[Congressional Record Volume 149, Number 50 (Thursday, March 27, 2003)]
[Senate]
[Page S4520]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COLEMAN (for himself and Mr. Chambliss):
  S. 729. A bill to amend the Internal Revenue Code of 1986 to 
establish a pilot program to encourage the use of medical savings 
accounts by public employees of the State of Minnesota and political 
jurisdictions thereof; to the Committee on Finance.
  Mr. COLEMAN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 729

       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 ``Minnesota MSA Empowerment 
     Act of 2003''.

     SEC. 2. DEDUCTION FOR MINNESOTA PUBLIC EMPLOYEE MSA PILOT 
                   PROGRAM.

       (a) In General.--Part VII of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to additional 
     itemized deductions) is amended by redesignating section 223 
     as section 224 and by inserting after section 222 the 
     following new section:

     ``SEC. 223. MINNESOTA PUBLIC EMPLOYEE MSAS.

       ``(a) In General.--In the case of an eligible individual, 
     there shall be allowed as a deduction an amount equal to the 
     amount contributed during the taxable year by such individual 
     to the Minnesota public employee MSA of such individual.
       ``(b) Eligible Individual.--For purposes of this section, 
     the term `eligible individual' means an individual who--
       ``(1) is in receipt of retirement benefits for the taxable 
     year from a retirement plan associated with the State of 
     Minnesota or a political subdivision thereof, or
       ``(2) is an employee of the State of Minnesota or a 
     political subdivision thereof.
       ``(c) Minnesota Public Employee MSA.--
       ``(1) In general.--The term `Minnesota public employee MSA' 
     means an Archer MSA which is created or organized exclusively 
     for the purpose of playing the qualified medical expenses of 
     the eligible individual and--
       ``(A) which is designated as a Minnesota public employee 
     MSA, and
       ``(B) with respect to which no contribution may be made 
     other than a contribution made by the eligible individual or 
     the employer of the eligible individual.
       ``(2) Archer msa; qualified medical expenses.--For purposes 
     of this section, the terms `Archer MSA' and `qualified 
     medical expenses' shall have the respective meanings given to 
     such terms by section 220(d).
       ``(d) Special Rules.--In applying section 220 to a 
     Minnesota public employee MSA--
       ``(1) subsection (d)(1)(A)(ii) shall not apply, and
       ``(2) subsection (f)(3) shall be treated as including a 
     reference to this section.
       ``(e) Reports.--In the case of a Minnesota public employee 
     MSA, the report under section 220(h)--
       ``(1) shall include the fair market value of the assets in 
     such Minnesota public employee MSA as of the close of each 
     calendar year, and
       ``(2) shall be furnished to the account holder--
       ``(A) not later than January 31 of the calendar year 
     following the calendar year to which such reports relate, and
       ``(B) in such manner as the Secretary prescribes.
       ``(f) Coordination With Limitation on Number of Taxpayers 
     Having Archer MSAs.--Subsection (i) of section 220 shall not 
     apply to an individual with respect to a Minnesota public 
     employee MSA, and Minnesota public employee MSAs shall not be 
     taken into account in determining whether the numerical 
     limitations under section 220(j) are exceeded.''.
       ``(b) Deduction Allowed Whether or Not Taxpayer Itemizes.--
     Subsection (a) of section 62 is amended by inserting after 
     paragraph (18) the following new item:
       ``(19) Minnesota public employee msas.--The deduction 
     allowed by section 223.''.
       ``(c) Tax on Excess Contributions.--Section 4973(d)(1) of 
     such Code (relating to excess contributions to Archer MSAs) 
     is amended by inserting ``or 223'' after ``220''.
       ``(d) Clerical Amendment.--The table of sections for part 
     VII of subchapter B of chapter 1 of such Code is amended by 
     striking the last item and inserting the following new items:

``Sec. 223. Minnesota public employee MSAs.
``Sec. 224. Cross reference.''.

       ``(e) Effective Date.--The amendments by this section shall 
     apply to taxable years beginning after December 31, 2003.
                                 ______