[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1117 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1117

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

                              May 26, 2011

  Mr. Rockefeller (for himself, Ms. Stabenow, and Mr. Brown of Ohio) 
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 2011''.
    (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 recipients; presumptive 
                            eligibility.
Sec. 5. Clarification of 3-month creditable coverage requirement.
Sec. 6. TAA pre-certification period and PBGC recipient 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. Permanent extension of COBRA benefits for certain TAA-eligible 
                            individuals and PBGC recipients.
Sec. 9. TAA recipients not enrolled in training programs eligible for 
                            credit.
Sec. 10. Offering of Federal group coverage.
Sec. 11. Additional requirements for individual health insurance costs.
Sec. 12. Alignment of COBRA coverage with TAA period for TAA-eligible 
                            individuals.
Sec. 13. Notice requirements.
Sec. 14. 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 percent (80 
        percent in the case of eligible coverage months beginning 
        before February 13, 2011)'' and inserting ``95 percent''.
            (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 
        percent (80 percent in the case of eligible coverage months 
        beginning before February 13, 2011)'' and inserting ``95 
        percent''.
    (b) Effective Date.--The amendments made by this section shall 
apply to eligible coverage months (as defined in section 35(b) of the 
Internal Revenue Code of 1986) beginning after February 13, 2011.

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 is 
amended by adding at the end the following new subsection:
    ``(f) 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) by striking ``and'' at the end of subparagraph 
                (B),
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(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 the Internal 
        Revenue Code of 1986 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; and
                    (B) 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 is amended by inserting ``(prior to the employment 
separation necessary to attain the status of an eligible individual)'' 
after ``9801(c))''.
    (b) Effective Date.--The amendment 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 AND PBGC RECIPIENT 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 
striking subparagraph (C) and by inserting the following new 
subparagraphs:
                    ``(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).
                    ``(D) PBGC recipients.--In the case of an 
                individual who has a loss of creditable coverage and 
                who has a nonforfeitable right to a benefit any portion 
                of which is to be paid by the Pension Benefit Guaranty 
                Corporation under title IV, the period beginning on the 
                date of such loss of coverage and ending on the date 
                such individual receives any such benefit paid by such 
                Corporation shall not be taken into account in 
                determining the continuous period under subparagraph 
                (A).''.
    (b) PHSA Amendment.--
            (1) In general.--Section 2701(c)(2) of the Public Health 
        Service Act (42 U.S.C. 300gg(c)(2)) is amended by striking 
        subparagraph (C) and by inserting the following new 
        subparagraphs:
                    ``(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).
                    ``(D) PBGC recipients.--In the case of an 
                individual who has a loss of creditable coverage and 
                who has a nonforfeitable right to a benefit any portion 
                of which is to be paid by the Pension Benefit Guaranty 
                Corporation under title IV of the Employee Retirement 
                Income Security Act of 1974, the period beginning on 
                the date of such loss of coverage and ending on the 
                date such individual receives any such benefit paid by 
                such Corporation shall not be taken into account in 
                determining the continuous period under subparagraph 
                (A).''.
            (2) Technical amendment.--Effective on January 1, 2014, 
        section 2704(c)(2) of the Public Health Service Act (42 U.S.C. 
        300gg-3(c)(2)) is amended by striking subparagraph (C) and by 
        inserting the following new subparagraphs:
                    ``(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).
                    ``(D) PBGC recipients.--In the case of an 
                individual who has a loss of creditable coverage and 
                who has a nonforfeitable right to a benefit any portion 
                of which is to be paid by the Pension Benefit Guaranty 
                Corporation under title IV of the Employee Retirement 
                Income Security Act of 1974, the period beginning on 
                the date of such loss of coverage and ending on the 
                date such individual receives any such benefit paid by 
                such Corporation shall not be taken into account in 
                determining the continuous period under subparagraph 
                (A).''.
    (c) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code 
of 1986 is amended by striking subparagraph (D) and by inserting the 
following new subparagraphs:
                    ``(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).
                    ``(E) PBGC recipients.--In the case of an 
                individual who has a loss of creditable coverage and 
                who has a nonforfeitable right to a benefit any portion 
                of which is to be paid by the Pension Benefit Guaranty 
                Corporation under title IV, the period beginning on the 
                date of such loss of coverage and ending on the date 
                such individual receives any such benefit paid by such 
                Corporation shall not be taken into account in 
                determining the continuous period under subparagraph 
                (A).''.
    (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) Technical Amendment Related to the American Recovery and 
Reinvestment Act of 2009.--Subparagraph (A) of section 3001(a)(14) of 
the American Recovery and Reinvestment Act of 2009 is amended by 
striking ``is amended by redesignating paragraph (9) as paragraph 
(10)'' and inserting ``, as amended by this Act, is amended by 
redesignating paragraphs (9) and (10) as paragraphs (10) and (11), 
respectively,''.
    (b) Amendment to Internal Revenue Code of 1986.--Paragraph (10) of 
section 35(g) of the Internal Revenue Code of 1986 is amended to read 
as follows:
            ``(10) 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 member of such 
                eligible individual.''.
    (c) Conforming Amendment.--Paragraph (8) of section 173(f) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2918(f)) is amended to read 
as follows:
            ``(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 paragraph (7)(B)(i), 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 member of such 
                eligible individual.''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to eligible 
        coverage months (as defined in section 35(b) of the Internal 
        Revenue Code of 1986) beginning after February 13, 2011.
            (2) Technical amendment.--The amendment made by subsection 
        (a) shall apply as if included in section 3001(a)(14)(A) of the 
        American Recovery and Reinvestment Act of 2009.

SEC. 8. PERMANENT EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE 
              INDIVIDUALS AND PBGC RECIPIENTS.

    (a) ERISA Amendments.--Clauses (v) and (vi) of section 602(2)(A) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1162(2)(A)) are each amended by striking the last sentence.
    (b) IRC Amendments.--Subclauses (V) and (VI) of section 
4980B(f)(2)(B)(i) of the Internal Revenue Code of 1986 are each amended 
by striking the last sentence.
    (c) PHSA Amendments.--Clause (iv) of section 2202(2)(A) of the 
Public Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended by 
striking the last sentence.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods of coverage which would (without regard to the 
amendments made by this section) end on or after the date of the 
enactment of this Act.

SEC. 9. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE FOR 
              CREDIT.

    Subparagraph (B) of section 35(c)(2) of the Internal Revenue Code 
of 1986 is amended by inserting ``and any eligible coverage month 
beginning after the date of the enactment of the TAA Health Coverage 
Improvement Act of 2011,'' after ``February 13, 2011,''.

SEC. 10. 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 Amendment.--Paragraph (1) of section 35(e) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(L) Coverage under a health benefits plan offered 
                under section 8(a)(1) of the TAA Health Coverage 
                Improvement Act of 2011.''.

SEC. 11. 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 (L) 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) is 
amended by inserting ``, but only'' after ``under individual health 
insurance'' in the matter preceding clause (i).

SEC. 12. 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. 13. NOTICE REQUIREMENTS.

    (a) In General.--Paragraph (2) of section 7527(d) of the Internal 
Revenue Code of 1986 is amended by striking ``In the case of any 
statement described in paragraph (1) which is issued before February 
13, 2011, such statement'' and inserting ``A statement described in 
paragraph (1)''.
    (b) Effective Date.--The amendment 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. 14. EXTENSION OF NATIONAL EMERGENCY GRANTS.

    (a) In General.--Section 173(f)(1) of the Workforce Investment Act 
of 1998 (29 U.S.C. 2918(f)) is amended--
            (1) in subparagraph (A), by striking ``may be used'' and 
        inserting ``shall be used'', and
            (2) in subparagraph (B)(ii), by striking subclause (VI) and 
        inserting the following:
                                    ``(VI) any other expenses 
                                determined appropriate by the 
                                Secretary, including start-up costs and 
                                ongoing 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 (G), (H), or 
                                (I) or clause (ii), (iii), or (iv) of 
                                subparagraph (F) of such section, as 
                                qualified health insurance under that 
                                section.''.
    (b) Funding.--Section 174(c)(1)(A) of the Workforce Investment Act 
of 1998 (29 U.S.C. 2919(c)(1)) is amended--
            (1) by striking ``and'' at the end of clause (i), and
            (2) by adding at the end the following new clause:
                            ``(iii) $300,000,000 for the period of 
                        fiscal years 2012 through 2014; 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:
            ``(9) 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 after 
        the date on which the State or entity's previous application 
        was disapproved, the Secretary shall submit a report to the 
        appropriate committees of 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>