member of the family during a calendar year from wages, 
                salaries, and self-employment income, interest income, 
                dividend income, realized capital gains, rents, 
                royalties, estate and trust income, a qualified 
                retirement plan (as defined in section 4974(c) of the 
                Internal Revenue Code of 1986), a plan described in 
                section 457(b) of such Code, or any other plan, 
                contract, annuity, or account payments or distributions 
                from which are in the nature of a retirement benefit, 
                survivor and disability pensions and annuities, paid-up 
                insurance policies, alimony payments, child support 
                payments, private workers' compensation, regular 
                contributions from persons not living with the family, 
                and other relevant income as determined by the Bureau 
                of the Census except for income described in 
                subparagraph (C), (D), (E), or (F) of paragraph (3) of 
                this subsection; minus
                    ``(B) the total of the amounts paid by any member 
                of the family during the calendar year for alimony or 
                the support or maintenance of a noncustodial child, or 
                to cover health care expenses or necessary work-related 
                expenses, including child care and transportation 
                expenses, and capping necessary work-related expenses 
                at the lesser of the earnings of the parent with lesser 
                earnings or another reasonable cap tied to the median 
                expenditures of the reference family or Federal program 
                and tax credit policies as determined by the Bureau of 
                the Census in collaboration with the Bureau of Labor 
                Statistics.
            ``(3) Adjusted disposable income.--For purposes of this 
        section, the Bureau of the Census shall define the adjusted 
        disposable income of a family as follows, excluding any amounts 
        that the Bureau of the Census, in collaboration with the Bureau 
        of Labor Statistics, believes are not included in the 
        distribution of expenditures referred to in subsection (b)(1) 
        of this section or whose inclusion in the adjusted disposable 
        income of a family would otherwise be inconsistent with the 
        modern poverty thresholds described in subsection (b):
                    ``(A) the adjusted market income of the family; 
                minus
                    ``(B) the total of the amounts paid by any member 
                of the family during the calendar year to cover Federal 
                income tax liability or Federal payroll tax liability, 
                or if such information is not available, the total of 
                any such liabilities that are payable by any member of 
                the family during the calendar year; plus
                    ``(C) the total of the amounts received by any 
                member of the family during the calendar year from 
                refundable Federal tax credits, or if such information 
                is not available, the total of any such credits that 
                are expected by any member of the family to be received 
                during the calendar year; plus
                    ``(D) the total of the amounts received by any 
                member of the family during the calendar year which may 
                be used to meet food, clothing, or shelter (including 
                utilities) needs, to the extent that expenditures of 
                the amounts are taken into account in determining 
                poverty thresholds under this section, and which are--
                            ``(i) referred to in section 
                        459(h)(1)(A)(ii) of the Social Security Act; or
                            ``(ii) paid under a State program funded 
                        under part A of title IV of the Social Security 
                        Act, the supplemental security income program 
                        under title XVI of such Act, or any other 
                        Federal program or activity eligibility for 
                        which is based, in whole or in part, on need; 
                        plus
                    ``(E) the total dollar value of any food assistance 
                benefit (as defined in section 3(d) of the Food and 
                Nutrition Act of 2008) received by any member of the 
                family during the calendar year under section 8 of the 
                Food and Nutrition Act of 2008; plus
                    ``(F) the total of the amounts received by any 
                member of the family during the calendar year as 
                described in section 2605(b)(2) of the Low-Income Home 
                Energy Assistance Act of 1981; plus
                    ``(G) the total of the amounts received by any 
                member of the family during the calendar year as 
                government-funded nonmedical in-kind, cash and near 
                cash benefits that help families meet food, clothing 
                and shelter (including utilities) needs, including 
                nutrition programs, housing subsidies, and the value of 
                public housing, not to exceed to the lesser of the 
                share of the threshold defined in subsection (b) 
                attributable to the component of the threshold towards 
                which the benefit may be used or the estimated monetary 
                value of the benefit to the recipient, to the extent 
                possible and to the extent that expenditures of the 
                amounts are taken into account in determining poverty 
                thresholds under this section.
            ``(4) Inclusion of state and local taxes and transfers.--
        Within 5 years after the date of the enactment of this section, 
        the Bureau of the Census, in collaboration with the Bureau of 
        Labor Statistics, and after consultation with other relevant 
        statistical agencies, shall modify the calculation under 
        paragraph (3) to take account of State and local taxes and 
        transfers.
    ``(d) Families.--For purposes of this section, the term `family' 
includes--
            ``(1) an individual who is living alone;
            ``(2) all members of a household who are related by blood, 
        marriage, adoption, or other legal arrangement; and
            ``(3) any unrelated individuals living together whom the 
        Bureau of the Census, after assessing existing research and 
        undertaking any necessary new research, determines should be 
        treated as a family for purposes of this section.
    ``(e) Report on Poverty Rates.--Not less frequently than annually, 
the Bureau of the Census shall produce, and make readily accessible to 
the public, a report which contains detailed tables and explanations of 
poverty rates--
            ``(1) as determined on the basis of adjusted market income;
            ``(2) as determined on the basis of adjusted disposable 
        income; and
            ``(3) as determined on the basis of the Traditional Poverty 
        Measure referred to in subsection (f).
    ``(f) References to Existing Poverty Measure as the `Traditional 
Poverty Measure'.--To the extent practicable, whenever an officer or 
employee of the Federal Government refers to the poverty measure 
outlined in Office of Management and Budget Statistical Policy 
Directive 14, the officer or employee, as the case may be, shall refer 
to that measure as the `Traditional Poverty Measure'. Any reference in 
a law, regulation, document, paper, or other record of the United 
States to the poverty measure outlined in Office of Management and 
Budget Statistical Policy Directive 14 is deemed to be a reference to 
the `Traditional Poverty Measure'.
    ``(g) Inclusion of Information Based on Modern Poverty Thresholds 
and Rates in Published Documents Containing Information Based on 
Historical Poverty Thresholds and Rates.--
            ``(1) In general.--To the extent possible, a relevant 
        Federal statistical agency that publishes a document which 
        contains information about a subject, which was produced using 
        the poverty measure outlined in Office of Management and Budget 
        Statistical Policy Directive 14, shall include in the document 
        information about the subject, which is produced using the 
        modern poverty thresholds and modern poverty rates calculated 
        under this section.
            ``(2) Public release of microdata file and online tools.--
        On releasing a document described in paragraph (1), the Bureau 
        of the Census shall release to the public--
                    ``(A) microdata files containing all of the 
                individual variables that are necessary to compute the 
                published modern poverty rates, as well as poverty 
                rates determined on the basis of the Traditional 
                Poverty Measure referred to in subsection (f), and to 
                calculate poverty rates using different definitions of 
                income and poverty thresholds;
                    ``(B) other public online tools that enable poverty 
                rates to be calculated using different definitions of 
                income and poverty thresholds; and
                    ``(C) the definitions of income set forth in, and 
                the poverty thresholds established under, this section.
    ``(h) Consultation on Improving Calculation of the Modern Poverty 
Thresholds or Modern Poverty Rates; Report to the Congress.--From time 
to time, and no less frequently than every 5 years, the Bureau of the 
Census, in collaboration with the Bureau of Labor Statistics, shall--
            ``(1) consult with other relevant Federal statistical 
        agencies and outside experts on whether the method of, and 
        sources of data for, calculating the modern poverty thresholds 
        or modern poverty rates provided for in this section could be 
        improved so as to better measure the extent to which families 
        in the United States are able to secure sufficient income to 
        allow a minimal, socially acceptable, level of consumption that 
        meets their basic physical needs, including food, clothing, 
        shelter (including utilities), and other necessary items; and
            ``(2) report to the Congress on any need for any such 
        improvement.
    ``(i) No Effect on Benefit Programs.--This section shall not be 
interpreted to modify or authorize modification of eligibility of any 
entity for, or the amount or kind of benefits or assistance to be 
provided to any entity under, any program or activity funded, in whole 
or in part, with Federal funds.
    ``(j) Relevant Federal Statistical Agency.--In this section, the 
term `relevant Federal statistical agency' means a Federal agency 
that--
            ``(1) is listed as a major statistical program of the 
        United States in the annual report most recently made under 
        section 3504(e)(2) of title 44, United States Code; or
            ``(2) the Bureau of the Census expects to be so listed in 
        the next such report.
    ``(k) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Bureau of 
the Census not more than $5,000,000 for each fiscal year.

``SEC. 272. STUDY OF DECENT LIVING STANDARD.

    ``(a) In General.--The Bureau of the Census, in collaboration with 
the Bureau of Labor Statistics, shall enter into a contract with the 
National Academy of Sciences which obligates the National Academy of 
Sciences to develop and publish a method of calculating a decent living 
standard threshold, including relevant variations for geography, family 
size, and other such factors, and a method of measuring the extent to 
which the income of families in the United States is sufficient to meet 
the threshold.
    ``(b) Technical Support.--The Bureau of the Census, the Bureau of 
Labor Statistics, and other relevant statistical agencies shall provide 
necessary technical support for the efforts to develop the threshold 
and method referred to in subsection (a).
    ``(c) Definition of Decent Living Standard Threshold.--In 
subsection (a), the term `decent living standard threshold' means the 
amount of annual income that would allow an individual to live beyond 
deprivation at a safe and decent, but modest, standard of living.
    ``(d) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Bureau of 
the Census not more than $500,000 for each of fiscal years 2009 and 
2010.

``SEC. 273. STUDY OF MEDICAL CARE RISK MEASURE.

    ``(a) In General.--The Bureau of the Census, in collaboration with 
the Bureau of Labor Statistics, the Agency for Healthcare Research and 
Quality, and the Centers for Medicare and Medicaid Services shall enter 
into a contract with the National Academy of Sciences with obligates 
the National Academy of Sciences to develop and publish a method of 
measuring the extent of medical care risk in the United States and 
calculating the number and percentage of individuals in the United 
States who, to varying degrees, lack adequate health insurance, placing 
them at risk of being unable to afford needed treatment.
    ``(b) Technical Support.--The Bureau of the Census, the Bureau of 
Labor Statistics, the Agency for Healthcare Research and Quality and 
the Centers for Medicare and Medicaid Services, and other relevant 
statistical agencies shall provide necessary technical support for the 
efforts to develop the method and measure referred to in subsection 
(a).
    ``(c) Definition of Medical Care Risk.--In subsection (a), the term 
`medical care risk' means the extent to which individuals are at risk 
of being unable to afford needed medical treatment, services, goods, 
and care.
    ``(d) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Bureau of 
the Census, not more than $500,000 for each of fiscal years 2009 and 
2010.''.
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