[Congressional Record Volume 149, Number 117 (Friday, August 1, 2003)]
[Senate]
[Pages S10909-S10910]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself, Mr. Breaux, Mr. Kerry, Mrs. Lincoln, 
        Mr. Rockefeller, and Ms. Snowe):
  S. 1556. A bill to amend the Internal Revenue Code of 1986 to 
restore, increase, and make permanent the exclusion from gross income 
for amounts received under qualified group legal services plans; to the 
Committee on Finance.
  Mr. SMITH. Mr. President, I am pleased today to introduce the Legal

[[Page S10910]]

Services Benefit Act of 2003. My friends and colleagues from the Senate 
Finance Committee, Senators Breaux, Kerry, Lincoln, Rockefeller, and 
Snowe, join me in introducing this important bill. This bill will amend 
the Internal Revenue Code to restore and make permanent the exclusion 
from gross income for amounts received under qualified group legal 
services plans.
  When Congress first enacted Internal Revenue Code Section 120 in 
1976, employers were provided with an incentive to provide their 
workforce with group legal services benefits at modest cost. These 
benefit programs enabled employees to contact an attorney and get 
advice and, if necessary, representation. Most plans covered the 
everyday legal events that we all expect to encounter in life, from 
house closings and adoptions to traffic tickets and drafting wills. The 
provision sunsetted in 1992, however, eliminating this valuable 
benefits' favorable tax status.
  Qualified employer-paid plans have proven to be highly efficient. 
These arrangements make substantial legal service benefits available to 
participants at a fraction of what medical and other benefit plans 
cost. For an average employer contribution of less than $150 annually, 
employees are eligible to utilize a wide range of legal services often 
worth hundreds and even thousands of dollars, which otherwise would be 
well beyond their means.
  In addition to the efficiency with which these plans can deliver 
services, their ability to make preventive legal services available 
results in additional savings in our economy. Group legal plans give 
investors access to legal services before they are induced to make 
unwise investments. Having a lawyer available to review the investment 
documents could mean the difference between a comfortable retirement 
and lost life savings. Group legal plan attorneys add a layer of 
security to the system.
  I strongly encourage my colleagues to join me in supporting this 
important proposal to provide efficient access to our legal system for 
working Americans. I look forward to working with Chairman Grassley to 
move this matter successfully through the Finance Committee.
  I ask unanimous consent that the text of this legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1556

       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 ``Legal Services Benefit Act 
     of 2003''.

     SEC. 2. EXCLUSION FOR AMOUNTS RECEIVED UNDER QUALIFIED GROUP 
                   LEGAL SERVICES PLANS RESTORED, INCREASED, AND 
                   MADE PERMANENT.

       (a) Increase of Exclusion.--Subsection (a) of section 120 
     of the Internal Revenue Code of 1986 (relating to amounts 
     received under qualified group legal services plans) is 
     amended by striking the last sentence.
       (b) Restoration and Permanence of Exclusion.--Section 120 
     of the Internal Revenue Code of 1986 (relating to amounts 
     received under qualified group legal services plans) is 
     amended by striking subsection (e) and by redesignating 
     subsection (f) as subsection (e).
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.
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